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Ambarella Inc. (AMBA) has submitted its 10-Q filing for the quarterly period ended October 31, 2024.
The filing reports revenue of $82.7 million for the third quarter of 2024, a 63.4% increase from the $50.6 million reported in the same quarter of the previous year. The increase is attributed to higher product unit shipments and increased sales of AI inference processors, which contributed to a higher average selling price.
Gross margin for the quarter was 60.6%, slightly up from 59.3% in the previous year. This increase was primarily due to favorable product mix and higher margin nonrecurring engineering project service revenue.
Research and development expenses rose to $58.4 million from $53.7 million, driven by additional engineering-related expenses and increased headcount to support AI technology development.
Selling, general, and administrative expenses decreased to $17.2 million from $18.2 million, primarily due to lower personnel costs resulting from reduced headcount.
Net loss for the quarter was $24.1 million, compared to a net loss of $41.7 million in the previous year. The decrease in net loss was due to higher revenue and improved gross margin, partially offset by increased operating expenses.
Cash provided by operating activities was $8.4 million for the nine months ended October 31, 2024, compared to $23.1 million in the same period of the previous year, primarily due to lower net cash flow from working capital.
Ambarella's cash, cash equivalents, and marketable debt securities totaled approximately $226.5 million as of October 31, 2024.
The company continues to focus on developing AI and computer vision technologies, with a significant portion of its revenue derived from the IoT and automotive markets.
Ambarella identified a material weakness in its internal control over financial reporting related to the accounting for income taxes, which it is actively working to remediate.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Ambarella Inc. quarterly 10-Q report dated December 6, 2024. To report an error, please email earnings@qz.com.