How did MXL's Q4 earnings surprise investors?

MaxLinear's (MXL) Q4 2024 earnings report surprised investors with a notable revenue surge despite operational challenges, as detailed below:

1. **Revenue Growth**: MaxLinear exceeded its revenue targets for Q4 2024, achieving $92.2 million, which was a 14% increase from the previous quarter. This growth was driven by strong performance in the infrastructure and broadband segments, as well as the optical interconnect business.
2. **Operational Challenges**: However, the company faced challenges related to cash flow, day sales outstanding, and operating losses. The GAAP operating loss represented 45% of net revenue, and the company reported a negative cash flow from operating activities of approximately $28 million.
3. **Stock Market Reaction**: Despite the challenges, the company's stock price increased by 2.23% during regular trading hours after the earnings report was released. This suggests that investors may have reacted positively to the news of the revenue growth and the company's strategic investments for future growth.

In conclusion, MaxLinear's Q4 earnings report was a mixed bag with positive revenue growth overshadowing the negative operational challenges. The company's strong performance in key segments and strategic investments for growth likely contributed to the positive market reaction.