CPTN - Earnings call transcript Q1 2024

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Operator

Good day, and welcome to the Cepton, Inc.

First Quarter 2024 Business Update and Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Dennis Chang, Interim Chief Financial Officer. Dennis, please go ahead.

Dong Chang

to Quarter welcome and Earnings and Update. Business you, Cepton's XXXX First Call Thank are Co-Founder Jun Officer; today me With Pei, Hourtienne, Commercial and and Chief Officer. Mitch Executive Chief

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

statements would to forward-looking to this on based operational periods. forward-looking safe the contained the I like comments those future statements remind during of including filings materially in Securities slides and implied by that made may relating our periods earnings earnings subject in are those accompany expected differ conference Commission. forward-looking statements to in the the described harbor everyone statements the this those and future call, with in release call. expressed company's company's and or U.S. other release factors, that or for statements and include for the uncertainties financial or results current due a from performance call today's discussed Actual expectations, presentation to may These are our these Exchange regarding risks, and number

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

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

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

Jun Pei

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

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

an update Cepton long-range on product. First, LiDAR Ultra. latest our

to an system. efforts safety our technology, pleased cutting-edge I'm update our efficiency automotive exciting LiDAR to part of provide and through ongoing on advance As Ultra

much stage, B expertise This progression robust and this performance initial key leadership. rapid achieving from and samples amendment milestone quicker of concept is innovation the to underscores B to We technical to the expectations. sample advanced its testament Ultra the our successfully deep Ultra and our than and a have market the anticipated exceeded development capabilities R&D has

its demonstrated X We in performance systems various and Japan, the capabilities only but showcased across LIDAR to potential its OEMs the has environments. in robustness our versatility and have deployment. conditions, Ultras Affirming Europe. for readiness showcases and automotive commercial feedback real-world overwhelmingly United continents: States demonstrations live to from Ultra's global also positive. the The broader the These validated transform standards not under these safety been

fidelity for samples. Our data imaging technology, field Ultra the which higher allows and offering product regional scanning. enhanced this expectations, our adaptability proprietary interest and Technology view, has dynamic MagnoSteer, adjustment above performed features of B high-resolution in

in our system of The automotive a drive Ultra in to advancements pivotal forward applications. widespread adoption marked LiDAR step LiDAR mission in our technology

As only to we delivering the of possible, remain push not on the also products that rigorous we the automotive demands exceed of what's meet boundaries focused but continue industry.

do we This not leaders and Koito with competitiveness in commercial I'm supply announce traction. a underscores our to proud the advancements near-range have to create in technology that solutions. value industry our OEM collaboration that technology OEM project trust stated production always I've LiDAR global a series sensors. our place project without with secured Today, multiyear that

customers. program that the be a quarter for development, automotive the the Koito, performed Cepton work start execution exceed of into accelerate jump and this the million we This our to XXXX. support to product second needs with new and specific $XX entered services To significant in contract has ensuring in contract includes project, of which of is engineering OEM meet fees designed

QX ended We achievement a company expect to significant months but also XXXX, the X industry. the not have within positive cash LiDAR for flow our only for

Mitch I'll that, programs. with our on details customer turn efforts to for more it over With

Mitch Hourtienne

highlight Jun. global and market. to influence you, that partnerships Today, in growing Thank I'm excited Cepton's automotive share our in developments the opportunities new significant business

milestone contract As NRE Jun fronts. with announced, Koito significant marks our on a Cepton for huge multiple

First, we production American beyond awards the win. this expand North our continent series with

Second, cash a this product positive we the within in but history, LiDAR the not first and scalability for LiDAR demonstrate flow quarter this least, to first expect near-range time the last, we is believe certainly this also with win. And company's industry. we become

are associated global in gain another the early these this of to Starting The and proud are OEMs to selective be global very quarter. project with Large significant. commercials with OEM. we're of revenue trust days LiDAR expected adoption, this

win, with formal some call. global automotive next decision reach OEM our this expanding from to for a before We've world's we we recently for the RFQ of our final earnings XX largest a market submissions our automotive submission RFQs and are completed Beyond LiDAR top an technology, expect manufacturers. long-range the actively for

a pivotal a the is We've LiDAR. RFQ of our automotive towards solutions long-range in step broader submission This global sector. X and near-range first and OEM a our top to both securing LiDAR automotive made also adoption for

very expand and OEMs products, positioning for LiDAR unique well both further gains. position and next-generation include of their share ADAS to long-range near-range LiDAR, use is in us offering Cepton As offerings market a both

reduce week, our for our LiDAR and also are As deployments, costs. to our development aim automotive OEM expanding. Last software solutions announced StudioViz, is data simulator Cepton collection ecosystem accelerate hardened hardware LiDAR

into from as that solution pack with the the work from Our stems a out variances we simulator, manufacturing. our long-standing ingredient key manufacturing include stands Koito

OEM to products. continue from stay and tuned in production Cepton further successful Cepton and more quarters. development as challenges the highly We're and win. months understand further of efficient our OEM kit, our coming in we of years more work good StudioViz to include solutions and to expand value is just one excited road series global for which our will ecosystem new pillar product the show execute in our coming Ultra To news software

it back Next, I'll turn to Dennis.

Dong Chang

results. quarter with Thank our Mitch. you, Starting first

million, to the in revenue quarter in Total Total of prior $X.X product revenue. year revenue consisting was comparable $X.X million million by for and in period. $X.X million $X.X XX% development increased revenue the compared

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

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

quarter, During $X.X recorded we project is from the payments the million received and cost Koito gain was first initial a This ongoing. the the recoveries. recovery process GM from cancellation

approximately we March of $XX.X cash cash had As and equivalents. XXXX, in million XX,

our for guidance June We is $XX expenses look on XXXX million. shareholders XX. scheduled meeting to be million. million between be and at year seeing to operating expected full below Our expected forward to our $XX $XX revenue are annual everyone

that, up call with open I'd to for like And questions. the

Operator

Our first Instructions] line with [Operator Maxim Galinko the of question comes Matthew from Group.

Matthew Galinko

wanted payment to was on firstly, received on wanted $X in recovery, a or the to gain. cash the I million Maybe that I cost the is that clarify, first it was -- quarter? just cash just GM a just --

Dong Chang

million the a quarter. Yes, the It payment. has $X is been in received first

Matthew Galinko

it. Got

then that? And that? Or frame can when more production or new on help from you you the to about event? there congratulations we production that that, win, us for anything revenue say should Okay. act start Is and secondly, XXXX expect when is could could we

Mitch Hourtienne

this Mitch. good Matt, is that's Yes, a question.

revenues and development sample collecting noted starting So begin then quarter this that product revenues we'll also this are we quarter.

X.X start ahead -- sourced project [ production. it's production of For case the to the in are well. this And the these of years typically most as programs about years high-volume -- X ] that's of revenue,

Matthew Galinko

be year? in we the follow-up other in future that question project in balance given quarter second one sounds onetime production? periods going of it is hitting onetime there do the development kind I subsequent thing? the that Or last a Is be, to prior help Or of component of And frame around to that of would that like slabs thing on that's you -- the it's there that, a us revenue if that to guess, maybe $XX expect get million high-volume be XXXX.

Mitch Hourtienne

follow-on sales. lumpy Yes. from a It's production, X.X more probably continue, that this be But development project. and The a portion I start see years you this until of to payment. is as be the product X Again, now. significant revenue of part will this to It can will compared Mitch. years not indicated, development will milestones and onetime a quarter, then there bit pretty as

Operator

with comes Our of the question from line Mitwalli Craig-Hallum. Shadi next

Shadi Mitwalli

clarification This on for Mitwalli The and PR is new a Shannon. the award one in Shadi the is question. end auto Richard mentioned the with this mentioned I call, to of March? start same on off want then

Jun Pei

Yes.

Mitch Hourtienne

it is. Yes,

Shadi Mitwalli

going sounds QX? most it this like fee, is and it XQ be XXXX? of rest all Great. recognized going of then And to recognized it to Or be is the throughout in it fiscal $XX in then million

Mitch Hourtienne

be answer $XX the revenues subsequent of within QX. of all Actually, the previous is Yes. top recognized question, half will And to million my the of there on the then second in year. it development

Shadi Mitwalli

$XX given million then up makes sense. that, That Okay. of $XX make you year, million ] with to [ And $XX of for know the million about already to the guidance rest that of sales? whether up more product you be timely color some on will the give to or can $X revenues, I million of $XX million in made believe this NRE

Mitch Hourtienne

both. a will question, a it's mix of good be Shadi. Yes, It

X sales. As working the not contracts yet will those or Cepton. as by we're The call, of OEM as are by early X significant we details on -- the have sample or both in well other NRE indicated signed projects customer

forecast, the of we a why we the as category that's the timing a on finalize range payments. bit so And and have of

Operator

Capital. next Our line Garrigan question with from comes the WestPark

Kevin Garrigan

Yes.

and progress. Let few on congrats questions me a the ask

a love secure better know win your to this win previously kind is of but how in you're to important I OEM seems design it RFPs on But to you secure, more just or First, And first will. GM, way that X get other in fighting that have design you automotive for? if a a had is to win. these get I'd you thoughts guys just position it win little

Mitch Hourtienne

Yes, definitely that our product Mitch. show GM of in the customer lessons you is side, evolution, on learned see the you go new kind our showing I up that of answer into Yes, Ultra I'll good product. the a program from that forefront Kevin. there's of lot you This first. -- question,

the and of lessons all our learned Ultra So into product. manufacturing built design are

the LiDAR. in called in the this You industry we that a unique takes all variances last Again, is account into of new our product building see it pretty software week. StudioViz announced ecosystem it manufacturing in that

not think the but then maybe last, learned chain. And the X is important lesson supply I least, of

have we're as really suppliers of We GM and over that the well suppliers find on evolved. carrying some project worked their has product new -- the

it a very RFQs. yes, position for So these new puts competitive us in

Jun Pei

this And couple to can And a LiDAR a complete is in in us that future minor a with companies that wins. position of elevate just ported software suite that and sentence terms We're automotive hardware over a for had modifications of sample future over for mean that. projects. I ready the different Yes. into deployment. very few design RFQs from be

no worked is big So the really history really, it deal, on. we've wasted there. work a given There's

Kevin Garrigan

of No, that and makes appreciate color. ton Yes. sense, all a I that

Okay. that companies to have seems companies Perfect. a were your provide to my kind at kind a StudioViz of then this also platform. speed development? come something some second question, asking looking LiDAR like up lot simulation couple that of Was simulation there's platform, with of LiDAR OEMs lighter it other And out the

Mitch Hourtienne

you comes been Yes, by should program, this, although development realization or do It a this it's have ask OEM. say after the usually earlier a definitely, on available some used many for in the earlier later asked for OEMs not I'll that these. necessarily win

a learned base. lesson the big with out a and the lessons But develop simulator first first customized that We customer, be a can OEM we've that's award. doing used come than so the our lot custom product, each repeating for this rather did from for program. incorporates of customer And and learned which a across

Kevin Garrigan

Okay. sense. That just Got then I it. question, And if can. Got it. makes last

recent competitors it industry. the thoughts your LiDAR your what it I'd means heard automatic ruling for guys' NISA the you ] love [ we've braking of few to and think for hear on emergency So a systems. speak of about kind

Mitch Hourtienne

these week about landscape quite like Yes. We across didn't proliferated That's did for are it the to bit I last as all was LiDAR. see new ultrasonic, by huge the that a a hallmark point. they I our to about be talked about automotive reduce accidents. can camera and much competitors. It's mean, a adopt talk today. as industry good radar, technologies

forever, becoming becoming recognition regulators LIDAR So deaths aren't technologies onto and I key be available. by becoming it's tolerated It's integrate still it the a down are that It's think new easier going that to There pedestrian vehicles. cost-effective. won't right? like

now. just So right industry another for our this is tailwind

Operator

Capital. Northland comes question next from line Gus our Richard And with of the

Auguste Richard

Last on a OEMs What Could button these the the about or XXX of sort different you changed on talk for you kind making of are adopting sense hit urgency towards will. fall, just number moving the automation, of of reasons. last if And progress in the pause guys has the days? LiDAR? wondering

Mitch Hourtienne

I'll with one, Gus. start Good that Yes, question.

I appetite there's strong still LiDAR the for think, a all, first of OEMs. from

our a just one I emphasis in I that shifted legislation, adoption talked X to maybe as RFI within towards that as more a becoming versus has we the see the RFQ is months You the broadly the autonomy. bit updates industry. LiDAR and of of do something points past think, the little well for about And and think year. that's safety

driving key hands-free years, focal like and reduce ago. we of this were of that years and that and the these This can industry convenient a is more some the deaths. at As systems talk X braking versus aimed X becoming point features automatic accidents about systems emergency

Auguste Richard

And rescope, move it. and for their GM after they update using going any are plans What forward? Got on are then your the LiDAR? to

Mitch Hourtienne

say been Yes, bit on EV a details wouldn't months. the because many the impacting quiet what front, I their systems, of go autonomy is on We know is. think in working cycle past it's good a some still of I it's question. probably GM the X systems, obviously, on it's into too strategy they I but really their priorities. they're their downturn these can't

General the off OEMs, product includes showing to the We're all Ultra of that Motors.

with last them, All us in lessons working X of our from the very learned a puts years position. good of

and well So they we're announce they confident really next they them we're will, their support consumer LiDAR, once again. use to that products, positioned

Auguste Richard

and area? can with you that on us to Koito can where then ask stands? on Got The going update, any on not provide it. what's me, for of last And I Cepton, much sure an but offer that guess provide I'm the anyway. one And you I'll update buy in

Jun Pei

can Yes, here. few on X initial it's companies. process. the for Thanks I we not offer. question. but actually much months we're disclose, the Jun too this working Gus, public received Yes, big been And actively there's since It's detail a

that assure it. But a that So on I more little are pretty with process complicated bit again, we time. needs working

Just to publicly. there's ready we're no details disclose

For news. to that, stay further say tuned I'll just have for

Operator

Thank you.

closing turn Pei Jun with floor that, We session. back I the have to comments. reached end would question-and-answer like to over of our And CEO, the for any

Jun Pei

Yes. for our attending again, everyone, conference call. Thanks quarterly

is working and Cepton the on technology witnessed, have continuous making you As cutting-edge commercial progress.

coming you keep we'll much. way. very Thank we as So updated have more Thank news our exciting you you.

Operator

This concludes teleconference. today's

at You may disconnect Thank time. participation. your you for your lines this

Cepton (CPTN) 13 May 242024 Q1 Earnings call transcript