Astera Labs, Inc.

number one on your telephone keypad. If you would like to withdraw your question, simply repress star one again. Thank you. I will now turn the call over to Leslie Green, Investor Relations for Astera Labs. Leslie, you may begin.

Good afternoon, everyone, and welcome to the Astera Labs second quarter 2024 earnings conference call. Joining us on the call today are Jitendra Mohan, Chief Executive Officer, and co-founder, and Sanjay Gajendra, President and Chief Operating Officer and co-founder, and Mike Tate, Chief Financial Officer. Before we get started, I would like to remind everyone that certain comments made in this call today may include forward-looking statements regarding, among other things, expected future financial results, strategies and plans, future operations, and the markets in which we operate. These forward-looking statements reflect management's current beliefs, expectations, and assumptions about future events, which are inherently subject to risks and uncertainties that are discussed in detail in today's earnings release and the periodic reports and filings we file from time to time with the SEC, including the risks set forth in the final perspective relating to our IPO. It is not possible for the company's management to predict all risks and uncertainties that could have an impact on these forward-looking statements or the extent to which any factor or combination of factors may cause actual results to differ materially from those contained in any forward-looking statement. In light of these risks, uncertainties, and assumptions, the results, events, or circumstances reflected in the forward-looking statements discussed during this call may not occur and actual results could differ materially from those anticipated or implied. All of our statements are based on information available to management as of today, and the company undertakes no obligation to update such statements after the date of this call to conform to these as a result of new information, future events, or changes in our expectations, except as required by law. Also during this call, we will refer to certain non-GAAP financial measures, which we consider to be an important measure of the company's performance. These non-GAAP financial measures are provided in addition to and not as a substitute for or superior to financial results prepared in accordance with U.S. GAAP. A discussion of why we used non-GAAP financial measures and reconciliations between our GAAP and non-GAAP financial measures is available in the earnings release we issued today, which can be accessed through the investor relations portion of our website and also be included in our filings with the SEC, which will also be accessible through the investor relations portion of our website. With that, I would like to turn the call over to Jitendra Mohan. CEO of Astera Labs, Chitendra.

Thank you, Leslie. Good afternoon, everyone, and thanks for joining our second quarter conference call for Fiscal 2024. AI continues to drive a strong investment cycle as entire industries look to expand their creative output and overall productivity. The velocity and dynamic nature of this investment in AI infrastructure is generating highly complex and diverse challenges for our customers. SRA Labs' intelligent and flexible connectivity solutions are developed ground up to navigate these fast-paced, complicated deployments. We are working closely with our hyperscaler customers to help them solve these challenges across diverse AI platform architectures that feature both third-party and internally developed accelerators. In addition to these favorable secular trends, we are also benefiting from new company-specific product cycles across multiple technologies which will also contribute to our growth in the form of higher average silicon content per AI platform. A strong leadership position and great execution by our team resulted in record revenue for Astera Labs in the June quarter, supports our strong outlook for the third quarter, and gives us confidence in our ability to continue outperforming industry growth rates. Astera Labs delivers strong Q2 results, setting our first consecutive record for quarterly revenue. strong non-GAAP operating margin and positive operating cash flows. Our revenue in Q2 was $76.9 million, up 18% from the previous quarter and up 619% from the same period in 2023. Non-GAAP operating margin was 24.4% and we delivered 13 cents of non-GAAP diluted earnings per share. Operating cash flow generation was also strong during the quarter, coming in at $29.8 million. With continued business momentum and a broadening set of growth opportunities, we are investing in our customers by rapidly scaling the organization. During the quarter, we expanded our cloud-scale interop lab to Taiwan and announced the opening of a new R&D center in India. We also announced the appointment of Bethany Mayer to our board of directors, bringing additional strategic leadership to the company. Today, Estera Labs is focused on three core technology standards, PCI Express, Ethernet and compute express link. We are shipping three separate product families, supporting these different connectivity protocols, all generating revenue and in various stages of adoption. Let me touch upon our business with each of these product families and how we support them with our differentiated architecture and Cosmos software suite. Then I will turn the call over to Sanjay to delve deeper into our growth strategy. Finally, Mike will provide additional details on our Q2 results and our Q3 financial guidance. First, let's talk about PCI Express. During the quarter, we saw continued strong demand for our Aries product family to drive reliable PCIe Gen 5 connectivity in AI systems by delivering robust signal integrity and link stability. While merchant GPU suppliers drove early adoption of PCIe Gen 5 into AI systems over the past year, we are now also seeing our hyperscaler customers introduce and ramp new AI server programs based upon their internally developed accelerators utilizing PCIe Gen 5. Looking ahead, AI accelerator processing power is continuing to increase at an incredible pace. The next milestone for the AI technology evolution is the commercialization of PCIe Gen 6, which doubles the connectivity bandwidth within AI servers creating new challenges for link reach, reliability, and latency. Our AD6 PCIe retimer family helps to solve these challenges with the next generation of our software-defined architecture, offering a seamless upgrade path to our widely deployed and field-tested Gen 5 solutions. We have started shipping initial quantities of pre-production orders of our PCIe Gen 6 solution, AD6. These shipments support our hyperscaler customers' initial program developments that are based on NVIDIA's Blackwell platform, including GB200. We look forward to supporting more significant production ramps in the quarters to come. Next, let's talk about Ethernet. Our portfolio of Taurus Ethernet smart cable modules helps relieve connectivity bottlenecks by overcoming reach, signal integrity, and bandwidth issues by enabling robust 100 gig per lane connectivity over copper cables, or AECs. Today, we are pleased to announce that our 400 gig Taurus Ethernet SCMs have shifted into volume production with an expected ramp through the back half of 2024. This ramp is happening across multiple platforms in multiple cable configurations, and we are working with multiple cable partners to support the expected volumes. Taurus will be ramping across a multitude of 400 gig applications to scale out connectivity on both AI compute platforms as well as general purpose compute systems. We are excited about the breadth and diversity of our Taurus design wins and expect the product family to be accretive to our corporate growth rate going forward. Next is Compute Express Link or CXL. We continue to work closely with our hyperscaler customers on a variety of use cases and applications for CXL. In Q2, we shipped material volume of our LEO products for pre-production rack scale deployment in data centers. We expect to see data center platform architects utilize CXL technology to solve memory bandwidth and capacity bottlenecks using our LEO family of products. The initial deployments are targeting memory expansion use cases with production ramps starting in 2025 when new CXL-capable CPUs are broadly available. Finally, I would like to spend a moment on Cosmos, which is a software platform that brings all of our product families together. We have discussed how Cosmos not only runs on our chips, but also on our customers' operating stacks to deliver seamless customization, optimization, and monitoring. The combination of our semiconductor and hardware solutions with Cosmos software enables our product to become the eyes and ears of connectivity infrastructure, helping fleet managers to ensure their AI and cloud infrastructure is operating at peak utilization. By improving the efficiency of their data centers, our customers are able to generate higher ROI and reduce downtime. To summarize, sustained secular trends in AI adoption, design wins across diverse AI platforms at hyperscalers, featuring both third-party and internally developed accelerators, and increasing average dollar content in next-generation GPU-based AI platforms gives us confidence in our ability to outperform industry growth rates. With that, let me turn the call over to our president and COO, Sanjay Gajendra, to discuss some of our recent product announcements and our long-term growth strategy. Thanks, Chitendra, and good afternoon, everyone.