Q2 FY2025 Financial Highlights:

• Revenue: $72.0M
  • QoQ Growth: +20.6% (from $59.7M in Q1 FY2025)
  • YoY Growth: +63.6% (from $44.0M in Q2 FY2024)
• GAAP Gross Margin: 63.2%; Non-GAAP Gross Margin: 63.6%
• GAAP Operating Expenses: $53.9M; Non-GAAP Operating Expenses: $37.6M
• GAAP Net Loss: $(4.2)M; Non-GAAP Net Income: $12.3M
• GAAP EPS: $(0.03); Non-GAAP EPS: $0.07
• Cash and Short-term Investments: $383.0M

Performance vs. Expectations:

• Expected EPS: $0.05; Actual EPS: $0.07 (+40% Surprise)
• Expected Revenue: $66.8M; Actual Revenue: $72.0M (+7.8% Surprise)

Q3 FY2025 Guidance:

• Revenue: $115M–$125M
  • QoQ Growth: Projected at +59.7% to +73.6% (from $72.0M in Q2 FY2025).
• GAAP Gross Margin: 60.6%–62.6%; Non-GAAP Gross Margin: 61.0%–63.0%
• GAAP Operating Expenses: $58.6M–$60.6M; Non-GAAP Operating Expenses: $42.0M–$44.0M

Stock Price Reaction:

Following the strong earnings and optimistic guidance:

• CRDO stock increased by +32%, reaching $63.30.

Key Drivers of Growth:

• AI Infrastructure Demand: Major contributor to revenue growth, driven by accelerating AI deployments.
• Product Performance: Record sales across all three main product lines in Q2 FY2025.

Conclusion:

Credo Technology Group continues to show strong momentum with consecutive quarters of significant revenue growth. Their Q3 FY2025 guidance signals sustained demand for high-speed connectivity solutions, positioning them well for continued market leadership.

This robust performance and growth outlook make CRDO a key player to watch in the AI and data infrastructure space.