Semtech Corporation (NASDAQ:SMTC) shares were trading more than 4% higher Thursday afternoon following the company’s reported Q4 results, with EPS of $0.70 coming in slightly better than the consensus estimate of $0.69. Revenue was $190.6 million, compared to the consensus estimate of $189.35 million.

The company provided its Q1/23 outlook, expecting revenue to range from $195 million to $205 million, above the consensus estimate of $192.3 million. LoRa found the next growth gear, accelerating to $41.7 million in Q4 finishing the year up 53% ($134 million), compared to the 40% target. LoRa revenue funnel is $950 million today, expected at $1.3 billion by the end of the year; 40-50% of funnel converts to revenue within 24 months. Picocell gateways grew 190% in 2022 reflecting smart home/campus network deployments led by Amazon and Helium.

Gross margin increased 70bps quarter-over-quarter to 64.5% and is expected to trend higher through 2023 on the favorable mix.