Astera Labs, Inc. (ALAB) shares plummeted 7.37% during intraday trading on Tuesday, following the company's fourth quarter 2024 earnings report and outlook for the first quarter of 2025.
While Astera Labs reported strong Q4 2024 results, beating revenue estimates, their Q1 2025 revenue guidance fell short of some analyst expectations. The company guided for Q1 revenue of $151-$155 million, representing only modest growth of 7-10% quarter-over-quarter.
Additionally, Astera Labs expects gross margins to decline slightly in Q1 due to a higher mix of hardware products in their revenue. The company also warned of significantly higher operating expenses in Q1, driven by continued aggressive investments in research and development as well as the impact of a recent acquisition.