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Sep 30, 2022
Cambium Networks Q3 2022 Earnings Report
Reported strong results with higher than anticipated revenues, increased gross margin, and solid profitability.
Key Takeaways
Cambium Networks reported Q3 2022 financial results with revenues of $81.2 million, a 7% increase year-over-year. The company's GAAP net income was $9.4 million, or $0.34 per diluted share, while non-GAAP net income was $11.3 million, or $0.40 per diluted share. Adjusted EBITDA was $14.7 million, representing 18.2% of revenues.
Revenues of $81.2 million, increased 17% sequentially, and 7% year-over-year
Record Enterprise (Wi-Fi) revenues of $38.3 million, increased 60% sequentially and 257% year-over-year
GAAP net income of $9.4 million or $0.34 per diluted share, non-GAAP net income of $11.3 million or $0.40 per diluted share, compared to GAAP net income of $4.6 million or $0.16 per diluted share, and non-GAAP net income of $6.7 million or $0.23 per diluted share for the third quarter 2021.
Adjusted EBITDA of $14.7 million or 18.2% of revenues, compared to $9.6 million or 12.6% of revenues for the third quarter 2021.
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
For the fourth quarter ending December 31, 2022, Cambium Networks expects revenues between $80.0-$84.0 million, GAAP operating income between $4.8-$6.5 million, and adjusted EBITDA between $9.5-$11.3 million.
Positive Outlook
- Revenues between $80.0-$84.0 million
- GAAP gross margin between 48.1%-49.1%; and non-GAAP gross margin between 48.7%-49.7%
- GAAP operating expenses between $33.7-$34.7 million; and non-GAAP operating expenses between $30.6-$31.6 million
- GAAP operating income between $4.8-$6.5 million; and non-GAAP operating income between $8.4-$10.2 million
- Adjusted EBITDA between $9.5-$11.3 million; and adjusted EBITDA margin between 11.9%-13.4%
Challenges Ahead
- GAAP effective tax rate of approximately 10.0%-12.0%; and non-GAAP effective tax rate of approximately 17.0%-20.0%
- Approximately 28.5 million weighted average diluted shares outstanding
- Paydown of debt: $0.7 million
- Cash interest expense: approximately $0.4 million
- Capital expenditures: $2.0-$2.2 million
Revenue & Expenses
Visualization of income flow from segment revenue to net income