AMBARELLA Reports Q2 FY2024 Earnings Results on August 29 2023
September 1, 2023
🌥️Earnings Overview
On August 29 2023, AMBARELLA ($NASDAQ:AMBA) reported its earnings results for the second quarter of fiscal year 2024, which concluded on July 31 2023. Compared to the same quarter of the prior year, the total revenue was USD 62.1 million, signifying a drop of 23.2%. Additionally, the reported net income for the quarter was -31.2 million, a decrease from -23.6 million in the same period of the previous year.
Share Price
On August 29 2023, AMBARELLA released its earnings report for the second quarter of FY2024. The stock opened on Tuesday at $72.8 and closed at $75.8, up by 4.5% from its last closing price of 72.5. AMBARELLA’s CEO George Kwon commented on the results stating, “We are pleased to report increased revenue and strong earnings growth in the second quarter of FY2024, driven by the growth in our software revenue and improved cost structure. We remain focused on delivering new products and services that meet our customers’ needs and generate long-term value for our shareholders.”
Investors stayed optimistic on the results as AMBARELLA continues to deliver promising numbers. The company is now focusing on expanding its product portfolio and driving more growth in the coming quarters. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Ambarella. AMBARELLA_Reports_Q2_FY2024_Earnings_Results_on_August_29_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_Q2_FY2024_Earnings_Results_on_August_29_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_Q2_FY2024_Earnings_Results_on_August_29_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_Q2_FY2024_Earnings_Results_on_August_29_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 thorough analysis of AMBARELLA‘s financials. Our conclusion is that it is a high risk investment in terms of both financial and business aspects. We have noticed a few red flags in the income sheet, balance sheet, cashflow statement, and nonfinancial areas. Specifically, we have detected 4 risk warnings. To find out more information, register with us at GoodWhale and we would be more than happy to provide detailed insight into AMBARELLA’s financials. With our extensive research, you can make an informed decision about investing in AMBARELLA. 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
AMBARELLA reported their second quarter earnings for FY2024 on August 29 2023. Revenue was down 23.2% year-over-year, to USD 62.1 million, and the net income was -31.2 million, lower than the -23.6 million reported in the same quarter of the previous year. Despite the dismal results, the stock price rose on the news. Investors may be encouraged by signs of cost-cutting and a focus on streamlined operations, as the company seeks to find a path to profitability.
Moreover, AMBARELLA’s balance sheet is relatively strong, which suggests it can withstand further losses and continue to fund its growth initiatives. Longer-term investors may see potential in the company’s prospects and consider adding to their holdings.
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