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Jun 30, 2024
Cambium Networks Q2 2024 Earnings Report
Cambium Networks' financial performance improved with sequential revenue growth and margin expansion
Key Takeaways
Cambium Networks reported a 9% sequential increase in revenues to $45.9 million for Q2 2024. Gross margins improved, and the company generated positive cash from operations. The Enterprise and Point-to-Multi-Point businesses showed strength. Cambium expects continued financial improvements throughout 2024 by controlling costs and enhancing operating efficiency.
Revenues increased 9% sequentially to $45.9 million.
GAAP gross margin was 31.4%, and non-GAAP gross margin was 33.5%.
GAAP net loss was $9.1 million, or $0.33 per diluted share; non-GAAP net loss was $7.1 million, or $0.25 per diluted share.
Net cash provided by operating activities was $2.4 million, with $42.6 million in cash on the balance sheet.
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.comEurope, Middle East and Africa Revenue
CapyFin.comCaribbean and Latin America Revenue
CapyFin.comAsia Pacific Revenue
CapyFin.com Forward Guidance
For the third quarter ending September 30, 2024, Cambium Networks anticipates revenues between $43.0-$48.0 million, GAAP gross margin between 39.5%-41.5%, GAAP operating loss between $7.7-$9.7 million, and GAAP net loss between $8.0-$9.7 million.
Positive Outlook
- Revenues between $43.0-$48.0 million
- GAAP gross margin between 39.5%-41.5%; and non-GAAP gross margin between 41.5%-43.5%
- GAAP operating expenses between $26.6-$27.6 million; and non-GAAP operating expenses between $23.4-$24.4 million
- Interest expense, net, of approximately $1.6 million
- GAAP effective tax rate not meaningful; and a non-GAAP effective tax benefit of approximately 25%
Challenges Ahead
- GAAP operating loss between $7.7-$9.7 million; and non-GAAP operating loss between $3.6-$5.6 million
- GAAP net loss between $8.0-$9.7 million or a net loss between $0.28 and $0.34 per diluted share; and non-GAAP net loss between $3.8-$5.4 million or a net loss between $0.14 and $0.19 per diluted share
- Adjusted EBITDA loss between $2.4-$4.4 million; and adjusted EBITDA margin between (4.9)%-(10.2%)
- Paydown of debt: $0.7 million; Cash interest expense: approximately $1.5 million
- Capital expenditures: $2.0-$3.0 million
Revenue & Expenses
Visualization of income flow from segment revenue to net income