MACOM (MTSI) Q4 2024 earnings summary

Executive summary

• Q4 FY24 revenue reached a record $200.7 million, up 33.5% year-over-year and 5.4% sequentially, with adjusted EPS of $0.73 per diluted share and free cash flow over $57 million.

• FY24 revenue totaled $729.6 million, up 12.5% year-over-year, with adjusted EPS of $2.56 and year-end cash and short-term investments of $582 million.

• Book-to-bill ratio for Q4 was 1.1, with a record backlog entering FY25, driven by strong data center and defense demand.

• Strategic focus remains on high-power, high-frequency, and high data rate applications across core markets.

• Notable FY24 achievements include large program awards, 30%+ data center growth, $29 million in government funding for semiconductor R&D, and successful acquisitions.

Financial highlights

• Q4 revenue up 5.4% sequentially, with growth across all end markets; U.S. customers accounted for 45% of Q4 revenue.

• Adjusted gross profit for Q4 was $116.6 million (58.1% margin), up 60 bps from Q3; Q4 gross margin was 54.7%, up from 53.2% sequentially.

• Adjusted operating income for Q4 was $50.7 million (25.2% margin), up 11% sequentially; FY24 adjusted operating income was $175 million.

• Q4 adjusted net income was $54.2 million (27.0% margin), with adjusted EPS of $0.73; days sales outstanding improved to 48 days.

• Q4 cash flow from operations was $62.3 million; year-end cash, cash equivalents, and short-term investments totaled $581.9 million.

Outlook and guidance

• Q1 FY25 revenue expected between $212–$218 million, with adjusted gross margin of 57–59% and EPS of $0.75–$0.81.

• Sequential revenue growth anticipated in all end markets, led by ~15% growth in data center.

• FY25 goals include improving operating margins, increasing EPS, and generating higher cash flow from operations.

• Targeting a $1 billion annualized revenue run rate by FY26.