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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.
Revenue by Segment
Revenue by Geographic Location
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%.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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