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CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)(In thousands) As of March 31,2025 December 31,2024Assets Current assets Cash and cash equivalents $86,431 $79,551 Marketable securities 838,295 834,750 Accounts receivable, net 69,778 38,811 Inventory 51,057 43,215 Prepaid expenses and other current assets 30,258 16,652 Total current assets 1,075,819 1,012,979 Property and equipment, net 39,474 35,651 Other assets 6,401 5,878 Total assets $1,121,694 $1,054,508 Liabilities and Stockholders’ Equity Current liabilities Accounts payable $29,513 $26,918 Accrued expenses and other current liabilities 47,767 59,624 Total current liabilities 77,280 86,542 Other liabilities 2,852 3,167 Total liabilities 80,132 89,709 Stockholders’ equity Common stock 16 16 Additional paid-in capital 1,216,495 1,173,153 Accumulated other comprehensive income 2,028 426 Accumulated deficit (176,977) (208,796)Total stockholders’ equity 1,041,562 964,799 Total liabilities and stockholders’ equity $1,121,694 $1,054,508 ASTERA LABS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)(In thousands, except per share amounts) Three Months Ended March 31,2025 December 31,2024 March 31,2024Revenue $159,442 $141,096 $65,258 Cost of revenue 40,031 36,648 14,738 Gross profit 119,411 104,448 50,520 Operating expenses Research and development 64,554 56,524 53,558 Sales and marketing 21,702 22,818 55,510 General and administrative 21,870 24,962 24,419 Total operating expenses 108,126 104,304 133,487 Operating income (loss) 11,285 144 (82,967)Interest income 10,432 10,558 2,554 Income (loss) before income taxes 21,717 10,702 (80,413)Income tax (benefit) provision (10,102) (14,011) 12,582 Net income (loss) $31,819 $24,713 $(92,995) Net income (loss) per share attributable to common stockholders: Basic $0.19 $0.15 $(1.77)Diluted $0.18 $0.14 $(1.77)Weighted-average shares used in calculating net income (loss) per share attributable to common stockholders: Basic 163,194 159,895 52,532 Diluted 178,116 177,559 52,532 ASTERA LABS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)(In thousands) Three Months Ended March 31,2025 March 31,2024Cash flows from operating activities Net income (loss) $31,819 $(92,995)Adjustments to reconcile net income (loss) to net cash provided by operating activities Stock-based compensation 42,446 97,768 Depreciation and amortization 1,125 614 Non-cash operating lease expense 696 522 Warrants contra revenue 374 110 Accretion of discounts on marketable securities (2,542) (568)Other, net (1,025) 430 Changes in operating assets and liabilities: Accounts receivable, net (30,968) (8,422)Inventory (6,787) (5,900)Prepaid expenses and other assets (14,495) (2,666)Accounts payable 2,226 4,973 Accrued expenses and other liabilities (11,676) 10,224 Operating lease liability (689) (438)Net cash provided by operating activities 10,504 3,652 Cash flows from investing activities Purchases of property and equipment (4,539) (3,424)Purchases of marketable securities (190,821) (23,308)Sales and maturities of marketable securities 191,420 22,481 Net cash used in investing activities (3,940) (4,251) Cash flows from financing activities Proceeds from issuance of common stock in connection with initial public offering, net of underwriting discounts and commissions — 672,198 Payment of deferred offering costs — (1,756)Tax withholding related to net share settlements of restricted stock units — (20,111)Proceeds from exercises of stock options, net of repurchases 386 1,247 Net cash provided by financing activities 386 651,578 Net increase in cash, cash equivalents, and restricted cash 6,950 650,979 Cash, cash equivalents, and restricted cash Beginning of the period 80,044 45,098 End of the period $86,994 $696,077 ASTERA LABS, INC. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (Unaudited)(In thousands, except percentages and per share amounts) Three Months Ended March 31,2025 December 31,2024 March 31,2024GAAP gross profit $119,411 $104,448 $50,520 Stock-based compensation expense upon IPO (1) — — 516 Stock-based compensation expense (38) 131 12 Non-GAAP gross profit $119,373 $104,579 $51,048 GAAP gross margin 74.9% 74.0% 77.4%Stock-based compensation expense upon IPO (1) — — 0.8 Stock-based compensation expense — 0.1 — Non-GAAP gross margin 74.9% 74.1% 78.2% GAAP operating income (loss) $11,285 $144 $(82,967)Stock-based compensation expense upon IPO (1) — — 88,873 Stock-based compensation expense 42,446 48,218 8,895 Employer payroll tax related to stock-based compensation from IPO (2) — — 1,072 Non-GAAP operating income $53,731 $48,362 $15,873 GAAP operating margin 7.1% 0.1% (127.1)%Stock-based compensation expense upon IPO (1) — — 136.2 Stock-based compensation expense 26.6 34.2 13.6 Employer payroll tax related to stock-based compensation from IPO (2) — — 1.6 Non-GAAP operating margin 33.7% 34.3% 24.3% GAAP net income (loss) $31,819 $24,713 $(92,995)Stock-based compensation expense upon IPO (1) — — 88,873 Stock-based compensation expense 42,446 48,218 8,895 Employer payroll tax related to stock-based compensation from IPO (2) — — 1,072 Income tax effect(3) (14,638) (6,439) 8,485 Non-GAAP net income $59,627 $66,492 $14,330 Net income (loss) per share attributable to common stockholders: GAAP – basic $0.19 $0.15 $(1.77)GAAP – diluted $0.18 $0.14 $(1.77)Non-GAAP pro forma - diluted $0.33 $0.37 $0.10 Weighted average shares used to compute net income (loss) per share attributable to common stockholders: GAAP – basic 163,194 159,895 52,532 GAAP – diluted 178,116 177,559 52,532 Non-GAAP pro forma – diluted (4) 178,116 177,559 147,514 ____________________(1) Stock-based compensation expense recognized in connection with the time-based vesting and settlement of RSUs that had previously met the time-based vesting condition and for which the liquidity event vesting condition was satisfied in connection with our IPO.(2) Employer payroll taxes related to the time-based vesting and settlement of RSUs, that had previously met the time-based vesting condition and for which the liquidity event vesting condition was satisfied in connection with our IPO.(3) Income tax effect is calculated based on the tax laws in the jurisdictions in which we operate and is calculated to exclude the impact of stock-based compensation expense and one-off discrete tax adjustments that are unrelated to our core operating performance.
The non-GAAP pro forma weighted average shares is calculated as follows: Three Months Ended March 31,2025 December 31,2024 March 31,2024Shares used to compute GAAP net income (loss) per share attributable to common stockholders – diluted 178,116 177,559 52,532 Weighted average effect of the assumed conversion of redeemable convertible preferred stock from the beginning of the periods — — 78,905 Effect of dilutive equivalent shares — — 16,077 Shares used to compute non-GAAP pro forma net income per share – diluted 178,116 177,559 147,514 ASTERA LABS, INC. RECONCILIATION OF GAAP TO NON-GAAP OUTLOOK (Unaudited)(In millions, except percentages and per share amounts) Outlook for Three Months Ending June 30, 2025 Low HighGAAP gross margin 74.0% 74.0%Stock-based compensation expense — — Non-GAAP gross margin 74.0% 74.0% GAAP operating expense $113 $115 Stock-based compensation expense 40 40 Non-GAAP operating expense $73 $75 GAAP tax rate 21% 21%Income tax effect (11) (11)Non-GAAP tax rate 10% 10% GAAP EPS – diluted $0.10 $0.11 Stock-based compensation expense and income tax effect 0.22 0.22 Non-GAAP EPS – diluted $0.32 $0.33 ASTERA LABS, INC. SUPPLEMENTAL FINANCIAL INFORMATION STOCK-BASED COMPENSATION EXPENSE (Unaudited)(In thousands) Three Months Ended March 31,2025 December 31,2024 March 31,2024Cost of revenue $(38) $131 $528 Research and development 19,186 18,808 30,007 Sales and marketing 12,319 14,671 49,258 General and administrative 10,979 14,608 17,975 Total stock-based compensation expense (1) $42,446 $48,218 $97,768 ____________________(1) Stock-based compensation expense recognized during the three months ended March 31, 2024 included $88.9 million of cumulative stock-based compensation expense related to the time-based vesting and settlement of RSUs that had previously met the time-based vesting condition and for which the liquidity event vesting condition was satisfied in connection with our IPO.
Second Quarter of Fiscal 2025 Financial Outlook Based on current business trends and conditions, Astera Labs estimates the following: GAAP Financial Outlook: Revenue within a range of $170 million to $175 millionGAAP gross margin of approximately 74%GAAP operating expenses within a range of approximately $113 million to $115 millionGAAP tax rate of approximately 21%GAAP diluted earnings per share within a range of approximately $0.10 to $0.11 on weighted-average diluted shares outstanding of approximately 178 million Non-GAAP Financial Outlook (excluding the impact of stock-based compensation expense and the income tax effects of non-GAAP adjustments): Non-GAAP gross margin of approximately 74%Non-GAAP operating expenses within a range of approximately $73 million to $75 millionNon-GAAP tax rate of approximately 10%Non-GAAP diluted earnings per share within a range of approximately $0.32 to $0.33 on non-GAAP weighted-average diluted shares outstanding of approximately 178 million Earnings Webcast and Conference CallAstera Labs will host a conference call to review its financial results for the first quarter of fiscal 2025 and to discuss our financial outlook today at 1:30 p.m.Pacific Time.
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