Texas Instruments Incorporated (NASDAQ:TXN) Q4 2023 Earnings Conference Call January 23, 2024 4:30 PM ET

Company Participants

Dave Pahl - Head of Investor Relations

Rafael Lizardi - Chief Financial Officer

Conference Call Participants

Toshiya Hari - Goldman Sachs

Timothy Arcuri - UBS

Chris Danely - Citibank

Tom O'Malley - Barclays

Ross Seymore - Deutsche Bank

Joe Moore - Morgan Stanley

Harlan Sur - JP Morgan

Joshua Buchalter - TD Cowen & Company

CJ Muse - Cantor Fitzgerald

Chris Caso - Wolfe Research

Dave Pahl

Welcome to the Texas Instruments Fourth Quarter 2023 Earnings Conference Call. I'm Dave Pahl, Head of Investor Relations, and I'm joined by our Chief Financial Officer Rafael Lizardi.

For any of you who missed the release, you can find it on our website at ti.com/ir. This call is being broadcast live over the web and can be accessed through our website. In addition, today's call is being recorded and will be available via replay on our website.

This call will include forward-looking statements that involve risks and uncertainties that could cause TI's results to differ materially from management's current expectations. We encourage you to review the notice regarding forward-looking statements contained in the earnings release published today, as well as TI's most recent SEC filings, for a more complete description.

I'd like to provide some information that's important for your calendars. Next week, on Thursday, February 1, at 10 a.m. Central Time, we'll have our Capital Management Call. Similar to what we've done in the past, Rafael and I will summarize our progress and provide some insight into our business and our approach to capital allocation as we prepare for the opportunity ahead.

Moving on, today we'll provide the following updates. First, I'll start with a quick overview of the quarter. Next I'll provide insight into fourth quarter revenue results with some details of what we're seeing with respect to our end markets. I'll then provide an annual summary of revenue breakout by end market. And lastly, Rafael will cover the financial results and our guidance for the first quarter of 2024.

Starting with a quick overview of the quarter. Revenue is $4.1 billion, a decrease of 10% sequentially and 13% from the same quarter a year ago. Analog revenue declined 12% year-over-year and embedded processing declined 10%. Our other segment declined 25% from the year-go-quarter.

Now I'll provide some insight into our fourth quarter revenue by end market. Our results reflect increasing weakness in industrial and a sequential decline in automotive as customers work to reduce their inventory levels. Similar to last quarter, I'll focus on sequential performance as it's more informative at this time. First, the industrial market was down mid-teens as we saw that increasing weakness. The automotive market was down mid-single-digits after 3.5 years of very strong growth. Personal electronics was about flat. And next, communications equipment was down low-single-digits. And lastly, enterprise systems grew low single digits.