Synaptics (SYNA) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 revenue stabilized at $959.4 million, down from $1,355.1 million in FY23, as inventory and end demand challenges persisted but began to ease.

• Q4 FY24 revenue reached $247.4 million, up 9% year-over-year and 4% sequentially, led by 63% year-over-year growth in Core IoT and strength in Enterprise/Automotive.

• Non-GAAP gross margin improved to 53.4% in Q4, with non-GAAP EPS at $0.64; GAAP EPS was $5.22, reflecting a one-time deferred tax benefit.

• Inventory issues largely resolved, positioning for steadier growth in fiscal 2025.

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

Financial highlights

• Fiscal 2024 net revenue was $959.4 million, down 29% year-over-year, mainly due to Core IoT and Enterprise/Automotive declines.

• Q4 revenue was $247.4 million, up 9% year-over-year and 4% sequentially.

• Non-GAAP gross margin for fiscal 2024 was 53.0%; Q4 non-GAAP gross margin was 53.4%.

• Fiscal 2024 non-GAAP net income was $89.4 million ($2.25 per diluted share); Q4 non-GAAP net income was $25.6 million ($0.64 per share).

• Q4 and FY24 results include a one-time deferred tax benefit from onshoring certain intellectual property.

Outlook and guidance

• Q1 fiscal 2025 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%).

• Q1 non-GAAP net income per diluted share anticipated at $0.75 midpoint (±$0.20).

• Management remains cautious due to slow recovery in end markets and limited near-term visibility.