UI
Ubiquiti INC
NYSE
8-K: Ubiquiti Inc. Reports Second Quarter Fiscal 2024 Results: Revenue Declines, EPS Down
Sentiment:
Quarterly Report
9 February 2024 7:05 AM
Ubiquiti Inc. announced its second quarter fiscal 2024 financial results, showing a decrease in revenue and earnings per share compared to the same period last year.
Worse than expected
The company's revenue decreased by 5.8% compared to the same quarter last year.
The company's GAAP net income decreased by 26.8% compared to the same quarter last year.
The company's gross profit margin decreased to 38.2% compared to 40.0% in the same quarter last year.
Summary
- Ubiquiti Inc. reported a revenue of $465.0 million for the second quarter of fiscal year 2024, which is a 0.4% increase from the previous quarter but a 5.8% decrease compared to the same quarter last year.
- The company's GAAP diluted earnings per share (EPS) was $1.36, and non-GAAP diluted EPS was $1.38.
- Gross profit was $177.6 million, with a gross margin of 38.2%, which is down from both the previous quarter and the same quarter last year.
- The company's board of directors declared a cash dividend of $0.60 per share, payable on February 26, 2024, to shareholders of record on February 20, 2024.
- Research and development expenses increased to $36.9 million, and sales, general, and administrative expenses rose to $19.6 million.
- Net income decreased by 26.8% compared to the same quarter last year, primarily due to lower revenues and higher operating expenses.
Sentiment
Score: 4
Explanation: The sentiment is negative due to the year-over-year decline in revenue, gross margin, and net income. While there are some positives, the overall financial performance is weaker than the previous year.
Positives
- Revenues saw a slight increase of 0.4% compared to the previous quarter.
- The company declared a cash dividend of $0.60 per share.
- Research and development expenses increased, which could indicate future product development.
Negatives
- Revenues decreased by 5.8% compared to the same quarter last year.
- Gross profit margin decreased to 38.2%, down from 40.0% in the same quarter last year.
- GAAP net income decreased by 26.8% compared to the same quarter last year.
- Both Enterprise and Service Provider Technology revenues declined year-over-year.
Risks
- The company faces risks related to public health issues, U.S. tariffs, and fluctuations in operating results.
- Demand for products is subject to the financial condition of distributors and their customers.
- Political and economic conditions, counterfeiting, and reliance on a limited number of distributors pose risks.
- The company is dependent on chipset suppliers and faces competition in new markets.
- Warranty claims, product liability, and recalls are potential risks.
- The company is subject to U.S. export control and economic sanctions laws.
- Adverse tax-related matters and intellectual property litigation are potential risks.
Future Outlook
The company's future performance is subject to various risks and uncertainties, including market conditions, competition, and global economic factors. The company intends to pay quarterly cash dividends, but this is subject to change.
Management Comments
- Management believes that the presentation of non-GAAP net income and non-GAAP earnings per diluted share provides important supplemental information regarding non-cash expenses.
- Management uses non-GAAP net income and non-GAAP earnings per diluted share when evaluating operating performance because it believes that the exclusion of certain items facilitates comparability of the company's operating performance from period to period.
Industry Context
Ubiquiti operates in the competitive networking technology sector, facing challenges from established players and new entrants. The results reflect broader trends in the tech industry, including supply chain issues and fluctuating demand.
Comparison to Industry Standards
- Ubiquiti's revenue decline of 5.8% year-over-year contrasts with some competitors who have shown growth in the same period, such as Cisco and Juniper Networks, although direct comparisons are difficult due to different product mixes and market segments.
- The gross margin of 38.2% is lower than some industry leaders, such as Arista Networks, which often report gross margins above 60%, indicating potential pricing or cost pressures for Ubiquiti.
- Ubiquiti's focus on democratizing network technology and its unique software platforms (UISP and UniFi) differentiate it from some competitors, but also expose it to specific risks related to its chosen market segments.
Stakeholder Impact
- Shareholders will receive a cash dividend of $0.60 per share.
- Employees may be impacted by changes in operating expenses and R&D spending.
- Customers may be affected by product mix and pricing changes.
- Suppliers and distributors may be impacted by changes in demand and inventory management.
Next Steps
- The company will pay a cash dividend on February 26, 2024.
- The company will continue to monitor market conditions and manage risks.
Key Dates
- February 9, 2024: Date of the press release announcing the financial results for the second quarter ended December 31, 2023.
- February 20, 2024: Record date for the declared cash dividend.
- February 26, 2024: Payment date for the declared cash dividend.
Keywords
Ubiquiti, Financial Results, Revenue, Earnings Per Share, EPS, Gross Margin, Dividend, Networking Technology, Enterprise Technology, Service Provider Technology
UI
Ubiquiti INC
NYSE
Sector: TBD
Filings with Classifications
Better than expected
9 May 2025 7:07 AM
Quarterly Report
- The company reported record revenues of $664.2 million.
- The company reported record GAAP diluted EPS of $2.98.
- The company reported a significant increase in gross profit margin to 44.5%.
Better than expected
9 May 2025 6:58 AM
Quarterly Report
- Revenue growth significantly exceeded expectations due to strong performance in the Enterprise Technology segment.
- Net income and earnings per share surpassed previous forecasts.
- Gross profit margin improved more than anticipated.
Better than expected
7 February 2025 7:06 AM
Earnings Release
- The company reported record revenues of $599.9 million, a 29.0% increase year-over-year.
- GAAP diluted EPS increased to $2.26, a 66.2% increase from the prior year.
Better than expected
7 February 2025 7:00 AM
Quarterly Report
- The company's revenue growth of 29% exceeded expectations.
- The company's net income growth of 66% exceeded expectations.
- The company's gross profit margin improvement exceeded expectations.
Better than expected
8 November 2024 7:15 AM
Quarterly Report
- The company's revenue, EPS, and gross margin all exceeded the prior quarter and prior year results, indicating better than expected performance.
Better than expected
8 November 2024 7:05 AM
Quarterly Report
- The company's revenue and net income significantly exceeded the prior year's results.
- The gross profit margin improved, indicating better cost management and pricing.
- The company made significant debt repayments, improving its financial position.
Worse than expected
23 August 2024 7:01 AM
Annual Results
- Net income decreased by approximately 14% year-over-year, indicating a decline in profitability.
- Gross profit margin decreased due to higher inventory and warehouse costs.
Worse than expected
10 May 2024 7:03 AM
Quarterly Report
- The company's GAAP and non-GAAP earnings per share decreased by over 22% year-over-year, indicating worse than expected profitability.
- The gross profit margin decreased significantly from 41.2% to 35.3%, suggesting a decline in operational efficiency and profitability.
Worse than expected
10 May 2024 6:58 AM
Quarterly Report
- The company's net income and gross profit margin decreased year-over-year, indicating worse than expected financial performance.
Worse than expected
9 February 2024 7:05 AM
Quarterly Report
- The company's revenue decreased by 5.8% compared to the same quarter last year.
- The company's GAAP net income decreased by 26.8% compared to the same quarter last year.
- The company's gross profit margin decreased to 38.2% compared to 40.0% in the same quarter last year.
Worse than expected
9 February 2024 6:57 AM
Quarterly Report
- The company's revenue decreased by 6% for both the three and six month periods ending December 31, 2023, compared to the same periods in 2022.
- Net income decreased to $82.1 million for the quarter and $169.9 million for the six month period, indicating a decline in profitability.
- The company's gross profit margin decreased to 38.2% for the quarter, down from 40% in the prior year.
Disclaimer: This summary was generated by artificial intelligence and its accuracy is not guaranteed. The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.