NASDAQ$CRDO

Credo Technology Group Holding Ltd · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Reported financial results for the second quarter of fiscal year 2023, ended October 29, 2022.

Credo Technology Group Holding Ltd reported record revenue of $51.4 million, an increase of 94% year over year and 11% compared to the prior quarter. The company remains optimistic about its future prospects and expects to achieve at least $200 million in revenue for the full fiscal year.

  • Revenue of $51.4 million, grew by 11% quarter over quarter
  • GAAP gross margin of 54.4% and non-GAAP gross margin of 54.9%
  • GAAP net loss of $3.4 million and non-GAAP net income of $2.4 million
  • Ending cash and short-term investment balance of $240.5 million

Headline financials

Total Revenue

$51.4M

Previous: $26.4M+94.4%
EPS (adj)

$0.02

Previous: -$0.06+133.3%
GAAP Gross Margin

54.4%

No prior period
Non-GAAP Gross Margin

54.9%

No prior period
Capital Expenditures

-$10.9M

Previous: $3.65M-399.6%
Free Cash Flow

-$21.4M

Previous: -$29.6M+27.8%
Net Income

-$3.36M

Previous: -$4.1M+18.0%
Operating Income

-$1.74M

Previous: -$3.55M+51.1%
Gross Profit

$28M

Previous: $16M+75.2%
Cash & Equivalents

$191M

Previous: $71M+168.2%
Total Assets

$414M

No prior period
Stock-Based Comp

$4.89M

Previous: $1.31M+274.2%

Revenue & EPS history

Credo · Revenue · Quarterly

$51.4M

Q2 2023+94.4%vs Q2 2022
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Forward guidance

Revenue is expected to be between $54.0 million to $56.0 million, up 73% year over year at the midpoint. GAAP gross margin is expected to be between 58.7%-60.7% and non-GAAP gross margin is expected to be between 59.0%-61.0%. GAAP operating expenses are expected to be between $30.2 million to $32.2 million and non-GAAP operating expenses are expected to be between $25.0 million to $27.0 million

Tailwinds

  • Revenue is expected to be between $54.0 million to $56.0 million
  • Revenue is expected to be up 73% year over year at the midpoint
  • GAAP gross margin is expected to be between 58.7%-60.7%
  • Non-GAAP gross margin is expected to be between 59.0%-61.0%
  • Non-GAAP operating expenses are expected to be between $25.0 million to $27.0 million

Headwinds

  • GAAP operating expenses are expected to be between $30.2 million to $32.2 million

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 17 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+3.8%

Avg return

Earnings day

+1.5%

Avg return

5 days after

+0.1%

Avg return

30 days after

43%

9 / 21 earnings

Positive

+44.4%

Q2 2025

Best reaction

-15.7%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026-2.4%-3.8%-11.2%
Q2 2026+8.7%+2.9%-15.9%
Q1 2026+7.3%+19.4%+15.3%
Q4 2025+14.7%+16.5%+49.4%
Q3 2025-14.0%-27.4%-38.7%
Q2 2025+44.4%+51.6%+37.3%
Q1 2025-15.7%-23.3%+3.0%
Q4 2024+23.9%+21.5%+54.1%
Q3 2024-0.6%+0.7%-5.0%
Q2 2024-3.3%+3.6%+5.1%
Q1 2024-2.6%-1.5%-7.5%
Q4 2023+20.9%+16.8%+26.8%
Q3 2023-3.3%-4.3%-11.2%
Q2 2023+4.4%+6.9%-4.2%
Q1 2023-8.5%-9.0%-22.4%
Q2 2022-7.2%-12.4%-12.8%
Q4 2022+26.5%+24.5%+10.4%
Q3 2021-5.7%-13.0%-18.2%
Q1 2022-5.7%-13.0%-18.2%
Q4 2021-5.7%-13.0%-18.2%
Q3 2022+2.7%-13.1%-14.6%
Q2 2021
Q1 2021

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