Thank you for standing by, and welcome to the Garmin Limited Third Quarter 2024 conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. If you'd like to ask a question during this time, simply press Star, followed by the number one on your telephone keypad. If you would like to withdraw your question, again, press the Star one. Thank you. I'd now like to turn the call over to Teri Seck, Director of Investor Relations. You may begin. Good morning. We would like to welcome you to Garmin Ltd.'s Third Quarter 2024 earnings call. Please note that the earnings, press release, and related slides are available at Garmin's Investor Relations site on the internet at www.garmin.com/doc. An archive of the webcast and related transcripts will also be available on our website. This earnings call includes projections and other forward-looking statements regarding Garmin Ltd. and its business. Any statements regarding our future financial position, revenue, segment growth rates, earnings, gross margins, operating margins, future dividends or share purchases, market shares, product introductions, future demand for our products and plans and objectives are forward-looking statements. The forward-looking events and circumstances discussed in this earnings call may not occur in actual results and differ materially as a result of risk factors affecting Garmin. Information concerning these risk factors is contained in our Form 10-K filed with the Securities and Exchange Commission. Presenting on behalf of Garmin Ltd. this morning are Cliff Pemble, President and Chief Executive Officer, and Doug Boessen, Chief Financial Officer and Treasurer. At this time, I would like to turn the call over to Cliff Pemble. Thank you, Teri, and good morning, everyone. As announced earlier today, Garmin delivered another quarter of impressive financial results as our products resonate with customers and we leverage growth opportunities across market segments and geographies. Consolidated revenue increased 24% to $1.59 billion, a new third-quarter record, and we achieved record revenue in all five business segments. Gross margin expanded 300 basis points to 60%. Operating income increased 62% year over year, and operating margin expanded 640 basis points to 27.6%, reflecting both the higher gross margin as well as favorable operational leverage across the business. We reported pro forma EPS of $1.99, up 41% year over year. Some are wondering how we have consistently delivered strong results when the financial health of the consumer is the subject of intense debate. The straightforward answer is that there is no single profile of a Garmin customer, and therefore our results are not strictly correlated to broad generalizations of consumer behavior. Our business is highly diversified in many dimensions, from market segments to product categories within segments, each targeting different consumers. Additionally, our business is global in nature, allowing us to leverage growth opportunities wherever they exist. And finally, our products offer essential utility and unique differentiators that separate them from ordinary discretionary items. Another factor in our strong performance is that our products are clearly resonating with customers. For example, our market share in marine increased as measured by organic Garmin sales versus our competitors. Additionally, our market share in advanced wearables increased. According to the most recent IDC data covering shipments through June of 2024, Garmin's global market share in advanced wearables increased over 200 basis points year over year, and we were the only global brand experiencing growth in shipments. According to IDC, we are now the number two advanced wearable brand in Europe, and globally we are number three. These are remarkable outcomes considering the highly competitive and fragmented nature of this market. We believe this is a direct reflection of the strength of our products and brilliant execution by our global team. Given our strong performance for the first three quarters of the year, we are updating our full year 2024 guidance. We now anticipate revenue of approximately $6.12 billion and pro forma EPS of $6.85. Doug will discuss our financial results and outlook in greater detail in a few minutes, but first, I'll provide a few remarks on the performance of each business segment. Starting with fitness, revenue increased 31% to $464 million, with all categories contributing to growth, and notably, as our running and advanced wellness products resonate with customers. Gross margin was 61%, a 710 basis points improvement over the prior year driven by lower product costs We also hosted the annual Garmin Health Summit to recognize innovative digital health solutions that utilize Garmin products. Given the strong performance of the fitness segment, our Q2 outdoor revenue increased 21% to $527 million, driven primarily by adventure watches following the highly successful launch of the new Fenix 8 series. Gross margin was 68%, a 570 basis points improvement over the prior year quarter, and was favorably impacted by lower product costs and a higher mix of revenue from adventure watches. Operating income increased 53% year over year, and operating margin expanded 820 basis points to 40%, reflecting both higher gross margin and favorable operating leverage in the segment. During the quarter, we launched the highly anticipated Fenix 8 series, as well as the Enduro 3. The Fenix 8 series features a brilliant AMOLED display, cutting-edge features, a built-in speaker, microphone, and an LED flashlight across all models. The Enduro 3 weighs only 63 grams but offers rich features for endurance athletes, along with class-leading battery life up to 320 hours in GPS tracking mode and up to three months in smartwatch mode using built-in solar charging technology. We also launched the inReach Messenger Plus, our first satellite communicator to offer photo and voice messaging, expanding our customers' ability to stay in touch while roaming in areas of limited or non-existent cellular coverage. Given the strong performance of the outdoor segment in the third quarter and the positive response following the recent Fenix 8 series launch, we are raising our 2024 revenue growth estimate to 13%. Looking next at aviation, revenue increased 3% to $205 million, driven primarily by aftermarket product categories. Gross and operating margins were 75% and 22%, respectively, resulting in operating income of $44 million, a decrease of 10% year over year, driven by increased R&D spending to develop new products and certify new aircraft platforms. We recently announced our new G3000 Prime, which redefines the integrated flight deck experience with edge-to-edge all-touchscreens and a highly flexible open architecture that seamlessly adapts to serve a broad and dynamic market. Textron Aviation recently announced that the G3000 Prime will be included in the upcoming CJ4 Gen3 business jet. During the quarter, we announced an important new safety feature called Runway Occupancy Awareness, which uses ADS-B information to help reduce the risk of runway incursions and provide added confidence for pilots navigating busy and complex airports. Garmin is the first to bring Runway Occupancy Awareness to market. Also during the quarter, our co-founders, Dr. Min Kao and the late Gary Burrell were enshrined into the National Aviation Hall of Fame. This tremendous honor celebrates their pioneering work developing products that revolutionized the aviation industry. The Aviation segment has performed as expected so far this year, and we are maintaining our estimate of flat revenue for the full year 2024. Turning to Marine, revenue increased 22% to $222 million, primarily driven by new revenue from JL Audio. Excluding JL Audio, revenue increased approximately 7%, which is ahead of industry trends pointing to share gains in the market. Gross margin was 55%, a 290 basis points improvement over the prior year quarter, and was favorably impacted by lower product cost. Operating income increased 59% year over year, and operating margin expanded 390 basis points to 17%, reflecting both higher gross margin and favorable operating leverage in the segment. During the quarter, we received several awards, including being named the 2024 Manufacturer of the Year by the National Marine Electronics Association for the 10th consecutive year, along with six Product of Excellence awards for a total of 63 over the last decade. We were also recognized as the number one most innovative marine company for the second consecutive year by Soundings Trade Only, a leading publication for the recreational boating industry. Soundings Trade Only considered both the strength of our products as well as our culture and business practices, which makes this recognition especially meaningful to us. Last week, we announced the acquisition of Lumishore, a leader in marine LED lighting solutions, which broadens our product portfolio and enhances our ability to seamlessly integrate technologies on the boat. The marine segment has performed as expected so far this year, and we are maintaining our growth estimate of 15% for the full year 2024. Moving finally to the auto OEM segment, revenue increased 35% to $169 million, primarily driven by growth in domain controllers. Gross margin was 20%, and the operating loss narrowed to $1 million as efficiencies improved with higher sales volumes. During the quarter, we successfully launched the Garmin-designed domain controllers across all remaining BMW car lines. Our auto OEM segment has performed as expected so far this year. However, it has been widely reported that the outlook of major automakers is softening. With this in mind, we are lowering our full year 2024 revenue growth estimate to 40%. That concludes my remarks. Next, Doug will walk you through additional details on our financial results. Doug? Thanks, Cliff. Good morning, everyone. I begin by reviewing our third quarter financial results with comments on the balance sheet, cash flow statement, taxes, and updated guidance. We posted revenue of $1,586 million for the third quarter, representing a 24% increase year over year. Gross margin increased to 60%, 300 basis point increase due to lower product cost and favorable product mix in certain segments. Operating expenses as a percentage of sales was 32.4%, 350 basis point decrease. Operating income was $437 million, a 62% increase. Operating margin was 27.6%, a 640 basis point increase to achieve leverage on our strong sales and improved gross margins. Our GAAP EPS was $2.07, and pro forma EPS was $1.99. Next, we look at our third quarter revenue by segment and geography. During the third quarter, we achieved record revenue on a consolidated basis for each of our five segments. We achieved double-digit growth in four of our five segments, led by the auto OEM segment with 53% growth. The fitness, marine, and outdoor segments have 31%, 22%, and 21% growth, respectively. By geography, we achieved double-digit growth across all four regions, led by the EMEA region with 40% growth, followed by the APAC region with 18% growth, and the Americas region with 15% growth. Looking next to operating expenses, third quarter operating expense increased by $56 million for 12%. Research and development and SG&A each increased approximately $28 million. Year-over-year increases were primarily due to personnel-related expenses. Few highlights: the balance sheet, cash flow statement, and taxes. End of quarter with cash and marketable securities for approximately $3.5 billion. Accounts receivable increased both year-over-year and sequentially to $922 million, following strong sales the third quarter. Inventory balance increased year-over-year and sequentially to approximately $1.5 billion. During the third quarter of 2024, we generated free cash flow of $219 million, a $92 million decrease from the prior year quarter. Capital expenditures for third quarter 2024 were $39 million, approximately $7 million lower than the prior year quarter. We expect full year 2024 free cash flow to be approximately $1.1 billion, capital expenditures approximately $250 million. During the third quarter 2024, we paid dividends approximately $144 million and purchased $20 million of company stock. At quarter end, we had approximately $270 million remaining in the share purchase program, which is authorized through December 2026. Our effective tax rate was 17.9% compared to the pro forma effective tax rate of 7.2% in prior year quarter. Increase in effective tax rate is primarily due to the increase in blended Swiss limiting tax rate in response to global minimum tax requirements. Turning next to our full year guidance, estimate revenue approximately $6.12 billion compared to our previous guidance of $5.95 billion. We expect gross margin to be approximately 58.5%, which is higher than our previous guidance of 57% due to year-to-date performance. We expect an operating margin of approximately 24% compared to our previous guidance of 21.3%. Also, we expect a pro forma effective tax rate of 16.5%, which is higher than our previous guidance of 16% to projected full year income mix by tax jurisdiction. This results in expected pro forma earnings per share of approximately $6.85, an increase of $0.85 from the previous guidance of $6. This concludes our final remarks. Rob, could you please open the line for Q&A? Thank you. We will now begin the question-and-answer session. If you'd like to ask a question, please press star one in your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press star one again. Your first question comes from the line of Ben Bollin from Cleveland Research. Your line is open. Good morning, everyone. Thanks for taking the question. Cliff, I was hoping you could share a little thought on what you see as the underlying drivers within wearables. Could you speak to how you think about the growth of the installed base versus refresh and what you've seen with some of these recent launches? And then I have. Yeah. So, Ben, as we remarked in our prepared statements, the drivers in wearables is that we're a very unique player in the market. We offer a lot of different products across many different use cases. And so we're able to find ways to be successful across the whole market as our products really resonate with lifestyles and activities that our customers want to do. In terms of installed base, our current registration trends still point to the majority of our users being new to Garmin, which is a great thing. So we're seeing that grow, which is good. And then in terms of the recent launches, as I mentioned, the Fenix 8 series was very well received by the market, and we're continuing to fill demand for that product as it rolls out across all of our retail channels. And there were also a number of mentions on the stronger gross margins related to lower product costs. Could you provide some color on what it is that you're seeing or what you're doing to see those benefits? I think there's quite a few moving pieces in the product costs. One is pure materials costs, which we're definitely seeing some benefit there of the scale of our business across all of our segments. But also, we're getting some help from the Taiwan dollar and efficiencies in our factory operations as our scale has increased significantly. The last one for me, interested in any thoughts you have going into the holidays about how you view retailer commitments to inventory levels into the holidays, any thoughts on what it is that they're seeing versus prior years? Thanks. Retailers are telling us that they're eager to take in our products. They're planning for promotions. The retail channel appears to be very clean, especially as we transition some of our product lines like the Fenix 8. So I believe we're in a good position, and that's what we're hearing from our retail partners. Thank you. Your next question comes from a line of Erik Woodring from Morgan Stanley. Your line is open. Hey, guys. Thanks for taking my questions. Two, if I may. Just to start, Cliff, really impressive performance on fitness and outdoor, especially on the gross and operating margin side. You're posting margins that we haven't necessarily seen before for these segments. So just curious, from your perspective, if we put aside the cost downs that you alluded to, how much of this is your pricing strategy really flowing through to margins? And really, the question I'm getting at is, how sustainable are these margin levels as we think about moving on from some of these new product launches? Can you sustain these margins? Are these abnormally high? Could you just maybe help us unpack that? And then I just have a quick follow-up. Thank you. Yeah. I think it's probably difficult to put aside cost downs because that's obviously an important way that companies continue to reinforce their margin structure. So we're working very hard on that. And each new design, we try to make gains in terms of the efficiency of the designs as well as the component costs. But in terms of sustainability, I think that's one of those questions that everyone's going to have an opinion on. What we focus on is creating products with unique differentiators that allow us to have premium pricing and offer things that our competitors don't. So that's going to continue to be our recipe going forward. Okay. I appreciate that. And then just as a follow-up, obviously, you alluded to the Auto OEM market backdrop weakness. You had previously set that $800 million target for auto OEM in 2025, and just given your comments on OEM softness, does that target change at all? Does it change either the magnitude or the timing of that $800 million kind of goal? And then second to that, does it have any impact on any of the new OEM contracts that you've signed? Thanks. Yeah. For the next year, we really aren't ready to comment on that, although obviously, the trends in the car industry are softer than they used to be, so we'll look at that and provide an update when we introduce our 2025 outlook. In terms of impact on our new programs, I would say at this point, too early to say. I think some of those are rolling out beyond 2025. And so I would expect, as the economy evolves, as people believe that it will with lower interest rates, that it could get better and the outlook would improve. Got it. Thanks so much, Cliff. Your next question comes from a line of Ivan Feinseth from Tigris Financial Partners. Your line is open. All right. Thanks for taking my question. And congratulations on another great quarter. It was phenomenal. Thank you. With you. With the recent availability of some paid apps on the Connect IQ app platform, what kind of uptake are you seeing? And also, with the recent introduction of the expanded inReach, the connected subscriptions, and some of the downloads of, let's say, Messenger and some of the new features in Messenger as you kind of grow out this app ecosystem, what kind of uptake are you seeing? And at what point do you think you would start to give some indication as the revenue that's coming from some of these subscriptions? Yeah. Ivan, in terms of the paid apps and some of the things that you've seen recently on our store, we view these as incremental as they bring value to customers. And so those are enhancers to our overall revenue and margin structure as we roll more of that out. Expanded inReach, we've been excited about that, being able to have the higher bandwidth messaging and picture and voice sharing, which is great for people that go out in areas where cellular coverage is just really poor. So we expect that to be completely incremental in terms of the use case for the product, although it's early days and probably not a lot to share in terms of what the early results are so far. In terms of the Messenger specifically, it's a great product, like I said, very new. And so we're just now starting to see it roll out and being used by customers. And then what kind of reception are you seeing to the new introduction of your new dash cams? And if you see a lot of what's going on out there, there seems to be an increasing demand or people are finding that these are becoming a necessary item. What kind of growth potential do you see going forward on those? Yeah. The dash cam market is very mature, but the market did receive our new product releases very well. We've focused on providing dash cam functionality that's superior to others, including a heavy focus on quality optics and a broad range of use cases from daytime to nighttime. So I think the market appreciates that, and we've had a favorable response. All right. Thanks. Congratulations again. Thank you. Your next question comes from a line of Jordan Lyonnais from Bank of America. Your line is open. Hey, good morning. Thanks for taking the question. On the Aero side, are you guys seeing any impact from the strike and reramping up now that the strike is over for Textron? I think the strike probably had some small near-term effects as Textron was unable to deliver their planes in terms of aircraft. But I think they're working hard now to go back to normal. And so we don't anticipate any long-term effects from that. Got it. Okay. And then on the guidance raise from this quarter versus last quarter, because it was so strong, what is giving more confidence in the visibility that you guys have into 4Q now versus this past quarter? Well, I think as we move along through the year, of course, we get more confidence in the last quarter. A lot of the plans with retailers don't materialize until sometime in Q2 or Q3. And so with a more complete picture now, of course, we can be more confident in the fourth quarter. Got it. Thank you so much. Thank you. Your next question comes from a line of Noah Zatzkin from KeyBank Capital Markets. Your line is open. Hi. Thanks for taking my question. Maybe just a couple on the marine strength. I guess first, on Lumishore, have you quantified how large that business is in general? Yeah. I think that Lumishore and marine lighting in general is an incremental business to our marine segment, but an important one because it's another component on the boat that people want to have that we can provide and also integrate with our chartplotter systems around the boat. In terms of just the strong kind of market share gains implied by your growth, when you look at the industry, obviously, it's been challenging. What's your kind of marine industry in general looking into the kind of medium term? And then what kind of underpins confidence in continued market share gains there? Thanks. Yeah. I think in terms of the outlook, I think, again, this is somewhere where everyone will have an opinion. But it would seem to us that probably the market is fairly stable where it's at. Probably don't see a lot of additional moves to the upside or downside. And as the economy and especially the interest rate environment improves, then I think people will obviously feel better about purchasing boats. In terms of our ability to take market share, I think we've been thrilled with our ability to do that across the whole range, and especially as we enter new categories like our trolling motors. But in terms of sustainability to do that, again, it gets more and more difficult as the market share grows. And so we're concentrating on just creating great products and making sure that we can serve the customers that are out there. Thank you. Thank you. Your next question comes from a line of George Wang from Barclays. Your line is open. Oh, hey, guys. Thanks for taking my question. Just two quick ones. So, firstly, can you kind of double-click on the inventory kind of channel restocking? When I look at the balance sheet, inventory increased a lot sequentially to $1.5 billion. And can you talk about kind of sell-through versus sell-in dynamic, especially as we head into the December quarter kind of holiday season? Just kind of how much is sort of the difference versus kind of the true end-market demand? Well, I think to start on the first question, George, our inventory is not related to channel inventory in any way. We're managing our own inventory to prepare for the higher selling season that's coming up in Q4. And I think we've mentioned over a few calls now that our inventory levels, while they've been down, have probably been uncomfortably low. And so we've been working to improve those so that we can serve all the product needs. I think you saw in our results here in Q3 that having more inventory definitely was a good thing because we were able to serve all of the orders that came our way. In terms of sell-in versus sell-out, I would say that we have a very good ability to track customer activity and as they're buying our products and registering them. So we're very pleased with the sell-out so far, especially with the new products like the Fenix 8 and also the existing products that have been in the market a while, such as the Forerunner 265 and 965, as well as the Vivoactive and Venu series. All of them have very strong registration rates. Okay. Great. Just a quick follow-up. I guess in terms of margin profile for the auto OEM, given softer top-line outlook for the auto OEM, kind of some of your customers' lowering guidance, does it affect your medium-term outlook for the margin profile? Obviously, you are getting close to profitability on the income side for the auto OEM later this year. So just curious, any change in thinking in terms of the medium outlook for the gross margin and operating margin for the auto OEM segment? Yeah. I think for the most part, we would say the gross margin probably is not impacted, although product mix, depending on customer activity, could be a factor there. But in general, we've said that it would be in that high teens to 20% kind of range for gross margin. With lower sales, of course, comes the concern that you don't have the ability to cover all the expenses in the segment on a fully loaded basis because of the lower sales volume. But that's unfortunate, but something we can't really do anything about because the automakers are the ultimate customer for this product. And if their outlook is weakened, then, of course, we have to respond to that. Okay. Great. Thanks again. I'll go back to the queue. Thank you. That concludes our question and answer session. I will now turn the call back over to Teri Seck for some final closing remarks. Thank you all for joining the call. Doug and I are available for callbacks, and we hope you have a great rest of your day. Bye. This concludes today's conference call. Thank you for your participation. You may now disconnect.