Ubiquiti Q1 revenue, profit jump; warns of margin pressure

Overview

• Enterprise networking firm's fiscal Q1 revenue rose 39.9% yr/yr to $1.03 bln

• Adjusted EPS for fiscal Q1 climbed 53.8% yr/yr to $5.32

• Gross margin improved to 47.3%, helped by lower indirect costs but offset by higher component costs

Outlook

• Company warns component costs may continue to rise, pressuring near-term gross margins

• Ongoing supply constraints could limit ability to meet demand and impact revenue and margins

Result Drivers

• ENTERPRISE AND SERVICE PROVIDER GROWTH - Co said revenue growth was driven by increases in both Enterprise Technology and Service Provider Technology platforms

• LOWER INDIRECT COSTS - Co said gross margin improvement was primarily due to lower indirect costs, partly offset by higher component costs

• HIGHER INTEREST INCOME - Co said higher interest income on invested cash contributed to increased net income

Company press release: ID:nBw1H1WNka

Key Details

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)