Summary by Moomoo AI
Ambarella reported Q3 FY2025 revenue of $82.7 million, up 63.4% year-over-year, driven by higher AI inference processor sales and new product ramps. Gross margin improved to 60.6% from 59.3% last year due to favorable product mix and increased NRE revenue. Operating loss narrowed to $25.5 million from $42.0 million in Q3 FY2024.For the nine months ended October 31, 2024, revenue increased 14.9% to $200.9 million, while operating loss improved to $101.2 million from $112.8 million. The company cited higher engineering expenses for AI technology development as R&D costs rose 3.8% to $169.3 million. Cash, cash equivalents, and marketable securities stood at $226.5 million as of October 31, 2024.Ambarella expects AI and computer vision functionality to become increasingly important in its target markets. The company is focusing on developing advanced AI and computer vision technologies for applications in IoT, automotive, industrial, and robotics markets. Management believes future revenue growth will significantly depend on expanding within camera markets with computer vision technology, particularly in AI-enabled security cameras and automotive applications.
