Astera Labs, Inc. (NASDAQ:ALAB) Q4 2024 Earnings Conference Call February 10, 2025 4:30 PM ET Company Participants Jitendra Mohan - CEO and Co-Founder Sanjay Gajendra - President, COO and Co-Founder Mike Tate - CFO Leslie Green - IR Conference Call Participants Harlan Sur - JPMorgan Blayne Curtis - Jefferies Joe Moore - Morgan Stanley Tore Svanberg - Stifel Tom O'Malley - Barclays Ross Seymore - Deutsche Bank Quinn Bolton - Needham Atif Malik - Citigroup Suji Desilva - ROTH Capital Richard Shannon - Craig-H ...

Financial Performance - Astera Labs reported record quarterly revenue of $141.1 million for Q4 2024, representing a 25% increase quarter-over-quarter and a 179% increase year-over-year[4]. - For the full fiscal year 2024, revenue reached $396.3 million, up 242% compared to the previous year[6]. - Total revenue for the year ended December 31, 2024, was $396,290,000, a significant increase of 242% compared to $115,794,000 in 2023[23]. - Gross profit for the year ended December 31, 2024, reached $302,699,000, representing a gross margin of 76.4%, up from 68.9% in 2023[23][27]. - The company achieved a non-GAAP operating income of $48.4 million in Q4 2024, resulting in a non-GAAP operating margin of 34.3%[5]. - The net loss for the year ended December 31, 2024, was $83,421,000, compared to a net loss of $26,257,000 in 2023[25]. - The company reported a non-GAAP net income of $143,329,000 for the year ended December 31, 2024, compared to a non-GAAP net loss of $15,578,000 in 2023[27]. Cash Flow and Assets - Cash and cash equivalents increased to $79,551,000 as of December 31, 2024, from $45,098,000 at the end of 2023[21]. - Total assets surged to $1,054,508,000 as of December 31, 2024, compared to $196,292,000 in 2023, reflecting strong growth in current assets[21]. - The company generated $136,676,000 in net cash from operating activities for the year ended December 31, 2024, compared to a cash outflow of $12,716,000 in 2023[25]. Expenses - Operating expenses for the year ended December 31, 2024, totaled $418,765,000, compared to $109,324,000 in 2023, indicating a substantial increase due to higher research and development costs[23]. - Research and development expenses for the year ended December 31, 2024, were $200,830,000, significantly higher than $73,407,000 in 2023, indicating a focus on innovation[23]. - The total stock-based compensation expense for the year ended December 31, 2024, was $234.588 million, significantly higher than $10.679 million for the year ended December 31, 2023[32]. Future Outlook - Astera Labs expects Q1 2025 revenue to be in the range of $151 million to $155 million, with a GAAP gross margin of approximately 74%[9]. Product Development and Innovation - The company introduced a new portfolio of Scorpio Smart Fabric Switches designed for AI infrastructure, currently shipping in pre-production quantities[8]. - Astera Labs joined the Ultra Accelerator Link Consortium to enhance high-speed connectivity for AI workloads[8]. - The company showcased the first end-to-end PCIe optical connectivity link, expanding its Aries family of products for robust connectivity in data centers[8]. - Astera Labs shipped Aries PCIe/CXL Smart Cable Modules, enabling low-latency memory fabric connectivity within AI infrastructure[8]. - The company demonstrated PCIe 6.x interoperability at DesignCon 2025, achieving sequential read speeds exceeding 26GB/s[8]. Shareholder Information - The weighted average shares used in calculating net income per share attributable to common stockholders increased to 159,895,000 for the three months ended December 31, 2024, from 38,627,000 in the same period of 2023[27]. - The shares used to compute GAAP net income per share attributable to common stockholders for the year ended December 31, 2024, was 131,262, compared to 37,131 for the year ended December 31, 2023[30]. - The weighted average shares used to compute non-GAAP pro forma net income per share for the three months ended December 31, 2024, was 177,559, compared to 173,832 for the previous quarter[30]. Tax Information - For the three months ended December 31, 2024, the non-GAAP tax benefit rate was 13%, while the tax expense rate for the previous quarter was 15%[29]. - The non-GAAP tax expense rate for the year ended December 31, 2024, was 7%, a significant decrease from the tax benefit rate of 27% for the year ended December 31, 2023[29].

Record quarterly revenue of $141.1 million, up 25% QoQ and up 179% YoY Fiscal 2024 record revenue of $396.3 million, up 242% versus the prior yearRamping across diverse set of customers and platforms with four product families in fiscal 2025 SANTA CLARA, Calif., Feb. 10, 2025 (GLOBE NEWSWIRE) -- Astera Labs, Inc. (Nasdaq: ALAB), a global leader in semiconductor-based connectivity solutions for cloud and AI infrastructure, today announced preliminary financial results for the fourth quarter and full fiscal y ...

Astera Labs (ALAB) is scheduled to report fourth-quarter 2024 results on Feb. 10.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.For the fourth quarter of 2024, the company expects revenues between $126 million and $130 million.The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $128.20 million.For the fourth quarter of 2024, the company expects non-GAAP earnings between 25 cents and 26 cents per share. The consensus mark for earnings is pegged at 26 cents per share, ...

The latest trading session saw Astera Labs, Inc. (ALAB) ending at $104.51, denoting a -1.93% adjustment from its last day's close. The stock's change was less than the S&P 500's daily gain of 0.36%. Elsewhere, the Dow saw a downswing of 0.28%, while the tech-heavy Nasdaq appreciated by 0.51%.Shares of the company witnessed a loss of 18.51% over the previous month, trailing the performance of the Computer and Technology sector with its of 0% and the S&P 500's gain of 2.11%.Market participants will be closely ...

Group 1 - Astera Labs Inc shares recovered in early trading after a decline amid a broader downturn in AI stocks [1] - Analyst Gus Richard upgraded Astera Labs' rating from Market Perform to Outperform, setting a price target of $120 [1] - Major tech companies, including Amazon, Microsoft, Meta, and Alphabet, are projected to increase capital expenditures to approximately $270 billion in 2025, a 35% increase from $200 billion last year [2] Group 2 - The launch of China's open-source AI model DeepSeek is not expected to alter the capital expenditure plans of major tech firms [3] - Connectivity solutions are becoming a larger component of the bill of materials in next-generation AI systems [3] - Astera Labs is expanding its connectivity solutions with new product lines and is ramping up multiple new AI platforms based on internally developed AI accelerators [3] Group 3 - Astera Labs shares rose by 4.61% to $86.91 at the time of publication [4]

Astera Labs (ALAB 0.63%) stock is sinking this week following new analyst coverage. The semiconductor specialist's share price had fallen as low as 15.8% for the week during Thursday's trading before recovering to a 7.1% dip on the week, according to data from S&P Global Market Intelligence.Morgan Stanley published new coverage on Astera Labs before the market opened Thursday, downgrading its rating on the stock from overweight to equal weight. The company maintained its one-year price target on the stock a ...

Earnings Announcement - Astera Labs will release its Q4 2024 financial results after market close on Feb 10, 2025 [1] - The company will host a conference call at 1:30 pm PT / 4:30 pm ET on the same day [1] Conference Call Details - Date: Feb 10, 2025 [2] - Time: 1:30 pm PT / 4:30 pm ET [2] - Hosts: CEO Jitendra Mohan, President & COO Sanjay Gajendra, CFO Mike Tate [2] - Dial-in: (800) 715-9871 [2] - Conference ID: 5908687 [2] - Webcast: https://ir.asteralabs.com [2] Company Overview - Astera Labs is a global leader in semiconductor-based connectivity solutions for AI and cloud infrastructure [2] - The company's Intelligent Connectivity Platform integrates PCIe, CXL, and Ethernet semiconductor solutions with COSMOS software suite [2] - The platform delivers a scalable and customizable software-defined architecture [2] - Astera Labs focuses on innovation and interoperability, working closely with hyperscalers and the data center ecosystem [2] Contact Information - Investor Contact: Leslie Green, leslie.green@asteralabs.com [3]

Performance and Market Position - Astera Labs (ALAB) shares surged 122% since IPO, outperforming the Zacks Computer & Technology sector's 20.7% return and the Zacks Electronics - Semiconductors industry's 45.8% appreciation [1] - The company's outperformance is driven by increasing demand for AI servers and data center infrastructure [1] - ALAB's top-line growth is fueled by the ramp-up of multiple product families, particularly AI platforms utilizing third-party GPUs and internally developed AI accelerators [2] Product Portfolio and Market Opportunity - ALAB's demand for AI platforms leveraging high-performance GPUs and AI accelerators drove strong design wins and sales for products like Aries Retimers, Taurus Smart Cable Modules, and Scorpio Fabric Switches [5] - The Scorpio Smart Fabric Switches, designed for AI infrastructure at cloud scale, are expected to significantly enhance ALAB's total market opportunity, projected to exceed $12 billion by 2028 [6] - The Aries product line, particularly PCIe retimers, highlights significant growth opportunities as a critical enabler for enhancing AI system performance [7] Collaborations and Industry Influence - ALAB has collaborated with top chipmakers like NVIDIA, AMD, Micron Technology, and Intel, strengthening its position in the AI market [8] - ALAB's products are used in NVIDIA's GB200, and the PCIe switch may play a key role in future NVIDIA products, emphasizing ALAB's influence in advanced AI technologies [8] - AMD utilizes ALAB solutions to enhance the efficiency and scalability of its AI-driven products, further solidifying both companies' positions in the AI market [9][10] Financial Outlook - ALAB's Zacks Consensus Estimate for 2025 revenues is $605.57 million, indicating a year-over-year increase of 57.95% [11] - The Zacks Consensus Estimate for 2025 earnings is $1.13 per share, reflecting a year-over-year increase of 56.15% over 2024's estimated 72 cents per share [12] Valuation and Market Perception - ALAB is trading at a forward 12-month Price/Sales of 37.31X, significantly higher than the sector's 8.71X [14] - The company currently holds a Zacks Rank 3 (Hold), suggesting investors may wait for a more favorable entry point [17]

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