STMicroelectronics NV (STM) Q1 2023 Earnings Call Transcript

STMicroelectronics NV (NYSE:STM) Q1 2023 Earnings Conference Call April 26, 2023 3:30 AM ET

Company Participants

Celine Berthier - Group VP, IR

Jean-Marc Chery - President & CEO

Lorenzo Grandi - President, Finance, Purchasing, ERM & Resilience and CFO

Conference Call Participants

Didier Scemama - Bank of America

Matthew Ramsay - TD Cowen

Stephane Houri - ODDO BHF

Andrew Gardiner - Citigroup

Sebastien Sztabowicz - Kepler Cheuvreux

Lee Simpson - Morgan Stanley

Operator

Ladies and gentlemen, welcome to the STMicroelectronics' First Quarter 2023 Earnings Release Conference Call and Live Webcast. I'm Andre, the Chorus Call operator. I would like to remind you that all participants will be in listen-only mode and the conference is being recorded. [Operator Instructions].

At this time, it's my pleasure to hand over to Celine Berthier, Group Vice President, Head of Investor Relations. Please go ahead.

Celine Berthier

Thank you, Andre. And good morning. Thank you, everyone, for joining our first quarter 2023 financial results conference call. Hosting the call today is Jean-Marc Chery, ST's President and Chief Executive Officer.

Joining Jean-Marc on the call today are Lorenzo Grandi, President of Finance, Purchasing, ERM and Resilience and Chief Financial Officer; and Marco Cassis, President of Anal Velvement and Sensor Group and Head of STMicroelectronics Strategy, System Research and Applications Innovation Officer. This live webcast and presentation materials can be accessed on ST's Investor Relations website. The replay will be available shortly after the conclusion of this call.

This call will include forward-looking statements that involve risk factors that could cause ST's results to differ materially from management's expectations and plans. We encourage you to review the safe harbor statement contained in the press release that was issued with the results this morning and also in ST's most recent regulatory filings or a full description of these risk factors. Also to ensure all participants have an opportunity to ask questions during the Q&A session, [Operator Instructions].

I'd now like to turn the call over to Jean-Marc, ST's President and CEO.

Jean-Marc Chery

So thank you, Celine. And good morning, everyone. And thank you for joining ST for our Q1 2023 earnings conference call. So, let me begin with some opening comments starting with Q1.

So first quarter, our net revenues of $4.25 billion came in better than expected in automotive and industrial partially offset by lower revenues in personal electronics. Gross margin of 49.7% came in 170 basis points above the midpoint of our guidance, mainly due to product mix in a price environment that remain favourable.