Companies /Technology

Astera Labs, Inc. Common Stock

NASDAQ: ALAB Semiconductors
$295.39
▼ $8.70 (−2.86%) today
Markets open · 11:56am ET

Q2 2024 Earnings

Reported Aug 6, 2024, 4:08pm ET · SEC source
$0.13
Beat +116.67%
EPS · est. $0.06
$76.9M
Beat +20.40%
Revenue · est. $63.8M
−0.8%
Trailing market
ALAB vs S&P since report
9 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−21%−14%−7%0Aug 6Aug 7report 4:08pm ETearnings−1.0%−19.9%
−21%−14%−7%0Aug 6Aug 7earnings−1.0%−19.9%
ALAB −19.9%S&P 500 −1.0%
−21%−14%−7%0Aug 6Aug 7report 4:08pm ETearnings−1.6%−19.9%
−21%−14%−7%0Aug 6Aug 7earnings−1.6%−19.9%
ALAB −19.9%NASDAQ −1.6%
−14%−7%0Aug 5Aug 14report 4:08pm ETearnings+4.6%−11.9%
−14%−7%0Aug 5Aug 14earnings+4.6%−11.9%
ALAB −11.9%S&P 500 +4.6%
−16%−8%0+8%Aug 5Aug 14report 4:08pm ETearnings+5.9%−11.9%
−16%−8%0+8%Aug 5Aug 14earnings+5.9%−11.9%
ALAB −11.9%NASDAQ +5.9%
−14.38%
Day of report
+12.76%
Next session
+6.85%
One week
+4.56%
30 days

S&P 500 over the same 30 days: +5.35%.

Did ALAB Beat Earnings? Q2 2024 Results

Astera Labs delivered a standout second quarter, posting revenue of $76.85 million, a 619% jump from the year-ago period and well ahead of the $63.83 million consensus estimate, as accelerating demand for AI infrastructure from hyperscalers drove the semiconductor connectivity company's growth. Non-GAAP diluted EPS of $0.13 beat the $0.06 consensus by 116.67%, though GAAP results reflected a net loss of $7.55 million, largely attributable to $43.07 million in stock-based compensation expense. The core driver was straightforward: hyperscalers expanding AI platform deployments increasingly relied on Astera's connectivity solutions, with the company securing design wins across both third-party and internally developed accelerator architectures. Gross margins held firm at roughly 78% on both a GAAP and non-GAAP basis, underscoring the premium positioning of its products. Looking ahead, management guided Q3 revenue of $95 million to $100 million, implying continued strong sequential momentum, with non-GAAP diluted EPS expected between $0.16 and $0.17 as operating leverage continues to build.

Key Takeaways
  • Production ramp of new AI platforms at hyperscalers featuring third-party and internally developed accelerators
  • Sustained secular trends in AI adoption
  • Design wins across diverse AI platform architectures
  • Increasing average dollar content in next-generation GPU-based AI platforms

“Astera Labs achieved robust top-line growth during Q2, and we expect even stronger sequential growth in the September quarter, fueled by the production ramp of new AI platforms at hyperscalers featuring both third-party and internally developed accelerators.”

Astera Labs CEO, on the earnings call

Forward Guidance & Outlook

For Q3 fiscal 2024, Astera Labs guided revenue of $95 million to $100 million, representing approximately 24-30% sequential growth. GAAP gross margin is expected at approximately 75%, with GAAP operating expenses of $92-$93 million and GAAP diluted loss per share of $0.06 to $0.08. On a non-GAAP basis, gross margin is expected at approximately 75%, operating expenses of $46-$47 million, and non-GAAP diluted EPS of $0.16 to $0.17 on approximately 177 million diluted shares. The company expects approximately $46 million in stock-based compensation with a non-GAAP tax rate of approximately 20%.

ALAB YoY Financials

Q2 2024 vs Q2 2023 · SEC filings Q2 2023 Q2 2024
$-40,000,000$0$40.0M$80.0M$10.7M$76.9MRevenue$8.4M$59.9MGross Profit$-39,415,574$-24,347,000Operating Income$-4,649,988$-7,546,000Net Income
$-40,000,000$0$40.0M$80.0MRevenueGross ProfitOperating IncomeNet Income

Figures from SEC filings and company reports. Not investment advice.