Ambarella Earnings 2020-10-31

Ambarella Earnings 2020-10-31

AMBA 10Q Quarterly Report

Balance Sheet	Income Statement	Cash Flow
Assets, Equity	Rev, G Profit, Net Income	Ops, Inv, Fin

amba-10q_20201031.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark One)

☒

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended October 31, 2020

☐

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number: 001-35667

AMBARELLA, INC.

(Exact name of registrant as specified in its charter)

Cayman Islands		98-0459628
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

3101 Jay Street Santa Clara, California		95054
(Address of principal executive offices)		(Zip Code)

(408) 734-8888

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol	Name of each exchange on which registered
Ordinary Shares, $0.00045 Par Value Per Share	AMBA	The Nasdaq Global Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The number of ordinary shares of the Registrant outstanding as of December 2, 2020 was 35,172,037 shares.

AMBARELLA, INC.

QUARTERLY REPORT ON FORM 10-Q

TABLE OF CONTENTS

		Page

PART I. FINANCIAL INFORMATION			3

Item 1.	Financial Statements		3

	Unaudited Condensed Consolidated Balance Sheets at October 31, 2020 and January 31, 2020		3

	Unaudited Condensed Consolidated Statements of Operations for the three and nine months ended October 31, 2020 and 2019		4

	Unaudited Condensed Consolidated Statements of Comprehensive Loss for the three and nine months ended October 31, 2020 and 2019		5

	Unaudited Condensed Consolidated Statements of Shareholders’ Equity for the three and nine months ended October 31, 2020 and 2019		6

	Unaudited Condensed Consolidated Statements of Cash Flows for the nine months ended October 31, 2020 and 2019		7

	Notes to Unaudited Condensed Consolidated Financial Statements		8

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		22

Item 3.	Quantitative and Qualitative Disclosures About Market Risk		33

Item 4.	Controls and Procedures		33

PART II. OTHER INFORMATION			34

Item 1.	Legal Proceedings		34

Item 1A.	Risk Factors		34

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		60

Item 6.	Exhibits		60

Signatures			62

PART I – FINANCIAL INFORMATION

ITEM 1. Financial Statements

AMBARELLA, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share data)

(unaudited)

	As of
	October 31,		January 31,
	2020		2020
ASSETS
Current assets:
Cash and cash equivalents	$	225,508	$	231,403
Marketable debt securities		198,129		173,345
Accounts receivable, net		24,111		18,487
Inventories		23,712		22,971
Restricted cash		10		9
Prepaid expenses and other current assets		4,777		4,975
Total current assets		476,247		451,190
Property and equipment, net		5,131		5,614
Deferred tax assets, non-current		10,463		10,400
Intangible assets, net		17,352		17,826
Operating lease right-of-use assets, net		8,734		9,935
Goodwill		26,601		26,601
Other non-current assets		5,027		5,710
Total assets	$	549,555	$	527,276
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable		14,613		14,910
Accrued and other current liabilities		41,922		34,970
Operating lease liabilities, current		2,809		2,181
Income taxes payable		1,711		691
Deferred revenue, current		1,178		701
Total current liabilities		62,233		53,453
Operating lease liabilities, non-current		6,662		7,975
Other long-term liabilities		18,007		17,776
Total liabilities		86,902		79,204
Commitments and contingencies (Note 13)
Shareholders' equity:
Preference shares, $0.00045 par value per share, 20,000,000 shares authorized and no shares issued and outstanding at October 31, 2020 and January 31, 2020, respectively		—		—
Ordinary shares, $0.00045 par value per share, 200,000,000 shares authorized at October 31, 2020 and January 31, 2020, respectively; 35,072,089 shares issued and outstanding at October 31, 2020; 33,805,609 shares issued and outstanding at January 31, 2020		16		15
Additional paid-in capital		322,502		261,220
Accumulated other comprehensive income		1,363		768
Retained earnings		138,772		186,069
Total shareholders’ equity		462,653		448,072
Total liabilities and shareholders' equity	$	549,555	$	527,276

See accompanying notes to condensed consolidated financial statements.

AMBARELLA, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except share and per share data)

(unaudited)

	Three Months Ended October 31,						Nine Months Ended October 31,
	2020			2019			2020			2019
Revenue	$	56,090		$	67,922		$	160,848		$	171,520
Cost of revenue		21,298			28,819			63,078			72,127
Gross profit		34,792			39,103			97,770			99,393
Operating expenses:
Research and development		36,573			32,480			103,575			95,917
Selling, general and administrative		14,468			13,791			41,348			39,293
Total operating expenses		51,041			46,271			144,923			135,210
Loss from operations		(16,249	)		(7,168	)		(47,153	)		(35,817	)
Other income, net		673			1,917			3,231			6,308
Loss before income taxes		(15,576	)		(5,251	)		(43,922	)		(29,509	)
Provision (benefit) for income taxes		1,502			(942	)		3,375			2,302
Net loss	$	(17,078	)	$	(4,309	)	$	(47,297	)	$	(31,811	)
Net loss per share attributable to ordinary shareholders:
Basic	$	(0.49	)	$	(0.13	)	$	(1.37	)	$	(0.97	)
Diluted	$	(0.49	)	$	(0.13	)	$	(1.37	)	$	(0.97	)
Weighted-average shares used to compute net loss per share attributable to ordinary shareholders:
Basic		34,819,880			33,304,171			34,460,172			32,885,729
Diluted		34,819,880			33,304,171			34,460,172			32,885,729

See accompanying notes to condensed consolidated financial statements.

AMBARELLA, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(unaudited, in thousands)

	Three Months Ended October 31,						Nine Months Ended October 31,
	2020			2019			2020			2019
Net loss	$	(17,078	)	$	(4,309	)	$	(47,297	)	$	(31,811	)
Other comprehensive income (loss), net of tax:
Net unrealized gains (losses) on investments		(224	)		140			595			588
Other comprehensive income (loss), net of tax		(224	)		140			595			588
Comprehensive loss	$	(17,302	)	$	(4,169	)	$	(46,702	)	$	(31,223	)

See accompanying notes to condensed consolidated financial statements.

AMBARELLA, INC.

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(in thousands, except share data)

(unaudited)

									Accumulated
	Outstanding					Additional			Other
	Ordinary Shares					Paid-in			Comprehensive			Retained
	Shares			Amount		Capital			Income			Earnings			Total
Balance--January 31, 2020		33,805,609		$	15	$	261,220		$	768		$	186,069		$	448,072
Issuance of shares through employee equity incentive plan		478,643			—		6,463			—			—			6,463
Issuance of shares through employee stock purchase plan		83,564			—		2,660			—			—			2,660
Stock repurchase		(25,719	)		—		(1,000	)		—			—			(1,000	)
Stock-based compensation expense related to stock awards granted to employees and consultants		—			—		15,214			—			—			15,214
Net unrealized losses on investments - net of tax		—			—		—			(363	)		—			(363	)
Net loss		—			—		—			—			(15,463	)		(15,463	)
Balance--April 30, 2020		34,342,097			15		284,557			405			170,606			455,583
Issuance of shares through employee equity incentive plan		268,739			—		344			—			—			344
Stock-based compensation expense related to stock awards granted to employees and consultants		—			—		16,294			—			—			16,294
Net unrealized gains on investments - net of tax		—			—		—			1,182			—			1,182
Net loss		—			—		—			—			(14,756	)		(14,756	)
Balance--July 31, 2020		34,610,836			15		301,195			1,587			155,850			458,647
Issuance of shares through employee equity incentive plan		361,886			1		1,102			—			—			1,103
Issuance of shares through employee stock purchase plan		99,367			—		3,164			—			—			3,164
Stock-based compensation expense related to stock awards granted to employees and consultants		—			—		17,041			—			—			17,041
Net unrealized losses on investments - net of tax		—			—		—			(224	)		—			(224	)
Net loss		—			—		—			—			(17,078	)		(17,078	)
Balance--October 31, 2020		35,072,089		$	16	$	322,502		$	1,363		$	138,772		$	462,653

									Accumulated
	Outstanding					Additional			Other
	Ordinary Shares					Paid-in			Comprehensive			Retained
	Shares			Amount		Capital			Income			Earnings			Total
Balance--January 31, 2019		32,303,540		$	15	$	188,516		$	97		$	230,861		$	419,489
Issuance of shares through employee equity incentive plan		335,301			—		1,520			—			—			1,520
Issuance of shares through employee stock purchase plan		99,759			—		3,063			—			—			3,063
Stock-based compensation expense related to stock awards granted to employees and consultants		—			—		15,423			—			—			15,423
Net unrealized gains on investments - net of tax		—			—		—			254			—			254
Net loss		—			—		—			—			(17,311	)		(17,311

Price	63.57	EPS	-1
Shares	34	P/E	-67
MCap	2,132	P/FCF	60
Net Debt	-252	EBIT	-30
TEV	1,880	TEV/EBIT	-64
TTM 2019-10-31, in MM, except price, ratios

10-Q	2020-10-31	Filed 2020-12-09
10-Q	2020-07-31	Filed 2020-09-09
10-Q	2020-04-30	Filed 2020-06-08
10-K	2020-01-31	Filed 2020-03-27
10-Q	2019-10-31	Filed 2019-12-06
10-Q	2019-07-31	Filed 2019-09-06
10-Q	2019-04-30	Filed 2019-06-07
10-K	2019-01-31	Filed 2019-03-29
10-Q	2018-10-31	Filed 2018-12-07
10-Q	2018-07-31	Filed 2018-09-07
10-Q	2018-04-30	Filed 2018-06-08
10-K	2018-01-31	Filed 2018-03-30
10-Q	2017-10-31	Filed 2017-12-08
10-Q	2017-07-31	Filed 2017-09-08
10-Q	2017-04-30	Filed 2017-06-08
10-K	2017-01-31	Filed 2017-03-30
10-Q	2016-10-31	Filed 2016-12-09
10-Q	2016-07-31	Filed 2016-09-08
10-Q	2016-04-30	Filed 2016-06-08
10-K	2016-01-31	Filed 2016-03-25
10-Q	2015-10-31	Filed 2015-12-09
10-Q	2015-07-31	Filed 2015-09-08
10-Q	2015-04-30	Filed 2015-06-08
10-K	2015-01-31	Filed 2015-03-30
10-Q	2014-10-31	Filed 2014-12-09
10-Q	2014-07-31	Filed 2014-09-08
10-Q	2014-04-30	Filed 2014-06-06
10-K	2014-01-31	Filed 2014-04-04
10-Q	2013-10-31	Filed 2013-12-12
10-Q	2013-07-31	Filed 2013-09-13
10-Q	2013-04-30	Filed 2013-06-12
10-K	2013-01-31	Filed 2013-04-04
10-Q	2012-10-31	Filed 2012-12-17

8-K	2020-11-23
8-K	2020-09-02
8-K	2020-06-04
8-K	2020-06-02
8-K	2020-03-03
8-K	2019-11-25
8-K	2019-10-15
8-K	2019-08-29
8-K	2019-08-08
8-K	2019-06-06
8-K	2019-06-04
8-K	2019-03-05
8-K	2019-02-28
8-K	2018-11-29
8-K	2018-10-15
8-K	2018-08-30
8-K	2018-08-06
8-K	2018-06-05
8-K	2018-06-04
8-K	2018-04-18
8-K	2018-03-01

EX-31.1	amba-ex311_7.htm
EX-31.2	amba-ex312_6.htm
EX-32.1	amba-ex321_8.htm

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company