Ubiquiti Q1 revenue, profit jump; warns of margin pressure
UI•UI•UI•UI•Ubiquiti’s fiscal first-quarter revenue rose 39.9% year over year to $1.03 billion, while adjusted EPS increased 53.8% to $5.32. The company warned that rising component costs and supply constraints could pressure near-term margins and limit its ability to meet demand.
Ubiquiti reported fiscal first-quarter revenue of $1.03 billion, up 39.9% year over year, and adjusted EPS of $5.32, up 53.8%. Revenue, adjusted EPS and adjusted net income of $322 million exceeded analyst estimates listed in the report. Gross margin was 47.3%.
The company said revenue growth came from its Enterprise Technology and Service Provider Technology platforms. Gross margin improved primarily because of lower indirect costs, partly offset by higher component costs; increased interest income on invested cash also contributed to higher net income. Ubiquiti warned that component costs may continue to rise and supply constraints could limit its ability to meet demand, affecting revenue and margins.
