Astera Labs Fiscal 4Q24 Financial Results

Summary:

Record quarterly revenue of $141.1 million, up 25% Q/Q and up 179% Y/Y
Fiscal 2024 record revenue of $396.3 million, up 242% vs. the prior year
Ramping across diverse set of customers and platforms with four product families in fiscal 2025

Astera Labs, Inc., in semiconductor-based connectivity solutions for cloud and AI infrastructure, announced preliminary financial results for the 4th quarter and full fiscal year 2024, ended December 31, 2024.

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“Astera Labs delivered strong Q4 results, with revenue growing 25% vs. the previous quarter, and capped off a stellar 2024 with 242% revenue growth Y/Y,” said Jitendra Mohan, CEO, Astera Labs. “The revenue growth in 2024 was largely driven by Aries PCIe Retimer products, with Taurus Smart Cable Modules for Ethernet coming in strongly in Q4. We expect 2025 to be a breakout year as we enter a new phase of growth driven by revenue from all four of our product families to support a diverse set of customers and platforms. This includes our flagship Scorpio Fabric products for head-node PCIe connectivity and backend AI accelerator scale-up clustering.“

Fourth Quarter of Fiscal 2024 Financial Highlights

GAAP Financial Results:

Revenue of $141.1 million, up 25% sequentially and up 179% Y/Y
GAAP gross margin of 74.0%
GAAP operating income of $0.1 million
GAAP operating margin of 0.1%
GAAP net income of $24.7 million
GAAP diluted net earnings per share of $0.14

Non-GAAP Financial Results (excluding the impact of stock-based compensation expense and the income tax effects of non-GAAP adjustments):

Non-GAAP gross margin of 74.1%
Non-GAAP operating income of $48.4 million
Non-GAAP operating margin of 34.3%
Non-GAAP net income of $66.5 million
Non-GAAP diluted earnings per share of $0.37

Full Year Fiscal 2024 Financial Highlights

GAAP Financial Results:

Revenue of $396.3 million, up 242% Y/Y
GAAP gross margin of 76.4%
GAAP operating loss of $116.1 million
GAAP operating margin of (29.3%)
GAAP net loss of $83.4 million
GAAP diluted net loss per share of $0.64

Non-GAAP and Non-GAAP Financial Results (excluding the impact of stock-based compensation expense and the income tax effects of non-GAAP adjustments):

Non-GAAP gross margin of 76.6%
Non-GAAP operating income of $119.6 million
Non-GAAP operating margin of 30.2%
Non-GAAP net income of $143.3 million
Pro forma non-GAAP diluted earnings per share of $0.84

Full Year Fiscal 2024 Business Highlights

Introduced new portfolio of Scorpio Smart Fabric Switches purpose-built for AI infrastructure at cloud-scale. The Scorpio Smart Fabric Switch family features two application-specific product lines with a multi-generational roadmap, including the P-Series for GPU-to-CPU/NIC/SSD PCIe Gen 6 connectivity and the X-Series for platform-specific, back-end AI accelerator clustering. Scorpio is currently shipping in pre-production quantities.
Joined the Ultra Accelerator Link Consortium as a promoting member on the board of directors. UALink technology will be used to enable efficient high-speed scale-up connectivity between AI accelerators within large and growing cluster sizes for AI workloads. Astera Labs is well positioned to contribute to this new and compelling industry initiative to develop and advance UALink technology.
Demonstrated the industry’s end-to-end PCIe optical connectivity link to provide extended reach for larger, disaggregated GPU clusters. PCIe over optics expands Astera Labs’ widely deployed and field-tested Aries family of Smart DSP retimers and Smart Cable Modules (SCMs) to deliver robust PCIe and CXL connectivity in chip-to-chip, box-to-box, and rack-to-rack topologies throughout the data center.
Expanded the widely deployed and field-tested Aries PCIe/CXL Smart DSP Retimer portfolio with the introduction and initial shipment of Aries 6 Retimers, the industry’s lowest power PCIe 6.x/CXL 3.x Retimer solution, to achieve higher bandwidth and extended reach across complex AI and compute topologies.
Shipped Aries PCIe/CXL Smart Cable Modules for Active Electrical Cable applications to enable multi-rack GPU clustering and low-latency memory fabric connectivity within AI infrastructure. The solution drives 7 meters of reach over flexible copper cables to interconnect clusters of GPUs across rack enclosures.
Showcased the 1st public demonstration of end-to-end interoperability between a PCIe 6.x Switch and a PCIe 6.x SSD at DesignCon 2025. The PCIe 6.x link-up was between an Astera Labs Scorpio P-Series Fabric Switch and Micron’s PCIe 6.x SSDs and showcased remarkable sequential read speeds exceeding 26GB/s.

First Quarter of Fiscal 2025 Financial Outlook

Based on current business trends and conditions, Astera Labs estimates the following:

GAAP Financial Outlook:

Revenue within a range of $151 million to $155 million
GAAP gross margin of approximately 74%
GAAP operating expenses within a range of approximately $113 million to $114 million
GAAP tax expense of approximately $3 million
GAAP diluted earnings per share within a range of approximately $0.03 to $0.04 on weighted-average diluted shares outstanding of approximately 180 million

Non-GAAP Financial Outlook (excluding the impact of approximately $47 million of stock-based compensation and including approximately $3 million of additional income taxes):

Non-GAAP gross margin of approximately 74%
Non-GAAP operating expenses within a range of approximately $66 million to $67 million
Non-GAAP tax rate of approximately 10%
Non-GAAP diluted earnings per share within a range of approximately $0.28 to $0.29 on non-GAAP weighted-average diluted shares outstanding of approximately 180 million