Ambarella, Inc. (NASDAQ:AMBA) Q1 2025 Earnings Conference Call May 30, 2024 4:30 PM ET

Company Participants

Louis Gerhardy - Vice President of Corporate Development
Fermi Wang - Chief Executive Officer
John Young - Chief Financial Officer

Conference Call Participants

Christopher Rolland - Susquehanna
Joe Moore - Morgan Stanley
Kevin Cassidy - Rosenblatt Securities
Nick Doyle - Needham and Company
Jeremy Kwan - Stifel
David O 'Connor - BNP Paribas
Richard Shannon - Craig Hallium Capital
Kevin Garrigan - WestPark Capital

Operator

Thank you for standing by. Welcome to Ambarella’s First Quarter Fiscal Year 2025 Earnings Call. [Operator Instructions] As a reminder, today’s program is being recorded. And now I would like to introduce your host for today’s program Mr. Louis Gerhardy, Vice President, Corporate Development and Investor Relations. Please go ahead, sir.

Louis Gerhardy

Thank you, Jonathan, and good afternoon. Thank you for joining our first quarter fiscal 2025 financial results conference call. On the call with me today is Dr. Fermi Wang, President and CEO; and John Young, CFO. The primary purpose of today’s call is to provide you with information regarding the results for our first quarter and fiscal 2025.

The discussion today and the responses to your questions will contain forward-looking statements regarding our projected financial results, financial prospects, market growth and demand for our solutions, among other things. These statements are based on currently available information and subject to risks, uncertainties and assumptions. Should any of these risks or uncertainties materialize or should our assumptions prove to be incorrect, our actual results could differ materially from these forward-looking statements. We are under no obligation to update these statements. These risks, uncertainties and assumptions as well as other information on potential risk factors that could affect our financial results are more fully described in the documents, we filed with the SEC. Access to our first quarter fiscal 2025 results press release, transcripts, historical results, SEC filings and a replay of today’s call can be found on the Investor Relations page of our website. The content of today’s call, as well as the materials posted on our website are Ambarella’s property and cannot be reproduced or transcribed without our prior written consent. Fermi will now provide a business update for the quarter. And John will review the financial results and outlook, and we will be available for your questions after that. Fermi?

Fermi Wang

Thank you, Louis, and good afternoon. Thank you all for joining our call today. Our Q1 results were 1% above the midpoint of our guidance range, with revenue increasing 6% sequentially. As expected, both auto and IoT revenue increased sequentially, and the AI products were about two-thirds of our total revenue. As previously discussed, our customers are in the midst of recovering from a cyclical inventory correction, and the favorable impact from this is expected to carry into the second quarter. We continue to expect our fiscal ‘25 revenue to grow year-over-year, driven by both the cyclical tailwinds and the secular growth in our AI portfolio. The combination of this cyclical and the secular forces is expected to enable our AI inference revenue to grow more than 30% in fiscal 2025. Zooming out for a minute, the significant capacity being added to the AI training network infrastructure globally both help for the ultimate deployment of AI inference at edge where we participate in the market.