QUALCOMM Incorporated

Ladies and gentlemen, thank you for standing by. Welcome to the Qualcomm second quarter fiscal 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 the 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 limit your questions to one question and one follow-up. As a reminder, this conference is being recorded May 1st, 2024. The playback number for today's call is 877-660-6853. International callers, please dial 201-612-7415. The playback reservation number is 137-45-532. Now, let's turn the call over to Mauricio Lopez-Odoin, Vice President of Investor Relations. Mauricio Lopez-Odoin, 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 accompanied this call 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 Q2, we delivered non-GAAP revenues of $9.4 billion. Non-GAAP earnings per share of $2.44 was above the high end of our guidance. Revenues from our chipset business of $8 billion reflect strong premium tier demand for Android smartphones and continued momentum in automotive. Licensing business revenues were $1.3 billion. During the quarter, We also made significant progress on our leading technology and product roadmaps, as well as executing on our growth and diversification opportunities. Let me share some key highlights from the business. As we drive intelligent computing everywhere, we're enabling the ecosystem to develop and commercialize on-device GenAI applications across smartphones, next-generation PCs, XR devices, vehicles, industrial edge, robotics, networking, and more. To that end, we recently launched the Qualcomm AI Hub, a gateway for developers to enable at-scale commercialization of on-device AI applications. It features a library of approximately 100 pre-optimized AI models for devices powered by Snapdragon and Qualcomm platforms, delivering four times faster inferencing versus non-optimized models. As AI expands rapidly from the cloud to devices, we are extremely well positioned to capitalize on this growth opportunity, giving our leadership position at the edge across technologies, including on-device AI. In automotive, the Snapdragon Digital Chassis is the industry's leading technology solution And we're pleased to announce that our design wing pipeline has increased to approximately $45 billion. We're growing faster than the addressable market and remain on track to achieve more than $4 billion of automotive revenues in fiscal 26. In premium and high-tier smartphones, our Snapdragon mobile platforms continue to set the bar for performance and on-device Gen AI capabilities. Recently launched flagship Android devices powered by Snapdragon 8 Gen 3 are seeing strong demand globally, especially in China. We are extending the most sought-after 8 series capabilities, including on-device AI, to a broader range of flagship and high-tier smartphones with the new Snapdragon 8S Gen 3 and Snapdragon 7 Plus Gen 3 mobile platforms, launching in the second half of 2024. In cellular modems, we have again established a new industry benchmark with the Snapdragon X80, the world's most advanced 5G modem RF system. The X80 supports 5G advanced, the next era of 5G, in addition to direct-to-mobile 3GPP compliant satellite communications and leading Release 18 features. Additionally, our networking solutions continue to gain traction as the Wi-Fi 7 transition expands to the enterprise. We are excited about the upcoming launches of next-generation Windows AI PCs powered by Snapdragon. The Snapdragon X Elite is the leader in performance, on-device AI, and power efficiency for the Windows ecosystem and is optimally positioned to lead the transition to true AI PCs. I'm also pleased to share that we recently expanded our compute portfolio with the Snapdragon X Plus platform, which is designed to address a broader range of device tiers. In XR, we're seeing good momentum in augmented and virtual reality. In particular, the Ray-Ban Meta Glasses powered by our Snapdragon AR1 Gen 1 platform continue to gain traction with consumers. Additionally, The MetaHorizon OS running on Snapdragon is now open and available to third-party hardware makers. This is a significant milestone as it will expand the device ecosystem. Finally, at the Embedded World Conference in Germany, we announced two new solutions for the industrial IoT ecosystem. The Qualcomm QCC730 micropower Wi-Fi SoC and the Qualcomm RB3 Gen2 platform. The QCC730 is specifically designed for IoT connectivity in battery power industrial, commercial, and consumer applications, featuring 88% lower power consumption than previous generations. And the RB3 Gen2 platform is a complete hardware and software solution designed for a wide range of products including various types of robots, drones, industrial handheld devices, and more. The Orbitree is supported by the recently announced AI Hub and also features support for Qualcomm Linux, a comprehensive package of operating system, software, and developer tools for our IoT platforms. In summary, we're very pleased with the continued progress on our growth and diversification strategy. Beyond handsets, we have established leadership positions across automotive, XR, and networking, and we are well-positioned to do the same in PCs, industrial, and edge AI. We're optimistic about the opportunities ahead for the company and will continue to execute on our plan to deliver long-term growth and value for shareholders. I would now like to turn the call over to Akash.