On May 29, 2024, Credo Technology Group Holding Ltd (CRDO, Financial) released its 8-K filing reporting financial results for the fourth quarter and full fiscal year 2024, ended April 27, 2024. Credo Technology Group Holding Ltd delivers high-speed solutions to break bandwidth barriers on every wired connection in the data infrastructure market. It provides innovative, secure, high-speed connectivity solutions that deliver improved power and cost efficiency as data rates and corresponding bandwidth requirements increase exponentially throughout the data infrastructure market.
Performance Overview
Credo Technology Group Holding Ltd (CRDO, Financial) reported a significant year-over-year revenue growth of 89.4% for the fourth quarter, reaching $60.8 million, surpassing the analyst estimate of $60.72 million. The company achieved a GAAP gross margin of 65.8% and a non-GAAP gross margin of 66.1%. Despite a GAAP net loss of $10.5 million, the company reported a non-GAAP net income of $11.8 million, translating to a non-GAAP diluted net income per share of $0.07, outperforming the estimated earnings per share of 0.00.
Financial Achievements
For the full fiscal year 2024, Credo Technology Group Holding Ltd (CRDO, Financial) achieved record revenue of $193.0 million, driven by strong contributions from its product and license categories. The company's success was primarily fueled by its customers' AI deployments, highlighting the increasing demand for AI infrastructure. The company ended the fiscal year with a robust cash and short-term investment balance of $410.0 million.
Income Statement Highlights
| Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 |
|---|---|---|---|---|
| Total Revenue | $60.8M | $32.1M | $193.0M | $184.2M |
| GAAP Gross Margin | 65.8% | 57.9% | 61.9% | 57.7% |
| Non-GAAP Gross Margin | 66.1% | 58.2% | 62.5% | 58.0% |
| GAAP Net Loss | ($10.5M) | ($15.9M) | ($28.4M) | ($16.5M) |
| Non-GAAP Net Income | $11.8M | ($5.7M) | $14.6M | $8.7M |
Balance Sheet and Cash Flow Highlights
Credo Technology Group Holding Ltd (CRDO, Financial) reported total assets of $601.9 million as of April 27, 2024, compared to $397.3 million as of April 29, 2023. The company's cash and cash equivalents stood at $66.9 million, with short-term investments amounting to $343.1 million. Total liabilities were $61.7 million, while shareholders' equity was $540.2 million.
Management Commentary
"In fiscal 2024, Credo achieved record revenue of $193.0M, with strong contributions from each of our product and license categories. The Company’s success in fiscal 2024 was primarily driven by our customers’ AI deployments. Looking forward, we anticipate accelerating demand for AI infrastructure. We believe customers will continue to choose Credo for their most complex connectivity needs, due to our customer centric focus on innovative, high-performance and energy-efficient solutions." - Bill Brennan, President and CEO
Financial Outlook
For the first quarter of fiscal year 2025, Credo Technology Group Holding Ltd (CRDO, Financial) expects revenue to be between $58.0 million and $61.0 million. The company anticipates a GAAP gross margin between 62.3% and 64.3%, and a non-GAAP gross margin between 63.0% and 65.0%. GAAP operating expenses are projected to be between $49.4 million and $51.4 million, while non-GAAP operating expenses are expected to range from $35.0 million to $37.0 million.
For more detailed insights and to access the full earnings report, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from Credo Technology Group Holding Ltd for further details.
