Ambarella (AMBA) Q1 2027 earnings summary

Executive summary

• Q1 FY27 revenue reached $100.4M, up 16.9% year-over-year, slightly above guidance midpoint.

• Automotive segment set a new revenue record, driven by rapid AI adoption in commercial vehicles.

• Announced two major long-term agreements, including an $800M+ deal with Hanwha, expanding into automation, robotics, and life sciences.

• Expanded indirect sales channel, onboarding six U.S.-based ISVs and targeting growth in Japan and Europe.

• Edge AI platform leadership extended, with strong demand signals and new high-ASP products targeting advanced workloads.

Financial highlights

• Q1 revenue: $100.4M, up 16.9% year-over-year, down 0.5% sequentially.

• Non-GAAP gross margin: 59.9%, slightly above guidance midpoint; GAAP gross margin: 58.4%.

• Non-GAAP net profit: $5M, or $0.11 per diluted share; GAAP net loss narrowed to $18.1M.

• Cash and marketable securities: $277.8M, down sequentially, up year-over-year.

• Repurchased 47,798 shares for $2.4M; new $50M repurchase program authorized through June 2027.

Outlook and guidance

• Q2 FY27 revenue guidance: $105M–$111M, midpoint $108M.

• Both auto and IoT revenues expected to increase sequentially.

• Q2 non-GAAP gross margin guidance: 59%–60.5%.

• Non-GAAP OpEx for Q2: $56M–$59M.

• Full-year revenue growth expected at 10%–15%.