Synaptics (SYNA) Q4 2024 earnings summary

Executive summary

• Q4 FY24 revenue reached $247.4 million, up 9% year-over-year and 4% sequentially, driven by Core IoT and Enterprise/Automotive growth, while Mobile declined seasonally.

• Fiscal 2024 revenue totaled $959.4 million, down 29% year-over-year due to channel inventory and end demand challenges.

• Core IoT products grew 63% year-over-year in Q4, led by wireless, with supply chain issues easing and demand improving.

• Cleared most inventory problems, positioning for steadier growth in fiscal 2025.

• Cash and investments totaled $877 million at year-end, with Q4 operating cash flow of $65 million.

Financial highlights

• Q4 revenue was $247.4 million, up 9% year-over-year and 4% sequentially; FY24 revenue was $959.4 million, down from $1,355.1 million in FY23.

• Q4 non-GAAP gross margin was 53.4%; GAAP gross margin was 45.8%.

• Q4 non-GAAP net income was $25.6 million; non-GAAP EPS was $0.64, up 31% year-over-year.

• FY24 non-GAAP net income was $89.4 million ($2.25 per diluted share); GAAP net income was $125.6 million ($3.16 per share).

• Cash and short-term investments at year-end were $876.9 million; net debt at $972.9 million.

Outlook and guidance

• Q1 FY25 revenue expected at $255 million midpoint (±$15 million).

• Q1 product mix: Core IoT 23%, Enterprise/Automotive 58%, Mobile 19%.

• Q1 non-GAAP gross margin expected at 53.5% midpoint (±1%); GAAP gross margin at 45.0% (±1.5%).

• Q1 non-GAAP EPS expected at $0.75 midpoint (±$0.20); GAAP EPS at ($0.55) midpoint (±$0.20).

• Non-GAAP tax rate expected to drop to 13%-15% due to IP onshoring.