Ambarella, Inc.'s (AMBA) shares soared 11.3% during Wednesday’s extended trading session following the company’s reported stronger-than-expected fourth-quarter fiscal 2025 results. It reported fourth-quarter non-GAAP earnings of 11 cents per share, which compared favorably with the Zacks Consensus Estimate of a loss of a penny. The bottom line also experienced a robust improvement from the year-ago quarter’s loss of 24 cents per share.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar. ...

Financial Data and Key Metrics Changes - For fiscal year 2024, revenue decreased by 32.9% year-over-year to $226.5 million, with IoT revenue accounting for about two-thirds of total revenue and declining approximately 40% for the year [21] - Fiscal Q4 revenue was $51.6 million, up 2% sequentially but down 38% year-over-year, with a non-GAAP gross margin of 62.5% [22][21] - Non-GAAP operating expenses for fiscal year 2024 increased by 3.9%, while cash and marketable securities totaled $219.9 million, up from $206.9 million at the end of the prior year [21][24] Business Line Data and Key Metrics Changes - The AI inference business represented approximately 60% of total fiscal 2024 revenue, contributing to an increase in blended average selling price (ASP) [6] - IoT revenue was significantly impacted by a decline in human viewing video processor SoCs, while automotive revenue decreased by about 14% for the year [21] - The CV2 family is expected to continue driving revenue growth, with a cumulative install base of over 20 million AI inference SoCs [6] Market Data and Key Metrics Changes - The automotive market is seeing a shift towards higher autonomy levels, with the CV3 SoC family entering production and multiple design wins in progress [9][12] - The company is focusing on the Chinese market, anticipating faster monetization of CV3 technology due to the rapid development of EVs and autonomous driving in the region [35] Company Strategy and Development Direction - The company aims to restore revenue growth and profitability while focusing on AI inference opportunities at the edge [17] - A new generative AI strategy has been introduced, targeting applications from IoT devices to edge servers, with significant partnerships and product developments underway [14][10] - The Cooper development platform is expected to enhance customer engagement and streamline software development across different silicon platforms [56] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges faced in fiscal 2024 but expressed optimism about recovery as inventory issues stabilize [5][18] - The company expects growth in both automotive and IoT segments for fiscal year 2025, driven by new product introductions and design wins [54][55] - The management highlighted the importance of AI performance demand in security cameras and the ongoing development of new platforms for this market [44] Other Important Information - The company received a CES Innovation Award for its centralized radar processing architecture, showcasing its commitment to innovation [10] - The CV3 family of processors now covers a full range of advanced driver-assistance systems (ADAS) solutions, with significant endorsements from partners [12] Q&A Session Summary Question: Inventory improvement and project delays - Management indicated that inventory improvement is consistent with previous statements, with no new developments regarding project delays [32][34] Question: Revenue from CV3 design wins in China - The first revenue from CV3 design wins is expected in calendar year 2026, with a focus on the growing EV market in China [34] Question: N1 product potential and competitive landscape - The N1 product is expected to meet significant demand, with discussions ongoing about combining multiple chips for high-end solutions [38][40] Question: Growth expectations for IoT and automotive segments - Management expects IoT growth driven by the CV2 family and automotive growth through new design wins, despite a weak overall market [54][55] Question: ASP changes and future pricing - ASP for CV2 is expected to range from high single digits to around $30, while CV5 is anticipated to be between low $30s to high $40s [60] Question: N1 product and edge processing - The competitive landscape includes low-end GPUs, but the company believes its SoC offers superior performance at lower power consumption [66] Question: Future process technology - The company plans to explore next-generation process technologies beyond 5-nanometer as market demands evolve [69] Question: Applications for CV5 - CV5 is expected to address applications in the EV truck space, with details to be announced as the customer prepares for product launch [72]

Core Insights - Ambarella (AMBA) reported quarterly earnings of $0.11 per share, exceeding the Zacks Consensus Estimate of a loss of $0.01 per share, and showing improvement from a loss of $0.24 per share a year ago, resulting in an earnings surprise of 1,200% [1] - The company achieved revenues of $84.02 million for the quarter ended January 2025, surpassing the Zacks Consensus Estimate by 7.52% and increasing from $51.62 million year-over-year [2] - Ambarella has consistently surpassed consensus EPS and revenue estimates over the last four quarters [2] Earnings Outlook - The sustainability of Ambarella's stock price movement will depend on management's commentary during the earnings call and future earnings expectations [3][4] - Current consensus EPS estimate for the upcoming quarter is -$0.09 on revenues of $73.9 million, and -$0.14 on revenues of $321.35 million for the current fiscal year [7] Industry Context - The Electronics - Semiconductors industry, to which Ambarella belongs, is currently ranked in the bottom 46% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Ambarella's stock performance [5]

Revenue Performance - Revenue for Q4 fiscal 2025 was $84.0 million, up 62.8% from $51.6 million in Q4 fiscal 2024[3] - For the fiscal year ended January 31, 2025, revenue was $284.9 million, up 25.8% from $226.5 million for the fiscal year ended January 31, 2024[3] - The company expects Q1 fiscal 2026 revenue to be between $81.0 million and $87.0 million[3] - The company anticipates mid to high teens revenue growth in fiscal 2026, driven by 5nm products including the CV5 and CV7 families[6] Profitability - GAAP net loss for Q4 fiscal 2025 was $20.2 million, or loss per diluted share of $0.48, compared to a net loss of $60.6 million, or loss per diluted share of $1.50, in Q4 fiscal 2024[3] - Non-GAAP net profit for Q4 fiscal 2025 was $4.8 million, or earnings per diluted share of $0.11, compared to a non-GAAP net loss of $9.8 million, or loss per diluted share of $0.24, in Q4 fiscal 2024[3] - For the three months ended January 31, 2025, GAAP net loss was $20,234 thousand compared to a net loss of $60,607 thousand for the same period in 2024[19] - Non-GAAP net income for the three months ended January 31, 2025, was $4,767 thousand, compared to a loss of $9,825 thousand in 2024[19] Margins - Gross margin for Q4 fiscal 2025 was 60.0%, compared to 59.8% for the same period in fiscal 2024[3] - Non-GAAP gross margin is expected to be between 61.0% and 62.5% for Q1 fiscal 2026[3] - The difference between GAAP and non-GAAP gross margin was 2.0% for the three months ended January 31, 2025, amounting to $1.7 million[18] Cash and Assets - Total cash, cash equivalents, and marketable debt securities at the end of Q4 fiscal 2025 was $250.3 million, up from $226.5 million at the end of the prior quarter[5] - Total current assets increased to $320,551 thousand as of January 31, 2025, from $280,157 thousand in 2024[21] - Cash and cash equivalents remained relatively stable at $144,622 thousand in 2025 compared to $144,914 thousand in 2024[21] - The company reported total assets of $688,968 thousand as of January 31, 2025, up from $657,655 thousand in 2024[21] Liabilities and Deficits - Total liabilities rose to $127,556 thousand in 2025 from $97,784 thousand in 2024[21] - The accumulated deficit increased to $252,057 thousand in 2025 from $134,931 thousand in 2024[21] Stock-Based Compensation and Acquisition Costs - Total stock-based compensation for the twelve months ended January 31, 2025, was $108,043 thousand, a decrease from $111,316 thousand in 2024[18] - Total acquisition-related costs for the twelve months ended January 31, 2025, were $5,044 thousand, slightly down from $5,108 thousand in 2024[18] Product Shipment - Cumulatively, the company has shipped about 30 million edge AI processors, marking a quarterly and annual record[6]

Core Viewpoint - Ambarella, Inc. reported strong financial results for the fourth quarter and full year of fiscal 2025, highlighting significant revenue growth driven by edge AI products and providing optimistic guidance for fiscal 2026 [1][4]. Financial Performance - Fourth quarter revenue reached $84.0 million, a 62.8% increase from $51.6 million in the same period of fiscal 2024 [5]. - For the fiscal year ended January 31, 2025, total revenue was $284.9 million, up 25.8% from $226.5 million in fiscal 2024 [5]. - Gross margin for the fourth quarter was 60.0%, slightly up from 59.8% year-over-year, while the fiscal year gross margin was 60.5%, compared to 60.4% in the previous year [5]. - The company reported a GAAP net loss of $20.2 million for the fourth quarter, improving from a loss of $60.6 million in the same quarter of fiscal 2024 [5]. - Non-GAAP net profit for the fourth quarter was $4.8 million, compared to a non-GAAP net loss of $9.8 million in the same period last year [5]. Cash Position - At the end of the fourth quarter of fiscal 2025, Ambarella had total cash, cash equivalents, and marketable debt securities of $250.3 million, an increase from $226.5 million in the prior quarter and $219.9 million year-over-year [3]. Future Guidance - For the first quarter of fiscal 2026, Ambarella expects revenue between $81.0 million and $87.0 million, with a non-GAAP gross margin projected between 61.0% and 62.5% [5]. - The company anticipates mid to high teens revenue growth in fiscal 2026, driven by its 5nm products, particularly the CV5 and CV7 families [4]. Market Position - Over 70% of Ambarella's total revenue in fiscal 2025 came from edge AI products, marking both a quarterly and annual record [4]. - The company has shipped approximately 30 million edge AI processors, integrating proprietary deep learning AI accelerators [4]. Operational Insights - Ambarella's focus on efficient operations aims to drive positive operating leverage moving forward [4]. - The company continues to invest in research and development, with operating expenses for R&D reaching $226.1 million for the fiscal year [16]. Conference Call - A conference call is scheduled to discuss the fourth quarter results, providing further insights into the company's performance and future strategies [6].

Core Viewpoint - Ambarella has significantly outperformed Nvidia in stock appreciation over the past six months, with a 64% increase compared to Nvidia's 13% [1] Company Performance - Ambarella is set to announce its fiscal 2025 fourth-quarter results on February 26, which are expected to exceed Wall Street's expectations due to strong demand for AI-enabled edge devices [3][8] - The company reported a 63% year-over-year revenue increase in the third quarter of fiscal 2025, achieving record levels of AI revenue and a non-GAAP profit [7] - For fiscal Q4, Ambarella has guided for revenue of $78 million, representing a 51% increase from the previous year, with analysts projecting a smaller loss per share compared to the prior year [8] Market Demand and Growth Potential - The demand for AI-enabled edge devices is anticipated to grow rapidly, with the edge AI hardware market's revenue expected to more than double in the next five years [5] - Ambarella's revenue in fiscal Q3 was driven by edge AI applications, with 70% of revenue coming from this segment, primarily from automotive and AI-based IoT applications [9] - The company forecasts its serviceable market to grow from approximately $5 billion in fiscal 2024 to nearly $9 billion by 2027, aiming for 23% growth in fiscal 2025 [10] Profitability Outlook - Analysts expect Ambarella to become profitable on a non-GAAP basis in the next fiscal year, indicating a positive trend in the company's bottom line [11] - The market may respond favorably to improvements in Ambarella's profitability, with a 12-month price target of $95 suggesting potential gains of 22% from current levels [12]

Core Viewpoint - Ambarella, Inc. will hold its fourth quarter and fiscal year 2025 earnings conference call on February 26, 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]. Contact Information - The contact for corporate development at Ambarella is Louis Gerhardy, reachable at 408-636-2310 or via email at lgerhardy@ambarella.com [3].

Company Announcement - Ambarella, Inc. will hold its third quarter fiscal year 2025 earnings conference call on February 26, 2025, at 1:30 p.m. Pacific Time [1] - The earnings release will be issued after the market closes on the same day [1] Participation Details - Interested participants must register online in advance to ask questions during the call [2] - Dial-in numbers and 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] Company Overview - Ambarella specializes in edge AI semiconductor products used in various applications such as video security, advanced driver assistance systems (ADAS), and autonomous driving [2] - The company offers low-power systems-on-chip (SoCs) that provide high-resolution video compression and advanced image processing capabilities [2]

Company Overview - Ambarella, Inc. is an edge AI semiconductor company specializing in products for human vision and edge AI applications, including video security, advanced driver assistance systems (ADAS), and autonomous driving [2][3] - The company offers low-power systems-on-chip (SoCs) that provide high-resolution video compression, advanced image and radar processing, and deep neural network processing [2] Earnings Conference Call - Ambarella will hold its third quarter fiscal year 2025 earnings conference call on February 26, 2025, at 1:30 p.m. Pacific Time [1] - The earnings release will be issued after the market closes on the same day [1] - Interested participants must register online in advance to ask questions during the call, and a personal identification number (PIN) will be provided for access [2]

Core Insights - Gauzy Ltd. has formed a strategic partnership with Ambarella, Inc. to enhance advanced driver assistance systems (ADAS) through AI technology, aiming to improve road safety and urban mobility [1][4] - The integration of Ambarella's CVflow AI system-on-chip into Gauzy's Smart-Vision camera monitor system is already operational in Ford Trucks, showcasing its practical application [1][3] Company Overview - Gauzy Ltd. specializes in light and vision control technology, focusing on smart glass technologies and ADAS, with a global presence in over 30 countries [8] - Ambarella, Inc. develops low-power systems-on-chip for various applications, including ADAS, emphasizing high-resolution video processing and intelligent perception [9] Product Features - The Smart-Vision CMS replaces traditional mirrors with high-resolution cameras, providing a wider view and reducing blind spots, thus enhancing safety [2][5] - The system includes self-learning and predictive capabilities, such as adaptive maneuver lines and automatic hazard detection, which significantly reduce latency and improve real-time visibility [3][6] Market Potential - The commercial-vehicle ADAS market is projected to exceed $43 billion by 2030, driven by the increasing adoption of technologies like Smart-Vision [4] - The transition from traditional mirrors to Smart-Vision systems offers multiple benefits, including reduced human error, improved night vision, and enhanced obstacle detection [5] Safety and Compliance - The Smart-Vision CMS has met stringent safety certifications, including UN regulations and cybersecurity standards, ensuring its reliability for OEMs [7]