CPTN - Earnings call transcript Q1 2022

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Operator

Good afternoon, everyone, and welcome to Cepton's First Quarter 2022 Earnings Conference Call. Today's call is being recorded, and we have allocated one hour for prepared remarks and Q&A. At this time, I'd like to turn the conference call over to Hull Xu, Chief Financial Officer.

You may begin.

Hull Xu

Thank you, and welcome, everyone, to Cepton's First Quarter 2022 Earnings Call and Business Update. Jun and is Executive today me Pei, Chief Co-Founder Officer. With

earnings financial to statements the call, our company's GAAP non-GAAP statements the be measures from we in superior slides the performance with substitute our as earnings that should a considered may release The or today's of are in the our current During to based measures refer comments risks, the expressed results harbor including and accompany this those or the unaudited number statements earnings relating or call. regarding future may are a not on like SEC. filings to implied of would GAAP. future non-GAAP non-GAAP financials in release materially by statements to these release. Reconciliation subject differ prepared financial I other described in Actual factors, call periods operational measures expected measures due forward-looking may accordance US and and those statements safe for company's earnings or our periods. conference everyone the are made uncertainties with forward-looking that and and to release. to for include discussed for this included those the expectations call forward-looking in our performance in in during remind financial contained These

of a are events, to We as those as result future commitment required not undertaking law. any except statements by update

of as is that replay this this find earnings slides the this webcast accompany at As can investors.cepton.com. a well release as quick being recorded, call call you and reminder, call and the

Jun. call over would I turn like Now to to the

Jun Pei

Call. Thank and Quarter good joining afternoon, Thank for First you you, Hull, everyone. Cepton's Earnings

review will We you. a business results with and first quarter financial update XXXX provide

April CFO, continue his Financial with XXXX today role executing our forward milestones as in earnings as first call I year announcement, Hull you to for Officer. expanded working Hull our X from in Chief this is momentous Xu’s know, look may As to our Cepton.

that philosophy must between cost Our performance, lidar’s and a balance it achieve the designed are reliability. with

in is Motors, the an philosophy to direct series that validates to lidar not autonomy to I'm part a for win our demonstrate for I This commercial is on execution. of units safety only automotive is ADAS Ultra safe will off sites than production integral It have OEM US. but should shipped of start lidar report, program. MMT be date. happy Cepton’s the also production available of luxury Our enabled with The been the Cruise viability General across that an award support series our of the multiple Cepton ADAS, result shipping D-samples D-sample largest we everyone. started manufacturing feature. lidar-enabled update more design to have

As a hardware phases starting our the reminder, intact. in consumer in with production final been execution, available D-samples the initial In validation in final what long vehicles. has XXXX, process, with stage is represents lidar’s nearing Cepton making of engagement a

By year. Cepton the vehicles four equipped of a end years next start beyond. months this few within towards Cepton from to expect where salable with and the will then, the We of be for supplier is be sole lidar just production

production series X our the OEMs also global will support scale require will production products. of only as Lidar in safety KOITO Manufacturing it component for We started processes, preparation closely being is behind X not product. software ADAS, with to our Most scale continue but partner help Tier production. the stand partnership critical our have to Tier commercial Tier X manufacturing who scale of future We supplier growing anticipate equipment a supplier for work to to partner, meet and transferring important this and wins, demand With a drive have production.

continue Speaking validation be on believe the more commercial automotive, to ultimate broadly I differentiation. will that

place give attention safety. award other series a and momentum significant Lidar also OEMs, in but attention from Our automotive us on not the increased the production only importance of

with companies. for progress LIDAR OEMs We mid-three the We and top and on large-scale in continue down implemented consumer top way order price unit in trucking must that other start engagement believe to everyday per its accelerate XX in to point work digit below to adoption. $X,XXX make vehicles be to order

a unique high-quality cost placed everyday without technology safety. and compromising can balance be Cepton to MMT performance, a balance reliability. of into consumer Lidar achieved Our vehicles This enables that deliver

are Lidar Series In to addition working top ADAS to Nova, our progress OEMs. near-range award, make on which won we also largest trucking the continue with with automotive production product, forward long-range the which and phasing Lidar, we

B to samples We quarter. are for Nova to evaluation this OEMs ship starting

from low the and Vehicle integration form key factor the power consumer. innovation. offers is distinct advantages companies one in the our behind such company product the for and with production only benefit the product One integration, Lidar this the strengths of MMT our of major OEM reliability that few of placed flexibility very This the of is our ability in for be Lidar and capability flexibility series in the the Lidar a stems as for consumption with We're esthetic and award. the vehicle the our to design small benefit industry windshield. vehicle

alone. calls other many this on interested OEMs feature from received have automotive We

have We awarded strong on vehicles enthusiasm a start in us to consumer is been from demand platforms have off that seen consumers XXXX. across and accelerated automotive to multiple

we provide the and created the to market over return largest Lidar product mind first will and coming this that was of we addressable one application expect investment. be Lidar in the on Our Lidar of will ADAS the XX% demand. represent capture ADAS be companies to the decades, consumer with rising In

our smart many have volumes. of Lidar meaningful a see to performance growing and software, customers. stringent sensors we mature for are purchase perception our particularly applied There phase automotive beyond leading order market, engagement both and We from infrastructure the learnings demand the proof-of-concept to our for and the cost to where beginning Lidar requirement is our

up the perception reach software has helped set us who solution. demand many a customers, Moving complete

reduction. focus the to drive performance further enhancement ASIC call the milestones you the our and the our OEM design forward on On execution our will of to we have sharing horizon, cost our the year. forward Hull In We over rest the for we to with of series completed momentum news production quarters. more coming will building in turn look which looking and remains Xu. are near-term, I CFO, now second

Hull Xu

in February, In million. closed our transaction entity, the received $XX.X we renamed total We of amount combination with we Acquisition Growth with Corp. fees. Koito $XX Thank anchored investment net approximately of surviving business you, the Jun. Inc. PIPE Concurrent the and Capital closed million Cepton the by

and $X.X was sequentially stock-based re-measurement and first Moving per $XX.X negative XXX.X adjustments on and a quarter re-measurement compensation gain share million, Weighted XXX% liabilities. share. outstanding and was results. Total million, include related Non-GAAP of on on a to of SPAC revenue and million, transaction, million. our million average GAAP shares Non-GAAP Non-GAAP liability, quarter $XX.X the both basic our per $XXX.X $X.X $X.XX consists costs million diluted. net diluted XX% per to it's the warrant revenue. gain million product non-recurring share million our of $X.X net for $X.X transaction and $X.XX was loss or on $XX.X $X.XX diluted adjusted XXX% earn-out first was million EBITDA year-over-year, $XX.X for income a or of up basis, shares. was basic million quarter share,

and in and March million consists of of equity commitment up a available cash of approximately $XX the approximately As facility had in $XXX Total short-term available Park XX, million Capital. million we on $XX liquidity from XXXX, liquidity Lincoln remaining purchase $XXX to loan to million. Trinity investments,

de back revenue weighted achieved expect as off earnings the our As equipped remain development the milestones. on call, with with be year track have end automotive, complete we of FY said half on to to phase salable such LiDAR. sample our in the remaining and XXXX by vehicles we Starting we XXXX the programs

software year. units drive preparation infrastructure, Helios ADAS robust execution in the plants We series On remain seeing winning SORP we multiple We manufactured for will multiple additional the equipping scale production as States LIDAR models production. smart this vehicle expect customers P thousand several largest and industry's demand well Vista product and the to to award awards. the are this for in as throughout assembly year, our across United as on of volume and our our world meaningful from focused on extremely mature projects around date ship

We and long-term are growth market be path in leader. share to confident plan a our our

call the open to like for questions. I'd Now

Operator

your will comes Matthew from and from Our ahead question now Maxim Please go the begin today question. first Instructions] [Operator we gentlemen, session. Group. question-and-answer Galinko with Ladies

Matthew Galinko

-- if that on update Can in elevated how Hey, And view, any point risk give seeing good if for chain? managing my your you're an afternoon. questions. the of you Thanks that? what you're you're -- from supply taking us and there's if

Jun Pei

for Pei Jun Thank here, the of you question. much CEO very Cepton.

the I with For supply our the are there with limited right Senior are answering also very Business Vice actually awareness in Development, D But Hourtienne of us the Q&A specifically supply us, Mitch A, B, joining chain, volume questions. of to session, chain. issues we stage C, into certainly the President requirement. for the coming have sample much Very the now, fortunately

all samples General Ultra we're needed being a alerted at execution Motors this hitting will But the making much where We a at year, preparation quantity Frankly, huge Cruise current all SOP the but obstacle we're our issues, chain supply vigilant, not XXXX, for affecting point. are actually not the the supply start. program. for coming lot with this it's to for very of actually

Mitch Hourtienne

as add. us KOITO address General mitigation Mitch This have just Hourtienne. help Motors, And this issue. with us Yes. working they processes When concerns been to Thanks, with tremendous there. with is they've Jun. you're I'll any risk working and needed that

infrastructure it's expensive those pass get little been more some to on lower and we've side, little able procure that a our components, to to volume. for smart the the part, that's bit most Yes, bit become increase customers. but and, more harder key cost On a

Matthew Galinko

Got it.

a apologize, by I did prepared this. I provide the But then, it in mentioned you follow-up, or update missed guidance provided, And you previously but if I -- your sure you as helpful. That's Okay. you not that? if standing I'm are guess, to remarks, an

Jun Pei

Yes.

We our guidance. by current are actually standing

we is a execution the The program, years almost At We process a Cruise from XXXX the we the on SOP program, of started time GM XXXX. of until until the the Ultra win. XXXX, have we of in get work schedule win is now, awarded hard the SOP early were all was Specifically, time, a -- XXXX. after design still this three very design schedule.

guidance. So, yes, we stick to our

Hull Xu

color. little Yes. I to Matt, Hull. bit more a want just this Hi, add is

the mentioned XXXX, it we're year you If about on And the that you weighted. end right any may the as have half now. mentioned, -- but be back side units, we not that the now, for some asked to of is constraints right supply going seeing we -- those constraints. So demand the the revenue not worse becomes seeing we're meeting towards issues and

So we're our by full year guidance. standing

Matthew Galinko

queue. And with who I well, one I -- been been working you're back last with. now jump do you. it's MORNING, with you Thank and in of I that guess GOOD you've guess, and it's then quarters a production question, public I'll couple the approach been

over how are I the move guess, quickly OEMs with has that some you. through quarters? the to or are how or last move Thank through changed of other to the pipeline, give type Just as follower fast update an of you you And that more move GM, development? couple us on closer responding pipeline the OEMs production seeing

Jun Pei

Yeah, the more elaborate attention GM actually from other couple a getting with announcement great up we're to let question. OEMs. bit past on lot a for today I'll Mitch Certainly, quarters, that. the more little a that's of

Mitch Hourtienne

least top engaged More Yeah. The XX OEMs. We're excess a a phase. those few OEM. RFI months can still of Matthew, half auto year, the is of this in vary Mitch. were at of in on from than XX phase the depending to global currently RFI with all the

say would of more additional solidifying GM interest because as on three program in details interest we out. about Cruise and have our lot gained more XX and from about OEMs eye cost top So the the come more performance is vehicle keeping development milestones. integration, an those Ultra I a

So, accelerating. yes, to definitely summarize, it is

Matthew Galinko

you. Thank

Operator

Sam from Capital comes question go Please next with Our Instructions] your question. Craig-Hallum Group. ahead from Peterman [Operator

Sam Peterman

seeing Nova. I interesting the ship ask B-sample. It's that Hi, taking relative to on to you're how and question. your you for my pretty seen you've just guys. curious broad was products? starting what I you're Thanks lidar for to Novo that interest are for seeing is long-range want what

Jun Pei

latest the gravity with is automotive for with towards to Well, general, again, progress there win thanks In is the that and industry from many asking GM the fronts, going lidar question. design entire a lidar’s Nova the This the near-range short will be in safety have of lidar’s. getting lidar the developed. long-range traction. future. the range and we include both It's lot used automotive for is really other

can fill the product. this enthusiasm Mitch So for on in

Mitch Hourtienne

Yeah, definitely.

the As for space, that lidar, Jun range, range are automotive short announced OEMs look already applications. beginning to especially adoption already lidar additional have range, near indicated, applications medium which the includes of at

our it's we're the look validating potential reusing Nova Motors. I product, technology, interesting customers, think if for which is at for you MMT General what's

So we're down. simply that scaling technology

So the the cost other to maturity, proven is market. reliability projections, on all the the relative solutions

the that's interest. So

terms lidar applications than and automotive. even and expands order use say of I cases, higher long-range an would In it's of well-beyond magnitude

in our So nova product. there's amount just of a tremendous interest

Sam Peterman

detail. that for Thanks

recent in China plans be changed if events to could OEMs Second timing or that question, the deployment last if outlooks or at I on all? you curious about for And talk would call have engagement you good OEMs that was with there. pretty talked great. some

Hull Xu

this Sam, Hull. is Hey

our is So, progress China continuing.

the of to to team So, of up opportunity we automotive a X to The the address China market and is is, find plan China have overall know, with that work global confidence as at Tier in together. part market. bring trying is of China the the XX% We're and expertise. our application you also technology terms

we a is actually of one large are that the quite fast. on. In it China, technology So, is innovation focused speed

If in out. we of EVs, near-term, you their they're two follow LiDARs about near-term, actually years right, the when putting it's somewhat think development

announcements do to we expect future from year. wins program So, us, pay to this some have attention look --

Sam Peterman

of, Okay, that's kind how one, about question, great. then figure knowing anything works, so And simple but I'd that a last it. not this ask

going Koito transfer expect When do be On to ongoing. are production there to that pretty a risks any is detail that the And ramping? or complete? process great. to you there in process, the around equipment smoothly simple transfer transfer -- and that's would Any is that that

Jun Pei

-- simple a Yes. well That a or over tooling technology is process software part the year control component. the it's transfer started not whether ago, process. every the It actually of actually

So, all year. are being the the throughout things transferred last of

Now, this final it's stage. at actually

seen to was production see. In rewarding action. line fact, I, myself, have in very That the

The Finally, risk there's at is volume a production place. higher pretty point. process of this that read -- in much actually

Sam Peterman

Okay, that's That's great. all guys. for Thanks me.

Operator

I'd floor that, closing with we'll today's to ladies be session. management the over to And turn concluding and any gentlemen, remarks. question-and-answer like back for

Jun Pei

platforms Cepton you Yes. the we position that really this see you'll is being again attention very for into Ultra Cruise years LiDAR of be years in competitive very this and joining conference us Cruise at a supplying execution. enviable of as on road. differentiated call. Thank this cars and marketplace many coming the Ultra for sole us of pay sourced the in your with will this the execute and cars to Please our program year program

Operator

conclude we'll joining. gentlemen, for today's thank with conference that, presentation. and and you Ladies We do call

lines. You may disconnect your now

Cepton (CPTN) 11 May 222022 Q1 Earnings call transcript