NASDAQ$CMBMF

Cambium Networks Corporation · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Cambium Networks reported a disappointing second quarter due to lower Enterprise product demand and a challenging macroeconomic environment, while also announcing Morgan Kurk as the new President & CEO.

Cambium Networks reported revenues of $59.5 million for Q2 2023, a decrease of 23% sequentially and an increase of 14% year-over-year. The company experienced a GAAP net loss of $2.6 million, or $0.10 per diluted share, and a non-GAAP net income of $0.9 million, or $0.03 per diluted share. Morgan Kurk was appointed as the new President and CEO.

  • Revenues decreased 23% sequentially and increased 14% year-over-year, totaling $59.5 million.
  • Record Point-to-Point revenues reached $25.1 million, up 39% sequentially and 60% year-over-year.
  • GAAP net loss was $2.6 million or $0.10 per diluted share, while non-GAAP net income was $0.9 million or $0.03 per diluted share.
  • Adjusted EBITDA was $2.8 million, representing 4.7% of revenues.

Headline financials

Total Revenue

$59.5M

Previous: $69.3M-14.1%
EPS (adj)

$0.03

Previous: $0.18-83.3%
Adjusted EBITDA Margin

4.7%

Previous: 11.3%-58.4%
Capital Expenditures

-$2.24M

Previous: -$2.27M+1.4%
Free Cash Flow

-$4.88M

Previous: $54K-9133.3%
Net Income

-$2.64M

Previous: $2.32M-213.8%
Operating Income

-$2.7M

Previous: $2.67M-201.4%
Gross Profit

$29.2M

Previous: $33.4M-12.6%
Cash & Equivalents

$32M

Previous: $45.9M-30.4%
Total Assets

$280M

Previous: $235M+19.3%
Stock-Based Comp

$3.06M

Previous: $2.52M+21.7%

Revenue & EPS history

Cambium Networks · Revenue · Quarterly

$59.5M

Q2 2023-14.1%vs Q2 2022
Beat estimate in 3 of 12 quarters(25%)
ActualEstimate

Revenue by segment

Cambium Networks · $53.1M total across 3 segments · Q2 2023

  • Point-to-Multi-Point
    $26.7M-5.4%
  • Point-to-Point
    $25.1M+59.9%
  • Other
    $1.31M-1.1%

Forward guidance

Cambium Networks provided financial outlook for the third quarter ending September 30, 2023, with revenues expected to be between $62.0-$70.0 million.

Tailwinds

  • Revenues between $62.0-$70.0 million.
  • GAAP gross margin between 48.7%-50.2%; and non-GAAP gross margin between 49.8%-51.3%.
  • GAAP operating (loss) income between ($0.3)-$3.6 million; and non-GAAP operating income between $5.2-$9.2 million.
  • GAAP net (loss) income between $(0.8)-$2.4 million or between ($0.03) and $0.08 per diluted share; and non-GAAP net income between $3.7-$6.9 million or between $0.13 and $0.25 per diluted share.
  • Adjusted EBITDA between $6.3-$10.3 million; and adjusted EBITDA margin between 10.2%-14.8%.

Headwinds

  • GAAP operating expenses between $30.5-$31.5 million; and non-GAAP operating expenses between $25.6-$26.6 million.
  • Interest expense, net of approximately $0.7 million
  • GAAP effective tax rate of approximately 0.0%; and non-GAAP effective tax rate of approximately 17.0%-21.0%.
  • Paydown of debt: $0.7 million
  • Capital expenditures: $4.0-$4.5 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 Q2 2023

Historical avgQ2 2023

-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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