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Oct 29, 2022

Credo Q2 2023 Earnings Report

Reported financial results for the second quarter of fiscal year 2023, ended October 29, 2022.

Key Takeaways

Credo Technology Group Holding Ltd reported record revenue of $51.4 million, an increase of 94% year over year and 11% compared to the prior quarter. The company remains optimistic about its future prospects and expects to achieve at least $200 million in revenue for the full fiscal year.

Revenue of $51.4 million, grew by 11% quarter over quarter

GAAP gross margin of 54.4% and non-GAAP gross margin of 54.9%

GAAP net loss of $3.4 million and non-GAAP net income of $2.4 million

Ending cash and short-term investment balance of $240.5 million

Total Revenue
$51.4M
Previous year: $26.4M
+94.4%
EPS
$0.02
Previous year: -$0.06
-133.3%
GAAP gross margin
54.4%
Non-GAAP gross margin
54.9%
Gross Profit
$28M
Previous year: $16M
+75.2%
Cash and Equivalents
$191M
Previous year: $71M
+168.2%
Free Cash Flow
-$3.91M
Previous year: -$29.6M
-86.8%
Total Assets
$414M

Credo

Credo

Credo Revenue by Segment

Credo Revenue by Geographic Location

Forward Guidance

Revenue is expected to be between $54.0 million to $56.0 million, up 73% year over year at the midpoint. GAAP gross margin is expected to be between 58.7%-60.7% and non-GAAP gross margin is expected to be between 59.0%-61.0%. GAAP operating expenses are expected to be between $30.2 million to $32.2 million and non-GAAP operating expenses are expected to be between $25.0 million to $27.0 million

Positive Outlook

  • Revenue is expected to be between $54.0 million to $56.0 million
  • Revenue is expected to be up 73% year over year at the midpoint
  • GAAP gross margin is expected to be between 58.7%-60.7%
  • Non-GAAP gross margin is expected to be between 59.0%-61.0%
  • Non-GAAP operating expenses are expected to be between $25.0 million to $27.0 million

Challenges Ahead

  • GAAP operating expenses are expected to be between $30.2 million to $32.2 million

Revenue & Expenses

Visualization of income flow from segment revenue to net income