SiTime (SITM) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $43.9 million, up 58% year-over-year and 33% sequentially, surpassing guidance due to strong demand in communications, enterprise, and datacenter segments.

• Inventory normalization has occurred, and strong bookings are expected to drive sequential growth in Q3 and Q4, with robust performance anticipated across all major regions.

• The CED segment is the fastest-growing, projected to grow over 50% for the year, with actual performance trending closer to 70%.

• Investments in product diversification and customer relationships position the company to benefit from rising AI-driven demand.

• The Aura acquisition expanded the product portfolio, with integration proceeding smoothly and new design wins, especially in network synchronization products.

Financial highlights

• Q2 2024 revenue was $43.9 million, up 58% year-over-year and 33% sequentially.

• GAAP gross profit was $21.5 million (49.1% margin); non-GAAP gross profit was $25.3 million (57.7% margin).

• GAAP net loss was $26.8 million ($1.16 per share); non-GAAP net income was $2.8 million ($0.12 per share).

• Operating expenses for Q2 2024 were $53.8 million GAAP, $28.1 million non-GAAP.

• CED market sales were $15.2 million, up 208% year-over-year and 55% sequentially.

Outlook and guidance

• Q3 revenue is expected to increase 25%-27% sequentially to about $55 million at the midpoint.

• Gross margins are expected to trend toward 58%, with operating expenses between $30.5 million and $31 million.

• Non-GAAP EPS is projected to be in the range of $0.23-$0.27 per share.

• Management reaffirms full-year growth target of 30%, with no expected lumpiness in demand for the remainder of the year.

• Existing liquidity is expected to meet cash needs for at least the next 12 months.