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Call sheet · Q2'24

SiTime (SITM)

Q2'24 earnings call · held August 7, 2024 · compared with the Q1'24 call · management-credibility review
6/12
Disclosure score
1 high, 3 medium, 2 low flags
Financial quality
Bottom line
The sleeper story is that SiTime is winning AI sockets but at progressively lower ASPs, with optical modules at $1 versus the $25 OCXOs they're touting, while management carefully avoids aggregate AI revenue disclosure. Yes, they beat and raised on inventory normalization, but operating cash flow went negative despite 33% sequential growth, which nobody will catch because they didn't mention it once. The binding constraint isn't demand or technology, it's their ability to maintain ASPs as they chase volume in commoditizing segments. Most revealing quote: 'revenue still takes a little bit of time' on Aura after paying $69M this quarter. My view changes if Q3 CFFO returns strongly positive and they provide actual AI revenue figures.

The 30-second version

  • AI content per system is $8-25 but they're talking unit counts, not dollar TAM: the real story is ASP compression
  • Beat and raise on inventory normalization looks great, but CFFO is missing from the transcript entirely
  • Aura acquisition revenue timeline just got pushed out without acknowledgment

What changed this quarter

MetricQ1'24Q2'24Change
Revenue$33.0M (-48% YoY)$43.9M (+58% YoY)+106pp YoY acceleration
CED Segment Revenue$9.9M (+8% YoY)$15.2M (+208% YoY)+200pp YoY surge
Automotive/Industrial Revenue$12.9M (+16% YoY)$14.8M (+20% YoY)+4pp YoY improvement
Mobile/IoT/Consumer Revenue$10.3M (-17% YoY)$13.8M (+33% YoY)+50pp YoY reversal
Gross Margin57.9%57.7%-20 bps compression
Operating Loss-$8.3M-$2.8M$5.5M improvement
Non-GAAP EPS-$0.08+$0.12$0.20 swing to profit
DSO46 days43 days-3 days improvement
Inventory$74.4M$70.8M-$3.6M drawdown
Operating Cash Flow$1.7M generated-$0.2M consumed-$1.9M deterioration

Accountability tracked

7 new promises made4 narrative shifts flagged6 prior promises scored
Inside the full report
The complete write-up covers the full promise ledger with kept/missed calls, disclosure-quality scoring, the metrics-vanished check, verification items, and the questions to ask next quarter.
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Scores, kept-promise rates, and flags on this site reflect the author's opinion, applying a stated methodology to statements management made on public earnings calls. Informational and educational purposes only - not investment advice, a recommendation, or an offer to buy or sell any security. Sources believed reliable but not guaranteed; the author may hold positions in the securities discussed.

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