Ambarella Inc AMBA shares are soaring in Tuesday’s after-hours session on the heels of the company’s third-quarter financial results. Here’s a look at the key highlights from the quarter.

What Happened: Ambarella reported third-quarter revenue of $82.65 million, beating analyst estimates of $79.03 million, according to Benzinga Pro. The company reported third-quarter adjusted earnings of 11 cents per share, beating estimates of four cents per share.

“Company-specific factors are more than offsetting broad market weakness, and we are reporting 30% sequential revenue growth in fiscal Q3, above the high-end of our guidance range, with strength led again by our customers’ new products, especially those incorporating our higher priced AI inference processors,” said Fermi Wang, president and CEO of Ambarella.

“Edge AI revenue represented about 70% of our total revenue, establishing a new record level, and this momentum is expected to enable growth in both our IoT and Auto markets in F2025 and F2026.”

Ambarella ended the quarter with $226.5 million in cash, cash equivalents and marketable debt securities, up from $222.3 million at the end of the prior year’s quarter.

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What’s Next: Ambarella expects fourth-quarter revenue to be between $76 million and $80 million. Fourth-quarter gross margin is expected to be between 61.5% and 63%, and operating expenses are expected to range between $49 million to $52 million.

“With the anticipated revenue growth, we intend to drive positive operating leverage and build upon our 15 consecutive fiscal years of positive free-cash-flow,” Ambarella’s CEO added.

AMBA Price Action: Ambarella shares were up 22.42% in extended trading at $83.75 at the time of publication Tuesday, per Benzinga Pro.

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