Silicon Laboratories Inc. (SLAB) Earnings Call Transcript & Summary

Good morning, everybody. Welcome to Silicon Labs' 2025 Analyst Day. Thank you all for being here. My name is Giovanni Pacelli. I lead Investor Relations for the company. And I'd like to introduce our speakers for today. So Matt Johnson, our CEO, will give the first presentation followed by Daniel Cooley, our Chief Technology Officer; Brandon Tolany, Head of Sales and Marketing for the company; and Dean Butler, our CFO. Just a couple of housekeeping items. Our comments today will include forward-looking statements, which are subject to risks and uncertainties. I would refer you to our most recent 10-K filing for a description of those risks and uncertainties. We also issued a press release this morning reaffirming our Q1 guidance for the quarter. And with that, we will start with a quick video. [Presentation]

Ladies and gentlemen, please welcome the President and CEO of Silicon Labs, Matt Johnson.

Good morning, everyone. Thanks for being here, and welcome to Silicon Labs 2025 Analyst Day. The last time we were here was back in 2022. And at that time, I was just stepping in as CEO, and we had just divested everything unrelated to our core business so we could focus on the IoT. And at that time, we shared our vision, which was to be the undisputed leader in this space, in the IoT space in embedded wireless. And I'm excited to share that 3 years later, after having gone through a really difficult market cycle, not only do we believe that, that vision is intact, we believe that we're better positioned than ever before to accomplish that. So the reasons are, if you just walk through this, the first thing is our market has really presented amazing potential as we look forward. And what I mean by that is, we look at the market, there's multiple growth vectors that we have that weren't available in the past, and we're going to talk about those today. At the same time, our design wins have rapidly accelerated during that time frame. And we're moving now from a mode of -- we'll continue to win designs, but a mode to really ramping those designs, which is super important. At the same time, we're seeing industry alignment and initiatives like Matter that are going to help accelerate our space as well. And last but not least, artificial intelligence is also going to accelerate the adoption of edge devices and also offer more content possibilities as well. So the combination of all these things creates a really exciting backdrop and positions us for high confidence growth moving forward. So first, I'm going to talk a little bit about our market to give some framing, and then I'll talk about our position within the market. So first things first, our market is comprised of the billions and billions of devices that sit on the edge that have unique requirements. These unique requirements can be size, cost, power consumption, wireless performance, security requirements. All these things are unique to this space. And these are the devices that you can wear, they're in your home, your office, stores, infrastructure factories, farms, you name it. They've become kind of the fabric all around us in the world we live in. And sometimes you're aware these devices are there. Sometimes you're not aware these devices are there. And this market is positioning, as I said earlier, for accelerated growth. We're seeing broad adoption industry-wide, whether it's health care, consumer, industrial or commercial. And some of the reasons for this is we're seeing the technology barriers reducing. So one of the things typically you see in these markets is, is the technology robust enough? Is it reliable enough? Is it of a level that allows for broad adoption. And we are seeing IoT technology achieve that potential for that reliability. At the same time, we're seeing great returns. And those returns for our customers are important because as they adopt the technology, they're seeing faster and faster returns going from, in some cases, 18 to 12, even 9 months, which is huge. At the same time, we see industry participation in trying to accelerate adoption. When I talk about Matter, it's really remarkable to see the industry coming together with a combined purpose to accelerate edge adoption. And then artificial intelligence, right? If you think about the need for devices to be able to take advantage of data, to harness data and then to accelerate adoption, all these things are coming together with artificial intelligence. And I'll talk about how that's impacting us, specifically as a company. But the combination of all these things is what matters. And we believe the combination of the technology barriers reducing, the combination of industry initiatives, the combination of AI, the combination of broad adoption is going to present a market that has at least 10 billion units per year of volume or units by 2035. And if you think about that, it's a remarkable number. How many markets do we have in the semiconductor space where you can talk about the end market in billions, let alone tens of billions of units. So it really presents an incredible growth potential moving forward, and that's incredibly exciting. So think about that market is accelerating, offering more growth potential, how do we fit in that market? If you want to think about our unique positioning, there's 3 things that you can put together that create a unique moat for us as a company. Our breadth, our depth and our focus. And I'll walk through each one and give some context on why they matter so much for us. The first is our breadth. So you can break it into a few dimensions, but the first is complete solutions. And everyone talks about complete solutions in multiple ways. But for us, it's definitely providing all the silicon, all the software, all the tools and all the services that need to go with our products. It's also providing complete solutions in the sense that we're providing almost or sometimes all the silicon and integration that our customers need for their product. So in many cases, we're the primary or only silicon in a lot of the products that we offer. So when we talk about complete solutions, that's what we mean and what's impressive about that is we do that across thousands and thousands of customers, and we do that across so many different applications and technologies. And Brandon is going to talk more about that because that's a really unique capability to service the mass market or the broad market in wireless, which is notoriously difficult space to help customers ramp the solutions, and we've become exceptionally good at that. At the same time, we don't only do that across so many customers, we do it across so many different wireless technologies, protocols and ecosystems. And I can assure you taking -- developing all of those, making them work and making them work well together is no trivial task. And we're able to do this not only at hundreds and thousands of customers but thousands and thousands of customers. which positions us incredibly well for growth moving forward. At the same time, we have the depth. And I think the depth piece is something that Silicon Labs is probably the most known for. It's a superpower that we have as a company that our culture, our people, our team are domain experts, they're RF experts. We've built an entire world and ecosystem around servicing this market and space. That's how we're able to provide what you'll see in a few minutes, solutions that provide new-to-industry performance in the wireless space, new-to-industry performance on battery life from power consumption, new-to-industry security in our space and new-to-industry machine learning inference performance. That comes from that culture and that depth of expertise and knowledge that our team lives and breathes every day and is built into our culture. And then the third piece is focus, which is probably least appreciated of the 3 in terms of its importance. And what I mean by that is, as a company, this is all that we do. We're a pure play. This is our focus. This is our core business. And why does that matter? I'll try to give a good example would be the supply chain crisis that we just all went through recently. We experienced customers going through all sorts of challenges and issues. And what we saw is a lot of our competitors, this is not their core business. This is not their core focus. And that came through in their allocation strategy. We were able to gain significant, meaningful share because a lot of our competitors allocated to other areas and showed their commitment to the space that it wasn't part of their core focus. Our customers sell that as well. And also at the same time, our suppliers saw that. Our suppliers saw what the allocation strategies were, the commitment, the focus to the space. We also shared our design wins and ramps as a strategy to secure more supply because our view was it was the best way to gain credibility in what was to come for future growth. So at the end of the day, going through that supply chain crisis, our reputation and credibility with our customers increased, with our suppliers increased, and that was not even the intent of the divestiture. When we did that, we thought, okay, this is a mid- and long-term play, but it's actually helped us short term. The other piece that matters tremendously around focus is that everything we do we build custom specific for the IoT space. And that is incredibly important. A lot of the companies that -- this is not their core business, they'll try to take technology that was made for one market and reapply it to another. And that may work for some applications on the fringe of the market. But for the core of the market, it has unique requirements. It has unique performance, as I said, battery life, power security price, all these things need to be built from the ground up for this space. And we are on a multigenerational product and platform journey that we continue to do that, continue to learn and gain and build that momentum. And Daniel is going to talk about how that comes together with an offering that there's no match for it in the industry because it's custom and purpose built for the space. So that combination of breadth, depth and focus uniquely positions us, unlike any other company in the IoT space, to go capture this growth in this market that is starting to accelerate. I've done a bad job in my slides. I didn't realize it was not -- so same things, right, that I just talked to, breadth, depth and focus. And the point being, this combination is incredibly powerful and unique. So what I'm going to do now is take those 3 areas and try to make them real through the lens of real products and real platform because it's one thing to say those things, that breadth, depth and focus matter and they're important and we're great at it. But I want to try to walk through our current generation platform, which is Series 2. And I'm going to explain what the platform is and why it matters. Series 2 is, as I've said before, the combination of all those things coming together, right? It's the silicon, it's the software, it's all the tools and services and support that go with that. And this is a multiyear journey for us when we do a platform. But it started for Series 2 back about 5 years ago with the first product being released and we'll release multiple SoCs on a platform. so far, there's over a dozen. And not only are there more than a dozen wireless SoCs, there's over 2,000 software features that we've developed and brought to market on top of that silicon. And this platform is far from done. We're still in active development of new silicon and we'll continue to do that for multiple years. We're still in active development with software features, which will continue for many years. And at the same time, we'll continue to invest in this, not only in terms of new R&D but also in terms of capacity and ramps. We currently have 3 foundries on Series 2 across multiple geos. And that's because of the volumes associated with this platform that I'll talk about in a few minutes, which is super important. As we also mentioned that depth of performance that goes into these platforms, Daniel is going to go into how this platform brought industry-leading wireless performance, new-to-industry security, new-to-industry battery life, new-to-industry inference from an AI/ML perspective, those are all on a platform that will ramp into production for years and years to come. This platform won't peak in production for probably 5, 6, 7 years into the future. Just to give you a sense of its longevity and how it's being embraced by the end market. To help make it real in terms of the technologies that go on this platform, one thing we've realized it's difficult for our investors and the audience in general to understand our space because there's so many technologies we talk about. We talk about different ecosystems. We talk about different wireless protocols. Then we talk about different -- everything that goes together in this space. And very quickly, it becomes complicated. So what we tried to do is break it into some basics that help understand what's on this platform. First is sub gigahertz, which is our longest-standing position in IoT wireless technologies. Sub gigahertz is unique because it has some unique performance characteristics in terms of distance, performance. It's difficult to develop. But once you have the solution, it's quite useful for our customers because of those unique characteristics. It also means there's less competition. There's not many companies in the world that can develop this technology and deploy it as broadly as we have. So we have the #1 market position, and we see it growing in its industry adoption because of those unique characteristics. Examples of protocols that would go on top of this would be there's many proprietary protocols that people use mostly in industrial environments, but we also use it for Wi-SUN, we use it for Z-Wave, we use it for Amazon Sidewalk. So a lot of different protocols go on top of sub gig, and it's great to see such a strong position getting pulled more broadly into the marketplace. Next is 15.4, which is the basis for both Zigbee and Thread. And if you haven't heard of these technologies, they matter because they were developed really specifically for the IoT. And what's most exciting right now is that we see Thread getting pulled into the broad market. And I'll talk more about that in a few minutes, but why does that matter? So we have the leading position in Thread technology and we see it going broad. And I mean going from IoT even to beyond the IoT. So that's important as well. So this was our first position, then we built the second position in 15.4 that both are going into broader adoption. And then we get to BLE. For anyone who follows us, over the last few years, we've been saying that we were increasing our focus and investment in BLE because we believed it was an important technology for our space. And it would be broadly used in our space, not only a stand-alone product but also integrated into other wireless technologies that we had. So we increased our focus there. And what -- I would never say that BLE is easy. It's not. But relative to these technologies, we found it easier and we found that we could take our expertise here and readily apply it to BLE with great success. So now after those years of investment, what we're seeing in BLE is it's the largest portion of our opportunity funnel. It's the fastest-growing in design wins and revenue right now, which is exciting to see. In fact, Brandon will share right now, BLE is growing 80% year-on-year, which is awesome for us to see and definitely represent strong share gains in the space, which is a great accomplishment by the team and proud of that growth. And then WiFi. So once we saw the progress we wanted to see in BLE, we added another front, which was WiFi. And the reason we added WiFi is WiFi is increasingly becoming more relevant in our space. But what you can't do if you're seeing a recurring theme, is take the existing WiFi products that are off the shelf that you might see in a handset or a PC and put those into an IoT application. Wrong performance, wrong battery life, wrong price points. You need to develop something custom, ground up for this market. So we have shifted and increased our investment into WiFi over the last few years, bought a company a few years ago, Redpine Signals that I think at the time had less than 200 people in India, and we've scaled that to over 700 people. And we're seeing great progress there with our first product that's a combination of Silicon Labs and Redpine is generally released in the market. And again, because it was developed for this space, it has industry-leading battery life, industry-leading power consumption that allows new-to-world performance and capabilities. And that device is getting an incredible reception. As we've shared, we had more opportunity on that first device than any device we'd ever launched at that -- when we were bringing a product to market. And those products are ramping as well. So right now, I think you'll see over 40% year-on-year growth in the WiFi space. So both of those areas are driving great revenue growth for us. And at the same time, we have the areas where we've historically had those positions getting pulled into the mainstream. So it's a really powerful combination. So we like what we see there. The last thing I'd say is we get asked a lot why all these technologies? Like it would be so much better if you just had 1 or 2 technologies. And trust me, it would be easier. But there's 2 reasons. The first is when you look at a market space and our customers, what you see is the opposite of one technology servicing in that space. What you see is customers needing multiple wireless technologies because each was developed for a specific reason, a specific purpose to do one thing or 2 things really well, and that's why they're all needed. And as the market grows and accelerates, we see the need for more of those technologies, not less. And the easiest thing to think about is a handset. As handsets grow in their adoption, you see more wireless technologies needed, not less. Our space is no different that as we see individual applications growing, they keep pulling in more technologies, not less. The other reason we do that is because of our value proposition as a company and that breadth that I talked about to offer all the key requisite technologies and ecosystems our customers need. One of our strengths is that we have everything they need in terms of technologies and ecosystems and not just the ones we want to offer or the ones that we have and tell them that's the answer for everything. If we're doing a good job, they don't need to work with anyone else, and they don't need to figure out how to make different technologies work together. We can do that for them. So that's why we do it. And as we've said for a long time, because that's part of our value proposition, if we see a technology that we need to add to our offering, we will do it. We will make or buy it. But we won't do it until we think it's going to be mainstream and relevant. And right now, the easiest way to think about it, when we look at things from an M&A perspective, we wouldn't be looking for technology additions or SAM expansion. We'd be looking to go deeper and faster into the markets we're in, not add new ones because we don't see another technology right now that we need to pull into our mainstream. But if we do, we will, and that's been a consistent commitment. So the last thing I'll say on Series 2 to help frame it is that combination of breadth has served us well. That performance I talked about, and you'll hear more from Daniel on, has served us well and that has allowed us to gain significant market share on this platform. That's what's allowed us to gain market share in metering. I think we talked about gas water and electric. It's what allowed us to gain market share in electronic shelf labels. It's what allowed us to gain so much market share in continuous glucose monitors and so many other applications. And to help make that real and frame it, we're going from 1 billion -- almost 1 billion units that we've shipped lifetime to date since we introduced the platform, and we've secured more than another 6 billion units that will ramp into production. So that speaks to the adoption and performance of this platform. And 2 things to please take away. One is we are far from done. As I said in the beginning, we're still introducing products. We're still developing products, and we're still winning significant business with this platform. And the other thing that -- probably the last point I'll make on this because it's underappreciated is the loyalty and stickiness of these platforms. The R&D reuse that comes from the platform approach is significant. And not only for us but for our customers. Increasingly, our customers are not looking for point solutions, one product at a time. They're picking a partner, they're picking a platform. And as part of that, they need something that gives them R&D reuse and efficiency. Because in some cases, they may have 2, 3 or 4 designs. In some cases, they have 10. Some cases, they have hundreds of designs. And when they use us for one, the next one is more efficient, the next one is more efficient and they can get that flywheel effect across multiple technologies and ecosystems. And to make it real, we were just looking the other day in preparation for this. If you look at our top 100 customers as a company, over the last 5 years, we have maintained more than 95% of them. Because once you get on this platform and if we do a good job as a partner, they stay. And there's tremendous loyalty and stickiness that comes from them. So we're proud about our progress here. It's moving in a great direction, but the worst thing we could do is get comfortable, right? It's so easy as a company when you say, okay, Series 2 is crushing it. It's becoming kind of the de facto standard in the space. Let's just keep doing Series 2 products. That's the instinct, right, when you have this type of momentum. But I'm proud of the team for doing something that's not easy and saying, okay, we'll continue investing in the platform and supporting it. But in parallel, how do we reinvent ourselves over again? How do we do this but even bigger? And that's what we call Series 3, which is our next-generation platform technology. And the way to think of Series 3 is, first of all, it's not a replacement for Series 2. It's a complement. So highly complementary in terms of next-gen performance capabilities and features. It's going to further increase our SAM. So just like Series 2 added kind of BLE and WiFi to our SAM, series 3 will take those even further, but also add significant SAM expansion in compute as well as AI inference. And as part of this, as you'd expect, we'll bring new-to-industry performance features and capabilities, just like we did in Series 2, things that we've shared will be post-quantum ready. It will be AI ready. It will provide memory architectures and scalability that are new to our space that we think will serve the industry incredibly well for software and AI that's going to be pushing the performance of our space. And something we did that is -- wasn't easy, it will be code compatible with Series 2 which is super important for our customers because if you're developing on Series 2, that means you can also bridge to Series 3 if and when you need that format. So the 2 platforms are highly complementary. And we're making great progress on Series 3 as well because what you'd expect is with the momentum in Series 2, it's hard to keep momentum in your next-gen platform. But what I'm really excited to share is that we've been sampling Series 3, we started last year, sampling key customers, and now we are ramping those customers to production. Not later this year, not someday, now those customers are ramping. So Series 3 is already ramping to production as well. And that combination is an awesome pairing of momentum and strength in Series 2, Series 3 bringing new-to-world capabilities, features and performance. And by the way, Series 3 will be, just like Series 2, a very long journey of multiple products, probably 2x the products of Series 3 that you'll see smaller ones, bigger ones and everything in between for years to come off this platform, but it's already in production. So the combination of these 2 things positions us incredibly well moving forward to help capture that market that we see accelerate. So let's shift and talk a little bit more about a couple of growth vectors within our end market that we believe Series 2 and Series 3 are incredibly well positioned to capture. The first is Matter. And I think Matter is tough, right, because people have heard about it forever, and it kind of goes through a hype cycle and then this valley of despair and everyone is like what happened to it? Where is it? What I'm excited to share is it's just as relevant and has more momentum than it's ever had. And I'm going to pause a little bit to explain why this is important for anyone who's not familiar. Matter represents an industry initiative with the purpose of accelerating adoption of edge devices or IoT devices. And this was led by Apple, Google, Amazon and Samsung, working with the semiconductor space to say, how can we make it easier to develop and deploy these technologies for consumers to adopt. And that's been a multiyear effort and initiative, and it's gaining momentum. And why that matters for us or why that's relevant for us is that it takes one of the technologies that has been our strength from almost the beginning, which is Thread, and pulls that technology into the mainstream. And let me help make that real. So what you see right now is Thread under the umbrella of Matter getting pulled into handsets, TVs, smart speakers, all sorts -- ISPs and all this infrastructure that it never existed in before. And what that does is it sets the backdrop for broad adoption in edge devices, those billions and billions of devices that we talk about. That's where we thrive. So that positions us incredibly well because of our strength in Thread, our strength in home in these end markets and to help make that real on how compelling this potential growth position is, that's one. I shared, I think, on one of our recent earnings calls, we've seen a rapid acceleration of design wins over the last couple of years in this space as a precursor to end market growth for edge devices, which is great. It's also why we've shared publicly, we were the largest source code provider as a semi company because we want this to succeed. In fact, we also had more certs in this space than any other company until they stopped sharing that information. But the point is we see Matter gaining relevance. You see Thread in products that it never existed for in, in the past, in companies it was never in, in the past. And that sets the foundation for broad edge adoption, and we're positioned to capture that. So this is a growth vector that we didn't have that we now have, and that's exciting. The other growth vector I'd like to talk about is artificial intelligence. And the reason is, I think we all know this is -- yes, definitely, there's a hype cycle here, but remove the noise and focus on the fundamentals and basic principles. This is most likely the biggest technology transition and transformation we'll experience in our lifetimes. And this will impact all of us, including Silicon Labs. And it impacts us in at least 3 ways. It impacts us at the enterprise level, at the market level and at the product level. And I'm going to focus today just on the market side and the product side. And the easiest, most simple takeaway here of what this means for us is that it's going to drive more edge devices and more content on those devices. That's the headline and the implication. And the reason why is, if you think about it from a market perspective, AI allows all these billions and billions of devices that are out there for that data to be harnessed, take an advantage of, it's a data pipe for AI to take advantage of. And it helps truly enable and utilize what all these devices are capable of doing in the marketplace as well. And as we see AI moving from data centers to the edge, and you see inference on these devices, they'll be capable of features and performance that was never imagined before. And this is early days in this market, but it's very real. We have production solutions for ML inference on our Series 2 products today, and they're being used by our customers real time. In fact, at Embedded World right now, our team is demonstrating how you can use our products and the ML cores or accelerators on our products to sense the RF in the environment for presence and occupancy detection. No other sensor technology, just our device sensing the RF in the room, which is completely awesome. So as we move forward, you're going to see all sorts of different enablement on our devices across all sorts of different use cases. Just quick examples. Think of audio, video and general sensing. In audio, think of wake word detection or wake words and commands. Think of it as monitoring livestock for illness and health issues. Think of listening to the audio for changes in sound on motors and the billions of motors out there from a preventive maintenance perspective. Same for hydro or fluid mechanics, listening for changes and being indicative of a change out there. These applications just keep coming for our products, and that's exciting. So what we see as potential here is, one, it's going to help our end market because it will enable not only taking advantage of the data coming from our devices, but it will have an appetite for additional data and more devices. And at the same time, the opportunity for more content on our devices as we put more dedicated cores and custom capabilities to take advantage of inference at the edge. And as you can imagine, just like any space, we have to develop specific performance and capability for our market for inference. We can't take an off-the-shelf solution and use it for our market. We've had to develop custom accelerators to offer the level of inference performance our customers need to allow battery-powered applications to take advantage of AI/ML at the edge. So this market presents another future tailwind, which is exciting, and we're incredibly well positioned to capture it. So if you take all these things in combination, One, that vision of being the undisputed leader in our space, we're making great progress towards it. Our end market is presenting incredible growth potential. We're well positioned in that market. We're already the largest company in the world dedicated to this space. We have that momentum with our current platform, while at the same time, our next platform is starting to take off. And all these growth vectors, whether it's BLE or WiFi or Matter or AI, all of these are coming together to give us a lift. And as I shared earlier, we've been winning designs at an accelerated rate, and those designs are now starting to ramp, which gives us the confidence that we've been talking about to say, look, we can't call the end market, but we can still drive secular growth moving forward, even if the end market doesn't show the recovery that we all want to see it driving out there. So this combination is powerful, and this is why we're excited about what the next few years hold. And the last thing I'll end on before I transition to Daniel. I've been with the company a little over 6 years now, and I can say with 100% just credibility and authenticity, I've never been more excited about our future. I've never seen us have more future growth potential. I've never seen us so well positioned for what's to come, and that's incredibly exciting. So I'm going to hand it over to Daniel, who can help make this all more real for everyone, and thank you for your time. I appreciate it.

That was awesome. Hi, everyone. My name is Daniel. I'm the CTO of Silicon Labs, and Matt did an excellent job teeing up a few things. Who are we? We're Silicon Labs. Why are we excited about all this IoT and then what does it all mean to us? Today, I'm going to focus a little bit on the how, how we make decisions, how we decide what to build and how we differentiate. But before diving into the IoT, I thought I would talk for a second about the 2 forces that are driving the IoT. The first is processors. We are almost swimming in them. They're all around us. MCUs have gone from rare to everywhere over about 30 years. At its peak, we were shipping about 15 billion of them into the market, we, the industry. And it's now the point where any application that can absorb an MCU has the barrier has just come down. The second is the Internet itself. Over the last 30 years, more than 5 billion people have come online, first with PCs and then mobile phones. And the build-out of this network has meant that you can -- it's virtually free to get data from anywhere to anywhere at any time. So you have all these processors sitting around with data just screaming to get off. You have the Internet with jockeying for data to come on. And if you can bring these 2 worlds together, you can unlock a tremendous amount of economic value. This is where silicon collapse comes in. So the first question we usually get is, okay, how are we going to do that? Well, this is where you see a lot of Matt talked about, it's going to be wirelessly. I think we can all agree that those billions and one day trillions of devices aren't going to have copper or fiber or anything like that running to them. It's going to be wireless. The second question is, well, what wireless is going to win. And the third usually, what's not really a question is go build that one and just do it really, really well. The reality is it's a multi-protocol wireless world. And Matt teed it up well. There's a lot of reasons these protocols exist, and they do a lot of different things. They power, they sense and they communicate. And a really good example of that kind of counter to why does the IoT need them is that you can see phones do today. This is the list of wireless protocols on latest iPhone, and it's increasing over time. And you can see it's like the most optimized product, wireless product that's ever been built. If you could collapse these things down, it would be happening now, but it's not. It's actually increasing as we go forward. So there's 3 primary tenets here. We're surrounded by processors, there's an Internet to hook into and it's going to be done in a multi-protocol fashion. Now we have to talk about our market and our customers and how we make those decisions. And there's really 2 factors more than any that influence how we do that. The first is that most of our customers, not all, but most are not IoT experts. They're not technology experts. They are experts in building their end products. They're experts in medicine, they're experts in logistics, they're experts in retail, they're experts in these kind of applications. They don't know how to keep up with wireless standards and Internet security and things like that. Ten years ago, these things weren't even connected and now they have to have cybersecurity on the back end, making sure they don't get hacked. It's been a big uplift. So we become a partner for them. We get to bring the technology to them, the trust, we get to tell them what's coming next. We get to represent their interest in all the alliances and standards bodies. We are doing that on their behalf. The second factor is that our products have to cater to a very wide range of applications, not measured in dozens or hundreds, but literally thousands. We expect our products to be able to sell into thousands and thousands of different types of applications. And that means we have to build a platform. This cannot be a series of ASICs. You see these platforms as Series 2, Series 3. And our customers have to go through an extreme constrained equation in all this. This is where purpose-built for embedded systems and purpose-built for IoT comes home because many of our competitors are retrofitting automotive technology into the IoT or cellular technology into the IoT or PC technology into the IoT, and it just doesn't fit this equation. Every penny, microwatt bit, everything matters on these devices. And so these are the 2 core tenets of how we bring the technology into the market, and when we look at what we do, we see it 3 ways: products, platform and technology. And Matt talked about depth today. I'm -- we're going to go a little deep on the tech. I am the CTO after all. I promise we'll come back up at the end here, but it's really important that you understand that the products are just the surface, tip of the iceberg, Series 1, Series 2, Series 3. Underneath that, we have to have a platform of components and underneath that, a set of technologies that support that platform. And we're going to go through all this. This is destruction for the rest of the talk. But on those technologies, I really want to point out, it's connect things together wirelessly. It's low-power compute, it's security, it's machine learning and AI. We've been very careful about choosing these 4 technologies above all. And it's important because we have to focus our investments at this company. We can't do everything. We've done some of these things before, and we can do them again if we have to. But right now, the biggest bang for the buck is to deliver gap value and differentiation on these 4. They are core to the application, number one, they span hardware and software. So when we talk about technology at Silicon, we're not talking just about the chip or the software or anything else. It's a whole platform. And when you think about it that way, you can do a lot of R&D that co-develops these things together to do things that no one else can. Third, and very importantly, all 4 of these benefit from Moore's Law. So we are not at the 2-nanometer front end. We are moving from 40 to 22 today, but we have a decade plus in front of us to add more value over time in these areas as we move down the nodes. And last but not least, we partner on all the other stuff. These embedded systems have a lot of other things inside them. It's not just a processor. We partner on FEMs, timing solutions, sensors, transducers, power management, all those kind of things. So we've got to be very careful about what we've focused in on so that we can deliver the most value to our customers. So let's talk tech for a second. It's not just important to deliver checkbox items to the customers. They're not going to buy our products for that. We have to deliver leading performance and be first. This is what they've come to expect. And I'm going to show kind of 4 data points. real concrete examples of this. This Is the most technical slide we're going to have in the presentation. First, on wireless, our goal is to have the lowest power, most robust and most diverse wireless portfolio on the market. One of the biggest indicators of great wireless that exercises everything from the antenna to the software is radio sensitivity, this is really how sensitive is your radio. How -- can you hear the weakest signals that are out there? And we have a plot here of that sensitivity. Down into the left is the best, is really good. And you see Bluetooth, WiFi and sub gigahertz proprietary applications. And they're going to be different because sub gig is longer range, lower data rate, you can get better sensitivities. Bluetooth is shorter range but higher data rates, it's going to have less sensitivity, and WiFi has higher power because it's bigger bandwidth. You just -- you need more power to drive that bandwidth. In every situation, our products are leading the market, Series 2, BG22, Series 3, FG22. Series 2, 917, the WiFi products are ramping now. And then Series 3 is going to increase that. And this is log plots here. This isn't 10% or 20% better. This is multiple factors better. So with our technology, we can drive a key care about not just across all the technologies, but we can do it really, really well. Second is low-power compute. Our products have to live on batteries for a very long time or they just have a fixed power budget even if it's on the line. Believe it or not, lighting applications have a lot of power constraints because when that bulb is off, that LED wirelessly connected bulb is off, it's still listening on the radio, and you have to have low power for that. So we have a performance metric we call Coremark, it's an industry standard run by EEMBC and it really represents how much of the raw compute you have in your application. And we'll talk more about CoreMark in a second. But the goal is to have high CoreMark and low power. And through generation after generation after generation, we are pushing that forefront down. We've been from Series 1 to Series 2 to Series 3. And many of our competitors aren't even wireless at all. Some of the best data points you see are pure play MCUs. We can bring that technology with the wireless, and it adds a lot of value. The third is on security. There is an industry standard called Platform Security Architecture. It was branded by Arm a long time ago, Arm PSA, and there are 3 levels, soon to be 4, in that platform. We were actually first in the market to certify, and we are first in the market to certify at the highest level back in 2020. So kind of core to Series 2 and core to many of our fastest-growing areas that Brandon is going to go through is that security muscle. Can you protect my device not just from the cloud, but even if you have physical access. We launched in Series 2 Platform Security 3, a PSA Level 3. In Series 3, we're going to 3 plus or 4, which is just being debuted now in the market. And the market has spent years just catching up to where we are, where we've been for more than 5 years. Last but certainly not least, maybe newest to the table is AI. We want to bring insights to our customers, insights that can make that product better and insights that can be viewed from the cloud. And this is a benchmark called MLPerf Tiny, and there's footnotes on where you can research all these if you want to go look. The goal is to make inference fast and low power. We do that. And again, these are log plots. You see a lot of data points here, taking a lot of energy, and we are the best wireless SoC in the market. Now in each data point here -- in each plot, you can see some data points that are off. You can see a BLE chip, way out here. Well, this guy doesn't do anything except that BLE. There's no MCU on it. There's no security. There's no AI. You can see some low-power MCUs without wireless. You can even see an AI chip down here that does nothing else. It's just a fixed-function AI. If you pick one vector, you can make something pretty optimized, but nobody has the combination of these things. And it's that combination that our customers look at. It's that combination that they build their products around. They don't pick fixed-point solutions anymore. So if you can deliver the value across all of these vectors and you can do it the right way, you've got a winning combo. But then you got to take that next step of how do you actually deliver those. It's in a platform. And this is where we really shine. We are able to do things no one else can on this. It's 4 components, the way we talk about it, silicon, software, tools and increasingly services that our customers are relying on. And when you adopt -- when our customers look at this, they see they can go fast time to market, they can get high reuse. And critically, they can get over the hurdles of product introduction. A lot of times for them, building a product on a bench, 2 or 3 things wirelessly talking to each other, anyone can do that. When you try to ramp this thing into millions or tens of millions or even more in the field, this is where performance breaks for most companies. We can do things that no one else can in large network testing. We have more data than anybody else on how these things operate at scale. We have more than 1 billion Series 2 and a whole bunch of Series 1 out there. From our perspective, we can also drive reuse. This is where we talk about 12 chips on Series 2 and growing. We don't have to redesign every single time. We have a platform of IP and chassis, we can spin these things out quickly, and we'll continue doing that. Software reuse is also massive on this. It is a differentiator and enabler that we have the same fundamental software running at the base of our chips that we can put different radio stack on, different applications, different security solutions on top of that and increasingly operating systems. So when you bring this platform out, you can drive it throughout the whole market into a wide variety of applications, and I want to hover on that one for a second because we put up a lot of diagrams like this, showing locks and power appliances and so on. But those things need different performance, different metrics. So I want to talk about this one for a second. When we stand back and look at the technology we have to deliver, there's a spectrum on every dimension, compute, connectivity and so on. And you're going to see a plot here of compute and connectivity and rated in CoreMark and raw bandwidth in that application. And there's multiple levels. There's extra small, very simple devices. Think about a key fob outthrew very big applications like computers and everything between. There's a whole smattering here. And it typically is a situation that the raw compute and the connectivity bandwidths are highly correlated. We rarely see a device that has very low data but massive compute or vice versa. They're highly correlated. This is where Moore's Law will come in, and this is the step from Series 2 to Series 3. Now in those applications, they run with different architectures. In the very, very high end, they're all multichip. You're going to have an AMD processor next to a MediaTek WiFi chip and a computer. At the very low end, they're integrated. The product is so constrained on cost or some dimension that it has driven a single-chip solution. Think about like a light switch or a key fob. There's really good examples. And then there's a middle ground where we see a mix of architectures. We see some that are single chip, we see some that are multichip and there's some that are moving between these 2 right now. On the software side, important line here around 3,000 CoreMark, is when you move away from real-time operating systems into classic, Linux, Android, iOS kind of operating systems. That's really important because we are a Cortex-M house. We do not go to the Cortex-A Linux land. That may be one day, maybe Series 4. We'll see. But for now, we are going to live south from a compute perspective of that line, but north of it from a connectivity. So this is how Series 2 covers that market. Series 2 is great at the small to medium SOC and wireless solutions, and it's a perfect fit for wireless coprocessors that dedicated wireless chip outthrew about handsets and tablets. Matt talks about Thread moving into an iPhone. Well, that's a combo chip from Broadcom. That's not a SiLabs ship. And with this, we've enabled a whole market. We've connected the whole market. We brought the Internet to those devices. So let's hover on Series 2 and first I can talk about what's in it. And there are some stats at the top. I'm not going to read them all here, but I'd like to note that we typically launch these generations of products every 5 or 6 years and we're able to tape out chips and bring new products to that market for even longer than that. These generations don't obsolete each other. They don't obsolete each other as you'll see in a second because they're not doing the same thing. They're not doing the same thing. So we got geometries, multi-fab, then on the far right, we've seen a move in Series 1 kind of era of bare metal designs. And bare metal is the most simple way of programming on our product. It's not an operating system at all. We've seen a transition from bare metal into more real-time operating system land, FreeRTOS, Zephyr, Micrium, those kind of names. And we've seen the IoT go from really rare and nice to have into more mainstream. If you're a customer going into a store to buy something or you're looking online, you can typically find a wirelessly enabled version of that thing now. It's not as rare as it once was. A really good example of what the customers have been doing in this space is something we all know it's a thermostat. And we've seen it move from an analog mercury-based dial on a wall through digitization, where we can get programmability, maybe a backlight, so we don't have to turn the light anymore. And then in an iconic product, thermostat. This is really when IoT became, I think, conscious to a lot of people. It was self-programming. It was smart. It saves you money on its own. But it didn't stop there. And our customers are now using Series 2 to build products that you see on the far right, that's an ecobee thermostat bringing more wireless technologies and a hell of a lot more functionality into it. And that trend is going to continue as we bring Series 3, and you'll see some examples of that later. So Series 2 covered this amount of compute in this bandwidth here. What is Series 3 going to do? How is it going to be additive? Why are we so excited about it? What's it going to do for our customers? What Series 3 is going to do the simplest way is going to bring the level of compute to attack the big middle of that market. It's going to bring the raw compute to have SoC single chip in a lot of these applications, whereas today, they're 2 chips, it's going to move down to 1. In addition, it's going to bring functionality at the high end on those wireless coprocessors that's missing today. And so not the whole market is going to integrate. About half will, half won't. Integration has been the story of our industry since its inception, but there are times when our customers don't want to integrate the MCU and the wireless together on one chip. They want to mix and match architectures. Maybe they have a standard connectivity solution they want to fan out across their whole portfolio. The ISAs from Arm and others move at a different pace than the next Bluetooth or next WiFi standard. So half the market will, we believe, half the market won't. We need that solution that it gets to the CoreMark, again, just to the threshold of Linux, we're not going to go there, but just to the threshold. And what we're seeing from a lot of customers that are using Linux in high-end -- in their high-end systems will actually want to come down. These products aren't supported very well. They built -- they grabbed it off the shelf a long time ago and there was nothing else. And I talked to a customer who I said, how much of that Linux are you really using in your security panel, they said, at its peak, maybe 5%. But it's a super expensive chip. It's a super expensive PCB. If you could just build something in Cortex, then I would use it, but go build it. That's Series 3. So what's inside? Well we bring a lot of the key features that the market is asking for now. Higher compute, more rich compute, asymmetric multiprocessing, virtual SoCs, higher data rates, higher bandwidth, new frequency bands. We're bringing in external memory interfaces that the operating systems are going to be adopting that you need for these kind of products, new post-quantum cryptography that's coming. We've selected our ciphers, we know which ones we're going to use. Whole host of features are going to come out. But what it means for our customers is a really good example here on the right. Lighting has been a kind of Pinnacle IoT application for a long time. There is clear ROI. There's clear and normal consumer demand for it. It thrives at scale. It needs a lot of features that evolve and increase over time and it needs cost to come down. This is where -- this is classic semiconductors. If you can -- whoever can do this best is going to get #1 in the market. What we've done over time is moved from a very clunky solution as everybody was pulling in the wireless chip into these markets into something that's so optimized, the wireless is just -- you put it in, you don't even think about it anymore. So these are 3 examples of real bulbs. Again, the goal is to move from something big to something simple over time. One of our customers on Series 1 just added wireless end. It was 3 PCBs. It was an MCU. It was gluing 2 software stacks together that didn't really fit or weren't meant to build together. And it was not a whole lot of functionality, added Zigbee on a bare metal design. With Series 2, we were able to optimize this. We're able to optimize this. It's a much cleaner, easy-to-manufacture design. One chip now instead of 2, this is a big deal for them and new functionality in the application. So it's not just taking old and making it lower cost, making it lower cost and higher feature at the same time. And with Series 3, we are now ramping 22 nanometers with our first customer in lighting. We've moved them to a single PCB, to an extremely low cost thing to manufacture, and we've integrated a lot of functionality at the same time. It's not just new wireless technology. It's not just new algorithms doing color processing on the LEDs as they age over time. It's not just more security coming in. We actually integrated the LED predrivers that come on to this thing. So their BoM goes down. They're able to crunch that down over time. No one else can do this. It's back to the heritage of this company in terms of differentiation through value add. At the same time, we have to understand that our customers need to fit in that constrained model. And when you're a lighting company back in 2015 saying the world is going to go wireless, you need a partner that can go from here to here to here. And over that time, we watched generation of competitor come and leave because they couldn't do it. And we're doing this in multiple markets. And Brandon is going to walk you through multiple instances of that. But I like this one. It's our first Series 3 chip, it's ramping now. Really importantly, I want to talk about the OS model. So the embedded markets, if you go back 20 years, 25 years, it was -- people were debating whether I should do C coding or Assembly, believe it or not. Assembly was more efficient. C was more efficient on memory you -- C was more efficient from a software developer perspective. Right now, the industry is going through the C bare metal or operating system transition. And over the life of Series 3, we are going to move squarely into operating systems. We can't wait. We want it to happen as fast as we can. We want our customers to break the bottleneck of software for their designs. In many cases, they are held up more by software than anything else. Putting a chip on these boards is not that hard anymore. It's not that hard anymore. The faster we can improve their software experience, the faster they can ship, the faster the market can take off. We've also seen the IoT is going to go from mainstream to mandatory. I think every application is going to ship with this connected ability. You're going to want to pre. You don't want to have to come later and retrofit your install for wireless. Whether you turn it on or not at the outset, maybe give me a final product SKU decision on the manufacturing line, but the functionality will be in these devices. It will be there because there's clear ROI for the customers to put it in. So I've been really excited to see AI come to the table. I saw it happening in cloud and automotive and then PCs and mobile. But AI is going to be the thing that fulfills the promise of the IoT and why it exists at all. Matt talked a lot about it's new to our customer base that they're shipping now, but I want to talk about why they're doing this. And there's really 2 reasons. First is we know that most inference globally is going to be run on device. You've seen what new models like DeepSeek can do out in the field. This is going to come all the way to the edge. Data center is not going to be the only place inference runs, I promise you. It's going to be run in the field. And there's clear reasons to do so. The clearest one is that most data is not that interesting. As these neural nets are running, they're classifying all the time, and it classifies just fine. They're trained pretty well. They work pretty well or our customers wouldn't put it in the field. So you don't need to fire up the radio, blast off a giant data packet, transverse it all the way through the Internet, store it in the cloud, secure it and do all the things you have to do just to decide Amazon delivered my box. You don't need to do that. Second is a lot of benefits for running it on device. It's more private, it's more secure, it's lower power. And frankly, we're starting to see its more efficient spectral use. The one thing we can't make more of, what's the old real estate outage, they don't make more land. You can't make more spectrum, and they're starting to get really crowded. Devices are going to want to transmit as little data as possible for a whole bunch of reasons, and it's good for everybody. So we have to have high spectral efficiency and AI is going to enable that. Second thing that our customers are watching is that edge nodes are going to provide the base data for next model improvements. So the models need to get better and better over time. The only way to do that is to have real-time data coming from the field, and you're going to need millions of devices out there. So there's a self-fulfilling prophesy that's about to happen. You can launch a product without a whole lot of devices in the field, but you can't innovate on the next generation of that model without those devices because you need those corner cases. Again, those corner cases where the classifier is only 50% sure if it saw Amazon or something else. So we're shipping AI now. We were first to market with wireless SoCs that had dedicated ML functionality. Here's a really simple example of a customer that put -- it's using our ML accelerator in a circuit breaker. So our ML is actually watching the currents that are flowing across that circuit determining whether it should trip or not. And we were able to displace a competitor's very expensive MCU with something that was lower cost, lower power, faster, speed matters in these circuit breakers and lower power. So not -- it's not often you bring a new technology to the table that kind of hits every single thing and improves all of these things all at once. We're going to see this come across hundreds of applications. For every ChatGPT interface, there's going to be thousands or tens of thousands of neural net implementations running on things like this in the field. So we're super excited about where that's going, and we're at the forefront today. So to recap here before I turn it over to Brandon and walk through customers, we have the premier platform for wireless embedded systems. No one else thinks about it this way. No one else has built it, and we're excited about what's coming next. We have generations of products that are driving additive functionality, not cannibalistic functionality. We have high reuse and clear differentiation on our performance vectors. So Series 2 has a super long life. We're taping out chips. We will continue to do so for years and Series 3 expands that SAM as it covers more of the compute and adds more core functionality. And personally, I've been in this since 2012, since the company made that transition from the old INA and I was born in those businesses. I was a chip designer doing broadcast products for cell phones. I know where that came from. And I saw the IoT thing come and like, oh my God, this is going to change everything in embedded systems. We spent 13 years doing it already. We have multiple generations of products. We have a big building business, and we're engaged with all the right customers. I'm super excited to come back to the next Analyst Day, next 2 or 3 years and talk about what we've done since. And with that, I will turn it over to Brandon Tolany to walk through our customers.

Thanks, Daniel. Okay. Good morning. Yesterday, we had the distinct honor to ring the closing bell at NASDAQ and I don't think the company has ever been more welcome than us on that day to close that brutal trading day. But while we were there, we had employees that were with us that have been with the company since its inception. These folks have been there 20 years or more. And we had a dinner last night with them, and they shared some really meaningful stories about why us why this company is special. So I am honored to be here today, representing them and are a great company and some of them are in the room today. So Matt started with our vision and who we are. Daniel, how we do it, the very unique capabilities of our purpose-built embedded wireless platform. And I'm going to talk about our customers and our markets. For our customers, our diversity, the balance in our customer base and how we are attacking and gaining market share in that customer base. And the markets, we're going to talk about the sizing of the market and the growth rates within those markets as well. So I'll give you an overview of H&L and I&C, Home & Life, Industrial & Commercial, and the subsegments within each where we have above-market share, above-market growth rates and real excitement on some of those subsegments. Okay. Zooming out, I want to talk about, first of all, the overall market for the semiconductors. That's on the left-hand side. It's growing about 7% CAGR. This is all semiconductor. And if you look at -- that's '24 to '28, 7%, not an abnormal number. But if you look at 2000 to 2030, it's around a 5% compound annual growth rate for semiconductors in the total market. So it's a little bit of a growth cycle for the total market. In the middle are our specific markets in home, life, industrial and commercial, and it's our addressable market, our SAM. That's growing at about 2x the overall market. We've chosen the right faster-growing markets. But what we are really confident about and excited about is we're gaining share in those markets that are growing faster than the overall market. And I'll dive into it a little bit later, really narrowed focus on 2025. All or a vast majority of our growth in 2025 is going to be driven by new customer ramps that are underway right now, underpinned by designs we have won in the last couple of years. So overall, the market has grown around 7%. We're growing about 2x that in the markets that we're choosing. And for us as a company, we're gaining share in those markets and growing faster. Okay. Customers. The title here matters. Diverse, balanced and loyal. So customer diversity, I believe, is a real strength for a number of reasons. There is no customer at Silicon Labs in 2024 that is larger than 10%. In fact, our largest customer was just under 6% of our revenue. We have well over 100 customers shipping $1 million in 2024 and we have thousands and thousands of overall customers. We have built a true mass market wireless business, and Daniel went into why that's difficult. In the middle, it's about balance. No region is more than 36%. That's the Americas region for us, roughly 1/3, 1/3, 1/3, and that matters as well. China within the APAC region is around 15% of our revenue. So we're not over-indexed on China. There's still great opportunities for us there, but it's a nice balanced part of our overall regional mix. Customer diversity and balance matters, in particular when you go through things like the supply chain crisis. We don't have 1 or 2 or 5 customers that are dominating the supply chain, starving our other customers or dominating our road map and hijacking where we go with our products. We have a very broad set of markets that we're trying to address, and this diversity is a real strength. Something I'm extremely proud of is customer loyalty, the last point here. Matt mentioned it earlier, but looking at our customers from 2020, the top 100 customers, 95% of those customers are still our customers today. That is sticky. 2020 to 2025 in this industry was extraordinarily volatile. There was massive turnover in the customer base for our competitors and in the market. We held on to 95% of our top 100. A couple of those companies that we didn't hold on to actually went out of business. So we are extremely sticky, and it's based on the platform that Daniel described earlier. One more data point. 60% of our top 500 customers in 2024 have been with the company for 10 years or more. Once we are engaged with our customers, our platform is sticky. Okay. Opportunity funnel and design wins. The absolute focus of our customer engagement engine is ramping what we have already won and winning what we have already identified. That is extremely important. We have $17 billion, more than $17 billion in lifetime revenue in our open opportunity funnel. The open opportunity funnel for us is qualified, identified, understood. We have a solution for the customer. This is a well-qualified open opportunity funnel to be won. This is not including what we have already won. We always want more but we've already identified and qualified more than enough opportunity to drive our revenue and our share gain model. So the inner ring here is 2020. The outer ring is 2025. 15.4 sub-gig, we have leading market share. We've already described that. But the fastest-growing products for us are Bluetooth and WiFi. And you see it as an overall percentage of both our design wins and our funnel growing. Design wins first. Open opportunity funnel in Bluetooth and WiFi is nearly half of our $17 billion open opportunity funnel. Those products, we've really been dedicated to for 5 years or less, WiFi, 2 years or less. So this is momentum that we're seeing in our funnel. This also represents the largest SAM in the market. Bluetooth and WiFi are the largest markets we are going to gain share in the largest markets, and I'm going to give you a little more color on that later. So how do we do it? How do we engage in the market? For us, thousands and thousands of existing and potential customers. The most important thing in building a mass-market wireless business is to make it simple. These segments are very different. There's different protocols. The segments themselves are diverse, the requirements. There's a diverse level of customer expertise in wireless. Some customers in these segments are launching their first wireless product. Some customers have been with us, as I said, for more than 10 years. So we already have #1 market share at sub gig and 15.4, and we have market segments in both of those markets that will continue to grow fast. Bluetooth having emerged in the last few years for us, we have thousands of customers now today, and we are taking share in this market. WiFi. We have a few hundred customers, as we've just ramped and it's now over $2 billion of our open opportunity funnel in WiFi, just ramping new products in the last 12 to 24 months. So why this matters? The right side of the chart here, support cases. So our support infrastructure to build a mass-market wireless engine is the most complex part of what we do. The white line is support cases per $100,000 of revenue over time. The red line is our revenue. Support cases, obviously, we were driving that down sharply over the last 10 years. Support cases are speed bumps. There are delays for our customers. It's new code development that we need. It's new features that our customers are requiring. It is friction. If we reduce that friction, we increase the customer satisfaction, and we shorten their time to market. That is the recipe for mass-market wireless and this is scaling. This is how we built our mass-market wireless business. Okay. So we're dedicated to this embedded wireless business, and we have developed an outstanding selling motion to go attack this business. It's all we do. And it matters that it's all we do because our sales team and our field application engineers don't have to have an extraordinarily broad portfolio across various technologies supporting very different elements of the market. They're RF experts. Our sales team and our field application engineering team are absolutely RF experts. This is a moat around our business. So the mass market business was built on the bottom 2 layers of the pyramid on the right. You see the bottom layer is about 10% to 20% of the SAM is represented in the bottom layer. That's tens of thousands of customers. The middle is what we call our Focus 600 or T200 per region, the top 200 accounts per region. The mass market engine that we have in our global distribution network is predominantly focused along with our direct resources on the bottom 2 layers of this pyramid. Our direct resources focus on the red. And what we saw in the pandemic was a shift. Customers moved to supply chain engineering. And as they were doing supply chain engineering rather than new design development, we stepped back and we looked at the overall market and said, okay, we have this diverse base, but are there big sockets that we're missing out on? And we built a very specific competitive conquest program over the last couple of years. We called it our whale program, hence, the cute little whale on the chart. We identified 1/3 or more of the overall market in this segment. Top 30, top 40 accounts in the market represent a giant amount of the overall SAM. We already had some of them, but we went and attacked the ones we didn't have. We have won hundreds of millions of dollars already and that is ramping in this year in this conquest program. We have multiple billion dollars of open opportunity that was identified in our competitive conquest program. We are really excited, and this is why we know we are going to be gaining share. Okay. I want to talk about our segments, Home, Life, Industrial, Commercial. I'll give you a scope of the size of these markets and what the growth rates are. A company like ours can be focused on products in terms of how they divide their business units, it could be products or it can be technology. We are segment focused. And this is important. Having a segment focus allows -- each of these segments are very different. They have unique requirements and applications. It could be transmit range, power, software, even differing levels of customer wireless expertise. So there's different challenges. Having teams dedicated to the individual markets has allowed us to focus on the largest customers, the most important applications and really see trends emerging by market. So H, L, I and C, and I'll give you a subsegment within each where there's a highlight of a very fast-growing market where we're taking share. Home. Okay. The home subsegment, it's home security, it's automation, it's lighting, it's operator services. The entire home market is growing around 12% CAGR, approaching 2x the overall market. We have a strong business already today here. This is something that -- in our lighting and -- just all around the home, we're really strong home security as well. But we're seeing an inflection point in this market, and that is the emergence of matter. The installed base here, where we've got a leading 15.4 position in lighting. We have a very large open opportunity funnel for WiFi in lighting. And our installed base overall, 19 out of the top 20 ISPs, the internet service providers, leverage Silicon Labs in the Americas and Europe for their IoT wireless. This is the backbone. And now this incumbent position and the customer stickiness that I've already described has us really well positioned, but Matter and Thread are the major inflection point in the smart home. So Matter-Thread specifically. Smart home growing again about 12%. The Matter CAGR within the smart home is growing at 43% in this horizon. By the end of 2030, we see more than 5 billion Matter-enabled devices shipping. And obviously, most of this is in the end nodes. There are historic challenges developing in the home, silos, different ecosystems. You buy something at the store, you bring it home, it doesn't work with the app you want it to work with or you have a whole ton of apps that are running a whole different things at the end of the nodes in your home. That's complexity. They don't talk to each other. Matter will help solve this. Matter removes complexity about which device works with which app. Matter enables interoperability between devices and manufacturers. Matter will simplify setup. It will help companies build easier-to-use end products. It will help professional installers. It will help do-it-yourselfers, install products around the home. And the best part and the inflection point that we see is Matter has industry buy-in. I already talked about the ISPs in the previous chart. This is driven by massive ecosystem players, Apple, Amazon, Google, Samsung. All of them have aligned on this common vision to drive ease and adoption on the same platform. I'm not sure that's ever happened with these types of companies anywhere. So we're all already incumbent in this market. We have a full solution. We have Thread. We have WiFi, ICs, modules, development kits. We know how to make it easy for our customers to develop. We're the largest semiconductor code contributor to the Matter standard. We are absolutely leading in Matter over Thread certifications, and we have a massive smart home installed base. And the Matter infrastructure with the ISPs and these ecosystem guys is just building out now. And so we're really well positioned to drive above-market growth in this end node market for Matter. Okay. That's H. Let's move to L, Life, our Life business. Life segment is medical, appliances, wearables, personal entertainment, SAM of the overall market has grown around 11%. That's '24 to '28, faster than the overall market, but this is a segment -- it's also our largest segment overall, but this is a segment where our market share will far outpace the overall growth of the market. Talking about the market specifically, there are several factors driving growth in the Life market. Remote patient monitoring is a mega market for us, and I'll talk more about that in the next slide. But we're also seeing connectivity only expand across all of the diverse applications that I just listed, from toothbrushes, fitness trackers, TVs, appliances. We're expanding our market share here. And the clear reason that we continue to win here is we have best-in-class PSA Level 3 security today. We've had it since 2020. Daniel talked about it earlier. Very consistently, that is the reason customers choose us. There's a bunch of other things, but we are so clearly head and above over the last couple of years. This has been a massive driver in our design win portfolio. So it's a multiprotocol wireless world. Our -- we understand that as well as anybody. We built [Audio Gap]. So dialing in, in the life segment, one portion subsegment within life that we're extraordinarily excited about is the CGM market, the continuous glucose monitoring market. The overall market has grown about 11% CAGR. We're going to grow way faster with designs we've already won and we're ramping today. Hundreds of millions of people are living with diabetes today around the world. The International Diabetes Foundation estimates 600 million people will have diabetes by 2030. This is a global problem. In fact, the largest population of people with diabetes is in China. And in China, we have already won and are shipping millions of units with multiple customers into the Chinese market for CGM. The CGM products have obvious market drivers, not just the number of potential patients growing and consistently growing, but it has a massive convenience advantage. CGM products allow people to measure their glucose levels every few minutes without the need of a fingerprint. It sounds basic, but it's an extraordinarily important convenience and progress for patients in this market. A few years ago, in CGM, we had 0. This was not a business that we were even in. We have now won and are shipping to more than 10 customers globally, millions of units and ramp -- revenue ramping this year. Beyond that, we have an additional 60 customers in our open opportunity funnel specifically for CGM. This is a hyper growth market for us. We have a complete system solution. We've got an in-house BLE stack that matters. And when you're dealing with patient information, security obviously matters. And almost every one of these customers that has chosen us, the main reason to start is security. We're unique in the market. So that's our Home & Life business. That's H&L. And now I want to move on to I&C, Industrial & commercial. And I'll start with Industrial. The Industrial segment is growing at 19% compound annual growth rate from '24 to '28. That's almost 3x the overall market. Connecting these segments drives efficiency. It drives efficiency in monitoring, predictive maintenance, reliability and all of those things drive the obvious ROI for customers to deploy connectivity into the space. Additionally, all of these end nodes are kind of the windows to our customers' data. I mean, it's that type of data that becomes a pathway to AI that Daniel talked about at the edge. Connecting them gives our customers real-time access to this like crown jewels, the extraordinarily valuable data that they have in their systems. And while these markets in industrial are typically more mature, connectivity is really helping us to drive scalable efficiency gains, and that is what's driving the adoption rate so high in this cycle for industrial. So a strong legacy, more than 10 years shipping into the customers, big incumbency where we're really, really sticky. It also allows us to drive the influence -- and drive and influence the standards bodies and the ecosystems in this market to drive customers and products towards our technology. So that's Industrial. I want to narrow within the Industrial subsegments on smart metering. We're extremely excited about smart metering. The SAM in smart metering '24 to '28, that CAGR is 22%. It's a bit of a hypergrowth cycle for metering, and there's a number of reasons why. There's multiple refresh or new deployments that are underway simultaneously in the Americas, in India, Europe and Japan. We've already shipped hundreds of millions of units into the metering market. And the 1 billion unit number here is Silicon Labs units cumulatively will have shipped by 2030. There's many things driving this growth in the smart grid and metering. There's policies and incentives from governments around the world, promoting smart meters to modernize their grids. Smart meters help reduce energy use, they reduce waste and they lower costs. It's an obvious ROI. And why we win there? We're incumbent. We have been shipping into this metering market, hundreds of millions of units over many, many years. And that incumbency in our platform, we are really sticky. You've heard it from how we have hold on to our customers over time. So incumbency matters. Many of these deployments are decade-long engagements with individual customers. And you prove yourself over that time and you build an allegiance and a real partnership with your customer base. That's what this metering market is about for us. We have the broadest long-range sub-gigahertz portfolio in the market. And this market specifically in the first-generation deployments were transceivers. Now that market, we are seeing sub-gig, MCU, Bluetooth and WiFi into the end nodes. And WiFi is that window. It is the thing that pumps data to the cloud to allow our customers to evolve AI applications. So more richer content for us. Much richer content for us in these devices also is driving our share gains. Last bit on this, the unique global perspective that we've got right now. We have emerging markets. We have mature markets, and we have early adopters. In the more established markets in the United States and the United Kingdom, we're incumbent, strong market share. In fact, the largest smart grid deployment to date was the Great Britain smart energy deployment. That's still ongoing, and we have a dominant market share in that. But we're also winning and shipping today in the first installations in the mega market in India. That's 250 million units that have been announced for smart meters in India. We've got a strong position there. And additionally, in the upgrading kind of early adopters, the United States refresh and in Japan, we're winning. This is what's driving our above-market growth. Even in a very fast-growing hypergrowth segment in metering of 22% CAGR, we're gaining share. So that's metering within industrial. The last and also my other favorite business is Commercial within our I&C business. Commercial, so this is 14% compound annual growth rate, really diverse markets. Again, a very strong incumbent position. Some of the markets we're very excited about, commercial lighting, asset tracking and the enterprise access points. Number one market share in electronic shelf labels. That's our position today. Number one market share in enterprise access points, Bluetooth and WiFi. Being in the enterprise access point is great for end node application because if you have both sides of the link, it simplifies customer development and it actually shortens the time to market. So our position in the enterprise access point actually feeds our strength in the end nodes in some of these markets. There are several megatrends in commercial that's driving the growth overall. So -- I mean, the most simple way to look at it is connecting everything allows you to track everything as simple as that sounds. Where is the equipment in a hospital, where are the tools on a job site, how many people are in a room, what are they doing, what's -- how many people are in the total office space? All of this drives increased end node compute and connectivity, and this will drive additional value in our products at the end nodes as well as more intelligence and connectivity comes to the edge. So really well-positioned incumbency in commercial and great megatrends in the market driving above-market share gain. Dialing in Commercial, one of the many subsegments that we're very excited about is ESL, the electronic shelf label market. The SAM overall for ESL is growing nicely around 14%. And we've already shipped more than 300 million units cumulatively into this market. That's in the last few years. The demand for automation to improve efficiency and accuracy in customer experience drives this market, rising labor costs, the push for more sustainable retail practices, you're not printing labels and ink and paper and throwing them away as you're changing prices, tracking your inventory in the stores, engaging your customers in the stores, understanding how they move through the store, what's on the shelves, all of this drives the ROI for ESL. Our Bluetooth chips, again, are in many of our customers' enterprise access points in these systems. And that infrastructure of end node and access point can really simplify development and time to market. So we're already shipping large units into this market, 300 million units to date. We see this as a market in its early days. There is a path to 1 billion units or more per year in ESL. The penetration rate is still very low, and the ROI is very clear. We've got a complete system solution here. It's extremely low power, that matters in the market, application-optimized ICs for this market. We have very specific standardized software for this market with our Bluetooth ESL, Bluetooth ESL solutions. So hardware, software performance, incumbency, market mega growth, this is why we're really confident about ESL and our overall share gains. Okay. Let's narrow the focus on 2025. I know we're very forward-looking in these types of environments, but I want to -- Matt talked about his confidence in where we are in our growth story moving forward and his journey in the company. I've been here almost 10 years now. I'm with Daniel. I couldn't be more excited about where we are positioned because of the market inflection points that we're seeing. And it's a lot easier to be excited when the year you're in is looking good. So in 2025, the vast majority of our revenue growth in 2025 is from designs we have already won, and they are new designs that are ramping. We are not reliant upon market tailwinds to drive our growth in 2025. You see a small bar of recovery in the 2025 revenue growth. This isn't market recovery. This is customers that took 0 product from us in 2024 because of their inventory positions. It's not complete inventory destocking all over the market. It's not market tailwinds. It's just simply a customer, who didn't order anything in 2024, returning to business in 2025. But the vast majority of the growth we see in 2025 is on the back of new design wins that we are ramping now. That's market share gain. In the middle, Bluetooth, 2024 to 2025 comparison. We're going to grow our Bluetooth revenue in 2025, 80% year-on-year. The Bluetooth market in 2025 is not growing 80% year-on-year. This is competitive share gain. This is our competitive conquest program. This is our whale attack strategy. Our whale -- get the whales, you don't attack whales. This is our whale strategy. Bluetooth is growing at 80%. WiFi, another major growth vector for us. We've really invested in WiFi, as Daniel and Matt told you, over the last couple of years. We're seeing the returns. Our WiFi business will grow 40% year-on-year '25 versus '24. This is share gain. It's driven on new customer ramps. It's driven on new product ramps that we launched in the last year, and we've got a very robust road map to continue to attack this market. So we're not reliant on broad market recovery for our 2025 revenue growth plan. Okay. In summary, we're like massively focused on share gain. That's what we are doing in the market. That's what we've always been focused on. We've consistently outgrown the markets that we compete in, and we're going to continue to do so. We've got a diverse and loyal customer base, regionally balanced, large number of customers. We've targeted the right growth markets that are growing faster than the overall market, and we will grow faster than our growth markets. We've got a competitive conquest program that has already paid dividends and new design wins. We've got Bluetooth and WiFi that are growing fastest within our portfolio, but Matter and Thread are at an inflection point where we will see growth in 15.4 and WiFi as well. 2025, it's fueled by new customer design wins, not by market tailwinds. And longer term, ramping our existing design wins remains a focus to drive growth in '26 onward, but also securing design wins in the funnel that we've already identified and qualified. We know what's in front of us. We have a path to our over -- above market share gains, and we're very excited about what that means for us in the future. So with that, I will wrap it up. Thank you very much for your time, and I'm going to hand it over to Dean Butler, our CFO.

Great. Thanks, Brandon. For me, the investment thesis around Silicon Labs is very simple. There's going to be more connected devices in the future than there are today. The de facto connection standard is going to be wireless. There's no better investment to make than Silicon Labs in that wireless thesis. You heard from Brandon, we're winning, we're winning across the board in a lot of different markets, a lot of different applications. I just want to take a few minutes and talk about what does that mean financially, what are the guardrails that we put up for the company, and then how do we see the business evolving from here. First, before I get started, I just want to let everybody know, we did post a press release this morning that reaffirms our guidance for the current quarter. In addition to reaffirming, we actually narrowed our revenue range. I feel very good about the current quarter. It is the second substantial year-on-year growth that the company has seen from a top line revenue basis. Q4, which we just ended in the December quarter, we're up 90% year-on-year. Midpoint at Q1 at this guidance range implies up 67% year-on-year and up 7% quarter-on-quarter. Silicon Labs has already turned the corner. We're actually coming up. We're on the upswing into '25. I think that is ahead of many of our peers among semiconductors. So we feel very good about the current quarter. Now just talking a little bit about the cycle. Matt talked cycle, Brandon talked cycle. Look, we're not immune to cyclical demand inside of Silicon Labs and the semiconductor industry. We all know what happened, supply chain crunch, actually, people way over ordered, which led to inventory, which people way under ordered. But I would like to sort of point out the area over the curve and the area under the curve is right where we should be. Silicon Labs is positioned super well on our growth trajectory and coming out of the cycle, we are poised to grow into 2025. And that growth rate is actually the right trajectory. So here on '25 and '26, this is the mean consensus from the Street on where people think that Silicon Labs is going to land. It actually seems very well aligned to what you would expect and we are highly confident that this is the right trajectory that the company is on. 2025 is poised for growth. Inventory is no longer a headwind for Silicon Labs. Certainly, there are some small pockets. We do know there's some customer-specific things. We do still have inventory, but there's nothing necessarily holding us back. So these things are relatively minor at this point. We've already started growing again. Our distribution channel inventory is well under control at 56 days. Our target is actually 75 days. So inventory in the channel is very low. Our balance sheet inventory is poised for growth as well. We've got that well under control. Everything is teed up for a growth year ahead of us. Brandon talked about the number of design wins. We are teed up and ready to go with design wins in '25 and beyond. Silicon Labs has a long history of growth and share gain. This is the last 10 years of Silicon Labs business. The last chart I showed was sort of a zoom in of the over and the under of the supply chain. This has a longer time frame. We've been in this business a very long time. This is our IoT-related revenue. Over the last 10 years, we've had an average of 15% compounding annual growth rate. So say what you want about Silicon Labs and our growth trajectories, we have a well-established floor of double-digit growth rates. A lot of that is the markets that we target, but primarily, this is share gains. So the share gains through time that the team has done super well with amazing engineering and great sales teams supporting customers coming to market. 2025 is primarily going to be driven by new production ramps from customers we've already won. We're not relying on broad market recovery. We think we can continue to grow in 2025 without broad market. This is based on design wins. We do expect 2025, and just so everybody has it and what the consensus number is for the company, is actually above 20% growth rate. It's a bad compare. 2024 is so low. We will actually beat 20% growth rate from everything we note as of today's date. In 2025, we will be greater than 20%. But on a sustainable basis, it is likely to be 20%. So you should get 1 year above and then you still go back in the line. There's two ways that I think of the company's buildup of its growth rate. One is the systemic market that we're in. Brandon showed its 13%. It's somewhere between 10% and 15% depending on each individual end segment. Silicon Labs has a strong history of being at the high end of that, this 15% growth rate historically. We've historically won share. We're historically good in these fast-growing markets. These markets are here to stay. And in fact, many of them are actually accelerating as we look forward. So 15% sort of a backwards look. Actually, Brandon showed many of them are actually accelerating because of Matter's dynamics. There's an incremental 5% to 10% compounding growth rate on top of that. And that's specific to Silicon Labs. A lot of these are in design wins, CGMs, ESLs, smart meter, Matter inflection points. What wasn't shared was in the last 3 years, since we had an Analyst Day, 2022 to now, 2025, we have won $10 billion in design wins. It's a lifetime value. So average lifetime, 4 to 5 years. So you have to take $10 billion, divide it by 4, divided by 5. This is a multibillion-dollar design win pipeline that's coming to revenue now. So what do we focus on now, '25, '24, '26? It's taking that $10 billion and putting that into revenue. That is going to drive systemic continued high growth rates above market. On top of that, we have share gains in Bluetooth. Brandon just shared, we're going to grow Bluetooth revenue by 80% this year, year-over-year. We have new TAM expansion into WiFi. WiFi is growing 40% year-on-year. It's a very small base. WiFi is going to have a bigger impact when you start looking at '27, '28 and beyond. But it's already here and now. It's already growing. It's got a nice design win pipeline behind that. This nets me to the company has a sustainable revenue forecast growth rate of 15% to 25%. We're picking sort of the midpoint of that. We think systemically, we'll continue to grow 20%. That's our target. That's 3x semiconductors. Overall, semiconductor is somewhere between 6% and 7% growth rates. We expect Silicon Labs to grow 3x what the semiconductor average can be. Here's what it kind of looks like. So Brandon talked about design wins. He talked about 2025. When I look out in time, I think 90% of what we look ahead the next 3 or so years is things that we've already captured. The bottom chart, the gray, that's market. So if you just take, hey, your starting base 2024 baseline, you just grow kind of at market, 10% to 15% growth rate, that's going to continue to move. Look, that might be subject to some cyclicality, that's okay. The red is design wins that we have in hand. So we have the dominant amount of our growth is actually already won. This is $10 billion in lifetime design wins that are starting to feather in. We're not done there. Of course, every day, we're winning new designs, and that will actually add things on top, but 90% of it is probably either already won or existing business with Silicon Labs. We have very high confidence that this is going to play through. Look, maybe we'll get not every quarter perfectly right or every year perfectly right. We can't control customers' production schedules. However, at the highest aggregate level, the picture looks something like this. It's actually very promising. And this is not going to stop anytime soon. Series 3 is going to push this up again. Hey, whatever comes after Series 3, Series 4, Series 5, this is going to continue. There's going to be a more connected world than there is today in the future, and Silicon Labs is in the right place at the right time. Brandon talked about the diversity of the business. Okay? From a financial standpoint, a risk standpoint, this is very important to me as well. I want to have a balanced set of applications. I want to have a balanced set of products. Brandon showed the long tail of customers. This is about as diverse customer base as you can get and find. We're selling into all the geographies in a fairly balanced way. On the application mix between Industrial and Commercial, Home and Life, 60-40, great balance. On the product side, actually is super well balanced as well. Sub-gigahertz proprietary 15.4, you heard from Matt and Daniel. That was a lot of the beginning parts of the portfolio build. That today, 2024 revenue base, a little over 50% is actually coming from sub-gigahertz proprietary 15.4. Bluetooth and WiFi already make up 1/4 of the business and stand-alone MCUs is also another 1/4. And we don't talk about that a whole lot, but we do have stand-alone MCUs. We will sell them when customers desire them as sort of a stand-alone basis. It's a very good business. It's a very diverse business. As a CFO, that's exactly what you want. And when I look forward, like what is the business going to become? The business is evolving much more balanced in WiFi and Bluetooth. Right now, the open pipeline is about 45% WiFi and Bluetooth. There's still about 45% of the open pipeline is proprietary sub-gigahertz Matter. And then it's probably going to be about 10% of stand-alone MCUs. More and more of these things are getting integrated, we're winning at a faster rate in Bluetooth and WiFi. That's expanding that pie. When I look forward, this is likely the predominant mix of the portfolio going forward. Why is that happening? I mean you heard from all the other presenters, the company has just best-in-class across the board hardware, software, advanced feature sets that sometimes customers don't even know they need. Brandon talked about a lot of the wins coming from security. Actually, we put in security before customers even ask for it. It turns out it was a perfectly timed piece onto the market where we've gained outside share. That is going to continue. The team is already looking forward to next-generation security, looking for [Audio Gap] marketplaces and applications that can provide what Silicon Labs can provide. This business has a very unique setup and profile that very few of our competitors can claim. I think it makes Silicon Labs unique. I think Silicon Labs is special in a lot of rights to be able to service these thousands and thousands of customers and thousands of applications with a diverse set of products. It's very hard to do in semiconductors. Okay. Financial model. Look, what I would say -- I mean, every Analyst Day, the community always hopes for some great new targets on financial models. I think we have a great financial model existing today. And I don't think we have to modify it all that much. In fact, I stand up here today and I say, look, I think 20% growth rate is still the right growth rate. We're highly confident in that. And I think that's the right thing to drive the company forward on. Gross margins, we're sharpening the pencil, being a little more specific. I think going forward, gross margins are going to be in the 56% to 58% range. Q1, we just reiterated our guidance. Midpoint on that gross margin is 55% on a non-GAAP basis. So we still have a little bit to go, right, to evolve and get there. I think the feature set that we're developing, the security, AI capabilities, processing capability and next generation is all going to help us drive gross margins higher. Probably the biggest change that we're intending to make is to grow operating expenses about 1/3 the rate of revenue. So for simple math, if you're growing revenue about 20%, you should be growing operating expenses 1/3 of that, sort of close to 7%. If for some reason, you're growing up above that, operating expenses might grow up above, but we're intending to stay in this 1/3 rate of revenue range. Why? I truly believe 20% or better operating margin on a non-GAAP basis is the right target for the company as well. Today, we're not quite at the right scale to deliver that. With a 20% growth rate, I actually think you should be. And our intention is to drive toward that. It's taken a little bit of time. It takes revenue scale to get there, but that is our absolute intention, is to drive to 20% or better operating margin. Operating expenses are going to be key to that. I think what we've been investing in over the years are the right things. I don't think we need a whole lot of new investments. We're in the right envelope of spend. Now it's about converting that envelope of spend into direct revenue, which is happening today. It's a great business model. And it's a great business model because it combines high gross margins with high growth rates. You don't find that in many semiconductor companies. There's a few out there, but when I look at just the consensus estimate on the left-hand side of the non-GAAP gross margins for all of our sort of relevant peers that somehow play in our space, we're at or near the top of that list. This is a great high-value product margin profile. And these are great companies. Now if you said, well, I want great product value, good gross margins, and I would combine that with great growth rates, like how do I find growth. And if you just screen, hey, who's growing 2x semiconductors, you only come down to 4 companies. So 4 companies. And then if you sort of further screen and say, hey, I want highest margins and highest growth rates, really Silicon Labs is sort of top of that list. It is a phenomenal opportunity. I think it is not born from the last year of investment. It's not born from the last couple of years of investments. It's born from a decade of investments, and it's put us in the right place. Speaking of a decade of investment, here's the last 10 years of investments. What do we spend our operating expenses on? We spend it on the products. We spend it on the software. We spend it on the hardware. We spend it on the programs that actually are going to matter and create our devices more sticky in the application that we service. SG&A has been relatively flat in our spending. It's sort of bounced around a little bit, but it's pretty flat, right? We focus on how do we scale the expenses to go to market. Brandon talked about bringing down the cost of every support case from customers, how do we drive scale out of SG&A. Everything else goes to R&D. And I think over the years, we've put it in all the right places, so a lot of investment in Bluetooth. We're seeing that in market share gains, a lot of investment recently in WiFi. That's going to be a brand-new TAM expansion. We're already starting to ship in that, but that is actually going to be a good move going forward. Software tools, more and more of our customers are dependent on software to get to market. That is a low touch. Software is our ability to actually people service their own ability to help themselves design these things in. Matter, we've got a leading position in 15.4. That's setting us up into this environment where Matter is going to start going mainstream. Security, we've invested in security in the last few years. It's a competitive advantage. That's a definite moat that very few people can claim. And of course, Matt mentioned, I think, in his talk, we have multifab in -- on Series 2. That's going to continue to be the case in Series 3. These are the right investments for the company to make. And I think we've made the right investments at the right time that have generated the market share gains that we have today. And we're going to keep doing that. Just because we're growing OpEx 1/3 of the rate of revenue, doesn't mean we can't invest at the growth rate that we expect. We will have plenty to invest in to continue to build these moats going forward. Capital priorities. It's pretty clear. 1, 2, 3, 4. First, funding our organic growth path of 20% or higher, that we've not historically had a problem with. That's no problem. We continue to self-fund. Second priority is going to be M&A. And I'll talk about M&A in just a second. But M&A, we actually have a different filter than perhaps we had in the past. Third would be to maintain a healthy cash balance reserve. Our intention is to hold about 4 quarters OpEx on the balance sheet. And really, it's around, hey, it's kind of a tumultuous time, right? There's different things happening in the economy. When you have cash is king, liquidity on the balance sheet is sort of how we're going to play it in the near term. Finally, share buyback. In the absence of M&A, in the -- if we have a reasonable cash balance reserve, we intend to take excess cash flow, flow it back into the share buyback program. That hasn't been active for about the last year or so. We're probably going to come back to that, as excess cash flow comes, as growth rates continue to resume in '25 and '26. Now let me talk M&A for just a second. The company is built on M&A. The company did a fabulous job string of pearls on a bunch of technology start-ups that actually all integrated into the current platform that we have today. Wireless, MCUs, software, WiFi, Bluetooth, Zigbee, Z-Wave, all of these things make up what Silicon Labs is today. It's a fabulous story. But we probably have all the technology requisites of what we need to be successful. So we're changing our filter on what do we expect for M&A going forward. It's on the right-hand side, which is really around scale. I don't think you'll see us looking to acquire a bunch more start-ups that have some special technology. Sure, there could be 1 or 2 like little niche things out there. However, we're looking for scale like we have WiFi and Bluetooth and Zigbee and smart home and sub-gig. These sort of things, now we need to scale the business, either scale organically, maybe there's opportunity to scale inorganically, that's a filter. We want to find things that are accretive to our own growth rate. Don't find a whole lot of assets that are growing 20% or faster. But if there are things that can help us that can grow faster than 20%, that is absolutely in our wheelhouse. We want to find things that are accretive to earnings. We're not going to take on a whole bunch of OpEx that actually put us negative in earnings. We want to move things forward in scale, not backwards in scale. We want to continue to participate in our IoT marketplaces. We're good at what we do because we concentrate on what we do, and that's important, and we don't want to lose that. And finally, I don't think you'll see us look for a bunch of technology that's sort of not in our domain or it's not on our bill of materials of our customers that sort of takes us in a distracted viewpoint. I want to stay in our markets, in our technology lanes so that we can continue to focus on what we've done. And I think that's the key ingredient that Silicon Labs has done better than almost anyone, is the focus on IoT, the focus on connectivity. I think that makes us special. And I think that's actually what the market needs from semiconductor suppliers is focus, less conglomerates, more focus. Now there are things that, honestly [indiscernible] you said 15% to 25% growth rate. What about the 25% sort of side of the token. There are things that I truly believe we can outperform our 20% target. We haven't included these in our expectations or where we think things are headed. But these are absolutely real, and these can absolutely happen, and I think these are all accretive to where we're headed. I do think AI is coming to the edge. I think it's a question of when. Is that in the next 1 or 2 years? Does it take 3 or 4 years? But AI is coming to the edge. It's going to inflect the number of devices that are connected. That's only going to be good for Silicon Labs. More connected devices, more business for Silicon Labs. I think AI drives an acceleration. I think our TAM gets bigger because of it. The Matter adoption curve is happening. A lot of the infrastructure is there on whether it's gateways or cell phones or TVs. We play in the client side and a lot more client devices. We have won more Matter design wins in the last 24 months than we won in the prior 5 years. So the acceleration is happening on customer interest in Matter. If that adoption rate continues to accelerate and that comes to market, that's going to be great for Silicon Labs. Medical applications. Today, we're counting on our sort of roughly dozen or so medical customers that we've won so far. As Brandon said, we're engaged with 60. Now we're not counting those design wins. We don't know what's going to happen. I think our hit rate has been pretty good in this business. If we can win more in this vein, that's going to be another needle mover for Silicon Labs. WiFi, we're relatively early in WiFi. Sure, it's growing, but it's growing off a small base. This is -- '27, '28 really is where you're going to see sort of multi-hundred million dollar impacts. If that pulls in and we can get WiFi into the market faster, if we can get customers to production faster, that will accelerate our time line. And inside the next few years, WiFi could meaningfully move the needle, if those production schedules come in. Lastly, we live in a cyber insecure world. And I think more and more worry is going to be how are these cyber criminals attacking different surfaces. Your PC is pretty secure, cell phone sort of questionable, like that's sort of coming under more under attack with all these phishing campaigns. But to be honest, a lot of the IoT connected devices are not yet secure. I think there's going to be a growing trend. I think governments are going to start to get involved and push customers in this direction. If security becomes more and more important, I think that bodes super well for Silicon Labs and our capability. These are things that I think can meaningfully move the needle higher for us. And we're not including them in, but I honestly believe they're very real and they're a very strong opportunity for the company to even outperform our 3x semiconductor growth rate. All right. Let me just do a few closing thoughts, and we're going to move to Q&A after this. Just wrapping up, I hope that you take away we have very high confidence in our growth rate. Our high confidence on this 20% or 3x semiconductors is borne out of our track record. We have a track record of share gains. We have $10 billion in design wins. That's coming to market now. I feel very confident in where we're going. Look, the world is a little bit strange right now. The new cycle is very rapid. So can I get every single day right? No. But directionally, I have high confidence that this is what we're going to deliver. We're expanding our opportunity set as well. Like Silicon Labs is not sitting still. We haven't set still for 10 or 15 years. All of these IoT assets have been built along those time frames. Every few years, we expand our TAM. We're expanding our TAM with WiFi now. Matter is coming on the market. We won a bunch of medical applications. AI is going to expand it even further when that comes to the edge devices. Finally, I think this is actually best of both worlds. It's high margin, it's high growth. It's a great financial model. The company has executed super well on the design wins historically. I think it's set up for growth. And what we're here to sort of communicate today, we have high confidence in that growth. Silicon Labs is the embedded market leader, and we intend to stay that way. So with that, we're going to move to Q&A, and I'm going to invite the management team up and Giovanni is going to help emcee that.

Appreciate it. Thank you very much. And hopefully, that was helpful understanding why we're so excited about our market, why we're excited about our position within our market and the reason we have high confidence regarding our growth moving forward. So I'd like to open it up to questions. I saw the hand Tore, go ahead. Yes, first question to Tore.

Tore Svanberg from Stifel. Thank you so much for this informative Analyst Day. Let me start with a sort of bigger picture question, especially as it relates to your Series 1 going to Series 2 and Series 3. There's obviously a lot of new features that you're offering your customers. But you talked about that transition as being additive, not necessarily cannibalizing the previous generation. So could you just elaborate a little bit more on that? Because obviously, your customers are going to want more value. Will you able to actually increase your price? Or is this basically just more units because you're adding so many more features? So if you could share on that.

I think it would be good to hear from Daniel as well, but a couple of quick answers. I would expect each generation, you are adding more integration, more features, more capability as well as more SAM. I would expect ASP potential to increase, as you go forward. So that's the first quick answer. One thing that I think is helpful to understand why you don't need the next generation to service everything is each generation brings more integration features and capability. But some -- if you think of the applications that are out there, they represent the entire universe or spectrum of what's needed. So there are some applications right now that still need Series 1 and what that offers. There are some applications that need Series 2, and there are some that will need Series 3. And applications tend to move through the entire offering over time of what we offer. Daniel, anything you want to add?

Yes. Just kind of a technology-driven perspective here, Tore. When you box in a certain class of compute and bandwidth and cost, 40 is a really optimized node. It may not make sense. We don't necessarily get a cost down or an increase in battery life going to 22 or FinFET. If you're in a certain class of these parameters, it's really optimal. And if we took it to the next node, price might go up. There may not be enough digital to shrink down or the leakage may go up and it impact battery life. Battery life is a mix of leakage and active power and the radio power for our customers. It's a complicated equation. So in addition to what Matt said, not every application needs AI. Your light switch may not need AI running on it. But 40 is a very, very super optimized node for where we're going. We believe it will have a super long life.

Yes. And as my follow-up question, on the $10 billion design win, I mean, that's a pretty impressive number in the last few years. You're at $600 million now. I mean, why not be even more bullish with your growth forecast? Are you being conservative? I mean you said you don't need a recovery for -- to grow quite a bit this year. But yes -- I mean, to me, it seems like $10 billion. And you said it's lifetime revenue. I get that, right? But like lifetime is not going to be next 10 years. So why not be a little bit more excited about the growth above 20%?

Yes. One, Tore, I would say I hope you take away that we are excited about the growth. $10 billion is an incredible number of design wins. And it's a lifetime number. As you mentioned, it's -- 4 to 5 years is kind of the average lifetime. So that puts you in, call it, a mathematically average of $2 billion to $2.5 billion sort of run rate on an annual basis. The way that -- at least I philosophically think of these things are giving yourself a headroom, right? Hey, look, you can't always predict that everybody's forecast is going to come out, right, that, hey, their lifetime instead of being 5 years, maybe that customer is 4 years and the guy that's 6 years, maybe he's 7 years, like things change. And so we want to give ourselves some headroom on how we model and make our commitments to the outside world. If it all comes true, we'll probably beat. However, I think the prudent thing to do is to give yourself a little bit of headroom on derating and hence, our 20% growth rate, which would land you a little bit south of that $2 billion to $2.5 billion number.

Not everything always comes together the way you want, although it would be super cool, but it is what gives us confidence to say we'll still drive great growth even if we don't see a broad market recovery. So hopefully, that helps.

Great. Next question from Chris.

Chris Rolland, Susquehanna. Thanks so much for the day. I really appreciate it. And this question is for Dean. Thanks for the long-term model. The 20% top line was certainly impressive. The other one was the 1/3 OpEx fall-through, I thought. And if you're growing at 20% and only 1/3 are dropping down, I think, you surpassed your 20% op margin like early '28 or something. And it accelerates really quickly from there in the outer years. So in '28 and beyond, do you expect to accelerate op margin to 25% and then eventually 30% with that kind of revenue growth? Or are you planning to take OpEx up? What might the structure look like, as the company matures more?

Yes. It's a good question, Chris. It's really a matter of scale. And I think that's sort of what you're alluding to. Out to '28 at this sort of 1/3 rate of revenue, you do get to this sort of 20% number by that point in time, sort of depending on how you do your math. Look, our goal today is to say, look, we are investing in sort of all the right things. We don't need to invest substantially more to sort of capture the market that we're going after. We want to accelerate our time to get to the 20% operating margin level. Out beyond that, when you're sort of doing $2 billion, $3 billion, if Tore's question is right, hey, that full $10 billion comes through, I do think you actually reset your targets higher. When you look across the semiconductor landscape, there are sort of tiers of operating margins at certain scale. I think at this point, we're trying to execute on our $10 billion sort of coming into revenue in sort of that next couple of years. Beyond that, we're not making a commitment today, but I do think an expectation would be looking at tiering of the industry and sort of matching back to industry on sort of what comes next at the next scale level.

Yes. Great. Great answer. Maybe as a follow-up around the $10 billion, could you perhaps talk about instead of design wins, talk about actual bookings, backlog, what kind of visibility this gives you? And then lastly, if these are 4- or 5-year commitments, why not convert to an LTSA approach with long-term visibility? Or do you just think no one really holds to them anyway, and it's not very important. But yes, your thoughts on that would be great.

I'll do a couple of quick things on that, and then please add. I think no changes. We reaffirmed our guidance, and we've been very consistent. We've seen consistent improving on bookings, and that's continuing. So we're encouraged by that. Visibility continues to be lower than we'd want ideally, but enough to give us the confidence to reaffirm the guidance that we have. I think in terms of the LTSAs and that kind of stuff, I'm not sure that, that helps -- that it changes. Demand is demand and you can't force demand. So we went through our last crisis with outputting those in place. And I'm not sure it served the industry well. I think it's just distorted the reality of what the industry is actually doing in real consumption. So we have great relationships with our customers and suppliers, and I don't think we need to change that is the quick answer.

Yes. Maybe just a little bit on just near term. Bookings are good, as Matt said, returning every day actually getting sort of better and better, the sort of fits and starts. But a lot of sort of the near-term visibility is around some of these production schedules that we're getting forecast from customers from these new production items. And that is bookings plus sort of new production schedules.

Okay. Next question from Joe.

Great. Joe Moore from Morgan Stanley. M&A conversation, I guess you guys have been very focused. You've actually divested connectivity businesses that weren't central and kind of now you're talking about scale. Like why pursue scale when you have $10 billion design win pipeline? And just how focused does it need to be? How much aligned to the IoT kind of mission does it have to have?

So a quick answer is everything we've divested was noncore to the wireless focus, IoT focus. And our ambition is to be the undisputed leader in this space, and we see tons of opportunity in the space that we're in. So we'll go as fast as we can organically. And as you've seen, we're doing pretty good at that. We feel good about what we're winning. We feel good about the path. But if we see an opportunity for M&A to allow us to step function and go even faster organic plus, we'll do it. But we're not looking to do anything that would distract from that focus, that vision and that opportunity that we have. We know our space. We understand our space, and we'll go as fast as we can organically. And if we can go even faster with acquisition, that's what we're talking about.

I would just add just a little bit, Joe, is the other perspective that we have is this IoT space, thousands of applications, lots of suppliers, MCUs, wireless, et cetera. I do think if you play the ball forward, this does eventually consolidate. And of course, we want to be part of that as sort of having this great leadership position and organic growth, but you look at CPUs consolidated, networking consolidated, memory consolidated. Eventually, I think this path sort of continues that route. And we're not blind to that, and I think that's our perspective.

How about we take a question in the side of the room with Quinn?

[indiscernible] with your products where you could monetize that either through higher ASPs on the sale of the bundled solution? Or is there an AI model almost separate opportunity beyond the hardware?

Yes. That's an important point. I'll do a quick first answer and encourage the team to feel free to add. We didn't really talk about that, but that's a really important part of our strategy around the space. So just like in wireless, we've had to support many different protocols and ecosystems with industry-leading hardware supporting that. We see the AI space is very similar. We already have industry-leading performance in Series 2 for AI. We're going to do the same with Series 3. And right now, this AI space is moving so quick. We think the wrong thing to do is try to lock customers into a complete offering right now. If you're in our customers' shoes, they're struggling to keep up with the pace of movement here. They want flexibility, they want future proofness, and they want the ability to work with different ecosystems depending on how things work out. So for us, we've set ourselves up to be able to work with all the major players in the space. So we work with whether it's NVIDIA, Microsoft. We work with Databricks, Snowflake, all the major solutions out there, which -- if you put yourself in the customer's shoes, that's what they want. They want to have a leading solution that gives them performance and a road map, but not get locked in yet because things are too dynamic and fluid, and they want that flexibility. We think trying to -- what we see others do trying to lock in a customer, it's the wrong solution right now, and it's too early in this market to take that approach. So that's different, but we've learned this from wireless, and we think it will serve us well in AI.

Can I just add one thing? And the AI spectrum is very wide, all the way from LLMs to SLMs for the audience, that's small language models down to that circuit breaker that you saw right there. And what we're seeing right now is that the biggest challenges our customers facing aren't actually the models themselves, it's data flow within the processor. And that's kind of where we're adding value in terms of like we're going to have industry normal math primitives to execute these workloads, and they may target to the processor or to our accelerator. We got to get the data moving around. We got to get it moving around fast, and we got to get it moving around low power. So that's really where we're focusing our value add right now. The model ecosystem is evolving super fast. Nobody can keep up, really. And the math is -- there's some basic math down there that will have to be implemented. If you can architect the right system to get the data moving at the right pace, in the right places at the right time, you'll have a win. So that's where we really focused.

Got it. Helpful. And then just a follow-up for Dean. If I look at the 20% CAGR, it looks like Bluetooth and WiFi, at least on the pipeline slide, is going to account for a bigger part of the business over time. So I'm just wondering, generally speaking, if you look at the 20% growth rate, Bluetooth, WiFi probably 20% plus, sub-gigahertz matter, 20% minus. Is that the right way to be thinking about the growth rates by product bucket?

Yes. Directionally, Quinn, that's right. I would say you've got it right. Some of our highest growth markets, some of the end applications that Brandon sort of highlighted, those tend to be what are based on Bluetooth radios. WiFi will be additive after that. So from a pure mathematical standpoint, both Bluetooth and WiFi will be sort of above and the more historical sub-gigahertz will likely be below the 20%.

Let me just mention for those viewing on the webcast, there is a Q&A portal, and we can take questions online as well. But in the meantime, we'll take another question from Tore.

I had a question on Thread-Matter. As you mentioned, right, I mean, the Infrastructure is there. We know Matter is already in smart phones. We know it's in modems in your home. What are some of the things that you're locking -- looking for as far as seeing an accelerated adoption of the actual edge devices that are going to be connecting to those?

So quick answer is the first leading indicator is the design win acceleration, which you heard from Dean earlier, it's been pretty substantial and Brandon as well. Jake, do you want to add what you're seeing in Matter? And what's giving us confidence of that future growth? And what should we be looking for?

Yes. Thanks, Matt. So we are super, super excited about Matter. The value proposition that it adds, you can buy any part and you can take it to your home and it will work with any app. And where the market is at today, it's really in infrastructure building mode. So you talked a little bit about some of these routers and TVs and refrigerators, you can buy now that have that capability. That's all rolling out now. And as that rolls out, that will have more and more of that infrastructure that's available for people. So that way, when they go, they know that, hey, it will work. It will be there. And where we're going in Matter now is we're adding more and more device classes. So a lot of these design wins are new products, new switches, new locks, new dimmers, new cameras that all have that Matter capability that are out there. And that is going to be what it takes to kind of flip that over. When people can go into Home Depot or Lowe's or Leroy Merlin in Europe and look at a product and say, hey, I can buy this and I don't have to figure out how to go make it work, and I won't have to change my batteries every couple of weeks.

My last question is for you, Daniel. You hinted a little bit there with Series 4. I don't know how much you want to disclose there, but I know this company historically got away from the smart phone like a long, long time ago, and you've been pretty clear that you're going to get back in there. But given the AI at the edge trend, you have tons of IP now, right? So I mean -- can you just give us a preview for Series 4? And is there a possibility that maybe SLAB will go back into the phone at some point?

I can give you a preview -- phone, yes, yes, that's a better way to handle this. Yes, we see multigenerations in front of us, too. We're ramping Series 3 today. We've been investing in for a number of years. We can already see the contours of where Series 3 breaks and you need to move to FinFET, where our customers are breaking from this integrated SoC into a multichip kind of -- it's not chiplet territory. Our customers can't absorb that cost, but multichip. So we can see the contours of what that's going to look like. And frankly, it just doesn't make economic sense to build M-Class or Cortex M-class processors in FinFET. You go to A-Class, you go to Linux. There's a rich software ecosystem out there that's developed, we can plug into. So we can see the contours. It's not for a number of years. We're not ready to talk about it at the Analyst Day. And I'll let Matt answer the application question.

And the quick answer there, Tore, is that we're not focused on that. That's not part of our strategy. We always serve these things opportunistically. We get pulled into these things more than you think. Humbly, we're exceptionally good at what we do. And because of that, other markets want us in there. But we're really dedicated to being focused on maximizing this opportunity. And for lack of better term, driving a truck through this thing because we see the market, we have the position, and we want to make sure that we deliver that. So that's the best way I can answer it.

Take our next question from Peter.

It's Peter Peng from JPMorgan. Question on China. It's 15% of your business, and that region has been recovering at a slower pace. What are you assuming, I guess, relative to your corporate growth rate? And then this China local-for-local strategy, what is the go-to-market strategy there?

What was the last piece, Peter, sorry?

The go-to-market strategy in China.

Yes, sure. So quick answer for everyone is, we've said this for quite a while. We're not baking in or assuming a broad market recovery in China into our future growth plans. I put that under the category of other areas that have more growth potential for us. If China comes back stronger, faster than we anticipated, that's great. In terms of our go-to-market strategy, absolutely still support it. We still have strong coverage on the ground. We still have a remarkably strong design win progress on the ground in China as well. But we view it as opportunistic because of what's going on geopolitically, you just can't guarantee access and future growth there. So we'll maximize what we can do. We win on -- we never win on price. We never win on anything other than having features and capabilities that no one else can offer, which is fortunately what we trade on. And that's what wins us business in China, but you just can't bank on it, so it's not in the long-term plan.

Great. And I have a follow-up. On -- you provide some revenue mix by product technology. Maybe you can do that by end applications. And then just based on that $10 billion design win pipeline, how do you see that end application revenue mix evolving over time?

Yes. On an end application basis -- I mean, to a first order today, we have I&C, which is a reportable business and Home & Life as a reportable business. It's about 60-40 today. The design wins actually are pretty balanced across them. So I wouldn't expect to see any major shift towards the 60-40. At worst-case scenario, it's 50-50 sort of as a go-forward basis. And it's really just a matter of like how does certain applications sort of ramp faster or slower than others. So you will see sort of the go-forward expectation in the company between I&C and H&L somewhere between 60-40 to maybe 50-50, but still maintaining that sort of very nice balance between the two, Peter.

Great. We do have a question online from Srini Pajjuri. I'll read the question. How big is the contribution from glucose monitoring currently? And how do you generally think about the overall SAM opportunity as well as the competitive landscape in that space?

So I'll answer the first piece and hand it over to the team. So easiest way to think of CGM for us back in 2024, I just think of it this way, essentially no revenue. So we're really going from 0 effectively to ramping more than a handful -- more than a dozen customers, and we have 60 opportunities let up that we're working to convert. So that doesn't happen very often. It didn't happen quick. For honest, it was a multiyear focus, but it's really starting to come to fruition now. Jake, Brandon, feel free to comment on the opportunity, the landscape and what you see out there.

Yes. I'll just add, first of all, yes, Boss, that was right. The CGM market for us is new. It is the competitive landscape for us. We are winning. And in that landscape, we see the market growing to about 500 million units per year. That's substantial growth from where we are today. The opportunity pipeline we have is robust with more than 60 customers engaged, and we're shipping revenue today. So while it's early days, confident in share gain, confident in the growth that we're going to see this year and confident in that moving forward in the next few years as the market really scales. Jake, anything else?

Yes. The only other thing I would add is this has been -- you don't get into these types of applications overnight. It takes a lot of time to kind of build up the technology, build up that integration and make it work. And we're really excited about what we're seeing that bear into fruition now in terms of those first fruits. But it's exciting to see what it's going to become, right? This is just the start of a whole tranche of care applications moving from the hospital to the home. And that's going to have a massive impact, not only in terms of business opportunity for us, but in terms of what it does for the world, which makes it that much more awesome to work on. And it lends itself extremely well to our value proposition. Daniel talked about integration. He talked about security. He talked about interoperability. He talked about low power. This is what we do, and this is what that market wants. They want to be able to provide actionable insights, monitoring, drug delivery and all that in as unobtrusive of a way as possible and as low as cost as possible. We can -- it's really exciting to see that inflection of both of these areas and where that's going to go out in time.

And maybe, Giovanni, too, just to make sure we address the competitive piece directly. Sometimes there's a tendency to overcomplicate these things. If you humbly want a sense of our competitive position, we had no revenue in that space, and now we're quickly ramping revenue across multiple customers in that space. That's share gains, that speaks to competitive position and how well we're doing there.

Great. There was a question in the back.

Doug at SemiAnalysis. So two questions. How do we measure Matter adoption? Do you think as it becomes more mature, we could see some kind of like market share percent of design wins as it ramps? That would be like a really helpful KPI for us. I know some competitors do that, you guys do that as well. And then I'll have a follow-up after that.

So the question is kind of how do we measure?

Yes. How do you measure it, right? Because he has been talking about it, but like I want to -- like it would be really helpful just units, right, P&Q?

Yes. It's a -- quick answer, it's a little early for units in that space. But the pieces we can give that might be helpful data points, we've shared in the last couple of years, we've seen a rapid acceleration of design wins, which is a great future indicator, right? So we've seen more in the last 2 years than the prior 5. We've also shared our code contribution. Our certs were higher than industry by a meaningful amount. That's a great future indicator. We've shared the ISP data that I don't -- 19 out of the top 20 ISPs were using our solution. So what we're trying to do is it's too soon for units, but we're trying to give leading indicators. Once we start to see more maturity, there might be other things that we can provide that will be helpful. But what we're saying is we see a future potential and the leading indicators are supporting that.

Can you help me specifically like maybe a year or half? Is this like a '28 story? Is this a '26 story? Like when will we start to see some of these products in the market?

'26, '27, I think, is when you'll start to see the biggest impact.

Cool. And then my second question is, how are the ways you expect to continue to move up the stack from chips to solutions? Like a few tangible -- you guys mentioned that. A few tangible examples would be very helpful if you can share them. And then as you capture more of that value from 2 to 3 and 3 to 4, does that mean ASP increases? Like how does -- how do you guys monetize that?

Do you want to take that, Ross?

Sure. Yes. I think one of the things I've seen over the course of my career and being in charge of the Industrial business, early on, customers had a differentiation that their network was better than someone else's. So if you look at metering, all the major metering vendors would do their own proprietary stacks, be that Gridstream or OpenWay or whatever it is. What you've seen happen in the industry is now they're saying, "Hey, that's not really our value add anymore. There's some really great industry standards like Wi-SUN." So I don't have to become a networking expert now. I can focus on the higher value. So what we're seeing that's driven in that space is customers have gone from transceivers to SoCs, and we've been able to not only capture the value of that MCU, but then capture the value of the stack, all the large network testing we do on the stack, reference designs for border routers and things like that. I also see that happening in ESL, where now there's a Bluetooth ESL standard, where previously customers were buying a proprietary version of our chip rating their own stack. And with Bluetooth ESL, now we're adding on top of it our own stack. And we do see either stickiness or a lift in the ASPs from those. And I think those are 2 really concrete examples.

So we'll take another question that's coming online maybe for Ross. You spoke about Bluetooth channel sounding at CES this year. Can you talk a little bit more about that and what that's going to do to our markets?

Sure. So channel sounding is an area I'm really excited. And if you think about being aware, if you're a device that's out in the world, one of the things you want to be aware of is where am I. And channel sounding, what's -- for those who aren't aware, channel sounding is a technology in Bluetooth that lets you get sub-meter accuracy with relatively standard Bluetooth radios. UWB has a lot more, I would say, maybe awareness. But there are some challenges with UWB in terms of solution cost, power consumption and others. With Bluetooth, kind of the simple headline is take devices that are Bluetooth capable and now make them location aware. We have some wins in enterprise access points where those companies are turning on channel sounding for a very specific use case to map out where the access points are for controlling output power. But now once that infrastructure in place is in place, they're enabling that as a service for their customer. So what that will enable for us is these Bluetooth tags that are out in the world can now talk to that infrastructure and know where they're at. So the example is Brandon gave. If you're tracking a crash card in a hospital, if you're trying to track critical equipment at a construction site, Bluetooth channel sounding is one of the technologies that customers are really starting to evaluate, mainly because of the ubiquitous of Bluetooth and the low cost of doing with Bluetooth relative to UWP.

Any questions in the room? Okay. Well, I will turn it back to Matt then for a couple of closing comments.

Awesome. Thanks, Giovanni. So I'd just like to thank everyone, first of all, for the time and being here today. I'd like to thank the team who presented. You all did a great job of representing the company. So thank you. And just simple takeaway here. We talked about this a few times, right? Our vision is clear, what we're trying to accomplish in our space. We want to be the undisputed leader in our space. We're on a great path and seeing great progress towards making that happen and realizing that. And the easy way to think about it is our end market is getting exciting, right? There's multiple growth vectors in the market and our position within the market couldn't be better and just keeps getting stronger. And we have our own unique growth vectors within there. So that allows us to say we have high confidence in our ability to grow moving forward. And yes, as you heard Dean say, there's a lot of upside potential to that as well, but we also want to deliver to our commitments and do what we're saying we're going to do. So we're trying to set ourselves up and all of you for success. So hopefully, that comes through. And again, thank you, and appreciate the time. So thanks, everybody.

And for those of you here live, if you'd like to join us for lunch, there is going to be lunch provided outside, and the management team will be available as well. Thank you.

Thank you.