NASDAQ$CMBMF

Cambium Networks Corporation · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Reported record revenues with strong demand for wireless broadband connectivity.

Cambium Networks reported record revenues of $73.0 million for Q3 2020, an 11% increase year-over-year, and record net income of $5.6 million, or $0.21 per diluted share. The company saw strong demand across its technology portfolio, driven by the need for fixed wireless broadband infrastructure and technology upgrades.

  • Record revenues of $73.0 million, up 17% sequentially and 11% year-over-year.
  • Record GAAP net income of $5.6 million or $0.21 per diluted share, record non-GAAP net income of $7.8 million or $0.29 per diluted share.
  • Adjusted EBITDA of $11.4 million or 15.6% of revenues.
  • Net cash provided by operating activities $16.4 million.

Headline financials

Total Revenue

$73M

Previous: $65.7M+11.1%
EPS (adj)

$0.29

Previous: $0.15+93.3%
Adjusted EBITDA Margin

15.6%

Previous: 10.3%+51.5%
Capital Expenditures

-$2.43M

Previous: -$2.54M+4.1%
Free Cash Flow

$3.16M

Previous: -$575K+650.1%
Net Income

$5.6M

Previous: $1.96M+185.5%
Operating Income

$7.32M

Previous: $4.13M+77.2%
Gross Profit

$36.1M

Previous: $31.8M+13.3%
Cash & Equivalents

$50.1M

Previous: $19M+164.5%
Total Assets

$184M

Previous: $177M+4.0%
Stock-Based Comp

$954K

Previous: $1.51M-36.7%

Revenue & EPS history

Cambium Networks · Revenue · Quarterly

$73M

Q3 2020+11.1%vs Q3 2019
Beat estimate in 8 of 10 quarters(80%)
ActualEstimate

Revenue by segment

Cambium Networks · $73M total across 4 segments · Q3 2020

  • Point-to-Multi-Point
    $43.3M+11.5%
  • Point-to-Point
    $18M+12.5%
  • Enterprise
    $9.95M-1.9%
  • Other
    $1.71M+134.7%

Forward guidance

Cambium Networks expects revenues between $74.0-$78.0 million for the fourth quarter ending December 31, 2020.

Tailwinds

  • Revenues between $74.0-$78.0 million
  • GAAP gross margin between 48.9%-50.0%; and non-GAAP gross margin between 49.2%-50.2%
  • GAAP operating income between $7.3-$9.1 million; and non-GAAP operating income between $9.3-$11.0 million
  • GAAP net income between $5.0-$6.1 million or between $0.18 and $0.22 per diluted share; and non-GAAP net income between $6.5-$7.6 million or between $0.24 and $0.28 per diluted share
  • Adjusted EBITDA between $10.3-$11.9 million; and adjusted EBITDA margin between 13.9%-15.3%

Headwinds

  • Interest expense, net of approximately $1.4 million
  • GAAP taxes between 16.0%-19.0%; and a non-GAAP effective tax rate of approximately 17.0%-19.0%
  • Approximately 27.6 million weighted average diluted shares outstanding
  • Paydown of debt: $2.5 million
  • Cash flow interest expense: approximately $0.9 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 Q3 2020

Historical avgQ3 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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