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CRDO Nasdaq· Credo Technology Group Holding Ltd
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CRDO Nasdaq· Credo Technology Group Holding Ltd
Earnings report Q1 2024

Credo Technology Group Holding Ltd Reports Decline in Revenue for Latest Quarter

Segments of revenue

Credo Technology Group Holding Ltd reported total revenue of $53.06 million for the three months ended January 27, 2024, compared to $54.27 million in the same period last year. The revenue was generated from the following segments:

  • Product sales: $39.98 million, a slight increase from $38.03 million in the previous year.
  • Product engineering services: $11.83 million, a significant increase from $3.64 million in the previous year.
  • IP license: $1.25 million, a significant decrease from $12.60 million in the previous year.

Strengths

Despite an overall decline in revenue, Credo Technology Group Holding Ltd experienced growth in the product engineering services segment, which contributed to the increase in total revenue. This growth can be attributed to the company's focus on providing high-quality engineering services to its customers. Additionally, the company mentioned that it expects customer concentration to decrease as its products are more widely adopted and its customer base expands.

Challenges

The company faced challenges in the IP license segment, with a significant decrease in revenue compared to the previous year. This decline may be due to factors such as changes in market demand or increased competition in the IP licensing space. Additionally, the overall decline in total revenue indicates potential challenges in other segments as well.

Noteworthy

It is worth noting that Credo Technology Group Holding Ltd derives the substantial majority of its revenue from a limited number of customers. While this has contributed to its current revenue, the company anticipates a decrease in customer concentration as it expands its customer base.

Summary

Credo Technology Group Holding Ltd reported a decline in total revenue for the latest quarter, primarily driven by a significant decrease in revenue from the IP license segment. However, the company experienced growth in the product engineering services segment, which partially offset the decline. The company expects to reduce customer concentration as it expands its customer base. Overall, Credo Technology Group Holding Ltd faces challenges in maintaining revenue growth and will need to address the decline in the IP license segment to improve its financial performance.

Source documents

Form 10-Q  filed on Feb 28, 2024
10 pages scanned

Reference data

Company financials Q1 revenue 53.1M
Analyst estimates Q1 EPS missed by -1,312.12%
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