AMBARELLA Reports Financial Results for Q2 FY2024 at the End of July 2023
September 14, 2023
🌥️Earnings Overview
On July 31, 2023, AMBARELLA ($NASDAQ:AMBA) reported its financial results for the second quarter of FY2024, which ended on the same date. The total revenue was USD 62.1 million, a 23.2% decline compared to the same period a year earlier. Net income was reported at USD -31.2 million, as compared to USD -23.6 million in the year-ago quarter.
Share Price
On Tuesday, AMBARELLA reported its financial results for the second quarter of the fiscal year 2024, ending at the end of July 2023. The stock opened at $72.8 and closed at $75.8, up by 4.5% from its prior closing price of 72.5. The increase was attributed to strong customer demand, which helped to offset the impact of higher operating expenses due to investments in new products and services.
This was driven by increased sales and strong management of operating expenses. Overall, AMBARELLA’s strong financial results for the second quarter of FY2024 are a positive sign for investors as the company continues to grow and invest in new products and services. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Ambarella. AMBARELLA_Reports_Financial_Results_for_Q2_FY2024_at_the_End_of_July_2023″>More…
| Total Revenues | Net Income | Net Margin |
| 290.68 | -98.01 | -33.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Ambarella. AMBARELLA_Reports_Financial_Results_for_Q2_FY2024_at_the_End_of_July_2023″>More…
| Operations | Investing | Financing |
| 32.56 | -107.3 | 5.7 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Ambarella. AMBARELLA_Reports_Financial_Results_for_Q2_FY2024_at_the_End_of_July_2023″>More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 696.24 | 93.93 | 15.21 |
Key Ratios Snapshot
Some of the financial key ratios for Ambarella are shown below. AMBARELLA_Reports_Financial_Results_for_Q2_FY2024_at_the_End_of_July_2023″>More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 8.1% | -22.2% | -39.4% |
| FCF Margin | ROE | ROA |
| 6.8% | -11.8% | -10.3% |
Analysis
At GoodWhale, we have conducted a comprehensive analysis of AMBARELLA‘s financials, and have concluded that it is a high risk investment in terms of financial and business aspects. We have detected four risk warnings in its income sheet, balance sheet, cashflow statement and non-financial metrics. In our income sheet analysis, we have observed that AMBARELLA has experienced a decline in revenue in the past few years and that the fluctuations in revenue do not appear to be consistent or reliable. On our balance sheet analysis, we have noticed that AMBARELLA’s liabilities are higher than its assets, indicating an unstable financial position. Moreover, its long-term debt and other liabilities have been increasing over time, which can be a cause for concern. In our cashflow statement analysis, we have found that AMBARELLA’s free cash flows are negative, indicating that the company is not generating enough cash from its operations to pay off its liabilities. Additionally, we have discovered that the company is consistently spending more than it earns in operating activities. Finally, on our non-financial analysis, we have identified significant risks in AMBARELLA’s corporate governance practices. The company has been found to lack transparency and is not adequately addressing environmental and social issues. Overall, our analysis of AMBARELLA’s financials suggests that it is a high risk investment. If you are considering investing in AMBARELLA, we strongly encourage you to register with us to access our detailed analysis and risk warnings. More…
Peers
The company has a wide range of products that are used in various industries such as security, automotive, sports, and wearables. Ambarella Inc’s main competitors are Amtech Systems Inc, Qorvo Inc, AverLogic Technologies Inc.
– Amtech Systems Inc ($NASDAQ:ASYS)
Amtech Systems Inc is a global supplier of production equipment and services for the solar and semiconductor industries. The company has a market cap of 122.5M as of 2022 and a Return on Equity of 1.5%. Amtech’s products include silicon wafer handling equipment, thermal processing equipment, and related consumables used in the fabrication of solar cells, light-emitting diode (LED) chips and other semiconductor devices.
– Qorvo Inc ($NASDAQ:QRVO)
Qorvo Inc is a radio frequency chip company that provides radio frequency products for use in mobile, infrastructure, and aerospace/defense applications. The company has a market cap of $8.82 billion and a return on equity of 19.7%. Qorvo’s products are used in a variety of applications, including cell phones, base stations, WiFi, GPS, and satellite communications.
– AverLogic Technologies Inc ($TPEX:6198)
AverLogic Technologies Inc is a fabless semiconductor company that designs, develops, and markets high-performance mixed-signal integrated circuits (ICs). The company offers a broad range of IC solutions for the multimedia, data communications, and industrial markets. Its product portfolio includes video and audio processing ICs, video encoding and decoding ICs, video and audio output ICs, video input ICs, data conversion ICs, and interface ICs. AverLogic Technologies Inc is headquartered in Hsinchu, Taiwan.
Summary
Investors analyzing Ambarella have seen a decrease in the company’s financial performance in its second quarter of FY2024, with total revenue reported at USD 62.1 million and a year-over-year decrease of 23.2%. Despite the decrease in net income from -23.6 million to -31.2 million, the stock price of Ambarella moved up on the day of the announcement. Although the company continues to face financial challenges, investors seem to have responded positively to the news, making it a viable investment option.
Related Posts
Recent Posts
