Ambarella (NASDAQ:AMBA) shares dropped more than 13% after-hours following the company’s reported Q1 results. While EPS of ($0.15) and revenue of $62.1 million (down 31% year-over-year) came in better than the consensus estimates of ($0.20) and $61.99M, respectively, the Q2 outlook missed expectations.
“The cyclical headwinds persist and continue to pressure our financial results, but we are taking our inference AI strategy to the next level with our R&D investment focused on the build-out of our CV3 platform as well as new derivatives of our 3rd generation AI technology,” said CEO Fermi Wang.
The company expects Q2/24 revenue in the range of $60-$64M, missing the consensus estimate of $67.17M. Non-GAAP gross margin is expected to be between 62.5% and 64.5%.