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Sep 30, 2024

Cambium Networks Q3 2024 Earnings Report

Cambium Networks' Q3 2024 financial results were announced, showing a sequential decrease in revenues but improvements in gross margin and cash flow.

Key Takeaways

Cambium Networks reported Q3 2024 revenues of $43.7 million, a 5% sequential decrease. However, gross margin improved, and the company generated positive cash from operations and $5.2 million in free cash flow. The Enterprise portfolio of products continued to grow.

Revenues decreased 5% sequentially to $43.7 million.

Gross margin increased to 39.9%, and non-GAAP gross margin reached 42.3%.

Operating loss improved to $8.1 million, with a non-GAAP operating loss of $3.6 million.

Net cash from operating activities was $8.9 million, and the company held $46.5 million in cash.

Total Revenue
$43.7M
Previous year: $43M
+1.6%
EPS
-$0.14
Previous year: -$0.44
-68.2%
Gross Margin
39.9%
Previous year: 25.5%
+56.5%
Non-GAAP Gross Margin
42.3%
Previous year: 27.7%
+52.7%
Adjusted EBITDA Margin
-5.3%
Previous year: -33.5%
-84.2%
Gross Profit
$17.4M
Previous year: $11M
+59.2%
Cash and Equivalents
$46.5M
Previous year: $27.5M
+68.9%
Free Cash Flow
$5.2M
Previous year: -$1.37M
-479.3%
Total Assets
$223M
Previous year: $246M
-9.5%

Cambium Networks

Cambium Networks

Cambium Networks Revenue by Segment

Cambium Networks Revenue by Geographic Location

Forward Guidance

Cambium Networks anticipates revenues between $40.0 and $45.0 million for the fourth quarter ending December 31, 2024.

Positive Outlook

  • GAAP gross margin is expected to be between 40.0% and 42.0%.
  • Non-GAAP gross margin is anticipated to be between 42.5% and 44.5%.
  • GAAP operating loss is projected to be between $7.0 and $9.0 million.
  • Non-GAAP operating loss is expected to be between $3.0 and $5.0 million.
  • Adjusted EBITDA loss is forecasted to be between $1.0 and $3.0 million.

Challenges Ahead

  • Adjusted EBITDA margin is expected to be between (2.0)% and (7.0)%.
  • The financial outlook does not include the potential impact of any possible future financial transactions.
  • The financial outlook does not include the potential impact of acquisitions.
  • The financial outlook does not include the potential impact of pending legal matters.
  • Actual results may differ materially from the outlook.

Revenue & Expenses

Visualization of income flow from segment revenue to net income