Executive Summary

Q4 revenue was $166.25M, roughly flat sequentially (+0% vs Q3) and nearly doubled year over year; GAAP EPS was $(0.73) and non-GAAP EPS was $(0.11). Management described results as in-line and highlighted design-win ramps (CGM, ESL, metering) as the primary growth drivers for 2025 .
Mix shifted: Home & Life rose 11% q/q to $78M while Industrial & Commercial fell 8% to $89M; non-GAAP gross margin was stable at 54.6% (GAAP 54.3%) .
Q1 2025 guidance: revenue $170–$185M and then reaffirmed at $175–$180M (midpoint unchanged, range narrowed); GM 54–56%; non-GAAP EPS $0.01 to $(0.19). Management expects sequential growth to resume and likely continue each quarter in 2025, driven by program ramps, despite limited visibility from short lead-time orders .
Potential 2025 catalysts: CGM could reach nearly 10% of revenue in 12–18 months; first low-power Wi‑Fi 6 (SiWx917) ramps begin contributing “pretty quick” in 2025; Matter/Thread momentum and Indian smart meter deployments support above-market growth narrative .

What Went Well and What Went Wrong

What Went Well
- “Fourth quarter revenue nearly doubling” YoY, execution through a tough cycle; non-GAAP GM stable at 54.6% despite mix shifts .
- CGM shipped “meaningful volume” to multiple customers in Q4; company sees CGM at “nearly 10% of revenue in the next 12 to 18 months” .
- New product traction: SiWx917 low-power Wi‑Fi 6 garnering the largest pipeline they’ve seen and begins contributing in 2025; Bluetooth channel sounding opened new proximity applications .
What Went Wrong
- Industrial & Commercial declined 8% q/q (to $89M), offsetting Home & Life growth and leaving total revenue flat sequentially .
- Visibility remains limited due to short lead-time “turns” orders; management avoided calling an acceleration beyond Q1’s expected +~7% q/q midpoint growth .
- GAAP losses persisted (Q4 GAAP operating loss $(28.6)M; GAAP EPS $(0.73)), with annual operating cash flow still negative for 2024; progress is improving but margin lift depends on broader distribution recovery .

Financial Results

Metric	Q4 2023	Q2 2024	Q3 2024	Q4 2024
Revenue ($M)	$86.85	$145.37	$166.40	$166.25
GAAP Diluted EPS	$(2.19)	$(2.56)	$(0.88)	$(0.73)
Non-GAAP Diluted EPS	N/A	$(0.56)	$(0.13)	$(0.11)
GAAP Gross Margin %	50.6% (calc from $43.93M/$86.85M)	53.0%	54.3%	54.3%
Non-GAAP Gross Margin %	N/A	53.0%	54.5%	54.6%
GAAP Operating Expenses ($M)	$117.04	$124.60	$120.02	$118.85
Non-GAAP Operating Expenses ($M)	N/A	$102.08	$99.05	$97.75

Segment revenue ($M)

Segment	Q2 2024	Q3 2024	Q4 2024
Industrial & Commercial	$88	$96	$89
Home & Life	$57	$70	$78

Key operating KPIs

KPI	Q3 2024	Q4 2024
Distribution as % of revenue	72%	62%
Channel inventory (days)	53	56
Days sales outstanding (DSO)	~30 days	~30 days
Internal inventory ($M)	$139.49	$105.64
Days of inventory on hand	165	125
Cash & equivalents ($M)	$303.08	$281.61
Short-term investments ($M)	$66.60	$100.55
Operating cash flow (quarter)	$32M (Q3)	$10M (Q4)

Notes: Q4 revenue was within prior guidance range ($161–$171M) set on Q3 call; GAAP EPS of $(0.73) was slightly better than the guided $(0.75)–$(1.05) loss range, while gross margin met guidance .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue ($M)	Q1 2025	$170–$185	$175–$180	Narrowed range; midpoint maintained
GAAP Gross Margin %	Q1 2025	54%–56%	54%–56%	Maintained
GAAP OpEx ($M)	Q1 2025	~$128–$130	~$128–$130	Maintained
Non-GAAP Gross Margin %	Q1 2025	54%–56%	54%–56%	Maintained
Non-GAAP OpEx ($M)	Q1 2025	~$103–$105	~$103–$105	Maintained
GAAP Diluted EPS	Q1 2025	$(0.75)–$(1.05)	$(0.75)–$(1.05)	Maintained
Non-GAAP Diluted EPS	Q1 2025	$0.01–$(0.19)	$0.01–$(0.19)	Maintained

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 2024, Q3 2024)	Current Period (Q4 2024)	Trend
Design‑win ramps as primary growth driver	Q2: Growth driven by design wins and inventory reductions ; Q3: multiple ramps underway (connected health, metering, ESL)	Ramps to drive sequential growth starting Q1; likely positive q/q throughout 2025	Strengthening
CGM (Connected Health)	Discussed as a secular driver; Q3: initial production shipments and 2025 ramps	Shipped meaningful Q4 volume; CGM could reach nearly 10% of revenue in 12–18 months	Accelerating
Smart Metering (India, Japan, US/EU)	Q3: strength in smart meters; India ramp discussed	Shipping “millions of units” into India; strong share in upcoming Japan refresh; higher content in US/EU	Accelerating
ESL (Electronic Shelf Labels)	Q3: ESL strength and growing shipments	“Strong momentum” across customers/regions; partnerships with leading ESL providers	Sustained growth
Wi‑Fi 6 (SiWx917)	Q3: 917 begins ramp as early as Q1’25	Largest pipeline for any product; contributing to revenue in 2025	Building
Bluetooth channel sounding	Q3: xG24 Bluetooth channel sounding showcased	First commercially available solution shipping; enables proximity/asset tracking/geofence	Building
Matter/Thread	Q3: position as code/cert leadership; infrastructure build-out	Record 15.4 momentum; more design wins since spec release than prior 5 years combined	Improving
Inventory normalization & visibility	Q3: channel DOH 53; end-customer destocking improving; turns orders rising	Channel DOH 56, below 70–75 target; visibility limited by short lead times; end-customer inventory mostly normalized	Improving, still a headwind
Gross margin trajectory	Q3: non-GAAP GM 54.5%, improving vs prior quarter	Q4 non-GAAP GM 54.6%; expect gradual improvement toward mid/high‑50s as distribution recovers	Gradual uptrend

Management Commentary

“The Silicon Labs team executed well to close out 2024, with fourth quarter revenue nearly doubling from the same quarter one year ago.” — Matt Johnson, CEO .
“We expect sequential revenue growth to resume beginning in the first quarter and are encouraged by our 2025 outlook as design wins across several key focus areas continue to ramp into production throughout the year.” — Matt Johnson .
“In Connected Healthcare, we’re partnering with more than a dozen continuous glucose monitoring customers… we see the potential for CGM to comprise nearly 10% of our revenue in the next 12 to 18 months.” — Matt Johnson .
“We shared… [SiWx917] generated the largest opportunity pipeline… design win momentum has been strong, and that is going to be contributing to revenue starting pretty quick in 2025.” — Management on Wi‑Fi 6 ramps .
“We expect… non-GAAP gross margin [to] be in the range of 54% to 56% [in Q1],” with continued progress toward mid-to-high 50s over 2025 as volume/mix improve. — Dean Butler, CFO .

Q&A Highlights

Sequential growth cadence: Management “likely” expects positive q/q each quarter in 2025, driven by design-win ramps, but avoided calling an acceleration beyond Q1 given short lead times and limited visibility .
Wi‑Fi 6 (SiWx917) pipeline/revenue: largest offering pipeline to date; revenue contribution starts early 2025; focus on low-power edge IoT distinct from handset Wi‑Fi assets traded elsewhere .
Channel/distribution: Targeting ~70–75 days channel inventory (Q4 at 56); distribution mix dipped to 62% as direct ramps (CGM) outpaced long-tail recovery; no single 10% end-customer exposure .
Inventory/consumption: End-customer excess mostly normalized; remaining pockets are customer-specific; company not fully at consumption but inventory is now a lesser factor vs ramps .
Gross margin: Mid‑50s guide for Q1; progression expected through 2025 from scale and distribution recovery, not step-function .

Estimates Context

We attempted to retrieve S&P Global consensus (revenue, EPS) for Q4 2024 and Q1 2025 but could not due to an S&P Global daily request limit. Consensus comparisons are therefore unavailable in this report. Results are assessed against company guidance instead (Q4 revenue within prior $161–$171M guide; GAAP EPS slightly better than $(0.75)–$(1.05) loss guide) .

Key Takeaways for Investors

Design‑win ramps are the dominant 2025 growth driver; management expects sequential growth beginning in Q1 and likely through the year, with CGM, ESL, metering, and low‑power Wi‑Fi 6 as key contributors .
Mix dynamics: Direct ramps (CGM) are temporarily suppressing distribution mix and broader restocking; as long-tail distribution demand normalizes toward 70–75 DOH, margin and revenue breadth should improve .
Margin path is gradual, not step‑function: GM in the mid‑50s with scope to creep higher on volume/mix; watch for distribution recovery and higher-content deployments (e.g., Japan, US/EU metering) .
Guidance credibility: Q1 guide narrowed and reaffirmed with unchanged midpoint; management refrains from calling acceleration beyond Q1 due to short lead times—monitor bookings/POS trends and Analyst Day follow-ups .
Product cycle optionality: SiWx917 Wi‑Fi 6 opens new low‑power sockets; Bluetooth channel sounding broadens proximity use cases; Matter/Thread leadership supports multi-year device adoption .
Risk checks: Industrial recovery remains uneven; visibility constrained by turns orders; macro/tariff/geopolitical factors persist per risk disclosures .

Appendix: Non‑GAAP adjustments (from 8‑K)

Non‑GAAP excludes stock-based compensation, intangible amortization, acquisition/disposition related items, termination/impairment adjustments, equity-method investment adjustments, certain interest expense adjustments, and applies a long‑term non‑GAAP tax rate of 20% (effective from Q1’24) .

Other relevant Q4-period releases

SiWx917Y Wi‑Fi 6/BT LE modules announced (Dec 3, 2024) expanding the Wi‑Fi 6 portfolio for faster customer deployments .
India smart metering: shipped four million FG23 SoCs as part of AMI, underscoring metering momentum .

SILICON LABORATORIES INC. (SLAB)·Q4 2024 Earnings Summary