Ambarella, Inc. (NASDAQ: AMBA), an edge AI semiconductor company,
today announced financial results for its second quarter of fiscal
year 2024 ended July 31, 2023.
- Revenue for the second quarter of fiscal 2024 was $62.1
million, down 23% from $80.9 million in the same period in fiscal
2023. For the six months ended July 31, 2023, revenue was $124.3
million, down 27% from $171.2 million for the six months ended July
31, 2022.
- Gross margin under U.S. generally accepted accounting
principles (GAAP) for the second quarter of fiscal 2024 was 61.9%,
compared with 63.1% for the same period in fiscal 2023. For the six
months ended July 31, 2023, GAAP gross margin was 61.1%, compared
with 62.9% for the six months ended July 31, 2022.
- GAAP net loss for the second quarter of fiscal 2024 was $31.2
million, or loss per diluted ordinary share of $0.79, compared with
GAAP net loss of $23.7 million, or loss per diluted ordinary share
of $0.62, for the same period in fiscal 2023. GAAP net loss for the
six months ended July 31, 2023 was $67.1 million, or loss per
diluted ordinary share of $1.70. This compares with GAAP net loss
of $34.5 million, or loss per diluted ordinary share of $0.91, for
the six months ended July 31, 2022.
Financial results on a non-GAAP basis for the second quarter of
fiscal 2024 are as follows:
- Gross margin on a non-GAAP basis for the second quarter of
fiscal 2024 was 64.6%, compared with 64.5% for the same period in
fiscal 2023. For the six months ended July 31, 2023, non-GAAP gross
margin was 63.8%, compared with 64.2% for the six months ended July
31, 2022.
- Non-GAAP net loss for the second quarter of fiscal 2024 was
$6.0 million, or loss per diluted ordinary share of $0.15. This
compares with non-GAAP net income of $7.6 million, or earnings per
diluted ordinary share of $0.20, for the same period in fiscal
2023. Non-GAAP net loss for the six months ended July 31, 2023 was
$12.1 million, or loss per diluted ordinary share of $0.31. This
compares with non-GAAP net income of $24.7 million, or earnings per
diluted ordinary share of $0.63, for the six months ended July 31,
2022.
Based on information available as of today, Ambarella is
offering the following guidance for the third quarter of fiscal
year 2024, ending October 31, 2023:
- Revenue is expected to be $50.0 million plus or minus 4%.
- Gross margin on a non-GAAP basis is expected to be between
62.0% 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. Non-GAAP financial information
also excludes the impact of the release of a valuation allowance on
certain deferred tax assets. 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 second quarter of fiscal 2024 was $216.5
million, compared with $227.4 million at the end of the prior
quarter and $197.9 million at the end of the same quarter a year
ago.
“The near-term environment is very challenging, as customers are
now more aggressively reducing their inventory, and we are now
seeing some pockets of weak end-market demand, which further
complicates our customers’ efforts to reduce their inventory. We
anticipate our customers’ inventory levels will normalize by the
end of the year and set us up for a return to growth in the next
fiscal year,” said Fermi Wang, President and CEO. “Our mid to
long-term outlook for our AI inference processor business remains
positive. Our R&D is focused on technology and products
targeting more sophisticated AI inference workloads, and we are
well established having shipped more than 17 million AI inference
processors cumulatively.”
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 second quarter of fiscal year 2024 results. 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 vision
and edge AI 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 and radar
processing, and powerful deep neural network processing to enable
intelligent perception, fusion and planning. 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 third quarter of fiscal
year 2024 ending October 31, 2023, and the comments of our CEO
relating to near-term challenges associated with our customer
efforts to reduce inventory and pockets of weak end-market demand,
our anticipated future return to revenue growth and the mid to
long-term outlook for our AI inference processor business. 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, global economic and political conditions, including
possible trade tariffs and restrictions; revenue being generated
from new customers or design wins, neither of which is assured; the
commercial success of our customers’ products; our customers’
ability to manage their inventory requirements; our growth
strategy; our ability to anticipate future market demands and
future needs of our customers, particularly for AI computer vision
applications; our ability to introduce new and enhanced solutions;
our ability to develop, and to generate revenue from, new advanced
technologies, such as computer vision and AI 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; risks associated
with global health conditions and associated risk mitigation
measures; 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 2023 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 second fiscal
quarter ended July 31, 2023 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 second quarter of
fiscal year 2024, 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 third quarter of fiscal year 2024, 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 July 31, |
|
Six Months Ended July 31, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
Revenue |
|
$ |
62,121 |
|
|
$ |
80,884 |
|
|
$ |
124,263 |
|
|
$ |
171,189 |
|
|
|
|
|
|
|
|
|
|
Cost of revenue |
|
|
23,659 |
|
|
|
29,820 |
|
|
|
48,282 |
|
|
|
63,578 |
|
Gross profit |
|
|
38,462 |
|
|
|
51,064 |
|
|
|
75,981 |
|
|
|
107,611 |
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
Research and development |
|
|
54,917 |
|
|
|
52,338 |
|
|
|
109,358 |
|
|
|
99,028 |
|
Selling, general and administrative |
|
|
18,884 |
|
|
|
18,914 |
|
|
|
37,504 |
|
|
|
39,269 |
|
|
|
|
|
|
|
|
|
|
Total operating expenses |
|
|
73,801 |
|
|
|
71,252 |
|
|
|
146,862 |
|
|
|
138,297 |
|
|
|
|
|
|
|
|
|
|
Loss from operations |
|
|
(35,339 |
) |
|
|
(20,188 |
) |
|
|
(70,881 |
) |
|
|
(30,686 |
) |
|
|
|
|
|
|
|
|
|
Other income (expense), net |
|
|
737 |
|
|
|
(26 |
) |
|
|
2,023 |
|
|
|
60 |
|
|
|
|
|
|
|
|
|
|
Loss before income taxes |
|
|
(34,602 |
) |
|
|
(20,214 |
) |
|
|
(68,858 |
) |
|
|
(30,626 |
) |
|
|
|
|
|
|
|
|
|
Provision (benefit) for income taxes |
|
|
(3,404 |
) |
|
|
3,436 |
|
|
|
(1,758 |
) |
|
|
3,846 |
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(31,198 |
) |
|
$ |
(23,650 |
) |
|
$ |
(67,100 |
) |
|
$ |
(34,472 |
) |
|
|
|
|
|
|
|
|
|
Net loss per share attributable to ordinary shareholders: |
|
|
|
|
|
|
|
Basic |
|
$ |
(0.79 |
) |
|
$ |
(0.62 |
) |
|
$ |
(1.70 |
) |
|
$ |
(0.91 |
) |
Diluted |
|
$ |
(0.79 |
) |
|
$ |
(0.62 |
) |
|
$ |
(1.70 |
) |
|
$ |
(0.91 |
) |
Weighted-average shares used to compute net loss per share |
|
|
|
|
|
|
|
attributable to ordinary shareholders: |
|
|
|
|
|
|
|
|
Basic |
|
|
39,736,704 |
|
|
|
38,258,341 |
|
|
|
39,538,748 |
|
|
|
37,986,839 |
|
Diluted |
|
|
39,736,704 |
|
|
|
38,258,341 |
|
|
|
39,538,748 |
|
|
|
37,986,839 |
|
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 July 31, |
|
Six Months Ended July 31, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
(unaudited, in thousands) |
Stock-based compensation: |
|
|
|
|
|
|
|
|
Cost of revenue |
|
$ |
885 |
|
|
$ |
362 |
|
|
$ |
1,826 |
|
|
$ |
711 |
|
Research and development |
|
|
18,550 |
|
|
|
17,883 |
|
|
|
36,911 |
|
|
|
35,034 |
|
Selling, general and administrative |
|
|
8,687 |
|
|
|
8,664 |
|
|
|
16,650 |
|
|
|
18,205 |
|
|
|
|
|
|
|
|
|
|
Total stock-based compensation |
|
$ |
28,122 |
|
|
$ |
26,909 |
|
|
$ |
55,387 |
|
|
$ |
53,950 |
|
|
|
Three Months Ended July 31, |
|
Six Months Ended July 31, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
(unaudited, in thousands) |
Acquisition-related costs: |
|
|
|
|
|
|
|
|
Cost of revenue |
|
$ |
757 |
|
|
$ |
757 |
|
|
$ |
1,514 |
|
|
$ |
1,514 |
|
Research and development |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Selling, general and administrative |
|
|
520 |
|
|
|
522 |
|
|
|
1,040 |
|
|
|
1,058 |
|
|
|
|
|
|
|
|
|
|
Total acquisition-related costs |
|
$ |
1,277 |
|
|
$ |
1,279 |
|
|
$ |
2,554 |
|
|
$ |
2,572 |
|
The difference between GAAP and non-GAAP gross
margin was 2.7% and 1.4%, or $1.6 million and $1.1 million, for the
three months ended July 31, 2023 and July 31, 2022, respectively.
The difference between GAAP and non-GAAP gross margin was 2.7% and
1.3%, or $3.3 million and $2.2 million, for the six months ended
July 31, 2023 and July 31, 2022, 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 July 31, |
|
Six Months Ended July 31, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
(unaudited) |
GAAP net loss |
|
$ |
(31,198 |
) |
|
$ |
(23,650 |
) |
|
$ |
(67,100 |
) |
|
$ |
(34,472 |
) |
|
|
|
|
|
|
|
|
|
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
Stock-based compensation expense |
|
|
28,122 |
|
|
|
26,909 |
|
|
|
55,387 |
|
|
|
53,950 |
|
Acquisition-related costs |
|
|
1,277 |
|
|
|
1,279 |
|
|
|
2,554 |
|
|
|
2,572 |
|
Income tax effect |
|
|
(4,237 |
) |
|
|
3,075 |
|
|
|
(2,904 |
) |
|
|
2,629 |
|
Non-GAAP net income (loss) |
|
$ |
(6,036 |
) |
|
$ |
7,613 |
|
|
$ |
(12,063 |
) |
|
$ |
24,679 |
|
|
|
|
|
|
|
|
|
|
GAAP – diluted weighted average shares |
|
|
39,736,704 |
|
|
|
38,258,341 |
|
|
|
39,538,748 |
|
|
|
37,986,839 |
|
Non-GAAP – diluted weighted average shares |
|
|
39,736,704 |
|
|
|
38,809,422 |
|
|
|
39,538,748 |
|
|
|
38,905,976 |
|
|
|
|
|
|
|
|
|
|
GAAP – diluted net loss per share |
|
$ |
(0.79 |
) |
|
$ |
(0.62 |
) |
|
$ |
(1.70 |
) |
|
$ |
(0.91 |
) |
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
Stock-based compensation expense |
|
|
0.71 |
|
|
|
0.71 |
|
|
|
1.40 |
|
|
|
1.42 |
|
Acquisition-related costs |
|
|
0.03 |
|
|
|
0.03 |
|
|
|
0.06 |
|
|
|
0.07 |
|
Income tax effect |
|
|
(0.10 |
) |
|
|
0.08 |
|
|
|
(0.07 |
) |
|
|
0.07 |
|
Effect of Non-GAAP – diluted weighted average shares |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.02 |
) |
Non-GAAP – diluted net income (loss) per share |
|
$ |
(0.15 |
) |
|
$ |
0.20 |
|
|
$ |
(0.31 |
) |
|
$ |
0.63 |
|
AMBARELLA, INC. |
CONDENSED CONSOLIDATED BALANCE SHEETS |
(unaudited, in thousands) |
|
|
|
|
|
|
|
July 31, |
|
January 31, |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
|
|
|
ASSETS |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
|
$ |
122,515 |
|
|
$ |
113,541 |
|
Marketable debt securities |
|
|
93,997 |
|
|
|
93,322 |
|
Accounts receivable, net |
|
|
30,158 |
|
|
|
51,987 |
|
Inventories |
|
|
34,770 |
|
|
|
40,486 |
|
Restricted cash |
|
|
8 |
|
|
|
8 |
|
Prepaid expenses and other current assets |
|
|
5,199 |
|
|
|
5,288 |
|
Total current assets |
|
|
286,647 |
|
|
|
304,632 |
|
|
|
|
|
|
Property and equipment, net |
|
|
11,246 |
|
|
|
11,814 |
|
Deferred tax assets, non-current |
|
|
22,184 |
|
|
|
19,276 |
|
Intangible assets, net |
|
|
63,121 |
|
|
|
58,497 |
|
Operating lease right-of-use assets, net |
|
|
6,626 |
|
|
|
8,339 |
|
Goodwill |
|
|
303,625 |
|
|
|
303,625 |
|
Other non-current assets |
|
|
2,795 |
|
|
|
4,012 |
|
|
|
|
|
|
Total assets |
|
$ |
696,244 |
|
|
$ |
710,195 |
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
Current liabilities: |
|
|
|
|
Accounts payable |
|
|
11,943 |
|
|
|
17,845 |
|
Accrued and other current liabilities |
|
|
54,032 |
|
|
|
56,655 |
|
Operating lease liabilities, current |
|
|
3,548 |
|
|
|
3,539 |
|
Income taxes payable |
|
|
2,458 |
|
|
|
4,112 |
|
Deferred revenue, current |
|
|
2,709 |
|
|
|
1,311 |
|
Total current liabilities |
|
|
74,690 |
|
|
|
83,462 |
|
|
|
|
|
|
Operating lease liabilities, non-current |
|
|
3,216 |
|
|
|
5,097 |
|
Other long-term liabilities |
|
|
16,020 |
|
|
|
15,548 |
|
|
|
|
|
|
Total liabilities |
|
|
93,926 |
|
|
|
104,107 |
|
|
|
|
|
|
Shareholders' equity: |
|
|
|
|
Preference shares |
|
|
— |
|
|
|
— |
|
Ordinary shares |
|
|
18 |
|
|
|
18 |
|
Additional paid-in capital |
|
|
635,844 |
|
|
|
572,076 |
|
Accumulated other comprehensive loss |
|
|
(930 |
) |
|
|
(492 |
) |
Retained earnings (accumulated deficit) |
|
|
(32,614 |
) |
|
|
34,486 |
|
Total shareholders’ equity |
|
|
602,318 |
|
|
|
606,088 |
|
|
|
|
|
|
Total liabilities and shareholders' equity |
|
$ |
696,244 |
|
|
$ |
710,195 |
|
Contact:
Louis
Gerhardy408.636.2310lgerhardy@ambarella.com
Ambarella (NASDAQ:AMBA)
Graphique Historique de l'Action
De Avr 2024 à Mai 2024
Ambarella (NASDAQ:AMBA)
Graphique Historique de l'Action
De Mai 2023 à Mai 2024