Texas Instruments Incorporated (NASDAQ:TXN) Q2 2024 Earnings Conference Call July 23, 2024 4:30 PM ET

Company Participants

Dave Pahl - Head of IR
Haviv Ilan - CEO
Rafael Lizardi - CFO

Conference Call Participants

Timothy Arcuri - UBS
Stacy Rasgon - Bernstein Research
Vivek Arya - Bank of America Securities
Ross Seymore - Deutsche Bank
Chris Danely - Citibank
Toshiya Hari - Goldman Sachs
Harlan Sur - JP Morgan
Joe Moore - Morgan Stanley

Dave Pahl

Welcome to the Texas Instruments Second Quarter 2024 Earnings Conference Call. I'm Dave Pahl, Head of Investor Relations, and I'm joined by our Chief Executive Officer, Haviv Ilan; and 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.

Today, we'll provide the following updates. First, Haviv will start with a quick overview of the quarter. Next, he'll provide insight into second quarter revenue results with some details of what we're seeing with respect to our end markets. Lastly, Rafael will cover the financial results, give an update on capital management as well as share the guidance for the third quarter of 2024.

With that, let me turn it over to Haviv.

Haviv Ilan

Thanks, Dave. Let me also start by welcoming everyone to the call. I'm looking forward to joining our quarterly earnings calls moving forward and sharing more details about our business strategy with the investment community. It is an opportunity for me to directly share more information about our results and our strategic progress.

With that, I'll start with a quick overview of the second quarter. Revenue in the quarter came in about as expected at $3.8 billion, an increase of 4% sequentially and a decrease of 16% year-over-year. Analog revenue declined 11% year-over-year, and Embedded Processing declined 31%. Our other segment declined 22% from the year ago quarter.

Now, I'll provide some insight into our second quarter revenue by end-market. Our results continue to reflect the asynchronous behavior across our end-markets that we've seen throughout this cycle. Similar to last quarter, I'll focus on sequential performance as it is more informative at this time. First, the Industrial market was down low-single digits. The Automotive market was down mid-single digits. Personal Electronics grew mid-teens with broad-based growth while demonstrating continued improvement compared to its low point in the first quarter of 2023. Next, Communication Equipment was up mid-single digits. And finally, Enterprise Systems was up about 20%.