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Oct 28, 2023

Credo Q2 2024 Earnings Report

Reported revenue growth and mixed profitability due to share-based compensation.

Key Takeaways

Credo Technology Group reported a 25% quarter-over-quarter revenue growth, reaching $44.0 million. The company's GAAP net loss was $6.6 million, or $0.04 per share, while non-GAAP net income was $1.2 million, or $0.01 per share. The GAAP gross margin was 59.3%, and the non-GAAP gross margin was 59.9%.

Revenue reached $44.0 million, a 25% increase quarter-over-quarter.

GAAP gross margin was 59.3%, with a non-GAAP gross margin of 59.9%.

GAAP net loss was $6.6 million, while non-GAAP net income was $1.2 million.

Cash, cash equivalents, and short-term investments totaled $240.5 million.

Total Revenue
$44M
Previous year: $51.4M
-14.3%
EPS
$0.01
Previous year: $0.02
-50.0%
GAAP gross margin
59.3%
Previous year: 54.4%
+9.0%
Non-GAAP gross margin
59.9%
Previous year: 54.9%
+9.1%
Gross Profit
$26.1M
Previous year: $28M
-6.6%
Cash and Equivalents
$129M
Previous year: $191M
-32.3%
Free Cash Flow
$2.96M
Previous year: -$3.91M
-175.8%
Total Assets
$406M
Previous year: $414M
-2.0%

Credo

Credo

Credo Revenue by Segment

Credo Revenue by Geographic Location

Forward Guidance

Credo anticipates revenue between $51.0 million and $53.0 million for the next quarter. GAAP gross margin is expected to be between 58.8% and 60.8%, while non-GAAP gross margin is projected to be between 59.0% and 61.0%. GAAP operating expenses are estimated to be between $37.0 million and $39.0 million, and non-GAAP operating expenses are expected to be between $28.0 million and $30.0 million.

Positive Outlook

  • Revenue is expected to be between $51.0 million and $53.0 million
  • GAAP gross margin is expected to be between 58.8% and 60.8%
  • Non-GAAP gross margin is expected to be between 59.0% and 61.0%

Challenges Ahead

  • GAAP operating expenses are expected to be between $37.0 million and $39.0 million
  • Non-GAAP operating expenses are expected to be between $28.0 million and $30.0 million

Revenue & Expenses

Visualization of income flow from segment revenue to net income