NASDAQ$CMBMF

Cambium Networks Corporation · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Reports first quarter 2020 financial results, exceeding revenue outlook and demonstrating strong enterprise Wi-Fi growth.

Cambium Networks reported Q1 2020 revenues of $60.4 million, exceeding the high-end of its outlook, with enterprise Wi-Fi revenues increasing 106% year-over-year. The company's financial position remains strong amidst market turbulence, driven by the increasing need for fixed wireless broadband infrastructure.

  • Revenues reached $60.4 million, surpassing the high-end of the company's outlook.
  • Enterprise Wi-Fi revenues increased by 106% year-over-year.
  • GAAP gross margin was 50.7%, a 400 basis point increase from Q1 2019.
  • The company increased new channel partners by over 1,550 year-over-year, a 26% increase.

Headline financials

Total Revenue

$60.4M

Previous: $68.1M-11.3%
EPS (adj)

$0.05

Previous: $0.07-31.2%
Adjusted EBITDA Margin

7.3%

No prior period
Capital Expenditures

-$1.05M

No prior period
Free Cash Flow

-$1.89M

No prior period
Net Income

-$838K

Previous: $1.86M-145.0%
Operating Income

$373K

Previous: $4.68M-92.0%
Gross Profit

$30.6M

Previous: $31.8M-3.6%
Cash & Equivalents

$24.5M

No prior period
Total Assets

$171M

No prior period
Stock-Based Comp

$811K

No prior period

Revenue & EPS history

Cambium Networks · Revenue · Quarterly

$60.4M

Q1 2020-11.3%vs Q1 2019
Beat estimate in 8 of 10 quarters(80%)
ActualEstimate

Revenue by segment

Cambium Networks · $60.4M total across 4 segments · Q1 2020

  • Point-to-Multi-Point
    $34.9M
  • Point-to-Point
    $13.1M
  • Enterprise
    $11.5M
  • Other
    $971K

Forward guidance

Cambium Networks provided financial outlook for the second quarter ending June 30, 2020, but withdrew its full year 2020 financial outlook.

Tailwinds

  • GAAP revenues are expected to be between $51.0-$56.0 million.
  • GAAP gross margin is projected to be between 48.2%-49.2%, with non-GAAP gross margin between 48.5%-49.5%.
  • GAAP operating (loss) income is anticipated to be between ($1.1)-$0.8 million, while non-GAAP operating income is expected to be between $1.1-$3.0 million.
  • GAAP net loss is forecasted to be between $1.9-$0.5 million or between $0.07 and $0.02 per diluted share; non-GAAP net (loss) income between ($0.1)-$1.3 million or between ($0.00) and $0.05 per diluted share.
  • Adjusted EBITDA is expected to be between $2.1-$4.0 million, with an adjusted EBITDA margin between 4.2%-7.2%.

Headwinds

  • GAAP operating (loss) income is anticipated to be between ($1.1)-$0.8 million
  • GAAP net loss is forecasted to be between $1.9-$0.5 million or between $0.07 and $0.02 per diluted share
  • Non-GAAP net (loss) income between ($0.1)-$1.3 million or between ($0.00) and $0.05 per diluted share.
  • The company has withdrawn its previously announced full year 2020 financial outlook due to the rapidly evolving uncertainty surrounding the effects of the COVID-19 virus.
  • Cash requirements include paydown of debt: $2.5 million, interest expense: approximately $1.1 million, Capital expenditures: $0.7-$0.9 million, Pre-tax restructuring charges: $0.2-$0.3 million

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 18 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

-2.9%

Avg return

Earnings day

-0.5%

Avg return

5 days after

-0.4%

Avg return

30 days after

39%

11 / 28 earnings

Positive

+20.7%

Q3 2022

Best reaction

-29.8%

Q2 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+11.8%+11.8%
Q3 2025+0.0%+158.7%+180.0%
Q2 2025-5.6%-21.8%-31.1%
Q1 2025-7.4%-5.6%+10.7%
Q4 2024-13.8%-0.8%-27.2%
Q3 2024-9.9%-3.1%-24.4%
Q2 2024-4.0%-6.2%-5.6%
Q1 2024-13.9%-13.5%-24.0%
Q4 2023+5.5%-3.9%+0.5%
Q3 2023-3.0%-8.9%+0.6%
Q2 2023-29.8%-38.5%-43.1%
Q1 2023-0.3%+3.0%+22.9%
Q4 2022+4.1%-5.2%-18.0%
Q3 2022+20.7%+17.9%+21.4%
Q2 2022+0.1%+1.7%-3.9%
Q1 2022-19.0%-17.6%-14.0%
Q4 2021+12.9%+3.9%+3.7%
Q3 2021-7.8%-7.1%-19.4%
Q2 2021+1.6%-12.4%-19.7%
Q1 2021+3.2%-13.2%-15.2%
Q4 2020+3.5%+4.3%+19.0%
Q3 2020+14.7%-0.3%+14.4%
Q2 2020+4.5%+4.8%+12.2%
Q1 2020-17.8%-25.3%+0.9%
Q4 2019-6.1%-12.9%-34.2%
Q3 2019-16.5%-15.3%-31.2%
Q4 2018-4.2%+1.1%+12.8%
Q2 2019-4.9%-8.9%+1.7%
Q1 2019
Q3 2018
Q2 2018
Q1 2018
Q1 2017

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