Ambarella, Inc. Reports Financial Results for Q3 FY2025
1. Overview
Ambarella, Inc. (NASDAQ: AMBA), an edge AI semiconductor company, has reported its financial results for the third quarter of fiscal year 2025, which ended on October 31, 2024.
2. Key Financial Metrics
| Metric | Q3 FY2025 | Q3 FY2024 | YoY Change | Consensus Estimates | Variance to Estimates |
|---|---|---|---|---|---|
| Revenue | $82.7M | $50.6M | +63% | $79.03M | +4.65% |
| GAAP EPS | ($0.58) | ($1.04) | -44% | $0.04 | - |
| Non-GAAP EPS | $0.11 | ($0.28) | - | - | - |
| GAAP Net Loss | $24.1M | $41.7M | -42% | - | - |
| Non-GAAP Net Income/Loss | $4.5M | ($11.2M) | - | - | - |
Interpretation : Ambarella exceeded revenue consensus estimates, reporting a significant year-over-year revenue increase of 63%, driven primarily by demand for its edge AI products. The company also narrowed its GAAP net loss significantly from the same quarter last year.
3. Key Developments and Operational Highlights
- Ambarella's edge AI revenue represented about 70% of total revenue, setting a new record.
- The company reports 30% sequential revenue growth, surpassing the high-end of its guidance.
- Ambarella held $226.5 million in total cash, cash equivalents, and marketable debt securities at the end of Q3 FY2025.
4. Comments from the Company's Officers
Fermi Wang, President and CEO, emphasized that the company's strong performance was driven by the success of new consumer products featuring AI inference processors. He noted that the edge AI segment continues to establish record revenue levels, with expected growth in IoT and automotive markets for fiscal years 2025 and 2026. Wang stated an intention to drive positive operating leverage and maintain positive free-cash-flow.
5. Forward Guidance
Ambarella projects Q4 FY2025 revenue to range between $76.0 million and $80.0 million, with non-GAAP gross margins expected between 61.5% and 63.0%, and operating expenses ranging from $49.0 million to $52.0 million.
6. Stock Price Movement
Following the earnings release, Ambarella's stock saw an increase of approximately 1.61%.
This earnings announcement highlights Ambarella's strong execution and strategic focus on edge AI technology, supporting positive future growth projections.
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