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Apr 29, 2023

Credo Q4 2023 Earnings Report

Credo's Q4 2023 financial results were reported, showing a decrease in revenue compared to the previous year, but with strong gross margins.

Key Takeaways

Credo Technology Group Holding Ltd reported Q4 2023 revenue of $32.1 million, a 14.5% decrease year-over-year. GAAP gross margin was 57.9% and non-GAAP gross margin was 58.2%. The company experienced a GAAP net loss of $15.9 million and a non-GAAP net loss of $5.7 million.

Revenue decreased by 14.5% year over year, reaching $32.1 million.

GAAP gross margin was 57.9%, while non-GAAP gross margin reached 58.2%.

GAAP net loss amounted to $15.9 million, with a non-GAAP net loss of $5.7 million.

Cash and short-term investment balance ended at $217.8 million.

Total Revenue
$32.1M
Previous year: $37.5M
-14.5%
EPS
-$0.04
Previous year: $0.02
-300.0%
GAAP gross margin
57.9%
Non-GAAP gross margin
58.2%
Gross Profit
$18.6M
Previous year: $23.8M
-21.8%
Cash and Equivalents
$109M
Previous year: $259M
-58.1%
Free Cash Flow
-$15.7M
Previous year: -$7.29M
+115.9%
Total Assets
$397M
Previous year: $376M
+5.7%

Credo

Credo

Credo Revenue by Segment

Forward Guidance

Credo expects revenue between $33.0 million and $35.0 million for the first quarter of fiscal year 2024. GAAP gross margin is expected to be between 57.8% and 59.8%, and non-GAAP gross margin is expected to be between 58.0% and 60.0%. GAAP operating expenses are expected to be between $34.0 million and $36.0 million, and non-GAAP operating expenses are expected to be between $26.0 million and $28.0 million.

Positive Outlook

  • Revenue is expected to be between $33.0 million and $35.0 million
  • GAAP gross margin is expected to be between 57.8% and 59.8%
  • Non-GAAP gross margin is expected to be between 58.0% and 60.0%

Challenges Ahead

  • GAAP operating expenses are expected to be between $34.0 million and $36.0 million
  • Non-GAAP operating expenses are expected to be between $26.0 million and $28.0 million

Revenue & Expenses

Visualization of income flow from segment revenue to net income