STMicroelectronics NV (STM) Q4 2022 Earnings Call Transcript

STMicroelectronics NV (NYSE:STM) Q4 2022 Earnings Conference Call January 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

Aleksander Peterc - Societe Generale

Didier Scemama - Bank of America Merrill Lynch

Francois Bouvignies - UBS

Andrew Gardiner - Citigroup

Sandeep Deshpande - JPMorgan Chase & Co.

Operator

Ladies and gentlemen, welcome to the STMicroelectronics' Fourth Quarter and Full Year 2022 Earnings Conference Call and Live Webcast. I'm Moira, the Chorus Call operator. [Operator Instructions].

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

Celine Berthier

Good morning. Thank you, everyone, for joining our fourth quarter and full year 2022 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, Enterprise Risk Management 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 and also the Innovation Officer. The 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. Good morning, everyone, and thank you for joining ST for our Q4 and full year 2022 earnings conference call. Let me begin with some opening comments, starting with Q4.

ST delivered net revenues and gross margin above the midpoint of our guidance. Net revenues of $4.42 billion increased 24.4% year-over-year and 2.4% sequentially. Gross margin was 47.5%. Operating margin was 29.1% and net income was $1.25 billion.

Looking at the full year 2022. Net revenues increased 26.4% to $16.3 billion, driven by strong demand in automotive and industrial and our engaged customer programs. All 3 product groups contributed to the growth. Profitability improved on a year-over-year basis. Gross margin was 47.3%, up from 41.7%. Operating margin was 27.5%, up from 19%. And net income was $3.96 billion, almost doubling from $2 billion.