Silicon Laboratories, Inc.

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 your hand is raised. To withdraw your question, please press star 1-1 again. Please be advised that today's conference is being recorded. I will now turn the call over to Giovanni Pacelli. Silicon Labs Senior Director of Finance, Giovanni, please go ahead.

Thank you, Gigi, and good morning, everyone. We are recording this meeting, and a replay will be available for four weeks on the investor relations section of our website at investor.sylabs.com. Our earnings press release and the accompanying financial tables are also available on our website. Joining me this morning are Silicon Labs President and Chief Executive Officer Matt Johnson and Chief Financial Officer Dean Butler. They will discuss our fourth quarter financial performance and review recent business activity. We will take questions after our prepared comments and our remarks today will include forward-looking statements that are subject to risks and uncertainties. We base these forward-looking statements on information available to us as of the date of this conference call and assume no obligation to update these statements in the future. We encourage you to review our SEC filings, which identify important risk factors that could cause actual results to differ materially from those contained in any forward-looking statements. Additionally, during our call today, we will refer to certain non-GAAP financial information. A reconciliation of our GAAP to non-GAAP results is included in the company's earnings press release and on the investor relations section of our website. I'll now turn the call over to Silicon Labs Chief Executive Officer, Matt Johnson. Matt?

Thanks, Giovanni, and good morning, everyone. Silicon Labs delivered fourth quarter results consistent with our outlook as we continue to drive momentum through a challenging market cycle. Looking back at 2024, we grew more than 90% from our trough one year ago. underpinned by consistent improvement in both excess customer inventory and our bookings, as well as share gains across both of our business units. Our home and life business entered a correction several quarters before our industrial and commercial business that has since grown sequentially each quarter in 2024. At the same time, our industrial and commercial business has seen a more modest recovery after entering its correction a couple of quarters after home and life. As we look at 2025, we are confident in the many growth opportunities ahead, independent of a broad recovery and end market demand, as design wins in connected healthcare, smart metering, commercial retail, and many other applications are now ramping into production. In connected healthcare, we're partnering with more than a dozen continuous glucose monitoring customers globally. In Q4, we ship meaningful volume to multiple CGM customers, which helped drive the sequential growth of our home and life business last quarter. We continue to expect strong growth for us from CGM ramps throughout the coming year. As an application, we see the potential for CGM to comprise nearly 10% of our revenue in the next 12 to 18 months and are laser focused on further building momentum in this space across multiple regions with our industry leading portfolio and security capabilities. In smart metering, we have begun shipping millions of units to India's smart electric metering initiative using our Series 2 sub-gigahertz products. India's smart metering rollout is progressing quicker than other geographic metering rollouts have historically, and we're well positioned to capture a majority share of this 250 million unit deployment in the years to come. We are also continuing to gain share in more established metering markets, including in Japan's upcoming refreshment cycles. where we'll support a majority of the market with our higher content multi-protocol solutions for sub-Gigahertz and Wi-Fi connectivity. Further, we see higher content deployments in next generation US and European markets as well. In commercial retail, we drove strong momentum in the electronic shelf labeling market in 2024, shipping significant unit volume across multiple customers and regions, while further bolstering our partnership for the majority of the leading global ESL providers to support their anticipated rollouts and design plans. In addition to connected healthcare, smart metering, and electronic shelf labeling, we're also focused on driving continued share gains in Bluetooth, which is now our fastest growing technology by revenue and opportunity funnel. At CES this year, we showcased the first commercially available Bluetooth channel sounding solution enabled on our XG24, which is now shipping to customers and opens a new addressable market for us in proximity-based applications like asset tracking and geofence. We also debuted our first generally available Wi-Fi 6 device at CES, the 917, which can deliver an industry-leading two-year battery life on a single AAA battery. Initial design wins on our 917 are bringing low-power Wi-Fi connectivity to white goods and home automation devices. We've been investing significantly in Wi-Fi in recent years because of our belief in its immense growth potential within our IoT space. Early engagement with our existing customer base has been very strong as we work to support opportunities for pull-through of our Wi-Fi solutions. In addition to CES, we hosted our fifth annual Works with Conference series in the fourth quarter, where we met more than 1,000 customers and partners, more than half of which were new to the company. We host Works With each year to bring together our industry by connecting developers and large ecosystem partners, including Amazon, Google, Samsung, Nvidia, and others, with an aim to help foster collaboration and further accelerate adoption and deployment of wireless connectivity at the edge. In total at Works With, we logged approximately 6,000 hours of high-impact engagement, which is a testament to our unique position as the preeminent thought leader and wireless connectivity for the IoT. We're also seeing record momentum for 15.4 connectivity in preparation for wider availability of Matter-enabled devices later this year and into the future. As the leader in 15.4 technology, we remain very well positioned to benefit as Matter continues to pull Thread and other device interoperability into the mainstream. In fact, since the Matter spec was released we have secured more 15-4 design wins than the prior five years combined. In conclusion, the Silicon Labs team executed well against a challenging market backdrop in 2024. Looking ahead, the majority of our end customers have worked through their excess inventory, and our bookings continue to move in the right direction, indicating to us that our end markets are making progress towards a cyclical recovery. That said, as I stated in my opening remarks, We are confident that we will drive growth throughout 2025 independent of a significant broad-based demand recovery due to the share gains that we've made with our industry-leading Series 2 products that bring best-in-class wireless performance, ultra-low power consumption, and leading security to our tens of thousands of customers. We expect our share gains in areas such as connected medical, smart metering, commercial retail, and many other applications to continue materializing into significant production ramps throughout 2025, placing us in a unique position to drive above-market growth this year. At the same time, we'll continue investing in technology innovation, including in our next-generation Series 3 platform that is now sampling, and we'll maintain strong execution while driving toward our financial model. Now I'll hand it over to Dean for the financial update. Dean?