Ubiquiti Stock Partially Rebounds After Spring Slump, FQ4 2023
Ubiquiti's stock dropped more than 30% in May after its earnings release but partially recovered on Friday after releasing its latest results.
Inside this note, we examine Ubiquiti's financials, including inventory levels, operating cash flows, and how that impacts the company's stock prices.
Stock ****** ** ~**% ** ******
********'* ***** **** ~**% ** ****** after *** ******* ******** *** **** recent ******** ****** ** *** ***** morning *** *** **** ******** *****. Ubiquiti's ****** *** ** *** $**.* billion.
*** ******* ***** *** ****** ** the ****** ** *** ********** ********, including ****** ********** ********* *** ******** cameras.
Stock **** ** ***
*** *******'* ***** ** ***** **** ~37% ***, **** * ***** **** in *** ***** ** ****** ********' revenue ********* ** $*.** *******, *** investors ********* ******* **** * **** inventory ***** (********* ** ~$*** ******* in * *******).
Ubiquiti ********* ********
******** ******** ******* ** $*.* ******* between **** **** ** **** ****, a **.*% ****-**-**** ******.
******* ****** ****** *********, ******** ********** a ***** ****** ** **.*%, * 0.4% ******** ******** ** **.*% ** the ******** ****. *** ******* ** maintain *** ****** ***** **** *********** supply ********* ** * ******** **** for *** *******.
******** *** * *.*% ****-**-**** ****** in *** ******, ****** **** ************* $379 ******* ** *** ******** **** to $*** *******.
Enterprise ******** ** ***** ****** ******* ******** ******** ****
********'* ********** ********, ***** ***** ** more **** **% ** *** ***** revenue, **** **%. **** ****** ******* the **% ******* ******** ** *** legacy ******* ******** ********. ** ************** ********, ******** ** ******** ** *** enterprise ********.
Ubiquiti ********** ******** ********
********'* ********** ******** ** ****** ********** equipment *** ******** ******** ********, *.*.,(***** *******,***** ******, ***.), ***** *** ** ********* managed **** ********** ***-**** ******* ******** to ****** ** *******. *******, ******** lacks ********/******* *** *********** ****, *.*., (limited ****** ******, ** *** ***** camera *******, ***.)
** ********, ********'* ******* ******** ******** covers *** ******* / ******-***** ***** devices.
*** **** ** ****'* ******* ** Ubiquiti, *********** ***** ******* ***/********* ***************** ** ****** ****** ******.
**** *******, *** *** ******** **** subscriber's **********:******** *** ***** ** **** **** Verkada ********.
Supply *********
********'* ******* ********* **** **** *********** during *** *****-** ********, *** ********* to ******* **-*, ** ** *** ** ** resolved ** ****:
** **** *** ******* **** ** 2023, ** *********** ******* ************ ** components **** ** *********** *** ********, especially *** ********, ***** ******** *** ability *** ***** ** *********** *** products. ***** ****** ********* **** ******** in ********* ********* ******** **** ***** and ********* ***** ** ****** **********, particularly ********, *** ******** ** ****** in ******* **********.
******** ********** ** *** ********* ** is *** *** ******* ** ******* product ****** *** ****** ******** *** compete *** **** ************* **********. ** cannot ****** ********** ****** ** ******** and ***** **********:
** ** *** ********* ********** **********, particularly *** ********, ** ***** *** time ** ***** **** ** **-******** our ******** ** ******* *** ********** used ** *********** *** ********.
** ***** *** ********* ** ******** or ***** ********** **** ** *********** our ********, ***** ** ****** ** work ******* **** *** ********* *** contract ************* ** ******** *** ********* adverse ******* ** **** ****** ********, there *** **** ********* ******* ** purchase *** **** **********, **** ** which **** ******* ********* *** ****** market ***** **** ** ****, ***** may ***** *** ************* ** *** efforts.
***** ** **** ** ********* **** we **** ** **** ** ****** sufficient ******** ** ***** ********** ** acceptable *****, ** ** ***, ***** could ***** ** ******* *** ****** of *** ******** *** ****** *** business, ******* ** ********** *** ********* condition.
*** ******* **** ** ****** ********* to ***** **** ***** ******* *** various *******:
*** ******* ** ******** ***** ****** constraints **** ********, *** *******, ********** our ********* ***** ** ** ******* to ****** ****** *** **** ******** demand, ****** ****** ********* *** ******** costs ** ****** ****** *** ********* our ******* ******* ** ******** ********* suppliers.
******** ***** ********** ******* *** ******** to ******** *** ****** ** *** components ******** ** **** ******** ****** for *** ********, ** **** ******* visibility **** ****** *****, ***** ***** it ********* ** ******** *** ****** results ** **********.
Inventory ****** **** **** *** ******** *******
******** *** ******* *** ********* ** the **** ****, *** ********* *** now ********** ** ~$*** ******* ** of **** **. **********, *** ******* increased *** ********* **** $*** ******* on ********* **, ****, ** $*** million ** ******** **, ****, ** $743 ******* ** ***** **, ****.
*** *******'* $*** ******* ********* ** equivalent ** ~**% ** *** ******* and *** **** *** ****** *.* months. ****** *** *****-** ********, ********'* inventory ***** *** **% ** *** sales ** **** *** **% ** its ***** ** ****.
******** ********* *** ********* ** **** with *** ****** *********. *******, ***** higher ********* ****** ****** ******** ** have ******** ***** *** **** **** customers **** ****, ** **** ******* the ******* ** *** ***** ** having *** **** ****** *** *** being **** ** **** *** ********.
******** *** *** ********* ** ****'* request *** ******** ** *** ********* details. **/**** **** *******, ** **** add ***** *********.
*** ******* ********* ** ******* **-***** ***** **** ** ** ****** the ****** ***** ******, ****** ********* levels ******** ***** *** *** ********:
***** ********** ******* **** *********, *** are ******** ** ******** ** ********, our ******** ** ******** ***** *** raw ******** *********** *** ****** ********. The ********** ******** ** ******** ***** and *** ******** ********* *** ****** deposits ************* ******** *** ***** ** future ******** ******, ******** ********* *** related ******.
**** *** ******** ********* ******* **** dealers **** ********'* ******* ********* *** still ** *****, **** ******* ** the *******'*** ********(******* **** *** ** *** **** of ***********) *** ***** ********.
Negative **** **** **** ********* **********
*** ***** ** *********** ******** ** a ******** **** **** ** ********* activities *** ******** ** *** **** year, ************ *** ********* ** ******* products/services ** *** **** (******* ***********) or *** *** **** (***********) **** cash.
Direct **. ******* *****
******** ** ******** **** ******* ** direct *****, **** ****** ********** ******* from **** **% ** **** ** 36% ** ****,* ***** **** ******** ** *** previous ******. *** ******* ********** ** **** in ******* **-*:
** **** *** ******** *** ********* globally ** *********** *** ******* ********* primarily ******* *** ********* ******* ** distributors *** ******* ****** ***** ******* our *********. ***** ** ************ ********* for **% *** **% ** *** revenues ****** *** ***** ***** **** 30, **** *** ****, ************. ****** sales ********* *** **% *** **% of *** ******** ****** *** ***** ended **** **, **** *** ****, respectively.
Geographic *********
********'* **** ******* ******** *** ******* the ******* ** *** **** **** at *%, *** ***** ******* *** the ******* ****** ** **%.
**** ****** ********'* ****** ** **** was ******* ****** **** ***** ********** regions **** **** ****, *** ****** in *** **** ****(+**%) ******* **** the *******'* ******* ******.