QUALCOMM Incorporated

Ladies and gentlemen, thank you for standing by. Welcome to the Qualcomm first quarter fiscal year 2024 earnings conference call. At this time, all participants are in listen-only mode. Later, we'll conduct a question and answer session. If you'd like to ask a question during this time, press star, then number one on your telephone keypad. To withdraw your question, press star, then the number two. If you're using a speakerphone, please pick up your handset before pressing the numbers. Please submit your questions to one question and one follow-up. As a reminder, this conference is being recorded January 31, 2024. The playback number for today's call is 877-660-6853. International callers, please dial 201-612-7415. The playback reservation number is 137-43-224. I would now like to turn the call over to Mauricio Lopez-Odoñan, Vice President of Investor Relations. Mauricio Lopez-Odoñan, please go ahead.

Thank you, and good afternoon everyone. Today's call will include prepared remarks by Cristiano Mon and Akash Palakawala. In addition, Alex Rogers will join the question and answer session. You can access our earnings release and a slide presentation that will be available on our Investor Relations website. In addition, this call has been webcast on Qualcomm.com, and a replay will be available on our website later today. During the call today, we will use non-GAAP financial measures as defined in Regulation G, and you can find the related reconciliations to GAAP on our website. We will also make forward-looking statements, including projections and estimates of future events, business or industry trends, or business or financial results. Actual events or results could differ materially from those projected in our forward-looking statements. Please refer to our SEC filings, including our most recent 10-K, which contain important factors that could cause actual results to differ materially from the forward-looking statements. And now the comments from Qualcomm's President and Chief Executive Officer, Cristiano Mon.

Thank you, Mauricio, and good afternoon, everyone. Thanks for joining us today. In fiscal Q1, We delivered non-GAAP revenues of $9.9 billion in non-GAAP earnings per share of $2.75 above the high end of our guidance. Revenues from our chipset business of $8.4 billion reflect healthy Android demand and continue strong momentum in automotive. Licensing business revenues were $1.5 billion. We're pleased with these results, and I will now share some key highlights from the business. In hindsight, the Snapdragon 8 Gen 3 mobile platform is setting a new standard for on-device Gen AI experiences for premium smartphones and powers all true flagship Android devices launched and launching this fiscal year. Notably, the Snapdragon 8 Gen 3 mobile platform for Galaxy, is featured in the recently announced Samsung Galaxy S24 Ultra globally, in addition to the Galaxy S24 and S24 Plus in multiple regions. The Galaxy S24 series includes on-device AI features such as Live Translate, Interpreter, Chat Assist, Nightography, and more. This marks the beginning of how GenAI will evolve the overall smartphone experience and highlights the significant opportunity for Snapdragon platforms. We're also announcing that we extended a multi-year agreement with Samsung relating to Snapdragon platforms for flagship Galaxy smartphone launches starting in 2024. The extended agreement demonstrates the value of Snapdragon 8 Our technology leadership and our successful long-term strategic partnership with Samsung. In the quarter, we also announced the Snapdragon 7 Gen 3 mobile platform, which brings leading Gen AI capabilities to high-tier Android smartphones and is a category leader in both experiences and performance. In our QTL business, we're pleased to share that we recently extended several key license agreements. First, Apple exercised its unilateral option to extend its Global Patent License Agreement for an additional two years, taking the existing agreement through to March 2027. Second, we have renewed long-term agreements with two significant Chinese smartphone OEMs. In addition, we continue to negotiate new agreements or renewals with other key licensees and OEMs, including some whose current agreements are set to expire in early fiscal 2025. Automotive continues to be an important pillar of our growth and diversification strategy. Notably, 75 new models launched commercially in 2023 with our technologies, highlighting Qualcomm's growing scale in automotive and execution of our design wins. Earlier this month at CES, we announced our collaboration with Bosch to have our Snapdragon Ride Flex SoC power their new central vehicle computer. As a reminder, Snapdragon Ride Flex enables the fusion of infotainment and ADAS functionalities on a single SoC, enabling automakers to realize a unified central compute in software-defined vehicle architecture that scales across tiers. Additionally, we demonstrated digital cockpits, connected services, and advanced driver assistance enabled by GenAI models running locally on the Snapdragon platform. These new capabilities can be enabled on a number of existing designs via a software upgrade. This represents significant new opportunities for Qualcomm and our partners. In PCs, we're driving towards the launch of Snapdragon X Elite in mid-2024 and are pleased that our design win traction continues to increase since the platform was announced last October. We expect Snapdragon X Elite to set the industry benchmark for on-device Gen AI and co-pilot experiences in addition to leading performance and battery life for next-generation Windows PCs. We recently expanded our mixed reality solutions with the announcement of the Snapdragon XR2 Plus Gen 2. Our new platform supports 4.3K per eye resolution at 90 frames per second and 12 or more concurrent cameras to deliver crisp, immersive mixed reality, and virtual reality experiences. We are proud to partner with Samsung and Google to provide leading XR experiences to Galaxy users by utilizing Snapdragon XR2 Plus Gen 2. In edge networking, we announced the Snapdragon X35 5G Modern RF System, the world's first commercial Release 17 5G REDCap solution. the Snapdragon X35 brings a new class of purpose-built 5G for Internet of Things devices. Devices powered by Snapdragon X35 are expected to launch by the first half of 2024. We continue to believe that industrial edge devices with connectivity, high-performance computing, and on-device AI will become one of our largest addressable opportunities fueled by the secular trends of digital transformation. As such, we're celebrating our investments in solutions, ecosystem, and broad channel enablement to position ourselves for growth while we navigate the industry-wide inventory drawdown. One key area of focus is to enable our customers to unlock the potential of GenAI at the enterprise using our chipset solutions. As an example, Zebra Technologies and Toshiba recently demonstrated on-device GenAI capabilities for enterprise workflows and inventory management at retail self-checkout, respectively. Additionally, Honeywell showcased a Qualcomm-powered Edge AI Box for warehouse applications. As we complete the first quarter of fiscal 24 ahead of our expectations, I'm very optimistic about Qualcomm's trajectory and the opportunities ahead. The fundamentals of our growth drivers remain unchanged. Our diversification strategy is working, and we're making significant progress across mobile, automotive, computing, XR, edge networking, industrial IoT, and more. At the upcoming Mobile World Congress in Barcelona, where we'll provide an update on our seller modem and connectivity leadership, as well as on our overall scale of Snapdragon Gen AI. I would now like to turn the call over to Akash.