Ambarella, Inc.

Good day and thank you for standing by. Welcome to the Umbrella's third quarter fiscal year 2026 earnings conference call. At this time, all participants are in listen-only mode. After the speaker's presentation, we'll open up the call for questions. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's call is being recorded. I will now attend the call over to your speaker, Luis Gajardi, Vice President, Corporate Development. Please go ahead.

Thank you, Victor. Good afternoon, and thank you for joining our third quarter fiscal year 2026 financial results conference call. On the call with me today is Dr. Fermi Wong, President and CEO, and John Young, CFO, The primary purpose of today's call is to provide you with information regarding the results for our third quarter fiscal year 2026. The discussions today and the responses to your questions will contain forward-looking statements regarding our projected financial results, financial prospects, market growth, and demand for our solutions, among other things. These statements are based on currently available information that's subject to risks, uncertainties, and assumptions. Should any of these risks or uncertainties materialize, or should our assumptions prove to be incorrect, our actual results could differ materially from these forward-looking statements. We're under no obligation to update these statements, these risks, uncertainties, and assumptions, as well as other information on potential risk factors that could affect our financial results. are more fully described in the documents we file with the SEC. Before starting the call, we hope to see you at one of the following investor events that we have scheduled during the fourth quarter. December 2nd and 3rd, we will be at the UBS Global Technology and AI Conference in Scottsdale. December 9th and 10th at NASDAQ's London Conference. January 6th, from 4 to 5.30 p.m. at our CES location, we'll be hosting a technology and product briefing. January 6 to 10, we'll be hosting more than a dozen cell site analyst tours of our CES demonstrations, again, at our CES location in Las Vegas, and January 17 at the Needham Conference in New York. Access to our third quarter, Fiscal year 2026 results, press release, transcripts, historical results, SEC filings, and a replay of today's call can be found on the investor relations page of our website. The content of today's call, as well as the materials posted on our website, are Amber Ellis property and cannot be reproduced or transcribed without our prior written consent. Fermi will now provide a business update for the quarter. John will review the financial results, and then we will be available for your questions. Fermi?

Thank you, Louis. Good afternoon, and thank you for joining our call today. Before we proceed, I want to let you know that last call, our co-founder and CEO will be stepping down from the board of directors to become our chief technology advisor. We'll continue to oversee our technology direction and development, but without management responsibilities and with reduced time commitment. Les and I have worked closely since 1994 across four companies. I'm grateful that Les will continue as my close partner for over 31 years and beyond, and he's truly the best I could wish for. I'm happy he will have it. more time to pursue his passions, but I will definitely miss our daily conversations on various topics. Turning to our fiscal third quarter, we are reporting another strong quarter with both revenue and non-GAAP EPS exceeding expectations. We achieved record quarterly revenue of $108.5 million, slightly above the high end of our guidance range. AGN revenue was we defined as a product that integrates one of our proprietary deep learning AI accelerators was about 80% of our total revenue representing our sixth consecutive quarter of a record age AI revenue. We have increased our fiscal 26 revenue guidance, which projects an all time fiscal year total revenue record for umbrella. The strength in our, In our average selling price and with breadth of demand, we are raising our fiscal 2026 value growth guidance for a range of 36 to 38%, or approximately $390 million at midpoint. This compares with our prior estimate provided on August 28th for 31% to 35% year-over-year growth, or approximately $379 million at midpoint. This results are very encouraging, but I'm even more excited about the AGI. There are three key factors behind our enthusiasm and our strong commitment to AGI. First, the breadth of application demanding AGI technology and our product is expanding. Second, the AI performance requirement for our product roadmap is expected to continue to rise driving robust new product cycles third our asp has been increasing and in the long run we continue to see an excellent opportunity to capture more value per design i'll elaborate on those points first ai at age is becoming more prevalent driving an increasing breadth of applications in both enterprise and consumer. Our AGI business started in enterprise security, followed by automotive safety, smart home, telematics, and more recently, the portable media market, which includes action camera, panorama cameras, and the body-worn cameras. Looking ahead, high-value instruments into the aerial film market, I expect it to commence this quarter, representing just the beginning of our realization of the large robotic market opportunity. There is also strong interest from existing and new customers in our age infrastructure products and roadmaps, and we are committed to develop this incremental opportunity. In addition, ADAS and the vehicle economy remain large markets that can leverage our technology to a very high degree. Second, we see a large opportunity to ask you at the age the increasingly complex AI technologies currently implemented at the core of the network or in the data center. The challenge and our opportunity is that the solutions used at the core of the network are not suitable for the age, where the age performance requirement is rising. In each market, low power consumption, real-time processing, privacy, security, small phone factors, thermal, network bandwidth efficiency, and low price points are critical. At Umbrella, we continue to invest heavily in our proprietary HAI SOC technology and products to support this unique and increasingly complex HAI requirements. For example, our 10-nanometer CB2 family supports CNN networks and our five nanometer embedding our third generation AI processors is scaling our customer into more complex CNN and the generative AI applications simultaneously. Third, we see an excellent opportunity to continue to increase our ASP. The shift from CPU workloads to high level of accelerated computing or AI is well underway. The adoption of increasingly complex data center technology for the age is another driver. Finally, the extension of roadblocks beyond age endpoints and into the age infrastructure and auto autonomy is also expected in particular to boast our ASP. For example, our ASOC-blended ASP in Q3 was up about 20% year-over-year, and as our third-generation AI SOCs and the overall new product become a more material portion of our revenue. we anticipate further increase in the value we earn per design wins. I will now describe some of the representative customer engagements that reflect the factors I just described. In the enterprise security market, we are very pleased to share a significant milestone with our customer, Sparsh, who became India's first security camera manufacturer to receive HTQC certification for its complete range of tests. At the heart of the collaboration is our CV28. This gives us a tremendous start to accelerate our adoption in a rapidly growing made-in-India market. Spun out of Bosch, announced the Autodome 7100i moving PTZ camera with the beauty AI analytics. Ultra HD image based on CV72. They have also announced their Dynan thermal security camera that is CB22. It runs their CNN models to detect and classify objects accurately up to 2,000 feet. Wakata announced their upcoming CB75-based AF64 access station pro, which enables secure physical access It has facial recognition, power to face unlock, a low-side traditional badge, and a mobile access method. The company also launched a new CR63E remote security camera that leverages the power efficiency of our CV75. They also expanded CV72-based multi-sensor security camera product line, including CH53, CH63, and CY63. Motorola has developed their original Halo 4 smart sensor on our CV25, which is an all-in-one environmental monitoring and security device that is designed for areas where cameras are restricted to detect events like smoke, fire, and audio anomalies. In the robotic smart home market, one of our customers, Whisker, announced the Literal Robot 5 Pro, Their first model with facial recognition has 429 vision equipped AI-powered camera based on our CB28. We are seeing great momentum in our portable video market with Arash who released two models this quarter. The X4 Air at just 165 grand is a new lightest compact 8K 360 action camera. It is based on CD5. and is first in the range to support 8K 30 frames per second active HDR. Arash also launched the latest version of their body-worn camera, Go Ultra. Based on CV52, it captures 4K P60 frames per second video and a 50 megapixel photo with improved performance even in low-light environments. In our automotive safety, data and telematics business, I would like to share some key customer wins during the quarter. Zeker, a unit GD, has developed their in-cabin DVR system, CV28, for the 9X full-size luxury model. A shop on expense, their global market presence, they have built all their driver management system for all their export models on CV28. Solera, a global leader of vehicle lifecycle management, announced their new ASR-5 AI-powered smart camera in October, based on our CV22. In a first for Solera, the ASR-5 camera is powered by AI+, AI, AI, human intelligence, a revolutionary approach in fleets and magics that combines AI-based analysis with human oversight to improve safety, efficiency, and operations. From this representative customer engagements I just described, the strength of our current product portfolio is currently represented. With seven example from the 10 nanometer CV2 family and seven example from our 5 nanometer generation, these products all available today offers customers a wide variety of options ranging from CNN to transform network processing. One to many sensor input support for multiple sensing modalities, all at a wide range of price points. Our new product roadmap will expand this portfolio further. In addition to our comprehensive and expanding AI SOC portfolio, another important distinguishing characteristic of our portfolio is the event BSI technology we offer to customers as of age. For example, 5-nanometer-based products represent more than 45% of our total Q3 revenue, with products based on more advanced nodes in development. In summary, the first three quarters of fiscal 26 are steps in the right direction with strong revenue growth, new product execution, profitability, and with our cumulative year-to-date free cash flow of almost 14.8%. We continue to hold at a large age serviceable available market of $12.9 billion by fiscal year 2031. We recognize the HDI market is still in an early innings of development and to successfully address this large set, we remain highly committed to our R&D investment that enable us to build upon our existing leadership position. I hope to see you January 6th at our CES 2026 product and the technology briefing, which will give you a chance to learn about new technologies and the products and meet both sides of our energy team. With that, John will now discuss the Q3 results and the Q4 outlook.