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Ubiquiti 8-K Report, Financial Results (Aug 23, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed August 23, 2024
Period End
August 23, 2024
Security
UI
In the record · 2016–202610-K1110-Q328-K77

UI filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 77 current reports (8-K) between 2016 and 2026.

  1. Auditor change8-K · Dec ’16Dec ’16
  2. Leadership change8-K · Oct ’18Oct ’18
  3. Leadership change8-K · Dec ’20Dec ’20
  4. Material agreement8-K · Apr ’23Apr ’23

01—Abstract

Summary

Summary of the 8-K filed August 23, 2024. Cited figures are marked; the original filing is the authoritative source.

Ubiquiti Inc. reported results for its fourth quarter and full fiscal year 2024, ended June 30, 2024.

Fourth-quarter revenues were $507.5 milliona, a record per the filing's headline, up 2.9% from the prior quarter and 3.3% from the prior-year quarter. GAAP diluted EPS was $1.72, flat with the prior-year quarter, and non-GAAP diluted EPS was $1.74. Growth was driven by the Enterprise Technology platform, while Service Provider Technology revenue declined versus both comparison periods.

Full-year fiscal 2024 revenues were $1.93 billionb, down 0.6% from fiscal 2023. GAAP net income was $349.96 million, or $5.79 per diluted share, compared with $407.64 million, or $6.74 per diluted share, in fiscal 2023. Gross margin for the year fell to 38.4% from 39.2%, driven by incremental excess and obsolete inventory charges and warehouse-related operating expenses.

Research and development rose to $159.8 million and SG&A rose to $81.0 millionc, and interest expense and other, net increased to $75.2 million on higher average debt and interest rates. The Board declared a $0.60 per share cash dividend payable September 9, 2024, to shareholders of record on September 3, 2024. The company stated its intention to pay regular quarterly cash dividends of at least $0.60 per share, subject to Board determination each quarter based on financial performance, cash flow, and other factors.

02—Key points

Key Highlights

  1. Fourth-quarter fiscal 2024 revenues of $507.5 million, up 2.9% sequentially and 3.3% year over year, led by Enterprise Technology revenue of $431.7 million.
  2. Fourth-quarter GAAP gross margin of 40.2%, up from 35.3% in the prior quarter and down from 41.4% a year earlier, helped by lower excess and obsolete inventory charges and favorable product mix.
  3. Fourth-quarter GAAP diluted EPS of $1.72, flat year over year; non-GAAP diluted EPS of $1.74, up 0.6%.
  4. Full-year fiscal 2024 revenues of $1.93 billion, down 0.6%, with declines in both Enterprise Technology and Service Provider Technology.
  5. Full-year fiscal 2024 GAAP net income of $349.96 million, or $5.79 per diluted share, versus $6.74 per diluted share in fiscal 2023.
  6. Full-year GAAP gross margin of 38.4%, down from 39.2%, driven by incremental excess and obsolete inventory charges and warehouse-related operating expenses.
  7. Board declared a $0.60 per share cash dividend payable September 9, 2024, with the company intending to pay quarterly dividends of at least $0.60 per share, subject to Board approval.

03—Questions

Frequently Asked Questions

  1. How did Ubiquiti perform in the fourth quarter of fiscal 2024?

    Revenue was $507.5 million, up 2.9% from the prior quarter and 3.3% from the prior-year quarter. GAAP diluted EPS was $1.72, the same as a year earlier, and non-GAAP diluted EPS was $1.74. Income from operations was $138.4 million, compared with $143.9 million in the prior-year quarter.

  2. Why did full-year revenue and margins decline?

    Full-year revenue fell 0.6% to $1.93 billion, with decreases in both Enterprise Technology and Service Provider Technology. The gross margin decline to 38.4% from 39.2% was primarily driven by incremental excess and obsolete inventory charges and warehouse-related operating expenses, partly offset by lower shipping costs and lower tariffs.

  3. What drove higher operating and financing costs?

    Research and development expense rose to $159.8 million from $145.2 million, mainly on higher prototype-related and employee-related expenses. SG&A rose to $81.0 million from $71.0 million, mainly on webstore credit card processing fees, marketing, employee-related expenses and professional fees. Interest expense and other, net increased to $75.2 million from $58.2 million, reflecting higher average debt and higher interest rates.

  4. What is the dividend outlook?

    The Board declared a $0.60 per share cash dividend payable September 9, 2024, to holders of record on September 3, 2024. The company stated its intention to pay regular quarterly cash dividends of at least $0.60 per share, though each dividend and its record and payment dates remain subject to Board determination after reviewing financial performance, cash flow and other factors.

04—Continue

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