NASDAQ$CMBMF

Cambium Networks Corporation · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Reported record revenues, increased demand for wireless broadband connectivity, and improved networking infrastructure.

Cambium Networks reported record revenues of $82.8 million for Q4 2020, a 29% increase year-over-year. Record net income was $10.5 million, or $0.38 per diluted share. The company benefited from investments in fixed wireless infrastructure technologies and increased demand due to work, learn, and play from home trends.

  • Record revenues of $82.8 million, up 29% year-over-year.
  • GAAP net income of $10.5 million or $0.38 per diluted share.
  • Adjusted EBITDA of $13.9 million or 16.8% of revenues.
  • Net cash provided by operating activities was $15.1 million.

Headline financials

Total Revenue

$82.8M

Previous: $64.1M+29.3%
EPS (adj)

$0.38

Previous: $0.09+322.2%
Adjusted EBITDA Margin

16.8%

Previous: 8.2%+104.9%
Gross Margin

51.0%

Previous: 52.0%-1.9%
Capital Expenditures

$975K

Previous: $467K+108.8%
Free Cash Flow

$15.1M

Previous: $5.68M+165.6%
Net Income

$10.5M

Previous: -$1M+1150.6%
Operating Income

$11.4M

Previous: $1.9M+502.4%
Gross Profit

$42.2M

Previous: $33.3M+26.9%
Cash & Equivalents

$62.5M

Previous: $19.3M+222.9%
Total Assets

$206M

Previous: $172M+19.3%
Stock-Based Comp

$731K

Previous: $790K-7.5%

Revenue & EPS history

Cambium Networks · Revenue · Quarterly

$82.8M

Q4 2020+29.3%vs Q4 2019
Beat estimate in 8 of 10 quarters(80%)
ActualEstimate

Revenue by segment

Cambium Networks · $82.8M total across 4 segments · Q4 2020

  • Point-to-Multi-Point
    $53.8M+61.9%
  • Point-to-Point
    $16.8M-7.8%
  • Enterprise
    $10.9M-5.2%
  • Other
    $1.3M+16.3%

Forward guidance

Cambium Networks provided financial outlook for the first quarter ending March 31, 2021.

Tailwinds

  • Revenues between $81.0-$85.0 million
  • GAAP gross margin between 49.3%-50.3%; and non-GAAP gross margin between 49.5%-50.5%
  • GAAP operating income between $9.7-$11.5 million; and non-GAAP operating income between $11.6-$13.4 million
  • GAAP net income between $8.1-$9.6 million or between $0.29 and $0.34 per diluted share; and non-GAAP net income between $8.4-$9.7 million or between $0.30 and $0.34 per diluted share
  • Adjusted EBITDA between $12.6-$14.5 million; and adjusted EBITDA margin between 15.6%-17.0%

Headwinds

  • Interest expense, net of approximately $1.4 million
  • GAAP taxes between 2.0%-5.0%; and a non-GAAP effective tax rate of approximately 17.0%-19.0%
  • Approximately 28.3 million weighted average diluted shares outstanding
  • Paydown of debt: $2.5 million
  • Capital expenditures: $3.2-$3.6 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 2020

Historical avgQ4 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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