~ Record Revenues of $507.5 million
~
~ GAAP Diluted Earnings Per Share of $1.72
~
Ubiquiti Inc. (NYSE: UI) ("Ubiquiti" or the "Company") today
announced its financial results for the fourth quarter and full
year fiscal 2024, ended June 30, 2024.
Fourth Quarter Fiscal 2024 Financial
Summary
- Revenues of $507.5 million
- GAAP diluted EPS of $1.72
- Non-GAAP diluted EPS of $1.74
Full Fiscal 2024 Financial
Summary
- Revenues of $1.9 billion
- GAAP diluted EPS of $5.79
- Non-GAAP diluted EPS of $5.87
Additional Financial
Highlight
- The Company's Board of Directors (the "Board") declared a $0.60
per share cash dividend payable on September 9, 2024 to
shareholders of record at the close of business on September 3,
2024.
- The Company intends to pay regular quarterly cash dividends of
at least $0.60 per share during each quarter of fiscal year 2024,
although all subsequent dividends, and the establishment of record
and payment dates, are subject to final determination by the Board
each quarter after its review of the Company’s financial
performance and results of operations, available cash and cash
flow, capital requirements, applicable corporate legal
requirements, and other factors.
Financial Highlights ($, in millions,
except per share data)
Income statement highlights
F4Q24
F3Q24
F4Q23
Revenues
507.5
493.0
491.1
Enterprise Technology
431.7
414.3
404.1
Service Provider Technology
75.7
78.7
87.0
Gross profit
204.1
174.1
203.3
Gross Profit (%)
40.2%
35.3%
41.4%
Total Operating Expenses
65.8
62.9
59.5
Income from Operations
138.4
111.2
143.9
GAAP Net Income
103.8
76.3
103.7
GAAP EPS (diluted)
1.72
1.26
1.72
Non-GAAP Net Income
105.1
77.6
104.7
Non-GAAP EPS (diluted)
1.74
1.28
1.73
Ubiquiti Inc.
Revenues by Product Type
(In thousands)
(Unaudited)
Three Months Ended June
30,
Twelve Months Ended June
30,
2024
2023
2024(1)
2023(1)
Enterprise Technology
$
431,733
$
404,148
$
1,617,665
$
1,621,426
Service Provider Technology
75,728
86,937
310,825
319,086
Total revenues
$
507,461
$
491,085
$
1,928,490
$
1,940,512
Ubiquiti Inc.
Revenues by Geographical Area
(In thousands)
(Unaudited)
Three Months Ended June
30,
Twelve Months Ended June
30,
2024
2023
2024(1)
2023(1)
North America
$
253,274
$
238,323
$
946,428
$
922,230
Europe, the Middle East and Africa
194,102
190,904
740,113
759,405
Asia Pacific
32,087
32,343
127,901
148,502
South America
27,998
29,515
114,048
110,375
Total revenues
$
507,461
$
491,085
$
1,928,490
$
1,940,512
(1)
Derived from audited consolidated
statements as of and for the year ended June 30, 2024 and 2023,
respectively.
Income Statement Items
Revenues
Revenues for the fourth quarter fiscal 2024 were $507.5 million,
representing an increase from the prior quarter of 2.9% and an
increase from the comparable prior year period of 3.3%. On a full
year basis, revenues for fiscal 2024 were $1.9 billion,
representing a 0.6% decrease compared to full year fiscal 2023.
The growth in revenues over the prior quarter and the comparable
prior year period were both driven by increases in revenue from our
Enterprise Technology platform. Revenues from the Service Provider
Technology platform decreased when compared to the prior quarter as
well as the comparable prior year period.
The decrease in revenue for full fiscal 2024 compared to full
fiscal 2023 was driven by a decrease in revenue from both our
Enterprise Technology platform and our Service Provider Technology
platform.
Gross Margins
During the fourth quarter fiscal 2024, GAAP gross profit was
$204.1 million. GAAP gross margin of 40.2% increased by 4.9% as
compared to the prior quarter GAAP gross margin of 35.3% and
decreased by 1.2% as compared to the comparable prior year period
GAAP gross margin of 41.4%. On a full year basis, fiscal 2024 GAAP
gross profit was $739.8 million. Fiscal 2024 GAAP gross margin of
38.4% decreased by 0.8% as compared to fiscal 2023 GAAP gross
margin of 39.2%.
The increase in gross profit margin as compared to the prior
quarter was primarily driven by lower excess and obsolete inventory
charges, favorable product mix and lower tariffs, offset in part by
higher shipping costs. The decrease in gross profit margin as
compared to the comparable prior year period was primarily driven
by higher shipping costs and higher excess and obsolete inventory
charges, partially offset by favorable product mix and lower
tariffs. The decline in gross profit margin for full fiscal 2024 as
compared to full fiscal 2023 was primarily driven by incremental
excess and obsolete inventory charges and warehouse-related
operating expenses, partially offset by lower shipping costs and
lower tariffs.
Research and Development
During the fourth quarter fiscal 2024, research and development
("R&D") expenses were $44.1 million. This reflects an increase
as compared to the R&D expenses of $42.5 million in the prior
quarter and R&D expenses of $40.5 million in the comparable
prior year period. On a full year basis, fiscal 2024 R&D
expenses were $159.8 million, representing an increase of $14.6
million as compared to R&D expenses of $145.2 million for
fiscal 2023.
The increase in R&D expenses as compared to the prior
quarter was primarily due to increased prototype-related expenses,
partially offset by lower employee-related expenses. The increase
in R&D expenses as compared to the comparable prior year period
was primarily driven by higher prototype-related expenses and
employee-related expenses. The increase in R&D expenses for
fiscal 2024 compared to fiscal 2023 was primarily driven by higher
prototype-related expenses and employee-related expenses.
Sales, General and Administrative
The Company’s sales, general and administrative ("SG&A")
expenses for the fourth quarter fiscal 2024 were $21.7 million.
This reflects an increase as compared to the SG&A expenses of
$20.4 million in the prior quarter and an increase compared to the
SG&A expenses of $18.9 million in the comparable prior year
period. On a full year basis, fiscal 2024 SG&A expenses were
$81.0 million, reflecting an increase of $10.0 million as compared
to SG&A expenses of $71.0 million for fiscal 2023.
The increase in SG&A costs as compared to the prior quarter
was primarily due to higher fees associated with webstore credit
card processing, marketing expenses and professional fees, offset
in part by lower travel expenses. The increase in SG&A costs as
compared to the comparable prior year period was primarily due to
higher fees associated with webstore credit card processing,
marketing expenses and professional fees. The increase in SG&A
expenses for fiscal 2024 compared to fiscal 2023 was primarily
driven by higher fees associated with webstore credit card
processing, marketing expenses, employee-related expenses and
professional fees.
Interest Expense and Other, net
During the fourth quarter fiscal 2024, Interest expense and
other, net ("I&O") expenses were $16.8 million. This reflects a
decrease as compared to the I&O expenses in both the prior
quarter and the comparable prior year period of $18.9 million and
$19.8 million, respectively. On a full year basis, fiscal 2024
I&O expenses were $75.2 million, reflecting an increase of
$16.9 million as compared to the I&O expenses of $58.2 million
for fiscal 2023.
The decrease in I&O expenses as compared to the prior
quarter and comparable prior year period was primarily due to lower
interest expense due to decrease in borrowings, offset in part by
increase in foreign exchange losses. The increase in I&O
expense for fiscal 2024 as compared to fiscal 2023 was primarily
driven by higher interest expense due to increased levels of
average debt outstanding and higher interest rates.
Net Income and Earnings Per Share
During the fourth quarter fiscal 2024, GAAP net income was
$103.8 million and non-GAAP net income was $105.1 million. This
reflects an increase in GAAP net income and non-GAAP net income
from the comparable prior year period by 0.1% and 0.3%,
respectively, primarily driven by higher revenues and higher gross
profit. Fourth quarter fiscal 2024 GAAP earnings per diluted share
was $1.72, consistent with the results achieved in the comparable
prior year period, and non-GAAP earnings per diluted share was
$1.74, reflecting an increase of 0.6% when compared to the
comparable prior year period.
About Ubiquiti Inc.
Ubiquiti Inc. is focused on democratizing network technology on
a global scale — creating networking infrastructure in over 200
countries and territories around the world. Our professional
networking products are powered by our UISP and UniFi software
platforms to provide high-capacity distributed Internet access and
unified information technology management, respectively.
Ubiquiti and the U logo are trademarks or registered trademarks
of Ubiquiti and/or its affiliates in the United States and other
countries. For more information, please visit www.ui.com.
Safe Harbor for Forward Looking
Statements
Certain statements in this press release are forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. Statements other than statements of historical
fact including words such as "look", "will", "anticipate",
"believe", "estimate", "expect", "forecast", "consider" and "plan"
and statements in the future tense are forward looking statements.
The statements in this press release that could be deemed
forward-looking statements include the statement regarding our
intention to pay quarterly cash dividends, any statements or
assumptions underlying the foregoing, and any statement regarding
future events and the future financial performance of Ubiquiti Inc.
that involves risks or uncertainties.
Forward-looking statements are subject to certain risks and
uncertainties that could cause our actual future results to differ
materially or cause a material adverse impact on our results.
Potential risks and uncertainties include, but are not limited to,
the impact of public health problems, such as COVID-19, and U.S.
tariffs on results; fluctuations in our operating results; varying
demand for our products due to the financial and operating
condition of our distributors and their customers, and our
distributors’ inventory management practices; political and
economic conditions and volatility affecting the stability of
business environments, economic growth, currency values, commodity
prices and other factors that may influence the ultimate demand for
our products in particular geographies or globally; impact of
counterfeiting and our ability to contain such impact; our reliance
on a limited number of distributors; inability of our contract
manufacturers and suppliers to meet our demand; our dependence on
chipset suppliers for chipsets without a short-term alternative; as
we move into new markets competition from certain of our current or
potential competitors who may be more established in such markets;
our ability to keep pace with technological and market
developments; success and timing of new product introductions by us
and the performance of our products generally; our ability to
effectively manage the significant increase in our transactional
sales volumes; we may become subject to warranty claims, product
liability and product recalls; that a substantial majority of our
sales are into countries outside the United States and we are
subject to numerous U.S. export control and economic sanctions
laws; costs related to responding to government inquiries related
to regulatory compliance; our reliance on certain key members of
our management team, including our founder and chief executive
officer, Robert J. Pera; adverse tax-related matters such as tax
audits, changes in our effective tax rate or new tax legislative
proposals; whether the final determination of our income tax
liability may be materially different from our income tax
provisions; the impact of any intellectual property litigation and
claims for indemnification; litigation related to U.S. securities
laws; and social, economic and political conditions in the United
States and abroad, including the impact of the military conflict
between Russia and Ukraine and the tension between China and
Taiwan. We discuss these risks in greater detail under the heading
"Risk Factors" and elsewhere in our Annual Report on Form 10-K for
the year ended June 30, 2024, and subsequent filings filed with the
U.S. Securities and Exchange Commission (the "SEC"), which are
available at the SEC’s website at www.sec.gov. Copies may also be
obtained by contacting the Ubiquiti Inc. Investor Relations
Department, by email at IR@ui.com or by visiting the Investor
Relations section of the Ubiquiti Inc. website,
https://ir.ui.com/.
Given these uncertainties, you should not place undue reliance
on these forward-looking statements. Also, forward-looking
statements represent our management’s beliefs and assumptions only
as of the date made. Except as required by law, Ubiquiti Inc.
undertakes no obligation to update information contained herein.
You should review our SEC filings carefully and with the
understanding that our actual future results may be materially
different from what we expect.
Ubiquiti Inc.
Condensed Consolidated Statements of
Operations
and Comprehensive Income
(In thousands, except per share data)
(Unaudited)
Three Months Ended June
30,
Twelve Months Ended June
30,
2024
2023
2024(1)
2023(1)
Revenues
$
507,461
$
491,085
$
1,928,490
$
1,940,512
Cost of revenues
303,320
287,758
1,188,728
1,179,781
Gross profit
204,141
203,327
$
739,762
$
760,731
Operating expenses:
Research and development
44,076
40,539
159,768
145,172
Sales, general and administrative
21,695
18,913
80,997
70,993
Total operating expenses
65,771
59,452
240,765
216,165
Income from operations
138,370
143,875
498,997
544,566
Interest expense and other, net
16,813
19,803
75,169
58,224
Income before income taxes
121,557
124,072
423,828
486,342
Provision for income taxes
17,753
20,395
73,868
78,701
Net income
$
103,804
$
103,677
$
349,960
$
407,641
Net income per share of common stock:
Basic
$
1.72
$
1.72
$
5.79
$
6.75
Diluted
$
1.72
$
1.72
$
5.79
$
6.74
Weighted average shares used in computing
net income per share of common stock:
Basic
60,462
60,442
60,454
60,435
Diluted
60,466
60,449
60,458
60,451
(1)
Derived from audited consolidated
statements as of and for the year ended June 30, 2024 and 2023,
respectively.
Ubiquiti Inc.
Reconciliation of GAAP Net Income to
Non-GAAP Net Income
(In thousands, except per share
data)
(Unaudited)
Three Months Ended
Twelve Months Ended
June 30,
June 30, 2024
March 31, 2024
June 30, 2023
2024
2023
Net Income
$
103,804
$
76,290
$
103,677
$
349,960
$
407,641
Share-based compensation:
Cost of revenues
45
44
26
159
73
Research and development
1,264
1,272
1,017
4,831
3,541
Sales, general and administrative
378
348
297
1,368
1,120
Tax effect of Non-GAAP adjustments
(441
)
(399
)
(321
)
(1,560
)
(1,132
)
Non-GAAP net income
$
105,050
$
77,555
$
104,696
$
354,758
$
411,243
Non-GAAP diluted EPS
$
1.74
$
1.28
$
1.73
$
5.87
$
6.80
Shares outstanding (Diluted)
60,466
60,463
60,449
60,458
60,451
Weighted-average shares used in Non-GAAP
diluted EPS
60,466
60,463
60,449
60,458
60,451
Use of Non-GAAP Financial
Information
To supplement our condensed consolidated financial results
prepared under generally accepted accounting principles, or GAAP,
we use non-GAAP measures of net income and earnings per diluted
share that are adjusted to exclude certain costs, expenses and
gains such as share-based compensation expense, and the tax effects
of these non-GAAP adjustments.
Reconciliations of the adjustments to GAAP results for the
periods presented are provided above. In addition, an explanation
of the ways in which management uses non-GAAP financial information
to evaluate its business, the substance behind management’s
decision to use this non-GAAP financial information, material
limitations associated with the use of non-GAAP financial
information, the manner in which management compensates for those
limitations, and the substantive reasons management believes that
this non-GAAP financial information provides useful information to
investors is included under the paragraphs below.
Usefulness of Non-GAAP Financial
Information to Investors
We believe that the presentation of non-GAAP net income and
non-GAAP earnings per diluted share provides important supplemental
information regarding non-cash expenses, significant items that we
believe are important to understanding our financial, and business
trends relating to our financial condition and results of
operations. Non-GAAP net income and non-GAAP earnings per diluted
share are among the primary indicators used by management as a
basis for planning and forecasting future periods and by management
and our board of directors to determine whether our operating
performance has met specified targets and thresholds. Management
uses non-GAAP net income and non-GAAP earnings per diluted share
when evaluating operating performance because it believes that the
exclusion of the items described below, for which the amounts or
timing may vary significantly depending upon the Company’s
activities and other factors, facilitates comparability of the
Company’s operating performance from period to period. We have
chosen to provide this information to investors so they can analyze
our operating results in the same way that management does and use
this information in their assessment of our business and the
valuation of our Company.
About our Non-GAAP Net Income and
Non-GAAP Earnings per Diluted Share
We compute non-GAAP net income and non-GAAP earnings per diluted
share by adjusting GAAP net income and GAAP earnings per diluted
share to remove the impact of certain adjustments and the tax
effect of those adjustments. Items excluded from net income
are:
- Share-based compensation expense
- Tax effect of non-GAAP adjustments, applying the principles of
ASC 740
These non-GAAP measures are not in accordance with, or an
alternative to, GAAP and may be materially different from other
non-GAAP measures, including similarly titled non-GAAP measures
used by other companies. The presentation of this additional
information should not be considered in isolation from, as a
substitute for, or superior to, net income or earnings per diluted
share prepared in accordance with GAAP. Non-GAAP financial measures
have limitations in that they do not reflect certain items that may
have a material impact upon our reported financial results.
For more information on the non-GAAP adjustments, please see the
table captioned "Reconciliation of GAAP Net Income to non-GAAP Net
Income" included in this press release.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240822469512/en/
Investor Relations Ubiquiti
Inc. Investor Relations ir@ui.com Ph.1-646-780-7958
Ubiquiti (NYSE:UI)
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