Texas Instruments Incorporated (NASDAQ:TXN) Q3 2024 Earnings Conference Call October 22, 2024 4:30 PM ET

Company Participants

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

Conference Call Participants

Timothy Arcuri - UBS
Vivek Arya - Bank of America Securities
C.J. Muse - Cantor Fitzgerald
Ross Seymore - Deutsche Bank
Stacy Rasgon - Bernstein Research
Thomas O'Malley - Barclays
Joseph Moore - Morgan Stanley
William Stein - Truist Securities
Tore Svanberg - Stifel

Dave Pahl

Welcome to the Texas Instruments Third Quarter 2024 Earnings Conference Call. I'm Dave Paul, 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 third-quarter revenue results with some details of what we're seeing with respect to our end markets. And lastly, Rafael will cover the financial results and give an update on our capital management, as well as share the guidance for the fourth quarter of 2024.

With that, let me turn it over to Haviv.

Haviv Ilan

Thanks, Dave. Let me start with a quick overview of the third quarter. Revenue in the quarter came in about as expected at $4.2 billion, an increase of 9% sequentially and a decrease of 8% year-over-year. Analog revenue declined 4% year-over-year and embedded processing declined 27%. Our other segment declined 5% from the year-ago quarter.

Now, I'll provide some insight into our third quarter revenue by end-market. Our results continue to reflect the asynchronous market behavior 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 as customers continue to reduce their inventory levels. The automotive market increased upper single digit, primarily due to strength in China. Personal Electronics grew about 30%, Enterprise Systems was up about 20%, and Communication Equipment was up about 25% as the cyclical recovery continued in these three markets.