Ambarella(AMBA)2022-12-02 01:39Financial Data and Key Metrics Changes - Revenue for fiscal Q3 was 9.5 million or 2.3 billion, a 28% increase from 800 million in new business [7] - IoT and Auto product revenue increased sequentially, although customer inventory reduction actions led to sub-seasonal revenue results [19] Market Data and Key Metrics Changes - The automotive segment's six-year revenue funnel is significantly larger than the current business, indicating potential for future growth [7] - The company expects to ship about 2 million units of CV2 family SoCs in Q4, with a positive outlook for CV2 family [16] Company Strategy and Development Direction - The company is focusing on edge AI endpoint investments, with a strong emphasis on automotive and IoT markets [6] - Ambarella aims to leverage its leadership position in the AI endpoint market and continue investing in R&D to capitalize on market opportunities [18] Management's Comments on Operating Environment and Future Outlook - Management acknowledged material headwinds from an industry-wide semiconductor cyclical downturn but maintained a favorable long-term growth outlook [6] - The company anticipates a flat revenue outlook for Q4, with expectations of improved component availability in the next fiscal year [22] Other Important Information - The company announced a partnership with Continental AG for integrating its CV3 SoCs into ADAS products, marking a significant milestone [6][8] - Ambarella is strengthening its ecosystem of design and development partners to expand its customer base [15] Q&A Session Summary Question: Details on the Continental deal and its impact on the automotive funnel - Management indicated that the Continental relationship is expected to contribute to the automotive funnel but its impact will be more visible in future forecasts [31] Question: Clarification on normal seasonality for fiscal Q1 - Management noted that the typical decrease for Q1 is around 4%, but they expect a greater decline due to macroeconomic concerns and inventory reductions [32] Question: Contribution of interior versus ADAS to the automotive funnel - Management explained that interior design wins have shorter development cycles compared to ADAS, and they aim to increase market share in both areas [35] Question: Timeline for revenue contribution from the Continental partnership - Management stated that design wins typically take three to four years to translate into revenue [38] Question: Revenue split between IoT and automotive segments - The revenue split for the reported quarter was approximately 75% IoT and 25% automotive, with expectations for the automotive percentage to increase in the future [72]