Ambarella Shares Slide Despite Earnings Beat as GAAP Loss Rattles Investors

Investors zeroed in on a quarterly GAAP loss, overshadowing record edge-AI revenue.

Overview

Fiscal Q3 revenue rose 31% to $106.5 million with non-GAAP EPS of $0.27, topping estimates for $104.1 million and $0.21.
Ambarella posted a GAAP net loss of $0.35 per share for the quarter.
Shares fell about 14.4% by 10 a.m. ET Wednesday following the report.
Management guided fiscal Q4 revenue to $97 million–$103 million, above Wall Street’s roughly $95.6 million view.
CEO Fermi Wang cited record quarterly sales and a sixth straight record for edge‑AI revenue, as commentary highlighted a rich valuation with price-to-free-cash-flow near 58.