Ambarella, Inc. (NASDAQ:AMBA) Q2 2024 Earnings Conference Call August 29, 2023 4:30 PM ET Company Participants Louis Gerhardy - VP, Corporate Development Fermi Wang - CEO Brian White - CFO Conference Call Participants Christopher Rolland - Susquehanna Quinn Bolton - Needham & Company Joe Moore - Morgan Stanley Matt Ramsay - TD Cowen Ross Seymore - Deutsche Bank Tristan Gerra - Baird Tore Svanberg - Stifel Kevin Cassidy - Rosenblatt Securities Suji DeSilva - ROTH Capital Gary Mobley - Wells Fargo Operator Th ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended April 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-35667 AMBARELLA, INC. (Exact name of registrant as specified in its charter) Cayman Islands 98-0459628 (State or other jurisdic ...

Financial Data and Key Metrics Changes - For Q1 fiscal year 2024, revenue was $62.1 million, down 25% from the prior quarter and down 31% year-over-year [19][20] - Non-GAAP gross margin for Q1 was 63.1%, consistent with prior guidance [20] - Non-GAAP operating expense was $46.2 million, slightly below prior guidance [20] - The company reported a non-GAAP net loss of $6 million or $0.15 loss per diluted share [21] Business Line Data and Key Metrics Changes - Total Automotive revenue was approximately flat sequentially, while IoT revenue saw a sharp decline due to customer inventory reduction actions [19] - The CV2 family is expected to account for approximately 60% of total revenue in fiscal year 2024 [9] - The CV3 platform is anticipated to significantly increase average selling prices (ASP), with expectations of 5 to 20 times higher ASP compared to CV2 [10] Market Data and Key Metrics Changes - The serviceable available market (SAM) for the company is projected to exceed $4 billion in fiscal year 2024 and approach $10 billion by fiscal year 2028 [7] - The company is focused on deep learning AI processors and software, with a shift towards AI inference as the market matures [8] Company Strategy and Development Direction - The company is transforming into an AI-focused entity, with AI representing 45% of total revenue last year and an estimated 60% this year [6] - The CV3 platform is a major leap forward, targeting mobility applications and bundling software IP with hardware [10][11] - The company aims to leverage partnerships with Tier 1 suppliers like Bosch and Continental to enhance market credibility and development efforts [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged significant headwinds from the semiconductor industry cyclical downturn but remains focused on AI development [6] - The company expects inventory corrections to continue, impacting revenue until new product design wins are realized [32] - Management is optimistic about long-term growth opportunities in edge inference AI despite near-term financial pressures [18] Other Important Information - Cash and marketable securities increased by $20.5 million to $227.4 million in Q1 [21] - Days sales outstanding (DSO) improved from 57 days to 43 days, indicating better cash flow management [21] Q&A Session Summary Question: Inventory drawdown with customers - Management noted that customer demand appears healthy, but inventory corrections are ongoing, with no clear end in sight [25][26] Question: Automotive-grade win with Continental - The win is automotive-grade, involving both CV3 SoC and co-developed software IP [27][28] Question: Revenue levels and inventory correction - Management believes current revenue is approximately 25% to 30% below realistic levels and expects recovery post-inventory correction [31][32] Question: Timing for automotive business growth - Management anticipates growth in the automotive sector once inventory corrections are completed, particularly in the ADAS market [33][34] Question: Geopolitical impact on Chinese market - Management believes the impact on the automotive market is less severe compared to security, with U.S. components still dominant in high-end automotive [38] Question: Software acquisition and product roadmap - Management confirmed they have the necessary components for Level 2 Plus and Level 3 applications, focusing on a flexible software platform [40] Question: AI server inference market entry - Management is optimistic about entering the AI server inference market, leveraging existing silicon and software expertise [50][51] Question: Cash flow and R&D investments - Management does not foresee the need to raise additional cash, citing a strong cash position and positive free cash flow history [79]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended January 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-35667 AMBARELLA, INC. (Exact name of registrant as specified in its charter) | --- | --- | --- | |----------------------------------- ...

Ambarella, Inc. (NASDAQ:AMBA) Q4 2023 Results Earnings Conference Call February 28, 2023 4:30 PM ET Company Participants Louis Gerhardy - Vice President, Corporate Development Fermi Wang - Chief Executive Officer Brian White - Chief Financial Officer Conference Call Participants Joseph Moore - Morgan Stanley Ross Seymore - Deutsche Bank Lannie Trieu - Cowen and Company Vivek Arya - Bank of America Tore Svanberg - Stifel Financial Gavin Kennedy - Jefferies Kevin Cassidy - Rosenblatt Securities Brian Ruttenbu ...

Financial Data and Key Metrics Changes - Revenue for fiscal Q3 was $83.1 million, up 3% from the prior quarter but down 10% year-over-year [19] - Non-GAAP gross margin for fiscal Q3 was 63.5%, consistent with prior guidance [20] - Non-GAAP net income was $9.5 million or $0.24 per diluted share [20] Business Line Data and Key Metrics Changes - Automotive revenue increased to $2.3 billion, a 28% increase from $1.8 billion a year ago, with approximately $800 million in new business [7] - IoT and Auto product revenue increased sequentially, although customer inventory reduction actions led to sub-seasonal revenue results [19] Market Data and Key Metrics Changes - The automotive segment's six-year revenue funnel is significantly larger than the current business, indicating potential for future growth [7] - The company expects to ship about 2 million units of CV2 family SoCs in Q4, with a positive outlook for CV2 family [16] Company Strategy and Development Direction - The company is focusing on edge AI endpoint investments, with a strong emphasis on automotive and IoT markets [6] - Ambarella aims to leverage its leadership position in the AI endpoint market and continue investing in R&D to capitalize on market opportunities [18] Management's Comments on Operating Environment and Future Outlook - Management acknowledged material headwinds from an industry-wide semiconductor cyclical downturn but maintained a favorable long-term growth outlook [6] - The company anticipates a flat revenue outlook for Q4, with expectations of improved component availability in the next fiscal year [22] Other Important Information - The company announced a partnership with Continental AG for integrating its CV3 SoCs into ADAS products, marking a significant milestone [6][8] - Ambarella is strengthening its ecosystem of design and development partners to expand its customer base [15] Q&A Session Summary Question: Details on the Continental deal and its impact on the automotive funnel - Management indicated that the Continental relationship is expected to contribute to the automotive funnel but its impact will be more visible in future forecasts [31] Question: Clarification on normal seasonality for fiscal Q1 - Management noted that the typical decrease for Q1 is around 4%, but they expect a greater decline due to macroeconomic concerns and inventory reductions [32] Question: Contribution of interior versus ADAS to the automotive funnel - Management explained that interior design wins have shorter development cycles compared to ADAS, and they aim to increase market share in both areas [35] Question: Timeline for revenue contribution from the Continental partnership - Management stated that design wins typically take three to four years to translate into revenue [38] Question: Revenue split between IoT and automotive segments - The revenue split for the reported quarter was approximately 75% IoT and 25% automotive, with expectations for the automotive percentage to increase in the future [72]

Ambarella, Inc. (NASDAQ:AMBA) Q2 2023 Results Conference Call August 30, 2022 4:30 PM ET Company Participants Louis Gerhardy - Corporate Development Fermi Wang - President and CEO Brian White - CFO Conference Call Participants Matt Ramsay - Cowen Joseph Moore - Morgan Stanley Vivek Arya - Bank of America Gary Mobley - Wells Fargo Blair Botha - Arete Ross Seymore - Deutsche Bank Tore Svanberg - Stifel Suji Desilva - Roth Capital Kevin Cassidy - Rosenblatt Andrew Buscaglia - Berenberg Richard Shannon - Craig- ...