STMicroelectronics N.V. (STM) Q2 2023 Earnings Call Transcript

For the period ending July 1, 2023

July 27, 2023 3:30 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Ladies and gentlemen, welcome to the STMicroelectronics Q2 2023 Earnings Results Conference Call and Live Webcast. I'm Moira, the Chorus Call operator. I would like to remind you that all participants will be in a listen-only mode and the conference is being recorded. The presentation will be followed by a Q&A session. [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, madam.

Celine Berthier

Thank you, Moira, and good morning. Thank you, everyone, for joining our second 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 Analog, MEMS and Sensors Group and Head of STMicroelectronics’ Strategy, System Research and Applications, Innovation Office.

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].

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

Jean-Marc Chery

Thank you, Celine, and good morning, everyone, and thank you for joining ST for our Q2 2023 earnings conference call. In Q2, our balanced end-market approach, our broad product portfolio and strong customer relationships enable again a double-digit year-over-year growth. This performance came along with a year-over-year increase of our profitability. And as already anticipated, 2023 will be another year of progress towards our $20 billion plus revenue ambition and related financial model.

Now, let's start with the financial highlights overview. Second quarter's net revenues of $4.33 billion came in above the midpoint of our business outlook range and Q2 gross margin of 49% was in-line with guidance. Q2 net revenues increased 12.7% year-over-year. The revenue performance continued to be driven by growth in Automotive and Industrial, partially offset by lower revenues in Personal Electronics.