Earnings call transcript Q1 2023

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Operator

Good day, and welcome to Ceptons' First Quarter 2013 Earnings Call and Business Update. At this time, all lines in a listen-only mode.

Following the presentation, we will conduct a question-and-answer session. [Operator Instructions] This call is being recorded on Tuesday, May 9, 2023.

I would now like to turn the conference over to Hull Xu, Chief Financial Officer. ahead. go please Hull,

Hull Xu

Vice welcome update. first Jun With Executive Hourtienne, and and Development. call Pei, XXXX and Chief Senior Mitch and business me Officer; of to you, Business quarter Ceptons' earnings Co-Founder President Thank today are

with refer we the prepared The non-GAAP substitute release. in our unaudited financial for Reconciliations as measures a measures performance should GAAP. or During measures may GAAP accordance measures our to in of non-GAAP the financial are in earnings to our call, considered superior earnings non-GAAP and for not be included release.

like everyone forward-looking financial the slides statements to accompany expectation release and the to Company's I to statements for made the would regarding and earnings the may Company's current Safe and operational These remind on performance in call this based subject conference relating expected statements call. contained are future comments statements, forward-looking that our Harbor include in periods. that are this

may from including today's those a those the periods uncertainties our and factors, number other future to the in for release SEC. with or or US earnings differ filings of due described or results those implied discussed these statements materially call, Actual risks, forward-looking by during expressed in

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

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

over the I'd Now like turn to Jun. call to

Jun Pei

quarter everyone. Thank you, earnings for XXXX and call. Thank joining you first afternoon, good Hull, Cepton's

with execution. with financial review and our series a you. production We our business update on will I start will update quarter results an first provide

to the to the ship continue preproduction we On Koito side, throughout units quarter. product

production of remains track for the vehicle to our saleable our for receive decide, launch vehicles. lidar OEM OEM to final on customer from in production exact is validation the date While

being production our across award. vehicle under multiple existing Our products models evaluated are

receive customer OEM our next our of production our products award. in series As vehicle Vista-XXX continued lidar for a and vehicle of performance are months the flagship to of the the result coverage existing of additional expect models versatility expand we to couple integration,

We're encouraged as is to customer. automotive critical by component OEM of from This dedication reflective technology and safety. to enabling our our efforts commitment a the our lidar of

In by us hardware, teams, as addition OEM such meet for and and tremendous These automotive cybersecurity, functional custom software requirement, it delivered we to for customers. software safety. additional over-the-air our updates, our allows in-house also add embedded customers. allows our to It to OEM were is developed OEM a deliver features capabilities our us stringent value

lidar their hardware. having of Software to a OEM our as to under We driving the solution customer positions solution operation has highest us the enable production OEM for hardware as as some in reliability the deliver to lidar a combined series software the same and a of subject our safe industry is and to provider, actually ability when And It everyday the comes market adoption it standard customer simple positions lidar believe us total vehicles. a and in provider. standards vehicles. leader to a environment, beyond hardware

production final on near our we're working stages facilities. tier-X the capacity production and also towards partner the manufacturers As products validation, increasing contract our at

Koito partner our we products. production scale that quarters previous in lidar mentioned work to of with future enable have of the closely We our tier-X

we software to include efforts both ensure hardware raw in continued can processes at materials quality and Our scaling securing at volume. and consistent deliver production implementing scale in production

times we For SOP. move critical as one in were throughput manufacturing we example, to in towards the past And the this steps. milestones meeting quarter, were increase able confident five feel we production of by

These Vista-XXX earlier XXX Plus this announcement same that current the our Plus product over of slim lead the improvements form unveiled advantages areas our carries and such product the our improvements as shield]. OEM vehicle the Plus of this in with unlocks launching in enhance XXX, the factor at is the the quarter. integration our to we Vista-XXXX Following vehicles placement headlamps other program. windshield year [face placed and the behind CES,

of of product with XXX customer lidar a working across Our is our OEM the suite. drive direct adoption customer result lead closely to OEM majority the

is high first the and requires trivial task, launch lidar lidar a competitive the only windshield. is distant Cepton vehicles for moat performance to huge it known a It company behind not in-passenger the future. and a

ASIC, our our point designed and process the new point to reduce announced cloud cost Komodo. merchant other recently devices feature savings. this the silicon Plus time, Our ASIC replace at in-house, power same FPGA quality, the will Developed cloud new is and XXX also improve drive to consumption,

In the ahead on reliance supply high for volume is the key, where we semiconductor on-time delivery with years is production, are reducing our own solutions. and ASIC chain

technology have market chipset. the we proprietary with accomplishments our and expect highlight ASIC to leader. leadership year we the continued addition, start made In to our our The continue allied be extending out commitment to dedication

mature, to improvements our solidify chip in software make embedded products to and we technology leadership. our level As the continue innovate at

every by development hundreds Transitioning of importance are distinct maintaining unit, the standard our volume in the OEM of precision the scales quality to to stresses production level at from maintaining in volume reliability product when tens phase the lidar the challenges customers. and thousands. of phase Cepton's same demanded There and

in to lead the areas Our both of will prove be investment production and key towards cost. time readiness differentiation

over it our update turn Mitch customer on an I'll programs. for that, With to

Mitch Hourtienne

of Gonçalves, experience from will support brings He Customer Thank you, Motors. us GM Honda. and decade joined Luis new OEM And announce [Detroit] Jun. General from a of we program. happy automotive Luis over I'm global to as OEMs such a our who recently hired Programs, Director

Motors Jun General in and OEM joint expand production customized This in product the at As is additional expected three maturity, indicated, development, least vehicle integration. collaboration lead to vehicle Cepton, coming result our series program the existing software between quarter, is models. efforts of Koito, and

already the with business, to OEM believe and rich in year. selected with this volume has recognition a we automotive all lidar opportunity a RFQ respond to past our Beyond its in an program we leverages the that of the is quarter history directly our history Cepton technology with as tier-X terms be automotive OEM top company, this received OEM, of This and collaboration supplier. to manufacturing. of a a such maturity RFQ as Koito as current

OEM allowing and respond to become is More a to aspiration case. importantly, for industry final this is a how OEM Cepton technology tier-X believe lidar It as evolve, the production launching winning have the not this by help a made trust, to decision chains guide self-proclaimed the We supplier future. tier-X. in to the and continue will the series supply building programs, is directly executing

as last a of General announcement with look their global a sensor Ultra opportunity, European addition headquarters for In coming And forward the for to now windshield, Motors' program, top-three our where Cruise more in you calls executives visited behind suite to placed result RFI recent is advanced from Cepton this sharing OEM month. in phase passenger vehicles. information an are we the We their future lidar

vertical automotive product, of is that products. companies has very field suitable lidar large very of an applications. with Cepton lidar range trucking near lidar view for grade few one range near a Onto

top made strong we the customers. past OEM multiple progress quarter, with Over have trucking

progressed OEM trucking product lidar have for called our a Nova. long-range the We to top-three RFQ with global phase

units our announced the last customer, multimillion-dollar the on started at word a smart infrastructure segment. the We to tolling year. fulfilling shipping end Lastly, contract of

sensors our for NOVA we Nova our trucking an continue While also cases. is ship and suitable industrial applications, product to ground it's use autonomous ideal to product applications, vehicle for smart support

Now, I'll turn Hull. to the over call back

Hull Xu

our quarter first was compared our same $X.X a Product quarter compared increase Total with million, was slight Starting prior quarter. previous results. compared the for our decrease previous to the period and a Mitch. revenue you, as $X.X XX% a the Thank period, prior million, but quarter. year decrease to revenue year slight to

$X.X also on the development based revenue projects. second of timing of We our of completion have million

While still and have and achieving record a we production of for for lidar automotive customers. record shipped lidar number volume per are of units programs, automotive number quarter units a early we

as ramp for to we continue purchase series orders to production base production trend this fulfil expect program. We our

was margin revenue and infrastructure. Gross primarily X% mix shift negative by quarter, the driven smart for automotive between

units gross realized automotive, ASP infrastructure, until of slightly volume later where component expect is kicks lower that can volume shifts sales preproduction result pricing volume margin smart to for be short and of fixed our and term, some in experience leverage our As production we units than the in increased as towards pressure cost a

levels should help year. similar ASP on with higher margins, year. side of last projects the for typically which overall And to is as at gross expected Infrastructure margin that the have remain Smart development

and net basic diluted. loss loss $XX.X million First $X.XX was per diluted. share, $X.XX basic quarter million, net and $XX.X or Non-GAAP was per GAAP share, or

First EBITDA negative quarter non-GAAP million. adjusted $XX.X was

in investments, As that held of $XX and none had March regional we short-term approximately XX, million banks. and of XXXX, is cash at

position the time. We forward at from on cash closing this our million the am May closed reminder, to increased year. a of Koito stock everyone Meeting from scheduled XX January seeing preferred our investment look in that Annual at X:XX As Pacific $XXX

that, call over to And questions. like for I'd with turn the

Operator

[Operator question. first Instructions] One moment please your for

Shannon, Your from line Craig-Hallum. of first Richard the question comes

now Your is open. line

Richard Shannon

quarter the my and -- taking discussion anything revenues and about here aftermarket a you change, a today. change OpEx, Thanks I that getting late got gave I hear on guys. of that on didn't guidance apologize any Hi, Hull? last number late question. to have I on calls for did about for or

Hull Xu

No, no changed for the year.

Richard Shannon

if for that bullet unusual here talk want That's importance here. been key on that sure first of commentary customer? about I or And these just probably it release during, something new of really gathering I here the here. response. understand you've that make was want guess came that points rather engaged how but this I'm with for supplier, think bullet on tier-X can I perfect. missed RFQ this. to to Is I in for thought, you Okay, I a executing I the and sure working while? here, been in press Mitch's is component some Maybe long what this think detail make just some I it's all about have a more the

Mitch Hourtienne

Mitch. Thanks, This Yes. is Richard.

lidar So a And case history our as technology for to automotive selected rich supplier, to be -- missed has with section, biggest that already this this respond tier-X directly you we've validating to a my believe this been time. a the OEM. prepping bid RFQ we year opportunity an company. in were this Cepton We long of automotive kind stated I is this on. maturity open as a

Richard Shannon

Okay.

that think MitchX? I Is I months, you awards I think one six last we be given assuming things. within is So, right, said more assume that expected or to call, the of one the this this in or those

Mitch Hourtienne

yes. correct, That's

Richard Shannon

of terms how bit Maybe you you're RFIs Can back here stepping tell and side. Okay. us RFQs many with? just in process automotive the you where in a on currently sit

Mitch Hourtienne

critical get in airtime or most we're them phase of stages top-XX RFQs, we RFI various give Yes, automotive today talk there's OEM. five and a to always like once milestone, we really dedicated they three the to or to with OEMs. with say, RFIs of But I about within open only the top-XX would probably the seven open. two top RFQs XX, are this

Richard Shannon

ask customer. the automotive big That Maybe Okay. let's first your fair visibility about is with enough. primary, your

I kind call, you mentioned last here. characterize as, of that? last been had you have like if can update the kind you seen today months the the looks just what change Or since think on us rolling call? Wondering has how what of six that to of you in increases visibility

Hull Xu

Richard. Thanks,

XX,XXX over So, purchase have we of do units orders.

us So, n which fulfilling on, on plenty very those for or execute focused executing visibility units. are we that's of to

volume as logistics out manufacturers the the well we this higher as suppliers with contract Koito. towards the year of half see ramp You'll work with second and

Richard Shannon

vehicles into visibility this assume used I an you a number with here or there that of think, have same on over the call. shipping units, And the Does been has Okay. XX,XXX may increase that's in last at well? set number as this you're

Hull Xu

the into. our XXXX OEMs same the the to from at OEM in not program. now mention into assumes we're three number add Mitch And to commitment expected have have hasn't XXXX. right additional in vehicles of that are least vehicles, customer. production we vehicles that planned shipping The This from those to have did vehicles overall changed started are already SOP

Richard Shannon

And perspective. Maybe enough. I'll question, out a good Fair last jump line of Okay. here. that's

to of help be of I about is there here the win think one OEM in off And you about customers those an any top-XX about who On you And Is call, these that that an is having ground for and any talked your who a vehicle. autonomous vehicle you talked us shipping news a I the with one there the maybe autonomous might then might samples global can ground be? way customer. that will referred suggests that call? out haven't to last seen the -- one press you release, last -- earnings start

Mitch Hourtienne

a mean Yes, this that's Cepton's But exhibited starting be a a public industry Level in about four disclosures the use year, it's to vehicle case. supporting this name couple right. be of project will like we I autonomous at there or OEM shows exhibited disclose yet. are the think looking is this QX I customer. details QX more It's exact ground couple It but shows, been industry how and at can't some of year.

Jun Pei

significant top, automotive play add it power is Yes, global has a that in I mean, a that would I products. top-XX OEM

Richard Shannon

well? with their customer, as Okay. this both Koito and this higher customer autonomous with volume level with this is four vehicles vehicle And passenger is -- evolved

Mitch Hourtienne

Yes, they are.

Richard Shannon

to you. Good of will know. jump guys. I at one Okay. Thank your

Mitch Hourtienne

Thanks, Richard.

Operator

comes the of Northland. question line Gus Richard, from next Your

Your line is open. now

Gus Richard

Yes, questions. thanks taking my for

in you occur? and when that Just terms start of GM anticipate production, of do to

Mitch Hourtienne

Yes.

think in That's I stated the December release publicly year. lead consumers this vehicle. their the the actually vehicles for GM that Celestiq Ultra they're to saleable sensor in aiming Cruise these to around have suite, press of March

first Beyond of half remaining of will half the additional first that, second XXXX, XXXX. continue XXXX. half then in And vehicle the models launch to in of

Gus Richard

at of there? doing be And should four Okay. the math the XXXX, you vehicles. in I Am end right

Mitch Hourtienne

least yes. At four,

Gus Richard

the And to it. business. then, Got turning just infrastructure

how you and in, how of I'm do the expect wondering many shipped announced much have you win You this follow-ons? quarter -- that any states quarter, just

Mitch Hourtienne

We definitely. started in against shipping that Yes, April. order

shipment expect states. on, to It's going But bidding next additional regular initially. tolling through month So three across year are and many expand a for there's every that this operator. to states early there they're we more

Gus Richard

Okay.

the roughly? does numbers, that Just what cover, percentage US rough of population

Hull Xu

we Well, I think what say is have. XX% I'd

Mitch Hourtienne

listed coast there, think east I I populist Yes. mean, states there's state a -- we the

Hull Xu

in Yes, we right. terms with lidar, the have what the roads operator that XX% equipping coverage of with is probably toll the of

this So, there's that's not first phase. still equipped a roads vast in lidar toll majority of with

Gus Richard

Right. right, Super me. Got Thank it it. All you. for helpful. That's

Hull Xu

Gus. Thanks,

Operator

of Your Galinko, line comes question Group. next the Maxim Matthew from

Your line open. now is

Matthew Galinko

taking question. Hey, guys. Thanks for my

the point looks for part previously? was this the curious what about you business pipeline highway the Just discussed like infrastructure beyond out win of

Mitch Hourtienne

Yes. starting increasingly supporting, airports. Previously, ramp know, we've now Definitely more say of applications. there's beyond a dozens we're applications that different are proof-of-concept. about still you I to would just talked

We with year. result lidar The officially lidar our for short-range announced in lot this begun product, vehicle and interest use to the on as a ground later expect and be applications. those case autonomous ramp various collaborating that, because of a Koito there's range Nova near of we've

Hull Xu

a And that. more finer to just on put bit details little

revenue we -- be millions. of For And expect the area digits. area double in this a millions digit year will year, digits single expect to be we terms smart mid-single towards next do in infrastructure in

Matthew Galinko

environment, on you're now responding side to Infrastructure Got the competitive the you're just, side, what in Thanks. the the could it. well? as in Smart automotive on then on And touch if maybe seeing you RFPs

Mitch Hourtienne

Yes.

side, to in serious a automotive it's in never down to they one most pretty really with I the would or there's companies. more and get than vetting two RFQ, say, RFIs. because it competitor they automotive On one their narrowed Once process accounts. or two competitors have they one lengthy have Cepton

where seeing infrastructure directional side, spinning lidars On lidars we're still the replacing in applications. smart are

of the lidars spinning directional conquested in lidars. that So, some case, being are companies with

get there's companies a program. space, they smart to as to an trying automotive more if think within few I infrastructure pivot competitors that didn't lidar

Matthew Galinko

Thank you. it. Got

Hull Xu

Matt. Thanks,

Operator

are this [Operator Please Instructions] There at questions time. no further continue.

Jun Pei

today. for you Thank joining Okay. us

the We'll with automotive hopefully new news. you exciting business. to looking quarter, Thank forward more lot lot of year, really next in to are report We excitement and you. a a this

Operator

gentlemen, for and Ladies participation. today's your you this concludes conference Thank call.

You disconnect. may now

Cepton (CPTN) 9 May 232023 Q1 Earnings call transcript