Ambarella, Inc. (NASDAQ: AMBA), an edge AI vision silicon company,
today announced financial results for its third quarter of fiscal
year 2023 ended October 31, 2022.
- Revenue for the third quarter of
fiscal 2023 was $83.1 million, down 10% from $92.2 million in the
same period in fiscal 2022. For the nine months ended October 31,
2022, revenue was $254.3 million, up 5% from $241.6 million for the
nine months ended October 31, 2021.
- Gross margin under U.S. generally
accepted accounting principles (GAAP) for the third quarter of
fiscal 2023 was 62.2%, compared with 62.5% for the same period in
fiscal 2022. For the nine months ended October 31, 2022, GAAP gross
margin was 62.6%, compared with 62.4% for the nine months ended
October 31, 2021.
- GAAP net loss for the third quarter
of fiscal 2023 was $19.8 million, or loss per diluted ordinary
share of $0.51, compared with GAAP net profit of $0.8 million, or
earnings per diluted ordinary share of $0.02, for the same period
in fiscal 2022. GAAP net loss for the nine months ended October 31,
2022 was $54.3 million, or loss per diluted ordinary share of
$1.42. This compares with GAAP net loss of $17.2 million, or loss
per diluted ordinary share of $0.47, for the nine months ended
October 31, 2021.
Financial results on a non-GAAP basis for the third quarter of
fiscal 2023 are as follows:
- Gross margin on a non-GAAP basis
for the third quarter of fiscal 2023 was 63.5%, compared with 63.1%
for the same period in fiscal 2022. For the nine months ended
October 31, 2022, non-GAAP gross margin was 64.0%, compared with
62.9% for the nine months ended October 31, 2021.
- Non-GAAP net income for the third
quarter of fiscal 2023 was $9.5 million, or earnings per diluted
ordinary share of $0.24. This compares with non-GAAP net income of
$22.2 million, or earnings per diluted ordinary share of $0.57, for
the same period in fiscal 2022. Non-GAAP net income for the nine
months ended October 31, 2022 was $34.1 million, or earnings per
diluted ordinary share of $0.88. This compares with non-GAAP net
income of $44.3 million, or earnings per diluted ordinary share of
$1.15, for the nine months ended October 31, 2021.
Based on information available as of today, Ambarella is
offering the following guidance for the fourth quarter of fiscal
year 2023, ending January 31, 2023:
- Revenue is expected to be between $81.0 million to $85.0
million.
- Gross margin on a non-GAAP basis is expected to be between
63.0% and 64.0%.
- Operating expenses on a non-GAAP basis are expected to be
between $46.0 million and $49.0 million.
Ambarella reports gross margin, net income (loss) and earnings
(losses) per share in accordance with GAAP and, additionally, on a
non-GAAP basis. Non-GAAP financial information excludes the impact
of stock-based compensation and acquisition-related costs adjusted
for the associated tax impact, which includes the effect of any
benefits or shortfalls recognized. A reconciliation of the GAAP to
non-GAAP gross margin, net income (loss) and earnings (losses) per
share for the periods presented, as well as a description of the
items excluded from the non-GAAP calculations, is included in the
financial statements portion of this press release.
Total cash, cash equivalents and marketable debt securities on
hand at the end of the third quarter of fiscal 2023 was $199.0
million, compared with $197.9 million at the end of the prior
quarter and $457.8 million at the end of the same quarter a year
ago. Ambarella fully liquidated its debt security investments by
the end of the third quarter of fiscal 2022 to finance the
acquisition of Oculii Corp. During Q2 fiscal 2023, the company
resumed its investment in debt securities.
“Our Q3 results were mostly as expected, despite the material
headwinds from the semiconductor industry cyclical downturn,” said
Fermi Wang, President and CEO. “We maintained a high level of focus
on developing our edge AI endpoint products which we see continuing
to offer very favorable secular growth opportunities. Continental
AG was the first company to announce the integration of CV3 into
their ADAS product lines, and more CV3 updates are anticipated in
the next several quarters. Our projected automotive revenue funnel
grew approximately 28% from a year ago.”
Quarterly Conference Call
Ambarella plans to hold a conference call at 4:30 p.m. Eastern
Time / 1:30 p.m. Pacific Time today with Fermi Wang, President and
Chief Executive Officer, and Brian White, Chief Financial Officer,
to discuss the third quarter of fiscal year 2023 results. The call
can be accessed by dialing 877-304-8963 in the USA; international
callers should dial 760-666-4834. Please dial in ten minutes prior
to the scheduled conference call time. A live and archived webcast
of the call will be available on Ambarella’s website at
http://www.ambarella.com/ for up to 30 days after the call.
About Ambarella
Ambarella’s products are used in a wide variety of human and
computer vision applications, including video security, advanced
driver assistance systems (ADAS), electronic mirror, drive
recorder, driver/cabin monitoring, autonomous driving and robotics
applications. Ambarella’s low-power systems-on-chip (SoCs) offer
high-resolution video compression, advanced image processing and
powerful deep neural network processing to enable intelligent
perception, fusion and central processing systems to extract
valuable data from high-resolution video and radar streams. For
more information, please visit www.ambarella.com.
"Safe harbor" statement under the Private Securities
Litigation Reform Act of 1995
This press release contains forward-looking statements that are
not historical facts and often can be identified by terms such as
“outlook,” “projected,” “intends,” “will,” “estimates,”
“anticipates,” “expects,” “believes,” “could,” “should,” or similar
expressions, including the guidance for the fourth quarter of
fiscal year 2023 ending January 31, 2023, and the comments of our
CEO relating to headwinds in the semiconductor industry, our
secular growth opportunities, potential customer acceptance of our
CV3 SoC, and our revenue opportunities in the automotive market as
represented by the company’s projected sales funnel. The
achievement or success of the matters covered by such
forward-looking statements involves risks, uncertainties and
assumptions. Our actual results could differ materially from those
predicted or implied and reported results should not be considered
as an indication of our future performance.
The risks and uncertainties referred to above include, but are
not limited to, risks associated with global health conditions and
associated risk mitigation measures; global economic and political
conditions, including cyclical headwinds in the semiconductor
industry, higher inflation and possible trade tariffs and
restrictions; supply chain challenges in the semiconductor industry
and markets we serve; revenue being generated from new customers or
design wins, neither of which is assured; the commercial success of
our customers’ products; our growth strategy; our ability to
anticipate future market demands and future needs of our customers,
particularly for computer vision applications; our ability to
introduce new and enhanced solutions; our ability to gain customer
acceptance of our new SoC solutions; our ability to develop, and to
generate revenue from, new advanced technologies, such as computer
vision functionality; our ability to retain and expand customer
relationships and to achieve design wins; the expansion of our
current markets and our ability to successfully enter new markets,
such as the OEM automotive and robotics markets; anticipated trends
and challenges, including competition, in the markets in which we
operate; our ability to effectively manage growth; our ability to
retain key employees; and the potential for intellectual property
disputes or other litigation.
Further information on these and other factors that could affect
our financial results is included in the company’s Annual Report on
Form 10-K for our 2022 fiscal year, which is on file with the
Securities and Exchange Commission. Additional information will
also be set forth in the company’s quarterly reports on Form 10-Q,
annual reports on Form 10-K and other filings the company makes
with the Securities and Exchange Commission from time to time,
copies of which may be obtained by visiting the Investor Relations
portion of our web site at www.ambarella.com or the SEC's web site
at www.sec.gov. Undue reliance should not be placed on the
forward-looking statements in this release, which are based on
information available to us on the date hereof. The results we
report in our Quarterly Report on Form 10-Q for the third fiscal
quarter ended October 31, 2022 could differ from the preliminary
results announced in this press release.
Ambarella assumes no obligation and does not intend to update
the forward-looking statements made in this press release, except
as required by law.
Non-GAAP Financial Measures
The company has provided in this release non-GAAP financial
information, including non-GAAP gross margin, net income (loss),
and earnings (losses) per share, as a supplement to the condensed
consolidated financial statements, which are prepared in accordance
with generally accepted accounting principles ("GAAP"). Management
uses these non-GAAP financial measures internally in analyzing the
company’s financial results to assess operational performance and
liquidity. The company believes that both management and investors
benefit from referring to these non-GAAP financial measures in
assessing its performance and when planning, forecasting and
analyzing future periods. Further, the company believes these
non-GAAP financial measures are useful to investors because they
allow for greater transparency with respect to key financial
metrics that the company uses in making operating decisions and
because the company believes that investors and analysts use them
to help assess the health of its business and for comparison to
other companies. Non-GAAP results are presented for supplemental
informational purposes only for understanding the company’s
operating results. The non-GAAP information should not be
considered a substitute for financial information presented in
accordance with GAAP, and may be different from non-GAAP measures
used by other companies.
With respect to its financial results for the third quarter of
fiscal year 2023, the company has provided below reconciliations of
its non-GAAP financial measures to its most directly comparable
GAAP financial measures. With respect to the company’s expectations
for the fourth quarter of fiscal year 2023, a reconciliation of
non-GAAP gross margin and non-GAAP operating expenses guidance to
the closest corresponding GAAP measure is not available without
unreasonable efforts on a forward-looking basis due to the high
variability and low visibility with respect to the charges excluded
from these non-GAAP measures. We expect the variability of the
above charges to have a significant, and potentially unpredictable,
impact on our future GAAP financial results.
AMBARELLA, INC. |
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
(in thousands, except share and per share
data) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended October 31, |
|
Nine Months Ended October 31, |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
Revenue |
|
$ |
83,096 |
|
|
$ |
92,167 |
|
|
$ |
254,285 |
|
|
$ |
241,627 |
|
|
|
|
|
|
|
|
|
|
Cost of revenue |
|
|
31,418 |
|
|
|
34,541 |
|
|
|
94,996 |
|
|
|
90,817 |
|
Gross profit |
|
|
51,678 |
|
|
|
57,626 |
|
|
|
159,289 |
|
|
|
150,810 |
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
Research and development |
|
|
52,864 |
|
|
|
41,362 |
|
|
|
151,892 |
|
|
|
118,794 |
|
Selling, general and administrative |
|
|
18,944 |
|
|
|
17,475 |
|
|
|
58,213 |
|
|
|
49,323 |
|
|
|
|
|
|
|
|
|
|
Total operating expenses |
|
|
71,808 |
|
|
|
58,837 |
|
|
|
210,105 |
|
|
|
168,117 |
|
|
|
|
|
|
|
|
|
|
Loss from operations |
|
|
(20,130 |
) |
|
|
(1,211 |
) |
|
|
(50,816 |
) |
|
|
(17,307 |
) |
|
|
|
|
|
|
|
|
|
Other income, net |
|
|
1,433 |
|
|
|
407 |
|
|
|
1,493 |
|
|
|
1,218 |
|
|
|
|
|
|
|
|
|
|
Loss before income taxes |
|
|
(18,697 |
) |
|
|
(804 |
) |
|
|
(49,323 |
) |
|
|
(16,089 |
) |
|
|
|
|
|
|
|
|
|
Provision (benefit) for income taxes |
|
|
1,112 |
|
|
|
(1,560 |
) |
|
|
4,958 |
|
|
|
1,129 |
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
(19,809 |
) |
|
$ |
756 |
|
|
$ |
(54,281 |
) |
|
$ |
(17,218 |
) |
|
|
|
|
|
|
|
|
|
Net income (loss) per share attributable to ordinary
shareholders: |
|
|
|
|
|
|
|
Basic |
|
$ |
(0.51 |
) |
|
$ |
0.02 |
|
|
$ |
(1.42 |
) |
|
$ |
(0.47 |
) |
Diluted |
|
$ |
(0.51 |
) |
|
$ |
0.02 |
|
|
$ |
(1.42 |
) |
|
$ |
(0.47 |
) |
Weighted-average shares used to compute net income (loss) per
share |
|
|
|
|
|
|
attributable to ordinary shareholders: |
|
|
|
|
|
|
|
|
Basic |
|
|
38,582,584 |
|
|
|
36,792,187 |
|
|
|
38,185,421 |
|
|
|
36,391,676 |
|
Diluted |
|
|
38,582,584 |
|
|
|
39,046,274 |
|
|
|
38,185,421 |
|
|
|
36,391,676 |
|
|
|
|
|
|
|
|
|
|
The following tables present details of stock-based compensation
and acquisition-related costs included in each functional line item
in the condensed consolidated statements of operations above:
|
|
|
|
|
|
|
|
|
Three Months Ended October 31, |
|
Nine Months Ended October 31, |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
(unaudited, in thousands) |
Stock-based compensation: |
|
|
|
|
|
|
|
Cost of revenue |
$ |
360 |
|
$ |
391 |
|
$ |
1,071 |
|
$ |
1,073 |
Research and development |
|
18,741 |
|
|
13,725 |
|
|
53,775 |
|
|
36,444 |
Selling, general and administrative |
|
9,000 |
|
|
7,937 |
|
|
27,205 |
|
|
22,750 |
|
|
|
|
|
|
|
|
Total stock-based compensation |
$ |
28,101 |
|
$ |
22,053 |
|
$ |
82,051 |
|
$ |
60,267 |
|
|
|
|
|
|
|
|
|
Three Months Ended October 31, |
|
Nine Months Ended October 31, |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
(unaudited, in thousands) |
Acquisition-related costs: |
|
|
|
|
|
|
|
Cost of revenue |
$ |
757 |
|
$ |
146 |
|
$ |
2,271 |
|
$ |
146 |
Research and development |
|
— |
|
|
7 |
|
|
— |
|
|
7 |
Selling, general and administrative |
|
520 |
|
|
1,601 |
|
|
1,578 |
|
|
1,601 |
|
|
|
|
|
|
|
|
Total acquisition-related costs |
$ |
1,277 |
|
$ |
1,754 |
|
$ |
3,849 |
|
$ |
1,754 |
|
|
|
|
|
|
|
|
The difference between GAAP and non-GAAP gross margin was 1.3%
and 0.6%, or $1.1 million and $0.5 million, for the three months
ended October 31, 2022 and October 31, 2021, respectively. The
difference between GAAP and non-GAAP gross margin was 1.4% and
0.5%, or $3.3 million and $1.2 million, for the nine months ended
October 31, 2022 and October 31, 2021, respectively. The
differences were due to the effect of stock-based compensation and
the amortization of acquisition-related costs.
AMBARELLA, INC. |
RECONCILIATION OF GAAP TO NON-GAAP DILUTED EARNINGS
(LOSSES) PER SHARE |
(in thousands, except share and per share
data) |
|
|
|
|
|
|
|
|
|
Three Months Ended October 31, |
|
Nine Months Ended October 31, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
(unaudited) |
GAAP net income (loss) |
$ |
(19,809 |
) |
|
$ |
756 |
|
|
$ |
(54,281 |
) |
|
$ |
(17,218 |
) |
|
|
|
|
|
|
|
|
Non-GAAP adjustments: |
|
|
|
|
|
|
|
Stock-based compensation expense |
|
28,101 |
|
|
|
22,053 |
|
|
|
82,051 |
|
|
|
60,267 |
|
Acquisition-related costs |
|
1,277 |
|
|
|
1,754 |
|
|
|
3,849 |
|
|
|
1,754 |
|
Income tax effect |
|
(104 |
) |
|
|
(2,357 |
) |
|
|
2,525 |
|
|
|
(526 |
) |
Non-GAAP net income |
$ |
9,465 |
|
|
$ |
22,206 |
|
|
$ |
34,144 |
|
|
$ |
44,277 |
|
|
|
|
|
|
|
|
|
GAAP - diluted weighted average shares |
|
38,582,584 |
|
|
|
39,046,274 |
|
|
|
38,185,421 |
|
|
|
36,391,676 |
|
Non-GAAP - diluted weighted average shares |
|
39,090,050 |
|
|
|
39,046,274 |
|
|
|
38,967,335 |
|
|
|
38,390,832 |
|
|
|
|
|
|
|
|
|
GAAP - diluted net loss per share |
$ |
(0.51 |
) |
|
$ |
0.02 |
|
|
$ |
(1.42 |
) |
|
$ |
(0.47 |
) |
Non-GAAP adjustments: |
|
|
|
|
|
|
|
Stock-based compensation expense |
|
0.73 |
|
|
|
0.57 |
|
|
|
2.15 |
|
|
|
1.66 |
|
Acquisition-related costs |
|
0.03 |
|
|
|
0.04 |
|
|
|
0.10 |
|
|
|
0.05 |
|
Income tax effect |
|
— |
|
|
|
(0.06 |
) |
|
|
0.07 |
|
|
|
(0.01 |
) |
Effect of Non-GAAP - diluted weighted average shares |
|
(0.01 |
) |
|
|
— |
|
|
|
(0.02 |
) |
|
|
(0.08 |
) |
Non-GAAP - diluted net income per share |
$ |
0.24 |
|
|
$ |
0.57 |
|
|
$ |
0.88 |
|
|
$ |
1.15 |
|
|
|
|
|
|
|
|
|
AMBARELLA, INC. |
CONDENSED CONSOLIDATED BALANCE SHEETS |
(unaudited, in thousands) |
|
|
|
|
|
|
October 31, |
|
January 31, |
|
|
2022 |
|
2022 |
|
|
|
|
|
|
ASSETS |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
$ |
112,837 |
|
|
$ |
171,043 |
|
Marketable debt securities |
|
86,197 |
|
|
|
— |
|
Accounts receivable, net |
|
48,556 |
|
|
|
44,307 |
|
Inventories |
|
45,395 |
|
|
|
45,219 |
|
Restricted cash |
|
7 |
|
|
|
10 |
|
Prepaid expenses and other current assets |
|
5,338 |
|
|
|
6,169 |
|
Total current assets |
|
298,330 |
|
|
|
266,748 |
|
|
|
|
|
|
Property and equipment, net |
|
10,753 |
|
|
|
10,134 |
|
Deferred tax assets, non-current |
|
14,585 |
|
|
|
15,340 |
|
Intangible assets, net |
|
47,550 |
|
|
|
46,302 |
|
Operating lease right-of-use assets, net |
|
9,186 |
|
|
|
11,127 |
|
Goodwill |
|
303,625 |
|
|
|
303,625 |
|
Other non-current assets |
|
3,428 |
|
|
|
4,269 |
|
|
|
|
|
|
Total assets |
$ |
687,457 |
|
|
$ |
657,545 |
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
Current liabilities: |
|
|
|
|
Accounts payable |
|
29,130 |
|
|
|
31,170 |
|
Accrued and other current liabilities |
|
43,561 |
|
|
|
52,064 |
|
Operating lease liabilities, current |
|
3,425 |
|
|
|
3,391 |
|
Income taxes payable |
|
3,782 |
|
|
|
1,245 |
|
Deferred revenue, current |
|
1,036 |
|
|
|
1,414 |
|
Total current liabilities |
|
80,934 |
|
|
|
89,284 |
|
|
|
|
|
|
Operating lease liabilities, non-current |
|
5,897 |
|
|
|
8,322 |
|
Other long-term liabilities |
|
12,228 |
|
|
|
12,763 |
|
|
|
|
|
|
Total liabilities |
|
99,059 |
|
|
|
110,369 |
|
|
|
|
|
|
Shareholders' equity: |
|
|
|
|
Preference shares |
|
— |
|
|
|
— |
|
Ordinary shares |
|
17 |
|
|
|
17 |
|
Additional paid-in capital |
|
543,833 |
|
|
|
447,287 |
|
Accumulated other comprehensive loss |
|
(1,043 |
) |
|
|
— |
|
Retained earnings |
|
45,591 |
|
|
|
99,872 |
|
Total shareholders’ equity |
|
588,398 |
|
|
|
547,176 |
|
|
|
|
|
|
Total liabilities and shareholders' equity |
$ |
687,457 |
|
|
$ |
657,545 |
|
|
|
|
|
|
Contact:
Louis Gerhardy408.636.2310lgerhardy@ambarella.com
Ambarella (NASDAQ:AMBA)
Historical Stock Chart
From Mar 2024 to Apr 2024
Ambarella (NASDAQ:AMBA)
Historical Stock Chart
From Apr 2023 to Apr 2024