Ambarella (NASDAQ: AMBA) shares surged more than 7% after-hours Tuesday following the company’s Q2/22 report, with both revenue and EPS beating the consensus estimates and higher guidance for the third quarter.

The chip company posted quarterly non-GAAP EPS of $0.35 (vs. consensus of $0.25) and revenue of $79.3 million (vs. consensus of $75.68). Q3 revenue guidance of $88.0 - $92.0 million also came above the Street estimate of $78.7 million.

The quarterly revenue grew 58% year-over-year, driven by new product cycles in existing markets and the expansion into new markets, as mentioned by Fermi Wang, the President and CEO of Ambarella. Wang also highlighted that IoT cameras, primarily security, and automotive represent ~90% of total Q2 revenue.

While industry-wide supply chain challenges persist following the Texas freeze in Q2, Wang expects the company to recover from this event in H2.

“We believe we experienced the worst of the wafer supply shortfall from the Texas freeze in Q2, and we are seeing a 2H recovery from this event," Wang commented. "While the significant industry wide supply-chain challenges persist, we expect F2022 to represent a major inflection in our business, and we are excited about our future."

Ambarella did not repurchase any shares in the second quarter and continues to have $49.0 million available for repurchases under the $50 million program.