Ambarella, Inc. (NASDAQ:AMBA) Q3 2023 Earnings Call Transcript

Richard Shannon: Maybe I’ll ask a question on the IoT side of the business here. Maybe Fermi, if you can talk bigger picture here over the last year, how the penetration of CV has gone into maybe both sides of the security business? And where do you think that will go over the next year or two, to be a great perspective over that time? Thanks.

Dr. Fermi Wang: Right. So, I think that’s a great question. We continue to see strong IoT design wins in — on all of the markets, we’re talking about professional security and the consumer security and also others. I think — like I said before, it’s driven — some of it is driven by new applications that we talked about today. For example, this face — Xiaomi introduced a new lock, which is using 3D metrics to identify face. And also, we are talking about other applications like video conferencing, which is really new market enabled by CV product line. So I think on IoT space, outside of China, we are doing quite well. But at the same time, I want to highlight again that with the new U.S. regulation, we have basically zero play in China in the IoT — particularly security camera space. I think that’s something I want to highlight about, and we talk about will be zero revenue for us next year.

Richard Shannon: Okay. Perfect. Thanks for that update. My second question is on Continental here. Looking at it from one angle, and you mentioned both today and in past calls regarding having a solution that really addresses all vision-related opportunities, both within and without the car here. As I look through the Continental press release from whatever, a week or two ago, I didn’t see any mention of kind of indoor use cases there, and maybe I’ve scanned too quickly. But is that being contemplated here? Is that something you can discuss, and/or do you see other OEMs coming through the funnel here that you will have both, interior and external use cases because you have that full offering, others don’t?

Dr. Fermi Wang: Right. So, for the Conti price release, they basically focus on only one application, which is ADAS. And ADAS mainly is for external use. However, I do believe that they appreciate that we offer a complete road map that goes from external to internal. And we just — I want to say that the press release is targeted only for one application, one possible opportunity between Conti and us.

Richard Shannon: Okay. Fair enough for that update. That’s all from me, guys. Thank you.

Dr. Fermi Wang: Thank you.

Operator: The next question I have is coming from Ross Seymore of Deutsche Bank.

Unidentified Analyst: This is DJ Sebastian on behalf of Ross Seymore. First off, thanks for letting me ask a question here. But, I was just hoping to get some color on sort of the revenue split between your IoT and auto segments, both for the reported quarter and the implied guide. Thanks.