NASDAQ$CMBMF

Cambium Networks Corporation · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Cambium Networks' financial performance improved with sequential revenue growth and margin expansion

Cambium Networks reported a 9% sequential increase in revenues to $45.9 million for Q2 2024. Gross margins improved, and the company generated positive cash from operations. The Enterprise and Point-to-Multi-Point businesses showed strength. Cambium expects continued financial improvements throughout 2024 by controlling costs and enhancing operating efficiency.

  • Revenues increased 9% sequentially to $45.9 million.
  • GAAP gross margin was 31.4%, and non-GAAP gross margin was 33.5%.
  • GAAP net loss was $9.1 million, or $0.33 per diluted share; non-GAAP net loss was $7.1 million, or $0.25 per diluted share.
  • Net cash provided by operating activities was $2.4 million, with $42.6 million in cash on the balance sheet.

Headline financials

Total Revenue

$45.9M

Previous: $59.5M-22.8%
EPS

-$0.33

Previous: $0.03-1200.0%
Non-GAAP Gross Margin

33.5%

No prior period
Adjusted EBITDA Margin

-14.5%

Previous: 4.7%-408.5%
Gross Margin

31.4%

No prior period
Capital Expenditures

-$4.08M

Previous: -$2.24M-82.5%
Free Cash Flow

-$13.2M

Previous: -$4.88M-171.1%
Net Income

-$9.14M

Previous: -$2.64M-246.1%
Operating Income

-$12.1M

Previous: -$2.7M-347.7%
Gross Profit

$14.4M

Previous: $29.2M-50.7%
Cash & Equivalents

$42.6M

Previous: $32M+33.1%
Total Assets

$225M

Previous: $280M-19.7%
R&D Expense

$9.12M

No prior period
Stock-Based Comp

$2.56M

Previous: $3.06M-16.4%

Revenue & EPS history

Cambium Networks · Revenue · Quarterly

$45.9M

Q2 2024-22.8%vs Q2 2023
Beat estimate in 3 of 12 quarters(25%)
ActualEstimate

Revenue by segment

Cambium Networks · $44.6M total across 4 segments · Q1 2026

  • Point-to-Multi-Point
    $17.4M
  • Enterprise
    $16.2M
  • Point-to-Point
    $10.3M
  • Other
    $637K

Forward guidance

For the third quarter ending September 30, 2024, Cambium Networks anticipates revenues between $43.0-$48.0 million, GAAP gross margin between 39.5%-41.5%, GAAP operating loss between $7.7-$9.7 million, and GAAP net loss between $8.0-$9.7 million.

Tailwinds

  • Revenues between $43.0-$48.0 million
  • GAAP gross margin between 39.5%-41.5%; and non-GAAP gross margin between 41.5%-43.5%
  • GAAP operating expenses between $26.6-$27.6 million; and non-GAAP operating expenses between $23.4-$24.4 million
  • Interest expense, net, of approximately $1.6 million
  • GAAP effective tax rate not meaningful; and a non-GAAP effective tax benefit of approximately 25%

Headwinds

  • GAAP operating loss between $7.7-$9.7 million; and non-GAAP operating loss between $3.6-$5.6 million
  • GAAP net loss between $8.0-$9.7 million or a net loss between $0.28 and $0.34 per diluted share; and non-GAAP net loss between $3.8-$5.4 million or a net loss between $0.14 and $0.19 per diluted share
  • Adjusted EBITDA loss between $2.4-$4.4 million; and adjusted EBITDA margin between (4.9)%-(10.2%)
  • Paydown of debt: $0.7 million; Cash interest expense: approximately $1.5 million
  • Capital expenditures: $2.0-$3.0 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 2024

Historical avgQ2 2024

-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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