SANTA CLARA - Shares of Ambarella, Inc. (NASDAQ: NASDAQ:AMBA) jumped 16% after the company reported a smaller-than-expected loss for the first quarter of fiscal year 2025 and provided an optimistic revenue outlook for the second quarter.
The edge AI semiconductor company's results surpassed Wall Street estimates, signaling early signs of growth in AI inference applications.
For the quarter ended April 30, 2024, Ambarella reported an adjusted net loss of $10.5 million, or -$0.26 per diluted share, which was $0.05 better than the analyst consensus of -$0.31.
Revenue fell to $54.5 million, a 12% decrease from $62.1 million in the first quarter of the previous fiscal year, yet still managed to exceed the consensus estimate of $53.98 million. The company's gross margin on an adjusted basis improved slightly to 63.4%, up from 63.1% in the same quarter last year.
Ambarella's CEO, Fermi Wang, highlighted the company's progress, stating, "We are seeing early signs for the proliferation of AI inferencing at the network edge, and the breadth of our customer engagements is consistent with this, which should create a foundation of multiple applications for revenue growth."
Wang's optimism is reflected in the company's guidance for the second quarter of fiscal year 2025, with revenue projected to be between $60.0 million and $64.0 million, above the analyst consensus of $59.41 million.
The company's focus on AI inference at the network edge and its expansion into the electric vehicle (EV) market, with a new win at an EV passenger vehicle OEM, are seen as key drivers for its anticipated revenue growth in fiscal 2025.
Ambarella's financial health remains solid, with total cash, cash equivalents, and marketable debt securities of $203.3 million at the end of the first quarter, although this is a decrease from $219.9 million at the end of the prior quarter and $227.4 million from the same quarter a year ago.
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