Navitas Semiconductor Corporation

Good afternoon. Thank you for standing by and welcome to Navita Semiconductor's fourth quarter 2024 financial results conference call. Please be advised, today's conference is being recorded and a replay will be available on Navita Semiconductor's Investor Relations website. I would now like to hand the conference over to Stephen Oliver, Vice President of Investor Relations.

Good afternoon, everyone. I'm Stephen Oliver, Vice President of Investor Relations. Thank you for joining Navitas Semiconductor's fourth quarter and full year 2024 results conference call. I'm joined today by Jean Sheridan, our Chairman, President, CEO, and Co-Founder, and Todd Glickman, CFO. A replay of this webcast will be available on our website approximately one hour following this conference call and available for approximately 30 days. Additional information related to our business is also posted on the investor relations section of our website. Our earnings release includes non-GAAP financial measures. Reconciliations of these non-GAAP financial measures with the most directly comparable GAAP measures are included in our fourth quarter earnings release and also posted on our website in the investor relations section. Non-GAAP expenses and operating margin exclude stock-based compensation amortization of intangible assets, and other non-recurring items. In this conference call, we will make forward-looking statements about future events or about the future financial performance of Navitas, including acquisitions. You can identify these statements by words like we expect or we believe or similar terms. We wish to caution you that such forward-looking statements are subject to risks and uncertainties, that could cause actual events or results to differ materially from expectations expressed in our forward-looking statements. Important factors that can affect Nevitas business, including factors that could cause actual results to differ from our forward-looking statements, are described in our earnings release. Please also refer to the risk factor sections in our most recent 10-Tay and 10-Qs. Our estimates or other forward-looking statements may change, and Navitas assumes no obligation to update forward-looking statements to reflect actual results, change assumptions, or other events that may occur, except as required by law. And now, over to Gene Sheridan, CEO.

Thank you, Steve, and thanks to everyone joining us today. We completed 2024 with an all-time high of $83 million in revenue, despite a semiconductor slowdown throughout the year in which most of our larger power semiconductor peers saw declining revenues. While our silicon carbide business was impacted by the slowdown in solar, industrial, and EV, our GAN business grew over 50% in 2024 to an all-time high, with revenues coming from mobile consumer appliance and the initial ramp-up of data centers. We also completed 2024 with an extraordinary $450 million of design mints, which reflects lifetime revenues of new customer programs in which Navitas products are expected to ramp to revenues over the next few years. This design mint total represents a win rate of over 50% and gives us increased confidence in and visibility to expected growth as we look into the second half of 2025 and 26. I'm also pleased with our total customer pipeline growth, which has nearly doubled from 1.25 billion at the end of 2023 to 2.4 billion at the end of 24, reflecting strong expected expansion in our major markets. Let me share some specifics in each. Our data center sector has the highest growth rates in revenue and design wins, with 40 customer project wins throughout the year. These wins were at top ODMs in Asia that target major tier one data center players such as Google, Amazon, Facebook, Alibaba, Dell, HP, and others. Our system reference designs that span from 2.7 kilowatts to 8.5 kilowatts were key enablers for this new business as we showcase to customers the extraordinary energy efficiency and power density that is possible, particularly when combining our Genesys technology and the PFC circuit and our GAN safe technology in the LLC circuits for these AC to DC power supply units. Also, we view the emergence of lower-cost AI platforms such as DeepSeq as a positive development that we expect to drive a lower cost of AI implementations, which can accelerate AI adoption both in the cloud as well as the edge, potentially translating to greater overall demand for power and for Navitas technology. Our data center customer pipeline has more than doubled to over 165 million as compared to 70 million the year prior. As announced last quarter, we have started sampling our 80 to 120-volt family of GaN devices, targeting 48-volt DC-to-DC converters in data centers, as well as 48-volt EV battery systems and 48-volt robots in the longer term. We expect growing customer demand activity throughout 2025 and first appreciable revenues next year. In the EV space, we are happy to announce over 40 design wins in 2024 across Europe, U.S., China, and Korea, heavily focused on onboard chargers as well as roadside chargers. We're also excited to announce what we believe to be the industry's first GAN design win into any electric vehicle. China's number three EV player, Chang'an, has selected Navitas GAN Safe Technology to power their next generation EV onboard chargers, and they have achieved extraordinary powered densities of 6 kilowatts per liter and energy efficiencies of 96%. Chang'an estimates that these GAN safe powered onboard chargers could extend lifetime driving range by 10,000 kilometers and could reduce charging costs by 15 to 20%. We expect this project and other GAN EV projects to start production ramp in the first half of 2026. Our ED pipeline has expanded rapidly to over 900 million compared to 400 million a year ago and now represents nearly 40% of our $2.4 billion pipeline. In the mobile sector, we have enabled very broad expansion in the adoption of GAN chargers with over 180 design limits. This includes the first significant wins with Transient, now a top five global smartphone player and the leader in markets such as Middle East, Africa, and Central and South America. We also had our first wins in India with Jio, a leader in consumer networking who selected Navitas Scan ICs to power their next generation Wi-Fi equipment. We expect both of these new customers will reflect multiple million-dollar projects ramping in late 25, demonstrating greater mainstream adoption of GaN chargers expanding into these lower-cost regions. We now estimate that GaN chargers will reach over 10% adoption rate of all mobile chargers to power smartphones, tablets, and laptops in 2025 as the average power of these chargers approaches 45 watts. This power increase is an important trend to not only support faster charging for all consumers, but also our GAN value increases as that power level increases, delivering the maximum power at the highest efficiencies and with the smallest size and weight for these wall adapters. Malvitas continues to supply 10 of the top 10 mobile players designing with Malvitas GAN IC technology. In the solar space, we are on track for a major launch this summer with the leader in microinverters to begin an important and significant transition from silicon to GaN, enabling a new wave of energy efficiency, power density, and size, weight, and cost reductions for the solar industry. We see microinverters becoming the leading residential solar solution, and many other players in this space are expected to pursue a similar transition from silicon to GaN. Across solar, energy storage, industrial, and appliance sectors, we enjoyed over 170 customer design news in 2024, which we expect will fuel important growth in 2026 and beyond. I'm excited to share our plans for a major technology announcement coming up on March 12th. This will be our first-ever global online launch event, and while the details won't be disclosed until that event, we believe this announcement will usher in a new era for power electronics, and accelerate gallium nitride and silicon carbide in major multi-billion dollar markets. We hope you will all join us for this exciting event. Finally, looking towards 2025, we expect a Q1 revenue decline reflecting normal mobile seasonality coupled with continued end market weakness and some remaining inventory correction in the solar industrial EV markets. We expect a modest recovery in Q2 and anticipate returning to healthy growth in the second half of the year, fueled by our $450 million of design wins last year and the expected start of a semiconductor recovery. Now, let me turn it over to Todd Bookman, our CFO, to cover the financials in greater detail.