Bay Street News

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

SANTA CLARA, Calif., May 30, 2024 (GLOBE NEWSWIRE) — Ambarella, Inc. (NASDAQ: AMBA), an edge AI semiconductor company, today announced financial results for its first quarter of fiscal year 2025 ended April 30, 2024.

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

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

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 first quarter of fiscal 2025 was $203.3 million, compared with $219.9 million at the end of the prior quarter and $227.4 million at the end of the same quarter a year ago.

“We are seeing early signs for the proliferation of AI inferencing at the network edge, and the breadth of our customer engagements is consistent with this, which should create a foundation of multiple applications for revenue growth. We now have our first win at an EV passenger vehicle OEM with our CV3-AD family of AI domain controllers, we added another CV3-AD win in commercial vehicles, and we gained multiple AI inference wins in the IoT market,” said Fermi Wang, President and CEO. “We continue to anticipate revenue growth in fiscal 2025 driven by both a cyclical tailwind as our customers’ inventory levels normalize and the secular growth of our AI inference portfolio.”

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 first 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 second quarter of fiscal year 2025 ending July 31, 2024, and the comments of our CEO relating to our expectation of future revenue growth, customer demand for our AI inference products, potential drivers of future revenue growth, and the normalization of customer inventory levels. 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 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 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 first fiscal quarter ended April 30, 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 first 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 second 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.

Contact:

Louis Gerhardy
408.636.2310
lgerhardy@ambarella.com

 
AMBARELLA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
(unaudited)
       
  Three Months Ended April 30,
    2024       2023  
   
Revenue $ 54,473     $ 62,142  
       
Cost of revenue   21,313       24,623  
Gross profit   33,160       37,519  
Operating expenses:      
Research and development   54,137       54,441  
Selling, general and administrative   18,468       18,620  
       
Total operating expenses   72,605       73,061  
Loss from operations   (39,445 )     (35,542 )
Other income, net   2,271       1,286  
       
Loss before income taxes   (37,174 )     (34,256 )
Provision for income taxes   758       1,646  
       
Net loss $ (37,932 )   $ (35,902 )
       
Net loss per share attributable to ordinary shareholders:      
Basic $ (0.93 )   $ (0.91 )
Diluted $ (0.93 )   $ (0.91 )
Weighted-average shares used to compute net loss per share      
attributable to ordinary shareholders:      
Basic   40,774,991       39,340,791  
Diluted   40,774,991       39,340,791  
       

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 April 30,  
    2024     2023  
  (unaudited, in thousands)  
Stock-based compensation:        
Cost of revenue $ 607   $ 941  
Research and development   17,621     18,361  
Selling, general and administrative   7,808     7,963  
         
Total stock-based compensation $ 26,036   $ 27,265  
         
  Three Months Ended April 30,
    2024     2023  
  (unaudited, in thousands)
Acquisition-related costs:      
Cost of revenue $ 757   $ 757  
Research and development        
Selling, general and administrative   520     520  
       
Total acquisition-related costs $ 1,277   $ 1,277  
       
       

The difference between GAAP and non-GAAP gross margin was 2.5% and 2.7%, or $1.4 million and $1.7 million, for the three months ended April 30, 2024 and April 30, 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 EARNINGS (LOSSES) PER SHARE
(in thousands, except share and per share data)
       
  Three Months Ended April 30,
    2024       2023  
  (unaudited)
GAAP net loss $ (37,932 )   $ (35,902 )
       
Non-GAAP adjustments:      
Stock-based compensation expense   26,036       27,265  
Acquisition-related costs   1,277       1,277  
Income tax effect   152       1,333  
Non-GAAP net income (loss) $ (10,467 )   $ (6,027 )
       
GAAP – diluted weighted average shares   40,774,991       39,340,791  
Non-GAAP – diluted weighted average shares   40,774,991       39,340,791  
       
GAAP – diluted net loss per share $ (0.93 )   $ (0.91 )
Non-GAAP adjustments:      
Stock-based compensation expense   0.64       0.69  
Acquisition-related costs   0.03       0.03  
Income tax effect         0.04  
Effect of Non-GAAP – diluted weighted average shares          
Non-GAAP – diluted net income (loss) per share $ (0.26 )   $ (0.15 )
       
AMBARELLA, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited, in thousands)
       
  April 30,   January 31,
    2024       2024  
       
ASSETS      
Current assets:      
Cash and cash equivalents $ 131,810     $ 144,914  
Marketable debt securities   71,537       75,013  
Accounts receivable, net   28,299       24,950  
Inventories   28,325       29,043  
Restricted cash   7       7  
Prepaid expenses and other current assets   6,929       6,230  
Total current assets   266,907       280,157  
       
Property and equipment, net   9,763       10,439  
Deferred tax assets, non-current   115       234  
Intangible assets, net   51,099       55,136  
Operating lease right-of-use assets, net   4,324       5,250  
Goodwill   303,625       303,625  
Other non-current assets   2,827       2,814  
       
Total assets $ 638,660     $ 657,655  
       
LIABILITIES AND SHAREHOLDERS’ EQUITY      
Current liabilities:      
Accounts payable   16,470       28,503  
Accrued and other current liabilities   49,714       48,598  
Operating lease liabilities, current   3,148       3,443  
Income taxes payable   904       1,541  
Deferred revenue, current   2,009       894  
Total current liabilities   72,245       82,979  
       
Operating lease liabilities, non-current   1,243       1,896  
Other long-term liabilities   9,747       12,909  
       
Total liabilities   83,235       97,784  
       
Shareholders’ equity:      
Preference shares          
Ordinary shares   18       18  
Additional paid-in capital   728,842       694,967  
Accumulated other comprehensive loss   (572 )     (183 )
Accumulated deficit   (172,863 )     (134,931 )
Total shareholders’ equity   555,425       559,871  
       
Total liabilities and shareholders’ equity $ 638,660     $ 657,655  
       


Bay Street News