NASDAQ$CMBMF

Cambium Networks Corporation · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Reported strong results with higher than anticipated revenues, increased gross margin, and solid profitability.

Cambium Networks reported Q3 2022 financial results with revenues of $81.2 million, a 7% increase year-over-year. The company's GAAP net income was $9.4 million, or $0.34 per diluted share, while non-GAAP net income was $11.3 million, or $0.40 per diluted share. Adjusted EBITDA was $14.7 million, representing 18.2% of revenues.

  • Revenues of $81.2 million, increased 17% sequentially, and 7% year-over-year
  • Record Enterprise (Wi-Fi) revenues of $38.3 million, increased 60% sequentially and 257% year-over-year
  • GAAP net income of $9.4 million or $0.34 per diluted share, non-GAAP net income of $11.3 million or $0.40 per diluted share, compared to GAAP net income of $4.6 million or $0.16 per diluted share, and non-GAAP net income of $6.7 million or $0.23 per diluted share for the third quarter 2021.
  • Adjusted EBITDA of $14.7 million or 18.2% of revenues, compared to $9.6 million or 12.6% of revenues for the third quarter 2021.

Headline financials

Total Revenue

$81.2M

Previous: $75.9M+7.0%
EPS (adj)

$0.40

Previous: $0.23+73.9%
Adjusted EBITDA Margin

18.2%

Previous: 12.6%+44.4%
Capital Expenditures

-$3.24M

Previous: -$4.2M+22.8%
Free Cash Flow

$6.19M

Previous: $420K+1374.5%
Net Income

$9.44M

Previous: $4.62M+104.4%
Operating Income

$9.96M

Previous: $5.81M+71.4%
Gross Profit

$41.2M

Previous: $36M+14.3%
Cash & Equivalents

$44.9M

Previous: $58.6M-23.4%
Total Assets

$247M

Previous: $219M+13.0%
Stock-Based Comp

$2.85M

Previous: $2.08M+37.2%

Revenue & EPS history

Cambium Networks · Revenue · Quarterly

$81.2M

Q3 2022+7%vs Q3 2021
Beat estimate in 3 of 12 quarters(25%)
ActualEstimate

Revenue by segment

Cambium Networks · $42.9M total across 3 segments · Q3 2022

  • Point-to-Multi-Point
    $26.1M-48.0%
  • Point-to-Point
    $15.4M+10.9%
  • Other
    $1.37M+19.0%

Forward guidance

For the fourth quarter ending December 31, 2022, Cambium Networks expects revenues between $80.0-$84.0 million, GAAP operating income between $4.8-$6.5 million, and adjusted EBITDA between $9.5-$11.3 million.

Tailwinds

  • Revenues between $80.0-$84.0 million
  • GAAP gross margin between 48.1%-49.1%; and non-GAAP gross margin between 48.7%-49.7%
  • GAAP operating expenses between $33.7-$34.7 million; and non-GAAP operating expenses between $30.6-$31.6 million
  • GAAP operating income between $4.8-$6.5 million; and non-GAAP operating income between $8.4-$10.2 million
  • Adjusted EBITDA between $9.5-$11.3 million; and adjusted EBITDA margin between 11.9%-13.4%

Headwinds

  • GAAP effective tax rate of approximately 10.0%-12.0%; and non-GAAP effective tax rate of approximately 17.0%-20.0%
  • Approximately 28.5 million weighted average diluted shares outstanding
  • Paydown of debt: $0.7 million
  • Cash interest expense: approximately $0.4 million
  • Capital expenditures: $2.0-$2.2 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 2022

Historical avgQ3 2022

-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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