Ambarella, Inc. (NASDAQ: AMBA) has reported its financial results for the third quarter of fiscal year 2025, with revenue reaching $82.7 million, representing a significant increase of 63% from the same period in fiscal 2024, when revenue was $50.6 million. For the nine months ended October 31, 2024, revenue was $200.9 million, up 15% from $174.9 million for the nine months ended October 31, 2023.
The gross margin under U.S. Generally Accepted Accounting Principles (GAAP) for the third quarter of fiscal 2025 was 60.6%, compared with 59.3% for the same period in fiscal 2024. The non-GAAP gross margin for the third quarter of fiscal 2025 was 62.6%, remaining unchanged from the same period in fiscal 2024.
On a GAAP basis, the net loss for the third quarter of fiscal 2025 was $24.1 million, or a loss per diluted ordinary share of $0.58, compared with a net loss of $41.7 million, or a loss per diluted ordinary share of $1.04, for the same period in fiscal 2024. However, on a non-GAAP basis, the net income for the third quarter of fiscal 2025 was $4.5 million, or earnings per diluted ordinary share of $0.11, marking a significant improvement from the non-GAAP net loss of $11.2 million, or a loss per diluted ordinary share of $0.28, for the same period in fiscal 2024.
Looking ahead, Ambarella provided guidance for the fourth quarter of fiscal year 2025, ending January 31, 2025, with expected revenue to be between $76.0 million and $80.0 million and non-GAAP gross margin to be between 61.5% and 63.0%. The company also expects operating expenses on a non-GAAP basis to be between $49.0 million and $52.0 million.
The company's total cash, cash equivalents, and marketable debt securities on hand at the end of the third quarter of fiscal 2025 was $226.5 million, compared with $219.8 million at the end of the prior quarter and $222.3 million at the end of the same quarter a year ago.
Fermi Wang, President and CEO of Ambarella, expressed optimism about the company's performance, highlighting that "company specific factors are more than offsetting broad market weakness," and reported a 30% sequential revenue growth in fiscal Q3, above the high-end of the guidance range. Furthermore, he emphasized the strength led by customers' new products, especially those incorporating higher priced AI inference processors.
The full release is available on Ambarella's website for further details and information.
Ambarella's products are used in various human vision and edge AI applications, including video security, advanced driver assistance systems (ADAS), electronic mirror, drive recorder, driver/cabin monitoring, autonomous driving, and robotics applications. Their low-power systems-on-chip (SoCs) offer high-resolution video compression, advanced image and radar processing, and powerful deep neural network processing to enable intelligent perception, fusion, and planning.
The company plans to hold a conference call to discuss the third quarter of fiscal year 2025 results. As a result of these announcements, the company's shares have moved 7.5% on the market, and are now trading at a price of $73.55. For more information, read the company's full 8-K submission here.
