AMBA - Earnings call transcript Q1 2025

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Operator

Thank you for standing by, and welcome to the Ambarella First Quarter Fiscal Year 2025 Earnings Call. [Operator Instructions] As a reminder, today's program is being recorded. And now I'd like to introduce your host for today's program, Mr. Louis Gerhardy, Vice President, Corporate Development and Investor Relations. Please go ahead, sir.

Louis Gerhardy

good and Jonathan, you afternoon. Thank joining Thank XXXX quarter year first results you conference for financial call. fiscal our

On the call President with me today is and Young, and Dr. John CFO. CEO; Fermi Wang,

as you our first forward-looking fiscal of is these uncertainties forward-looking today's the These The today The could risks quarter differ regarding questions responses described primary in documents the assumptions for any on to affect to to We're year purpose should of uncertainties your information provide results results the be could that these with from obligation discussion or statements. with call and XXXX. information as contain will on potential These statements. for financial the fully available based financial regarding factors prospects, risks, demand results among financial our subject projected to assumptions and more these Should prove risks, SEC. currently and our results, and our materially well our statements other other we to things. actual statements file under growth or our market incorrect, solutions, are no assumptions. risk and materialize are update information uncertainties

outlook, the or Then and as first be and and for without provide as consent. be cannot are prior the Investor reproduced transcripts, press XXXX business will transcribed fiscal that. questions results, a after available review SEC be financial well materials of our John Ambarella's quarter. and property call Fermi? historical page Relations your for website now Fermi, posted our of we'll filings our our will results, call results update written found content to a Access today's today's quarter of the on replay release, to on The website.

Fermi Wang

Louis, and today. joining you you, call for good Thank our all Thank afternoon.

the above guidance increasing sequentially. revenue X% X% range, were our midpoint of with results QX Our

IoT revenue. sequentially AI revenue both and our total products As X/X about increased of and the expected, Auto were

recovering quarter. the a is inventory and midst our into in correction from discussed, are customers from As the second a favorable the of carry previously this to impact cyclical expected

We by secular tailwinds continue enable AI portfolio. the grow our 'XX XXXX. is of our inference and cyclical to expected revenue cyclical in secular the AI to more year-over-year, growth XX% driven expect our the and forces fiscal The revenue in to grow than to combination both fiscal

at AI a for user infrastructure deployment out globally, significant to in advantage The Zooming ultimate the end well more age participate we many inference market. of being training an for AI both the enables capacity so AI inference to the added age minute practically deployment at breakthroughs. take the where AI of network different of

focus age increased a on AI inferencing areas, take we proliferating we advantage believe to see of in networks this. we of are As multiple positioned well at AI and

enterprise execute develop but may across are class we in these early win extremely workload the our are to efficient AI also the for only AI out of that change, disparate our flexible includes first great In market already midst not other we IoT wins secured wins age of reporting in in cameras, for range even how very of demonstrating AI domain fact, enough family passenger are is vehicle customer added it multiple engagement a for We In opportunity process. QX, AI additional us. financial commercial the In applications. meeting wide for play our of X-nanometer controllers. challenge CX this to for all products technology deployment stage wins and and and CVX-AD our example, AI another inferencing the central CVX-AD vehicle our

the products networks new planning, stitching, auto fusion, for signal with framing, matting, in mass such as production our and already processing. tracking, classification, We AI detection editing CNA video-intensive network are imaging

our into I integrated describe technology SoC AI of now engagements of would generation AI us. support variety customer the like networks CVX-AD CVX out can play for it and generative a can that applications. for of series some how third indication can to transformer our Now offer

As expect we family made domain be AI into you driver. of investment major family our CVX-AD CVX-AD controllers, and the significant automotive revenue a have know, to we

our the we the family pleased first wins which passenger vehicle family So ongoing are to wins in the our announce in commercial CVX-AD XX market, market. complements with vehicle CVX-AD

electrical This several China. during CVX-AD AI Show, is company collaboration we will reached This with in use controllers vehicle for April, a development important the Auto domain an in passenger in regards. us vehicle Beijing strategic battery models. In agreement a our company new

First, of by X X XXXX, the China. of new EV considered is in OEM this number companies top calendar major EV in deliver the

While most last the deliveries globalization were the for of impressive company year, in an has of delivers business. -- OEM plan the China its

with their Chinese into technology are and Second, domain OEMs and our automotive which adopting next-generation strategy X+. particular, in aggressively safety technology, vehicles, next-generation Level autonomy to with intersect the successfully aligns

improve adopted OEMs low to China the have unique the many For to framework software power. capability our processors, in And high its tasks BEV example, AI stack. high-performance XD this leverage the ability autonomous degree can inference aggressively for CVX-AD framework AI process transformers a driving accuracy including at former in in perception to

family CVX-AD portfolio our can mid- the and low, the the with world's the also Third, collaboration another largest a win [indiscernible] the with CVX-AD major vehicles. of is efficiency vehicle added machinery of and and one the announcement engineering joint intend reuse in of one OEM driving is the family for highly on automotive strategic manufacturers heavy-duty on market we a software year April, the as production with collaboration and promotion high-performance higher calendar with of Ambarella in [indiscernible] scalability factor providing XXXX. integrated commercial Corporation. commercial family In achieving model The collaborate will of to goal to next-generation on at automated solutions leverage advanced of of [indiscernible] development [indiscernible] domain controllers the start least by special develop its CVX-AD the automated driving market. purpose solution global Ambarella's vehicles. AI and to commercial vehicles company's

and their company's the Tier Auto is promote expand X-Cube X+ CVXX and product new levels areas, the already Show plan to much powered by explore Neusoft's Neusoft driver driving including At development deployed been to in camera and The and -- autonomous with autonomy jointly Level intelligent vision a Beijing X on in existing X.X and Level Ambarella's full-phase strategic and announced relationship monitoring. automotive SoC AI-based AI technology by reach third-generation OEMs. target X to Ambarella. April, market has produced partnership

to and for monitoring announce general that the pleased cars, a for for requirement The select Generation driver our leading of software provider X drowsiness Europe. meets vehicles. all Commission's are regulation system We across for Guardian its vans, CVXX machine, buses in safety European aftermarket system new trucks commercial the detection, the own

April, NX VR Security Exhibition, SoCs. ISC and in CVXX demonstrated on at running And we the language successfully model, AI our the latest West generating region technology

multi-model based the AI-based to need and using that recording to includes near opens detect tax demonstration cameras enterprise object. results by search specifically Our This systems. without new CRMs for primate video capability for the objects AI capability defined provide training up search of range for whole instantaneous and a

networks. needed Our third-generation run to efficiently of includes technology AI classes new support specific influence these

technologies after -- cost in stores, AI smart highly run this IQ AI power ISC SoC, very run provides West, X-nanometer cameras VRMs This the CVXX required which to the performance and control and for the city as robotic enhancement. our AI is latest enterprise capability we as During AI-based consumer demonstrated constraint to also AI-based cutting-edge the new announced sold retail devices. access sold efficiently used after well and

wholly the pixel processing, owned At Polly, Studio in for leading Enterprise of angle X-nanometer framing participants. Connect influences EXXX. HP solutions unit launched its mega a provider single conference with of This AI system the global center collaboration [indiscernible] cameras X March, choosing for and table a CVX workplace optimal utilizes

remain the for also And AI SoCs our in Korea, activity high. career

new introduced security on AI and the models camera our introduced and based and due base camera introduced on CVXX With sensor SoCs CVX leading AI based CVXX. AI model maker, CVXX ideas Cpro Hahwa

significantly In and are IoT camera improve to April in functions. sensor other pleased X-nanometer automate another inference for capture. AI quality InstaXXX to image XX both XXX-degree with processor steel we user being to interface certain its action see market, consumer utilized introduced X-K our a the cameras in CVX

I'm excited engagement further quarter, mentioned profitability goal our product CV the stands win revenue drive and in and utmost achieve build passenger direction, to a in can most the applications shareholders. right on R&D I highlighted strategic what and before the this for will first positive priorities. car vehicle our opportunity of are to for leverage the last of the continue drive QX restore scenically our we customer step family growth our commercialization the and by out. in us, expect of revenue technology growth broad breadth multiple importance expanding by to to conclusion, In and and monetization a ahead. passenger CVX-AD is PON -- the with years earnings we result The us and about foundation will represented

will more John that, QX the now and With results outlook detail. discuss in

John Young

of GAAP XXXX July also results financial I year outlook first review quarter you will results. press XX, and Thank XX, of fiscal the ending April today's I'll for highlights now detailed non-GAAP the that to for XXXX refer second non-GAAP release fiscal of Fermi. for I'll discussing ending reconciliation you, quarter a be XXXX. our year financial provide XXXX. ask a to

for have the we reporting, of expense along eliminated compensation adjusted impact non-GAAP taxes. acquisition-related costs with For stock-based

$X.X For X% X.X%. high $X.X X% the our and a down the million, of spending the net the the quarters. for on fiscal $XX remain million. me, by than $X.XX operating Non than prior expense QX loss guidance above $XX.X $XXX,XXX. $XX and from gross guidance Non-GAAP QX development million, was above milestones. XX.X%, prior million up margin million lower We income higher was prior QX, product of midpoint guidance $XX.X loss of our prior revenue of We or year-over-year. by midpoint per million Non-GAAP was to management quarter QX internal and track to net $XX.X million was prior quarter non-GAAP the and range, approximately -- million, $XXX,XXX excuse our timing continued of range range of XX% -- a diluted $XXX interest non-GAAP expense tax end our driven between reported was other approximately provision share. fiscal

decreased days securities million cash from the marketable and year XXX X% XX% and -- the days days I'll cash while partner ODM and from declined companies XX Inventory capital sales days. in $XX ago. were XX Now XX% million QX. first ships from a in -- quarter. of prior to sheet turn QX customers quarter assets of $XXX.X the the inventory decreased outflow for to in Operating balance expenditures $X.X for XXX end dollars a or intangible declined million. Taiwan, was in prior dollars more from that cash sequentially increased outstanding to days, days of came to prior million. quarter. to for $XX.X representing for and quarter manufactures revenue and Microelectronics, Fiscal flow. Receivables logistics million and from WT at XX% who customers tangible Chicony the fulfillment had We Asia, our multiple in the quarter. XX% ODM revenue for our of was revenue multiple X of

outlook I'll continuing the by now to confident products. led year inference remain of recover correction, for the fiscal the our from second our is XXXX. AI quarter discuss cyclical business We

estimate we $XX million. the be range For will revenue million of to fiscal QX, $XX in our total

growth We in both expect and sequential Auto. IoT

XX.X% to be to gross expect in the We non-GAAP XX%. of range margin fiscal QX

We to head expect $XX.X expense, QX, $XX.X quarter to including to non-GAAP range million, our compared first the be be project. of non-GAAP to approximately to X-nanometer and $XXX,XXX be $X.X to our be the the million driven increased increase SoC interest approximately with million approximately tax million shares. count We engineering-related share in count in and OpEx by XX.X income estimate our diluted expense net second

one AI and be Thank Conference details. participating Technology Virtual America's more New We San you of of Francisco; Please June these Wednesday, in Bank of our York X Mizuho's in on hope on Age to Conference joining for us at on Rosenblat will call June contact today. events. you City Ambarella Conference see XX. Global in Technology for June XX

that, with will questions. the call I turn over the And to operator for

Operator

question first the from our Christopher of from And comes Susquehanna. Instructions] line today Rolland [Operator for

Christopher Rolland

Can hear you me?

Fermi Wang

Yes.

John Young

Yes.

Christopher Rolland

call. VLM brought You on the up

should about this little example, what wanted we Is overall? application. , Does Just How increase know more a your you're bit about to in that? TAM additive doing for to that think LLM? that

Fermi Wang

Right.

language or our start LLM model, model identify to we which demoing potential customers. So search things, with start you And talking continue we that tax -- to we large fact, vision demo that And lowest different demo in vision about have or setup all model we can token solution a for then that for with at this CES and space. we to our potential our and language give you, objects watch we is other can live live customers to describe year. a use the application different respond enterprise how to that the used video really -- in to using welcome for in our customers current

security not can can to definitely that enterprise both brand-new to on for side, us the do and think So And identified a this those customer, of really product using near monitor objects. we for this also current different expect search different in with interested a that's that you this control we CVXX And and give who by showed trending large a really without NX you we're on future. language use replace and the morning, use market, a the the is model as with projects customers being early packs customer, is in because of really model, as they camera people can have And you cameras breakthrough imagine use product. that our engaging a VRMs can objects a the center. to our but kick enterprise well for will the and application that and market that off particularly extremely some I with

Christopher Rolland

some things. the late your you Chinese on actually kind sounds can progress of how software of about whether you're Auto And Perhaps could going and here like the well? there's engagements talk and of you Great. then, think be that side as pipeline, making EV see expanding be to you more the of seeing on whether come to these implementing opportunity, here any

Fermi Wang

Right.

win. been network there first very low a over I a be that our also our we first address using transform So the and consumption high-end our that -- more believe definitely that the flow end our competitors to address than really is believe also have And can I of will from design can bond to power we win have come. much and we advanced all, we're that sense run architecture low give scalable significant in about to strengths, is which sure advantages the vehicles really efficiently also design that the lower really most power talking in

reason market, So out envelope won. design EV product just other solution OEM X we're our we of that is the is also, adopting help But pushing on. Level . important one us by think aggressive and building I potential it's Chinese are really to that point like will for that technology for EV really wins the them automakers

Operator

line Cowen. of from next TD our And comes question the Ethan from Potasnick

Unknown Analyst

point wins This results. the vehicle is tipping the to Ethan great Maybe another to and likely of there regards for maybe one Matt -- to Potasnick passenger Congrats dynamics. guys kind those get on ask, if is other at on Ramsay. win guys discuss the with could are go waiting discussed OEMs to tonight, I other there first? you CVX wanted see to OEMs? you Are

Fermi Wang

Right.

take really into to the our our So all, first of meaningful win aggressive solution and considering 'XX. we who and the I that of date early And us also MP design provide companies production a also therefore, target mature us. current And value are CVX-AD at 'XX, to that lifetime help this material very solution. to of is for think is will end platform other

be wins to the not in going So secure but help only pipeline, near to us design our help design to win major a that other for future. also I this definitely believe is

Unknown Analyst

as of guys the AI grow Understood. a you inference follow-up, XX%. opportunity of around information kind gave my Okay. And revenue good to lot with expected

the is you I road How made that? sort this stages be of think driving I called think insight impact What CES, the playing how opportunity guys some was platform you was announcements Any think NX applications. -- additional feedback? kind some the the was of guys said And helpful. is of in would the -- and I enterprise or out? early I early fiscal what's 'XX progress, you wondering these out it Cooper SoC of any it progressing? at map development how and

Fermi Wang

Right.

current our ICS to We maybe then AI third-generation demo running with an And VLM, will the our AI into we So with just and demo NX refresh leverage strategy. CVX. existing Lava intend CES, deal you and inference on definitely like engine NX both and LLM. AI said, at

has strategy our become generation current very clear. So for

H on H current to as -- advantage going we're on can silicon. as of servers. that really for each camera application, focus we workload focus take Two, all, of well First we'll can the both our

market can as think Lava our continue model really as And models. we so use opportunity And markets that adjacent that that's AI we as as enterprise VLM revenues XXXX. well those in well some believe -- for to

not are to can demoing, interested in who our key only are and CVXX we're application. the customers NX sampling We

that's generation. first So our

think mentioned on can And we also, see, although didn't our AI you a preparation solution, X-nanometer as that you John that's we are node, for for yet. our can talk I next-generation plan investing process think that about Gen

work that. help significantly that side technology X-nanometer us development to on We road we our technology the are But our for will with map. believe trying on

Operator

from comes And line from our of next the Morgan Moore Stanley. question Joe

Joseph Moore

-- I opportunity. of in you In heard think terms can what of it could and there? if kind you the you right, capabilities an you offer many Can I car mentioned type China, as passenger of cameras per talk you how car about LX+ win describe

Fermi Wang

Yes.

X anywhere it's it's designed from it radar level have of automodriving. first XX CD X an levels of do is to LX+ models, highway it the to because to all, So And plus from -- XX cameras and to car, they configuration. different

Joseph Moore

then was you Great. this I a customer anticipated this weighted some had within funnel funnel? probability that probability -- that somebody was And you know have customer -- had

Fermi Wang

next with they Yes. think discussion, category in I in And final set category. one the now should probability of be the

Operator

And Cassidy line Securities. from comes our Kevin question of from Rosenblatt the next

Kevin Cassidy

win have with And Do the design line you'd staying you congratulations about And process time this on going be great hinted, and TSMC? Fermi, silicon ask will the you questions have for first to momentum. results when you the was technology. are X-nanometer Or more maybe, with I and Samsung? a maybe

Fermi Wang

Right.

we second XXXX. and with production X-nanometer, sent out and ready be get will year go X-nanometer this plan of into to tape to next So half

Kevin Cassidy

. just Joe's follow-up Okay. maybe And on Great. a question.

it's You cameras that mentioned plus Is the your that X XX radar. to design? radar in

Fermi Wang

about yet. We haven't talked that

Kevin Cassidy

All to right. going visibility, to you talk backlog Okay. I'll you're an go Maybe just backlog -- see fiscal your question year if easier -- growth in with about It you're XXXX. visibility? saying can your

Fermi Wang

Yes.

Our than getting backlog much before. better visibility

In times a that with that is us tells reminding reason that's And in Street that of consensus you revenue QX, feel million we lead year. are -- forecast to comfortable should that fact, we of clear our the middle and to weeks XX the visibility we our really QX the January. this $XXX have

QX clear So QX. for feel to comfortable why guidance. we continue and we That's booking see our with

However, add let one sentence. more me

think I are in level consensus is a million $XXX the that with comfortable believe seasonality there we QX. we

think consider. I is something should that So we

visibility just we seasonality like we continue QX, in QX, going that the see to there. While -- we should to the before the the have QX the of core, normal definitely But QX we're from growth. to trend see while believe seasonality

Operator

of the Bolton comes from & Company. Quinn from line Needham question And our next

Gary Mobley

pulse you can a This EV opportunities supply? size How those overall? and you us Quinn. passenger a wins then could all? current zooming you the give the do demand for see in at Chinese mentioned market commercial out you markets, bit, Maybe is Nick Duval just auto And on and on little

Fermi Wang

Right.

EV we first So play market, on they we the driving all, much autonomous play the of correlated. market, very but on don't are

same push on I We the happened envelope technology the EV driving trend on aggressively in Chinese side. auto think that is continue the EV what see automakers to side. the technology

advantage showing C-level building I think, that we're they require former to strength, almost that them China, of autonomous, believe push LX+ and can played is that. really that we all aggressive Chinese the of very network in for all the me are advanced we automakers very example, very that envelope. And take are all to like most RFQ our that BEV that's of we technology believe

EV Although still years, show AD from total an I term. near be continued a that that to have view, majority X+ market coming we of there, size. market the the X, we Level in that point system terms and expect growth will the slowness cars in market some of Level believe that But has think of

Unknown Analyst

a the in margins -- Okay. what's of you driving a on and were The bit bright quarter margins that? gross guide. the Could spot expand

John Young

Yes.

quarter. the had We mix. So contribution came essentially, forecast That's NRE we driver. had little higher in than projects customer bit it's main that for through the

Operator

from our line Tore And from next Svanberg comes Stifel. question the of

Jeremy Kwan

term? is design the Jeremy let like a quick calling of to me And ongoing the the over my for Tore. longer on want Maybe margins is XX win. see my gross NREs. NRE That's impact, XX margin over the something of Just CVX sustainable guess, the contribution add and that congrats I This growing question. to the first in on Is or project gross follow-up terms kind months. to next an

John Young

Okay.

be in ongoing -- it a near that will So project future. we the is yes, did

[ for margins. gross though, ] is XX model, long-term XX Our to ] [

see temporary long-term for a I this quarter, this temporary next as may thinking blip -- necessarily. if think But we've as modeling, think a I I potentially guided. new there wouldn't up norm about quarter be you're

Jeremy Kwan

weight win LX+ it us of terms you of ASPs can ballpark at vehicles many design new you And this $XX also, at the the and low of passenger give $XXX way the terms a vehicle in are end, terms of if Can likely how see how side? And design have I in even wide little fits incorporated. this range, pretty of car are models a higher to it. in of the there's many ASP can give I Got to more where a impacted terms like the the maybe guess us in understand kind in a this end. bit detail win,

Fermi Wang

Right.

all, of view a has want they OEM because they has Level move in believe, we as to a any currently, first talk But to X+ do Chinese X+ that the -- models huge Level I there. only other this all So to just OEM, model differentiation. like to this their portion of

I think the X+ into when we all Level So level have kind solution of we will they -- expect with production go this there. ship it car, customer some of a

in we anywhere talked ASP low-end to start $XXX. midpoint at $XXX-plus the customer. about addressing $XX is As the more our from we're in our will can past, -- to an high-end from we to of That's chip, disclose have go with -- range more it can we and the view, looking point we and $XXX

that terms true about I the with more work first think we if think but for we that we it's other really the significant car. think north size into to this components our In we it's the and can we can talked getting opportunity, win, achieve models of $XXX customers, -- of I design more million the -- continue of easily more

Jeremy Kwan

catch million -- first much many didn't for how I win. design Sorry, quite the how was

Fermi Wang

I say $XXX of million. north

Jeremy Kwan

$XXX to million. Low

John Young

North.

Operator

from from And our Paribas. BNP question line of the David next comes O'Connor

David O'Connor

secular That's XX%, that be is Maybe back, seem of Or than type there seasonality just question. seeing? you Q-on-Q. the that ballpark or the bit given muted kind that to in XX% a the just the first to my that going back about you're more looking Is down should thinking it like code seasonality? we that of QX, trends talked QX for be of recover

John Young

Yes.

us -- So million, you're about visibility should the the to of if at think reasonable I I that. think issue into give, Chris, point. have guidance say, $XXX any this relatively think or full thinking don't difficult consensus QX. year it's with for But definitely of out We I that's I

the I within you're think, reason. number percentages about talking the though, -- are

Fermi Wang

pattern, normal QX. We to And you to look if of I at of after similar we've back the cavity. the downturn, history, we COVID seasonality think have seasonality. now we're this -- a I think inventory the on but IoT at a And correction that that be with be haven't you if right is Majority is bit clinical guidance the seen will kind provided the I in side, probably little the -- before. look past -- think before will after the in it the auto done, the seen with side. But seasonality

David O'Connor

helpful. win it. Got with That's EV a CVX passenger just follow-on then vehicle. the maybe And Okay. on the

Just they can to those clarify, as agreements anything at moment? agreement. that? I it Did of have on And us mean, Conti to to this well with status the update is the just you Bosch stand separate the do where

Fermi Wang

make side. towards of that and ago, First of has guy progress target Chinese terms probably the I all, SOP talked And is 'XX. will is the strong chain. year our continue project This software year SoC a Conti time that accounting, or collaboration a continue with on we supply that to And first of moving kind Bosch. also, this design very in the nothing both do using say to really about Chinese MP we we to and have

And we're actively also, the make on that. on with RFQs Conti on We great continue this. progress bidding to

Bosch but also, we design collaboration, software have the don't do So them on some we development the with a of side, on European working wins. of have bidding the with RFQs

Operator

next Shannon question line the our Capital. from from And Craig-Hallum of comes Richard

Richard Shannon

driven. inference AI here any growing sense towards versus here this then And about on or give this year. is comments IoT of seems a probably general Is more would your a basic how like on sales much of this unit like And it sense versus weighted you us seems that get automotive? XX% little of kind AI touching a that? Maybe Maybe how much the year. math over ASP do 'XX, XX% it then using fiscal the decent of math

Fermi Wang

correct. I is math think your

Let color. me give you more

really CVX a of we -- the we going and $XX on think, this ASP all, talked us helped this and CVX is ASP we're around an we have -- that well talk ship production X that consider design I million units plus about growth. and as year, CVXX, first and revenue particularly that of as CVX -- our lot year get of wins jump to production about to getting into minus,

of side CV one So growth.

to that however, want enterprise side that ship. in -- continue we automotive, other CVXX to out getting to CV even well that's we with another The I production also -- believe growth is one. but also point IoT, And and but

we automotive. with Neusoft For well design a had just announced with A-R a design as example, wins the other with CVXX as and few a win -- on we

well continue probably I I both IoT to more. a there, is Auto So but IoT think and have think in growth semi

Richard Shannon

A in here Okay. nice geopolitics on and China. Perfect. going question topic the of into CVX-AD That's context the U.S. helpful, of a controller of with follow-up here China couple kind of Fermi. obviously, here, wins demand different then

any headwind if the a make wondering change there. Just of kind in that geopolitics might bit undercurrent well of of it to to a more little the there's continue do

a to been sense Just change there's if want or get any general there. real

Fermi Wang

there's No, change any the I meaningful in months. think X don't last

I think we the to to be watch geopolitical need situation issue an and deal with. continues that to

outside have sure on they business, market however, we need talk with especially that I think from we use about that for we silicon local China. to think really who -- want customer a are focusing use some they the make Chinese export the Chinese advantage also customers I But to components.

have hasn't So changed. that's of view that a kind we I think and balanced now right

to AI haven't any this regulation change any from new limitations. We regulation seen

Operator

WestPark from line comes Kevin next Instructions] Garrington Capital. question . Our [Operator the of from

Kevin Garrigan

opportunities giving Yes, automotive let towards And developing more are and to engine EVs in results. the or I OEMs automotive the on backtracking But focused are combustion my well? you of any EVs. thinking as vehicles that on you're driving echo the maybe combustion you seeing noted you know autonomous pushing opportunities? hybrid more side, engine market is originally from on me strong kind about Fermi, congrats

Fermi Wang

Absolutely. I is for don't all. exclusively think AD at EV

I think -- continue and see cars for -- we RFQs cars. commercial to for also hybrid engine

way also capabilities company. AD you exclusive, EV differentiate. won't possible than companies wins, that that adding differentiation to I can a but find shows first life, other EV one but like pure be trying happened design it And just to all that just So say the just that's is battery also the

that EV engines. including kind So combustion AD well as I of application think cars, both to this as go all

Kevin Garrigan

Okay. And previous grow at question, your Perfect. proliferating inferences revenue noted your this prepared AI lot makes remarks, Richard's sense. a in in XX% areas AI That then off multiple going year. of would you of and

of bunch large of the is or And in kind you not had thinking? inference opportunity design originally into pipeline as imagined? the as quickly off market as kind of of developing it an a AI were have you taking You wins as is quickly as

Fermi Wang

expected. we that that some is enterprise is on automotive. We other Well, I I for as one surprise But we much get as as think didn't growing thing fast the space. the side, do think IoT grow we expect IoT think IoT that as

the market heavily win. investing on We got CVX-AD we and have been first design

to I to in things us inference for can our think engine that work we in of there's automotive take on make advantage of a lot markets. sure to continue AI investment

Operator

question And our is of Stifel. Tore from the Svanberg next from a follow-up line

Jeremy Kwan

is This again. Jeremy

And us IoT. and split on the those provide you Did what splits auto question. housekeeping the between could of refresh for a just last you couple quarters? were if Just

Fermi Wang

a Is revenue about split question? between IoT. and talking that You're Auto

Jeremy Kwan

right. that's Yes,

Fermi Wang

Yes.

IoT, look And IoT IoT, think this the consumer is last year, growth if at I securities we at Auto and this portion And the if also, growing revenue look year. at enterprise IoT think expect I same IoT growth you and year, But X/X. IoT was and other to be side that of enterprise So and you roughly other to the continue if are roughly look year you inside last largest inside total X/X is size. faster.

Operator

today's program Fermi back Wang the program. the for remarks. to of This like does further Dr. any to hand question-and-answer I'd conclude session

Fermi Wang

looking Thank our you you you, to time. talk next conference to I'm everybody, Thank you. see in us and call today, forward joining for

John Young

you. Thank

Operator

for Thank This you, your in ladies program. participation does gentlemen, and today's conference. the conclude

now may Good You disconnect. day.

Ambarella (AMBA) 30 May 242025 Q1 Earnings call transcript