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Jul 31, 2023

Ambarella Q2 2024 Earnings Report

Revenue decreased by 23% year-over-year, with a GAAP net loss of $31.2 million.

Key Takeaways

Ambarella reported a challenging Q2 fiscal year 2024, with revenue declining by 23% compared to the previous year. The company experienced a GAAP net loss of $31.2 million, and anticipates customer inventory levels to normalize by the end of the year, setting the stage for a potential return to growth in the next fiscal year.

Revenue for Q2 fiscal year 2024 was $62.1 million, a 23% decrease from $80.9 million in the same period last year.

GAAP net loss for Q2 fiscal year 2024 was $31.2 million, or $0.79 loss per diluted ordinary share, compared to a $23.7 million loss, or $0.62 loss per share, in the previous year.

Non-GAAP net loss for Q2 fiscal year 2024 was $6.0 million, or $0.15 loss per diluted ordinary share, compared to a non-GAAP net income of $7.6 million, or $0.20 earnings per diluted ordinary share, in the same period last year.

The company anticipates customer inventory levels will normalize by the end of the year and set us up for a return to growth in the next fiscal year.

Total Revenue
$62.1M
Previous year: $80.9M
-23.2%
EPS
-$0.15
Previous year: $0.2
-175.0%
Gross Margin
61.9%
Non-GAAP Gross Margin
64.6%
Gross Profit
$38.5M
Previous year: $51.1M
-24.7%
Cash and Equivalents
$123M
Previous year: $195M
-37.2%
Total Assets
$696M
Previous year: $674M
+3.2%

Ambarella

Ambarella

Forward Guidance

Ambarella expects revenue to be $50.0 million plus or minus 4%, and non-GAAP gross margin to be between 62.0% and 64.0% for the third quarter of fiscal year 2024.

Positive Outlook

  • 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%.

Challenges Ahead

  • Operating expenses on a non-GAAP basis are expected to be between $46.0 million and $49.0 million.