JapanArtificial Intelligence▲2
Ambarella Reports 13.2% Revenue Growth, Signs 7-Year Channel Deals
Ambarella reported fiscal second-quarter 2027 revenue of $108.1 million, up 13.2% from $95.5 million a year earlier, with record edge-AI revenue driven by growth in automotive and IoT markets and strong demand for its 5-nanometer CV75 and CV72 systems-on-chip. However, GAAP gross margin declined to 57.7% from 58.9%, and non-GAAP gross margin fell to 59.3% from 60.5%, while company-defined non-GAAP net income rose to $8.2 million from $6.4 million, aided by a $9.0 million project-termination credit. The company also signed seven-year agreements with distributor Macnica and engineering firm Capgemini to expand its indirect sales channel, and introduced its first stand-alone AI accelerator, the X7. Third-quarter guidance calls for revenue of $115 million to $124 million and non-GAAP gross margin of 59.0% to 60.0%, suggesting potential stabilization. Despite the growth, Ambarella recorded a GAAP operating loss of $8.1 million and a net loss of $6.7 million, with stock-based compensation of $22.7 million exceeding non-GAAP net income, and the company holds $272.3 million in cash and marketable securities.