Ambarella, Inc. Announces Fourth Quarter and Fiscal Year 2021 Financial Results
- Revenue for the fourth quarter of fiscal 2021 was
$62.1 million , up 9% from$57.2 million in the same period in fiscal 2020. For the fiscal year endingJanuary 31, 2021 , revenue was$223.0 million , down 3% from$228.7 million for the fiscal year endingJanuary 31, 2020 . - Gross margin under
U.S. generally accepted accounting principles (GAAP) for the fourth quarter of fiscal 2021 was 60.8%, compared with 58.2% for the same period in fiscal 2020. For the fiscal year endingJanuary 31, 2021 , GAAP gross margin was 60.8%, compared with 58.0% for the fiscal year endingJanuary 31, 2020 . - GAAP net loss for the fourth quarter of fiscal 2021 was
$12.5 million , or loss per diluted ordinary share of$0.35 , compared with a GAAP net loss of$13.0 million , or loss per diluted ordinary share of$0.39 , for the same period in fiscal 2020. GAAP net loss for the fiscal year endingJanuary 31, 2021 was$59.8 million , or loss per diluted ordinary share of$1.72 . This compares with GAAP net loss of$44.8 million , or loss per diluted ordinary share of$1.35 , for the fiscal year endingJanuary 31, 2020 .
Financial results on a non-GAAP basis for the fourth quarter of fiscal 2021 are as follows:
- Gross margin on a non-GAAP basis for the fourth quarter of fiscal 2021 was 61.4%, compared with 58.7% for the same period in fiscal 2020. For the fiscal year ending
January 31, 2021 , non-GAAP gross margin was 61.4%, compared with 58.5% for the fiscal year endingJanuary 31, 2020 . - Non-GAAP net income for the fourth quarter of fiscal 2021 was
$5.1 million , or earnings per diluted ordinary share of$0.14 . This compares with non-GAAP net income of$4.9 million , or earnings per diluted ordinary share of$0.14 , for the same period in fiscal 2020. Non-GAAP net income for the fiscal year endingJanuary 31, 2021 was$11.9 million , or earnings per diluted ordinary share of$0.33 . This compares with non-GAAP net income of$23.7 million , or earnings per diluted ordinary share of$0.69 , for the fiscal year endingJanuary 31, 2020 .
Based on information available as of today, Ambarella is offering the following guidance for the first quarter of fiscal year 2022, ending
- Revenue is expected to be between
$67.0 million and$70.0 million - Gross margin on a non-GAAP basis is expected to be between 59.5% and 61.5%
- Non-GAAP operating expenses are expected to be between
$34.0 million and$36.0 million
Ambarella reports gross margin, net income (loss) and earnings (losses) per share in accordance with GAAP and, additionally, on a non-GAAP basis. Non-GAAP financial information excludes the impact of stock-based compensation adjusted for the associated tax impact, which includes the effect of any benefits or shortfalls recognized. A reconciliation of the GAAP to non-GAAP gross margin, net income (loss) and earnings (losses) per share for the periods presented, as well as a description of the items excluded from the non-GAAP calculations, is included in the financial statements portion of this press release.
Total cash, cash equivalents and marketable securities on hand at the end of the fourth quarter of fiscal 2021 was
“Demand for our AI vision silicon products accelerated in FY21 with more than 175 unique customers purchasing engineering parts and/or development systems, including more than 40 who reached production volumes. Cumulatively, we expect to have shipped more than 2 million computer vision SoCs by the end of Q1, with more than 300,000 CV SoCs shipped into the automotive market,” said Fermi Wang, President and CEO. “In FY22 we intend to continue to build on our AI vision momentum, driving CV to at least 25% of revenue, while maintaining a high level of execution in the face of the ongoing public health, geopolitical and supply-chain challenges.”
Stock Repurchase
In the fourth quarter of fiscal year 2021, the company did not repurchase shares. During fiscal year 2021, the company repurchased 25,719 shares for total consideration of approximately
Quarterly Conference Call
Ambarella plans to hold a conference call at
About Ambarella
Ambarella’s products are used in a wide variety of human and computer vision applications, including video security, advanced driver assistance systems (ADAS), electronic mirror, drive recorder, driver/cabin monitoring, autonomous driving, and robotic applications. Ambarella’s low-power System- on-Chips (SoCs) offer high-resolution video compression, advanced image processing, and powerful deep neural network processing to enable intelligent cameras to extract valuable data from high-resolution video streams. For more information, please visit www.ambarella.com.
"Safe harbor" statement under the Private Securities Litigation Reform Act of 1995
This press release contains forward-looking statements that are not historical facts and often can be identified by terms such as “outlook,” “projected,” “intends,” “will,” “estimates,” “anticipates,” “expects,” “believes,” “could,” or similar expressions, including the guidance for the first quarter of fiscal year 2022 ending
The risks and uncertainties referred to above include, but are not limited to, risks associated with revenue being generated from new customers or design wins, neither of which is assured; the commercial success of our customers’ products; risks associated with the COVID-19 virus and its impact on the global economy or any of our operations or the operations of our customers; risks associated with the semiconductor supply chain, including the ability of our suppliers to meet our demand; our growth strategy; global economic and political conditions, including possible trade tariffs, trade restrictions and export controls that impact our products, our customers or our customers’ products; our ability to anticipate future market demands and future needs of our customers; our ability to introduce new and enhanced solutions; our ability to develop, and to generate revenue from, new advanced technologies, such as computer vision functionality; our ability to retain and expand customer relationships and to achieve design wins; the expansion of our current markets and our ability to successfully enter new markets, such as the OEM automotive and robotics markets; anticipated trends and challenges, including competition, in the markets in which we operate; our ability to effectively manage growth; our ability to retain key employees; and the potential for intellectual property disputes or other litigation.
Further information on these and other factors that could affect our financial results is included in the company’s Annual Report on Form 10-K for our 2020 fiscal year, which is on file with the
Ambarella assumes no obligation and does not intend to update the forward-looking statements made in this press release, except as required by law.
Non-GAAP Financial Measures
The company has provided in this release non-GAAP financial information, including non-GAAP gross margin, net income, and earnings per share, as a supplement to the consolidated financial statements, which are prepared in accordance with generally accepted accounting principles ("GAAP"). Management uses these non-GAAP financial measures internally in analyzing the company’s financial results to assess operational performance and liquidity. The company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing its performance and when planning, forecasting and analyzing future periods. Further, the company believes these non-GAAP financial measures are useful to investors because they allow for greater transparency with respect to key financial metrics that the company uses in making operating decisions and because the company believes that investors and analysts use them to help assess the health of its business and for comparison to other companies. Non-GAAP results are presented for supplemental informational purposes only for understanding the company’s operating results. The non-GAAP information should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from non-GAAP measures used by other companies.
With respect to its financial results for the fourth quarter of fiscal year 2021, the company has provided below reconciliations of its non-GAAP financial measures to its most directly comparable GAAP financial measures. With respect to the company’s expectations for the first quarter of fiscal year 2022, a reconciliation of non-GAAP gross margin and non-GAAP operating expenses guidance to the closest corresponding GAAP measure is not available without unreasonable efforts on a forward-looking basis due to the high variability and low visibility with respect to the charges excluded from these non-GAAP measures. We expect the variability of the above charges to have a significant, and potentially unpredictable, impact on our future GAAP financial results.
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
(in thousands, except share and per share data) | |||||||||||||||
(unaudited) | |||||||||||||||
Three Months Ended |
Twelve Months Ended |
||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||
Revenue | $ | 62,142 | $ | 57,212 | $ | 222,990 | $ | 228,732 | |||||||
Cost of revenue | 24,339 | 23,896 | 87,417 | 96,023 | |||||||||||
Gross profit | 37,803 | 33,316 | 135,573 | 132,709 | |||||||||||
Operating expenses: | |||||||||||||||
Research and development | 37,184 | 33,807 | 140,759 | 129,724 | |||||||||||
Selling, general and administrative | 14,632 | 13,341 | 55,980 | 52,634 | |||||||||||
Total operating expenses | 51,816 | 47,148 | 196,739 | 182,358 | |||||||||||
Loss from operations | (14,013 | ) | (13,832 | ) | (61,166 | ) | (49,649 | ) | |||||||
Other income, net | 632 | 1,713 | 3,863 | 8,021 | |||||||||||
Loss before income taxes | (13,381 | ) | (12,119 | ) | (57,303 | ) | (41,628 | ) | |||||||
Provision (benefit) for income taxes | (892 | ) | 862 | 2,483 | 3,164 | ||||||||||
Net loss | $ | (12,489 | ) | $ | (12,981 | ) | $ | (59,786 | ) | $ | (44,792 | ) | |||
Net loss per share attributable to ordinary shareholders: | |||||||||||||||
Basic | $ | (0.35 | ) | $ | (0.39 | ) | $ | (1.72 | ) | $ | (1.35 | ) | |||
Diluted | $ | (0.35 | ) | $ | (0.39 | ) | $ | (1.72 | ) | $ | (1.35 | ) | |||
Weighted-average shares used to compute net loss per share | |||||||||||||||
attributable to ordinary shareholders: | |||||||||||||||
Basic | 35,338,351 | 33,677,059 | 34,679,717 | 33,083,562 | |||||||||||
Diluted | 35,338,351 | 33,677,059 | 34,679,717 | 33,083,562 |
The following table presents details of stock-based compensation expense included in each functional line item in the consolidated statements of operations above:
Three Months Ended |
Twelve Months Ended |
||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||
(unaudited, in thousands) | |||||||||||||||
Stock-based compensation: | |||||||||||||||
Cost of revenue | $ | 347 | $ | 262 | $ | 1,328 | $ | 1,184 | |||||||
Research and development | 11,501 | 10,536 | 42,903 | 41,842 | |||||||||||
Selling, general and administrative | 6,879 | 6,105 | 25,903 | 23,845 | |||||||||||
Total stock-based compensation | $ | 18,727 | $ | 16,903 | $ | 70,134 | $ | 66,871 |
The difference between GAAP and non-GAAP gross margin was 0.6% and 0.5%, or
RECONCILIATION OF GAAP TO NON-GAAP DILUTED EARNINGS (LOSSES) PER SHARE | |||||||||||||||
(in thousands, except share and per share data) | |||||||||||||||
Three Months Ended |
Twelve Months Ended |
||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||
(unaudited) | |||||||||||||||
GAAP net loss | $ | (12,489 | ) | $ | (12,981 | ) | $ | (59,786 | ) | $ | (44,792 | ) | |||
Non-GAAP adjustments: | |||||||||||||||
Stock-based compensation expense | 18,727 | 16,903 | 70,134 | 66,871 | |||||||||||
Income tax effect | (1,092 | ) | 942 | 1,513 | 1,576 | ||||||||||
Non-GAAP net income | $ | 5,146 | $ | 4,864 | $ | 11,861 | $ | 23,655 | |||||||
GAAP - diluted weighted average shares | 35,338,351 | 33,677,059 | 34,679,717 | 33,083,562 | |||||||||||
Non-GAAP - diluted weighted average shares | 37,569,396 | 35,094,270 | 35,994,296 | 34,313,148 | |||||||||||
GAAP - diluted net loss per share | $ | (0.35 | ) | $ | (0.39 | ) | $ | (1.72 | ) | $ | (1.35 | ) | |||
Non-GAAP adjustments: | |||||||||||||||
Stock-based compensation expense | 0.53 | 0.50 | 2.02 | 2.02 | |||||||||||
Income tax effect | (0.03 | ) | 0.03 | 0.04 | 0.05 | ||||||||||
Effect of Non-GAAP - diluted weighted average shares | (0.01 | ) | — | (0.01 | ) | (0.03 | ) | ||||||||
Non-GAAP - diluted net income per share | $ | 0.14 | $ | 0.14 | $ | 0.33 | $ | 0.69 | |||||||
CONSOLIDATED BALANCE SHEETS | |||||||
(unaudited, in thousands) | |||||||
2021 | 2020 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 241,274 | $ | 231,403 | |||
Marketable debt securities | 199,434 | 173,345 | |||||
Accounts receivable, net | 24,974 | 18,487 | |||||
Inventories | 26,081 | 22,971 | |||||
Restricted cash | 10 | 9 | |||||
Prepaid expenses and other current assets | 5,531 | 4,975 | |||||
Total current assets | 497,304 | 451,190 | |||||
Property and equipment, net | 5,530 | 5,614 | |||||
Deferred tax assets, non-current | 10,914 | 10,400 | |||||
Intangible assets, net | 18,703 | 17,826 | |||||
Operating lease right-of-use assets, net | 9,659 | 9,935 | |||||
26,601 | 26,601 | ||||||
Other non-current assets | 4,569 | 5,710 | |||||
Total assets | $ | 573,280 | $ | 527,276 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | 21,124 | 14,910 | |||||
Accrued and other current liabilities | 48,126 | 34,970 | |||||
Operating lease liabilities, current | 2,911 | 2,181 | |||||
Income taxes payable | 962 | 691 | |||||
Deferred revenue, current | 844 | 701 | |||||
Total current liabilities | 73,967 | 53,453 | |||||
Operating lease liabilities, non-current | 7,525 | 7,975 | |||||
Other long-term liabilities | 16,812 | 17,776 | |||||
Total liabilities | 98,304 | 79,204 | |||||
Shareholders' equity: | |||||||
Preference shares | — | — | |||||
Ordinary shares | 16 | 15 | |||||
Additional paid-in capital | 347,458 | 261,220 | |||||
Accumulated other comprehensive income | 1,219 | 768 | |||||
Retained earnings | 126,283 | 186,069 | |||||
Total shareholders’ equity | 474,976 | 448,072 | |||||
Total liabilities and shareholders' equity | $ | 573,280 | $ | 527,276 | |||
Contact:
408.636.2310
lgerhardy@ambarella.com