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Jun 30, 2022

Cambium Networks Q2 2022 Earnings Report

Reported a significant improvement in financial results due to recovering supply chain and easing of Chinese government COVID lockdowns.

Key Takeaways

Cambium Networks reported Q2 2022 revenues of $69.3 million, a 12% sequential increase but a 25% year-over-year decrease. The company's GAAP net income was $2.3 million, or $0.08 per diluted share, while non-GAAP net income was $5.0 million, or $0.18 per diluted share. Adjusted EBITDA stood at $7.8 million, representing 11.3% of revenues.

Revenues of $69.3 million, increased 12% sequentially, and decreased 25% year-over-year

Enterprise Wi-Fi revenues of $24.0 million, increased 55% sequentially and 31% year-over-year

Operating income of $2.7 million, non-GAAP operating income of $6.3 million

Adjusted EBITDA of $7.8 million or 11.3% of revenues

Total Revenue
$69.3M
Previous year: $92.7M
-25.3%
EPS
$0.18
Previous year: $0.45
-60.0%
Adjusted EBITDA Margin
11.3%
Previous year: 19.9%
-43.2%
Gross Profit
$33.4M
Previous year: $46.1M
-27.5%
Cash and Equivalents
$45.9M
Previous year: $51.4M
-10.6%
Free Cash Flow
$8.43M
Previous year: $19M
-55.6%
Total Assets
$235M
Previous year: $217M
+8.2%

Cambium Networks

Cambium Networks

Cambium Networks Revenue by Segment

Cambium Networks Revenue by Geographic Location

Forward Guidance

For the third quarter ending September 30, 2022, Cambium Networks expects revenues between $72.0-$76.0 million, GAAP net income between $1.6-$2.9 million, and adjusted EBITDA between $7.0-$8.7 million.

Positive Outlook

  • Revenues between $72.0-$76.0 million
  • GAAP gross margin between 47.9%-48.9%; and non-GAAP gross margin between 48.5%-49.5%
  • GAAP operating expenses between $32.0-$33.0 million; and non-GAAP operating expenses between $28.9-$29.9 million
  • GAAP operating income between $2.5-$4.2 million; and non-GAAP operating income between $6.1-$7.8 million
  • Adjusted EBITDA between $7.0-$8.7 million; and adjusted EBITDA margin between 9.8%-11.5%

Challenges Ahead

  • Interest expense, net of approximately $0.5 million
  • GAAP net income between $1.6-$2.9 million or between $0.06 and $0.10 per diluted share; and non-GAAP net income between $4.5-$5.8 million or between $0.16 and $0.20 per diluted share
  • GAAP and non-GAAP effective tax rate of approximately 18.0%-20.0%
  • Paydown of debt: $0.7 million
  • Cash flow interest expense: approximately $0.5 million

Revenue & Expenses

Visualization of income flow from segment revenue to net income