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Jun 30, 2023
Cambium Networks Q2 2023 Earnings Report
Cambium Networks reported a disappointing second quarter due to lower Enterprise product demand and a challenging macroeconomic environment, while also announcing Morgan Kurk as the new President & CEO.
Key Takeaways
Cambium Networks reported revenues of $59.5 million for Q2 2023, a decrease of 23% sequentially and an increase of 14% year-over-year. The company experienced a GAAP net loss of $2.6 million, or $0.10 per diluted share, and a non-GAAP net income of $0.9 million, or $0.03 per diluted share. Morgan Kurk was appointed as the new President and CEO.
Revenues decreased 23% sequentially and increased 14% year-over-year, totaling $59.5 million.
Record Point-to-Point revenues reached $25.1 million, up 39% sequentially and 60% year-over-year.
GAAP net loss was $2.6 million or $0.10 per diluted share, while non-GAAP net income was $0.9 million or $0.03 per diluted share.
Adjusted EBITDA was $2.8 million, representing 4.7% of revenues.
Cambium Networks
Cambium Networks
Cambium Networks Revenue by Segment
Cambium Networks Revenue by Geographic Location
Revenue by Segment
Point-to-Multi-Point Revenue
CapyFin.comPoint-to-Point Revenue
CapyFin.comOther Revenue
CapyFin.comRevenue by Geographic Location
North America Revenue
CapyFin.comCaribbean and Latin America Revenue
CapyFin.comAsia Pacific Revenue
CapyFin.com Forward Guidance
Cambium Networks provided financial outlook for the third quarter ending September 30, 2023, with revenues expected to be between $62.0-$70.0 million.
Positive Outlook
- Revenues between $62.0-$70.0 million.
- GAAP gross margin between 48.7%-50.2%; and non-GAAP gross margin between 49.8%-51.3%.
- GAAP operating (loss) income between ($0.3)-$3.6 million; and non-GAAP operating income between $5.2-$9.2 million.
- GAAP net (loss) income between $(0.8)-$2.4 million or between ($0.03) and $0.08 per diluted share; and non-GAAP net income between $3.7-$6.9 million or between $0.13 and $0.25 per diluted share.
- Adjusted EBITDA between $6.3-$10.3 million; and adjusted EBITDA margin between 10.2%-14.8%.
Challenges Ahead
- GAAP operating expenses between $30.5-$31.5 million; and non-GAAP operating expenses between $25.6-$26.6 million.
- Interest expense, net of approximately $0.7 million
- GAAP effective tax rate of approximately 0.0%; and non-GAAP effective tax rate of approximately 17.0%-21.0%.
- Paydown of debt: $0.7 million
- Capital expenditures: $4.0-$4.5 million
Revenue & Expenses
Visualization of income flow from segment revenue to net income