NASDAQ$CMBMF

Cambium Networks Corporation · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Reported an increase in revenues and solid profitability, driven by growth in North America and Point-to-Point business.

Cambium Networks reported Q4 2022 financial results with revenues of $84.5 million, a 7% increase year-over-year. The company's GAAP net income was $10.0 million, or $0.35 per diluted share, and non-GAAP net income was $10.3 million, or $0.36 per diluted share. The company expects to grow revenues and increase profitability in 2023.

  • Revenues of $84.5 million, increased 4% sequentially, and 7% year-over-year
  • North America revenues of $44.4 million, grew 47% sequentially, and increased 33% year-over-year
  • Gross margin of 49.0%, non-GAAP gross margin of 49.6%
  • Operating income of $9.5 million, non-GAAP operating income of $13.2 million

Headline financials

Total Revenue

$84.5M

Previous: $78.7M+7.4%
EPS (adj)

$0.36

Previous: $0.16+125.0%
Adjusted EBITDA Margin

16.9%

No prior period
Capital Expenditures

$1.33M

Previous: $2.06M-35.4%
Free Cash Flow

$2.69M

Previous: $3.5M-23.1%
Net Income

$10M

Previous: $1.4M+614.3%
Operating Income

$9.5M

Previous: $2.9M+227.6%
Gross Profit

$41.4M

Previous: $34.5M+19.9%
Cash & Equivalents

$48.2M

Previous: $59.3M-18.8%
Total Assets

$269M

Previous: $232M+16.0%
Stock-Based Comp

$2.9M

Previous: $2.13M+35.7%

Revenue & EPS history

Cambium Networks · Revenue · Quarterly

$84.5M

Q4 2022+7.4%vs Q4 2021
Beat estimate in 3 of 12 quarters(25%)
ActualEstimate

Revenue by segment

Cambium Networks · $52.5M total across 3 segments · Q4 2022

  • Point-to-Multi-Point
    $29.7M-19.9%
  • Point-to-Point
    $21.3M+38.8%
  • Other
    $1.58M+170.6%

Forward guidance

For the first quarter of 2023, Cambium Networks expects revenues between $74.0-$80.0 million, GAAP gross margin between 48.5%-50.1%, and GAAP net income between $1.2-$4.0 million, or between $0.04 and $0.14 per diluted share.

Tailwinds

  • Revenues between $74.0-$80.0 million, up approximately 20%-29% year-over-year
  • GAAP gross margin between 48.5%-50.1%; and non-GAAP gross margin between 49.2%-50.8%
  • GAAP operating income between $2.0-$5.2 million; and non-GAAP operating income between $5.8-$9.0 million
  • GAAP net income between $1.2-$4.0 million or between $0.04 and $0.14 per diluted share; and non-GAAP net income between $4.1-$6.8 million or between $0.14 and $0.23 per diluted share
  • Adjusted EBITDA between $6.8-$10.0 million; and adjusted EBITDA margin between 9.2%-12.5%

Headwinds

  • GAAP operating expenses between $33.9-$34.9 million; and non-GAAP operating expenses between $30.6-$31.6 million
  • Interest expense, net of approximately $0.6 million
  • GAAP effective tax rate of approximately 11.0%-15.0%; and non-GAAP effective tax rate of approximately 17.0%-21.0%
  • Approximately 28.9 million weighted average diluted shares outstanding
  • Capital expenditures: $3.0-$4.0 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 2022

Historical avgQ4 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

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro