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Dec 31, 2020

Cambium Networks Q4 2020 Earnings Report

Reported record revenues, increased demand for wireless broadband connectivity, and improved networking infrastructure.

Key Takeaways

Cambium Networks reported record revenues of $82.8 million for Q4 2020, a 29% increase year-over-year. Record net income was $10.5 million, or $0.38 per diluted share. The company benefited from investments in fixed wireless infrastructure technologies and increased demand due to work, learn, and play from home trends.

Record revenues of $82.8 million, up 29% year-over-year.

GAAP net income of $10.5 million or $0.38 per diluted share.

Adjusted EBITDA of $13.9 million or 16.8% of revenues.

Net cash provided by operating activities was $15.1 million.

Total Revenue
$82.8M
Previous year: $64.1M
+29.3%
EPS
$0.38
Previous year: $0.09
+322.2%
Gross Margin
51%
Previous year: 52%
-1.9%
Adjusted EBITDA Margin
16.8%
Previous year: 8.2%
+104.9%
Gross Profit
$42.2M
Previous year: $33.3M
+26.9%
Cash and Equivalents
$62.5M
Previous year: $19.3M
+222.9%
Free Cash Flow
$15.1M
Previous year: $5.68M
+165.6%
Total Assets
$206M
Previous year: $172M
+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 first quarter ending March 31, 2021.

Positive Outlook

  • Revenues between $81.0-$85.0 million
  • GAAP gross margin between 49.3%-50.3%; and non-GAAP gross margin between 49.5%-50.5%
  • GAAP operating income between $9.7-$11.5 million; and non-GAAP operating income between $11.6-$13.4 million
  • GAAP net income between $8.1-$9.6 million or between $0.29 and $0.34 per diluted share; and non-GAAP net income between $8.4-$9.7 million or between $0.30 and $0.34 per diluted share
  • Adjusted EBITDA between $12.6-$14.5 million; and adjusted EBITDA margin between 15.6%-17.0%

Challenges Ahead

  • Interest expense, net of approximately $1.4 million
  • GAAP taxes between 2.0%-5.0%; and a non-GAAP effective tax rate of approximately 17.0%-19.0%
  • Approximately 28.3 million weighted average diluted shares outstanding
  • Paydown of debt: $2.5 million
  • Capital expenditures: $3.2-$3.6 million

Revenue & Expenses

Visualization of income flow from segment revenue to net income