After Record Quarter, CEO sees 60 GHz, Wi-Fi 6, 5G Backhaul, and RDOF as Positive Trends in 2021

Key Points

  • On February 25th we hosted Atul Bhatnagar, President & CEO of Cambium Networks on our Water Tower Research Fireside Chat Series. The event replay is available to all.
  • Cambium is targeting mid-sized companies with advanced fixed wireless technologies.  As a mid-sized company itself, Cambium infrequently sells into the large enterprise market. Similarly, it does not sell into the mobile wireless market.
  • While some large network vendors are experiencing flat revenue, Cambium grew nearly 30% YoY in C4Q20, and guided for over 35% YoY growth in C1Q21. See our F4Q20 quarterly update report for details.
  • At its recent virtual user conference, the company highlighted that the networking market growth will enable growth for many networking companies and the “rising tide will lift all boats.” Bhatnagar did not seem particularly concerned about StarLink and its low-orbit satellite offering, nor about larger networking plays moving into its markets. Atul cited his view that Cambium has best-in-class spectrum efficiency and performance for his confidence.
  • Global internet penetration has grown from 25% in 2010 to 62% in 2020 and is projected to grow to 90% by 2030. However, consensus projections are for 1% growth in industry revenues over the next three years, down from a +5% CAGR over the last decade.
  • You can access our Cambium Networks initiation report and our 60 GHz industry report on our website.

Our Insights

Key Opportunity

Cambium’s new 60 GHz products play well into the new market for urban installations, and the company is now shipping in volume. As we discussed on our expert call and in our industry report, 60 GHz technology is coming into the mainstream and will likely be highlighted by Facebook’s Terragraph technology.

The Terragraph effort uses 60 GHz in a mesh architecture to deliver fiber-like speeds at a lower TCO. George Town, in the state of Penang, Malaysia is Cambium’s flagship of the forty proofs of concepts it has currently underway.

Key Challenge

There has been some concern that COVID lockdowns could slow demand. On the quarterly call, the company said it is not seeing this and had record sales. It also believes that as COVID ends, the company could see more upside from higher retail and hospitality.