Ambarella (AMBA) reports narrower-than-expected Q1 loss, revenues decline but beat estimates

From Nasdaq: 2024-05-31 10:28:00

Ambarella (AMBA) saw a 16% gain in after-hours trading, reporting a narrower-than-expected loss in Q1 of fiscal 2025. Despite a decline in revenues, the company’s non-GAAP loss of 26 cents per share beat estimates. Q1 revenues dropped 12.3% YoY to $54.5 million but surpassed expectations, driven by IoT and AI growth.

AMBA had key customers like WT Microelectronics and Chicony contributing over 10% of revenues each in Q1, with strong sales of its CV flow system-on-a-chip in professional IP cameras. The company anticipates revenue growth in fiscal 2025 with the CV2 family being a key driver.

In Q1, the non-GAAP gross margin for AMBA was 63.4%, up YoY, with operating expenses under control at $46.7 million. The company’s balance sheet showed $203.3 million in cash and cash equivalents as of April 30, 2024, expecting stability in near-term revenues and sequential growth in IoT and AI for Q2.

Currently holding a Zacks Rank #3, AMBA has fallen 21.2% YTD. Better-ranked stocks like APPF, ANET, and GOOGL with a Zacks Rank #1 have shown strong performance YTD, reflecting positive EPS estimate revisions and stock price gains. Experts have identified these as potential early price pop candidates in the market.



Read more at Nasdaq: Ambarella (AMBA) Soars 16% on Narrower-Than-Expected Q1 Loss