Companies /Technology

Credo Technology Group Holding Ltd

NASDAQ: CRDO Semiconductors
$234.17
▼ $6.07 (−2.53%) today
Markets open · 2:10pm ET

Q1 2025 Earnings

Reported Sep 4, 2024, 4:23pm ET · SEC source
$0.04
Beat +0.00%
EPS · est. $0.04
$59.7M
Beat +0.29%
Revenue · est. $59.5M
+18.8%
Beating market
CRDO vs S&P since report
8 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−8%0+8%Sep 4Sep 5report 4:23pm ETearnings−0.2%−7.8%
−8%0+8%Sep 4Sep 5earnings−0.2%−7.8%
CRDO −7.8%S&P 500 −0.2%
−8%0+8%Sep 4Sep 5report 4:23pm ETearnings−0.1%−7.8%
−8%0+8%Sep 4Sep 5earnings−0.1%−7.8%
CRDO −7.8%NASDAQ −0.1%
−16%−8%0+8%Sep 3Sep 12report 4:23pm ETearnings+1.5%−4.6%
−16%−8%0+8%Sep 3Sep 12earnings+1.5%−4.6%
CRDO −4.6%S&P 500 +1.5%
−16%−8%0+8%Sep 3Sep 12report 4:23pm ETearnings+2.7%−4.6%
−16%−8%0+8%Sep 3Sep 12earnings+2.7%−4.6%
CRDO −4.6%NASDAQ +2.7%
−14.86%
Day of report
−8.52%
Next session
+4.20%
One week
+22.10%
30 days

S&P 500 over the same 30 days: +3.31%.

Did CRDO Beat Earnings? Q1 2025 Results

Credo Technology Group delivered a tidy in-line quarter for fiscal Q1 2025, matching the consensus EPS estimate of $0.04 on a non-GAAP basis while nudging revenue of $59.71 million just ahead of the $59.54 million consensus, a 0.29% beat, with top-line growth clocking in at 70.2% year over year. The primary engine behind that acceleration was a record $53.84 million in product sales, up 30% sequentially, as customers ramped AI infrastructure deployments requiring Credo's high-speed connectivity solutions. GAAP results remained in the red, with a net loss of $9.54 million weighed down by $16.64 million in share-based compensation, but the non-GAAP picture improved sharply, swinging from a $4.72 million loss in the year-ago period to $7.04 million in profit. GAAP gross margin expanded to 62.4% from 59.2% a year earlier. Looking ahead, management guided fiscal Q2 2025 revenue to a range of $65.00 million to $68.00 million, signaling continued sequential momentum as AI-driven demand shows no sign of cooling.

Key Takeaways
  • Customer AI infrastructure deployments driving demand
  • Record product revenues of $57.3 million (referenced by CEO, includes product sales and engineering services), up 30% sequentially
  • 70% year-over-year revenue growth
  • Non-GAAP operating income turning positive at $2.2 million vs. loss a year ago

“For the first fiscal quarter ended August 3, 2024, Credo reported revenue of $59.7 million. This total included record product revenues of $57.3 million, an increase of 30% compared to the prior quarter. Our customers' AI infrastructure deployments remain the catalyst for our recent and expected growth. Going forward in fiscal 2025 and beyond, we expect contributions from our entire suite of innovative, power and cost-efficient, high-speed connectivity solutions.”

Credo Technology Group CEO, on the earnings call

Forward Guidance & Outlook

For fiscal Q2 2025 (three months ending November 2, 2024), Credo expects revenue between $65.0 million and $68.0 million. GAAP gross margin is expected between 61.3% and 63.3%, and non-GAAP gross margin between 62.0% and 64.0%. GAAP operating expenses are expected between $51.3 million and $53.3 million, and non-GAAP operating expenses between $36.0 million and $38.0 million. Management expects continued contributions from AI infrastructure deployments through fiscal 2025 and beyond.

CRDO YoY Financials

Q1 2025 vs Q1 2024 · SEC filings Q1 2024 Q1 2025
$0$30.0M$60.0M$35.1M$59.7MRevenue$20.8M$37.3MGross Profit$-14,511,950$-14,451,000Operating Income$-8,054,711$-9,540,000Net Income
$0$30.0M$60.0MRevenueGross ProfitOperating IncomeNet Income

CRDO Revenue by Segment

Product Sales$53.8M
IP License$2.4M
Product Engineering Services$3.5M

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