Ambarella’s 2020 Financials and Dahua Design Wins Examined

Executive *******

***********'* ** ****** (*****) investor ****, *** ******* **** Hikvision *** ***** *** starting ** *** ** their ********* ********** *** returning ** ********* *** orders. ***** ** ********** started *** ********** ** CV **** ******* ** Q4. ******** ******* ********* to ** ~**% ** total *******, *** ********* expects ********** ** ** the "**** ********* ******" for *** ******* ** the ****** ****.

Dahua *** ********* "*********" $** ******* ********* **** *********

***** *** ********* *** "digesting" ******* ***** ********* chip *********, ***** **** open ** ************* *** them ** ****** ** Ambarella *** **** *****. In ***** **** ****, ********* ********* ***** and ********* *** ****** in $** ******* *** worth ** ********* ***** and ***** **** ******* them, ********* ** **** orders **** *** ***. However, *** ***** **** noted **** ********* ** now *********, *** *** two **** **** **** to ********* *** **** video *********:

********* *** ***** **** gradually ****** ***** ********* level *** **** **** to ***** **** ***** solutions. **'* * ******** surprise ** **.

Dahua *** ********* ******* ***** ** "*** *****" % ** ***** ********* *******

***** *** *********'* ******* at ********* *** ******** rebounded, ** **** *** trough ** ****, *** still **** **** *** 20% **** ** ****. Dahua *** *********'* ************* ** **** * mid-single-digit ********** ** *********'* total ********* ** **** *** stayed ** **** ************* **. *******, **** ******* rose ** "* *** teens" % ** *********'* total ******* ** **.

**** ******* *** **** this ******* ** "********** a ****** **** *** trend" **** *** **** 2 ***** ***** * fully ***** *. ***-***** supply ***** *** ******* to ****:

**'* ********** * ****** from *** ***** ** have **** ****** *** the **** * *****, right? ** **** ***** this *** ****** *****, China, ***-***** *** ****** chain *********, *** ** do *** **** *** trend *********. *******, *** Huawei ** ********* ********* helped ** ** ****** that ******* * ****** bit.

**** **** ********** *********'* "good ********" ** *****:

* ** ******* ** this ****-*** ** ******, when ********* ** *** there, **** ** *****, we **** * **** good ******** ** ******* solution ** *** *********. And ***** ** * great *******. ** ***** I ******** ** ***** about *** *** ****** chain *********** ** *****, I ** *** **** because ** *** ************** technology, ** *** * chance ** *** **** our ******* ********, ********* Dahua *** ******* ******, by ***** *** ** chip *** ***** ** cameras.

******** ***** **** ********* about *********'* ******* ** provide **** ** ***** and ********* ** * US-based *******, ********* **** in ***** ********** ** *** ********** the ******* ** ***** able ** "**** **** foreign-produced *** ******** ** the ****** ******** ** compliance **** ********** ***."

*****, * ***** ******** of *********'* ******* ** going ** ***-***** ****** manufacturers, ** ~**% ** Ambarella's ***** ******* ** in *** ******** ****** market, *** ***** *** Hikvision **** ******* *** around ~**% ** **** portion ** *******.

Dahua ** *********'* "******* ********" ** *****

********* ****** ***** *** "leading ********" ** ***** and ****** ******** ****** wins ** ** ****:

****** *** *******, *****, the *****'* ****** ******* security ****** *****, ********* its ********* ** ********* with ******** ******* ********. Dahua ********* **** ********** of ******** ******** ** Q4, **** ******* ** our ** **** ********.

***** **** ******** "** be * ****** ********" as **** ******* ***** HiSilicon ********* *** **** up *** ** ** chips, **** ****:

*** ****** *******, * think ***** **** ******** to ** * ****** customer *** **, ******* they *** **** ***** up ***** *********, *** also *** ** ******* is ******* **. * continue ** *** **** the ***** ******** ****** market ** ********* *** us *** ***** **** be *** ******* ******** there.

No ********* ** ****** **** - ********* ** ** **********

***** ***** **** ** a "******* ********" *** Ambarella, ********* ** ******** to ** * "******* customer ****** *******", ** Ambarella *** *** ** "design **** **** ********* on *** ** ****." Wang ********* **** ** likely *** ** *********'* sensitivity ** ***** ** components:

* ***** **** *** supply ***** ********* ** definitely * ******* *** Hikvision. *** * *** sense **** **'* **** sensitive ** **** **** they **** ** ****** a ***-*.*. ********* ** a ****** ********. ****'* probably *** ******* ******* we *** ******* **** at **** *****.

New ************ ** ****** ************ **** ********* - ****** *******, ****, *********

********* ********* * ****** of *** ******* ******** in ** **** *** Ambarella ****, ********* ************ security ******* **** ****** Techwin, ****, *** *********.

** *** ************ ** camera ******, ********* **** it *** "*** ********* to ******* **** ********* migrating **** ********* ** our ********* *** **** the ********** ******** ** SoCs ***** ** *** CVflow ** ************." *** professional ****** ******* ******** include:

• *, *, *** *********** Transport ******* *******: **** CV2 ***.
• ****** ******* *****-*********** ******, panoramic ******, *** *** corner ***** *****: **** CV22, ***, *** ***** SoC.
• **** * *** ****** families ********* *******, ***, 8MP: **** ****, ***, and *** ***.
• ***************** * ******: **** **** ***.
• ****** *** ****** ******** Camera: **** ***.

New **** ******** ****** ************ **** ********* - *****.***, ********

*** **** ******** *******, Ambarella ****** ** ** "beginning ** *** *********** CV ******" ** ********* expect ******* ** ****** "higher-quality ******" *** "**** sophisticated ********** *** ****** detection, ****** *********, *** package **********."

** ** ****, * "major **** ********** ****** maker ******* **** **** production ** * *** class ** *********** ****** based ** ****** ****," but ********* *** *** disclose *** ******** *******. Alarm.com *** ******** **** released ********* **** *** Ambarella ***. *****.*** ******** a********* ***** ************* *** ***. ******** released ********* **** ***** ************* **** ***.

Ambarella ******* ********* ** *******, ******** ****** ******* ********

********* ** ********** ** recover *** ******** ** growth. ** ******* *** $62.1 *******, ***** ******** Ambarella's ******** ******** ** $56-60 *******. ******* **** 11% **** ** ** Q4 *** *** ** 9% ******** ** ** 2019. *************, ** **** revenue *** $**.* *******, which *** **** **% compared ** ** ****.

******** ****** ******* "***** to **** ***** ** a ****-****-**** *****" ***** an *********** ****** ** Q3. ******** ****** ********** growth *** ~**%. **** revenue ********* **+% **** sequentially *** ****-****-****. ***** revenue "*********** * ******** decline."

Ambarella ******** ******** ********** **** "***** ** **"

********* ** ********** * transition **** ***** ** CV ********* *** *** security ****** ****** ** the **** *** ***** and ***** ********* ** its ******* ** **** market ***** **** **** transition *******. ********* ** "in * **** **** position ** ******* *** best ********* ** *** market ** **** ***** and ***-***** *********," **** said:

* ***** **** ** the **** *** *****, the ******* ********** *** the ******** ****** ****** is ***** ** ** the ********** **** * video ******** ** * CV ********. ** ******* that ** *** ** a **** **** ******** from * ********** ***** of **** ** ******* the **** ******** ** the ******, **** ** China *** ***-***** *********.

*******, **** *********** *********** on *** "***-*** ****" in ***** (*.*. ******):

******* *****, *'* ********* that **'** ** #* provider ** ***. *** in *****, ** ******** to *** * ********** coming ** *** ***-*** side ** ******* ** the ** ********. *** on *** ****** *** high-end ****, ** *** probably *** **** ******** even ****** ***** ** this *****. ** *'* hopeful **** ** **** continue ** **** ****** share ** ******** ****** market **** *** ********** continues.

**** **** ******** **** video ** ** ********** to *** ****** ** IP ********** ** *** security ********, **** * quick ****-**:

*'* ******* **** **'** going ** *** * similar ********** **** **** 10 ***** *** **** the ******** ****** ************ from ****** ** *******. We *** ***** ** see * **** ******* transition **** ***** ** AI ** *** **** couple ** *****.

* ***** **** ********** will ** **** *** will ** ******** ** accelerate ** *** **** couple ** *****. *** in ****, *** ********** is *** ******** ** the *** ******** **** our ********* **** *** with **, **** *** all ** *****.

Automotive ****** ****** *********** ****** *******

*********'* ********** ****** ****** was ********** ** **** call, ** ********* ******* the ********** ****** *** become "*** **** ********* market" *** *** ******* in *** ****** ****. However, **** ************ ***** 5 ***** ****-******* **** will **** ********** **** both *** ********** *** regulatory ******. *******, ** the **** ****, **** Level */*+ ** * tangible ***********:

*** ******* ** **** the ***** ***** ***** for **** ******** ** be *********** ** *** technology **** ** **** as ** *** ********** side. *** ** ** see **** ****** ******** to ******* ********** ** that *********. *** * do ******* **** **** is ***** ** ****** an ********* ******, *** I ***** **** **********, that's ***most ********* ****** *** ** ** *** ****** ****. [emphasis added]

********* "*********** *** **** business **** **** ** a **** **** ** significantly ****** **** *** other **********." ********** ** expected ** ****** ~*/* of *********'* ***** *********** addressable ****** (***) ** calendar **** ****:

**** ** ********* ** our ********** *** ** estimated ** ** ***** two-thirds ** *** ***** SAM ** ****, ** more **** $**, ******* to ****** $** ** FY26.

*********, ~**% ** ***** revenue ** ************ ** the ******** ******, ~**% to **********, *** ~**% to "*****" (*.*. "******** discretionary" ******** **** ****** cameras, **/**, *** ******** drones). ********* *** *** speak ** *** **** breakdown ** ******* **** evolve ** *** ******.

Q1 **** ****** ** ******, ***** ******* "****** *********" *** ** ****

******** ******** ***** **** supply *********** *** ***** increases **** **** *******, Ambarella ********* **** ****** is *** * ******* in ** **** ****** to ***** "****** *************" with *********. *******, ******* weather ** ***** **** down *******'* *******, ** Q2 **** ****** ***** be ********, ******** *** effects *** *** ******* yet. ********* **** ** is ******* ** **** up *** ******, ** any:

*** ********* **** *** been ****** ** ** is **** *** ** you **** ******** ***** that ******* ***** ******* was **** **** ******* of *** ******* *******. I ******* **** *** factory *** **** **** to ***********, *** **** have ***** *** ***********. We *** ******* ******* with ******* ** **** up *** ****** ** delivery. *** ** *****'* any, **** **** ** probably ** **** *****, but ** *****'* ****** got ********** ** **** yet. ** **** ******** to **** **** *** customers *** **** ********* to **** **** **** we ***'* ****** *** bottleneck *** *** *********.

********* ******* ***** **** although ********* ***** **** increased, **** **** *** passed ** ** ** customers:

*** **** ** *** substrate ********** *********, *** we **** *** ****** it ** ** *** customer ***. **'* *** a **** ******** *** for ** ***.