Ambarella Reports Net Loss of $31.2 Million in Q2 2023
Q2 Revenue Falls to $62.1 Million for Ambarella, Inc.
Ambarella, Inc.(AMBA), a leading semiconductor and video processing solutions provider, has announced its financial results for the second quarter of 2023. The company reported a net loss of $31.2 million for the quarter, a decline from the net loss of $23.7 million in the same period last year. Additionally, Ambarella's revenue for the quarter amounted to $62.1 million, reflecting a decrease compared to the $80.9 million reported in Q2 2022.
Challenging Quarter for Ambarella
The second quarter of 2023 proved to be a challenging period for Ambarella, as the company reported a net loss of $31.2 million. This net loss was higher compared to the same quarter in the previous year when Ambarella recorded a net loss of $23.7 million. The increase in net loss can be attributed to various factors, including increased operating expenses and the impact of stock-based compensation.
Decline in Revenue
Ambarella's revenue for the second quarter of 2023 stood at $62.1 million, a significant decrease from the $80.9 million reported in the second quarter of 2022. This decline in revenue reflects ongoing challenges in the semiconductor industry and a slowdown in demand for Ambarella's products. The company's cost of revenue also decreased from $29.8 million in Q2 2022 to $23.7 million in Q2 2023, resulting in a gross profit of $38.5 million.
Operating Expenses and Loss from Operations
Ambarella's operating expenses for the quarter amounted to $73.8 million, which included research and development costs of $54.9 million and selling, general, and administrative expenses of $18.9 million. These operating expenses contributed to a loss from operations of $35.3 million, which was a significant increase from the loss of $20.2 million reported in the same quarter last year.
Impact of Stock-Based Compensation and Acquisition Costs
The company incurred stock-based compensation expenses of $28.1 million in the second quarter of 2023, compared to $26.9 million in the same period in 2022. Additionally, Ambarella reported acquisition-related costs of $1.3 million for Q2 2023, slightly down from $1.3 million in Q2 2022. These expenses contributed to the difference between GAAP and non-GAAP gross margin.
Reconciliation of GAAP to Non-GAAP Earnings per Share
Ambarella provided a reconciliation of GAAP net loss to non-GAAP net income, which excludes stock-based compensation expenses, acquisition-related costs, and the income tax effect. On a non-GAAP basis, the company reported a net loss of $6.0 million for the quarter, compared to a non-GAAP net income of $7.6 million in the same quarter of the previous year.
Balance Sheet Highlights
As of July 31, 2023, Ambarella's total assets amounted to $696.2 million, with current assets of $286.6 million. The company maintained a strong balance sheet with $122.5 million in cash and cash equivalents and $94.0 million in marketable debt securities. Total shareholders' equity stood at $602.3 million.
Future Outlook
Ambarella continues to face headwinds in a competitive semiconductor market, with uncertainties impacting its financial performance. The company remains focused on innovation and cost management to address these challenges and drive long-term growth.
Ambarella reported a challenging second quarter with a net loss of $31.2 million and a decline in revenue to $62.1 million. The company is actively managing its expenses and working to adapt to the evolving semiconductor landscape. Investors will be closely watching Ambarella's strategic initiatives as it navigates these challenges in the coming quarters.
