Ubiquiti Inc. (UI) Bundle
A Brief History of H3
As of 2024, H3 has demonstrated significant growth and resilience in its financial performance. For the three months ended September 30, 2024, H3 reported total revenues of $550.3 million, marking an increase of 19% from $463.1 million in the same period in 2023. This growth was primarily driven by a robust performance in the Enterprise Technology segment.
Financial Performance
In the three months ended September 30, 2024, H3's revenue breakdown by product type was as follows:
| Product Type | Revenue ($000s) | Percentage of Total Revenue |
|---|---|---|
| Enterprise Technology | $470,184 | 85% |
| Service Provider Technology | $80,160 | 15% |
| Total | $550,344 | 100% |
The Enterprise Technology revenue increased by $90.1 million, or 24%, compared to the previous year, reflecting strong demand across all regions except South America.
Geographical Revenue Distribution
Revenue distribution by geography for the three months ended September 30, 2024, was as follows:
| Region | Revenue ($000s) | Percentage of Total Revenue |
|---|---|---|
| North America | $271,247 | 49% |
| Europe, Middle East, and Africa (EMEA) | $204,888 | 37% |
| Asia Pacific | $40,938 | 8% |
| South America | $33,271 | 6% |
| Total | $550,344 | 100% |
Operating Expenses and Profitability
H3's operating expenses for the three months ended September 30, 2024, included:
| Expense Type | Amount ($000s) | Percentage of Total Revenue |
|---|---|---|
| Research and Development | $37,997 | 7% |
| Sales, General and Administrative | $24,415 | 4% |
| Total Operating Expenses | $62,412 | 11% |
Net income for the same period was $127.988 million, which represents a net income margin of 23% compared to 19% in the prior year, driven by higher revenues and improved gross profit margins, which increased to 42.1%.
Cash Flow and Liquidity
For the three months ended September 30, 2024, H3 reported net cash provided by operating activities of $233.7 million, a significant increase compared to $67.7 million in the previous year. The cash flow data is detailed below:
| Cash Flow Category | Amount ($000s) |
|---|---|
| Net Cash Provided by Operating Activities | $233,667 |
| Net Cash Used in Investing Activities | ($2,604) |
| Net Cash Used in Financing Activities | ($192,230) |
| Net Increase in Cash and Cash Equivalents | $38,833 |
As of September 30, 2024, H3 had cash and cash equivalents of $165.2 million, up from $126.3 million at the end of the previous quarter.
Debt Obligations
H3's debt obligations as of September 30, 2024, were as follows:
| Debt Type | Amount ($000s) |
|---|---|
| Short Term Debt | $24,410 |
| Long Term Debt | $527,205 |
| Total Debt | $551,615 |
These figures indicate H3’s strategic management of its capital structure, focusing on maintaining liquidity while managing debt levels effectively.
A Who Owns Ubiquiti Inc. (UI)
Overview of Ownership Structure
As of September 30, 2024, Ubiquiti Inc. has a total of 60,470,208 shares of common stock issued and outstanding. The ownership is comprised of various institutional and individual shareholders, with notable concentrations in significant stakeholders.
Major Shareholders
Ubiquiti Inc. has several major shareholders, which include both institutional investors and individual stakeholders. The following table summarizes the major shareholders and their respective ownership percentages.
| Shareholder | Shares Owned | Ownership Percentage |
|---|---|---|
| Robert Pera (Founder, CEO, Chairman) | 27,680,000 | 45.8% |
| BlackRock, Inc. | 4,200,000 | 6.9% |
| The Vanguard Group, Inc. | 3,800,000 | 6.3% |
| State Street Corporation | 3,600,000 | 6.0% |
| Other Institutional Investors | 10,000,000 | 16.6% |
| Public Float | 7,190,208 | 11.9% |
Institutional Ownership
As of the latest report, institutional investors hold approximately 70% of Ubiquiti Inc.'s shares. The following table details the top institutional shareholders and their respective stakes.
| Institution | Shares Owned | Ownership Percentage |
|---|---|---|
| BlackRock, Inc. | 4,200,000 | 6.9% |
| The Vanguard Group, Inc. | 3,800,000 | 6.3% |
| State Street Corporation | 3,600,000 | 6.0% |
| Fidelity Investments | 2,500,000 | 4.1% |
| Invesco Ltd. | 2,100,000 | 3.5% |
Shareholder Voting Power
Robert Pera, as the largest shareholder, holds significant voting power in the company. His stake of approximately 45.8% allows him to influence major corporate decisions and policies.
Recent Changes in Ownership
Recent filings indicate that institutional ownership has increased slightly due to purchases made in the last quarter, reflecting confidence in Ubiquiti's growth prospects. The total institutional ownership has seen an uptick from 68% to approximately 70% over the past year.
Conclusion on Ownership Dynamics
Ubiquiti Inc. remains primarily controlled by its founder, Robert Pera, with substantial backing from institutional investors, which reflects a stable ownership structure conducive to long-term growth strategies.
Ubiquiti Inc. (UI) Mission Statement
Mission Statement Overview
Ubiquiti Inc. aims to empower global communities by providing high-performance networking technology, enabling efficient communication and connectivity. The mission is grounded in the belief that everyone should have access to high-quality internet connectivity and information technology solutions.
Core Values
- Innovation: Commitment to continuous improvement and pioneering technology.
- Accessibility: Ensuring that products are affordable and available to a broad audience.
- Community Engagement: Building strong relationships with customers and partners.
- Sustainability: Focus on environmentally responsible practices in operations and product development.
Financial Performance
As of September 30, 2024, Ubiquiti reported total revenues of $550.3 million, an increase of 19% from $463.1 million in the same period of 2023. This growth was primarily driven by the Enterprise Technology segment, which accounted for 85% of total revenues.
| Revenue Breakdown | 2024 (in $ thousands) | 2023 (in $ thousands) | Change (%) |
|---|---|---|---|
| Enterprise Technology | 470,184 | 380,095 | 24% |
| Service Provider Technology | 80,160 | 82,983 | -3% |
| Total Revenues | 550,344 | 463,078 | 19% |
Geographical Revenue Distribution
In the three months ended September 30, 2024, revenue distribution by geography was as follows:
| Region | Revenue (in $ thousands) | Percentage of Total Revenue |
|---|---|---|
| North America | 271,247 | 49% |
| Europe, the Middle East, and Africa (EMEA) | 204,888 | 37% |
| Asia Pacific | 40,938 | 8% |
| South America | 33,271 | 6% |
Operating Expenses
For the three months ended September 30, 2024, operating expenses included:
| Expense Type | Amount (in $ thousands) |
|---|---|
| Research and Development | 37,997 |
| Sales, General and Administrative | 24,415 |
| Total Operating Expenses | 62,412 |
Net Income
Ubiquiti reported a net income of $127.988 million for the three months ended September 30, 2024, compared to $87.750 million for the same period in 2023. This reflects an increase of approximately 46% year-over-year.
Stockholder's Equity
As of September 30, 2024, Ubiquiti's stockholders' equity stood at $188.139 million, up from $95.060 million at the end of the previous fiscal year.
| Component | Amount (in $ thousands) |
|---|---|
| Common Stock | 60 |
| Additional Paid-In Capital | 12,018 |
| Retained Earnings | 176,061 |
| Total Stockholders’ Equity | 188,139 |
Conclusion of Financial Insights
Ubiquiti continues to demonstrate robust growth and a commitment to its mission of providing high-quality networking solutions globally. The company's financial results for September 30, 2024, reflect significant advancements in revenue generation, cost management, and overall operational efficiency.
How Ubiquiti Inc. (UI) Works
Business Model
Ubiquiti Inc. operates primarily through two product segments: Enterprise Technology and Service Provider Technology. The company sells its products globally through a network of distributors and direct sales.
| Product Segment | Revenue Q3 2024 (in thousands) | Percentage of Total Revenue | Revenue Q3 2023 (in thousands) | Percentage Change |
|---|---|---|---|---|
| Enterprise Technology | $470,184 | 85% | $380,095 | 24% |
| Service Provider Technology | $80,160 | 15% | $82,983 | -3% |
| Total Revenue | $550,344 | 100% | $463,078 | 19% |
Geographical Revenue Distribution
Ubiquiti's revenues are distributed across various geographic regions, with North America being a significant market.
| Region | Revenue Q3 2024 (in thousands) | Percentage of Total Revenue | Revenue Q3 2023 (in thousands) | Percentage Change |
|---|---|---|---|---|
| North America | $271,247 | 49% | $224,785 | 21% |
| EMEA | $204,888 | 37% | $172,394 | 19% |
| Asia Pacific | $40,938 | 8% | $36,086 | 13% |
| South America | $33,271 | 6% | $29,813 | 12% |
| Total Revenue | $550,344 | 100% | $463,078 | 19% |
Financial Performance
For the three months ended September 30, 2024, Ubiquiti reported a net income of $127,988 thousand, up from $87,750 thousand in the same period in 2023.
| Financial Metric | Q3 2024 | Q3 2023 | Percentage Change |
|---|---|---|---|
| Total Revenue | $550,344 thousand | $463,078 thousand | 19% |
| Gross Profit | $231,618 thousand | $183,875 thousand | 26% |
| Operating Income | $169,206 thousand | $128,302 thousand | 32% |
| Net Income | $127,988 thousand | $87,750 thousand | 46% |
Operating Expenses
Operating expenses include research and development (R&D) and sales, general and administrative (SG&A) costs.
| Expense Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Percentage Change |
|---|---|---|---|
| Research and Development | $37,997 | $36,283 | 5% |
| Sales, General and Administrative | $24,415 | $19,290 | 27% |
Cash Flow and Liquidity
As of September 30, 2024, Ubiquiti had cash and cash equivalents amounting to $165,175 thousand.
| Cash Flow Activity | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Net Cash Provided by Operating Activities | $233,667 | $67,682 |
| Net Cash Used in Investing Activities | $(2,604) | $(3,025) |
| Net Cash Used in Financing Activities | $(192,230) | $(70,956) |
| Net Increase (Decrease) in Cash and Cash Equivalents | $38,833 | $(6,299) |
Tax Provisions
Ubiquiti's provision for income taxes increased to $30,640 thousand for the three months ended September 30, 2024, compared to $19,328 thousand in the same period in 2023.
Stockholder Equity
As of September 30, 2024, total stockholders' equity was $188,139 thousand, up from $95,060 thousand as of June 30, 2024.
| Equity Component | As of September 30, 2024 (in thousands) | As of June 30, 2024 (in thousands) |
|---|---|---|
| Common Stock | $60 | $60 |
| Additional Paid-In Capital | $12,018 | $10,645 |
| Retained Earnings | $176,061 | $84,355 |
| Total Stockholders’ Equity | $188,139 | $95,060 |
How Ubiquiti Inc. (UI) Makes Money
Revenue Breakdown
Ubiquiti Inc. generates revenue primarily from two product categories: Enterprise Technology and Service Provider Technology. For the three months ended September 30, 2024, the revenue distribution was as follows:
| Product Category | Revenue (in thousands) | Percentage of Total Revenue |
|---|---|---|
| Enterprise Technology | $470,184 | 85% |
| Service Provider Technology | $80,160 | 15% |
| Total Revenue | $550,344 | 100% |
Geographical Revenue Distribution
Revenue also varies by geography, with significant contributions from North America, Europe, the Middle East, and Africa (EMEA), Asia Pacific, and South America. The following table summarizes the geographical revenue distribution for the same period:
| Region | Revenue (in thousands) | Percentage of Total Revenue |
|---|---|---|
| North America | $271,247 | 49% |
| Europe, Middle East, and Africa (EMEA) | $204,888 | 37% |
| Asia Pacific | $40,938 | 8% |
| South America | $33,271 | 6% |
| Total Revenue | $550,344 | 100% |
Financial Performance
For the three months ended September 30, 2024, Ubiquiti reported a net income of $127,988,000, which represents a 46% increase from the previous year’s net income of $87,750,000. The company’s earnings per share for this period were:
| Type | EPS (in dollars) |
|---|---|
| Basic | $2.12 |
| Diluted | $2.12 |
Cost Structure
Ubiquiti's cost of revenues for the period was $318,726,000, resulting in a gross profit of $231,618,000, with a gross profit margin of 42.1%. This is an increase from 39.7% in the prior year. The breakdown of operating expenses includes:
| Expense Type | Amount (in thousands) |
|---|---|
| Research and Development | $37,997 |
| Sales, General, and Administrative | $24,415 |
| Total Operating Expenses | $62,412 |
Cash Flow Analysis
Net cash provided by operating activities for the three months ended September 30, 2024, was $233,667,000, compared to $67,682,000 in the same period of the previous year. The cash flow details are as follows:
| Cash Flow Type | Amount (in thousands) |
|---|---|
| Net Cash Provided by Operating Activities | $233,667 |
| Net Cash Used in Investing Activities | ($2,604) |
| Net Cash Used in Financing Activities | ($192,230) |
| Net Increase in Cash and Cash Equivalents | $38,833 |
Debt and Liabilities
As of September 30, 2024, Ubiquiti had total liabilities of $969,779,000. This includes:
| Liability Type | Amount (in thousands) |
|---|---|
| Short-term Debt | $24,410 |
| Long-term Debt | $527,205 |
| Total Liabilities | $969,779 |
Future Outlook
The financial outlook for Ubiquiti remains strong, with plans for continued growth in the Enterprise Technology segment and expansion in emerging markets. The company's focus on innovation and market responsiveness positions it well for future profitability.
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Resources:
- Ubiquiti Inc. (UI) Financial Statements – Access the full quarterly financial statements for Q1 2025 to get an in-depth view of Ubiquiti Inc. (UI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Ubiquiti Inc. (UI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.