Ambarella, Inc. Announces Third Quarter Fiscal Year 2025 Financial Results

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]