Synaptics (SYNA) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 revenue stabilized with incremental growth, despite muted end demand and prior inventory issues now largely resolved.

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

• Core IoT products demonstrated significant, though inconsistent, growth, up 63% year-over-year in Q4, especially in wireless.

• New product launches, customer engagements, and leadership changes position the company for earnings and cash flow growth in 2025 and beyond.

Financial highlights

• Fiscal 2024 net revenue was $959 million, down 29% year-over-year, mainly due to declines in Core IoT and Enterprise/Automotive segments.

• Fiscal 2024 non-GAAP gross margin 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, up 31% year-over-year; Q4 non-GAAP EPS was $0.64.

• Cash from operations in fiscal 2024 was $135.9 million; Q4 cash flow from operations was $65 million.

• Q4 cash, equivalents, and short-term investments: $877 million.

Outlook and guidance

• Q1 fiscal 2025 revenue expected at $255 million midpoint (±$15 million), with Core IoT, Enterprise/Automotive, and Mobile at 23%, 58%, and 19% of mix, respectively.

• Q1 non-GAAP gross margin expected at 53.5% midpoint (±1%); non-GAAP operating expense at $96 million midpoint (±$2 million); non-GAAP EPS expected at $0.75 midpoint (±$0.20).

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

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