Astera Labs, Inc. ( (ALAB) ) has released its Q3 earnings. Here is a breakdown of the information Astera Labs, Inc. presented to its investors.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
Astera Labs, Inc., based in Santa Clara, California, is a leading company in the semiconductor industry, specializing in connectivity solutions for cloud and AI infrastructure. Their innovative products are tailored to enhance the performance of accelerated computing at cloud-scale, establishing strong partnerships with hyperscalers and data center ecosystems.
Astera Labs has reported impressive financial results for the third quarter of fiscal year 2024, achieving a record revenue of $113.1 million, marking a 47% increase from the previous quarter and a 206% rise year-over-year. This growth was driven by their expanding product portfolio, notably the new Scorpio Fabric Switches, which are positioned to play a critical role in AI connectivity infrastructure.
The company reported a GAAP gross margin of 77.7% but incurred a GAAP net loss of $7.6 million. However, on a non-GAAP basis, which excludes stock-based compensation and other adjustments, Astera Labs achieved a net income of $40.3 million with a non-GAAP operating margin of 32.4%. This highlights the company’s strong operational performance despite the GAAP loss.
Strategically, Astera Labs has introduced the Scorpio Smart Fabric Switches, designed for AI infrastructure at cloud-scale, and joined the Ultra Accelerator Link Consortium to advance high-speed connectivity technology. Furthermore, they showcased their innovative solutions at the OCP Global Summit and received recognition for their AI inferencing technology, winning the FMS 2024 Most Innovative Technology Award.
Looking forward, Astera Labs projects continued revenue growth in the fourth quarter, estimating a revenue range of $126 million to $130 million. The company remains committed to delivering increased value to its hyperscaler customers and exploring multi-year growth trajectories, reinforcing its position in the AI and cloud connectivity industry.
