Ambarella share price is down 8%, here is why

Ambarella (NASDAQ: AMBA) is down 8% after the company reported its Q4 2022 earnings and revenue report.

Ambarella top earnings estimate

Revenue in Q4 2022 was $90.2 million, a YoY increase of 45% and beating estimates of $90.16 marginally. The company reported $0.45 per share earnings, beating analyst expectations of $0.42 by $0.03. non-GAAP net income was $17.9 million or $0.45 per share compared to $5.1 million or $0.14 per share a year ago. GAAP net loss in fiscal Q4 2022 was $9.2 million or $0.25 per share compared to $12.5 million or $0.35 per share a year ago. CEO Fermi Wang said:

The company reported revenue of $331.9 million for the full year, a 49% increase from $223 million reported a year ago. GAAP net loss for FY2022 was $26.4 million or $0.72 per diluted share compared to GAAP net loss of $59.8 million or $1.72 per diluted share for the year ended January 31, 2021. Non-GAAP net income for FY 2022 was $62.2 million or $1.61 per diluted share compared to $11.9 million or $0.33 per diluted common share.

Ambarella expects revenue of $88.5-$91.5 million in Q1 2023

Wang commented:

For fiscal 2023 the company expects revenue of between $88.5 million and $91.5 million compared to a consensus of $90.88. non-GAAP gross margin is expected to range from 63% to 64%. In addition, Ambarella anticipates non-GAAP operating expenses of around $41 million to $43 million. Wang concluded: