Dutch chipmaker NXP Semiconductors reported on January 30 its financial results for the fourth quarter and full year ended December 31, 2022.
"NXP delivered full-year 2022 revenue of US$13.21 billion, an increase of 19% year-on-year, with revenue increasing across all of our focus end-markets. In the fourth quarter, revenue was US$3.31 billion, an increase of 9% year-on-year, in line with the mid-point of our guidance range," said Kurt Sievers, NXP President and Chief Executive Officer. "2022 was a very good year for NXP, with strong execution resulting in record revenue, solid profit growth, and healthy free cash flow generation," said the NXP CEO..
Currently, NXP addresses four major end markets: automotive, Industrial & IoT, Communication Infrastructure, and Mobile. These four sectors respectively accounted for 52%, 21%, 15% and 12% of NXP revenues in 2022. Despite noting the softening demand environment faced by IoT and mobile businesses in the second half of 2022, Sievers remarked that NXP's automotive business "performed very well" from an end-market perspective.
In 2022, NXP recorded US$6.9 billion in revenue for its automotive products, a CAGR of 18% from the US$4.2 billion revenue in 2019. The company also expects a 9 - 14% CAGR in automotive-related revenue from 2021 to 2024, with approximately US$7.7 billion estimated for 2024. Accelerated growth drivers, including automotive radar systems, domain and zonal processors and electrification systems, will see an approximate CAGR of 20% in the same period, compared to the approximate CAGR of 6% for core NXP products with high relative market share.
Overall, for Q4, GAAP gross margin was 57.1%, and GAAP operating margin was 29.6%. Full-year GAAP gross margin was 56.9%, and GAAP operating margin was 28.8%.
Q4 cash flow from operations was US$1,076 million, with net capex investments of US$233 million, resulting in non-GAAP free cash flow of US$843 million. Full-year cash flow from operations was US$3,895 million, with net capex investments of US$1,061 million, resulting in non-GAAP free cash flow of US$2,834 million.
The company will host a conference call with the financial community on Tuesday, January 31, 2023 at 8:00 a.m. U.S. Eastern Standard Time (EST) to review the fourth quarter 2022 results in detail.