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Ambarella, Inc. Announces Second Quarter Fiscal Year 2025 Financial Results

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Ambarella, Inc. (NASDAQ: AMBA) reported financial results for Q2 FY2025. Revenue was $63.7 million, up 3% year-over-year. GAAP net loss was $34.9 million, or $0.85 per diluted share. Non-GAAP net loss was $5.5 million, or $0.13 per diluted share. Gross margin (GAAP) was 60.8%, while non-GAAP gross margin was 63.3%.

For Q3 FY2025, Ambarella expects revenue between $77.0-$81.0 million and non-GAAP gross margin between 62.5-64.0%. The company achieved record revenue for edge AI inference products and anticipates double-digit sequential growth in Q3. CEO Fermi Wang noted that company-specific drivers are offsetting the mixed global economic environment, with initial revenue ramps from IoT and Automotive customers.

Ambarella, Inc. (NASDAQ: AMBA) ha riportato i risultati finanziari per il secondo trimestre dell'anno fiscale 2025. I ricavi sono stati di 63.7 milioni di dollari, con un incremento del 3% rispetto all'anno precedente. La perdita netta GAAP è stata di 34.9 milioni di dollari, ossia 0.85 dollari per azione diluita. La perdita netta non-GAAP è stata di 5.5 milioni di dollari, ossia 0.13 dollari per azione diluita. Il margine lordo (GAAP) è stato del 60.8%, mentre il margine lordo non-GAAP è stato del 63.3%.

Per il terzo trimestre dell'anno fiscale 2025, Ambarella prevede ricavi compresi tra 77.0 e 81.0 milioni di dollari e un margine lordo non-GAAP tra il 62.5% e il 64.0%. L'azienda ha raggiunto un ricavo record per i prodotti di inferenza AI edge e si aspetta una crescita sequenziale a doppia cifra nel terzo trimestre. Il CEO Fermi Wang ha sottolineato che i fattori specifici dell'azienda stanno compensando il misto ambiente economico globale, con un'iniziale accelerazione dei ricavi dai clienti IoT e Automotive.

Ambarella, Inc. (NASDAQ: AMBA) reportó los resultados financieros para el segundo trimestre del año fiscal 2025. Los ingresos fueron de 63.7 millones de dólares, un aumento del 3% en comparación con el año anterior. La pérdida neta GAAP fue de 34.9 millones de dólares, o 0.85 dólares por acción diluida. La pérdida neta no-GAAP fue de 5.5 millones de dólares, o 0.13 dólares por acción diluida. El margen bruto (GAAP) fue del 60.8%, mientras que el margen bruto no-GAAP fue del 63.3%.

Para el tercer trimestre del año fiscal 2025, Ambarella espera ingresos entre 77.0 y 81.0 millones de dólares y un margen bruto no-GAAP entre el 62.5% y el 64.0%. La empresa alcanzó ingresos récord para productos de inferencia de IA en el borde y anticipa un crecimiento secuencial de dos dígitos en el tercer trimestre. El CEO Fermi Wang señaló que los impulsores específicos de la empresa están compensando el ambiente económico global mixto, con rampas iniciales de ingresos de clientes de IoT y automotriz.

Ambarella, Inc. (NASDAQ: AMBA)는 2025 회계연도 2분기 재무 결과를 발표했습니다. 수익은 6370만 달러로 작년 대비 3% 증가했습니다. GAAP 기준 순손실은 3490만 달러이며, 희석 주당 0.85 달러입니다. 비GAAP 기준 순손실은 550만 달러이며, 희석 주당 0.13 달러입니다. 총 이익률 (GAAP 기준)은 60.8%였고, 비GAAP 총 이익률은 63.3%였습니다.

2025 회계연도 3분기에 대해 Ambarella는 수익이 7700만 달러에서 8100만 달러 사이가 될 것으로 예상하며, 비GAAP 총 이익률은 62.5%에서 64.0% 사이가 될 것으로 보입니다. 이 회사는 엣지 AI 추론 제품에 대한 기록적인 수익을 달성했으며, 3분기에는 두 자릿수의 순차적 성장을 예상하고 있습니다. CEO Fermi Wang은 회사 고유의 요인이 혼재된 글로벌 경제 환경을 상쇄하고 있으며, IoT 및 자동차 고객으로부터의 초기 수익 상승이 있다고 언급했습니다.

Ambarella, Inc. (NASDAQ: AMBA) a publié ses résultats financiers pour le deuxième trimestre de l'exercice fiscal 2025. Le chiffre d'affaires s'est élevé à 63,7 millions de dollars, soit une augmentation de 3 % par rapport à l'année précédente. La perte nette GAAP s'élevait à 34,9 millions de dollars, soit 0,85 dollar par action diluée. La perte nette non-GAAP était de 5,5 millions de dollars, soit 0,13 dollar par action diluée. La marge brute (GAAP) était de 60,8 %, tandis que la marge brute non-GAAP était de 63,3 %.

Pour le troisième trimestre de l'exercice fiscal 2025, Ambarella prévoit un chiffre d'affaires compris entre 77,0 et 81,0 millions de dollars et une marge brute non-GAAP comprise entre 62,5 et 64,0 %. L'entreprise a réalisé un chiffre d'affaires record pour ses produits d'inférence IA en périphérie et s'attend à une croissance séquentielle à deux chiffres au troisième trimestre. Le PDG Fermi Wang a noté que les moteurs spécifiques à l'entreprise compensent le climat économique mondial mitigé, avec des hausses de revenus initiales provenant des clients IoT et automobile.

Ambarella, Inc. (NASDAQ: AMBA) hat die Finanzergebnisse für das zweite Quartal des Geschäftsjahres 2025 veröffentlicht. Umsatz betrug 63,7 Millionen Dollar, was einem Anstieg von 3% im Jahresvergleich entspricht. GAAP-Nettoverlust betrug 34,9 Millionen Dollar oder 0,85 Dollar pro verwässerter Aktie. Nicht-GAAP-Nettoverlust betrug 5,5 Millionen Dollar oder 0,13 Dollar pro verwässerter Aktie. Bruttomarge (GAAP) betrug 60,8%, während die Nicht-GAAP-Bruttomarge 63,3% betrug.

Für das dritte Quartal 2025 rechnet Ambarella mit einem Umsatz zwischen 77,0 und 81,0 Millionen Dollar und einer Nicht-GAAP-Bruttomarge zwischen 62,5% und 64,0%. Das Unternehmen erzielte Rekordumsätze bei Edge-AI-Inferenzprodukten und erwartet im dritten Quartal ein zweistelliges sequenzielles Wachstum. CEO Fermi Wang bemerkte, dass unternehmensspezifische Faktoren die gemischte globale wirtschaftliche Lage ausgleichen, da es erste Umsatzsteigerungen bei IoT- und Automobilkunden gibt.

Positive
  • Revenue increased 3% year-over-year to $63.7 million in Q2 FY2025
  • Record revenue achieved for edge AI inference products
  • Anticipating double-digit sequential revenue growth for Q3 FY2025
  • Initial revenue ramps from IoT and Automotive customers, especially from new products
  • Q3 FY2025 revenue guidance of $77.0-$81.0 million, indicating strong growth
Negative
  • GAAP net loss increased to $34.9 million in Q2 FY2025 from $31.2 million in Q2 FY2024
  • GAAP gross margin declined to 60.8% from 61.9% year-over-year
  • Non-GAAP gross margin decreased to 63.3% from 64.6% year-over-year
  • Six-month revenue down 5% year-over-year to $118.2 million

Insights

Ambarella's Q2 FY2025 results show mixed signals. Revenue increased 3% YoY to $63.7 million, but the company still reported a GAAP net loss of $34.9 million. The slight revenue growth and narrowing non-GAAP net loss are positive indicators, but the widening GAAP net loss is concerning.

The company's guidance for Q3 FY2025 projects revenue between $77.0 million and $81.0 million, suggesting strong sequential growth. This, coupled with the record revenue for edge AI inference products, indicates potential for future growth. However, investors should remain cautious due to the persistent losses and the mixed global economic environment.

Ambarella's focus on edge AI semiconductors is positioning them well in a growing market. The record revenue for edge AI inference products demonstrates traction in this space. Their strategy to scale from computer vision to more advanced AI networks, including vision-language models and GenAI, shows foresight in addressing rising edge compute needs.

The initial revenue ramps from IoT and Automotive customers, especially from new products, are promising. This diversification could help mitigate risks associated with economic fluctuations. However, the transition from traditional computer vision to more advanced AI applications may require significant R&D investment, potentially impacting profitability in the short term.

Ambarella's performance should be viewed in the context of the semiconductor industry's cyclical nature. The 3% YoY revenue growth amid a challenging global economic environment is noteworthy. The company's cash position of $219.8 million provides a solid foundation for continued R&D and market expansion.

The anticipated double-digit sequential growth for Q3 suggests improving market conditions or gaining market share. However, investors should monitor the company's ability to translate top-line growth into profitability. The shift towards more advanced AI applications could potentially lead to higher-margin products, but execution risks remain. Keep an eye on gross margin trends as an indicator of Ambarella's competitive position and pricing power.

SANTA CLARA, Calif., Aug. 27, 2024 (GLOBE NEWSWIRE) -- Ambarella, Inc. (NASDAQ: AMBA), an edge AI semiconductor company, today announced financial results for its second quarter of fiscal year 2025 ended July 31, 2024.

  • Revenue for the second quarter of fiscal 2025 was $63.7 million, up 3% from $62.1 million in the same period in fiscal 2024. For the six months ended July 31, 2024, revenue was $118.2 million, down 5% from $124.3 million for the six months ended July 31, 2023.
  • Gross margin under U.S. generally accepted accounting principles (GAAP) for the second quarter of fiscal 2025 was 60.8%, compared with 61.9% for the same period in fiscal 2024. For the six months ended July 31, 2024, GAAP gross margin was 60.8%, compared with 61.1% for the six months ended July 31, 2023.
  • GAAP net loss for the second quarter of fiscal 2025 was $34.9 million, or loss per diluted ordinary share of $0.85, compared with GAAP net loss of $31.2 million, or loss per diluted ordinary share of $0.79, for the same period in fiscal 2024. GAAP net loss for the six months ended July 31, 2024 was $72.8 million or loss per diluted ordinary share of $1.78. This compares with GAAP net loss of $67.1 million, or loss per diluted ordinary share of $1.70, for the six months ended July 31, 2023.

Financial results on a non-GAAP basis for the second quarter of fiscal 2025 are as follows:

  • Gross margin on a non-GAAP basis for the second quarter of fiscal 2025 was 63.3%, compared with 64.6% for the same period in fiscal 2024. For the six months ended July 31, 2024, non-GAAP gross margin was 63.3%, compared with 63.8% for the six months ended July 31, 2023.
  • Non-GAAP net loss for the second quarter of fiscal 2025 was $5.5 million, or loss per diluted ordinary share of $0.13. This compares with non-GAAP net loss of $6.0 million, or loss per diluted ordinary share of $0.15, for the same period in fiscal 2024. Non-GAAP net loss for the six months ended July 31, 2024 was $16.0 million, or loss per diluted ordinary share of $0.39. This compares with non-GAAP net loss of $12.1 million, or loss per diluted ordinary share of $0.31, for the six months ended July 31, 2023.

Based on information available as of today, Ambarella is offering the following guidance for the third quarter of fiscal year 2025, ending October 31, 2024:

  • Revenue is expected to be between $77.0 million and $81.0 million.
  • Gross margin on a non-GAAP basis is expected to be between 62.5% and 64.0%.
  • Operating expenses on a non-GAAP basis are expected to be between $49.0 million and $51.0 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 2025 was $219.8 million, compared with $203.3 million at the end of the prior quarter and $216.5 million at the end of the same quarter a year ago.

“In our second quarter, we achieved record revenue for our edge AI inference products, and we are anticipating double-digit sequential growth in our total revenue for the third quarter,” said Fermi Wang, President and CEO. “Company specific drivers are more than offsetting the mixed global economic environment. We are now realizing initial revenue ramps from certain IoT and Automotive customers, especially from our new products. We are increasingly optimistic that over the long-run our new products have positioned us to scale our current computer vision business into more advanced AI networks, including vision-language models and GenAI, where rising edge compute needs can drive revenue growth in the years to come.”

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 John Young, Chief Financial Officer, to discuss the second quarter of fiscal year 2025 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 2025 ending October 31, 2024, and the comments of our CEO relating to our expectation of future revenue growth, customer demand for our AI inference products, the growth potential of our new products, potential drivers of future revenue growth, and the ability of our products to achieve success in advanced networks, including vision-language models and GenAI. 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 inference applications; our ability to introduce, and to generate revenue from, new and enhanced solutions; our ability to develop, and to generate revenue from, new advanced technologies, such as computer vision, AI functionality and advanced networks, including vision-language models and GenAI; 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 2024 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, 2024 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 2025, 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 2025, 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,
   2024   2023   2024   2023 
     
Revenue $63,724  $62,121  $118,197  $124,263 
         
Cost of revenue  24,983   23,659   46,296   48,282 
Gross profit  38,741   38,462   71,901   75,981 
         
Operating expenses:        
Research and development  56,760   54,917   110,897   109,358 
Selling, general and administrative  18,268   18,884   36,736   37,504 
         
Total operating expenses  75,028   73,801   147,633   146,862 
         
Loss from operations  (36,287)  (35,339)  (75,732)  (70,881)
         
Other income, net  2,145   737   4,416   2,023 
         
Loss before income taxes  (34,142)  (34,602)  (71,316)  (68,858)
         
Provision (benefit) for income taxes  747   (3,404)  1,505   (1,758)
         
Net loss $(34,889) $(31,198) $(72,821) $(67,100)
         
Net loss per share attributable to ordinary shareholders:       
Basic $(0.85) $(0.79) $(1.78) $(1.70)
Diluted $(0.85) $(0.79) $(1.78) $(1.70)
Weighted-average shares used to compute net loss per share       
attributable to ordinary shareholders:        
Basic  41,129,754   39,736,704   40,952,373   39,538,748 
Diluted  41,129,754   39,736,704   40,952,373   39,538,748 
     

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,
  2024   2023   2024   2023 
 (unaudited, in thousands)
Stock-based compensation:       
Cost of revenue$833  $885  $1,440  $1,826 
Research and development 18,395   18,550   36,016   36,911 
Selling, general and administrative 8,384   8,687   16,192   16,650 
        
Total stock-based compensation$27,612  $28,122  $53,648  $55,387 


 Three Months Ended July 31, Six Months Ended July 31,
  2024   2023   2024   2023 
 (unaudited, in thousands)
Acquisition-related costs:       
Cost of revenue$757  $757  $1,514  $1,514 
Research and development           
Selling, general and administrative 530   520   1,050   1,040 
        
Total acquisition-related costs$1,287  $1,277  $2,564  $2,554 
        

The difference between GAAP and non-GAAP gross margin was 2.5% and 2.7%, or $1.6 million and $1.6 million, for the three months ended July 31, 2024 and July 31, 2023, respectively. The difference between GAAP and non-GAAP gross margin was 2.5% and 2.7%, or $3.0 million and $3.3 million, for the six months ended July 31, 2024 and July 31, 2023, 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 LOSSES PER SHARE
(in thousands, except share and per share data)
        
 Three Months Ended July 31, Six Months Ended July 31,
  2024   2023   2024   2023 
 (unaudited)
GAAP net loss$(34,889) $(31,198) $(72,821) $(67,100)
        
Non-GAAP adjustments:       
Stock-based compensation expense 27,612   28,122   53,648   55,387 
Acquisition-related costs 1,287   1,277   2,564   2,554 
Income tax effect 448   (4,237)  600   (2,904)
Non-GAAP net loss$(5,542) $(6,036) $(16,009) $(12,063)
        
GAAP - diluted weighted average shares 41,129,754   39,736,704   40,952,373   39,538,748 
Non-GAAP - diluted weighted average shares 41,129,754   39,736,704   40,952,373   39,538,748 
        
GAAP - diluted net loss per share$(0.85) $(0.79) $(1.78) $(1.70)
Non-GAAP adjustments:       
Stock-based compensation expense 0.68   0.71   1.32   1.40 
Acquisition-related costs 0.03   0.03   0.06   0.06 
Income tax effect 0.01   (0.10)  0.01   (0.07)
Effect of Non-GAAP - diluted weighted average shares           
Non-GAAP - diluted net loss per share$(0.13) $(0.15) $(0.39) $(0.31)
        


AMBARELLA, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited, in thousands)
    
 July 31, January 31,
  2024   2024 
    
ASSETS   
Current assets:   
Cash and cash equivalents$153,925  $144,914 
Marketable debt securities 65,880   75,013 
Accounts receivable, net 23,160   24,950 
Inventories 30,660   29,043 
Restricted cash 7   7 
Prepaid expenses and other current assets 6,051   6,230 
Total current assets 279,683   280,157 
    
Property and equipment, net 9,042   10,439 
Deferred tax assets 163   234 
Intangible assets, net 48,404   55,136 
Operating lease right-of-use assets, net 6,744   5,250 
Goodwill 303,625   303,625 
Other non-current assets 2,673   2,814 
    
Total assets$650,334  $657,655 
    
LIABILITIES AND SHAREHOLDERS' EQUITY   
Current liabilities:   
Accounts payable 19,443   28,503 
Accrued and other current liabilities 62,400   48,598 
Operating lease liabilities, current 3,652   3,443 
Income taxes payable 809   1,541 
Deferred revenue, current 5,152   894 
Total current liabilities 91,456   82,979 
    
Operating lease liabilities, non-current 3,101   1,896 
Other long-term liabilities 8,226   12,909 
    
Total liabilities 102,783   97,784 
    
Shareholders' equity:   
Preference shares     
Ordinary shares 19   18 
Additional paid-in capital 755,449   694,967 
Accumulated other comprehensive loss (165)  (183)
Accumulated deficit (207,752)  (134,931)
Total shareholders’ equity 547,551   559,871 
    
Total liabilities and shareholders' equity$650,334  $657,655 
    

Contact:

Louis Gerhardy
408.636.2310
lgerhardy@ambarella.com


FAQ

What was Ambarella's (AMBA) revenue for Q2 FY2025?

Ambarella's revenue for Q2 FY2025 was $63.7 million, up 3% from $62.1 million in the same period of fiscal 2024.

What is Ambarella's (AMBA) revenue guidance for Q3 FY2025?

Ambarella expects revenue for Q3 FY2025 to be between $77.0 million and $81.0 million.

What was Ambarella's (AMBA) GAAP net loss for Q2 FY2025?

Ambarella reported a GAAP net loss of $34.9 million, or $0.85 per diluted share, for Q2 FY2025.

How much cash did Ambarella (AMBA) have at the end of Q2 FY2025?

Ambarella had total cash, cash equivalents, and marketable debt securities of $219.8 million at the end of Q2 FY2025.

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