Astera Labs, Inc.

time I would like to welcome everyone to the Astera Labs second quarter earnings conference call. All lines have been placed on mute to prevent any background noise. After management remarks there will be a question and answer session. If you would like to ask a question during this time simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question press the pound key. Thank you. I will now turn the call over to Leslie Green investor relations for Astera Labs. Leslie you may begin.

Thank you Rebecca. Good afternoon everyone and welcome to the Astera Labs second quarter 2025 earnings conference call. Joining us on the call today are Jitendra Mohan chief executive officer and co-founder Sanjay Gajendra president 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 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 in the periodic reports and filings we file from time to time with the SEC including the risks set forth and our most recent annual report on form 10k and our upcoming filing on form 10q. 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 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 financial results prepared in accordance with US GAAP. A discussion of why we use non-GAAP financial measures and reconciliation between our GAAP and non-GAAP financial measures is available in the earnings relief we issued today which can be accessed through the investor relations portion of our website. And with that I would like to turn the call over to Jitendra Mohan, CEO of Asera Labs. Jitendra.

Thank you Leslie. Good afternoon everyone and thanks for joining our second quarter conference call for fiscal year 2025. Today I'll provide an overview of our Q2 results followed by a discussion around our rack scale connectivity vision. I will then turn the call over to Sanjay to walk through Astera Labs near and long-term growth profile. Finally Mike will give an overview of our Q2 2025 financial results and provide details regarding our financial guidance for Q3. Astera Labs deliver strong results in Q2 with all financial metrics coming in favorable to our financial guidance. Quarterly revenue of $191.9 million was up 20% from the prior quarter and up 150% versus Q2 of last year. Growth within the quarter was driven by both our signal conditioning and switch fabric product lines, establishing a meaningful new revenue baseline for the company to build upon. This quarter we achieved a key milestone with our market leading Scorpio P Series switches, supporting PCI-6 scale out applications ramping into volume production to support the deployment and general availability of customized rack scale AI system designs based on merchant GPUs. Strong demand for our PCI-6 solutions helped to drive material top line upside during the quarter. Scorpio exceeded 10% of total revenue making it the fastest ramping product line in the history of Astera Labs. Furthermore we continue to see strong activity and engagement across both our Scorpio P Series and X Series PCIe fabric switches and we are pleased to report that we won new designs across multiple new customers during the quarter. We remain on track for Scorpio to exceed 10% of total revenue in 2025 while becoming the largest product line for Astera Labs over the next several years. Our Ares product family grew during the quarter and continues to diversify across both GPU and custom ASIC based systems for a variety of applications including scale up and scale out connectivity. Additionally our first to market Ares 6 solutions supporting PCI-6 began volume ramp during the quarter within rack scale merchant GPU based systems. Our Taurus product family demonstrated strong growth driven by AEC demand supporting the latest merchant GPUs, custom AI accelerators as well as general purpose compute platforms. Leo continues to ship in pre-production quantities as customers expand their development rack clusters to qualify new systems leveraging the recently introduced CXL capable data center CPU platforms. In addition to strong financial and operational performance during Q2, we continue to expand our strategic relationships across both customers and ecosystem partners as the industry pushes forward with innovative new technologies. First we've broadened our collaboration with Nvidia to support NVLink Fusion providing additional optionality for customers to deploy Nvidia AI accelerators while leveraging high performance scale up networks based on NVLink technology. Next we announced a partnership with Alchip Technologies to advance the silicon ecosystem for AI rack scale infrastructure by combining our comprehensive connectivity portfolio with their custom ASIC development capabilities. Within the CXL ecosystem industry progress continues with SAP recently highlighting their collaboration with Microsoft featuring Intel's Xeon 6 processors to optimize SAP HANA database performance by utilizing CXL's new memory expansion. Lastly we joined AMD on stage during their advancing AI 2025 keynote presentation as a trusted partner to showcase UALink which is the only truly open memory semantic based scale of fabric purpose built for AI workloads. To continue the relentless pursuit of AI model performance, data center infrastructure providers are beginning a to what we call AI infrastructure 2.0. We define this AI infrastructure 2.0 transition as the proliferation of open standards based AI rack scale platforms that leverage broad innovation, interoperability, and a diverse multi-vendor supply chain. This transition is in its early stages and we are strategically crafting our roadmaps to help lead the secular connectivity trends over coming years. The transition to AI infrastructure 2.0 is especially significant at the rack level as modern AI workloads demand ultra-low latency communication between hundreds of tightly integrated accelerators over a scale-up network. Estera Labs is well positioned to support this infrastructure transformation as an anchor solution partner with expertise across the entire First we support a variety of interconnect protocols including UALink and PCIe for scale-up, Ethernet for scale-out, and CXL for memory. We are very excited about the momentum behind the UALink scale-up connectivity standard which exemplifies the open ecosystem approach by combining the low latency of PCIe and the fast data rates of Ethernet to deliver -in-class -to-end latency and bandwidth. Next, we provide a broad suite of intelligent connectivity products to address the entire rack across both purpose-built silicon and hardware solutions, all featuring our Cosmos software for -in-class speed monitoring and management. Lastly, our deep partnerships across the entire ecosystem continue to expand as we work closely with ASIC and GPU vendors to align features, interoperability, and roadmaps to solve the rack-scale connectivity challenges of tomorrow. In summary, Estera Labs has demonstrated strong momentum in our business and the prospects for continued diversification and scale are driving our roadmaps in R&D investment. We are in the early stages of the AI infrastructure 2.0 transformation which Estera Labs is uniquely positioned to help proliferate over the coming years. Scale-up connectivity for rack-scale AI infrastructure alone will add close to $5 billion of market opportunity for us by 2030. And we remain committed to supporting our customers as they choose the architectures and technologies that best suit their AI performance goals and business objectives. With that, let me turn the call over to our President and COO Sanjay Gajendra to outline our vision for growth over the next several years.