Executive Summary

Q4 2024 performance: revenue ~$19.04M (derived), gross margin ~56.1%, operating margin ~30.5%, net income ~$5.41M; full-year revenue grew 7.6% to $70.6M, GAAP net income rose 7.7% to $19.2M, and non-GAAP net income reached $20.6M .
Management revised FY24 guidance in November: revenue lowered to ~$70.6M but profits raised; actuals slightly exceeded revised revenue and materially beat revised net income/non-GAAP net income .
Segment mix skewed toward automotive (Q4 automotive ~$14.27M vs security ~$4.77M; FY automotive $51.9M, +15% YoY; security $18.7M, -9% YoY) .
Dividend continuity: $0.50 per share for FY2025 (two $0.25 installments), consistent with policy of ~50% of prior-year non-GAAP net income distribution .
Potential stock catalysts: beat vs own guidance, stronger margin mix, plus announced merger agreement with ASMedia (Jan 15, 2025) .

What Went Well and What Went Wrong

What Went Well

Automotive outperformance: FY automotive revenue rose to $51.9M (+15% YoY) on shipment volume growth, offsetting ASP mix; Q4 automotive derived ~$14.27M .
Margin resilience and mix: FY gross margin improved to 54% (from 53%); Q4 derived gross margin ~56.1% (mix/ASP) .
Strong liquidity: cash and equivalents ended FY at $67.8M; combined cash, cash equivalents, and short-term investments of ~$72.3M provide flexibility .
Management execution on R&D: “progress of tape-out … mostly in line … plan to tape-out three to four new products in 2025” (supports 2025/2026 revenue pipeline) .

What Went Wrong

Security surveillance softness: FY security revenue fell to $18.7M (-9% YoY) on shipment declines and unfavorable mix; Q4 derived ~$4.77M .
Opex pressure: FY R&D +18% to $8.45M and SG&A +11% to $10.45M; tax provision up 28% to $2.99M with higher pre-tax profits .
Inventory build and working capital drag: FY CFO $14.66M included a $4.8M inventory increase (units produced exceeded sales), reducing operating cash conversion .

Financial Results

Quarterly comparison (Q2 → Q3 → Q4)

Metric	Q2 2024	Q3 2024	Q4 2024 (derived)
Revenue ($USD Millions)	$16.779	$18.486	$19.037 (FY $70.613 − 9M $51.576)
Gross Margin (%)	52%	53%	~56.1% (Q4 GP $10.677 ÷ Q4 Rev $19.037)
Operating Income ($USD Millions)	$4.270	$4.809	~$5.806 (FY $19.077 − 9M $13.271)
Net Income ($USD Millions)	$4.336	$5.052	~$5.413 (FY $19.181 − 9M $13.768)
Diluted EPS ($USD)	$0.23	$0.27	N/A (not disclosed)

Notes: Q4 figures are derived from FY less 9M actuals in company filings .

Annual comparison (FY 2023 → FY 2024)

Metric	FY 2023	FY 2024
Revenue ($USD Millions)	$65.645	$70.613
Gross Margin (%)	53%	54%
Operating Income ($USD Millions)	$18.025	$19.077
Net Income ($USD Millions)	$17.809	$19.181
Diluted EPS ($USD)	$0.95	$1.01
Non-GAAP Net Income ($USD Millions)	$19.182	$20.554
Non-GAAP Diluted EPS ($USD)	$1.03	$1.09

Segment breakdown (quarterly)

Segment Revenue ($USD Millions)	Q2 2024	Q3 2024	Q4 2024 (derived)
Automotive	$12.386	$12.771	~$14.270 (FY $51.908 − 9M $37.638)
Security Surveillance	$4.393	$5.715	~$4.767 (FY $18.705 − 9M $13.938)

KPIs

KPI ($USD Millions unless noted)	Q2 2024	Q3 2024	Q4 2024 (derived)
Cash from Operations	$5.353 (6M)	$10.753 (9M)	~$3.911 (FY $14.664 − 9M $10.753)
Cash & Equivalents	$23.577	$46.191	$67.820
Total Assets (year-end)	—	—	$95.594
Total Equity (year-end)	—	—	$83.645

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY 2024	$72.206M	$70.576M	Lowered
Income from Operations	FY 2024	$17.321M	$17.991M	Raised
Income Before Income Taxes	FY 2024	$19.321M	$20.934M	Raised
Net Income	FY 2024	$17.196M	$18.448M	Raised
Non-GAAP Net Income	FY 2024	$18.620M	$19.811M	Raised
Basic EPS	FY 2024	$0.94	$0.99	Raised
Diluted EPS	FY 2024	$0.92	$0.99	Raised
Non-GAAP Basic EPS	FY 2024	$1.02	$1.06	Raised
Non-GAAP Diluted EPS	FY 2024	$1.00	$1.06	Raised
Dividend	FY 2025	$0.50 (two $0.25) forecast	$0.50 declared first installment; policy ~50% of prior non-GAAP NI	Maintained

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 2024)	Previous Mentions (Q3 2024)	Current Period (Q4 2024)	Trend
Automotive demand/design wins	Automotive drove 75% of 6M revenue; design wins in backup/surround-view; pipeline supported by shipments	Auto expected flat QoQ in Q3 with improvement in Q4; design wins intact	FY auto +15% YoY on higher volumes; Q4 auto derived ~$14.27M	Improving mix toward automotive
Security camera market	Security softness due to inventory adjustments, FX reserve declines in several regions	Security QoQ uptick in Q3 but end-market remains slow	FY security -9% YoY; Q4 derived ~$4.77M	Gradual recovery, still a headwind
R&D execution	Tape-outs elevated; R&D spend up (personnel/software)	Tape-out progress mostly in line; R&D to drive 2025 products	FY R&D +18% YoY; 3–4 new products planned for 2025	Continued investment
Supply chain/inventory	Inventory build in 6M (+$2.8M)	Working capital: inventory up; CFO strong in 9M	FY inventory +$4.8M; CFO $14.66M	Inventory normalization needed
Regulatory/trade (Hikvision, FCC, CMIC)	Risks acknowledged; products not subject to EAR; CMIC list restrictions noted	FCC Secure Equipment Act impacts to Hikvision noted but not expected to directly affect Techpoint	Geographic concentration: China 72% of FY revenue; continued regulatory vigilance	Ongoing risk management
Dividend policy	$0.50 in FY2024 (two installments) paid; policy ~50% of prior non-GAAP NI	FY2025 forecast $0.50	FY2025 first installment accrued; policy reiterated	Stable return of capital

Management Commentary

“Updating revenue … mainly due to unexpected mix of products requested by customers, but not due to loss of business … guiding higher profits vs original plan, due to slightly higher gross margin and lower operating expense.” (11/8/2024) .
“Tape-out … mostly in line … plan to tape-out three to four new products in 2025 and generate additional revenues for 2026 and forward.” .
Dividend policy: aggregate annual dividends targeted at ~50% of prior-year non-GAAP net income; board retains discretion to modify/cancel .
Liquidity statement: cash, cash equivalents and short-term investments as of 12/31/2024 were ~$72.3M; sufficient for at least the next 12 months .

Q&A Highlights

No Q4 2024 earnings call transcript was published in our document set; Q&A themes are unavailable (no transcript found) [—].

Estimates Context

S&P Global/Capital IQ consensus estimates for THPTF were unavailable (tool returned missing CIQ mapping). As a result, Street beat/miss analysis cannot be provided. Values would have been retrieved from S&P Global if available.
Relative to Techpoint’s revised guidance (Nov 8): actual FY revenue $70.613M vs revised $70.576M (slight beat), GAAP net income $19.181M vs revised $18.448M (beat), non-GAAP net income $20.554M vs revised $19.811M (beat) .

Key Takeaways for Investors

Q4 momentum and mix: Automotive strength and favorable product mix expanded Q4 gross margin to ~56.1% (derived) despite surveillance softness; supports earnings quality into early 2025 .
Execution vs guidance: Management prudently lowered FY revenue guidance but raised profit metrics in Nov; actuals slightly exceeded revised revenue and outperformed revised profit targets, indicating disciplined cost/margin control .
Cash returns intact: FY2025 dividend ($0.50) aligned with policy targeting ~50% of prior non-GAAP net income; first installment accrued for payment on/around Feb 14, 2025 .
Liquidity/optionality: Year-end cash and equivalents of $67.8M (with short-term investments ~$4.5M) provide flexibility for R&D investment and working-capital normalization .
Watch surveillance recovery: Security sales remain below prior-year levels; any normalization of channel inventories and regional FX constraints could add incremental margin-friendly revenue .
Regulatory/geopolitical exposure: 72% of FY revenue from China highlights ongoing trade/FCC/Hikvision risks; management reiterates products not subject to EAR, but vigilance remains necessary .
Corporate action catalyst: Proposed merger with ASMedia announced Jan 15, 2025 introduces path-dependent outcomes; monitor closing conditions, timelines, and transaction impacts on capital returns and strategy .

Sources: Company filings and exhibits:
- Q4/FY 2024 Tanshin (8-K, 2/14/2025) **[1556898_0000950170-25-020937_ck0001556898-20240209.htm:0]**–**[1556898_0000950170-25-020937_ck0001556898-ex99_1.htm:12]**
- Q3 2024 10-Q and related 8-K (11/8/2024) **[1556898_0000950170-24-123896_ck0001556898-20240930.htm:0]**–**[1556898_0000950170-24-123896_ck0001556898-ex32_2.htm:0]** **[1556898_0000950170-24-123895_ck0001556898-20241108.htm:0]**–**[1556898_0000950170-24-123895_ck0001556898-20241108.htm:8]**
- Q2 2024 10-Q and related 8-K (8/9/2024) **[1556898_0000950170-24-094540_ck0001556898-20240630.htm:0]**–**[1556898_0000950170-24-094540_ck0001556898-ex32_2.htm:0]** **[1556898_0000950170-24-094539_ck0001556898-20240809.htm:0]**–**[1556898_0000950170-24-094539_ck0001556898-20240809.htm:5]**
- Dividend press release/8-K (12/17/2024) **[1556898_0000950170-24-137065_ck0001556898-20241217.htm:0]**–**[1556898_0000950170-24-137065_ck0001556898-ex99_1.htm:1]**
- FY 2024 10-K (3/5/2025) **[1556898_0000950170-25-033305_ck0001556898-20241231.htm:0]**–**[1556898_0000950170-25-033305_ck0001556898-20241231.htm:59]**

Techpoint, Inc. (THPTF)·Q4 2024 Earnings Summary