Ambarella Shares Slip After Q1 Results, Guides Q2 Below Consensus

Ambarella Inc AMBA reported first-quarter revenue growth of 28.8% year-over-year to $90.31 million, beating the consensus of $90.05 million.
The gross margin expanded by 21 bps to 62.6%. The adjusted gross margin was 63.8%, compared with 62.9% in 1Q22.
The operating profit improved 24.4% Y/Y to $67.05 million, and the margin contracted 260 bps to 74.2%.
Adjusted EPS improved to $0.44 from $0.23 in 1Q22, beating the consensus of $0.36.
AMBA's total cash, cash equivalents, and marketable debt securities at the end of the quarter were $200.6 million.
"Our near-term outlook is under pressure with the flare-up of the pandemic in China and resulting lock-down, which is disrupting our orders and our customers' production, as well as logistics throughout the greater Asia supply-chain," stated Fermi Wang, President, and CEO. "We continue to expect our computer vision revenue to grow significantly to represent about 45% of F2023 revenue, with the richer mix anticipated to continue to drive our average selling price higher."
2Q23 Outlook: Ambarella expects Revenue of $78 million to $82 million vs. a consensus of $91.48 million. Adjusted gross margin of 63% and 64%.
It expects adjusted operating expenses of $42 million and $45 million.
Price Action: AMBA shares are trading lower by 6.72% at $79.49 during the post-market session on Tuesday.