https://assets.capyfin.com/instruments/678fdc13234e27009c5d6312.png avatar
Cambium Networks
🇺🇸 NASDAQ:CMBM
View Company
OverviewEarningsDividends
•
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.

Total Revenue
$81.2M
Previous year: $75.9M
+7.0%
EPS
$0.4
Previous year: $0.23
+73.9%
Adjusted EBITDA Margin
18.2%
Previous year: 12.6%
+44.4%
Gross Profit
$41.2M
Previous year: $36M
+14.3%
Cash and Equivalents
$44.9M
Previous year: $58.6M
-23.4%
Free Cash Flow
$1.19M
Previous year: $11.8M
-90.0%
Total Assets
$247M
Previous year: $219M
+13.0%

Cambium Networks

Cambium Networks

Cambium Networks Revenue by Segment

Cambium Networks Revenue by Geographic Location

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

Company Overview

Full financial data and analysis

View Cambium Networks