Group 1 - Ambarella, Inc. reported first-quarter earnings of 7 cents per share, exceeding the analyst consensus estimate of 3 cents per share [1] - The company achieved quarterly sales of $85.87 million, surpassing the analyst consensus estimate of $85.18 million [1] - Ambarella's President & CEO, Fermi Wang, announced a revenue growth guidance for fiscal 2026 in the range of 19% to 25%, approximately $348 million at the mid-point [2] Group 2 - The company anticipates second-quarter sales between $86.00 million and $94.00 million, compared to market estimates of $87.07 million [2] - Following the earnings announcement, Ambarella shares fell 0.6% to close at $62.00 [3] - Analysts made adjustments to their price targets for Ambarella, with Needham lowering it from $110 to $90 and Rosenblatt raising it from $87 to $95 [5]

Ambarella (AMBA) came out with quarterly earnings of $0.07 per share, beating the Zacks Consensus Estimate of $0.04 per share. This compares to loss of $0.26 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 75%. A quarter ago, it was expected that this video-compression chipmaker would post a loss of $0.01 per share when it actually produced earnings of $0.11, delivering a surprise of 1,200%.Over the last four quarters, the com ...

Financial Data and Key Metrics Changes - The company reported first quarter revenue of $85.9 million, which is up 2.2% sequentially and up 57.6% year over year, exceeding the midpoint of prior guidance [9][27] - Non-GAAP gross margin for fiscal Q1 was 62%, slightly above the midpoint of prior guidance due to a favorable product mix [27] - Non-GAAP net profit for Q1 was $3 million, or $0.07 per diluted share [28] - Cash and marketable securities reached $259.4 million, increasing by $9.1 million from the prior quarter and $56 million year over year [29] Business Line Data and Key Metrics Changes - AI revenue accounted for more than 75% of Q1 revenue, marking the fourth consecutive quarter of record AI revenue [9] - IoT applications increased to mid-single digits sequentially, now representing about three-quarters of total revenue [10] - Automotive revenue declined low single digits sequentially but was up more than 20% year over year [10] Market Data and Key Metrics Changes - The company is increasing its fiscal 2026 revenue growth estimate to a range of 19% to 25%, approximately $348 million at the midpoint [11] - The serviceable available market (SAM) for h AI applications is projected to reach almost $13 billion by fiscal 2031, with a five-year compounded annual growth rate in the high teens [12] Company Strategy and Development Direction - The company is focusing on expanding its edge AI infrastructure, developing a new AI SoC product family to enhance its offerings [12][21] - The company aims to leverage its existing technology to address new application verticals beyond its core enterprise security business [20] - Investment in technology and products is driving both current and future revenue growth opportunities [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in long-term drivers of the h AI strategy despite geopolitical uncertainties [11][24] - The company is maintaining a conservative outlook for the second half of the fiscal year due to geopolitical uncertainties but remains optimistic about second-half growth [11][24] Other Important Information - The company has extended its share repurchase program for an additional twelve months, with approximately $48 million available under the repurchase authorization [29] - A logistics company, WT Microelectronics, represented 63.1% of revenue for the quarter [30] Q&A Session Summary Question: Clarification on full-year guidance and growth profile - Management indicated that there are no concerns about second-half strength, despite geopolitical uncertainties affecting guidance [36][37] Question: Explanation of edge infrastructure products - Management clarified that edge infrastructure involves integrating multiple endpoints to upgrade existing installations, which is a growing trend [46][47] Question: Impact of seasonality on revenue - Management acknowledged that seasonality is uncertain this year due to geopolitical factors but indicated that normal seasonality could still occur [56] Question: Supply chain conversations with customers - Management reported that customers are not building inventory and are closely monitoring the situation [85][86] Question: Gross margin expectations - Management explained that gross margin fluctuations are primarily driven by customer and product mix [88] Question: AI capabilities in cameras and infrastructure - Management emphasized the need for both AI in cameras and edge infrastructure to upgrade existing installations effectively [93][95] Question: Market share outside of China - Management stated that they hold a majority market share in the mid and high-end security camera market outside of China [97]

Financial Data and Key Metrics Changes - The company reported first quarter revenue of $85.9 million, which is up 2.2% sequentially and up 57.6% year over year, exceeding the midpoint of prior guidance [7][25] - Non-GAAP gross margin for Q1 was 62%, slightly above the midpoint of prior guidance due to a favorable product mix [25] - Non-GAAP net profit for Q1 was $3 million, or $0.07 per diluted share [26] - Cash and marketable securities reached $259.4 million, increasing by $9.1 million from the prior quarter [27] Business Line Data and Key Metrics Changes - AI revenue accounted for more than 75% of Q1 revenue, marking the fourth consecutive quarter of record AI revenue [8] - IoT applications increased to mid-single digits sequentially, now representing about three-quarters of total revenue [8] - Automotive revenue declined in low single digits sequentially but was up more than 20% year over year [8] Market Data and Key Metrics Changes - The company is increasing its fiscal 2026 revenue growth estimate to a range of 19% to 25%, approximately $348 million at the midpoint [9] - The serviceable available market (SAM) for h AI applications is projected to reach almost $13 billion by fiscal 2031, with a five-year compounded annual growth rate in the high teens [11] Company Strategy and Development Direction - The company is focusing on expanding its edge AI infrastructure market, developing new AI SoC product families to enhance its offerings [11][12] - The company aims to leverage its existing technology to address new application verticals beyond its core enterprise security business [19] - Investment in technology and products is driving both current and future revenue growth opportunities [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in long-term drivers of the h AI strategy despite geopolitical uncertainties [10][23] - The company is prepared for short-term surprises while focusing on innovation and market development [23] - Management indicated that while there is uncertainty regarding the second half of the fiscal year, they remain optimistic about growth [35] Other Important Information - The company has extended its share repurchase program for an additional twelve months, with approximately $48 million available under the authorization [28] - A logistics company, WT Microelectronics, represented 63.1% of revenue for the quarter [29] Q&A Session Summary Question: Clarification on full-year guidance and growth profile - Management indicated that there are no concerns about second-half strength, but geopolitical uncertainty has led to a broader guidance range [34][35] Question: Explanation of edge infrastructure products - Management clarified that edge infrastructure involves integrating multiple endpoints to upgrade existing installations, which is a growing trend [42][44] Question: Supply chain conversations with customers - Management reported that customers are not building inventory and are cautious about the current geopolitical situation [78][80] Question: Gross margin expectations - Management explained that gross margin fluctuations are primarily driven by customer and product mix [81] Question: AI capabilities in cameras and video management systems - Management noted that both cameras and AI boxes are necessary to upgrade the installed base and enhance AI capabilities [88][90] Question: Market share outside of China - Management stated that they hold a majority market share in the mid and high-end security camera market outside of China [92] Question: Edge AI infrastructure product development - Management confirmed that the second chip for edge AI infrastructure is a response to market demand and will leverage existing technology for faster development [96]

Financial Performance - Revenue for Q1 FY 2026 was $85.9 million, up 57.6% from $54.5 million in the same period of FY 2025[5] - Non-GAAP net profit for Q1 FY 2026 was $3.0 million, or earnings per diluted share of $0.07, compared to a non-GAAP net loss of $10.5 million, or loss per diluted share of $0.26 in the same period of FY 2025[5] - Gross margin on a GAAP basis for Q1 FY 2026 was 60.0%, compared to 60.9% for the same period in FY 2025[5] - The company is increasing its FY 2026 revenue growth guidance to a range of 19% to 25%, approximately $348 million at the mid-point[6] - Revenue guidance for Q2 FY 2026 is expected to be between $86.0 million and $94.0 million[5] - Non-GAAP gross margin for Q2 FY 2026 is expected to be between 60.5% and 62.0%[5] Cash and Assets - Total cash, cash equivalents, and marketable debt securities at the end of Q1 FY 2026 was $259.4 million, up from $250.3 million at the end of the prior quarter[4] - Total assets increased to $701,918 million from $688,968 million, reflecting a growth of approximately 1.38%[22] - Current assets rose to $335,549 million, up from $320,551 million, indicating an increase of about 4.1%[22] - Cash and cash equivalents decreased slightly to $141,285 million from $144,622 million, a decline of approximately 2.4%[22] Liabilities and Equity - Accounts payable surged to $35,290 million, up from $21,775 million, representing an increase of about 62.2%[22] - Total liabilities increased to $129,202 million from $127,556 million, a growth of approximately 1.3%[22] - Shareholders' equity rose to $572,716 million from $561,412 million, reflecting an increase of about 2.3%[22] - Accumulated deficit widened to $(276,385) million from $(252,057) million, indicating a deterioration in financial position[22] - Additional paid-in capital increased to $848,756 million from $813,683 million, showing a growth of approximately 4.3%[22] Expenses and Investments - Research and development expenses for Q1 FY 2026 were $58.8 million, compared to $54.1 million in the same period of FY 2025[18] - The company repurchased 24,152 shares for approximately $1.0 million in Q1 FY 2026, with $48.0 million remaining for repurchase[7] Innovation and Development - Ambarella continues to innovate with the development of a new SoC to extend its reach into the edge AI infrastructure market[6] Inventory and Lease Liabilities - Inventories increased to $39,289 million from $34,428 million, reflecting a rise of about 14.3%[22] - Operating lease liabilities, current decreased to $2,335 million from $2,829 million, a decline of approximately 17.5%[22]

Financial Performance - Ambarella reported revenue of $85.9 million for the first quarter of fiscal 2026, representing a 57.6% increase from $54.5 million in the same period of fiscal 2025 [6] - The gross margin under GAAP for the first quarter of fiscal 2026 was 60.0%, slightly down from 60.9% in the same period of fiscal 2025 [6] - The GAAP net loss for the first quarter of fiscal 2026 was $24.3 million, or a loss of $0.58 per diluted share, compared to a net loss of $37.9 million, or a loss of $0.93 per diluted share, in the same period of fiscal 2025 [6][16] - Non-GAAP net profit for the first quarter of fiscal 2026 was $3.0 million, or earnings of $0.07 per diluted share, compared to a non-GAAP net loss of $10.5 million, or a loss of $0.26 per diluted share, in the same period of fiscal 2025 [6][19] Guidance and Future Outlook - The company increased its revenue growth guidance for fiscal 2026 to a range of 19% to 25%, approximately $348 million at the mid-point, considering the uncertain geopolitical environment [4] - Revenue for the second quarter of fiscal 2026 is expected to be between $86.0 million and $94.0 million, with non-GAAP gross margin expected to be between 60.5% and 62.0% [6] Cash Position and Share Repurchase - At the end of the first quarter of fiscal 2026, Ambarella had total cash, cash equivalents, and marketable debt securities of $259.4 million, up from $250.3 million at the end of the prior quarter and $203.3 million a year ago [3] - The Board of Directors approved an extension of the share repurchase program for an additional twelve months, with approximately $48.0 million available for repurchase [5] Market Position and Innovation - Ambarella is recognized as the established leader in the edge AI market, achieving its fourth consecutive quarter of record AI revenue [4] - The company continues to innovate rapidly, leveraging its low power and scalable AI silicon and software architecture to extend its reach into the edge AI infrastructure market [4][8]

Core Viewpoint - Ambarella, Inc. is positioned for strong growth in the next 12-24 months, becoming a leader in "edge AI semiconductor" technology, as indicated by record AI-driven revenue in Q4 FY2025 [1] Group 1: Company Performance - The company reported record AI-driven revenue in Q4 FY2025, showcasing its leadership in the edge AI semiconductor market [1] Group 2: Management Philosophy - The CEO, Fermi Wang, emphasizes a disciplined and data-driven investment approach, focusing on simplicity and common sense for success [1] - The investment strategy is fully quant-driven, relying on model recommendations without human interference, which aims to eliminate individual bias in stock selection [1]

Core Viewpoint - Ambarella, Inc. will hold its first quarter fiscal year 2026 earnings conference call on May 29, 2025, at 1:30 p.m. Pacific Time, with the earnings release issued after market close on the same day [1]. Company Overview - Ambarella is an edge AI semiconductor company that provides products for various applications, including video security, advanced driver assistance systems (ADAS), electronic mirrors, drive recorders, driver/cabin monitoring, autonomous driving, and robotics [2]. - The company's low-power systems-on-chip (SoCs) are designed for high-resolution video compression, advanced image and radar processing, and deep neural network processing, enabling intelligent perception, fusion, and planning [2]. Conference Call Details - Interested participants must register online in advance to ask questions during the call, and dial-in numbers along with a personal identification number (PIN) will be provided upon registration [2]. - A live webcast of the conference call and a replay will be available on the company's investor relations website [2].

Industry Overview - The global drone market is projected to reach US$57.8 billion by 2030, up from an estimated US$40.6 billion in 2025, indicating significant growth across various industries [1] - The commercial service market is the largest segment, expected to generate US$29.4 billion by 2025, followed by commercial hardware at US$6.7 billion and commercial software at US$1.7 billion [1] - The total number of drone flights globally increased by 25% in 2024, rising from 15.5 million to 19.5 million flights [2] Regional Insights - North America and Asia are leading in drone usage, with Europe closely following, while Latin America and Africa are experiencing accelerated growth due to improved local ecosystems and drone accessibility [2] - Asia recorded the highest number of drone flights in 2024 at 6.3 million, followed by North America with 3.9 million and Europe with 3.8 million [2] Company Developments - ZenaTech, Inc. is set to showcase its Drone as a Service (DaaS) and AI drone innovations at two major investor conferences in May 2025 [3] - Ambarella, Inc. has achieved a milestone of 30 million cumulative units shipped and is demonstrating its generative AI capabilities at the ISC West security expo [4][5] - AgEagle Aerial Systems Inc. demonstrated its eBee VISION drone at a military symposium, highlighting its operational advantages for military applications [7][8] - Ondas Holdings Inc. secured a US$3.2 million purchase order from a UAE governmental entity to expand its urban autonomous drone infrastructure [9]

Core Viewpoint - The article highlights three under-the-radar AI stocks—Innodata, Ambarella, and Symbotic—that may present investment opportunities despite the current market volatility caused by increased tariffs from the Trump administration [1][2]. Group 1: Innodata - Innodata transitioned from a slow-growth analytics software company to a provider of task-specific microservices for AI data preparation, significantly increasing its revenue and adjusted EBITDA by 96% and 249% respectively in 2024 [3][4]. - Analysts project a compound annual growth rate (CAGR) of 31% for revenue and 29% for adjusted EBITDA from 2024 to 2026, with an enterprise value of $938 million, indicating it is reasonably priced at 23 times this year's adjusted EBITDA [6]. - Despite potential slowdowns due to macroeconomic challenges, Innodata is expected to maintain its position in the high-growth AI market niche [5]. Group 2: Ambarella - Ambarella specializes in image processing system on chips (SoCs) and computer vision chips, which are essential for security cameras, drones, and connected vehicles [7]. - The company experienced a 26% revenue increase in fiscal 2025, driven by stabilization in its automotive and IoT sectors, as well as increased sales of AI-oriented CV5 chips [9]. - From fiscal 2025 to fiscal 2028, analysts anticipate an 18% CAGR in revenue, with an enterprise value of $1.6 billion, making it reasonably valued at four times this year's sales [10]. Group 3: Symbotic - Symbotic develops fully autonomous warehouse robots and claims that a $50 million investment in its modules can yield $250 million in savings over 25 years [12]. - The company has a long-term contract with Walmart to automate its distribution centers, which accounted for 87% of its revenue in fiscal 2024, leading to a 55% revenue increase and positive adjusted EBITDA [13]. - Analysts expect revenue and adjusted EBITDA to grow at a CAGR of 25% and 76% respectively from fiscal 2024 to fiscal 2027, with an enterprise value of $891 million, indicating it is undervalued at 0.4 times this year's sales [15].