NXP Semiconductors N.V. (NASDAQ:NXPI) Q3 2024 Earnings Conference Call November 5, 2024 8:00 AM ET
Company Participants
Jeff Palmer - SVP, IR
Kurt Sievers - Executive Director, President, and CEO
Bill Betz - EVP and CFO
Conference Call Participants
Ross Seymore - Deutsche Bank
Christopher Caso - Wolfe Research
Vivek Arya - Bank of America
Christopher Muse - Cantor Fitzgerald
Stacy Rasgon - Sanford C. Bernstein
Francois-Xavier Bouvignies - UBS
Joshua Buchalter - TD Cowen
Toshiya Hari - Goldman Sachs
William Stein - Truist Securities
Christopher Danely - Citigroup Inc.
Jeff Palmer
Hello everyone. This is Jeff Palmer from NXP. Thank you and welcome to NXP Semiconductors Third Quarter Earnings Call. With me on the call today is Kurt Sievers, NXP's President and CEO; and Bill Betz, our CFO. The call today is being recorded and will be available for replay from our corporate website.
Today's call will include forward-looking statements that involve risks and uncertainties that could cause NXP's results to differ materially from management's current expectations. These risks and uncertainties include, but are not limited to, statements regarding the macroeconomic impact on the specific end markets in which we operate, the sale of new and existing products, and our expectations for the financial results for the fourth quarter of 2024. NXP undertakes no obligation to revise or update publicly any forward-looking statements. For a full disclosure on forward-looking statements, please refer to our press release. Additionally, we will refer to certain non-GAAP financial measures which are driven primarily by discrete events that management does not consider to be directly related to NXP's underlying core operating performance.
Pursuant to Regulation G, NXP has provided reconciliations of the non-GAAP financial measures to the most directly comparable GAAP measures in our third quarter 2024 earnings press release, which will be furnished to the SEC on Form 8-K and available on NXP's website in the Investor Relations section at nxp.com. Now I'd like to turn the call over to Kurt.
Kurt Sievers
Thank you, Jeff and good morning, everyone. We appreciate you joining our call this morning. Beginning with quarter three, NXP delivered quarterly revenue of $3.25 billion in line with our overall guidance of down 5% year-on-year and up 4% sequentially. While we experienced some strengths against our expectations in the communication infrastructure, mobile, and automotive end markets, we were confronted with increasing macro-related weakness in the industrial and IoT markets. At the total company level, sequential growth was led by China. Non-GAAP operating margin in quarter three was 35.5%, 50 basis points above the year-ago period and 40 basis points above the midpoint of our guidance. Year-on-year operating profit performance was due to a combination of lower revenue and gross-profit, partially offset by favorable operating expenses.