Ambarella Inc (NASDAQ:AMBA) stock is gapping to 52-week highs, up 15.4% at $78.96 at last glance, after the semiconductor name's better-than-expected third-quarter results and current-quarter revenue forecast. CEO Fermi Wang attributed the success to strong sales from its Edge AI product, which he said represents roughly 70% of the company's total top line. Plus, a flood of analysts lifted their price targets on AMBA after the event. Should this positive price action hold, Ambarella stock will notch its bes ...

Michael Wiggins De Oliveira is an inflection investor. This means buying into cheap companies at the moment when their narrative is changing and the business is on a path toward becoming significantly more profitable over the next year.With a focus on tech and “the Great Energy Transition (including uranium)”, Michael runs a concentrated portfolio with approximately 15 to 20 stocks and an average holding period of 18 months. Through his 10+ years analyzing countless companies, Michael has accumulated outsta ...

Financial Data and Key Metrics Changes - Revenue for Q3 fiscal year 2025 was $82.7 million, up 30% sequentially and up 63% year-over-year, exceeding guidance [24][28] - Non-GAAP gross margin for Q3 was 62.6%, at the low end of prior guidance due to product mix [25] - Non-GAAP net profit for Q3 was $4.5 million, or $0.11 per diluted share [25] Business Line Data and Key Metrics Changes - Both automotive and IoT businesses saw a sequential revenue increase of about 30% [8] - AI revenue reached a record level, contributing to a higher blended average selling price [8] - The automotive business is projected to grow to approximately $80 million this year, with a five-year compounded annual growth rate in the mid-teens [10][12] Market Data and Key Metrics Changes - The automotive revenue funnel is approximately $2.2 billion, down from $2.4 billion a year ago, with significant volatility due to project delays and cancellations [12][73] - Approximately 15% of the pipeline is from China, with a fair distribution across other regions [50][56] Company Strategy and Development Direction - The company is focused on new product momentum, particularly with the CV5 and upcoming CV7, to drive revenue growth [9][21] - The strategic plan aligns with the growth of AI training and inference capacity in data centers, indicating a strong market opportunity for edge AI processing [21] - The company aims for a long-term non-GAAP operating margin target of 30% [22] Management's Comments on Operating Environment and Future Outlook - Management noted that the global automotive industry is under pressure, but they remain optimistic about growth in the automotive sector [10][11] - The company expects fiscal Q4 revenue to be in the range of $76 million to $80 million, with a normal seasonal decline anticipated [28] - Management highlighted the importance of addressing customer pain points related to software development and cost in the automotive sector [47][48] Other Important Information - The company has shipped over 25 million edge AI SoCs cumulatively, establishing a strong position in AI computer vision [20] - The first 2-nanometer chip is expected to tape out in Q4 next year, targeting IoT and enterprise applications [65] Q&A Session Summary Question: What changed in the recent results? - Management indicated that Q3 results rebounded from inventory correction, with growth driven by new product adoption and customer activity [33] Question: How does the automotive pipeline look? - The automotive pipeline has decreased year-over-year due to project delays and cancellations, but management remains optimistic about the CV3 domain controller opportunity [36][37] Question: What is the mix between CV2 and CV5? - AI revenue was approximately 70% in Q3, with CV5 expected to ship over 1 million units this year [40] Question: How is the geographic distribution of the automotive pipeline? - The pipeline is fairly distributed, with only 15% from China, and a higher percentage from Europe [50][56] Question: What is the competitive landscape for automotive design wins? - The competitive landscape includes major players like NVIDIA, Qualcomm, and Mobileye, with partnerships with Tier 1 suppliers like Conti and Bosch being crucial [78] Question: What is the impact of geopolitical risks? - Management believes that while geopolitical risks exist, they do not pose a significant threat specifically to the company [56] Question: What is the outlook for gross margins? - Management expects gross margins to be at the low end of the long-term model due to competition but remains optimistic about maintaining current levels [84]

Tuesday, November 26, 2024Markets needed to fight off some early morning doldrums, closing in the green for three of the four major indexes today. The Dow and the S&P 500 both registered new all-time closes today, +0.28% and +0.57%, respectively. The Nasdaq grew by +0.63% while the small-cap Russell 2000 slid -0.73% on the session.We saw Case-Shiller home prices come down unexpectedly for September to +4.6% in the 20-city survey. New York City reported the highest home price change for the month at +7.5%, f ...

Ambarella (AMBA) came out with quarterly earnings of $0.11 per share, beating the Zacks Consensus Estimate of $0.04 per share. This compares to loss of $0.28 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 175%. A quarter ago, it was expected that this video-compression chipmaker would post a loss of $0.19 per share when it actually produced a loss of $0.13, delivering a surprise of 31.58%.Over the last four quarters, the comp ...

Financial Performance - Revenue for Q3 FY2025 was $82.7 million, a 63% increase from $50.6 million in Q3 FY2024[3] - Gross margin under GAAP for Q3 FY2025 was 60.6%, compared to 59.3% in Q3 FY2024[3] - GAAP net loss for Q3 FY2025 was $24.1 million, or loss per diluted share of $0.58, an improvement from a net loss of $41.7 million, or loss per diluted share of $1.04, in Q3 FY2024[3] - Non-GAAP net income for Q3 FY2025 was $4.5 million, or earnings per diluted share of $0.11, compared to a non-GAAP net loss of $11.2 million, or loss per diluted share of $0.28, in Q3 FY2024[4] - For the three months ended October 31, 2024, GAAP net loss was $24,071 thousand compared to a loss of $41,710 thousand for the same period in 2023, representing a 42.5% improvement[21] - Non-GAAP net income for the three months ended October 31, 2024, was $4,459 thousand, while the same period in 2023 reported a loss of $11,178 thousand, indicating a significant turnaround[21] - The diluted net loss per share under GAAP for the three months ended October 31, 2024, was $(0.58), improving from $(1.04) in the same period of 2023[21] Cash and Assets - Cash, cash equivalents, and marketable securities at the end of Q3 FY2025 totaled $226.5 million, up from $219.8 million in the previous quarter[7] - Total current assets increased to $303,610 thousand as of October 31, 2024, up from $280,157 thousand at January 31, 2024, reflecting a 8.5% growth[23] - Cash and cash equivalents decreased to $127,122 thousand from $144,914 thousand, a decline of 12.3%[23] Liabilities and Equity - Total liabilities rose to $116,494 thousand as of October 31, 2024, compared to $97,784 thousand at January 31, 2024, marking an increase of 19.0%[23] - Total shareholders' equity decreased to $554,295 thousand from $559,871 thousand, a decline of 1.0%[23] Future Outlook - Ambarella expects Q4 FY2025 revenue to be between $76.0 million and $80.0 million[5] - Non-GAAP gross margin for Q4 FY2025 is expected to be between 61.5% and 63.0%[5] - The company aims to drive positive operating leverage and maintain positive free cash flow for 15 consecutive fiscal years[8] - Ambarella is focused on expanding its presence in IoT and automotive markets, anticipating growth in FY2025 and FY2026[8] Operational Costs - Stock-based compensation expense for the three months ended October 31, 2024, was $26,847 thousand, slightly down from $27,409 thousand in the same period of 2023[21] - Acquisition-related costs totaled $1,267 thousand for the three months ended October 31, 2024, compared to $1,277 thousand in the prior year[21] - The difference between GAAP and non-GAAP gross margin was 2.0% for the three months ended October 31, 2024, compared to 3.3% in 2023, attributed to stock-based compensation and other expenses[20] Revenue Composition - Edge AI revenue accounted for approximately 70% of total revenue, establishing a new record level[8]

Core Viewpoint - Ambarella, Inc. reported strong financial results for the third quarter of fiscal year 2025, with significant revenue growth driven by its edge AI semiconductor products, particularly in the IoT and automotive markets. Financial Performance - Revenue for Q3 FY2025 was $82.7 million, a 63% increase from $50.6 million in Q3 FY2024 [2] - For the nine months ending October 31, 2024, revenue reached $200.9 million, up 15% from $174.9 million in the same period of the previous year [2] - GAAP gross margin for Q3 FY2025 was 60.6%, compared to 59.3% in Q3 FY2024 [2] - Non-GAAP gross margin for Q3 FY2025 was 62.6%, consistent with the same period in FY2024 [3] Net Loss and Earnings - GAAP net loss for Q3 FY2025 was $24.1 million, or a loss of $0.58 per diluted share, an improvement from a net loss of $41.7 million, or $1.04 per diluted share, in Q3 FY2024 [2] - Non-GAAP net income for Q3 FY2025 was $4.5 million, or earnings of $0.11 per diluted share, compared to a non-GAAP net loss of $11.2 million, or a loss of $0.28 per diluted share, in Q3 FY2024 [3] Guidance for Future Performance - For Q4 FY2025, revenue is expected to be between $76.0 million and $80.0 million [4] - Non-GAAP gross margin is anticipated to be between 61.5% and 63.0% [4] - Non-GAAP operating expenses are projected to be between $49.0 million and $52.0 million [4] Cash Position - Total cash, cash equivalents, and marketable debt securities at the end of Q3 FY2025 were $226.5 million, an increase from $219.8 million at the end of the previous quarter [6] Market Position and Strategy - Edge AI revenue accounted for approximately 70% of total revenue, marking a record level for the company [7] - The company aims to leverage anticipated revenue growth to drive positive operating leverage and maintain its track record of 15 consecutive fiscal years of positive free cash flow [7]

SANTA CLARA, Calif., Nov. 05, 2024 (GLOBE NEWSWIRE) -- Ambarella, Inc. (NASDAQ: AMBA), an edge AI semiconductor company, today announced it will hold its third quarter fiscal year 2025 earnings conference call on Tuesday, November 26, 2024 at 1:30 p.m. (Pacific Time). The company will issue its earnings release after the market closes that same day. Those interested in asking a question on the call are required to register online in advance.  Once registered, the dial-in numbers will be provided with a pers ...

SANTA CLARA, Calif., Nov. 05, 2024 (GLOBE NEWSWIRE) -- Ambarella, Inc. (NASDAQ: AMBA), an edge AI semiconductor company, today announced it will hold its third quarter fiscal year 2025 earnings conference call on Tuesday, November 26, 2024 at 1:30 p.m. (Pacific Time). The company will issue its earnings release after the market closes that same day. Those interested in asking a question on the call are required to register online in advance. Once registered, the dial-in numbers will be provided with a perso ...

Group 1 - Ambarella Inc (AMBA) shares increased by 4.22% on October 2, reaching an intraday high of $56.57 before closing at $56.51, up from the previous close of $54.22 [1] - The current stock price is 14.22% below its 52-week high of $65.88 and 42.38% above its 52-week low of $39.69 [1] - Trading volume was 139,171 shares, which is 19.5% of the average daily volume of 713,491 [1] Group 2 - The average one-year price target for Ambarella Inc, based on estimates from 10 analysts, is $74.00, indicating a potential upside of 30.95% from the current price of $56.51 [2] - The consensus recommendation from 17 brokerage firms gives Ambarella Inc an average rating of 2.4, suggesting an "Outperform" status [2] - GuruFocus estimates the fair value (GF Value) for Ambarella Inc in one year to be $66.22, implying a potential upside of 17.18% from the current price of $56.51 [2]