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Cambium Networks
🇺🇸 NASDAQ:CMBM
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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.

Total Revenue
$59.5M
Previous year: $69.3M
-14.1%
EPS
$0.03
Previous year: $0.18
-83.3%
Adjusted EBITDA Margin
4.7%
Previous year: 11.3%
-58.4%
Gross Profit
$29.2M
Previous year: $33.4M
-12.6%
Cash and Equivalents
$32M
Previous year: $45.9M
-30.4%
Free Cash Flow
-$5.19M
Previous year: $8.43M
-161.5%
Total Assets
$280M
Previous year: $235M
+19.3%

Cambium Networks

Cambium Networks

Cambium Networks Revenue by Segment

Cambium Networks 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%.
  • 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

Company Overview

Full financial data and analysis

View Cambium Networks