AMBA - Earnings call transcript Q2 2025

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Hello, and thank you for standing by. Welcome to Ambarella's Q2 Fiscal Year 2025 Conference Call. [Operator Instructions] I would now like to turn the call over to Louis Gerhardy, you may begin.

Louis Gerhardy

Thank you, Twanda. Good afternoon, and thank you for joining our second quarter fiscal year 2025 financial results conference call.

me Dr. with call the today is On quarter Fermi primary to purpose and CEO; our provide XXXX. Young, CFO. The and John second for of results with regarding Wang, fiscal information year President you the of today's call is responses and results, forward-looking among financial your questions prospects, other our solutions, market growth things. The statements the will our regarding discussion to today for projected financial contain and demand available These assumptions. information based statements currently and and on risks, to subject uncertainties are materialize, uncertainties differ or our Should forward-looking any or of our could risks to prove results statements. incorrect, materially should be these assumptions these actual from We're under to statements. these no obligation update we and These with our to quarter our uncertainties of potential results filings the risk fiscal as that second press can release, replay Investor a XXXX assumptions SEC risks, our today's documents Relations other found results, financial information call described on transcripts, be website. filed as page well the of and fully historical are SEC. Access affect could more results factors the on in content well website, call transcribed materials our cannot and prior the as reproduced without be as today's Ambarella's property our written are on consent. posted The of or

start We you and the available hope 'XX review the in one we'll see and want will participating Bank's John for we Summit. bus a and these ADAS Fermi? XX September August Annual Coast your results questions. I outlook, note that sixth West be to now quarter. AI at Deutsche ISI's be September the semiconductor financial Technology tour provide Global XX, we events. Fermi update for in be September will Conference, TMT business call, Evercore on Conference, X to and XXXX AV of Before Citi's in Bernstein's at then will will

Fermi Wang

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

We of IoT total [indiscernible] selling near auto. third XX, supported May represented our we quarter. The call revenue both in sequentially. estimate confidence a higher forecast, XX% high this additional provide versus of anticipated our percent fiscal double-digit expect now with XX% record quarter on average our end growth revenue earnings increasing the which the slightly, second year was will revenue fiscal last grew revenue about growth AI the to we fiscal growth insight revenue customer last IoT $XXX quarter consensus achieved guidance orders implies our with Auto high blended this which some XXXX about outlook. revenue. in sequential XXXX of in In growth our range, for year. I Our of the and million. price guidance current sequentially and year takes on revenue, the into mid- and time, gives influence in teens expressed of based At midpoint sequential XX% stronger

now the First, actual revenue our second analysts our the customers our reflect indicate have market half to of rebalancing most the in their Ambarella completed fiscal inventory of of is expected and 'XX demand. end of SoCs

currently Second, headwind us. economic environment is the overall a for

consumer is enterprise an is to global vehicle shakeout is this There the electrical and down have auto heard, you forecasted slightly IoT As OEM year. and production underway, mixed. be spending

products. have AI-powered [ So edge and ramps AI seeing we especially headwinds results is are where the been strong from for company-specific initial new and there it clear, importantly, including and our demand customers, rising higher-priced at the outlook. factors should revenue investing. Most influence be our driving IoT are for There powered certain offsetting ] automotive -- we solutions,

mean clearly I what would in like define our which Our we years I is [indiscernible] new to lead expect building growth new in the products, will waves revenue to products. confidence of ahead.

this and all new the are product most AI which ASPs. In [indiscernible], which include integrate CVX ongoing revenue the first influence above families, our to family, and CVX-AD third-generation continue the CVX, is is CVX ramp. products group, wave accelerator of New average and from the command

million expect IoT X automotive. easily We well to than a this design as dozen units exceed as shipped year more wins in across

CVX-AD expected the product family, followed revenue the applications also AI to expect is network to serve and which clip wins family advanced second from fiscal be more vision Our RFIs CVX applications, as and into new grouping. family and the autonomy we enter 'XX. one of model. The also by of IoT vehicle vision discussed. production and the end CVX to level ] commercial and such have the from incremental Tier both initial [ multiple higher We cover, from OEMs CVX auto is product previously we in and with on new computer RFQs revenue highly expected converting for for our The will lead year revenue language remain be at X LX+ focused which motor

new of And driving there. Other of to of we for products as from continue products growth, including develop, reporting. and timing momentum XXXX X-nanometer expected a for represent calendar fiscal ] the ] software these [indiscernible image information full XXXX XD We [ upcoming the primary incremental the expect growing contribution. Collectively, business are of positive the in IP. to radar are and first software their [ of [indiscernible] offering case provide and our year are more on source new year stack they majority the CVX our we products, for will year revenue perception these new family production revenue

customer to the new originates several While the revenue summarize in growth. I product years product waves most important we of in from ahead, representative now of new anticipating are today, activity CVX the quarter. would like

support [ in modular pinhole the cameras some Based [ offers automotive access including [indiscernible] [ market, ] driver [ we [ other cameras and the customer mirror ] system SUV for [indiscernible] new and ] In with review Cherry advanced low umbrella's CVXX is system introduced [ IoT forward mini-dong back facing sensor in market, drive resolution detecting automatic unit with [ learning our increasingly now while the based vehicles feature Lucid a passenger camera an [ of unit behavior ], venture including from SoC thumbsize This Honda AI Ambarella's CVXX. And market the multiple Japanese surround ], The OEMs vehicle manufacturers provide is also a and CVXX X-nanometer China passenger range camera Ambarella's X,X representative SoC based the each SoC. In a introduced available to and handheld [ are advanced CM-XX smart brand, joint with a on leverage The provider introduced August, ] vehicle. I second-generation cameras. cameras. leader, the on quarter, ] camera features, on driving lane performance camera During ] X-nanometer products. also we while of detection. In view when the real ] CVX XK faces. In automotive the truck. CNXX to engagements parked. blurring SoC, including the the its requiring on lens market [indiscernible] the fleet Japan, XK variance and have mobile as well SoCs. function production commercial analysis. Also behind solution CVX-based images feature advanced camera navigation market, option, of based including enterprise more or driver electronic of [ introduced CVXX camera privacy more our pickup smart AI for includes guard provides the models on and applications our UMP In iPro departure new This our drowsiness PXX AI- business. has based both security ] leader introduced [indiscernible] vehicle, CM-XX camera-based or CVXX vehicle a monitoring and collision our several camera quarter, [ on its Samsara of actual started ] SoC. ] guard is facing monitor joint IoT see features, vehicles during [indiscernible] to it BAIC [ as its package and leading will warning processing this [ CVXX the pleased a a front introduce [indiscernible] Rivian corner based parking, deep offer venture distraction and leverage assistance one high continue require to new analysis, introduced ] Ambarella camera company car gear

X.X For of [ introduced ] cellular Ambarella's camera. ounces introduced video, example, based just ] also include and three the photo. [indiscernible] introduced ] recently, Pratico [ has InSaXXX CVX its here. megapixel we [indiscernible] HX post XK camera XX [indiscernible] brand [ the with HXX camera SoC, wearable And on [indiscernible]

to continue past, for this [indiscernible] can presence announcement age. the at in we For the AI one and expand our influence ones see

insights classification, revenue AI our variety object of majority computer a for vast a applications and typically represent real-time vision detection for products applications. of CVX Our today, addressing wide providing

is training view as build-out business. significant Looking ahead, networks. of in the capacity a doubt We there there is a long-term our AI AI [indiscernible] and positive centers indicator this data next-generation for for leading inference no

[indiscernible]. Relative this customers help higher AI them to can vision, new performance our we of level computer new critical. us can IoT advanced be fact, with and edge significantly the AI computing to and as In we bring auto asking efficiency require networks increasingly is are the the will AI implemented networks, how they of how

computer vision run applications. are products new our for Ambarella, For initially expected AI to

applications address we this and with in However, advanced [ using to term, Long ] optimistic influence AI CVX it products. can value-added AI more our also to positions us are scale we the higher networks. about significant investment beginning family, how

strategic QX in our drive one Now profitability and is our the were priorities. the right key in sustaining objectives R&D intermediate term, growth in to And continue to and while, achieve investment near QX steps revenue the to direction. of

continue expenses, over even though us. appeared We be for managing the cyclical will downturn to to actively our

in Our goal drive growth. anticipated with year turn the revenue and is corner leverage next earnings to positive the the

talk outlook detail. and will John more in about results the QX QX Now

John Young

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

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

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

and while cash and QX to million for in representing increased turn $XXX.X of of $X.X revenue XX assets Inventory companies statement I'll quarter, XXX flow was million. We second cash quarter multiple and our prior increased XX a XXXX. Receivables Now Capital cash year that the in at WT Fiscal revenue the outstanding marketable year or flows. quarter. prior from generated to XX% Microelectronics, of to in had decreased Asia, for operating Hakuto securities discuss of days, revenue decreased Japan for more XX% fulfillment two Taiwan of million. XX% partner days the days tangible [ dollars balance sheet quarter from the a for were decreased for days the third sales a the XX% customers $XX.X $XX.X XXX quarter in million logistics expenditures outlook and to of ships QX. days. in ago. distributor of X% quarter. I'll from ], the our We from intangible now in inventory fiscal positive sequentially came to and

providing are in into As half XXXX. our ramps company-specific the factors, described, visibility of fiscal new with improved Fermi us particular, product second

auto. our we in be and fiscal revenue IoT estimate total million sequential QX, in to $XX range million, For the of will with $XX growth both

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

that, joining our I you our will And for million, tax expenses. the XX.X to $XXX,XXX our range quarter million and the non-GAAP to in expense compared of shares. Thank increase diluted We in net be be call the interest engineering increased count diluted approximately approximately million over third fully We and today. the be for $XX be to driven expect by turn call head QX, million, with $X.X to to approximately $XX non-GAAP share OpEx with estimate questions. operator to project-related count to the income

Operator

first Christopher Our comes Instructions] [Operator with the of line question Rolland Susquehanna. from

Christopher Rolland

one here? language might first vision that be been or you opportunity your architecture a referenced addressing I this you've time guess opportunity some something an for the opportunity different a talked opportunity? that here? how like my ASIC is, GPU think models. an from ASP, you've Is CVX here? And a about is new And of or maybe $X,XXX kind about we're a Is I talking that. this

Fermi Wang

Yes.

at family our For derivative a of [indiscernible], a language the demo first model vision CES this with model, a chip LAVA year we called CVX which [ ] is chip.

think [indiscernible] I a and the we model, third camera model a [ to is we our language up Lava Most with hook is ] what of real lot vision a on customer language of a attract give in the we it's them and vision engine, demo, interested cameras sees using model since interest. and multiple which So generation describe time. run inference

So even automotive. for this you can imagine enterprise very existing is customer, for both for as IoT our well as important maybe that

a X offering is real-time enable think run been this using that which even VRM recently, to we we believe provide feature I feedback, on quarters. Ambarella think talking running is But to can about camera to do. unique model So a the that CVXX can for I smaller a we've

Christopher Rolland

January. year traditional strong you the guidance January, suggest. I which expectation? view look -- then implied maybe we the gave, with secondly, least and just the guess guidance significantly for it seasonality than into it QX full of would What a At then weaker your was fourth you as talk the expectation could traditional it And track the way seasonality. very maybe for you maybe kind that I quarter parts reconcile how at for October, about moving the here implies and

Fermi Wang

Yes. Thank you.

I and the reflects if So in in last I when current guidance for between year we years, the seasonality calculation, right? normal When we the at QX look that to negative, believe you between our seasonality range of will probably a calculation, normal do seasonality. the very take whole that XX X% the midpoint So find QX. anywhere is XX% normal is

inventory So correction because we is that -- expect I think back go done with seasonality us. we to normal the

products. our ramping are We

And that reasonable. the [indiscernible] so is that we believe

Operator

Stanley. line Joe Our of next question comes from the Morgan Moore with

Joseph Moore

I wonder the talk for if about outlook you the quarter. could

by new new migrating understand of markets to coming driven strength Is products. kind being the about want quarter? increases the of content kind what's talked You end applications? that because people you're CVX? to driving there Just Are in or

Fermi Wang

Right.

fact, And being at perspectives. that about the is has from different we product We talk can new automotive both IoT driver look the our right? let's One new X in So see introduced customer. it by the market, quarter.

products, ASP we the LT much well before. the other IoT with introduced new products On higher and IoT side the have enterprise than as as customer

side. the on definitely IoT that's So

both side, ramping CVX in and this ] with up quarter. automotive are [indiscernible] Rivian the On the [

you -- that the up growth the So it is for if normal inventory on have rate at helps show the But is reason -- side. But CVX after to you side, for really the a to true. on the just growth. us market it correction product back also ramping the go look CVXX I the growth think main the

side. product the two reasons on So are those

Joseph Moore

you're quarter other I separately, increase China ago. Great. leading market? are China? potential the very OEMs conversations to there, to just seeing any That's you to in -- motors had but not ready you Can that know the helpful. talk in to announcement traction make And with EV is [indiscernible] the how And then just just additional a announcements you

Fermi Wang

Yes.

I momentum. win innovation like I -- with helps the design said any continue before, be think, I to that think definitely that market And going technology. our Chinese is drive to

So OEMs we Xs CVX. multiple continue and China talk for to in Tier

time, at getting I for customer So going the is... we're U.S. important think wins same that's that. continue But drive to and us, some design European to

Operator

comes of question line the Tore from next Svanberg. Our

Tore Svanberg

the Congratulations on here. results strong

me I and here. little a can picture paint out help maybe Fermi, bit just you So wanted a to of

obviously, going been quite ramping. well. to and those XXXX? production to meaningfully Or CVXX obviously mean, and CVXX. grail about What CVXX really also CVX, are year? ramp I next CVX The now those is CVX-NX, holy has So doing more Are

Operator

by resume Ladies gentlemen, will call by. stand Please momentarily. and please stand conference your by. stand Please

Our next from comes Tore question the Svanberg. line of

Tore Svanberg

the on strong Congrats results, guys.

we of CVX, and right? Fermi, waiting and has here, ramping So CVX. But you Because could Everyone's the hoping me I product was in CVXX. CVX bit with doing a some obviously, [ meantime, for the We're well. little help CVXX got been NX cycle just ]. out CVXX now

going strong year? CVXX from be and those are ramps pretty are So XXXX? more CVXX to to Or going we see next also

Fermi Wang

Thank Yes. you.

CVXX, First believe continue think to view, I sorry next ramping of be product seeing we start all, that And you the year. up. the next of a will up -- it From CV interruption. ramping next will CVX this point will enterprise shipping CVXX of strong up at continue IoT year expect enterprise will for this end start product and And We year. the year, the start. the ramping to in year in

or later the in upgrade they to events, a [ more But type they most vision design CN [ model they CVXX. language that's stage neural of plan fact, ] customers [ like the -- interesting after network model camera, traditional ] because ] new ship can CVXX product, newer to CVXX upgrade our use software In clip of for we when they believe that network.

and years second the [ up CDXX expect really family. will we IoT of also, enable but the CVXX side, year, before. traditional ] product low-end new serving enterprise expect that product will cycle half the the X for of our in we And mid- that is we of beginning just So X, next applications ramp like and will this life be have CVX it

So that up is situation. the ramping

Tore Svanberg

Right.

perspective perspective, to being higher pricing products but of new by right? Because a obviously, you the driven right growth that a just so lot from is into now ASPs. that And put said

at So would still product especially higher when that CVXX, right? look we be a CVX, ASP than

Fermi Wang

No.

that should family. fact, is a In high-end CVXX. CVXX compare CVX to CVX

treat cycle. -- and replacement year the refresh a is of coming that should been CVXX-family So old, CVXX X you has to we need really as

end continues to high and So CVXX, for a jump CVXX I will is ASP say, a the significant be market. CVX family of

John Young

And SoCs XX to today perspective, products our in Yes. CVX new ] of [ XX add of was for would is some family Fermi higher all just blended then, as they ramp. about ASP bring our and CVX, they around that to ASP CVX, Tore, all these blended talking course,

Operator

question of Seymore Bank. from comes next Our Ross the line Deutsche with

Ross Seymore

me hear you okay? Can

Fermi Wang

Yes.

Ross Seymore

Great.

burn strong So I on talked product know the said first, also report inventory new done. the understand how you driven, you that congratulations this I methodology, is is and and but that about guide.

the quarter? out So trying sequentially we big are you're there, and getting just And the then an seasonality a point there's and third new inventory part to not I'm comments burn from longer side is of to your into either. applies. so burning figure new that versus no the that where inventory normal step-up products the product

Fermi Wang

Yes.

we bit are inventory when of in our of we correction customer, most done not with is all, they they we burn talk QX but much the also. told So to a a first QX, big because customers us the inventory down little believe maybe --

they up a speed how and are So We we we very stable they building our inventory. time from how are a booking. booking give with lead customer foundry, -- when believe new and also regular PO look and the at in are us are not we watch they -- and

seeing for the time. growth most growth. think things we the point coming two main CVX the the look growth and back that when correction -- correction inventory revenue contributed them and I inventory before, family from is is CVXX reason as those also back downward the well compared this to are normal of from we're as So the by the to of us. And go at view, And

Ross Seymore

that I an commentary. the you and With automotive new and to ramps in, hopeful significantly some just growth it to the the answered customer as we gave with on grow full Is the just How follow-up. with simplify kickers little the think next faster year product other? seasonal the bit. as stuff my the market guess thinking to I takes IoT of be would If automotive [indiscernible] products and was end when large a that put expect timing one I puts -- steps would coming stair going for be begin. was you into you they're of et Do very new and here? cetera. has some the you versus rate year? is largely new IoT than perspective one from

kind the them? of how Just about rates of linearity should think we growth relative and

Fermi Wang

Right.

So in has maybe both up. automotive that sides we grow in in a -- we similar a term, IoT rate, think a QX, ramping will think because very short I new product

an For I any IoT because at we helping IoT is personally that although I believe haven't automotive after kick automotive. official our that and growth CVX and family better next year, will in that growth more. CVXX it than believe device, has rate guidance, that contribute hope do will start But the we a just given

Operator

with question of comes next Rosenblatt. the Kevin line Our from Cassidy

Kevin Cassidy

a product cycle. very in you're strong Clearly,

a compare past just give cycles? it past. like the product in there the few a product customers different quite what's you had we're product the to software us can Can anything cycle cycle, Fermi, Is you, longer-term maybe comparison, your stickiness, maybe past You've this cycles. product, than defending

Fermi Wang

is I offering two think us. cycle, One performance. things is is there that at this customer which important I AI really look when product are our for

object using customers to to example, editing see, security AI the performance. using quality guys do to can CVX, help functions, we're using that video seeing network. or and one As CVX of you also add camera detection, more reasons advanced the AI to video is AI improve AI And using our that for

performance we higher. requirement So is AI performance, getting like the and just predict, what higher

for power when because performance all I important. that continues that sticky cameras, to increase consumption your AI the you think be for it's us

higher consumption, be -- unique to AI going offering continue are in performance we -- offer to that's is much too of differentiation. power So increase our and without the our continue to

said, -- think time, us this I will that performance it to go continue customer the up. we So base. if have like that's a believe case, requirement If I we to help AI will sticky

Kevin Cassidy

just we wasn't your going is And that, your means trend mentioned, customers, Great. XX% be of forward? in is should getting going imply less [indiscernible] that another Okay. percentage that revenue? consumer be overall to the And to

Fermi Wang

last other category. not home Right. is one in security rate wins quarters, few That's home [indiscernible] the IoT really it time. In IoT talked -- our call as design of continues or that -- as we can we but automotive. price this category, about consumer That I but IP than that there the the the weakness just designed home. using [ why in within security size [indiscernible] they well ], continue slower majority the think market application. -- to much used security the home it's camera home to -- although And is IoT are sorry, XX% have growth We

Operator

next Ramsey TD of question the line Matt Cowen. comes Our with from

Unknown Analyst

I [ And really of positive on Sean others And know in business. wanted in significant decline more congratulations that on side we echo pretty actually here. I traditional saw processor for a to video ] actually guidance O'Laughlin It's Matt. the on the the I'll of year here XXXX. fiscal dig the

something we another about legacy into the call that going about moved it? categorized think processing. Should or industry decline was of of so a is of of $XX much Or CVXX product to segment lot that potential the you've sort lever of it spent million forward? as more video at traditional that sort think a talking the like beyond that on potential the family I the from from time, and

Fermi Wang

Right.

our I but years AI all So clear that definitely several decision all, more want Ambarella made first very of total also limited resources a think we growth. the moved to ago AI, on the market to pool

processor we few taped haven't out So years. the any in last video

factor. that's So important I an also think

than or sales don't unit decline significantly we the the number will of revenue future, processor So video rate slower but in believe was increase the before.

when that in well and So us the for for the generating the trend unit start company I think revenue. revenue. more start will the declined AI much even to help rate as our that a up slower growth showing processor And as video

Unknown Analyst

could Yes. That's new ASPs, products, new margin John wondering of speak to more those there foundry geometries talked products, higher that. a and we then crystal are clear. And profile I little those stuff on considering of but about and pricing wafer the was maybe advanced that increases bit potential like

John Young

Sean. Great. Thank you. Yes,

at the profile smaller process So last seen go we we several margin and nodes. nodes smaller the high a don't change process profiles anticipate over as to this that margin level, from will significantly what we've

margin and But terms more foundry kind just XX% to would becomes we As range XX%, kind it. commercial we've of to said expect range that's of previously, I than, say, our issue. and that get long-term gross of markets any into long-term is portion as automotive a larger

Operator

comes the Suji question of Capital. next line from Our ROTH with Desilva

Sujeeva De Silva

which think segment if Or wrong. fiscal IoT. in the kind second it that's I of in you Please did growth the to progress to burn here. just IoT ordering applications is, back? the the came correct it second had I inventory in Congrats help clarify wanted And was the quarter, fiscal mostly quarter? resume

Fermi Wang

Right.

to So back customers that back inventory taking helps. up rate really IoT And category. really a the then is for than clean go ordering go mode the IoT back the second as -- other enterprise And is growth quarter, growth few are and quickly production, to right, IoT that higher of inventory can the side growth lot that stabilize is to you and of see a as regular pattern. go enterprise our main the area IoT the IoT to you CVX the well the other And into also automotive.

Sujeeva De Silva

flipping then And over the side. auto it. Got to

as calendar start have you or the growth into visibility You have 'XX to starts? there the [ CVX or frame, and autos talked ramps when a program kind frame. of ] kind of where Do potentially helping sense? in program maybe would 'XX about in in the ramp time us the time a inflection those give Roughly inflect of XXxXX to upward timing

Fermi Wang

Right.

talked for year we about ramp-up. 'XX So CVX calendar

first about motor. the we one [indiscernible] The talked was

We have hopefully, we not the talked can and provide about the future. near information in yet, that models

Operator

question [Operator comes Company. from the line next of Instructions] Needham Our [indiscernible] with &

Unknown Analyst

there This Ambarella's current Bolton. provided is a last quarter. win engaged passenger engagements? is so, more [indiscernible] OEM halo for first Or effect OEM question sentiment Ambarella a My with shift Quinn is on that for in with? has current Has that OEMs passenger on been

Fermi Wang

I of think helps. design win any all, So first

design past, about while OEM experience. -- our every automotive scale win, the win winning consider the our the that design in also think issue, and I So they however, we But different. talk is

help. So But technology that pricing will the definitely categories first side customer our will side. [indiscernible] competitors be design different side, every support to the to on fighting and -- -- also against on go design

I to think design. win it but deterministic be a us help helps, first design to cannot the win future

Unknown Analyst

the is this? pricing any I follow-up market. question impacts my some Chinese of negative OEMs, news seeing And between auto is from China Ambarella has There aggressive on recent been wondering and if was

Fermi Wang

announced the wins of type Tier in very like absolutely see pricing The right. fact, pressure recorders, China high, multiple win monitors. to ADAS, in and market design quarters, we [indiscernible], X design current our last for is OEM, different have you're continue products Chinese in Well, we --

we few pricing in pressure yes, the I not John to a profile just do margin however, going at if change think But always balance, next about, the we think I is that still the total quarters. see our in So also, gross lot look there. margin that pressures. gross our talked think, But you

Operator

Bank. [Operator follow-up have Instructions] of the line Ross We Seymore with from question Deutsche a

Ross Seymore

you typical next going or more quick it? in how into what ones Louis an two that extent framework -- a we seasonality just fiscal To Sneak been is Fermi give of seasonality? matter is have fourth look to Can Wang think as quarter. the seasonality to define that's view year, in gave however idea the might you I want you it us here.

Louis Gerhardy

you've which X or as look Sure. look Whether got we down at is you both, averages X-year XX-year, sequentially. at

the that's QX X-year average. QX. You've are a average, The XX-year got quarters down be and you do then strongest sequentially. bit, And numbers or our can but if vary QX

Ross Seymore

it. one John. then guess And I for Got

here. much of as extent As be relative you've ahead it's guys I about next put about growth. be just to going about is the an think I important company that you relationship. think I a does ton But how leverage that to know to already -- think significant to metric revenue of in the and more I growth profitability, spending see growth? do to how a OpEx looking year, work How in going you've wanted been revenue like mentioned, the Fermi

John Young

for factors Yes. but the next primary mean, toward profitability. drive lots non-GAAP year, to into that I plan is there's the obviously, focus go of

road perspective, incremental And the we're so hold on from as possibly OpEx going to as we delivering an as map. while low still spend can hold

Operator

the to no gentlemen, would I'm and showing in turn now Dr. like Ladies further questions Wang to remarks. call queue. I back for closing the over Fermi

Louis Gerhardy

Twanda, I Martin, we don't just that? why interrupt. noticed, take to Sorry we had pop-up. one more

Operator

Yang Our next of comes question and Company. from line Oppenheimer the with Martin

Martin Yang

non the has there helped Is anything the that guidance. IoT with strength? your industrial on guidance regarding question in happening quick A

Fermi Wang

Sorry, Can we say question you a didn't get it clear. again?

Martin Yang

there and guidance the the is the IoT strength XQ? guidance regarding that in helped of consumer So segment with anything

Fermi Wang

Yes.

believe weak model requirement. So performance low limited we of home this us the is can ], still end with [ to all, for really we what market IoT And first the about markets of that's the IP now. going that's consumer one because a call

QX that, home so didn't with IoT However, our help guidance. the QX guidance,

model happens, ] continued service. If However, like language a are some to or and on of whole adding [ market IoT thinking to happens, clip seeing the will to when we the few VRM people that go that ] their because change start [ [ a think us if at camera, clip to ] you in opportunity want sell product type I give of to the age CVXX think very chips that. run back definitely do I that about can

us. are But QX new be So a I for see network that that become consumer waiting requirement IP for to If and new guidance, would happening market better help. that a or function [ that ]. will fit doesn't can think whether we happens,

Operator

I'll now back call over turn Fermi to the Wang. Dr.

Fermi Wang

and a Thank you conference talk today to for looking you, or you, joining next guys. in everybody, forward Thank us different to time.

Operator

Ladies and for conference Thank call. you your today's gentlemen, concludes this participation.

disconnect. now may You

Ambarella (AMBA) 27 Aug 242025 Q2 Earnings call transcript