SiTime Corporation

Good afternoon and welcome to SIDETIME's third quarter 2024 financial results conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 1 on your telephone. You will then hear an automated message advising that your hand is raised. To withdraw your question, please press star 1 1 again. As a reminder, this conference call is being recorded today, Wednesday, November 6, 2024. I would now like to turn the call over to Brett Perry of Shelton Group Investor Relations. Brett, please go ahead.

Thank you, Amber. Good afternoon and welcome to Sidetime's third quarter 2024 financial results conference call. Joining us on today's call from Sidetime are Rajesh Vajesh, Chief Executive Officer, and Beth Howe, Chief Financial Officer. Before we begin, I'd like to point out that during the course of this call, the company may make forward-looking statements regarding expected future results, including financial positions, strategy and plans, future operations, the timing market, and other areas of discussion. It's not possible for the company's management to predict all risks, nor can the company assess the impact of all factors on its business or the extent to which any factor or combination of factors may cause actual results to differ materially from those contained in any forward-looking statements. In light of these risks, uncertainties, and assumptions, the forward-looking events discussed during this call may not occur and actual results could differ materially and adversely from those anticipated or implied. Neither the company nor any person assumes responsibility for the accuracy and completeness of forward-looking statements. The company undertakes no obligation to publicly update forward-looking statements for any reason after the date of this conference call to conform statements to actual results or to changes in the company's expectations. For more detailed information on risks associated with the business, we refer you to the risk factors described in the 10-K filed on February 26, 2024, as well as the company's subsequent filings with the SEC. During the call, we refer to certain non-GAAP measures, which are considered to be an important measure of the company's performance. These non-GAAP measures, financial measures, are provided in addition to and not as a substitute for nor superior to measures of financial performance prepared in accordance with U.S. GAAP. This GAAP to non-GAAP reconciliation includes stock-based compensation expense, amortization of acquired intangibles, and acquisition-related expenses, which include transaction and certain other cash costs associated with business acquisition, as well as changes in the estimated fair value of contingent consideration and earn-out liabilities. Please refer to the company's press release issued earlier today for a detailed reconciliation between GAAP and non-GAAP financial results. With that, it's now my pleasure to turn the call over to Sitem's CEO, Rajesh. Please go ahead.

Thank you, Brett. Good afternoon. I'd like to welcome new as well as existing investors to Sitem's Q3 2024 earnings call. Sitem is the leader in a dynamic new semiconductor category that we call precision timing, which is the heartbeat of modern electronics. Whether it is in AI data centers, networking infrastructure, automated vehicles, personal mobility, or IoT, SciTime's precision timing delivers better performance and reliability. This precision timing uses semiconductor technology to reimagine time and transform the $10 billion timing market. Our third quarter results demonstrate broad strength across financial metrics, customer segments, and regions. Revenue for the quarter grew by 62% to $57.7 million, and net income increased to 17% of revenue. Each of our customer segments and regions continued at least double-digit growth with CED or Communications, Enterprise, and Data Center, Greater China, and EMEA, all growing at triple digits. Bookings for the fourth quarter are strong, and we expect Q4 to grow sequentially as previously forecasted. Looking back, November 2024 marks our fifth year as a public company. At the time of our IPO, SciTime made a commitment to building high-value timing products for high-growth applications and markets, and we have significantly delivered. We have built high-growth, high-margin businesses with a diversity of revenue, customers, and applications. Since markets grow at different rates and on different timelines, we believe that this diversity benefits SciTime and makes us a unique semiconductor company. Our comms enterprise data center, or CED business, demonstrates the value of the products. In both Q2 and Q3 2024, CED has been a major driver of a growth driven by cloud service provider investments in AI infrastructure. CED revenue grew over 200% year over year in Q3, and for FY24, it will more than double. Looking forward into 2025, we believe that the AI market will continue to grow as newer generations of AI servers and networking equipment are rolled out. We expect CED to continue to lead Sitem's growth next year. In AI data center infrastructure, Sitem's products are solving difficult timing problems in applications such as top of the rack switches and optical modules. Additionally, CSPs or cloud service providers are investing in improving bandwidth and GPU utilization in the data center, which we believe results in more use of precision timing solutions with higher dollar content per application. SciTimes Precision Timing plays in high speed connectivity applications such as active electrical cables. We provide high performance that is virtually immune to noise in a very small form factor, which is quite valuable in these cases. Another application is the direct connectivity between GPUs through a very fast dedicated switch, which improves GPU utilization rates with faster parallel processing of the AI workloads. Our clock generators acquired from Aura play a key role here as well. delivering multiple high-performance clocks from a single integrated device. In sum, we are in a leadership position in AI with precision timing and expect to grow at dollar content as this market grows. Another macro trend is in building a more precise global navigation satellite system, or GNSS, which is resilient to jamming and spoofing. Such a system has use cases in defense and aerospace, and extends to industrial, automotive, and mobile IoT consumer. In automotive, ADAS level two, level three, and four, as well as robotaxis, need such an enhanced GNSS to operate optimally. Such a GNSS will depend upon precision timing, and we are engaged with key players in multiple markets. In autonomous and ADAS vehicles, we are now also offering fail-safe technology where a single device integrates resonators, oscillators, clocking, and advanced safety mechanisms for timing. This integration accelerates functional safety development and simplifies system architecture. We have multiple design wins with key electric vehicle companies and expect to begin shipments in volume quantities in 2025. In summary, our strategy is working as intended and delivering results. I'm confident of our success now and in the future. I now want to turn the call over to Beth, our CFO, to discuss our financial results in more detail.