NASDAQ$CMBMF

Cambium Networks Corporation · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Cambium Networks reported a decrease in revenue and shifted to operating and net losses in Q3 2023.

Cambium Networks reported a challenging third quarter with a significant decrease in revenues, shifting from operating income to a substantial operating loss. The company faced headwinds including high channel inventories for Enterprise products, delayed government defense orders, and lower revenues in the Point-to-Multi-Point business.

  • Revenues decreased to $43.0 million, a 28% sequential decrease and a 47% year-over-year decrease.
  • GAAP net loss was $26.2 million, or a loss of $0.95 per diluted share; non-GAAP net loss was $12.1 million, or a loss of $0.44 per diluted share.
  • Adjusted EBITDA was a loss of $14.4 million, or -33.5% of revenues.
  • Net cash used in operating activities was $0.2 million.

Headline financials

Total Revenue

$43M

Previous: $81.2M-47.0%
EPS (adj)

-$0.44

Previous: $0.40-210.0%
Non-GAAP Gross Margin

27.7%

No prior period
Adjusted EBITDA Margin

-33.5%

Previous: 18.2%-284.1%
Gross Margin

25.5%

No prior period
Capital Expenditures

-$3.36M

Previous: -$3.24M-3.7%
Free Cash Flow

-$29.6M

Previous: $6.19M-577.3%
Net Income

-$26.2M

Previous: $9.44M-377.7%
Operating Income

-$22.1M

Previous: $9.96M-321.9%
Gross Profit

$11M

Previous: $41.2M-73.4%
Cash & Equivalents

$27.5M

Previous: $44.9M-38.6%
Total Assets

$246M

Previous: $247M-0.6%
R&D Expense

$13.2M

No prior period
Stock-Based Comp

$2.85M

Previous: $2.85M-0.1%

Revenue & EPS history

Cambium Networks · Revenue · Quarterly

$43M

Q3 2023-47%vs Q3 2022
Beat estimate in 3 of 12 quarters(25%)
ActualEstimate

Revenue by segment

Cambium Networks · $40.5M total across 3 segments · Q3 2023

  • Point-to-Multi-Point
    $23.6M-9.6%
  • Point-to-Point
    $15.8M+2.6%
  • Other
    $1.14M-16.7%

Forward guidance

For the fourth quarter ending December 31, 2023, Cambium Networks expects revenues between $45.0 and $50.0 million.

Tailwinds

  • Revenues between $45.0-$50.0 million
  • GAAP gross margin between 36.3%-43.3%
  • Non-GAAP gross margin between 38.0%-45.0%

Headwinds

  • GAAP operating expenses between $29.8-$30.8 million
  • Non-GAAP operating expenses between $25.7-$26.7 million
  • GAAP net loss between $8.0 -$11.5 million or a net loss between $0.29 and $0.41 per diluted share
  • Non-GAAP net loss between $4.0 -$7.5 million or a net loss between $0.14 and $0.27 per diluted share

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 2023

Historical avgQ3 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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