~ Revenues of $493.0 million ~

~ GAAP Diluted Earnings Per Share of $1.26 ~

Ubiquiti Inc. (NYSE:UI) ("Ubiquiti" or the "Company") today announced its financial results for the third quarter ended March 31, 2024.

Third Quarter Fiscal 2024 Financial Summary

Revenues of $493.0 million
GAAP diluted EPS of $1.26
Non-GAAP diluted EPS of $1.28

Additional Financial Highlight

The Company's Board of Directors declared a $0.60 per share cash dividend payable on May 28, 2024 to shareholders of record at the close of business on May 20, 2024.

Financial Highlights ($, in millions, except per share data)

Income statement highlights	F3Q24	F2Q24	F3Q23
Revenues	493.0	465.0	457.8
Enterprise Technology	414.3	391.5	373.6
Service Provider Technology	78.7	73.5	84.2
Gross profit	174.1	177.6	188.5
Gross Profit (%)	35.3%	38.2%	41.2%
Total Operating Expenses	62.9	56.5	55.0
Income from Operations	111.2	121.1	133.5
GAAP Net Income	76.3	82.1	98.6
GAAP EPS (diluted)	1.26	1.36	1.63
Non-GAAP Net Income	77.6	83.3	99.5
Non-GAAP EPS (diluted)	1.28	1.38	1.65

Ubiquiti Inc. Revenues by Product Type (In thousands) (Unaudited)

	Three Months Ended March 31,				Nine Months Ended March 31,
	2024		2023		2024		2023
Enterprise Technology	$	414,345	$	373,573	$	1,185,932	$	1,217,279
Service Provider Technology		78,652		84,200		235,097		232,148
Total revenues	$	492,997	$	457,773	$	1,421,029	$	1,449,427

Ubiquiti Inc. Revenues by Geographical Area (In thousands) (Unaudited)

	Three Months Ended March 31,				Nine Months Ended March 31,
	2024		2023		2024		2023
North America	$	242,511	$	230,741	$	693,154	$	683,907
Europe, the Middle East and Africa		200,666		173,262		546,010		568,502
Asia Pacific		26,459		26,880		95,815		116,158
South America		23,361		26,890		86,050		80,860
Total revenues	$	492,997	$	457,773	$	1,421,029	$	1,449,427

Income Statement Items

Revenues

Revenues for the third quarter fiscal 2024 were $493.0 million, representing an increase from the prior quarter of 6.0% and an increase from the comparable prior year period of 7.7%.

The increase in revenues compared to the prior quarter was driven by an increase in revenue from both our Enterprise Technology platform and Service Provider Technology platform. The increase in revenues as compared to the comparable prior year period was driven by an increase in revenue from our Enterprise Technology platform, offset in part by decrease in revenue from our Service Provider Technology platform.

Gross Margins

During the third quarter fiscal 2024, GAAP gross profit was $174.1 million. GAAP gross margin of 35.3% decreased by 2.9% as compared to the prior quarter GAAP gross margin of 38.2% and decreased by 5.9% as compared to the comparable prior year period GAAP gross margin of 41.2%.

The decrease in gross profit margin as compared to the prior quarter was primarily driven by incremental excess and obsolete inventory charges and higher warehouse-related operating expenses, offset in part by lower shipping costs and favorable product mix. The decrease in gross profit margin as compared to the comparable prior year period was primarily driven by incremental excess and obsolete inventory charges, unfavorable product mix and higher shipping costs, offset in part by lower tariffs.

Research and Development

During the third quarter fiscal 2024, research and development ("R&D") expenses were $42.5 million. This reflects an increase as compared to the R&D expenses of $36.9 million in the prior quarter and an increase as compared to the R&D expenses of $38.2 million in the comparable prior year period.

The increase in R&D expenses as compared to both the prior quarter and the comparable prior year period were primarily driven by higher prototype-related expenses and higher employee-related expenses.

Sales, General and Administrative

The Company's sales, general and administrative ("SG&A") expenses for the third quarter fiscal 2024 were $20.4 million. This reflects an increase as compared to the SG&A expenses of $19.6 million in the prior quarter and an increase compared to the SG&A expenses of $16.7 million in the comparable prior year period.

The increase in SG&A costs as compared to the prior quarter was primarily due to higher travel expenses and higher fees associated with webstore credit card processing, offset in part by lower marketing expenses and professional fees. The increase in SG&A as compared to the comparable prior year period was primarily due to higher fees associated with webstore credit card processing, higher travel expenses, professional fees, higher employee-related expenses, and marketing expenses.

Interest Expense and Other, net

During the third quarter fiscal 2024, Interest expense and other, net ("I&O") expenses were $18.9 million. This reflects an increase as compared to the I&O expenses of $18.3 million in the prior quarter and an increase compared to I&O expenses of $16.5 million in the comparable prior year period.

The increase in I&O expenses as compared to the prior quarter was primarily due to increase in foreign exchange losses, offset in part by lower interest expense driven by a decrease in borrowings. The increase in I&O expenses as compared to the comparable prior year period was primarily due to higher interest expense driven by increased interest rates.

Net Income and Earnings Per Share

During the third quarter fiscal 2024, GAAP net income was $76.3 million and non-GAAP net income was $77.6 million. This reflects a decrease in GAAP net income and non-GAAP net income from the comparable prior year period by 22.6% and 22.1%, respectively, primarily driven by lower gross profit, higher operating expenses and higher interest expense. Third quarter fiscal 2024 GAAP earnings per diluted share was $1.26 and non-GAAP earnings per diluted share was $1.28. This reflects a decrease in GAAP and non-GAAP earnings per diluted share from the comparable prior year period of 22.7% and 22.4%, respectively.

About Ubiquiti Inc.

Ubiquiti Inc. is focused on democratizing network technology on a global scale — creating networking infrastructure in over 200 countries and territories around the world. Our professional networking products are powered by our UISP and UniFi software platforms to provide high-capacity distributed Internet access and unified information technology management, respectively.

Ubiquiti and the U logo are trademarks or registered trademarks of Ubiquiti and/or its affiliates in the United States and other countries. For more information, please visit www.ui.com.

Safe Harbor for Forward Looking Statements

Certain statements in this press release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements other than statements of historical fact including words such as "look", "will", "anticipate", "believe", "estimate", "expect", "forecast", "consider" and "plan" and statements in the future tense are forward looking statements. The statements in this press release that could be deemed forward-looking statements include the statement regarding our intention to pay quarterly cash dividends, any statements or assumptions underlying the foregoing, and any statement regarding future events and the future financial performance of Ubiquiti Inc. that involves risks or uncertainties.

Forward-looking statements are subject to certain risks and uncertainties that could cause our actual future results to differ materially or cause a material adverse impact on our results. Potential risks and uncertainties include, but are not limited to, the impact of public health problems, such as COVID-19, and U.S. tariffs on results; fluctuations in our operating results; varying demand for our products due to the financial and operating condition of our distributors and their customers, and our distributors' inventory management practices; political and economic conditions and volatility affecting the stability of business environments, economic growth, currency values, commodity prices and other factors that may influence the ultimate demand for our products in particular geographies or globally; impact of counterfeiting and our ability to contain such impact; our reliance on a limited number of distributors; inability of our contract manufacturers and suppliers to meet our demand; our dependence on chipset suppliers for chipsets without a short-term alternative; as we move into new markets competition from certain of our current or potential competitors who may be more established in such markets; our ability to keep pace with technological and market developments; success and timing of new product introductions by us and the performance of our products generally; our ability to effectively manage the significant increase in our transactional sales volumes; we may become subject to warranty claims, product liability and product recalls; that a substantial majority of our sales are into countries outside the United States and we are subject to numerous U.S. export control and economic sanctions laws; costs related to responding to government inquiries related to regulatory compliance; our reliance on certain key members of our management team, including our founder and chief executive officer, Robert J. Pera; adverse tax-related matters such as tax audits, changes in our effective tax rate or new tax legislative proposals; whether the final determination of our income tax liability may be materially different from our income tax provisions; the impact of any intellectual property litigation and claims for indemnification; litigation related to U.S. securities laws; and social, economic and political conditions in the United States and abroad, including the impact of the military conflict between Russia and Ukraine and the tension between China and Taiwan. We discuss these risks in greater detail under the heading "Risk Factors" and elsewhere in our Annual Report on Form 10-K for the year ended June 30, 2023, and subsequent filings filed with the U.S. Securities and Exchange Commission (the "SEC"), which are available at the SEC's website at www.sec.gov. Copies may also be obtained by contacting the Ubiquiti Inc. Investor Relations Department, by email at IR@ui.com or by visiting the Investor Relations section of the Ubiquiti Inc. website, https://ir.ui.com/.

Given these uncertainties, you should not place undue reliance on these forward-looking statements. Also, forward-looking statements represent our management's beliefs and assumptions only as of the date made. Except as required by law, Ubiquiti Inc. undertakes no obligation to update information contained herein. You should review our SEC filings carefully and with the understanding that our actual future results may be materially different from what we expect.

Ubiquiti Inc. Condensed Consolidated Statements of Operations and Comprehensive Income (In thousands, except per share data) (Unaudited)

	Three Months Ended March 31,				Nine Months Ended March 31,
	2024		2023		2024		2023
Revenues	$	492,997	$	457,773	$	1,421,029	$	1,449,427
Cost of revenues		318,897		269,297		885,407		892,023
Gross profit		174,100		188,476	$	535,622	$	557,404
Operating expenses:
Research and development		42,498		38,210		115,692		104,633
Sales, general and administrative		20,379		16,741		59,302		52,080
Total operating expenses		62,877		54,951		174,994		156,713
Income from operations		111,223		133,525		360,628		400,691
Interest expense and other, net		18,870		16,497		58,356		38,421
Income before income taxes		92,353		117,028		302,272		362,270
Provision for income taxes		16,063		18,451		56,116		58,306
Net income	$	76,290	$	98,577	$	246,156	$	303,964
Net income per share of common stock:
Basic	$	1.26	$	1.63	$	4.07	$	5.03
Diluted	$	1.26	$	1.63	$	4.07	$	5.03
Weighted average shares used in computing net income per share of common stock:
Basic		60,461		60,441		60,452		60,432
Diluted		60,463		60,455		60,455		60,451

Ubiquiti Inc. Reconciliation of GAAP Net Income to Non-GAAP Net Income (In thousands, except per share data) (Unaudited)

	Three Months Ended									Nine Months Ended March 31,
	March 31, 2024			December 31, 2023			March 31, 2023			2024			2023
Net Income	$	76,290		$	82,116		$	98,577		$	246,156		$	303,964
Share-based compensation:
Cost of revenues		44			35			24			113			47
Research and development		1,272			1,161			942			3,567			2,524
Sales, general and administrative		348			310			280			991			823
Tax effect of Non-GAAP adjustments		(399	)		(361	)		(294	)		(1,119	)		(801	)
Non-GAAP net income	$	77,555		$	83,261		$	99,529		$	249,708		$	306,557
Non-GAAP diluted EPS	$	1.28		$	1.38		$	1.65		$	4.13		$	5.07

Shares outstanding (Diluted)		60,463			60,451			60,455			60,455			60,451
Weighted-average shares used in Non-GAAP diluted EPS		60,463			60,451			60,455			60,455			60,451

Use of Non-GAAP Financial Information

To supplement our condensed consolidated financial results prepared under generally accepted accounting principles, or GAAP, we use non-GAAP measures of net income and earnings per diluted share that are adjusted to exclude certain costs, expenses and gains such as share-based compensation expense and the tax effects of these non-GAAP adjustments.

Reconciliations of the adjustments to GAAP results for the periods presented are provided above. In addition, an explanation of the ways in which management uses non-GAAP financial information to evaluate its business, the substance behind management's decision to use this non-GAAP financial information, material limitations associated with the use of non-GAAP financial information, the manner in which management compensates for those limitations, and the substantive reasons management believes that this non-GAAP financial information provides useful information to investors is included under the paragraphs below.

Usefulness of Non-GAAP Financial Information to Investors

We believe that the presentation of non-GAAP net income and non-GAAP earnings per diluted share provides important supplemental information regarding non-cash expenses, significant items that we believe are important to understanding our financial, and business trends relating to our financial condition and results of operations. Non-GAAP net income and non-GAAP earnings per diluted share are among the primary indicators used by management as a basis for planning and forecasting future periods and by management and our board of directors to determine whether our operating performance has met specified targets and thresholds. Management uses non-GAAP net income and non-GAAP earnings per diluted share when evaluating operating performance because it believes that the exclusion of the items described below, for which the amounts or timing may vary significantly depending upon the Company's activities and other factors, facilitates comparability of the Company's operating performance from period to period. We have chosen to provide this information to investors so they can analyze our operating results in the same way that management does and use this information in their assessment of our business and the valuation of our Company.

About our Non-GAAP Net Income and Non-GAAP Earnings per Diluted Share

We compute non-GAAP net income and non-GAAP earnings per diluted share by adjusting GAAP net income and GAAP earnings per diluted share to remove the impact of certain adjustments and the tax effect of those adjustments. Items excluded from net income are:

Share-based compensation expense
Tax effect of non-GAAP adjustments, applying the principles of ASC 740

These non-GAAP measures are not in accordance with, or an alternative to, GAAP and may be materially different from other non-GAAP measures, including similarly titled non-GAAP measures used by other companies. The presentation of this additional information should not be considered in isolation from, as a substitute for, or superior to, net income or earnings per diluted share prepared in accordance with GAAP. Non-GAAP financial measures have limitations in that they do not reflect certain items that may have a material impact upon our reported financial results.

For more information on the non-GAAP adjustments, please see the table captioned "Reconciliation of GAAP Net Income to non-GAAP Net Income" included in this press release.

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