Ambarella(US:AMBA)2024-11-26 21:25Financial 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]