STMicroelectronics N.V. (STM) CEO Jean-Marc Chery on Q1 2022 Results - Earnings Call Transcript

STMicroelectronics N.V. (NYSE:STM) Q1 2022 Earnings Conference Call April 27, 2022 3:30 AM ET

Company Participants

Celine Berthier - Group Vice President Head of Investor Relations

Jean-Marc Chery - President & Chief Executive Officer

Lorenzo Grandi - President & Chief Financial Officer

Conference Call Participants

Didier Scemama - Bank of America

Matt Ramsay - Cowen

Andrew Gardiner - Citi

Jerome Ramel - BNP Paribas Exane

Janardan Menon - Jefferies

Sandeep Deshpande - JPMorgan

Johannes Schaller - Deutsche Bank

Celine Berthier

Good morning. Thank you everyone for joining our first quarter 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 and Chief Financial Officer; and Marco Cassis, President of Analog, MEMS and Sensors Group and Head of ST Strategy, System Research and Applications and Innovation Office. This live webcast and presentation materials can be accessed on ST's Investor Relations website.

A 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 this morning with the results, and also in ST's most recent regulatory filings for a full description of these risk factors. Also to ensure all participants have an opportunity to ask questions during the Q&A session, please limit yourself to one question and a brief follow-up.

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 everybody and thank you for joining ST for our Q1 2022 earnings conference call. So let me begin with some opening comments. Starting with Q1. So Q1 net revenues of $3.55 billion and gross margin of 46.7% came in above the midpoint of our business outlook range. This revenue performance driven by strong demand in microcontrollers was partially offset by temporarily reduced operations at our Shenzhen, China manufacturing facility due to the pandemic, which impacted specifically our ADG revenues.

Looking at our year-over-year performance, net revenues grew 17.6%. Revenue growth was accompanied by improved profitability gross margin at 46.7%, up from 39% and operating margin of 24.7%, increasing from 14.6%. Net income more than doubled to $747 million.