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Ambarella (AMBA) Q4 Earnings Beat Estimates, Revenues Miss
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Ambarella (AMBA - Free Report) reported fourth-quarter fiscal 2022 non-GAAP earnings of 45 cents per share, which outpaced the Zacks Consensus Estimate by 4.7%. The reported figure soared 221% from the prior-year quarter’s earnings of 14 cents per share.
Revenues surged 45% year over year to $90.2 million but narrowly missed the consensus mark of $90.4 million. The robust year-over-year top-line growth was primarily driven by improvement in the automotive and security camera businesses.
Customer & Market Details
Ambarella had two customers that contributed more than 10% in the reported quarter. WT Microelectronics, a fulfillment partner in Taiwan that serves multiple customers in Asia, accounted for 59% of the company’s revenues. Hakuto, a Japanese distributor for automotive customers, contributed 12%.
Momentum in Ambarella’s CV flow SoCs (system-on-a-chip) in professional IP cameras across all geographies continued in the reported quarter.
Non-GAAP gross margin was 64.8%, up 340 basis points (bps) year over year in the fiscal fourth quarter.
A healthy customer and product mix supported by stable price movements aided gross-margin expansion in the fiscal fourth quarter.
On a non-GAAP basis, operating expenses were $40.3 million, up 13.2% sequentially. Non-GAAP operating expenses were slightly above the mid-point of the company’s prior guidance, mainly driven by increase in organic research & development investments.
Headcount at the end of the fiscal fourth quarter was 899, with about 82% of the employees dedicated to engineering. Roughly 65% of these engineers are from Asia.
Net inventory was $45.2 million as of Jan 31, 2022, down 4% sequentially.
Balance Sheet & Cash Flow
As of Jan 31, 2022, Ambarella had cash and cash equivalents & marketable securities of $171 million compared with $457.8 million as of Oct 31, 2021.
In the fiscal fourth quarter, the company generated an operating cash flow of $20.6 million. During the full-fiscal 2022, Ambarella generated an operating cash flow of $38.8 million.
Full-Year Highlights
For the full-fiscal 2022, Ambarella reported revenues of $331.9 million, indicating a surge of 49% year over year.
The company reported non-GAAP earnings of $1.61 per share, reflecting a whopping 387.9% surge.
Non-GAAP gross margin expanded 200 bps to 63.4%. Non-GAAP operating margin expanded 150 bps to 19%.
Guidance
For first-quarter fiscal 2023, revenues are expected between $88.5 million and $91.5 million. Non-GAAP gross margin is anticipated to be 63-64%.
Non-GAAP operating expenses are projected to be $41-$43 million.
Management noted that supply chain constraints will remain a concern in the first quarter of fiscal 2023.
Zacks Rank & Key Picks
Ambarella currently carries a Zacks Rank #3 (Hold).
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Ambarella (AMBA) Q4 Earnings Beat Estimates, Revenues Miss
Ambarella (AMBA - Free Report) reported fourth-quarter fiscal 2022 non-GAAP earnings of 45 cents per share, which outpaced the Zacks Consensus Estimate by 4.7%. The reported figure soared 221% from the prior-year quarter’s earnings of 14 cents per share.
Revenues surged 45% year over year to $90.2 million but narrowly missed the consensus mark of $90.4 million. The robust year-over-year top-line growth was primarily driven by improvement in the automotive and security camera businesses.
Customer & Market Details
Ambarella had two customers that contributed more than 10% in the reported quarter. WT Microelectronics, a fulfillment partner in Taiwan that serves multiple customers in Asia, accounted for 59% of the company’s revenues. Hakuto, a Japanese distributor for automotive customers, contributed 12%.
Momentum in Ambarella’s CV flow SoCs (system-on-a-chip) in professional IP cameras across all geographies continued in the reported quarter.
Ambarella, Inc. Price, Consensus and EPS Surprise
Ambarella, Inc. price-consensus-eps-surprise-chart | Ambarella, Inc. Quote
Operating Details
Non-GAAP gross margin was 64.8%, up 340 basis points (bps) year over year in the fiscal fourth quarter.
A healthy customer and product mix supported by stable price movements aided gross-margin expansion in the fiscal fourth quarter.
On a non-GAAP basis, operating expenses were $40.3 million, up 13.2% sequentially. Non-GAAP operating expenses were slightly above the mid-point of the company’s prior guidance, mainly driven by increase in organic research & development investments.
Headcount at the end of the fiscal fourth quarter was 899, with about 82% of the employees dedicated to engineering. Roughly 65% of these engineers are from Asia.
Net inventory was $45.2 million as of Jan 31, 2022, down 4% sequentially.
Balance Sheet & Cash Flow
As of Jan 31, 2022, Ambarella had cash and cash equivalents & marketable securities of $171 million compared with $457.8 million as of Oct 31, 2021.
In the fiscal fourth quarter, the company generated an operating cash flow of $20.6 million. During the full-fiscal 2022, Ambarella generated an operating cash flow of $38.8 million.
Full-Year Highlights
For the full-fiscal 2022, Ambarella reported revenues of $331.9 million, indicating a surge of 49% year over year.
The company reported non-GAAP earnings of $1.61 per share, reflecting a whopping 387.9% surge.
Non-GAAP gross margin expanded 200 bps to 63.4%. Non-GAAP operating margin expanded 150 bps to 19%.
Guidance
For first-quarter fiscal 2023, revenues are expected between $88.5 million and $91.5 million. Non-GAAP gross margin is anticipated to be 63-64%.
Non-GAAP operating expenses are projected to be $41-$43 million.
Management noted that supply chain constraints will remain a concern in the first quarter of fiscal 2023.
Zacks Rank & Key Picks
Ambarella currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader computer and technology sector include the Axcelis Technologies (ACLS - Free Report) sporting a Zacks Rank #1 (Strong Buy), iPhone maker Apple (AAPL - Free Report) and Analog Devices (ADI - Free Report) carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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Axcelis’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 30.3%. Shares of ACLS have rallied 74.3% in the past year.
The Zacks Consensus Estimate for Apple’s second-quarter fiscal 2022 earnings has been revised upward by 3.6% to $1.43 per share over the past 30 days. For fiscal 2022, earnings estimates have moved north by 5.7% to $6.15 per share in the past 30 days.
Apple’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 20.3%. AAPL stock has appreciated 29.2% in the past year.
The Zacks Consensus Estimate for Analog Devices’ second-quarter fiscal 2022 earnings has been revised upward by 23 cents to $2.08 per share over the past 30 days. For fiscal 2022, earnings estimates have moved north by 79 cents to $8.32 per share in the past 30 days.
Analog Devices’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 6%. Shares of ADI have gained 1.1% in the past year.