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Dec 31, 2021

Cambium Networks Q4 2021 Earnings Report

Reported a decrease in revenue year-over-year, but an increase sequentially, driven by enterprise Wi-Fi growth amidst supply chain constraints.

Key Takeaways

Cambium Networks reported Q4 2021 financial results with revenues of $78.7 million, a decrease of 5% year-over-year. Despite revenue decline, the company saw strong growth in enterprise Wi-Fi revenues, which increased 136% year-over-year. The company is working through supply chain issues which they expect to substantially improve during the second half of calendar 2022.

Revenues decreased 5% year-over-year to $78.7 million.

Enterprise Wi-Fi revenues increased 136% year-over-year to $25.8 million.

GAAP net income was $1.4 million, or $0.05 per diluted share.

Adjusted EBITDA was $6.7 million, or 8.6% of revenues.

Total Revenue
$78.7M
Previous year: $82.8M
-4.9%
EPS
$0.16
Previous year: $0.38
-57.9%
Gross Profit
$34.5M
Previous year: $42.2M
-18.3%
Cash and Equivalents
$59.3M
Previous year: $62.5M
-5.1%
Free Cash Flow
$3.5M
Previous year: $15.1M
-76.8%
Total Assets
$232M
Previous year: $206M
+12.9%

Cambium Networks

Cambium Networks

Cambium Networks Revenue by Segment

Cambium Networks Revenue by Geographic Location

Forward Guidance

For the first quarter ending March 31, 2022, Cambium Networks expects revenues between $77.5-$81.5 million, GAAP operating income between $1.1-$3.1 million, and adjusted EBITDA between $5.2-$7.2 million.

Positive Outlook

  • Revenues between $77.5-$81.5 million
  • GAAP gross margin between 44.0%-45.5%; and non-GAAP gross margin between 44.4%-45.9%
  • GAAP operating expenses between $33.0-$34.0 million; and non-GAAP operating expenses between $30.2-$31.2 million
  • GAAP operating income between $1.1-$3.1 million; and non-GAAP operating income between $4.2-$6.2 million
  • Adjusted EBITDA between $5.2-$7.2 million; and adjusted EBITDA margin between 6.7%-8.8%

Challenges Ahead

  • Interest expense, net of approximately $0.7 million
  • GAAP net income between $0.3-$1.9 million or between $0.01 and $0.07 per diluted share; and non-GAAP net income between $2.9-$4.4 million or between $0.10 and $0.15 per diluted share
  • GAAP and non-GAAP effective tax rate of approximately 18.0%-20.0%
  • Approximately 28.3 million weighted average diluted shares outstanding
  • Capital expenditures: $1.6-$1.8 million

Revenue & Expenses

Visualization of income flow from segment revenue to net income