Attached files
| file | filename |
|---|---|
| EX-99.1 - EXHIBIT 99.1 - QUANTENNA COMMUNICATIONS INC | q12017-exhibit991newsrelea.htm |
| EX-99.2 - EXHIBIT 99.2 - QUANTENNA COMMUNICATIONS INC | ex992supplementarycomm.htm |
| 8-K - 8-K - QUANTENNA COMMUNICATIONS INC | qtnaq120178k.htm |
Wi-Fi Perfected™
First Quarter 2017 Earnings Presentation
May 8, 2017
Semiconductors Cloud Analytics
Proprietary
Software
Safe Harbor and Non-GAAP Financial Measures
2
This presentation contains “forward-looking” statements that are based on our beliefs and assumptions and on information
currently available to us. Forward-looking statements include information concerning our possible or assumed future results
of operations, business strategies, product development plans, competitive position, potential growth opportunities, use of
proceeds and the effects of competition. Forward-looking statements include all statements that are not historical facts and
can be identified by terms such as “anticipate,” “believe,” “could,” “seek,” “estimate,” “intend,” “may,” “plan,” “potential,”
“predict,” “project,” “should,” “will,” “would” or similar expressions and the negatives of those terms.
Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual
results, performance or achievements to be materially different from any future results, performance or achievements
expressed or implied by the forward-looking statements. These risks, uncertainties and other factors include, but are not
limited to, the risk factors listed in our 10-K dated March 2, 2017. Forward-looking statements represent our beliefs and
assumptions only as of the date of this presentation. Except as required by law, we assume no obligation to update these
forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in
the forward-looking statements, even if new information becomes available in the future.
This presentation includes certain non-GAAP financial measures as defined by the SEC rules. We have provided a
reconciliation of those measures to the most directly comparable GAAP measures, which is available in the appendix to this
presentation.
Quantenna at a Glance
3
Strong Revenue Growth Profile
$40
$67
$84
$129
2013 2014 2015 2016
$MM
100 million+
chips shipped
60+
products with
Quantenna inside
40+
service providers
40+
OEMs / ODMs
325+
employees
10+
years of history
48%
CAGR
Quantenna Takes Wi-Fi to Unparalleled Performance
4
Basic Features
of Standards
Basic Functionality
and Interoperability
Optional Features of
Standards
Better Performance
Innovative Implementation
High Performance
Value-Add Proprietary Software & Algorithmic Features
• Advanced MIMO
• Advanced MU-MIMO
• Transmit
Beamforming
Technology
• 2.4GHz + 5GHz
Integrated Dual-
Band Chipset
• Complete Host
Offload
• Full Access Point in
a Single Chipset
• IQStream Traffic Management
Classify and prioritize traffic
• SuperDFS Dynamic Channel
Selection
• MAUI Analytics
Embedded cloud-based Wi-Fi
analytics platform
• SONiQ Smart Managed Wi-Fi
Solution
Manages multiple access points
and repeaters
Supports third-party silicon
4x4 MIMO
8x8 + 4x4 MIMO
Performance
Wi-Fi Perfected™
2Gbps 10 Gbps5Gbps
Wave 2 / Wave 3
8x8 MIMO
Dual-Band Predictive Software
Advanced Routing
Sizing Up the Premium Wi-Fi Market
5
Total Wi-Fi Chipset Revenue
$2.1 B $2.6 B
$1.5 B
$1.4 B
$0.2 B $1.3 B
2016 2021
Source: ABI Research Wi-Fi Market Data 3Q 2016, Table 4, Table 11 and Table 26 and Quantenna assumptions
Portable Devices include cellular phones, laptops, netbooks, Ultrabooks, Chromebooks, PC accessories, mobile devices, gaming controllers, OEM remote controls, 3D glasses, and wearables and healthcare devices
Non-Portable Devices include networking, set-top boxes, televisions, gaming consoles, DVD / Blu-ray players, desktop PCs, printers, smart home, automotive, industrial, and others
2.1 B
2.9 B
0.7 B
1.1 B
0.0 B
0.2 B
2016 2021
Total Wi-Fi Enabled Device Shipments
53%
2016-2021
CAGR
8%
7%
50%
2016-2021
CAGR
-2%
4%
Premium Wi-Fi * in
Non-Portable Devices
Mainstream Wi-Fi in
Non-Portable Devices
Wi-Fi in Portable
Devices
* Premium Wi-Fi chipsets are
defined by 4x4 MIMO or
higher performance.
Quantenna’s premium Wi-Fi
technology leads the high
performance, non-portable
device market.
Q1 2017 Financial Highlights
Record quarterly revenue of $37.9 million
• 55% Y/Y growth vs Q1 2016
• 1% Q/Q growth vs Q4 2016
Consistent gross margin of 49.2%
• Within 48% to 50% guidance range
• Up 50bps Y/Y vs Q1 2016
Cash outflows to fund working capital
• Cash from ops ($0.4) million or ($0.01)/share
Record Earnings Performance
• $1.2 million net income
– Exceeds entire 2016 net income
• $0.03 in EPS
– Flat Q/Q vs $0.03 in Q4 2016
– Exceeds expected range of $0.00 to $0.02
0
25
50
75
100
125
150
Q1 2016 Q1 2017 TTM
Q1 2016
TTM
Q1 2017
59%
YoY
Strong Revenue Growth Profile
$MM
55%
YoY
6
*Gross margin, income and EPS figures are based on non-GAAP reporting which excludes stock-based compensation. TTM means trailing twelve months.
Technology Cycles Drive Growth
$MM
0
5
10
15
20
25
30
35
40
Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17
Other 802.11n 802.11ac Wave2 802.11ac Wave3 (10G)
Q1 Wi-Fi Technology Highlights
• 802.11ac Wave 3 (10G) revenue
– Grew 144% Q/Q to $1.0 million
– Expected to ramp significantly
throughout 2017
• 802.11ac Wave 2 revenue
– Declined $1.6 million or 5% Q/Q
– Grew 101% Y/Y to $29.9 million
– Q2 revenue expected to exceed Q4
2016 level
• 802.11n revenue
– Grew 27% Q/Q to $7.0 million
– Declined $4.7 million or 22% Y/Y
– Revenue expected to slowly decline
longer-term
Wi-Fi Technology Sets the Pace for Revenue Growth
7
Operating Results & Guidance
2015 Q4 2016 2016 Q1 2017 Q2 2017 Guidance
Revenue $83.8 $37.5 $129.1 $37.9 $42 - $44
Gross Margin 49% 52% 50% 49% 48.5 - 50.5%
OPEX 55% 48% 48% 45% Up 10-15% Q/Q
EPS $(7.59) $0.03 $0.04 $0.03 $0.04 - $0.06
8
*Gross margin, OPEX and EPS figures are based on non-GAAP reporting which excludes stock-based compensation.
Balance Sheet Summary
2015 Q3 2016 2016 Q1 2017
Cash and Cash Equivalents $15.7 $17.8 $117.0 $114.4
Total Assets $46.7 $55.1 $154.8 $156.1
Total Debt $5.8 $6.6 $6.5 $5.8
Total Liabilities $17.6 $25.5 $26.0 $25.3
Total Stockholders’ Equity ($155.7) ($155.1) $128.7 $130.7
9
Appendix
10
Non-GAAP to GAAP Operating Margin Reconciliation
11
SBC means stock-based compensation, percentages may not total due to rounding
2015 Q4 2016 2016 Q1 2017
Non-GAAP Gross Margin 49% 53% 50% 49%
SBC: Gross Margin 0% 0% 0% 0%
GAAP Gross Margin 49% 53% 50% 49%
Non-GAAP Operating Margin (6%) 3% 2% 6%
SBC: R&D 0% 1% 1% 3%
SBC: S&M 1% 0% 0% 1%
SBC: G&A 1% 1% 1% 1%
GAAP Operating Margin (7%) 1% (1%) (1%)
Non-GAAP to GAAP Net Margin Reconciliation
12
SBC means stock-based compensation, percentages may not total due to rounding
2015 Q4 2016 2016 Q1 2017
Non-GAAP Net Margin (7%) 2% 1% 6%
SBC: Gross Margin 0% 0% 0% 0%
SBC: R&D 0% 1% 1% 3%
SBC: S&M 1% 0% 0% 1%
SBC: G&A 1% 1% 1% 1%
GAAP Net Margin (8%) 0% (1%) (2%)
Wi-Fi Perfected™
13
Semiconductors Cloud Analytics
Proprietary
Software