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Dec 31, 2023

Cambium Networks Q4 2023 Earnings Report

Reported a decrease in revenue and a net loss, impacted by enterprise business incentives and discounts.

Key Takeaways

Cambium Networks reported a challenging Q4 2023, with revenues of $40.2 million, a 52% decrease year-over-year. The company experienced a GAAP net loss of $39.0 million, or $1.41 per diluted share, and a non-GAAP net loss of $26.4 million, or $0.95 per diluted share. The revenue shortfall was attributed to incentives and discounts provided to distributors related to the Enterprise business, as well as slowing economies and lower Point-to-Multi-Point revenues.

Revenues decreased 52% year-over-year to $40.2 million.

GAAP net loss was $39.0 million, or $1.41 per diluted share.

Non-GAAP net loss was $26.4 million, or $0.95 per diluted share.

Adjusted EBITDA loss was $32.9 million, or (81.8)% of revenues.

Total Revenue
$40.2M
Previous year: $84.5M
-52.4%
EPS
-$0.95
Previous year: $0.36
-363.9%
Adjusted EBITDA Margin
-81.8%
Previous year: 16.9%
-584.0%
Gross Profit
-$8.73M
Previous year: $41.4M
-121.1%
Cash and Equivalents
$18.7M
Previous year: $48.2M
-61.2%
Free Cash Flow
-$7.45M
Previous year: $2.69M
-376.7%
Total Assets
$229M
Previous year: $269M
-14.9%

Cambium Networks

Cambium Networks

Cambium Networks Revenue by Segment

Cambium Networks Revenue by Geographic Location

Forward Guidance

For the first quarter of 2024, Cambium Networks anticipates revenues between $43.0 and $48.0 million, GAAP gross margin between 39.3% and 42.3%, and a GAAP operating loss between $9.2 and $11.6 million.

Positive Outlook

  • Revenues between $43.0-$48.0 million
  • GAAP gross margin between 39.3%-42.3%
  • Non-GAAP gross margin between 41.0%-44.0%
  • GAAP operating expenses between $28.5-$29.5 million
  • Non-GAAP operating expenses between $25.4-$26.4 million

Challenges Ahead

  • GAAP operating loss between $9.2-$11.6 million
  • Non-GAAP operating loss between $5.3-$7.8 million
  • GAAP net loss between $8.6-$11.0 million or a net loss between $0.31 and $0.39 per diluted share
  • Non-GAAP net loss between $6.1-$8.6 million or a net loss between $0.22 and $0.31 per diluted share
  • Adjusted EBITDA loss between $4.1-$6.6 million; and adjusted EBITDA margin between (8.6)%-(15.4)%

Revenue & Expenses

Visualization of income flow from segment revenue to net income