| | | SiTime anticipates over 40% annual revenue growth in 2025 driven by AI data center demand
Aug. 06, 2025 7:41 PM ET
AI-Generated Earnings Calls Insights
Earnings Call Insights: SiTime Corporation (SITM) Q2 2025
Management View- CEO Rajesh Vashist highlighted that "SiTime is pioneering a new category in semiconductors, precision timing, part of the broader $11 billion timing market." He reported Q2 2025 revenue of $69.5 million, a 58% year-over-year increase, gross margin of 58.2%, and EPS of $0.47, up from $0.12 a year ago. Vashist stated, "Every customer segment grew in Q2 2025," with notable strength in the AI data center segment, which grew 137% year-over-year.
- Vashist explained, "Already in 2025 in AI, we have added design wins worth several hundred millions of dollars." He emphasized the performance of the Elite family of oscillator products and the Cascade clocking family, as well as the company's unique position offering a full suite of precision timing solutions.
- The CEO noted, "As we move into the second half of 2025, we anticipate sequential revenue growth in each of Q3 and Q4, supported by a strong demand in AI infrastructure and continued momentum across markets. This is the second consecutive year where we expect to grow revenue by at least 40%."
- CFO Elizabeth A. Howe reported, "In the second quarter, revenue increased 58% year-on-year to $69.5 million, fueled by CED, which grew 137% year-on-year to $36 million." Howe added, "Non-GAAP gross margin was 58.2% for the quarter, up 80 basis points sequentially, driven by favorable product mix and improving product costs."
- Howe also stated, "During the quarter, we completed a follow-on public offering of 2 million shares at $200 per share, raising $388 million in net proceeds. These proceeds strengthen our balance sheet and support strategic investments in innovation."
Outlook- Howe provided Q3 guidance: "For Q3, we expect revenue of $77 million to $79 million, gross margins of between 58% and 59%, and operating expenses to be in the range of $34 million to $34.5 million." She stated the company expects Q3 non-GAAP EPS to be in the range of $0.67 to $0.75 per share.
- Vashist reiterated the expectation for "sequential revenue growth in each of Q3 and Q4" and a full-year growth rate of "at least 40%."
Financial Results- Q2 2025 revenue was $69.5 million, a 58% increase year-on-year, with CED revenue at $36 million (137% year-on-year growth), automotive/industrial/defense revenue at $16.5 million (11% growth), and mobile IoT/consumer revenue at $17 million (23% growth).
- Non-GAAP gross margin for the quarter was 58.2%, up 80 basis points sequentially. Non-GAAP operating income was $7.2 million. Non-GAAP net income was $11.6 million, or $0.47 per share.
- Accounts receivable stood at $26.9 million, and inventory at $84.1 million. Cash and short-term investments totaled $796.7 million with no debt. Cash from operations was $15.3 million; capital expenditures were $18.3 million.
Q&A- Christopher Caso, Wolfe Research: Asked about growth expectations by segment and guidance policy for the mobile segment. Howe answered that CED led by AI is expected to remain the strongest growth area, with seasonal strength expected in consumer markets in the second half. Vashist clarified, "We only give guidance when we can see it... we now have enough visibility this year to be able to say that."
- Tore Egil Svanberg, Stifel: Queried about flat sequential results in mobile/consumer and potential softness in automotive. Howe explained seasonality and initial product launch effects, and Vashist noted, "There is a little bit of softness in automotive. We see that, but we still grow."
- Suji Desilva, ROTH Capital: Asked about margin tailwinds from new products and revenue mix. Vashist described higher ASPs for new products and identified 2026 as significant for new product expansion.
- Nathaniel Quinn Bolton, Needham: Asked about content opportunity in hyperscaler ASIC platforms and Symphonic product ASPs. Vashist confirmed similar opportunities as merchant GPU platforms, with Symphonic offering higher ASPs due to a system-level approach.
- Thomas O'Malley, Barclays: Inquired why the company's full-year growth outlook increased from 30%+ to over 40%. Vashist attributed this to better visibility and continued strength across all businesses, especially CED.
Sentiment Analysis- Analysts expressed positive sentiment, frequently congratulating management and focusing on drivers behind segment growth, margin expansion, and product mix. Questions were primarily forward-looking and constructive.
- Management maintained a confident and optimistic tone in both prepared remarks and responses, emphasizing growth, design wins, and market leadership. Vashist and Howe both spoke assertively about the company’s trajectory and investment strategy.
- Compared to the previous quarter, analyst tone shifted from cautious optimism about macro conditions and tariffs to more confident probing on growth drivers. Management’s tone grew more assertive, especially regarding revenue visibility and product momentum.
Quarter-over-Quarter Comparison- Guidance for full-year revenue growth was raised from 25-30% previously to "at least 40%" in Q2, supported by increased visibility and demand in AI-driven segments.
- Data center (CED) growth accelerated further, and management signaled continued momentum in automotive, industrial, and consumer segments, despite some softness in automotive.
- Gross margin improved sequentially, and capital raised via public offering significantly bolstered the balance sheet.
- Management’s tone became more confident regarding revenue trajectory and product roadmap, while analysts focused more on segment-level growth and new product contributions.
Risks and Concerns- Management acknowledged volatility in the consumer/mobile segment, maintaining a guidance policy based on visibility.
- Vashist noted "a little bit of softness in automotive," but highlighted ongoing growth and long-term market potential, especially in robotics and autonomous operations.
- Analysts raised questions about segment performance, margin sustainability, and timing of product contributions, but management consistently emphasized resilience and growth levers.
Final Takeaway
Management underscored that SiTime’s robust year-on-year growth, expanding product portfolio, and strengthening AI data center demand have positioned the company for sustainable expansion, with raised guidance now targeting at least 40% revenue growth for 2025. The company’s investments in innovation, disciplined cost management, and strategic customer engagement are anticipated to drive continued operating leverage and long-term value creation.
Read the full Earnings Call Transcript |
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