Strategic Cooperation Agreement - Leapmotor and Ambarella signed a strategic cooperation agreement to create a first-class intelligent driving experience for the global new energy vehicle market [1] - Leapmotor will develop an advanced intelligent driving solution based on Ambarella's CV3-AD family of automotive AI domain controller SoCs [1] - The collaboration aims to achieve technical verification and installation of CV3-AD SoCs on new passenger-vehicle models, offering affordable and superior intelligent electric vehicles [1] Ambarella's CV3-AD SoC Family - CV3-AD SoCs are scalable, high-performance, and low-power AI domain control SoCs based on a 5nm automotive-grade process technology [2] - The SoCs comply with ASIL-B/D functional safety standards and support centrally processed environmental sensing suites [2] - They integrate a high-quality image signal processor for ultra-low latency, low noise, and high dynamic range images [2] - CV3-AD SoCs provide hardware AI acceleration and centralized fusion of raw LiDAR and millimeter-wave radar data [2] - Leapmotor confirmed the specifications, performance, and reliability of CV3-AD SoCs and praised Ambarella's support [2] Leapmotor's Vision and Product Strategy - Leapmotor focuses on technology and intelligence to provide the best value-for-money with superior intelligent vehicle electrification [3] - The company aims to be in the first echelon of the industry in terms of intelligent driving [3] - Leapmotor believes the partnership with Ambarella will accelerate the upgrading and iteration of product intelligence and create safer and more practical advanced intelligent driving functions [4] Ambarella's Perspective on the Partnership - Ambarella is honored to partner with Leapmotor, emphasizing the need for higher AI performance, lower power consumption, and comprehensive support for advanced algorithms in advanced intelligent driving systems [4] - CV3-AD SoCs demonstrate proven performance in mainstream advanced intelligent driving systems and help simplify product design, improving electric vehicle range and reducing battery costs [4] Future Collaboration Plans - Leapmotor and Ambarella plan to explore more possibilities for intelligent driving technology cooperation, including addressing challenges and expanding the global market [4] - The companies aim to bring higher-value intelligent driving solutions to global users [4] About Leapmotor - Leapmotor is a Chinese NEV company with full-suite independent R&D capabilities in core NEV technologies [5] - The company develops, manufactures, and sells NEVs, produces EIC core components, and provides vehicle internet solutions based on cloud computing [5] - Leapmotor launched a "dual-model layout of battery electric + extended range" in 2023 and has mass-produced four electric vehicles, including T03, C11, C01, and C10 [5] - In 2023, Leapmotor delivered 144,155 units [5] About Ambarella - Ambarella's products are used in human vision and edge AI applications, including video security, ADAS, electronic mirrors, drive recorders, driver/cabin monitoring, autonomous driving, and robotics [6] - The company's low-power SoCs offer high-resolution video compression, advanced image and radar processing, and powerful deep neural network processing [6]

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Ambarella's unaudited condensed consolidated financial statements for the quarter ended April 30, 2024, show total assets decreased to **$638.7 million** and net loss increased to **$37.9 million** [Condensed Consolidated Balance Sheets](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) As of April 30, 2024, total assets decreased to **$638.7 million** from **$657.7 million**, primarily due to reduced cash and marketable securities, while total liabilities also decreased to **$83.2 million** Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | April 30, 2024 | January 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | $266,907 | $280,157 | | Cash and cash equivalents | $131,810 | $144,914 | | **Total assets** | **$638,660** | **$657,655** | | **Total current liabilities** | $72,245 | $82,979 | | Accounts payable | $16,470 | $28,503 | | **Total liabilities** | **$83,235** | **$97,784** | | **Total shareholders' equity** | **$555,425** | **$559,871** | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) For the three months ended April 30, 2024, revenue decreased by **12.3%** to **$54.5 million**, resulting in a wider net loss of **$37.9 million** or **($0.93)** per share Statement of Operations Summary (in thousands, except per share data) | Metric | Three Months Ended April 30, 2024 | Three Months Ended April 30, 2023 | | :--- | :--- | :--- | | Revenue | $54,473 | $62,142 | | Gross Profit | $33,160 | $37,519 | | Loss from Operations | $(39,445) | $(35,542) | | Net Loss | $(37,932) | $(35,902) | | Diluted Net Loss Per Share | $(0.93) | $(0.91) | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash outflow from operating activities was **$15.0 million** for the three months ended April 30, 2024, a reversal from the prior year's inflow, primarily due to a higher net loss and working capital changes Cash Flow Summary (in thousands) | Cash Flow Activity | Three Months Ended April 30, 2024 | Three Months Ended April 30, 2023 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(14,951) | $22,025 | | Net cash provided by (used in) investing activities | $2,135 | $(8,210) | | Net cash (used in) provided by financing activities | $(288) | $385 | | **Net (decrease) increase in cash** | **$(13,104)** | **$14,200** | [Notes to Unaudited Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The notes detail accounting policies, financial instruments, and segment reporting, highlighting high revenue concentration with **WT Microelectronics** and **Chicony** accounting for **62%** and **13%** of revenue respectively - The company operates in a single reporting segment focused on the development and sales of low-power, HD, Ultra HD video compression, image processing, and AI computer vision solutions[94](index=94&type=chunk) - Revenue concentration remains high. For the three months ended April 30, 2024, distributor **WT Microelectronics** accounted for **62%** of revenue and ODM **Chicony** accounted for **13%**[97](index=97&type=chunk) - On May 29, 2024, the Board of Directors approved a twelve-month extension of the existing share repurchase program through June 30, 2025, with approximately **$49.0 million** available for repurchases[98](index=98&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=19&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a **12.3%** year-over-year revenue decrease to **$54.5 million** and a widened operating loss, emphasizing strategic focus on AI and computer vision for future growth [Overview](index=19&type=section&id=Overview) Ambarella focuses on developing low-power SoCs with its **CVflow™ architecture** for AI processing in edge devices, targeting future growth in IoT, automotive ADAS, industrial, and robotics markets - The company's strategic focus is on advanced AI technology, specifically its **CVflow™ architecture**, to enable edge devices to visually perceive their environment and make decisions[102](index=102&type=chunk) - Future revenue growth is expected to depend significantly on expanding within camera markets with computer vision technology, particularly in the Internet of Things (**IoT**), automotive **ADAS**, industrial, and robotics markets[103](index=103&type=chunk) [Results of Operations](index=22&type=section&id=Results%20of%20Operations) Operational results show a **12.3%** YoY revenue decrease to **$54.5 million** despite a slight gross margin increase to **60.9%**, leading to an increased operating loss Revenue Comparison (in thousands) | Period | Revenue | Change Amount | Change % | | :--- | :--- | :--- | :--- | | Q1 FY2025 | $54,473 | $(7,669) | (12.3)% | | Q1 FY2024 | $62,142 | | | - Gross margin increased slightly to **60.9%** from **60.4%** YoY, primarily due to sales of inventory that was previously reserved and lower adverse purchase commitments[130](index=130&type=chunk) - R&D expense decreased by **0.6%** YoY to **$54.1 million**, and SG&A expense decreased by **0.8%** YoY to **$18.5 million**, both primarily due to lower personnel costs[131](index=131&type=chunk)[132](index=132&type=chunk) [Liquidity and Capital Resources](index=25&type=section&id=Liquidity%20and%20Capital%20Resources) As of April 30, 2024, the company held **$203.3 million** in cash and marketable securities, with a **$15.0 million** net cash outflow from operations, but believes existing cash is sufficient for the next 12 months - The company had cash, cash equivalents, and marketable debt securities of approximately **$203.3 million** as of April 30, 2024[136](index=136&type=chunk) - Net cash used in operating activities was **$15.0 million**, a significant decrease from the **$22.0 million** provided by operating activities in the same period last year, primarily due to reductions in working capital and a higher net loss[138](index=138&type=chunk)[139](index=139&type=chunk) - The share repurchase program was extended through June 30, 2025, with **$49.0 million** available. No shares were repurchased in the quarter[142](index=142&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=26&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) There have been no material changes to the company's market risk disclosures since its Annual Report on **Form 10-K** for the fiscal year ended January 31, 2024 - There have been no material changes to the market risk as described in the company's 2024 **Form 10-K**[148](index=148&type=chunk) [Controls and Procedures](index=27&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were not effective as of April 30, 2024, due to a previously identified material weakness in accounting for income taxes, for which remediation is ongoing - Management concluded that disclosure controls and procedures were not effective as of April 30, 2024, due to a previously identified material weakness[150](index=150&type=chunk) - The material weakness relates to the company not designing and maintaining effective controls over the accounting for income taxes, specifically a lack of tax personnel with the appropriate skills and experience to assess complicated tax matters[151](index=151&type=chunk) - A remediation plan is underway, which includes implementing enhancements to existing control activities, improving documentation standards, and increasing technical oversight and training[152](index=152&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=28&type=section&id=Item%201.%20Legal%20Proceedings) The company reports that it is not engaged in any material legal proceedings at this time - The company is not currently engaged in any material legal proceedings[155](index=155&type=chunk) [Risk Factors](index=28&type=section&id=Item%201A.%20Risk%20Factors) This section details numerous risks including dependence on customer design wins, failure to penetrate new markets, intense competition, supply chain issues, customer concentration, and the previously disclosed material weakness in internal controls - Business Risk: Success is highly dependent on customers designing Ambarella's solutions into their products and the commercial success of those end products[159](index=159&type=chunk)[160](index=160&type=chunk)[161](index=161&type=chunk) - Market Risk: Failure to penetrate new markets, such as automotive OEM and **ADAS**, or if target markets like AI and computer vision do not grow as expected, could harm revenue[162](index=162&type=chunk)[173](index=173&type=chunk)[174](index=174&type=chunk) - Supply Chain & Customer Concentration Risk: The company relies on a limited number of customers (**WT** and **Chicony** accounted for **62%** and **13%** of revenue, respectively) and third-party manufacturers, and is subject to supply chain disruptions and inventory forecasting challenges[178](index=178&type=chunk)[179](index=179&type=chunk)[236](index=236&type=chunk) - Internal Control Risk: A material weakness was identified in internal control over financial reporting as of January 31, 2024, related to the accounting for income taxes, which could result in a material misstatement in financial statements if not remediated[279](index=279&type=chunk)[280](index=280&type=chunk) [Other Information](index=58&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated a **Rule 10b5-1** or non-**Rule 10b5-1** trading arrangement during the fiscal quarter ended April 30, 2024 - No director or officer adopted or terminated a **Rule 10b5-1** or non-**Rule 10b5-1** trading plan during the quarter ended April 30, 2024[320](index=320&type=chunk) [Exhibits](index=58&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the **Form 10-Q**, including certifications by the CEO and CFO and **Inline XBRL** documents - This section lists the exhibits filed as part of the Quarterly Report, including officer certifications required under the **Sarbanes-Oxley Act** and **Inline XBRL** data files[321](index=321&type=chunk)[322](index=322&type=chunk)

Core Viewpoint - Ambarella (AMBA) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which significantly influence stock prices [1][2]. Earnings Outlook - The Zacks rating upgrade reflects an upward trend in earnings estimates, which is a critical factor affecting stock price movements [1][3]. - Ambarella is expected to earn -$0.85 per share for the fiscal year ending January 2025, showing a year-over-year change of -2.4% [5]. Earnings Estimate Revisions - Over the past three months, the Zacks Consensus Estimate for Ambarella has increased by 0.6%, indicating a positive revision trend [5]. - The Zacks Rank system effectively utilizes earnings estimate revisions to classify stocks, with a strong historical performance of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [4]. Institutional Investor Influence - Changes in earnings estimates are closely correlated with stock price movements, largely due to institutional investors who adjust their valuations based on these estimates [3]. - An increase in earnings estimates typically leads to higher fair value for a stock, prompting institutional buying or selling, which impacts stock prices [3]. Positioning in the Market - The upgrade to Zacks Rank 2 places Ambarella in the top 20% of Zacks-covered stocks based on estimate revisions, suggesting potential for near-term stock price appreciation [7].

Shares of Ambarella (AMBA) have gained 18.6% over the past four weeks to close the last trading session at $56.15, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $72.29 indicates a potential upside of 28.7%.The mean estimate comprises 14 short-term price targets with a standard deviation of $13.04. While the lowest estimate of $50 indicates a 11% decline from the current price ...

Ambarella, Inc. (NASDAQ:AMBA) Q1 2025 Earnings Conference Call May 30, 2024 4:30 PM ET Company Participants Louis Gerhardy - Vice President of Corporate Development Fermi Wang - Chief Executive Officer John Young - Chief Financial Officer Conference Call Participants Christopher Rolland - Susquehanna Joe Moore - Morgan Stanley Kevin Cassidy - Rosenblatt Securities Nick Doyle - Needham and Company Jeremy Kwan - Stifel David O 'Connor - BNP Paribas Richard Shannon - Craig Hallium Capital Kevin Garrigan - West ...

Company Performance - Ambarella reported a quarterly loss of $0.26 per share, better than the Zacks Consensus Estimate of a loss of $0.32, but worse than a loss of $0.15 per share a year ago [1] - The quarterly report showed an earnings surprise of 18.75%, and the company has surpassed consensus EPS estimates in all four of the last quarters [1] - Revenues for the quarter ended April 2024 were $54.47 million, exceeding the Zacks Consensus Estimate by 0.80%, but down from $62.14 million year-over-year [1] Future Outlook - The sustainability of Ambarella's stock price movement will depend on management's commentary during the earnings call and future earnings expectations [2] - Current consensus EPS estimate for the upcoming quarter is -$0.26 on revenues of $59.87 million, and for the current fiscal year, it is -$0.86 on revenues of $251.72 million [4] Industry Context - The Electronics - Semiconductors industry, to which Ambarella belongs, is currently ranked in the bottom 24% of over 250 Zacks industries, indicating potential challenges for stock performance [5] - The performance of Ambarella's stock may also be influenced by the overall outlook for the industry [5]

Exhibit 99.1 Ambarella, Inc. Announces First Quarter Fiscal Year 2025 Financial Results May 30, 2024 —Santa Clara, Calif. – Ambarella, Inc. (NASDAQ: AMBA), an edge AI semiconductor company, today announced financial results for its first quarter of fiscal year 2025 ended April 30, 2024. • Revenue for the first quarter of fiscal 2025 was $54.5 million, down 12% from $62.1 million in the same period in fiscal 2024. • Gross margin under U.S. generally accepted accounting principles (GAAP) for the first quarter ...

Core Insights - Ambarella, Inc. reported a revenue of $54.5 million for Q1 FY2025, a decrease of 12% from $62.1 million in Q1 FY2024 [1] - The company experienced a GAAP net loss of $37.9 million, or a loss per diluted share of $0.93, compared to a net loss of $35.9 million, or a loss per diluted share of $0.91 in the same period last year [1] - Non-GAAP net loss for Q1 FY2025 was $10.5 million, or a loss per diluted share of $0.26, compared to a non-GAAP net loss of $6.0 million, or a loss per diluted share of $0.15 in Q1 FY2024 [1] Financial Performance - Revenue for Q1 FY2025 was $54.5 million, down from $62.1 million in Q1 FY2024 [1] - Gross margin under GAAP was 60.9%, slightly up from 60.4% in the same period last year [1] - Non-GAAP gross margin was 63.4%, compared to 63.1% in Q1 FY2024 [1] - Total cash, cash equivalents, and marketable debt securities at the end of Q1 FY2025 were $203.3 million, down from $219.9 million at the end of the previous quarter [3] Guidance and Future Outlook - For Q2 FY2025, Ambarella expects revenue to be between $60.0 million and $64.0 million [2] - Non-GAAP gross margin is anticipated to be between 62.5% and 64.0% [2] - Operating expenses on a non-GAAP basis are expected to be between $47.5 million and $49.5 million [2] Strategic Initiatives - The company is witnessing early signs of growth in AI inferencing at the network edge, with new customer engagements expected to drive revenue growth [4] - Ambarella has secured its first win with an electric vehicle OEM and additional wins in commercial vehicles and the IoT market [4]

Core Insights - Ambarella (AMBA) has launched its latest AI-based systems-on-chip (SoCs), CV75AX and CV72AX, aimed at enhancing in-vehicle fleet telematics systems [1] - The CV75AX offers double the AI performance of its predecessors, while the CV72AX supports up to 10 cameras and delivers six times the AI performance of the previous generation [1][2] - The chips are integrated with advanced features such as the CVflow 3.0 AI engine, LPDDR5 support, and USB 3.2 interface, which collectively enhance performance and video quality [2] Company Developments - Ambarella is benefiting from the growing demand for camera-based SoCs and computer vision technology in the Automated Driver Assistance Systems (ADAS) market [3] - The company is expanding collaborations with key players in the Autonomous Driving segment, including Applied Intuition, Continental, and Kodiak [3] - Positive customer feedback is being received for Ambarella's products, indicating strong market acceptance [3] Market Challenges - The company is currently facing near-term challenges, including customers reducing their inventory levels and weak demand in certain market segments [4] Stock Performance - Ambarella's shares have decreased by 31.3% over the past year, and it currently holds a Zacks Rank 3 (Hold) [5] - Comparatively, other technology stocks like AppFolio, Arista Networks, and Alphabet have shown significant gains, with AppFolio's shares surging 78.7% in the past year [5]

SANTA CLARA, Calif., May 21, 2024 (GLOBE NEWSWIRE) -- Ambarella, Inc. (NASDAQ:AMBA), an edge AI semiconductor company, today announced during AutoSens USA, the latest generation of its AI systems-on-chip (SoCs) for in-vehicle fleet telematics systems. Ideal for AI dash cams integrating front-facing ADAS and driver monitoring systems (DMS), the new CV75AX provides up to 2x the AI performance over Ambarella's prior-generation SoC, enabling the latest transformer neural networks for improved accuracy and reduc ...