Home Stock Ambarella spikes 20% after announcing third-quarter financial results for 2022

Ambarella spikes 20% after announcing third-quarter financial results for 2022


Ambarella, Inc. (NASDAQ: AMBAis an artificial intelligence-based silicon firm that recently went up 20% and announced its third-quarter financial results for 2022. 

The company reported revenue of $92.2 million in the third quarter of 2022, representing a 64% increase from the $56.1 million it reported in the same quarter of 2021. 

Business operation highlights 

The company completed the Oculii Corporation acquisition on November 5, 2021. Operations of Oculii were incorporated under the Ambarella brand on that same day. Based on the information that has been made public, Ambarella Inc has also guided for the last quarter of 2022. 

The company expects to bring in revenue of between roughly $88 million and $91 million. Non-GAAP gross margins are expected to be around the range of 63% and 64%. As far as operating expenses are concerned, the company predicts it’ll be around $39 million to $41 million. 

Ambarella Inc reports its earnings, net income, and gross margin per share according to the GAAP principles. Non-GAAP financial data doesn’t have acquisition-based stock and stock-related compensation impacts. 

What did top management say?

Ambarella’s Chief Executive Officer and President, Femi Wang, said:

Our transformation into a deep learning AIoT processing company took another leap forward with the acquisition of Oculii, a provider of advanced algorithms for high definition imaging radars.

He claimed that the radar perception market space is promising. However, what he said was most important was that the deal would feed into their long-term strategy to offer more comprehensive and more innovative AIoT processor solutions to their customers. Mr. Wang said:

I’m pleased with our progress in Q3, with positive operating leverage driving non-GAAP operating margins into the 20% range.

He said that their operational execution still remains both stable and robust, even though supply dynamics still remain hard to predict, especially as shortages of the components of other similar companies have become a more gating and significant factor to both their results and outlook. 

The products under the Ambarella brand are used in a wide array of computer and human vision applications.

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