Release Date: November 13, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Innoviz Technologies Ltd (INVZ, Financial) announced two new OEM programs with a major Level 4 platform partner, expected to start production in 2026.
- The company reported Q3 2024 revenues of $4.5 million, exceeding the midpoint of their guidance range.
- Innoviz achieved a significant reduction in cash used in operations and capital expenditures, decreasing by approximately 38% from the previous year.
- InnovizTwo LiDAR technology has been enhanced with improved range, resolution, and unique IR imaging capabilities, providing a competitive edge.
- The company has a robust pipeline with over 15 programs, including a potential new Level 3 program with a top 10 automotive OEM.
Negative Points
- The company is experiencing revenue lumpiness due to the cadence of NREs, channel fill, and customer activity.
- Despite progress, Innoviz is still in the late stages of the RFQ process with some OEMs, indicating potential delays in finalizing agreements.
- The company has not disclosed the names of its new platform partner and OEMs, which may create uncertainty among investors.
- Innoviz's financial performance is still heavily reliant on NRE revenues rather than product sales, indicating a need for more stable revenue streams.
- The company faces competition from other LiDAR providers and traditional Tier 1 suppliers, which could impact future program wins.
Q & A Highlights
Q: Can you provide more details on the recently announced Level 4 commercial agreements, particularly regarding expected volumes?
A: The platform partner has a customer base of around two customers expected to deploy vehicles from 2026 onwards. Each program consists of volumes ranging from high tens of thousands to small figures of hundreds of thousands of vehicles, with nine LiDARs per vehicle, generating significant revenue per customer. - Omer Keilaf, CEO
Q: Could you give more granularity on the 2024 revenue guidance, specifically the mix between NREs and product shipments?
A: Most revenues are currently from NREs, with additional contributions from sample shipments and BMW product sales. The shipment of nine LiDARs per vehicle for the Level 4 platform is expected to grow revenue significantly. - Omer Keilaf, CEO & Eldar Cegla, CFO
Q: What are the expectations for BMW volumes, and will it be a primary revenue source next year?
A: We do not expect a high ramp in the first year of BMW's launch. Additional volume is expected from BMW's launch in China next year. We continue to work with BMW on future programs and R&D for new platforms. - Omer Keilaf, CEO
Q: For the top 10 OEM program, what needs to be done to finalize legal arrangements, and are other LiDAR providers being considered?
A: We are in advanced legal discussions with only two legal points left to negotiate. We are competing against another LiDAR provider. The expected SOP is mid-decade, with meaningful volumes anticipated. - Omer Keilaf, CEO
Q: How are you managing the company's financial profile and cash burn, and what are the implications for potential capital raising?
A: We have reduced cash burn and expect to sustain lower levels into next year. With new OEMs and expected revenues, we believe we can extend our financials well into 2026, anticipating steep revenue growth from program launches. - Omer Keilaf, CEO & Eldar Cegla, CFO
Q: Can you elaborate on the in-LiDAR infrared imaging feature and its impact on performance compared to traditional cameras?
A: The feature allows for synchronized imaging with LiDAR, reducing calibration errors and enhancing perception performance. It provides redundancy and can outperform traditional camera-based systems, offering additional features like detecting vehicle signals and lights. - Omer Keilaf, CEO
Q: What is the NRE revenue opportunity before the start of production in 2026 for the two new programs with the L4 platform partner?
A: NREs and sample sales will generate revenue pre-production. With nine LiDARs per vehicle, the revenue potential is significant, especially with multiple customers adopting the platform. 2025 is expected to be meaningful in this regard. - Omer Keilaf, CEO
Q: Could you provide early guidance on revenue and gross profit trajectory into 2025?
A: While specific guidance for 2025 is not yet available, we expect revenue growth from new programs added this year and anticipate significant launches in 2026, contributing to revenue growth. - Omer Keilaf, CEO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
