NASDAQ$CMBMF

Cambium Networks Corporation · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Reported a decrease in revenue year-over-year, but an increase sequentially, driven by enterprise Wi-Fi growth amidst supply chain constraints.

Cambium Networks reported Q4 2021 financial results with revenues of $78.7 million, a decrease of 5% year-over-year. Despite revenue decline, the company saw strong growth in enterprise Wi-Fi revenues, which increased 136% year-over-year. The company is working through supply chain issues which they expect to substantially improve during the second half of calendar 2022.

  • Revenues decreased 5% year-over-year to $78.7 million.
  • Enterprise Wi-Fi revenues increased 136% year-over-year to $25.8 million.
  • GAAP net income was $1.4 million, or $0.05 per diluted share.
  • Adjusted EBITDA was $6.7 million, or 8.6% of revenues.

Headline financials

Total Revenue

$78.7M

Previous: $82.8M-4.9%
EPS (adj)

$0.16

Previous: $0.38-57.9%
Capital Expenditures

$2.06M

Previous: $975K+111.5%
Free Cash Flow

$3.5M

Previous: $15.1M-76.8%
Net Income

$1.4M

Previous: $10.5M-86.7%
Operating Income

$2.9M

Previous: $11.4M-74.7%
Gross Profit

$34.5M

Previous: $42.2M-18.3%
Cash & Equivalents

$59.3M

Previous: $62.5M-5.1%
Total Assets

$232M

Previous: $206M+12.9%
Stock-Based Comp

$2.13M

Previous: $731K+191.8%

Revenue & EPS history

Cambium Networks · Revenue · Quarterly

$78.7M

Q4 2021-4.9%vs Q4 2020
Beat estimate in 10 of 14 quarters(71%)
ActualEstimate

Revenue by segment

Cambium Networks · $78.7M total across 4 segments · Q4 2021

  • Point-to-Multi-Point
    $37M-31.2%
  • Enterprise
    $25.8M+136.1%
  • Point-to-Point
    $15.3M-8.5%
  • Other
    $585K-55.0%

Forward guidance

For the first quarter ending March 31, 2022, Cambium Networks expects revenues between $77.5-$81.5 million, GAAP operating income between $1.1-$3.1 million, and adjusted EBITDA between $5.2-$7.2 million.

Tailwinds

  • Revenues between $77.5-$81.5 million
  • GAAP gross margin between 44.0%-45.5%; and non-GAAP gross margin between 44.4%-45.9%
  • GAAP operating expenses between $33.0-$34.0 million; and non-GAAP operating expenses between $30.2-$31.2 million
  • GAAP operating income between $1.1-$3.1 million; and non-GAAP operating income between $4.2-$6.2 million
  • Adjusted EBITDA between $5.2-$7.2 million; and adjusted EBITDA margin between 6.7%-8.8%

Headwinds

  • Interest expense, net of approximately $0.7 million
  • GAAP net income between $0.3-$1.9 million or between $0.01 and $0.07 per diluted share; and non-GAAP net income between $2.9-$4.4 million or between $0.10 and $0.15 per diluted share
  • GAAP and non-GAAP effective tax rate of approximately 18.0%-20.0%
  • Approximately 28.3 million weighted average diluted shares outstanding
  • Capital expenditures: $1.6-$1.8 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 2021

Historical avgQ4 2021

-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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