analyst day presentation - seeking alpha

1

March 2018

Analyst Day Presentation

© 2018 Ambarella Inc. CONFIDENTIAL

© 2018 Ambarella Inc. CONFIDENTIAL 2

Forward-Looking Statements

2© 2018 Ambarella Inc. CONFIDENTIAL

This presentation contains forward-looking statements that are subject to many risks and uncertainties. All statements made during

this presentation other than statements of historical facts are forward-looking statements, including, without limitation, statements

regarding Ambarella’s strategy, future operations, financial position, financial targets, future revenues, projected costs, prospects,

plans and objectives for future operations, future product introductions, the future rate of our revenue growth, the size of markets

addressed by the company's solutions and the growth rate of those markets, our ability to address market and customer demands and

to timely develop new or enhanced solutions to meet those demands, our ability to retain and expand our customer relationships.

In some cases, you can identify forward-looking statements by terms such as "may," "will," "should," "could," "would," "expects,"

"plans," "anticipates," "believes," "estimates," "projects," "predicts," "potential," or the negative of those terms, and similar expressions

and comparable terminology intended to identify forward-looking statements. We have based these forward-looking statements largely

on our estimates of our financial results and our current expectations and projections about future events and financial trends that we

believe may affect our financial condition, results of operations, business strategy, short term and long-term business operations and

objectives, and financial needs as of the date of this presentation. Although the forward-looking statements contained in this

presentation are based upon information available at the time the statements are made and reflect management’s good faith beliefs,

forward-looking statements inherently involve known and unknown risks, uncertainties and other factors that may cause actual results,

performance or achievements to differ materially from anticipated future results. Important factors that could cause actual results to

differ materially from expectations are disclosed in the Ambarella's annual reports on Form 10-K and quarterly reports and Form 10-Q

filed with the Securities and Exchange Commission (the “SEC”), particularly in the sections titled “Risk Factors” and “Management’s

Discussion and Analysis of Financial Condition and Results of Operations.” You should not place undue reliance on these forward-

looking statements, which speak only as of the date hereof. We do not undertake to update or revise any forward-looking statements

after they are made, whether as a result of new information, future events, or otherwise, except as required by applicable law.

Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible

for management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or

combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may

make. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this

presentation may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-

looking statements.

Before you invest, you should read the annual and quarterly reports and other documents Ambarella has filed with the SEC for more

complete information about the company and its ordinary shares. Additional information will also be set forth in Ambarella's future

quarterly and annual reports and other filings made with the SEC from time to time. You may access these documents for free by

visiting EDGAR on the SEC web site at www.sec.gov.


Today’s PresentersFermi Wang, CEOFermi Wang is a seasoned leader, a serial entrepreneur, and a video compression technology expert. He holds several digital video-

related patents, including one of MPEGLA's core MPEG-2 and MPEG-4/AVC patents.

Prior to Ambarella, Wang was CEO and co-founder of Afara Websystems, which pioneered server throughput computing. Afara was

acquired by Sun Microsystems in July 2002. Afara's multi-core, multi-thread CPU is the critical technology in Sun’s UltraSPARC

roadmap. Before founding Afara, Wang served in senior engineering and business management roles at C-Cube Microsystems.

Wang's team was responsible for developing the world’s first MPEG CODEC chip.

Dr. Alberto Broggi, GM, Ambarella, ItalyDr. Alberto Broggi is the founder of VisLab , General Manager of Ambarella Italy, and a professor of computer engineering at the

University of Parma in Italy. Widely considered as a leading pioneer in the use of machine vision for automotive applications, Dr.

Broggi has been actively engaged in autonomous driving research and development for over twenty-five years. He was most

recently honored with the IEEE Medal for Environmental and Safety Technologies “for leadership in vehicular environmental

perception, and for setting worldwide milestones in safe and reliable intelligent vehicles” on May 25, 2017.

Les Kohn, CTOLes Kohn is well regarded in Silicon Valley as one of the leading chip architects in the industry. Prior to Ambarella, Kohn was CTO

and co-founder at Afara. After Afara was acquired by Sun, Kohn became a fellow at Sun and continued to develop Afara’s

throughput computing technology that would become the primary focus of Sun's UltraSPARC roadmap.

Kohn was also chief architect at C-Cube, where he led the development of three generations of digital video CODECs, including the

first single-chip MPEG-2 and HD/multi-stream CODECs. Prior to C-Cube, Kohn was a distinguished engineer at Sun where he was

the chief architect of UltraSPARC I and II, Sun's first 64-bit microprocessors. Before Sun, Kohn was chief architect of the Intel i860

and co-architected the National 32000 microprocessor family.

Chris Day, VP Marketing and Business DevelopmentPrior to joining Ambarella, Chris Day was President and CEO of Mobilygen, which was acquired by Maxim Integrated Products.

Before Mobilygen, Day was general manager of media processing at NXP (formerly Philips Semiconductor), where he led TriMedia

DSP efforts into video-over-IP, automotive, security, and display markets. Day has also held senior sales and marketing positions at

C-Cube, AuraVision, Motorola, and Hitachi.



2018 Analyst Day Agenda

4

• 8:30 Introduction George

• 8:45 Strategic Overview: Computer Vision Fermi

• 9:15 Technical Review: Computer Vision & Les

Automotive

• 10:00 EVA description Alberto

• 10:20 Car Demo start

• 10:30 Autonomous Development History Alberto

• 11:00 Market Overview Chris

• 11:20 Q & A Session



Today’s PresentersFermi Wang, CEOFermi Wang is a seasoned leader, a serial entrepreneur, and a video compression technology expert. He holds several digital video-






Dr. Alberto Broggi, GM, Ambarella, ItalyDr. Alberto Broggi is the founder of VisLab , General Manager of Ambarella Italy, and a professor of computer engineering at the


















$83 $93 $104 $135

$220 $235

$258

$14

$28

$53

$84

$96 $75 $37

$97

$121

$158

$218

$316 $310 $295

FY12 FY13 FY14 FY15 FY16 FY17 FY18

Ambarella Overview

High-Growth, Profitable Company Diverse End Market Exposure

($MM)

Note: Ambarella fiscal year ends January 31st.

6

FY12-FY18 (excl. GoPro) CAGR: 21%


15% 21% 23% 31% 37% 35% 28%

Non-

GAAP

EBIT

Margin

GoPro

Revenue

Excl. GoPro, revenue grew 7% in FY17 and 10% in FY18

Non-GoPro

Revenue

$295

Automotive OEM

Aftermarket

ProfSecurity

Cons. Security

Drone

Sports (GoPro)

Sports (excl. GoPro)

OtherWear. VR

Others

Broadcast

FY18

$295MM


History of Technological

Innovations Within Video


Founded

2004A3

1st 1080P60

Camcorder SoC

CV1Sampling

1st Computer

Vision SoC

A91st 4K UHD,

DSC & IP

Camera SoC

A11st full HD

Broadcast SoC

iOneSmart Camera

SoC

H24KP60

HEVC

10-bit Chip

Acquired

VisLab

A81st 4K UHD,

SVC

Infrastructure

SoC

CV2

& CV2210nm

CV SoC

A7L1st 32nm

Camera SoC

A9AQ1st Auto Camera

SoC with

Integrated

SerDes

(1) Compared to HD encoders before Ambarella.

AmbaCastTM

Disrupted the broadcast video market – replaced solutions containing >20 DSPs + FPGAs and >40 DRAMs drawing >100W

power consumption with…

1 Chip

1 DRAM

1W power &

+50% better

video quality(1)

Computer

Vision

A5S1st 45nm

Camera SoC

A61st 1080P60

Infrastructure

SoC

H14KP60 chip

with HEVC

• >200M chips shipped

• 2 – 3 chips taped out per year


Successfully Addressing Numerous Large Markets

8

Wearable Cameras

$60MM By 2022

Sports Cameras

$80MM By 2022

Security Cameras

$1.1Bn By 2022

Drones

$115MM by 2022

Virtual Reality

$100MM By 2022

© 2018 Ambarella Inc. CONFIDENTIALSource: Internal estimates of addressable silicon market.

Automotive

$4.1Bn By 2022


History of Using Technical Leadership to

Ramp New Markets Quickly


Challenges Solved / Key TechnologiesInitial Sales

Ramp ($MM)

Drones

Wearable

Security

$4

$19

$34

FY11 FY12 FY13

$5 $9$16

$46

FY11 FY12 FY13 FY14

$7

$38

$52

FY15 FY16 FY16

Selected

Customers

✓ Video Quality and Compression efficiency

✓ CV is the key for autonomous drones which will enable the

commercial drone market

✓ Power consumption is key for thermal design

✓ Compression efficiency is key for video transmission and

storage

✓ Video quality in any light condition is critical

✓ CV is required for the next generation of products

✓ Power consumption is critical for battery life and thermal

design

✓ Video quality and video stabilization are also significant

components of success

✓ CV is required for the next generation of products

Broadcast

–✓ Video is a special data type which requires an optimized

chip solution – general purpose architecture does not work

✓ Video Quality is the key to win and we’ve proven that we

are the best$2

$12

$18

FY07 FY08 FY09

Note: Ambarella fiscal year ends January 31st.


Key Ambarella Advantages


CV Solutions Leverage Same Approach

Algorithm-First

Approach

Advantages

Compression

Efficiency

Video

Quality

HD

Power

Consumption

20+ Years of

Autonomous

Experience

Acquired

2015


Computer Vision is a (R)Evolutionary

Step for Ambarella


Evolutionary:

• Natural progression from best-in-class video capture understanding and

contextualizing video in real-time

• Ambarella has a long history of technical leadership in video processing, particularly

at the edge

• Ambarella and VisLab teams have been working on computer vision for edge

devices across many large markets

Revolutionary:

• Ambarella’s CV1 is a completely new architecture, purpose-built for real-time analysis of

video using deep learning techniques

• Provide complete hardware and software stack for autonomous systems

• Ambarella’s computer vision roadmap opens the door to a multi-billion dollar

Automotive opportunity in ADAS and Autonomous Driving solutions


Front Camera ADAS / Recorder

E-Mirror

Surround View


~$70BNSystems + SW + Services

(3)

~$2BN(1)

Direct

Silicon

Opportunity

2025E

~$8BN(2)

CV Applications in Automotive Represent a

Massive Opportunity for Ambarella

(1) IDC + Gartner.

(2) NVIDIA Presentation, September 2017.

(3) Intel / Mobileye Presentation.12

2017E


Building on Existing Relationships

Within Automotive


Opportunity to leverage existing automotive channel for CV solutionsNote: Ambarella fiscal year ends January 31st. Projections based on preliminary management forecast.

Ambarella Product Introductions and

Automotive Revenue Over Time

(Aftermarket) (OEM)

Recorder E-MirrorSurround

ViewRecorder

FY11 FY17 FY18 FY19E

Initial

Rev.

($MM)

OEM Rev. Growth 135% 66%

OEM

After-

market

Approved Semiconductor

Supplier to Leading

OEMs and Tier 1s

Ambarella

In Market

E-Mirror

Recorder

Surround View


Path to Autonomous SystemsAmbarella

In Market Sampling

Computer Vision is the Key Enabler for Autonomy

E-Mirror

Recorder

Surround View

ADAS Autonomous


Human and Autonomous Vision systems will co-exist

CV1 CV2 CV22 CV3and follow-ons

A9AQ +

B6A12A

Taped-Out In-Design


Embedded Vehicle Autonomy

(EVA)



No Camera Left Behind

Computer vision is the future and Ambarella has the best

technology for computer vision at the edge



Next PresenterFermi Wang, CEOFermi Wang is a seasoned leader, a serial entrepreneur, and a video compression technology expert. He holds several digital video-






Dr. Alberto Broggi, GM , Ambarella, ItalyDr. Alberto Broggi is the founder of VisLab , General Manager of Ambarella Italy, and a professor of computer engineering at the


















Computer Vision

Technology and Opportunity



Algorithm-Driven Architecture


Programmable Platform with Optimized

Coprocessor Acceleration

Video

Compression

Image

Processing

Computer

Vision

• Best Low-Light,

HDR,

Lens Dewarp, etc.

• Unified Viewing and

Sensing

• 2x Compression

Efficiency

• >2x Power Efficiency

Compared to App

Processors

• Even Better Efficiency

Advantage Compared

to a General-Purpose

Platform


VisLab: 20+ Years of Autonomous Car

Experience


1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2007

VisLab’s AV drove in

downtown Parma

Prometheus ADAS

demo on closed track

Mille Miglia 2000+km

on Italian highways

94% autonomous

steering

DARPA Grand 132 miles

off-road 100% AV,

driverless

DARPA Urban driving

100% AV, driverless

VIAC 15km cross-

continent drive 100%

AV following

PROUD

13km in

Parma,

100% AV

DEEVA CV integration

100% AV

VW Tiguan w/ 4K cameras

TerraMax 2004-2007

Fully autonomous

Porter 2009-now

4 fully autonomous

electric vehicles

BRAiVE 2008-now

Fully autonomous

VW Tiguan

2017 4K

sensors

CV1

1993-1994

Fully manual

DEEVA 2014 Fully autonomous

With 13 stereo camera systems

+

«EVA»

Embedded

Vehicle

Autonomy

2018


Ambarella Full Autonomous Stack

21

Sensor

Fusion

Self Localization

and Mapping

Path Planning

High-Level

Control

LiDAR

Ultrasonic

Radar

Stereo Camera Perception

Obstacle Detection Terrain Modeling

Curb and Barrier

Detection

Visual

Odometry

Obstacle

Fusion

Monocular Camera Perception

VehiclesPedestrians MotorcyclesTraffic

LightsTraffic

Signs

Lane Marking

Detection

Free Space

Detection

Object

Classification


Depth Sensors

Multiple

Cameras


Now: EVA with

CV1 Perception

(replace 17 of 18 PCs)

Previous: DEEVA (18 PCs)

Road to Autonomy


© 2018 Ambarella Inc. CONFIDENTIAL 2323© 2018 Ambarella Inc. CONFIDENTIAL

• Too expensive in die size and power for edge applications

– Large internal communication overhead

– Large external DRAM bandwidth

CPU, GPU, DSP brute-force performance with large number of cores

Status Quo ≠ Long-Term Solution


CVflow Processor

1st Layer

2nd Layer

ConVKernel


Pooling

Input

Result

Pooling Input

Convolution

ConVKernel

Convolution

MatrixMultiply

• Executes data flow

graphs with

optimized operators

for superior

efficiency

• Same programming

model as deep

learning

frameworks like

Tensorflow and

Caffe

• Flexibility and high

performance

without many cores


CVFlow Deep Learning Porting

Customer Network

from training

framework

TOOL

MAGIC

HW Network

Optimized

Coefficients

SW ucode

Fast,

Efficient

CV

Tensorflow


CV2 Hardware Accelerators

High-Level

Software

Image

Pipeline

Processor

Feature

Matching

Stereo +

Feature

Processing

VMEM FEMEM

A53

DRAM

DRAM

Controller


RISC

ProcessorRISC

Processor

Vision

ProcessingVideo

Pipeline

MEM


CV1 Performance

27

• 4K (8 Megapixel) Computer Vision Automotive Engine

– Stereo: Generic Obstacle Detection up to and beyond 150m

– Mono: CNN-based classification and tracking up to and beyond 180m

– Alternatively 4x 2MP stereo pairs (8 cameras) for short range perception

• Optimized HW architecture

– Best power/performance envelope

– Allow most sophisticated algorithms to run on embedded platform



Depth Sensing for Auto Computer Vision

LiDAR Radar

Low

Power − − ✓Road Terrain

Modeling − − ✓Small Object

Detection − − ✓

Short Range (Distance) − ✓ ✓

Long Range (Distance) ✓ ✓ ✓

Low Cost − ✓ ✓

Mono Redundancy − − ✓


Stereo

28


• 2x 8MP sensors

• 2x CV1 + H2

• Data collection

• Ethernet output

• Evaluate long-range CNN and stereo

• 2x 2MP per module

• B6 serializer

• Data collection

• 2x CV1 for 4 stereo pairs (8 cameras)

• Evaluate short-range CNN and stereo

CV1 Hardware Platforms

SuperCam Long-Range Stereo SuperCam Short-Range Stereo



• Front-facing, compact

• Mono, 8MP or 2MP

sensor

• Data collection

• Evaluate Ambarella

CNN

• 2x 2MP sensors + 6x 1MP sensors

• 1x CV1 for 4 stereo pairs

• Full autonomous stack running on CV1

• Data collection

• Demoed at CES

CV1 Hardware Platforms (Continued)

MotorVu ADAS Autonomous Superdrone



CV Positive Early Feedback

✓ CV1 is a “unique combination of power and resolution” while “combining

viewing and sensing applications”

✓ Architectural approach to CVflow processor has received very positive

feedback

✓ Selected customers highly focused on LiDAR alternatives (e.g., Stereo)

✓ Potential customers evaluating performance via delivered CV1

development systems and SDK. Initial customer board designs under

way

✓ 40+ Tier I and OEM customers experienced the CES 2018 demo and

were highly impressed - virtually all requested SuperCam systems



CV Roadmap

14 nm

10 nm

10 nm

CV Coprocessor

7 nm

CV1 CV2

• Mono + Stereo CV

• 20X CNN

• H.264/265

• IQ improvements

• System level ASIL

• Q218 Samples

• Mono CV

• 4X CNN

• H.264/265

• IQ improvements

• System level ASIL

• Q218 Samples

CV22

CY2018

CV3

• Scalable ADAS

Platform for L2 to

full stack

autonomous

• ASIL B (D) Support

Perf

orm

an

ce

32

CY2017 CY2019


Superior Performance / Value


Ambarella

CV1 CV2

Architecture Ambarella Optimized HW

Deep Learning Performance

4K 15FPS 20x faster

Stereo HW HW – 4K Stereo Pair @ 30fps

Power Consumption

3-4W Typical3-4W

Typical

Image Pipeline High-Quality Human and CV

CV IPOpen:

Customer IP and/or Amba IP

H.264/5 Codec No

High-quality,

Low-latency


Demo Presentation


The EVA vehicle


Long-Range SuperCam3

75 deg

30 cm

pixels

High-level description

and objects


Long-Range SuperCam3


The Long-Range System

Monitor

PC


The Short-Range System

Monitor

PC


The Short-Range System

Monitor

Vision: Long-Range Modules

Vision: Short-Range Modules

Other sensors: Radar, GPS, Vehicle System,…

Currently, sensor fusion and planning run on the PC

PC


Short-Range Coverage


Long-Range Coverage


EVA Stereo Vision Sensing

4 Short Range stereo cameras 6 Long Range stereo cameras


EVA


World Perception


The Demo Route

» Urban Environment in Regular Traffic

Worn-out

lane markings and

narrow lanes

Series of

90-deg curves

Junction with

limited visibility

Series of traffic lights

ExpresswayMerging with

fast traffic

Traffic light with

turn on red


Ambarella Technology

– Perception running on Ambarella chips

only (CV1)

• Vision is the main sensor

• Stereo 3D perception beyond 150m

• Mono perception beyond 180m

– 3D visualization, Sensor Fusion, and

Path Planning running on PC


Computer Vision Evolution


VisLab’s Acquisition

» In June 2015, Ambarella acquired VisLab

– Spinoff of Parma University, Italy

– Active for 20+ys in Autonomous Driving (AD)

– VisLab set worldwide milestones in AD with unique challenges


VisLab’s Early Tests (1998)

» ARGO, first long test


VisLab’s Early Tests (1998)

» ARGO, First Stereo Version


VisLab Tests (2004-07)

» DARPA Challenges


VisLab Tests (2004-07)

» DARPA Challenges, trinocular system


VisLab Tests (2010)

» VIAC, VisLab Intercontinental Autonomous Challenge


VisLab Tests (2010)

» VIAC, VisLab Intercontinental Autonomous Challenge

– Stereo Terrain Modeling and Obstacle Detection

Urban Traffic Off Road


VisLab Tests (2013)

» PROUD, Public Road Urban Driving Test

– First test in mixed conditions and truly ‘driverless’

Downtown Parma, Italy – July 12, 2013


Deeva (2014)

13x Stereo Systems4x 2D Lasers


EVA (2018)


Markets



SAM – Current Markets

0

200

400

600

800

1000

1200

1400

1600

1800

FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023

VR

Flying Cam

Wearable

Car-DV

Sports

IP-cam Cons

IP-cam Pro

Security

$K


SAM Including Automotive

0

1000

2000

3000

4000

5000

6000

FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023

Surround View

Autonomous

Car Record

eMirror

ADAS

VR

Flying Cam

Wearable

Car-DV

Sports

IP-cam Cons

IP-cam Pro

Automotive

Security

$K

Source: Company estimates.


Automotive Markets



• Dash Cameras (retail after market) – estimate 20M unit SAM

• OEM Car Recorders – estimate 6-7M unit SAM, growing rapidly,

high AMBA market share, multiple China and Japan OEMs

• AVM/Surround view – 5-7M unit SAM, growing market

• Electronic Mirrors (new market) – rearview and rearview + side

cameras

• ADAS Forward Cameras

• Semi-Autonomous

• Autonomous

Automotive Camera Applications –

Multiple Entry Points for AMBA


Automotive Video Recorders Overview


Ambarella powers ‘dash cameras’

that record millions of hours of

video every day, worldwide.

Ambarella powers many OEM and

dealer-fit drive recorders, combining

best video quality with automotive

reliability.

Aftermarket

Video RecordersOEM and Dealer

Fit Recorders


Car Recorder Example: Geely

• Ambarella-based car recorder, integrated with in-car infotainment system


• Electronic mirrors provide a clear unencumbered view and visibility in

low light

• Gentex Corp partnership announced

• Ambarella advantages: low light imaging, HDR, low latency, LFM,

integrated recording capability

• AVM provides 360-degree parking assist, security

• Ambarella SoC solution provides four HD channels, advanced stitching

and recording

• CV required for next generation i.e. blind spot monitoring for three-

channel electronic mirrors (potential to replace Radar)

Electronic Mirror, AVM


Gentex three-channel electronic mirror based on Ambarella SoC

Electronic Mirrors


2017 Nissan Note –

built-in Rear-View Electronic

Mirror (competing solution)

Electronic Mirror – AMBA Superior

Image Quality

Ambarella-based Rear-View

Electronic Mirror

Ambarella-based Side-View

Electronic Mirror


Surround View / AVM

Ambarella has complete solution including SoC and SERDES


• ADAS – Forward-Facing Cameras

• 2018: 25M* units, growing rapidly

• Future - Euro NCAP requirements, example -

emergency braking (standard by 2022 in US)

• AMBA targeting with CV22 (mono)

• Level 2-3 – Partial Autonomy

• Current examples: GM SuperCruise, Audi, Tesla

• AMBA targeting with CV2 (stereo)

• Level 4-5 Autonomous

• AMBA targeting with CV3 (stereo)

ADAS, Autonomy

AMBA “MotorVu ADAS”

AMBA “SuperCam”

* Source: TSR


Security Markets



Pro & Consumer IP Camera Market


Pro IP Camera Market Overview

78© 2018 Ambarella Inc. CONFIDENTIALSource: Company estimates.

Market Trends

• Market continuing to grow rapidly as

cameras transition from Analog and HDcctv

to full IP-Cameras

• China dominating 2MP category worldwide

• Market moving to higher resolutions

• EU/US focusing on higher MP, fisheye,

multi-imager, etc.

• HEVC starting to take off in EU/US,

following China

• CV is key to all new design decisions

(MM Units)

3

15

27

55

39

91

FY17 FY23E

+27% CAGR

+13% CAGR

+15% CAGR

Low cost commodity

• Competing with HDcctv

• SoC: $2.50-$3.50

Specialized

• High Mega-pixel, AFZoom,

multi-sensor, advanced

analytics, extreme

environment

• Advanced CV features

• SoC: $10 - $50

High End >$599 ASPMainstream

$120-$599 ASPLow End <$120 ASP

Spec driven

• New features

• 3M, 5M, 4K, HEVC, HDR, low-

light

• CV/analytics features

• SoC: $3.50 - $15

SAM Over Time


Consumer IP Camera Market Overview


Source: Company estimates.

(1) AI and Sensing Cameras SAM data not shown.

Battery-powered Cameras strong growth

• Ease of installation

• Multiple cameras per household

Door bell and “spotlight” cameras

Smart Cameras demand computer vision at the edge

• Person detection, face detection, package detection

New AI cameras emerging

• ”Alexa”, “Assistant” inspiring new use-cases

Cloud storage costs driving HEVC adoption

Market Trends SAM Over Time (1)

(MM Units)

24

66

8

17

FY17 FY23E

+19% CAGR

+14% CAGR

Retail Service Providers AI Cameras Sensing Cameras

• Alexa/Assistant

integration

• Face recognition

• Home security

channels

• Mix of low-cost

and high-end

• Smart cameras

• Doorbell cameras

• Battery-powered

cameras

• Smart baby monitors

• Where innovation

happens

• Intelligent sensing

cameras replacing

PIR sensors in

homes and offices


Recent Consumer Product

Introductions

New Form Factors: Battery-powered, Doorbell, Floodlight


CV for Security

• Computer vision at the edge – enables faster response,

lower cloud costs, reduced network bandwidth, higher

accuracy

• Professional IP cameras examples:

• Smart motion detection

• Person detection, recognition, tracking

• Trip wire

• License plate recognition

• Retail analytics cameras examples:

• People counting, hot spots

• Consumer cameras examples:

• Person, pet, car detection and recognition

• Package drop and removal detection


Security Camera Opportunity


31

83

69

161

100

244

FY17 FY23

Consumer Professional

Total Units (MM)(1)

139

385

$351

$734

$490

$1,119

FY17 FY23

Consumer Professional

SAM ($MM)(1)

(1) Company estimates.


Consumer Markets



• Total camera market est. 10M units

• 4K becoming baseline for even low-cost models

• Ambarella combines dual 4K processing, low

power, high-quality photography, and complete

camera SDKs

• Action cameras transitioning to 360-degree, 4K

video

• VR cameras creating immersive content for next-

generation headsets

• Computer vision will enable smart editing

features

Sports, 360-Degree and VR



• Police Cameras

– Ambarella powers the majority of the world’s

police cameras

– China dominates the volume

– Low power, electronic image stabilization,

and efficient HEVC are key differentiators

– Computer Vision required for next generation

of designs (i.e. face recognition)

• Professional & Consumer Cameras/Glasses

– Wearable camera market remains nascent

– Snap Spectacles first high-volume glasses to

ship

Wearables



• Continuing treadmill of high resolution, high frame rates,

high-quality photography and advanced stabilization

requirements

• DJI dominant player with approx. 80% market share

– DJI introducing own silicon solutions

• New entrants Skydio, Vantage/Snap using Ambarella for

cameras

• New opportunities in both consumer and commercial

drones based on computer vision SoCs

– Ambarella “Superdrone” demoed at CES 2018

• New opportunities in robotics driven by CV, example

robotic vacuum cleaners

Drones, Robotics



• Ambarella has been competing versus larger competitors with

significantly more resources (e.g., Qualcomm, HiSilicon) for many

years and has continued to succeed based on:

– Superior Encoding Efficiency

– Superior Imaging

– Multiple Stream Processing

– Lower-Power Performance

– Lower Total BOM Cost

– Complete Software SDKs

– Complete Reference Designs

– CVflow Architecture – Best CV Power/Performance

Why Ambarella Continues to Win


Video

Quality

HD

Power

Consumption

Total

Cost

Image

Processing

Video

Compression

Computer

Vision


Thank You!


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