Ubiquiti(UI) - 2024 Q3 - Quarterly Results

Financial Performance - Revenues for Q3 fiscal 2024 were $493.0 million, an increase of 6.0% from the prior quarter and 7.7% from the same period last year[8]. - GAAP diluted earnings per share (EPS) for Q3 fiscal 2024 was $1.26, reflecting a decrease of 22.7% compared to the same period last year[19]. - Non-GAAP diluted EPS for Q3 fiscal 2024 was $1.28, down 22.4% from the comparable prior year period[19]. - Gross profit for Q3 fiscal 2024 was $174.1 million, with a gross margin of 35.3%, down from 38.2% in the prior quarter and 41.2% in the same period last year[10]. - Net income for the three months ended March 31, 2024, was $76,290,000, a decrease of 7% from $82,116,000 in the previous quarter[27]. - Non-GAAP net income for the same period was $77,555,000, down 7% from $83,261,000 quarter-over-quarter[27]. - For the nine months ended March 31, 2024, net income totaled $246,156,000, down 19% from $303,964,000 in the same period last year[27]. - Non-GAAP net income for the nine months ended March 31, 2024, was $249,708,000, a decrease of 18% from $306,557,000 year-over-year[27]. Expenses - Research and development (R&D) expenses increased to $42.5 million in Q3 fiscal 2024, up from $36.9 million in the prior quarter and $38.2 million in the same period last year[12]. - Sales, general and administrative (SG&A) expenses were $20.4 million in Q3 fiscal 2024, compared to $19.6 million in the prior quarter and $16.7 million in the same period last year[14]. - Interest expense and other net expenses were $18.9 million in Q3 fiscal 2024, an increase from $18.3 million in the prior quarter and $16.5 million in the same period last year[16]. - The company reported share-based compensation expenses of $1,664,000 for the three months ended March 31, 2024, compared to $1,506,000 in the previous quarter[27]. Revenue Segmentation - Total revenues from the Enterprise Technology segment were $414.3 million, while Service Provider Technology revenues were $78.7 million in Q3 fiscal 2024[4]. - North America generated $242.5 million in revenues, while Europe, the Middle East, and Africa contributed $200.7 million in Q3 fiscal 2024[7]. Dividends - The Company declared a cash dividend of $0.60 per share, payable on May 28, 2024[3]. Non-GAAP Financial Measures - Management uses non-GAAP financial measures to evaluate operating performance and facilitate comparability of results across periods[31]. - Non-GAAP measures are adjusted to exclude certain costs, including share-based compensation and tax effects, to provide a clearer view of operational performance[32]. - The company emphasizes that non-GAAP financial measures should not be considered a substitute for GAAP measures, as they have limitations in reflecting certain items impacting financial results[32].