Core Insights - The company reported a fourth quarter revenue growth of 41.8%, reaching $31.1 million, driven by strong performance across all segments, particularly in Safety Tech and Aeronautics [1][8] - The adjusted net loss for the quarter narrowed to $3.7 million from $11.2 million in the prior year, marking a significant improvement in profitability [1][11] - The company achieved its first-ever quarter of positive adjusted EBITDA at $0.2 million, compared to a negative $6.0 million in the same quarter last year [1][11] - Full-year sales surpassed $100 million for the first time, with over 80% of sales coming from recurring customers [1][5] - The company introduced a 10-year committed and contracted backlog, indicating strong long-term demand across segments [1] - Initial guidance for 2025 anticipates healthy double-digit revenue growth and the first full year of positive adjusted EBITDA [1][19] Fourth Quarter 2024 Highlights - Revenue for the fourth quarter increased to $31.1 million, a 41.8% increase from $22.0 million in Q4 2023 [7][8] - Gross profit for the quarter was $11.4 million, up 81.4% from $6.3 million in the prior year, with a gross margin improvement to 36.5% from 28.5% [9][10] - Total operating expenses rose to $15.8 million, a 5.5% increase compared to $15.0 million in Q4 2023, primarily due to increased stock-based compensation [10] Full Year 2024 Highlights - Total revenue for the full year reached $103.5 million, a 32.8% increase from $78.0 million in 2023 [7] - The gross margin for the full year improved to 28.7%, up 310 basis points from 25.6% in the previous year [7] - The net loss for the year was $53.2 million, reduced from a loss of $79.3 million in 2023 [7] Segment Performance - **Safety-Tech Division**: Revenue increased by 73.0% to $13.0 million, with gross profit rising 212.7% to $3.0 million [12] - **Aeronautics Division**: Revenue grew by 26.7% to $13.4 million, with gross profit increasing 62.2% to $6.8 million [13] - **Architecture Division**: Revenue rose by 31.8% to $4.1 million, with gross profit up 54.8% to $1.5 million [16] - **Automotive Division**: Revenue decreased by 14.7% to $0.7 million, reflecting timing impacts of full-year orders [17] Financial Position - As of December 31, 2024, the company had total liquidity of $40.6 million, including $5.6 million in cash and a $35.0 million undrawn credit facility [18] - Total debt stood at $38.4 million, with a significant portion being short-term receivable financings [18] Future Outlook - The company expects full-year revenue for 2025 to be in the range of $130 million to $140 million, representing approximately 30% growth compared to 2024 [19] - The anticipated positive adjusted EBITDA for 2025 is expected to be supported by a strong recurring revenue base and operational leverage [19]

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]

Revenue Performance - Revenue for the three and nine months ended October 31, 2024, was $82.7 million and $200.9 million, representing increases of 63.4% and 14.9% compared to the same periods in the prior fiscal year[83]. - Revenue for the three months ended October 31, 2024, was $82,653 million, a 63.4% increase from $50,595 million in the same period of 2023[94]. - The increase in revenue was driven by higher product unit shipments and an increased percentage of sales from higher value AI inference processors[105]. - The company’s revenue has been significantly concentrated in a small number of end markets, primarily IoT and automotive, which have generated the majority of its revenue since fiscal year 2018[89]. Operating Losses and Expenses - Operating losses for the three and nine months ended October 31, 2024, were $25.5 million and $101.2 million, improved from losses of $42.0 million and $112.8 million in the same periods of 2023[83]. - Net loss for the three months ended October 31, 2024, was $(24,071) million, compared to $(41,710) million in the same period of 2023[94]. - Research and development expenses increased to $58,389 million for the three months ended October 31, 2024, an 8.7% increase from $53,702 million in the same period of 2023[107]. - Selling, general and administrative expenses decreased to $17,169 million for the three months ended October 31, 2024, down 5.9% from $18,246 million in the same period of 2023[109]. Cash Flow and Financial Position - Cash flows from operating activities for the nine months ended October 31, 2024, were $8.4 million, down from $23.1 million in the same period of 2023[83]. - As of October 31, 2024, the company had cash, cash equivalents, and marketable debt securities totaling approximately $226.5 million[113]. - Net cash provided by operating activities for the nine months ended October 31, 2024, decreased to $8,406,000 from $23,056,000 in the prior year[115]. - Net cash used in investing activities increased to $(30,060,000) for the nine months ended October 31, 2024, compared to $5,052,000 in the same period last year[117]. Research and Development Focus - The company anticipates increased research and development expenditures to support the development of innovative video and image processing solutions, particularly in AI and computer vision technologies[79]. - Research and development expenses are expected to continue increasing as the company enhances product features and expands offerings[101]. Market and Product Strategy - The company expects AI and computer vision functionalities to become increasingly important in markets such as IoT, automotive, and industrial applications[85]. - The company has focused on expanding its presence in camera markets, particularly in AI-enabled security cameras and advanced driver assistance systems (ADAS)[79]. - The average selling price of products is expected to increase due to a higher percentage of sales from AI inference processors[83]. - The average selling prices of solutions fluctuate based on the mix of products sold, with AI and CV-based solutions generally commanding higher prices[97]. Supply Chain and Production - The company has experienced supply chain challenges, particularly with certain chips from Samsung Electronics, but expects conditions to stabilize in the future[93]. - Volume production of new designs may begin within 9 to 18 months after a design win, with longer cycles expected in automotive and industrial markets[82]. Other Income and Tax Rate - Other income, net for the three months ended October 31, 2024, increased to $2,091,000, a 10.1% change from $1,900,000 in the same period last year[110]. - For the nine months ended October 31, 2024, other income, net rose to $6,507,000, reflecting a significant increase of 65.9% from $3,923,000[110]. - The effective tax rate for the three months ended October 31, 2024, was (2.8)%, compared to (4.1)% in the same period last year, indicating a decrease in income tax expense[111]. Share Repurchase and Obligations - The company approved an extension of its share repurchase program, with approximately $49.0 million remaining available for repurchases through June 30, 2025[119]. - The company had purchase obligations with independent contract manufacturers amounting to $51.4 million as of October 31, 2024[121]. - Estimated future undiscounted cash payments for IT infrastructure service commitments were approximately $8.0 million, expected to be paid over the next 12 to 61 months[123]. - The company did not engage in any off-balance sheet arrangements as of October 31, 2024[125].

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]

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]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 AMBARELLA, INC. (Exact name of registrant as specified in its charter) Title of each class Trading Symbol Name of each exchange on which registered Ordinary Shares, $0.00045 Par Value Per Share AMBA The Nasdaq Global Select Market Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended July 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d ...

Financial Data and Key Metrics Changes - Revenue for Q2 fiscal year 2025 was $63.7 million, up 17% sequentially and up 3% year-over-year [19] - Non-GAAP gross margin for Q2 was 63.3%, slightly above the midpoint of prior guidance [19] - Non-GAAP net loss was $5.5 million, or a $0.13 loss per diluted share [20] - Cash and marketable securities increased by $16.5 million to $219.8 million [20] - Positive operating cash flow of $16.7 million was generated for the quarter [20] Business Line Data and Key Metrics Changes - Auto revenue grew slightly sequentially, while IoT revenue represented about 70% of total revenue [8] - Record edge AI inference revenue supported a higher blended average selling price [8] - New products, particularly the CV5 family, are expected to drive significant revenue growth [10][12] Market Data and Key Metrics Changes - Global auto production is forecasted to decline slightly this year, impacting the automotive market [9] - Demand for AI-powered solutions is rising, particularly in IoT and automotive sectors [9] - The enterprise security camera market is seeing new product introductions with higher ASPs [15] Company Strategy and Development Direction - The company is focused on ramping new products, including the CV5, CV7, and CV3-AD families, which are expected to drive future revenue growth [10][12] - Investment in AI inference and edge computing is a strategic priority, with expectations for significant long-term growth [17] - The company aims to achieve profitability while managing expenses and sustaining investment in R&D [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving mid to high-teens percent revenue growth for fiscal year 2025 [8] - The economic environment presents headwinds, but company-specific factors are driving strong results [9] - Inventory corrections are largely complete, allowing for a return to normal ordering patterns [45] Other Important Information - The company will participate in several upcoming technology conferences, indicating ongoing engagement with investors and industry stakeholders [6] - The CV72 product is expected to ramp up production by the end of fiscal year 2025, with potential for advanced applications in the future [38] Q&A Session Summary Question: Is the vision language model a new opportunity? - The vision language model was demonstrated at CES and has attracted customer interest for real-time applications [26] Question: How does the guidance for Q3 compare to traditional seasonality? - The guidance reflects normal seasonality, with expectations for a typical decline in Q4 [28] Question: What is driving the strength in the upcoming quarter? - Strength is driven by new product introductions and higher ASPs in both IoT and automotive markets [30] Question: How is the company addressing pricing pressures in the Chinese market? - The company acknowledges pricing pressures but maintains that gross margin profiles will remain stable [68] Question: What is the outlook for the consumer IoT segment? - The consumer IoT segment remains weak, but potential future applications may provide opportunities for growth [80]

Exhibit 99.1 Ambarella, Inc. Announces Second Quarter Fiscal Year 2025 Financial Results August 27, 2024 —Santa Clara, Calif. – Ambarella, Inc. (NASDAQ: AMBA), an edge AI semiconductor company, today announced financial results for its second quarter of fiscal year 2025 ended July 31, 2024. • Revenue for the second quarter of fiscal 2025 was $63.7 million, up 3% from $62.1 million in the same period in fiscal 2024. For the six months ended July 31, 2024, revenue was $118.2 million, down 5% from $124.3 milli ...

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Ambarella's unaudited condensed consolidated financial statements for the quarter ended April 30, 2024, show total assets decreased to **$638.7 million** and net loss increased to **$37.9 million** [Condensed Consolidated Balance Sheets](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) As of April 30, 2024, total assets decreased to **$638.7 million** from **$657.7 million**, primarily due to reduced cash and marketable securities, while total liabilities also decreased to **$83.2 million** Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | April 30, 2024 | January 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | $266,907 | $280,157 | | Cash and cash equivalents | $131,810 | $144,914 | | **Total assets** | **$638,660** | **$657,655** | | **Total current liabilities** | $72,245 | $82,979 | | Accounts payable | $16,470 | $28,503 | | **Total liabilities** | **$83,235** | **$97,784** | | **Total shareholders' equity** | **$555,425** | **$559,871** | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) For the three months ended April 30, 2024, revenue decreased by **12.3%** to **$54.5 million**, resulting in a wider net loss of **$37.9 million** or **($0.93)** per share Statement of Operations Summary (in thousands, except per share data) | Metric | Three Months Ended April 30, 2024 | Three Months Ended April 30, 2023 | | :--- | :--- | :--- | | Revenue | $54,473 | $62,142 | | Gross Profit | $33,160 | $37,519 | | Loss from Operations | $(39,445) | $(35,542) | | Net Loss | $(37,932) | $(35,902) | | Diluted Net Loss Per Share | $(0.93) | $(0.91) | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash outflow from operating activities was **$15.0 million** for the three months ended April 30, 2024, a reversal from the prior year's inflow, primarily due to a higher net loss and working capital changes Cash Flow Summary (in thousands) | Cash Flow Activity | Three Months Ended April 30, 2024 | Three Months Ended April 30, 2023 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(14,951) | $22,025 | | Net cash provided by (used in) investing activities | $2,135 | $(8,210) | | Net cash (used in) provided by financing activities | $(288) | $385 | | **Net (decrease) increase in cash** | **$(13,104)** | **$14,200** | [Notes to Unaudited Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The notes detail accounting policies, financial instruments, and segment reporting, highlighting high revenue concentration with **WT Microelectronics** and **Chicony** accounting for **62%** and **13%** of revenue respectively - The company operates in a single reporting segment focused on the development and sales of low-power, HD, Ultra HD video compression, image processing, and AI computer vision solutions[94](index=94&type=chunk) - Revenue concentration remains high. For the three months ended April 30, 2024, distributor **WT Microelectronics** accounted for **62%** of revenue and ODM **Chicony** accounted for **13%**[97](index=97&type=chunk) - On May 29, 2024, the Board of Directors approved a twelve-month extension of the existing share repurchase program through June 30, 2025, with approximately **$49.0 million** available for repurchases[98](index=98&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=19&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a **12.3%** year-over-year revenue decrease to **$54.5 million** and a widened operating loss, emphasizing strategic focus on AI and computer vision for future growth [Overview](index=19&type=section&id=Overview) Ambarella focuses on developing low-power SoCs with its **CVflow™ architecture** for AI processing in edge devices, targeting future growth in IoT, automotive ADAS, industrial, and robotics markets - The company's strategic focus is on advanced AI technology, specifically its **CVflow™ architecture**, to enable edge devices to visually perceive their environment and make decisions[102](index=102&type=chunk) - Future revenue growth is expected to depend significantly on expanding within camera markets with computer vision technology, particularly in the Internet of Things (**IoT**), automotive **ADAS**, industrial, and robotics markets[103](index=103&type=chunk) [Results of Operations](index=22&type=section&id=Results%20of%20Operations) Operational results show a **12.3%** YoY revenue decrease to **$54.5 million** despite a slight gross margin increase to **60.9%**, leading to an increased operating loss Revenue Comparison (in thousands) | Period | Revenue | Change Amount | Change % | | :--- | :--- | :--- | :--- | | Q1 FY2025 | $54,473 | $(7,669) | (12.3)% | | Q1 FY2024 | $62,142 | | | - Gross margin increased slightly to **60.9%** from **60.4%** YoY, primarily due to sales of inventory that was previously reserved and lower adverse purchase commitments[130](index=130&type=chunk) - R&D expense decreased by **0.6%** YoY to **$54.1 million**, and SG&A expense decreased by **0.8%** YoY to **$18.5 million**, both primarily due to lower personnel costs[131](index=131&type=chunk)[132](index=132&type=chunk) [Liquidity and Capital Resources](index=25&type=section&id=Liquidity%20and%20Capital%20Resources) As of April 30, 2024, the company held **$203.3 million** in cash and marketable securities, with a **$15.0 million** net cash outflow from operations, but believes existing cash is sufficient for the next 12 months - The company had cash, cash equivalents, and marketable debt securities of approximately **$203.3 million** as of April 30, 2024[136](index=136&type=chunk) - Net cash used in operating activities was **$15.0 million**, a significant decrease from the **$22.0 million** provided by operating activities in the same period last year, primarily due to reductions in working capital and a higher net loss[138](index=138&type=chunk)[139](index=139&type=chunk) - The share repurchase program was extended through June 30, 2025, with **$49.0 million** available. No shares were repurchased in the quarter[142](index=142&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=26&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) There have been no material changes to the company's market risk disclosures since its Annual Report on **Form 10-K** for the fiscal year ended January 31, 2024 - There have been no material changes to the market risk as described in the company's 2024 **Form 10-K**[148](index=148&type=chunk) [Controls and Procedures](index=27&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were not effective as of April 30, 2024, due to a previously identified material weakness in accounting for income taxes, for which remediation is ongoing - Management concluded that disclosure controls and procedures were not effective as of April 30, 2024, due to a previously identified material weakness[150](index=150&type=chunk) - The material weakness relates to the company not designing and maintaining effective controls over the accounting for income taxes, specifically a lack of tax personnel with the appropriate skills and experience to assess complicated tax matters[151](index=151&type=chunk) - A remediation plan is underway, which includes implementing enhancements to existing control activities, improving documentation standards, and increasing technical oversight and training[152](index=152&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=28&type=section&id=Item%201.%20Legal%20Proceedings) The company reports that it is not engaged in any material legal proceedings at this time - The company is not currently engaged in any material legal proceedings[155](index=155&type=chunk) [Risk Factors](index=28&type=section&id=Item%201A.%20Risk%20Factors) This section details numerous risks including dependence on customer design wins, failure to penetrate new markets, intense competition, supply chain issues, customer concentration, and the previously disclosed material weakness in internal controls - Business Risk: Success is highly dependent on customers designing Ambarella's solutions into their products and the commercial success of those end products[159](index=159&type=chunk)[160](index=160&type=chunk)[161](index=161&type=chunk) - Market Risk: Failure to penetrate new markets, such as automotive OEM and **ADAS**, or if target markets like AI and computer vision do not grow as expected, could harm revenue[162](index=162&type=chunk)[173](index=173&type=chunk)[174](index=174&type=chunk) - Supply Chain & Customer Concentration Risk: The company relies on a limited number of customers (**WT** and **Chicony** accounted for **62%** and **13%** of revenue, respectively) and third-party manufacturers, and is subject to supply chain disruptions and inventory forecasting challenges[178](index=178&type=chunk)[179](index=179&type=chunk)[236](index=236&type=chunk) - Internal Control Risk: A material weakness was identified in internal control over financial reporting as of January 31, 2024, related to the accounting for income taxes, which could result in a material misstatement in financial statements if not remediated[279](index=279&type=chunk)[280](index=280&type=chunk) [Other Information](index=58&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated a **Rule 10b5-1** or non-**Rule 10b5-1** trading arrangement during the fiscal quarter ended April 30, 2024 - No director or officer adopted or terminated a **Rule 10b5-1** or non-**Rule 10b5-1** trading plan during the quarter ended April 30, 2024[320](index=320&type=chunk) [Exhibits](index=58&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the **Form 10-Q**, including certifications by the CEO and CFO and **Inline XBRL** documents - This section lists the exhibits filed as part of the Quarterly Report, including officer certifications required under the **Sarbanes-Oxley Act** and **Inline XBRL** data files[321](index=321&type=chunk)[322](index=322&type=chunk)

Ambarella, Inc. (NASDAQ:AMBA) Q1 2025 Earnings Conference Call May 30, 2024 4:30 PM ET Company Participants Louis Gerhardy - Vice President of Corporate Development Fermi Wang - Chief Executive Officer John Young - Chief Financial Officer Conference Call Participants Christopher Rolland - Susquehanna Joe Moore - Morgan Stanley Kevin Cassidy - Rosenblatt Securities Nick Doyle - Needham and Company Jeremy Kwan - Stifel David O 'Connor - BNP Paribas Richard Shannon - Craig Hallium Capital Kevin Garrigan - West ...