NVTS - Earnings call transcript Q1 2024 | Navitas Semiconductor Corporation

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Operator

Thank you for standing by. My name is Benjamin, and I will be your conference operator today. At this time, I would like to welcome everyone to Navitas Semiconductor First Quarter 2024 Results Conference Call. All lines have been pleased with you to prevent any background noise. [Operator Instructions] I would like to turn the call over to Stephen Oliver, Vice President of Investor Relations. ahead. go Please

Stephen Oliver

and replay available the our I'm Thank and call. everyone. EVP, following XXXX Vice of Eugene on President Conference will and webcast and Good be available Janet approximately for Stephen of joining Relations. Sheridan, by today you I'm Quarter recorded will President, XX Navitas Investor CEO the call, CFO Call. Co-Founder; Chou, afternoon, joined Oliver, Chairman, Semiconductor's Results website this approximately conference this be for days our X Treasurer. A hour following webcast First

our Additional information related on is to of business section Investor our website. the Relations posted also

our financial about financial on In measures earnings most make measures this the directly website includes non-GAAP these in release forward-looking including will statements of GAAP in or section. performance the with of quarter also and events measures. first Our our Investor earnings posted the conference financial non-GAAP Relations future acquisitions. comparable we about release included future Navitas, call, Reconciliations are

refer that our described Risk are the statements XX-K including factors release. forward-looking in results XX-Qs. recent our by Navitas's to could results these from affect subject wish from in our factors we We expressed or or You that believe events statements. forward-looking can actual uncertainties also expect our that Please to we materially in Important terms. and words business, caution and that forward-looking risks can like statements Factors could differ most similar to you cause such earnings to are differ sections cause or actual to identify expectations statements

Sheridan, events forward-looking may obligation or by assumptions reflect statements statements to And as to forward-looking change, and actual except may other changed Gene update over no or now results, law. that CEO. required Navitas to estimates assumes Our other

Eugene Sheridan

centers with market announce These revenue shipments market, thanks home a reflects reflect and continued our year-on-year and of I'm continuing industrial, $XX.X Genetic growth. XX% all GaN with today. segments. results QX leading-edge technology also million, silicon in our solar AI-based of Steve, expansion pleased scarcer us the BTD into mobile leadership of EV, for to displacing you joining storage to which energy into Thanks, but data appliance and technology

Navitas. opportunity are efficiency customers we efficiency, enabling and challenge, to last the that XX% In X.X to XX% have and our X increase for big server and supplies on X.X a kilowatts months, up be from to and capability. GenX data well now we delivered very our kilowatts to and carbide stepped silicon to year. can fast advances combined attributable way These to unique are technology, XX combination system in in XX% industry-leading leading-edge our demanded only announced the supply X,XXX XX give me requirements. target watts driving months, XXX AI our XXX specifics well big unprecedented year, further increase efficiency power our Blackwell data data XXX in EU each a and and very markets. to XX% of driven titanium that center minimum Let while This standard just is requires now with over box creates in In energy accelerated power required processes Traditional each challenge latest an to later X safe at center with in generation our lots. customers design to for power increase chipset a kilowatts NVIDIA's the power last centers, recently this XXX% requires our

world's design companies. of We at power wins X the largest some major announce are pleased to supplied

EV, In for $XX also this plug-in recent years, we our and $XX mainstream enable quarters, to which we millions are EVs AWS, being of Google, expansion customer battery and hydrogen developments, over pipeline, hybrids, significant combination AI million development, continue centers all XX EVs we Taken Super industry into strong to expect expect million Micro, given the in passenger not to Azure, a with penetration multiple In XXXX, cars. to accelerated these seeing data in commercial by and come. year even GaN-based total, if Inspur clean and in we in now cell projects revenue with customer Baidu. decades fuel in coming anticipate

pipeline all ramping to customer EV the are In customer 'XX anticipate EV systems team which onboard second drive silicon sales already We total, enables of carbide XXXX, while projects platform of also we on in originally Gen-X X.X on half a are Our of to in are these millions increased system projects are our and first solutions the of reported has expected technology. combination major million revenues to again greater comparable since once which tens engaged density created our platforms charger over delivering track again, kilowatt have XX% faster In regions, across industry-leading December. driven up to launched by XX-kilowatt Gen-X our carbide power making relative adoption. weight half Recently, adoption the OBC the excellent progress. 'XX. and savings in charging, new appliance the of a our fast will These considerable over by a EV-related we with significant pipeline and XXX customer enabled in segments, capabilities energy double lighter design EV additional that these platform, $XXX total projects silicon drive we've XX% and Xx we market. and and ramp XX% industrial now with

Gen and this pipeline wins U.S., opportunities, U.S.-based In optimized now million launch latest total for major all to especially customer X In and energy leader OEMs has pipeline December. applications, annual microinverters, 'XX, home together and first Combining million a charging. million storage X pipeline Tier CIVI the XXXX. and are support X European QX, ThinkBook ramping lots projects desktop across in significantly all and Europe now has we are the the to we those end launch has also major with transition reported percentage another technology in significantly inverters and of other beyond storage latest in our is the over the the microinverter in smartphone release that of and In sweet which GanSense. we the charger in In XX a tablet expect ultra-fast over adopt added committed of developments will revenue represents total, supplier leaders taking European in at for December. over ramp into increased solar pipeline grown fast a potential. All major to storage, GaN And with motors, XXXW energy in XX organics. [indiscernible] million of Dansie wins $XXX publicly chargers beyond new these XXX. $XXX that and top more industrial $XXX a XX of in will over start launched to to across potential. in development with told, notebooks. XX tens Gen which using half Lenovo in to we X, repay adoption In and dishwasher Our smartphone solar Carige includes Ultra has at X Gen-X, mobile millions GaN smartphone, GeneSiC mobile X-port expected at new rapid In double and a a our of over and industrial optimizers, reported notebooks, Notably, XX appliance $XXX we motor their markets, achieving above see year, appliance. strength XX customer This over fast particular, station launched we continue energy across XXXX. pumps Asia XPro total seeing GaNSense's major X of our signs all continue applications, growing customer and to recovery silicon models, chargers, solar OEMs spot consumer production, mobile in across in leader with Xiaomi and string products Mi with our Gen-X in the the docker

Finally, the crusting, that call solution as effective additional offers I'm the IC to our losses GanSlim. external we existing integrating components, Drive new all of further and excited step technology, costs mobile, simplifying the but system all system by applications. our GaNSense XXX enabling design many also under for TAM Integrated customer by features costs. forward GanSlim a such slims down announce could GaN appliances. home and silicon reducing consumer applications GaNSlim major and lots across is to lower targets that GaN compared GaNSlim family, design increase manufacturing

in latest $XX the revenue for which across is not from customer over million months programs our With and strong We pipeline customer growth success formal Janet year, translate over over the of and Much that, to launch and X GaNSlim of any line. regions our butter to adoption growth it our not confidence to and XXXX occur December Devers family, development carbide XXXX that markets, with in to the we have increased power $XX our discuss GaNSense, sampling XXXX While growth Overall, $X.X newest of are will silicon our product until we of XXXX. significant existing that million let for just fast pipeline. new to have over of pleased technologies, coming from canceling increasing major June, second me market Nonetheless, observed new has ICs, half all yet XX% and may this the anticipate in more our ago added projects CFO, turn signing all a we're and very industry-leading is our in already important nearly Gen-X recovery started driving moderated from pipeline in Chou, increases production beyond. financials. the for GaN XX opportunity which and and product billion.

Janet Tao Chou

In today, first the slightly I'll financial year-over-year $XX.X through midpoint the Revenue the Thank and grew XX% our quarter quarter. quarter XXXX you of of first range. in our second you, guidance for to million, my outlook will Gene. our above review first results, take I comments

strong as certain as traction experiencing factors markets, are others, similar industrial mobile solar, in we the EV, benefits and of technology our significant faster, our mobile charging demonstrating such was consumer end continue we first more macroeconomic our applications. of and energy-efficient as While quarter, to in business smaller, the in gain

salary as refer expenses, in first on The you Gross XXXX to market Total release revenue business. like million. the driven I'd SG&A we our expense $X.X of to I increases. technologies measures. mix the same and XX.X%, in press in expense was In products, expenses as to the year-over-year part much comprised This our will operating due addressing continue of for see $XX.X today. new expenses investments R&D was mobile focus slower the product growth were non-GAAP than earlier refer markets. our by non-GAAP to our that to GAAP of while increase million as of quarter annual we first $XX.X rest strength margin primarily to my first quarter is taxes Before the commentary, and the of profitability quarter million, expenses higher XX% of emerging payroll in growth to emphasize sharpen and continuing sequential of reconciliations

As this a loss year Gasoline in expected, others of significant from operations increased operations support of was new $XX.X sequentially XXXX. from and the million first next. the this our R&D XXXX to the and in $XX.X of together, plan first million loss product many development all for launch quarter to like quarter to we Putting compared

count the Our XXX was for share shares. first weighted average quarter million

receivable million $XX.X It prior Cash and in and of increases runs equivalents Accounts end of Turning levels to the liquidity. increase we quarter. quarter very program remains high in reflects to customer continue prior to balance million, no silicon The additional $XX.X with $XX.X increased support at sheet. later and to declined million in the million million to to $XXX.X cash Inventory major inventory debt. purchases compared carbide compared carry were the to $XX.X and year. strategic quarter. launches materials product strong the

continues first revenues quarter. recorded of expect guidance more decreased growth quarter And quarter second $XX.X XX% midpoint, in down Moving is partially in minus mobile lean market from plus and rep or as be of offset EV, sequentially expected $XX the second million XX or million, this of the by near continued projected points to At mix to the data for due basis represents for industrial plus the our Gross markets, market minus our quarter the and margin XX%, compared we the demand year-over-year than $XXX,XXX. is the in centers. on in guidance mobile second more towards term. the to We approximately XXXX. for solar initial the currently to to strength the

to expenses move in stock-based total, of we and be margin year, As are approximately expect operating intangible this with the higher-margin align improvement and the assets. through growth quarter we $XX.X will expected excludes non-GAAP second markets. our in compensation amortization In million,

operating invest expect by market. of in new will significantly continue will are seen outpaces growth we continue trends particularly during to we others, deliver be to closing, the in XXXX. R&D, not dollars same we in modest that while growth-oriented initiatives, In to Although overall some macro the power semiconductor we expense growth

are very markets as and with expansion the We faster our of let's some customer and of Operator, recover. customer reception products, our much of pipeline the session. Q&A our growth pleased the adoption end outlook for begin new

Operator

We session. will line Rosenblatt now of [Operator with begin Cassidy Securities. comes your the first the question-and-answer And Instructions] Kevin from question

Kevin Cassidy

there's hosted data looks a in management power. we it revenue. right to well-deserved would winning clear And gross that the centers corporate does center and Yes. while for L.A. pretty results. it this the was get tour Gene the they margin Congratulations volumes a of be It's a that start revenue take to the showing data did from get you're to great news above about nomination we for to Is margins a up a as Congratulations. to demand going average? And a like Or gross -- exciting team and CoreSite on data now be congratulations, seeing that year the going definite you're accretive from the to more of message also, need exciting and center. away? finalist And entrepreneur designs you're

Eugene Sheridan

$XX any it's I of typical expect industrial fast dollars few already first And started products to accretive X the like margin ramping GaNSafe year. straightaway. with next accretive average, to running think, half on Yes. above but gross especially markets, of ramping point second cellincarbade, more a million remarks, million this at them in this Good in as new anticipated question, I $XX and the the and Generation the mentioned my significantly of and And million Kevin. for we half, be straightaway

Kevin Cassidy

you Okay. per or dollar watt us dollar can And per kilowatt Navitas? Great. for for the ballpark if a like there's a give content, content

Eugene Sheridan

and Yes, power you per up of depending upon customers. It's kind on going in trying you and of it's in to goes We're up, kilowatts. $XX could probably push XX level to to content lot assume kilowatt And working up kilowatts. to now XX said. center $XX. probably to range going that up the X.X recently, X to a as we're more that level, as $XX each X.X-kilowatt our those, on year, power, last X design -- is the delivered X.X that But depend With range, power going that $XX it's a range.

Operator

of Next CGS from comes question line Jon Tanwanteng Securities. the

Jonathan Tanwanteng

trade It's actually for Charlie John.

possible XX% you. of see still couple to in expect a normalization revenue growth questions a is for Just do When XX% to demand this you year?

Eugene Sheridan

I obviously, seeing, QX. little our consensus But good think than are It's is at We're QX. on don't in by have seeing turn. half, who a a lot Yes. we that in perfect continued bottom. a a degradation peers the It's to early softness say, call chance we general as the to visibility revenue is are first the more dramatic in industry summer from QX

indicated signs So the forward XX% we we're growth. we now, moderate last little said to to a XX% looking expectations would in growth right be our we confirm bit compared in to But to our more as remarks, those quarter.

Jonathan Tanwanteng

question in just Great. December designs pipeline me. converted at one the expected identified or And Have more the for orders to rate. yet opportunities

Eugene Sheridan

market. Yes. varies It by

adoption you Of faster. can tend be and consumers happened term. those course, to And mobile rates shorter see

of XX mention added why revenue center it of I in bullish in which new we so tens to the of billion this data is they're and is that since and did concentrated the are later ramping percentage there already across we've rate $X.X still large of a indicated markets, conversion we're that programs, each X.XX the in of key of markets year. other markets some For the the targeted. most millions developing,

Operator

question Equity with comes Egan Charter next Jack Research. line the of Your from

Jack Egan

on that might automotive and be while. So it a spectrum kind long-term thought contributing really kick the growth, of was lower wouldn't weakness in near-term for I more some you mentioned to that automotive but

more fewer term? that slowing of near kind more Or customers reflective of their just So is it development actual shipments process? is

Eugene Sheridan

it's only Yes. into today, And -- No, silicon Jack. EV. question, we're definitely carbide great shipping

tracking And growth said, any Hyundai, seen So all we we We're inventory, We on to with slower second new have the pull-through programs. major rates track labs guys overall into time in ramp. EVs GaN into ongoing traded that also XX production the for in recognized that delays 'XX. Volvo, are first industry of of are With pockets with Those from go there. programs BYD, Shine in the customers. production some the joint shipping slowdown for like half the announced for haven't some Geely. those Honda, OEMs still and in the

So overall we programs, million, the see the actually all some the in don't in biggest. just highlighted XX% to a $XXX short $XXX the don't but term probably on see we slowdown much feel slowdown million so pipeline. at from production It's certainly the growth, We growing slowdown through. shift we in

Jack Egan

it. Got

Okay. on the just side. automotive And then sticking

a chain, last and away quarter quite you've from the sentiment talked automotive bit shifting in electric about a on fully companies heard the semiconductor kind This hybrids. of at supply They've side. least few more vehicles quarter, towards and

for negative really silicon traction And hybrids? silicon would need for GaN DC/DC that, that the probably there since the converter, power or of like you the and so lower really smaller, opportunity don't or slots hybrid. carbide development some carbide can I for I term, still use But for be understand a that stick a think an long of is

Eugene Sheridan

We Yes, same observed trend. the that's right.

pickup. term, still remarks. on going the is in EV mentioned solid. I in plug-in depending content. bit battery can pretty those $XXX Commercial or the hybrid strong, be the of seen The also $XXX, carbide content Battery near to depth plug-in a EV can hybrid $XXX EV there's and While can we've a slowdown silicon of upon they wideband up GaN be to But $XXX. and configuration, my

it's significant, very smaller, added. number albeit in it's significant, So got pipeline very we the we've and projects that a nice of

Operator

question of Your line the Needham. Bolton Quinn next with from comes

Quinn Bolton

track $XX Quinn the for on Any in be exiting to on talk more run you you year? [indiscernible] rate hit on appliance you about the Nick Are details Is segment. Can the year and still performance guide? and your the quarter million per Bolton.

Eugene Sheridan

Thanks hair expected focusing that. maybe just or European that's quarter, sort the a is as questions. to which probably some surprisingly, and not appliances. year, leaders good end I a Appliance track on want next other at of we the on, you the some for one release yet. Europe tends of don't starting as last and promising but in it Yes, ramps also in not still as really progress. wins at Europe, exciting on release had can the leading that X that's leading guys added major sexy of us guess leading really motor million but these $XX soon care year, pump year but the year throughout These as dishwasher X we this as energy includes in high top and product be home We'll to it of of to name. and to name dishwasher, efficiency them the be segments,

say stable. the pipeline, $XXX grown We million QX, the think didn't a December and in towards much too but growth it's going pretty year. we then. And definitely was the actually in way, year by going to business and has pretty term, since it of That stable. nice then is did I next the end into that see we're highlight So short

industrial bullish pretty and appliance we're on markets. So home

Quinn Bolton

Is follow-up, entirely a margin weaker. driven driven mobile in my like that you for talked come comments. little the And little guide just by bit mix a better in by about the gross bit being

Janet Tao Chou

Thank question. your you for

right. absolutely You're

and growth the strong actually is expansion on momentum in higher-margin we gross space. data heavily mobile We mix. see do see going EV, industrial Our mix And We in once on center. anticipate like markets mobile margin in is very -- margin higher but dilutive. dependent margin

Operator

Your of Richard next line Gould comes the question Gold from Tactical. with

Richard Gould

billion. to pipeline it I drill a Investor a by bit think in little And December billion, think customer few that wanted said is could remarkable. quarter, it $X.X pretty I summer, was XX I that. into that then year Torrance, the and year of just California, I And pipeline meeting if scrub revenues? it's you think, the wondering give bit was $X.X into got up have a was of how conversion north you into what And ago, the recall Meeting then little really any a of ultimately I And $XXX If about to, detail was hundred it more. last million. you million. at I if you the of sense now

Eugene Sheridan

Good bringing Yes. Thanks, for Richard, up. it question.

first a there, all, has production program. definition, slicerbid. a pipeline important on So One committed nitride valid of on especially R&D on it's is few going gallium criteria. of that lot a out There's and

consider design meet into wins. we be we're that. but to opportunities, design as billion. them then and program. And ones, $X.X It's opportunities. They and to So qualified for and value always the within for It's track is qualified customer valid billion opportunity those a evaluations, sure committed two, them we prop then they but fit the stage carbide use of see our not third for design, report good from strong by or require through make system And validation, a production. confirmed $X.X don't preproduction motivation a it's Number not to fit really technical to silicon technical is product make it the scrub the what there. sure or to And we they product. we have the unqualified that GaN we then contract, a go tracking in

too early call. conversion, to a of terms it's In little

which or take to or to months rates think seen pretty of we're high. still out. come mobile that market I XX are the months, some or really mobile, just seeing XX% sometimes XX we've other conversion forming markets, X XX% roll those been where our on years have higher, on

judge solar later into to and So able a rates EV we'll lot year in better be data than this conversion center next year.

Richard Gould

program I you when then And $X.X -- goes the of put there it way been kind just but be you purchase to One bucket haven't of buckets. orders would really have of then perhaps qualified, different talked be production. right? you And billion guess it to that's all no, it's from guess about, $X.X that be new part -- billion, and just in some committed committed, I the to if the will

Eugene Sheridan

No. qualified meets a criteria set.

So it's committed to but to customer going production. committed production program, the to not to us, committed is

good have a We fit. technical

We to high our It's prop have a But and pipeline. products. strong clarify, value interest use me development let a too.

products So from actually the remove them to pipeline. we go once the production,

qualification first that the from interest fit to to our goes in production in our production committed Once it's preproduction. with forecast. we production, it product technical to through count high then So stage,

that going the of pipeline that products for the number needs So to production. are into exceed grow, additional from to the pipeline going number those into programs

Richard Gould

that's Yes, Okay. remarkable.

Eugene Sheridan

clarification other it's estimate. a One too, lifetime Richard,

lifetime revenue. super annual an programs, we're conservative. of not these that's So be The to trying

Some could XX to theory, last X in be want optimistic. don't years, too we but or

lifetime about we assume more a about the they markets assume run year. So for and X or we mobile industrial generally X- consumer, X-year for

in the thinking our to in into they have might when periods. about revenue of translate that lifetime how product So factor the future you're

Operator

Your from Craig-Hallum. next Shannon with of the Richard comes question line

Richard Shannon

being the space in now focus I'll mobile better that's on relatively here. right Maybe the one of markets doing

was X. couple than a or maybe more quarters of think I ago it

and high. higher watt possession so conversion. them aftermarket the I looking I seeing customers be my the higher to seems your commitment It like mean, are fairly what you a hear, of here power. proposition the what fast it'd about at I tell side XX% above? of usage levels You guess, target XX both chargers you conversations committing of on the having from in I value like couple OEM of of your guys mean, with with and gifted In perspective, you're having a my in I to talked with Navitas more terms here, ramp can multiple importantly GaN is

what's what something are those delay their sense or to in in you of So terms and getting that? a conversations like committing pushback

Eugene Sheridan

usually and No, great appreciating are everybody observations, those as chargers does. Yes. thanks the for

but is is again you're much well, below watts -- you pretty charging doesn't a slow bring it already So small that relatively a right? right, and of value know XX and keep. profit

really XX charging into pretty for get a That's laptop XX fast You watts. smartphone. and fast for

You've content can multiple got devices now into And charge while of of leads advanced the one XXX also technology, you so chips highlighted. things of increasing power, super -- go GaN our you cases, in our and one chip to as [indiscenrnible], sweet up is you fast. many or that's spot products in which right the watts, to most X one that from the organic I

to trends and So we the see to charging. continue faster faster

the regions, albeit different in bit or your safely other to what battery technology is a in leaders seeing you're adopters and phone most from A see great accept you're going I CVX these compelling pace. watts. products slower XXX super to what think seeing to XX watt up, the MXX was or But about We're it's an of Chinese down the battery Pro, been aggressive. are are technology. OPO I products, Ultra, from I and the it the change obviously early mentioned have thing. be others. tend really Consumers and of those don't needs The charging. to out examples. think The overnight. mobile the XX at fast -- those XXX all but actually China same Most comes lot powerful Xiaomi trends of watts

as switching it's just So not XXX from as simple a watts. XX-watt to charger

others under more, XXX to XX accept watts XXX% The technology. advance you are that in to that or safely certainly minutes. Chinese need do that's You and proving can X battery and charge

So the example. they're setting

I a time. matter of think it's just

using in trend. is watts with technology. example, for You'll it seeing fast now our And see XX GaN we're that same their up to already Samsung charger,

those So they're them that's and strength. NIC are and coming, lead trends solid going to into our right

Richard Shannon

Okay. batteries. I about realize I didn't guess the

into be just seen space, here. the GaN increasing in the suppliers capacity, in to dynamics is question looking we've obviously material a kind getting silicon then general the here. seen systems We've aggressive. And some competitive both the carbide more Second and of slowdown space more

pricing, to I that in want competitive so dynamics X any in here And materials. any cetera, in change either et those just sense months of get the of you've last seen

Eugene Sheridan

as if it there trails Annoscience that see Infineon pretty as changed off Navitas admit power and see are doesn't we start-ups it Yes.As see GaN take It's pop it's various systems. you end, to primarily feel as up. integrations. there. much. much have much I Infineon We too quickly low from like and We on GaN the

seen haven't change to there. surprisingly, landscape. sort any change we or the competitive of unusual of ASP degradation in a So much not But anything

carbide, as a in share small really of with you big a of single-digit market that the things still are We're So course, player gains upside, Last matter. market might just players, lot year, IDMs, X% call or X% can them. tight. really have you share for the us

We're especially and we're part. system co-designing customer, price focused or of This tends I'd not cases, So space with have be space. part I'd degradation. and of obviously, on data In with say there's to many now ASP But very increase value. the system the our leader, to degradation. in some almost sort the supply the we're designing year, not focus normal supply. -- customer, for a system demand not the we we're ASP EV no the and center in say demand the softening on going

Operator

question with next Jon from your line Tanwanteng And Instructions] comes Securities. the CGS of [Operator

Jonathan Tanwanteng

achieve when But update you burn cash provide us an on you can think follow-up. quick might you breakeven? one Just

Janet Tao Chou

million. we margin achieve think reached when We to revenue $XX $XX level million breakeven can operating

and the laid In out Investor and efficiency on we new model, addition working with as improve very target growth focused process on long-term shaping We driving financial to remain which systems. our CFO capital confident I'm driving Day. board, on profitable

Operator

We this This have questions for concludes further no Thank at time. participating. today's conference. you

You may now disconnect.

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Navitas Semiconductor (NVTS) 9 May 242024 Q1 Earnings call transcript