Credo reported calendar year Q4 2024, or fiscal Q3 of 2025,
Guides vs Actuals
revenue 115 - 125M → actual 135M (+87% qoq, 154% yoy)
adj gross margin 61 - 63% → actual 63.8%
adj OpEx 42 - 44M → actual 43.7M
Next quarter guidance is for
revenue 155-165M (+22% qoq at top end)
adj gross margin 63-65%
adj OpEx 50-52M
The company also achieved 29.4M GAAP net income, and 45.5 adj net income. These look like pretty strong numbers from an initial take, will have some more thoughts after listening to the conference call.
Yes, really pleased with these numbers - a great beat on the top and bottom line with 87% QoQ. AH market reaction is positive with the shares currently up around a further 7% after the rise of the past day. Gradually climbing back again to where it was a few weeks ago.
Credo revealed on the call that a single customer made up 86% in this quarter. The customer is Amazon which is a good customer to have, but one analyst pointed out this means this customers outside of Amazon went sequentially from 48M → 19M in revenue. That does make me wonder if those customers just switched to a competitor, or sales in Asia may have dropped off. The previous quarter had 30.1M of revenue from Hong Kong, and 13.5M of revenue from China.
The CEO repeated a lot that they expect much more diversification of revenue in future quarters. They also said active electrical cables (AECs) have become the de-facto standard standard for intra rack connections.
While this market for AECs seems bigger than I previously thought, this customer concentration issue was enough for me to sell. I could see re-entering next quarter possibly if this is cleared up and the concentration goes back to a more normal level as the CEO is assuring investors right now.