Silicon Laboratories, Inc. · NASDAQ:SLAB
Silicon Laboratories — Q3 2024 Earnings Presentation
22 slides from Silicon Laboratories's earnings presentation, Nov 4, 2024
Slide 1: Silicon Labs Investor Presentation
Silicon Labs Investor Presentation NOVEMBER 4, 2024
Slide 2: Private Securities Litigation Reform Act of 1995
Private Securities Litigation Reform Act of 1995 This presentation contains forward-looking statements based on Silicon Labs’ current expectations. The words “believe”, “estimate”, “expect”, “intend”, “anticipate”, “plan”, “project”, “will”, and similar phrases as they relate to Silicon Labs are int
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures In addition to the GAAP results provided throughout this presentation, Silicon Labs has provided non-GAAP financial measurements on a basis excluding non-cash and other charges and benefits. Details of these excluded items are presented in the tables below, which reconcil
Slide 4: Pure-Play Leader of Intelligent Wireless Connectivity
FOUNDED IN 1996 Revenue $M Pure-Play Leader of $166 $166 Intelligent Wireless L I ST E D SL AB $145 Connectivity $87 $106 Q4'2023 Q1'2024 Q2'2024 Q3'2024 Q4'2024 ~ 2 1 , 0 0 0 C U ST O M E R S Midpoint of Guidance ~ 1 , 5 0 0 P A TE N T A S S E TS
Slide 5: IoT Accelerating Market Opportunity
Edge IoT Market Growth* ($B) $17.4 IoT Accelerating $13.2 Market Opportunity … … … $7.0 $6.4 2016 2019 2023 2025 2020 Analyst Day 2022 Analyst Day Source: Average of WSTS and Gartner research combined *As outlined at Analyst Day on March 1, 2022 with management estimates.
Slide 6: Our Vision and Values
OUR VISION OUR VALUES To empower developers to create wirelessly connected devices that We hire, foster and empower transform industries, grow great talent economies, and improve lives. We create customer value and commercial success through innovation and simplicity We meet our commitments and hold
Slide 7: Revenue Q3 2024
Revenue Q3 2024 Revenue $70M Home & Life Q3 2024 $166 M Q2 2024 $145 M 14% Q-Q Growth ▪ Revenue of $166 million increased 14% q/q ▪ Home & Life increased 22% q/q $96M Industrial & ▪ Industrial & Commercial increased Commercial 10% q/q 7 ©Silicon Labs Inc. All rights reserved.
Slide 8: Gross Margin Q3 2024
Gross Margin Q3 2024 ▪ GAAP gross margin improved to 54.3% in Q3, up from 52.7% in Q2 ▪ Non-GAAP gross margin improved to 54.5% in Q3, up from 53.0% in Q2 GAAP Q3 2024 54.3% Q2 2024 52.7% Non-GAAP Q3 2024 54.5% Q2 2024 53.0% 8 ©Silicon Labs Inc. All rights reserved.
Slide 9: Earnings Per Share Q3 2024
Earnings Per Share Q3 2024 ▪ GAAP loss per share improved by 66% to $(0.88) in Q3 from $(2.56) in Q2 ▪ Non-GAAP loss per share improved by 77% to $(0.13) in Q3 from $(0.56) in Q2 GAAP ($2.56) ($0.88) Q2 2024 Q3 2024 Non-GAAP ($0.56) ($0.13) Q2 2024 Q3 2024 9 ©Silicon Labs Inc. All rights reserved.
Slide 10: Q3 2024 Balance Sheet Highlights
Q3 2024 Balance Sheet Highlights Days of inventory on ($ in Millions) Q2 2024 Q3 2024 Q/Q hand improved to 165 days in Q3 from 217 days in Q2 Cash, Cash Equivalents & STI* 339 370 31 Accounts Receivable 41 49 8 Net Inventory 166 139 -27 Total Debt 0 0 0 *Cash, Cash Equivalents, and Short-Term Invest
Slide 11: Q4 2024 Outlook
Q4 2024 Outlook Q4 2024 Revenue $161-$171 million Gross Margin1 54%-55% (Non-GAAP) Operating Expenses1 $97-$99 million (Non-GAAP) Earnings Per Share1 $(0.01)-($0.21) (Non-GAAP) 1 These items are non-GAAP and exclude stock compensation expense, amortization of intangible assets, and certain other adj
Slide 12: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures (In thousands, except per share data) Three Months Ended September 28, 2024 Non-GAAP Income Statement GAAP Percent of Stock Compensation Intangible Asset Non-GAAP Percent Items GAAP Measure Revenue Expens
Slide 13: Unaudited Forward-Looking Statements Regarding Business Outlook
Unaudited Forward-Looking Statements Regarding Business Outlook Unaudited Forward-Looking Statements Regarding Business Outlook (In millions, except per share data) Three Months Ended December 28, 2024 Non-GAAP Non-GAAP Business Outlook GAAP Measure Adjustments** Measure Gross margin 54% to 55% —% 5
Slide 14: Positioned to Win, Lead and Scale in Home & Life
Making IoT as ubiquitous as the electricity at home or the smartphone in your pocket Positioned to Win, Actively shaping the future of wireless standards and ecosystems Lead and Scale in Home & Life Outperforming market with secure, optimized, wireless solutions that work with every ecosystem
Slide 15: Home & Life
Home & Life Home & Life ($M) Q3 2024 $70 Q2 2024 $57 Q1 2024 $41 22% Q-Q Growth in Q4 2023 $27 Q3’24 15 ©Silicon Labs Inc. All rights reserved.
Slide 16: Established Industrial & Commercial IoT Leader
Established Industrial & Megatrends accelerate growth Commercial IoT Leader Large and growing market Broad, diverse, durable customer application base Our IoT solutions are well-positioned to capture significant share of growth
Slide 17: Industrial & Commercial
Industrial & Commercial Industrial & Commercial ($M) Q3 2024 $96 Q2 2024 $88 Q1 2024 $65 10% Q-Q Growth in Q4 2023 $60 Q3’24 17 ©Silicon Labs Inc. All rights reserved.
Slide 18: Deep Customer Relationships & Commitment to Innovation
Deep Customer Relationships & Commitment to Innovation 2024 Greater Austin Business Sustainability Embedded World 2024 2024 IoT Evolution Product of Award Winner Best in Show the Year Award Received a Prime ISS ESG Corporate Rating and Technology & Innovation ranked in the top 1% of ~73K companies E
Slide 19: Revenue Diversity Across Customers and Regions
Revenue Diversity Across Customers and Regions 2023 Customers 2023 Regions Long Tail EMEA Largest customer is Americas <5% ~130 $1M customers APAC 19 ©Silicon Labs Inc. All rights reserved.
Slide 20: Leadership in Wireless Alliances
IoT Market Segment Task Group Leadership in Wireless MPSG Vice Chair Alliances Steering Committee Marketing TT Leads Mesh WG Vice Chair Bluetooth Architectural Review Board Zigbee PRO Core Chair Zigbee Direct Vice Chair Executive Committee, Board of Directors TCOC (Certification Oversight) Chair Sec
Slide 21: Purpose-built Platform for the IoT
Purpose-built Platform for the IoT
Slide 22: Thank you
€S-» SILICON LABS Thank you eae ss