Astera Labs, Inc.

I will now turn the conference over to Leslie Green, investor relations of Astera Labs. Leslie, you may begin.

Thank you, JL. Good afternoon, everyone, and welcome to the Astera Labs fourth quarter 2024 earnings conference call. Joining us today on the call are Jitendra Mohan, chief executive officer and co-founder, 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 prospectus relating to our IPO and our upcoming filing on Form 10-K. 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 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 made 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 or superior to financial results prepared in accordance with U.S. GAAP. A discussion of why we use 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 will 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 Mahan, CEO of Asterilabs. Jitendra?

Thank you, Leslie. Good afternoon, everyone, and thanks for joining our fourth quarter conference call for fiscal year 2024. Today, I'll provide an overview of our Q4 and full year 2024 results, followed by a discussion around the key secular trends and the company-specific drivers that will help Astera Labs deliver above-industry growth in 2025 and beyond. I will then turn the call over to Sanjay to discuss our medium and long-term growth strategy in more detail. Finally, Mike will provide details of our Q4-24 financial results in addition to our financial guidance for Q1 of 2025. External apps deliver strong Q4 results and set our sixth consecutive record for quarterly revenue at $141 million, which was up 25% from last quarter and up 179% versus Q4 of the prior year. Revenue growth during Q4 was primarily driven by our Aries PCIe retimer, and Taurus Ethernet Smart Cable module product families. Within these product families, we saw additional diversification driven by strong demand for both AI scale-up and scale-out connectivity. Leo and Scorpio momentum also continued with both products shipping in pre-production volumes during the first quarter to support our customers' qualifications across multiple platforms for a variety of use cases. Looking at the full year, our strong Q4 finish culminated in an outstanding 2024 which saw full-year sales increase by 242% year-over-year to $396 million. The value of our expanding product portfolio across both hardware and software was reflected in our robust fiscal 2024 non-GAAP gross margin of 76.6%. Over the past 12 months, we have aggressively broadened our technology capabilities by investing in our R&D organization to solve next-generation connectivity infrastructure challenges. We successfully increased our headcount in 2024 by nearly 80% to 440 full-time employees. In Q4, we also closed a small but strategic acquisition that included a talented group of architects and engineers to help accelerate our product development, strengthen our foundational IP capability, and provide holistic connectivity solutions for our hyperscaler customers at a rack scale. Our revenue growth in 2024 was largely driven by ARIES products, along with a strong ramp of Taurus in the fourth quarter. We expect 2025 to be a breakout year as we enter a new phase of growth driven by production revenue from all four of our product families to support a diverse set of customers and platforms. In 2025, our Aries and Taurus retimers are on track to continue their strong growth trajectory. Also, Estella Labs is poised to be a key enabler of CXL proliferation over the next several years with the volume ramp of our Leo family expected to start in second half of 25. Finally, our Scorpio smart fabric switches will begin ramping this year with new and broadening engagements for scale-up with our X-Series and scale-out with our P-Series switches. In time, we expect Scorpio fabric switches to become our largest product line, given the size and growth of the market opportunity for AI fabrics. Across our industry, hyperscalers are pushing the boundaries of scale-up compute to support large language models, that continue to grow in capacity and complexity. Recent algorithmic improvements have shown the potential to deliver AI applications with better return on investment for AI infrastructure providers. These innovations enable increased adoption and broader use cases for AI across the industry. The secular trends underlying our business are projected to be robust in 2025, driven by growing CapEx investments by hyperscalers in AI and cloud infrastructure. Hyperscalers are deploying internal ASIC-based rack-scale AI servers that use end-to-end scale-up networks to deliver larger, higher performance in more efficient clusters. These scale-up networks require every accelerator to connect with every other accelerator with fully non-blocking, high-throughput, and low-latency data pipes. This drives the need for more and faster interconnect, and the homogeneity of such a system allows for many optimizations and innovations. But PCIe-based scale-up clusters are innovative Scorpio X-Series and Aries Retimer family are perfectly suited to provide a custom-built interconnect solution. In addition to PCIe-based scale-up opportunities, we are excited about the next potentially broader opportunity with Ultra Accelerator Link or UA-Link. This is an impactful initiative by the AI industry to develop an open scale-up interconnect fabric for the entire market. Early in 2025, significant progress has been made advancing the development of UA-Link to provide the industry with a high-speed scale-up interconnect for next-generation AI clusters. The UA-Link consortium recently expanded its board of directors to include several more technology leaders, including Alibaba Cloud and Apple. Given our intimate involvement within this open standard, we are seeing overall engagement accelerate for Astera Labs' next-generation high-speed connectivity solutions. In summary, we anticipate the market opportunity for high-speed connectivity to increase at a faster rate than underlying AI accelerator shipments. We look to take full advantage of these robust trends by broadening our existing product portfolio with differentiated hardware and software solutions across multiple protocols and interconnect media. We are accelerating our pace and level of development driven by our customers to deliver new products that address the rapidly growing market opportunity ahead of us. With that, let me turn the call over to our President and COO, Sanjay Gajendra, to discuss our growth strategy in more detail.