Ubiquiti Inc. (UI) Bundle
A Brief History of Ubiquiti Inc.
Ubiquiti Inc. (NASDAQ: UI) has seen significant growth since its inception, particularly in the broadband technology sector. In 2024, the company reported revenues of $1,928.5 million, a slight decrease from $1,940.5 million in 2023, primarily due to declines in both the Enterprise Technology and Service Provider Technology segments.
Financial Performance Overview
As of June 30, 2024, Ubiquiti’s net income was $349.96 million, down from $407.64 million in the previous year. The earnings per share (EPS) for the year was $5.79, compared to $6.75 in 2023.
| Key Financial Metrics | 2024 | 2023 |
|---|---|---|
| Revenues | $1,928.5 million | $1,940.5 million |
| Net Income | $349.96 million | $407.64 million |
| EPS (Basic) | $5.79 | $6.75 |
| Gross Profit | $739.76 million | $760.73 million |
| Operating Expenses | $240.77 million | $216.17 million |
Revenue Breakdown
The revenue composition for 2024 indicates that Enterprise Technology accounted for 84% of total revenues, while Service Provider Technology contributed 16%.
| Revenue by Product Type | 2024 | 2023 |
|---|---|---|
| Enterprise Technology | $1,617.67 million | $1,621.43 million |
| Service Provider Technology | $310.83 million | $319.09 million |
Geographical Revenue Distribution
In terms of geographical distribution, North America represented 49% of total revenues, followed by Europe, the Middle East, and Africa at 38%.
| Revenue by Geography | 2024 | 2023 |
|---|---|---|
| North America | $946.43 million | $922.23 million |
| Europe, the Middle East and Africa | $740.11 million | $759.41 million |
| Asia Pacific | $127.90 million | $148.50 million |
| South America | $114.05 million | $110.38 million |
Stockholder Equity and Dividends
As of June 30, 2024, Ubiquiti reported total stockholders' equity of $95.06 million, a recovery from a deficit of $115.73 million in the previous year. The company declared a quarterly cash dividend of $0.60 per share, payable on September 9, 2024.
| Stockholder Equity | 2024 | 2023 |
|---|---|---|
| Total Stockholder Equity | $95.06 million | ($115.73 million) |
| Dividends per Share | $0.60 | $0.60 |
Conclusion of Financial Trends
Ubiquiti’s strategic initiatives have led to a stable yet slightly declining revenue trend in 2024. The focus on direct sales through webstores has been a notable shift, despite challenges in distributor sales. The company continues to manage its operating expenses effectively while maintaining a strong presence in the North American market.
A Who Owns Ubiquiti Inc. (UI)
Major Shareholders
As of August 23, 2024, the major ownership of Ubiquiti Inc. is concentrated primarily in the hands of its founder and CEO, Robert J. Pera. He owns approximately 56,278,181 shares of common stock, which translates to about 93.2% of the voting power. This concentration of ownership gives him significant influence over corporate decisions.
Stockholder Composition
Ubiquiti Inc. has a limited number of record holders for its common stock. As of August 22, 2024, there were 6 record holders of the common stock listed on the New York Stock Exchange under the ticker symbol "UI". Most shares are held by institutional investors and brokers on behalf of beneficial owners.
| Shareholder | Shares Owned | Percentage of Ownership | Voting Power |
|---|---|---|---|
| Robert J. Pera | 56,278,181 | 93.2% | Majority |
| Institutional Investors | Approx. 3,000,000 | 5.0% | Minority |
| Other Retail Investors | Approx. 1,000,000 | 1.8% | Minority |
Stock Performance
Ubiquiti Inc. has shown resilience in its stock performance with a market capitalization of approximately $8.9 billion as of June 30, 2024. The stock price was around $147.50 per share at the end of the fiscal year.
Dividends
Ubiquiti has a history of paying dividends, with a quarterly cash dividend of $0.60 per share declared on August 23, 2024, payable on September 9, 2024. This reflects a continued commitment to returning value to shareholders.
| Dividend Quarter | Declared Date | Payment Date | Dividend Amount |
|---|---|---|---|
| Q1 | August 23, 2024 | September 9, 2024 | $0.60 |
| Q2 | November 2, 2023 | November 20, 2023 | $0.60 |
| Q3 | February 5, 2024 | February 26, 2024 | $0.60 |
| Q4 | May 7, 2024 | May 28, 2024 | $0.60 |
Ownership Implications
The significant ownership by Robert J. Pera implies that he holds substantial control over the company’s strategic direction, including decisions related to mergers, acquisitions, and overall management. This concentrated control may impact the stock's appeal to potential investors who might prefer companies with a more diversified ownership structure.
Conclusion on Ownership Dynamics
Ubiquiti's ownership structure is indicative of a founder-led company with a strong vision and strategic direction, primarily influenced by its CEO. The dynamics of this ownership structure can have both positive and negative implications for investors, particularly regarding governance and decision-making processes.
Ubiquiti Inc. (UI) Mission Statement
Company Overview
Ubiquiti Inc. focuses on democratizing network technology on a global scale, providing high-capacity distributed Internet access and unified information technology management. The company develops technology platforms for enterprises, service providers, and consumers worldwide through a network of over 100 distributors and direct sales via webstores.
Mission Statement
The mission of Ubiquiti Inc. is to provide innovative networking technology that is accessible and affordable, thereby enabling individuals and organizations to connect and communicate more effectively. The company aims to empower its customers through its diverse portfolio of products designed for high-performance networking.
Financial Performance
For the fiscal year ending June 30, 2024, Ubiquiti reported a revenue of $1.93 billion, compared to $1.94 billion in fiscal 2023. The net income for fiscal 2024 stood at $350 million.
| Fiscal Year | Revenue (in billions) | Net Income (in millions) | Net Income per Share (Basic) | Net Income per Share (Diluted) |
|---|---|---|---|---|
| 2024 | $1.93 | $350 | $5.79 | $5.79 |
| 2023 | $1.94 | $408 | $6.75 | $6.74 |
| 2022 | $1.69 | $379 | $6.14 | $6.13 |
Key Product Categories
- Enterprise Technology
- UniFi Cloud Gateways
- UniFi WiFi
- UniFi Switches
- UniFi Protect
- UniFi Access
- UniFi Talk
- Service Provider Technology
- airMAX
- UISP
- EdgeMAX
- UFiber
- Wave
- GPON
- airFiber
Market Strategy
Ubiquiti markets its products through a highly engaged community of service providers, distributors, and online retailers, targeting both enterprises and consumers. The company emphasizes the use of digital marketing and community engagement to drive brand awareness and product adoption.
Stockholder Information
As of June 30, 2024, Ubiquiti has a total stockholders' equity of $95.1 million and 60.46 million shares issued and outstanding. The company regularly pays dividends, with a declared cash dividend of $0.60 per share for the fiscal year 2024.
Recent Developments
Ubiquiti’s effective tax rate for fiscal 2024 was 17.4%, slightly up from 16.2% in fiscal 2023. The company continues to monitor the implications of global tax regulations on its operations and financial performance.
| Key Financial Metrics | 2024 | 2023 | 2022 |
|---|---|---|---|
| Cash and Cash Equivalents | $126.34 million | $114.83 million | $136.22 million |
| Inventories | $462.03 million | $737.12 million | $1.02 billion |
| Accounts Payable | $51.10 million | $154.16 million | $236.24 million |
| Total Liabilities | $1.06 billion | $1.52 billion | $1.23 billion |
Conclusion of Mission Statement
Ubiquiti Inc. is committed to providing innovative and accessible networking solutions, aligning its mission with robust financial performance and strategic market positioning.
How Ubiquiti Inc. (UI) Works
Business Overview
Ubiquiti Inc. operates as a global provider of networking products and solutions. The company focuses on democratizing network technology and offers a wide array of products for enterprises, service providers, and consumers. As of June 30, 2024, Ubiquiti reported revenues of $1.93 billion, down from $1.94 billion in the previous fiscal year.
Revenue Breakdown
Ubiquiti's revenue is primarily categorized into two segments:
- Enterprise Technology
- Service Provider Technology
The revenue by product type for the fiscal year ended June 30, 2024, was as follows:
| Product Type | Revenue (in thousands) | Percentage of Total Revenue |
|---|---|---|
| Enterprise Technology | $1,617,665 | 84% |
| Service Provider Technology | $310,825 | 16% |
| Total Revenue | $1,928,490 | 100% |
Geographical Revenue Distribution
Ubiquiti's revenues are also distributed geographically. The revenue by geography for the fiscal year ended June 30, 2024, is detailed below:
| Region | Revenue (in thousands) | Percentage of Total Revenue |
|---|---|---|
| North America | $946,428 | 49% |
| Europe, Middle East, and Africa (EMEA) | $740,113 | 38% |
| Asia Pacific | $127,901 | 7% |
| South America | $114,048 | 6% |
| Total Revenue | $1,928,490 | 100% |
Financial Performance
For the fiscal year ending June 30, 2024, Ubiquiti's financial performance metrics were as follows:
| Metric | 2024 | 2023 |
|---|---|---|
| Net Income (in thousands) | $349,960 | $407,641 |
| Net Income per Share (Basic) | $5.79 | $6.75 |
| Gross Profit (in thousands) | $739,762 | $760,731 |
| Operating Expenses (in thousands) | $240,765 | $216,165 |
| Research and Development (in thousands) | $159,768 | $145,172 |
| Sales, General and Administrative (in thousands) | $80,997 | $70,993 |
Cash Flow and Liquidity
Ubiquiti's cash flow statements for the fiscal year ending June 30, 2024, are summarized below:
| Cash Flow Activity | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Net Cash Provided by Operating Activities | $541,516 | $(145,428) |
| Net Cash Used in Investing Activities | $(11,975) | $(20,934) |
| Net Cash (Used in) Provided by Financing Activities | $(518,025) | $144,964 |
| Cash and Cash Equivalents at End of Period | $126,342 | $114,826 |
Operating Model
Ubiquiti operates mainly through a network of over 100 distributors and online retailers. The company does not employ a traditional direct sales force, instead relying on digital marketing and community engagement to drive sales. The company’s product offerings include:
- UniFi Networks
- airMAX Technology
- UISP and UniFi OS software platforms
These products and platforms support various networking needs for both enterprises and service providers, employing a competitive pricing strategy due to low-cost hardware and proprietary software.
How Ubiquiti Inc. (UI) Makes Money
Overview of Revenue Streams
Ubiquiti Inc. generates revenue primarily from two main product categories: Enterprise Technology and Service Provider Technology.
| Revenue Category | Fiscal Year 2024 (in thousands) | Fiscal Year 2023 (in thousands) | Percentage Change |
|---|---|---|---|
| Enterprise Technology | $1,617,665 | $1,621,426 | -0.2% |
| Service Provider Technology | $310,825 | $319,086 | -2.6% |
| Total Revenue | $1,928,490 | $1,940,512 | -0.6% |
Geographical Revenue Distribution
The geographical distribution of revenues demonstrates the global reach of Ubiquiti's products, with a significant portion generated in North America.
| Region | Fiscal Year 2024 (in thousands) | Fiscal Year 2023 (in thousands) | Percentage of Total Revenue |
|---|---|---|---|
| North America | $946,428 | $922,230 | 49% |
| Europe, the Middle East, and Africa | $740,113 | $759,405 | 38% |
| Asia Pacific | $127,901 | $148,502 | 7% |
| South America | $114,048 | $110,375 | 6% |
| Total Revenue | $1,928,490 | $1,940,512 | 100% |
Cost Structure and Profitability
Ubiquiti's cost of revenues and operating expenses are critical in understanding its profitability.
| Financial Metric | Fiscal Year 2024 (in thousands) | Fiscal Year 2023 (in thousands) |
|---|---|---|
| Cost of Revenues | $1,188,728 | $1,179,781 |
| Gross Profit | $739,762 | $760,731 |
| Operating Expenses | $240,765 | $216,165 |
| Income from Operations | $498,997 | $544,566 |
| Net Income | $349,960 | $407,641 |
Operating Expenses Breakdown
Operating expenses are divided into research and development (R&D) and sales, general, and administrative (SG&A) costs.
| Expense Type | Fiscal Year 2024 (in thousands) | Fiscal Year 2023 (in thousands) |
|---|---|---|
| Research and Development | $159,768 | $145,172 |
| Sales, General, and Administrative | $80,997 | $70,993 |
Cash Flow Analysis
Cash flow from operating activities highlights Ubiquiti's operational efficiency.
| Cash Flow Type | Fiscal Year 2024 (in thousands) | Fiscal Year 2023 (in thousands) |
|---|---|---|
| Net Cash Provided by Operating Activities | $541,516 | ($145,428) |
| Net Cash Used in Investing Activities | ($11,975) | ($20,934) |
| Net Cash Used in Financing Activities | ($518,025) | $144,964 |
| Net Increase in Cash and Cash Equivalents | $11,516 | ($21,398) |
Dividends and Shareholder Returns
Ubiquiti has maintained a consistent dividend payout, reflecting its commitment to shareholder returns.
| Dividend Type | Dividend Amount per Share | Fiscal Year |
|---|---|---|
| Quarterly Cash Dividend | $0.60 | 2024 |
Conclusion on Financial Performance
Ubiquiti Inc. has shown resilience in its revenue streams and profitability metrics despite slight declines in total revenue and net income. The company's focus on operational efficiency and cost management will be essential for future growth.
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