SiTime(SITM) - 2025 Q2 - Quarterly Results

Q2 2025 Financial Highlights SiTime achieved significant Q2 2025 revenue growth, with non-GAAP metrics indicating profitability despite GAAP net losses Key Financial Metrics (GAAP & Non-GAAP) This section presents a comparative overview of SiTime's Q2 2025 GAAP and non-GAAP financial performance, highlighting revenue growth and profitability differences Q2 2025 Key Financial Metrics Overview | Metric | Q2 2025 (GAAP) | Q2 2025 (Non-GAAP) | Q2 2024 (GAAP) | | :-------------------------------- | :--------------- | :----------------- | :--------------- | | Net Revenue | $69.5 million | $69.5 million | $43.9 million | | Gross Profit | $36.1 million | $40.5 million | $21.5 million | | Gross Margin | 51.9% | 58.2% | 49.1% | | Operating Expenses | $60.7 million | $33.3 million | $53.8 million | | Income (Loss) from Operations | $(24.6) million | $7.2 million | $(32.3) million | | Net Income (Loss) | $(20.2) million | $11.6 million | $(26.8) million | | Diluted EPS | $(0.84) | $0.47 | $(1.16) | | Total Cash, Cash Equivalents & Short-term Investments (as of June 30, 2025) | $796.7 million | N/A | N/A | - Net revenue increased 58% year-over-year to $69.5 million in Q2 2025 compared to $43.9 million in Q2 2024[2] - Non-GAAP net income was $11.6 million, or $0.47 per diluted share, in Q2 2025[4] Business Performance and Market Commentary SiTime's CEO highlighted continued momentum across end markets, attributing strong revenue growth, particularly in the Communications, Enterprise, and Data Center (CED) market, to the company's focus on high-performance applications and AI-driven demand for Precision Timing solutions - Revenue from the Communications, Enterprise, and Data Center (CED) market grew 137% year over year, driven by AI-fueled demand for Precision Timing solutions[3] - The company's focus on high-performance applications is demonstrating continued momentum across its end markets[3] Company Information This section provides an overview of SiTime Corporation, its non-GAAP financial reporting practices, and forward-looking statement disclaimers About SiTime SiTime Corporation is a Precision Timing company specializing in semiconductor MEMS programmable solutions, offering high performance, smaller size, lower power, and better reliability, with over 3.5 billion devices shipped - SiTime Corporation is known as the Precision Timing company[9] - The company's semiconductor MEMS programmable solutions enable product differentiation through higher performance, smaller size, lower power, and better reliability[9] - SiTime has shipped over 3.5 billion devices, indicating significant market penetration and impact on the timing industry[9] Use of Non-GAAP Financial Information SiTime provides non-GAAP financial measures to offer supplemental information on financial and business trends, believing they provide additional insight into ongoing performance and core operational activities for more consistent period-over-period comparisons - Non-GAAP financial measures are presented to provide supplemental information on financial and business trends, offering additional insight into ongoing performance and core operational activities[6] - Non-GAAP measures exclude stock-based compensation expense, amortization of acquired intangibles, and acquisition-related expenses for more consistent and meaningful comparisons[6] - The presentation of non-GAAP information is not intended to be a substitute for GAAP financial information[5] Forward-Looking Statements The report contains forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially, with SiTime disclaiming any obligation to update these statements - The press release contains forward-looking statements that involve risks, uncertainties, assumptions, and other factors that may cause actual results to differ materially[10] - Key risks include expectations and trends related to new product growth, product differentiation, market acceptance, and the ability to accurately forecast future performance[10] - SiTime undertakes no obligation to update these forward-looking statements, which are based on information available at the time they are made[10] GAAP Financial Statements This section presents SiTime's unaudited GAAP financial statements, including condensed consolidated statements of operations and balance sheets Unaudited GAAP Condensed Consolidated Statements of Operations The GAAP Condensed Consolidated Statements of Operations detail SiTime's financial performance for both the three and six months ended June 30, 2025, showing significant revenue growth but continued net losses Three Months Ended June 30, 2025 For the three months ended June 30, 2025, SiTime reported a 58% increase in revenue year-over-year, reaching $69.5 million, but recorded a GAAP net loss of $20.2 million GAAP Condensed Consolidated Statements of Operations (Three Months) | Metric | Q2 2025 (in thousands) | Q1 2025 (in thousands) | Q2 2024 (in thousands) | | :-------------------------------- | :--------------------- | :--------------------- | :--------------------- | | Revenue | $69,494 | $60,314 | $43,866 | | Cost of Revenue | $33,442 | $29,978 | $22,343 | | Gross Profit | $36,052 | $30,336 | $21,523 | | Research and Development | $30,563 | $30,026 | $25,490 | | Selling, General and Administrative | $28,228 | $26,856 | $25,190 | | Total Operating Expenses | $60,663 | $58,444 | $53,843 | | Loss from Operations | $(24,611) | $(28,108) | $(32,320) | | Net Loss | $(20,179) | $(23,877) | $(26,769) | | Net Loss per Diluted Share | $(0.84) | $(1.01) | $(1.16) | - Revenue for Q2 2025 was $69.494 million, a 58.4% increase from $43.866 million in Q2 2024[12] - GAAP net loss improved to $(20.179) million in Q2 2025 from $(26.769) million in Q2 2024[12] Six Months Ended June 30, 2025 For the six months ended June 30, 2025, SiTime's revenue grew to $129.8 million, a 68.8% increase, while the GAAP net loss improved to $44.1 million GAAP Condensed Consolidated Statements of Operations (Six Months) | Metric | H1 2025 (in thousands) | H1 2024 (in thousands) | | :-------------------------------- | :--------------------- | :--------------------- | | Revenue | $129,808 | $76,888 | | Cost of Revenue | $63,421 | $37,705 | | Gross Profit | $66,387 | $39,183 | | Research and Development | $60,589 | $51,034 | | Selling, General and Administrative | $55,086 | $49,102 | | Total Operating Expenses | $119,108 | $106,541 | | Loss from Operations | $(52,721) | $(67,358) | | Net Loss | $(44,056) | $(55,473) | | Net Loss per Diluted Share | $(1.85) | $(2.42) | - Revenue for the six months ended June 30, 2025, was $129.808 million, up 68.8% from $76.888 million in the same period of 2024[14] - GAAP net loss for the six months ended June 30, 2025, was $(44.056) million, an improvement from $(55.473) million in the prior year period[14] Unaudited GAAP Condensed Consolidated Balance Sheets As of June 30, 2025, SiTime's balance sheet shows a significant increase in total assets, primarily driven by a substantial rise in cash and short-term investments, leading to a strong increase in total stockholders' equity GAAP Condensed Consolidated Balance Sheets (as of June 30, 2025 vs. December 31, 2024) | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------------------------- | :--------------------------- | :------------------------------- | | Cash and Cash Equivalents | $172,522 | $6,106 | | Short-term Investments | $624,144 | $412,728 | | Total Current Assets | $918,901 | $544,060 | | Total Assets | $1,269,136 | $884,959 | | Total Current Liabilities | $107,542 | $108,449 | | Total Liabilities | $168,455 | $185,240 | | Total Stockholders' Equity | $1,100,681 | $699,719 | - Cash and cash equivalents increased significantly to $172.5 million as of June 30, 2025, from $6.1 million at December 31, 2024[20] - Total assets grew to $1.27 billion as of June 30, 2025, from $885.0 million at December 31, 2024[20] Non-GAAP Financial Reconciliation This section provides a reconciliation of GAAP to non-GAAP financial measures for both the three and six months ended June 30, 2025 Unaudited Reconciliation of Non-GAAP Adjustments (Three Months) For the three months ended June 30, 2025, SiTime's non-GAAP adjustments significantly transformed GAAP losses into non-GAAP profitability, with non-GAAP net income of $11.6 million Non-GAAP Reconciliation (Three Months Ended June 30, 2025) | Metric | GAAP (in thousands) | Adjustments (in thousands) | Non-GAAP (in thousands) | | :-------------------------------- | :------------------ | :------------------------- | :-------------------- | | Gross Profit | $36,052 | $4,398 | $40,450 | | Gross Margin | 51.9% | N/A | 58.2% | | Total Operating Expenses | $60,663 | $(27,373) | $33,290 | | Income (Loss) from Operations | $(24,611) | $31,771 | $7,160 | | Net Income (Loss) | $(20,179) | $31,771 | $11,592 | | Diluted EPS | $(0.84) | $1.31 | $0.47 | - Non-GAAP gross margin for Q2 2025 was 58.2%, compared to GAAP gross margin of 51.9%[16] - Non-GAAP income from operations was $7.16 million (10.3% of revenue) in Q2 2025, a significant improvement from GAAP loss from operations of $(24.611) million[16] Unaudited Reconciliation of Non-GAAP Adjustments (Six Months) For the six months ended June 30, 2025, non-GAAP adjustments converted a GAAP net loss of $44.1 million into a non-GAAP net income of $17.9 million, or $0.73 per diluted share Non-GAAP Reconciliation (Six Months Ended June 30, 2025) | Metric | GAAP (in thousands) | Adjustments (in thousands) | Non-GAAP (in thousands) | | :-------------------------------- | :------------------ | :------------------------- | :-------------------- | | Gross Profit | $66,387 | $8,671 | $75,058 | | Gross Margin | 51.1% | N/A | 57.8% | | Total Operating Expenses | $119,108 | $(53,278) | $65,830 | | Income (Loss) from Operations | $(52,721) | $61,949 | $9,228 | | Net Income (Loss) | $(44,056) | $62,000 | $17,893 | | Diluted EPS | $(1.85) | $2.58 | $0.73 | - Non-GAAP gross margin for the six months ended June 30, 2025, was 57.8%, consistent with the prior year period[18] - Non-GAAP income from operations for the first half of 2025 was $9.228 million (7.1% of revenue), a significant turnaround from a non-GAAP loss of $(11.036) million in the prior year period[18] Additional Company Updates This section provides updates on SiTime's inducement plan grants, conference call details, and investor relations contacts Inducement Plan Grants SiTime granted 50,654 restricted stock units (RSUs) on August 4, 2025, to 24 newly hired individuals globally under its Amended and Restated 2022 Inducement Award Plan, with vesting scheduled quarterly - SiTime granted an aggregate of 50,654 restricted stock units (RSUs) on August 4, 2025[7] - These RSUs were approved under SiTime's Amended and Restated 2022 Inducement Award Plan as a material inducement to employment for 24 newly hired individuals globally[7] - Vesting occurs quarterly, with one-fourth vesting on the first February 20, May 20, August 20, or November 20 falling in the one-year anniversary quarter of the vesting start date, and then 1/16th quarterly thereafter[7] Conference Call Information SiTime scheduled a conference call for August 6, 2025, at 2:00 p.m. Pacific Time to discuss its Q2 2025 financial results and business outlook, with access via registration or webcast - A conference call to discuss Q2 2025 financial results was scheduled for August 6, 2025, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time)[8] - Participants can register to receive a dial-in number and PIN or access a live audio webcast on the investor relations section of SiTime's website (investor.sitime.com)[8] - An archived webcast replay of the call will be available on the website[8] Investor Relations Contacts Investor relations inquiries for SiTime Corporation can be directed to Shelton Group or to SiTime's Chief Financial Officer, Beth Howe - Investor Relations contacts are Shelton Group (Leanne Sievers | Brett Perry) and SiTime Corporation's Chief Financial Officer, Beth Howe[21]