NASDAQ$CMBMF

Cambium Networks Corporation · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Reported revenues of $64.1 million, a 1% increase year-over-year, with a net loss of $1.0 million, or $0.04 per diluted share.

Cambium Networks reported a slight increase in revenue and a net loss for Q4 2019. Revenue grew by 1% year-over-year, driven by growth in enterprise Wi-Fi and Point-to-Point products, offset by lower Point-to-Multi-Point revenues. The company's GAAP net loss was $1.0 million, or $0.04 per diluted share, while non-GAAP net income was $2.3 million, or $0.09 per diluted share.

  • Revenues increased 1% year-over-year.
  • Enterprise Wi-Fi revenues increased 186% year-over-year.
  • GAAP gross margin was 52.0%, up 390 basis points from Q4 2018.
  • Non-GAAP net income was $2.3 million, or $0.09 per diluted share.

Headline financials

Total Revenue

$64.1M

Previous: $63.3M+1.2%
EPS (adj)

$0.09

Previous: -$0.00+8281.8%
Non-GAAP Gross Margin

52.4%

No prior period
Adjusted EBITDA Margin

8.2%

No prior period
Gross Margin

52.0%

No prior period
Capital Expenditures

$467K

Previous: $1.78M-73.7%
Free Cash Flow

$5.68M

Previous: -$7.43M+176.4%
Net Income

-$1M

Previous: $744K-234.4%
Operating Income

$1.9M

Previous: $2.82M-32.6%
Gross Profit

$33.3M

Previous: $30.5M+9.3%
Cash & Equivalents

$19.3M

No prior period
Total Assets

$172M

Previous: $142M+21.4%
Stock-Based Comp

$790K

No prior period

Revenue & EPS history

Cambium Networks · Revenue · Quarterly

$64.1M

Q4 2019+1.2%vs Q4 2018
Beat estimate in 8 of 10 quarters(80%)
ActualEstimate

Revenue by segment

Cambium Networks · $64.1M total across 4 segments · Q4 2019

  • Point-to-Multi-Point
    $33.2M-19.5%
  • Point-to-Point
    $18.2M+4.4%
  • Enterprise
    $11.5M+185.6%
  • Other
    $1.12M+92.6%

Forward guidance

For the first quarter ending March 31, 2020, Cambium Networks expects GAAP revenues between $56.0-$60.0 million.

Tailwinds

  • GAAP revenues between $56.0-$60.0 million
  • GAAP gross margin between 48.6%-50.2%; and non-GAAP gross margin between 49.0%-50.5%
  • GAAP operating (loss) income between ($1.5)-$0.5 million; and non-GAAP operating income between $0.0-$2.0 million
  • Adjusted EBITDA between $1.1-$3.1 million; and adjusted EBITDA margin between 2.0%-5.2%
  • GAAP taxes between 19.0%-21.0%; and a non-GAAP effective tax rate of approximately 17.0%-19.0%

Headwinds

  • GAAP net loss between $3.0-$1.4 million or between $0.12 and $0.05 per diluted share; and non-GAAP net (loss) income between ($1.2)-$0.4 million or between ($0.05) and $0.02 per diluted share
  • Paydown of debt: $2.5 million
  • Interest expense: approximately $1.1 million
  • Capital expenditures: $1.0-$1.3 million
  • Pre-tax restructuring charges: $0.8-$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 Q4 2019

Historical avgQ4 2019

-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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