On this page of StockholderLetter.com we present the latest annual shareholder letter from ALLEGRO MICROSYSTEMS, INC. — ticker symbol ALGM. Reading current and past ALGM letters to shareholders can bring important insights into the investment thesis.
Fiscal 2024 Annual Report
D E A R S TA K E H O L D E R S, In scal year 2024, Allegro MicroSystems delivered terri c results achieving many records, including more than $1 billion in sales, a company rst, and representing 8% year-over-year growth. We also delivered GAAP EPS of $0.78 and record nonGAAP EPS of $1.35. Our strong performance was driven by continued share gains with world-leading magnetic sensing technology and strong execution in our power business. This, combined with a record level of design wins of over $1 billion and increasing new product velocity, reinforces our con dence in our ability to grow above market over the mid to long term, consistent with our target nancial model. Automotive sales grew by 17% year-over-year to more than 70% of total 2024 sales. E-Mobility, which includes the increasing electri cation of vehicles and higher adoption of ADAS features, continues to drive Allegro s above market growth, increasing 38% year-over-year, and accounting for more than half of 2024 design wins. Within xEV, battery electric vehicles are now 15% of global production and growing at 25%, while hybrids are 22% of global production and growing at 16%. Every OEM is working furiously to bring new xEV models to market. Allegro s content on both platforms is equally strong and much higher than that on ICE vehicles, so Allegro wins no matter which platform OEMs chose to invest in and grow. xEVs now represent approximately half of China auto sales, and Chinese OEMs are expanding their global share with economical and compelling products. Continuing to win with Chinese OEMs is increasingly important and driving our local investments close to our customers. I am pleased with the progress we are making and the continued strong support we have with Chinese OEMs and Tier 1s for Allegro s unique value proposition and our plans to increase our local presence. In the U.S., Europe and Asia, we continue to strengthen our relationships with global OEMs that are shaping the future of e-Mobility and select Industrial markets. Our magnetic sensing and power solutions are nding increasing resonance with customers in a broad range of applications in strategic growth areas, including e-Mobility, clean energy and automation. Emphasizing our ongoing commitment to innovation, since our IPO, we kicked off a record number of products in 2024, while introducing over thirty to the market. These products included initial solutions in our Power-Thru isolated gate driver portfolio, which leverage technology from our 2023 acquisition of Heydey Integrated Circuits. In scal year 2024, we delivered record sales of >$1B and Non-GAAP EPS of $1.35
We are applying a similar approach and intensity to our 2024 acquisition of Crocus, which further strengthens our magnetic sensing IC portfolio while extending our market leadership. Both the Allegro and Crocus TMR offerings are now combined under a common brand, XtremeSense , which represents the world s leading and most comprehensive portfolio, offering the highest accuracy, lowest power and highest sensitivity for the most demanding applications. Customer engagement on TMR has been high, and feedback has been encouraging. During 2024, we made signi cant strides in expanding our operational capabilities while improving delivery and quality experiences for our customers. We continued to selectively invest in R&D and sales to maximize growth in strategic focus areas, and we also took several actions to position our company for long-term growth. We are entering scal year 2025 with an optimized footprint, ready to serve our customers and deliver strong nancial performance. Another key 2024 milestone we achieved as a company was the release of our inaugural ESG report, which marked an important step in our ongoing ESG journey and highlighted the signi cant steps we have taken thus far towards building a more sustainable future. ESG is core to our corporate strategy and growth plans through the products we innovate and the applications they enable. We will continue to build on this progress over the coming years. I am very proud of what we have achieved over the past year, including record sales, market share gains, a record level design win pipeline, and a record number of product introductions. This would not have been possible without the terri c contributions made by the entire Allegro team, including their dedication in serving our customers, as well as the support of our partners and customers, whose commitment, innovation, and dedication have set us up for another strong year of collaboration and growth. I also thank you, our shareholders, for your continued investment in and support of Allegro on this journey. Vineet Nargolwala President and Chief Executive Officer Forward-looking statements disclaimer: The foregoing should be read in conjunction with our consolidated nancial statements and related notes and other information included elsewhere in this Annual Report. All statements other than statements of historical facts, including statements regarding our future results of operations and nancial position, business strategy, prospective products and the plans and objectives of management for future operations, may be forward-looking statements. These statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that could cause or contribute to those differences include, but are not limited to, those discussed in the sections titled Risk Factors and Forward-Looking Statements included elsewhere in this Annual Report.
 • shareholder letter icon 6/26/2024 Letter Continued (Full PDF)
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ALGM Shareholder/Stockholder Letter Transcript:

Fiscal 2024
Annual Report


D E A R S TA K E H O L D E R S,
In    scal year 2024, Allegro MicroSystems delivered terri   c results achieving many
records, including more than $1 billion in sales, a company    rst, and representing
8% year-over-year growth. We also delivered GAAP EPS of $0.78 and record nonGAAP EPS of $1.35. Our strong performance was driven by continued share gains
with world-leading magnetic sensing technology and strong execution in our power
business. This, combined with a record level of design wins of over $1 billion and
increasing new product velocity, reinforces our con   dence in our ability to grow
above market over the mid to long term, consistent with our target    nancial model.
Automotive sales grew by 17% year-over-year to more than 70% of total 2024 sales.
E-Mobility, which includes the increasing electri   cation of vehicles and higher adoption
of ADAS features, continues to drive Allegro   s above market growth, increasing 38%
year-over-year, and accounting for more than half of 2024 design wins.
Within xEV, battery electric vehicles are now 15% of global production and growing
at 25%, while hybrids are 22% of global production and growing at 16%. Every OEM
is working furiously to bring new xEV models to market. Allegro   s content on both
platforms is equally strong and much higher than that on ICE vehicles, so Allegro wins
no matter which platform OEMs chose to invest in and grow.
xEVs now represent approximately half of China auto sales, and Chinese OEMs are
expanding their global share with economical and compelling products. Continuing
to win with Chinese OEMs is increasingly important and driving our local investments
close to our customers. I am pleased with the progress we are making and the
continued strong support we have with Chinese OEMs and Tier 1s for Allegro   s unique
value proposition and our plans to increase our local presence.
In the U.S., Europe and Asia, we continue to strengthen our relationships with
global OEMs that are shaping the future of e-Mobility and select Industrial markets.
Our magnetic sensing and power solutions are    nding increasing resonance with
customers in a broad range of applications in strategic growth areas, including
e-Mobility, clean energy and automation.
Emphasizing our ongoing commitment to innovation, since our IPO, we kicked off a
record number of products in 2024, while introducing over thirty to the market. These
products included initial solutions in our Power-Thru isolated gate driver portfolio,
which leverage technology from our 2023 acquisition of Heydey Integrated Circuits.
In    scal year
2024, we
delivered record
sales of >$1B and
Non-GAAP EPS
of $1.35

We are applying a similar approach and intensity to our 2024 acquisition of Crocus, which further strengthens our
magnetic sensing IC portfolio while extending our market leadership. Both the Allegro and Crocus TMR offerings
are now combined under a common brand,    XtremeSense   ,    which represents the world   s leading and most
comprehensive portfolio, offering the highest accuracy, lowest power and highest sensitivity for the most demanding
applications. Customer engagement on TMR has been high, and feedback has been encouraging.
During 2024, we made signi   cant strides in expanding our operational capabilities while improving delivery and quality
experiences for our customers. We continued to selectively invest in R&D and sales to maximize growth in strategic focus
areas, and we also took several actions to position our company for long-term growth. We are entering    scal year 2025
with an optimized footprint, ready to serve our customers and deliver strong    nancial performance.
Another key 2024 milestone we achieved as a company was the release of our inaugural ESG report, which marked
an important step in our ongoing ESG journey and highlighted the signi   cant steps we have taken thus far towards
building a more sustainable future. ESG is core to our corporate strategy and growth plans through the products we
innovate and the applications they enable. We will continue to build on this progress over the coming years.
I am very proud of what we have achieved over the past year, including record sales, market share gains, a record level
design win pipeline, and a record number of product introductions. This would not have been possible without the
terri   c contributions made by the entire Allegro team, including their dedication in serving our customers, as well as
the support of our partners and customers, whose commitment, innovation, and dedication have set us up for another
strong year of collaboration and growth.
I also thank you, our shareholders, for your continued investment in and support of Allegro on this journey.
Vineet Nargolwala
President and Chief Executive Officer
Forward-looking statements disclaimer: The foregoing should be read in conjunction with our consolidated    nancial statements and related notes
and other information included elsewhere in this Annual Report. All statements other than statements of historical facts, including statements regarding
our future results of operations and    nancial position, business strategy, prospective products and the plans and objectives of management for future
operations, may be forward-looking statements. These statements involve known and unknown risks, uncertainties and other important factors that
may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed
or implied by the forward-looking statements. Factors that could cause or contribute to those differences include, but are not limited to, those discussed
in the sections titled    Risk Factors    and    Forward-Looking Statements    included elsewhere in this Annual Report.



shareholder letter icon 6/26/2024 Letter Continued (Full PDF)
 

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