Luminar (LAZR) 8 Nov 232023 Q3 Earnings call transcript

Company Profile

Participants

Aileen Smith	executive
Austin Russell	executive
Thomas Fennimore	executive
Joshua Buchalter	analyst
Yan Dong	analyst
John Babcock	analyst
Natalia Sukhotina Winkler	analyst
Jamie Perez	analyst
Mark Delaney	analyst
Kevin Cassidy	analyst

Call transcript

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Aileen Smith

Welcome everyone to Luminar's Third Quarter of 2023 Business Update Call. My name is Aileen Smith, and I am Luminar's Head of Investor Relations. With me today are Austin Russell, Founder and Chief Executive Officer; and Tom Fennimore, Chief Financial Officer.As a quick reminder, this call is being recorded, and you can find the earnings release and shareholder letter that accompany this call at investors.luminartech.com. We ran into some hiccups with Business Wire and getting our press release out on time. But hopefully, most of you folks were able to have a chance to review our inaugural letter to shareholders and our press release that were issued via an 8-K as well as uploaded to our IR website.

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Aileen Smith

you. question first Austin, is for the

is Volvo the when given start accomplishment major with test with green light orders? Volvo expect Celestica for And and So a before recently, the rate do at production? we Luminar. production else What to successful series milestone is do to left run was

Austin Russell

it Volvo rate. with collaborating great we as have huge milestone to been this leading and to it's so run relates culmination and up that Yes, at

the capacity to was leading product and production. when up of it fundamental a quality to testing key the milestone and sort start for this So comes

an So that's as and something helping that thank you Celestica. obviously Mexico we're well and with the push team that and line proud to as with Volvo's factory in have incredible effort passed the across the to team,

obviously from of demonstrating So in up big to major to that's launched. queued still up they the with a start in work getting next really have was finalization great.There's capacity. Volvo But industrialization conjunction year do everything been that's the terms standpoint of what production for of -- that and leading push the

scale into thousands or facility So Mexico that corresponding up thousands for really can well said we the you to vehicles XXX,XXX of support and would the then I tens stage starts up thereafter. the setting and that, year. that shows of And think per centers hundreds

a we'll ultimately similar out it's that.And So with starting down and with as and point a then have Mercedes great test all everything plays accordingly. line TPK the been that

we're scale excited for they go next it's with this It's really yes, as to EXXX year. all So going a launch changer And be Volvo. huge game and the future. systems

Aileen Smith

Great.

color to LiDAR? as some relationships from Polestar? you NVIDIA? they revenues Our expect Chauffeur benefit does second How your products kind do Luminar future them with What add launch particular, and shareholders. relationship? Can Mobileye retail question various with the of you program your Mobileye's from from and the In

Austin Russell

absolutely. yes, Yes,

technology that's into each that LiDAR really technologies collaborating systems and to some guess partners collaborating see really we've it we something them partner of that as are that We with, selected respective associated us and able that systems, to comes I now partnership incredible we a when and establishing that we've themselves really it software NVIDIA and components seen. integrated And well.And capabilities. know in with be even been been been and been leader when success OEMs.So as Mobileye's well well, springboard that's the said, has that their have comes comes extend assisted as further we've OEM well with Mobileye, like that advanced to it they for opportunities continuing the as incredible to so there. years, when to I out clear So NVIDIA to incredible just respective an driving industry address they're as

to of So able selected this successfully to very, adopt next-generation to with help industry for the be technologies better automakers to these their partnerships to really couldn't be said, and to like a us.And respect that. is meaningful partners be to that ask very in strive to be be as part I we automotive able realize

all fruits of in. starting the had in. collaboration the we're I see -- for we're They're now the And years. to all we've really So of that labor think,

example, And goes combine been and that, at do I look work start that the it for think, that's when the we've leading Mercedes to that's, probably respective to program, another inflection that can the from, at development that technology we create So have we're production take doing public. you you again, that's obviously collaboration what vehicles.And, like solution. with industry transition yet show point in on seeing a with these into where automotive something you an NVIDIA, incredible the guys, them companies been that can together with you

Aileen Smith

right. All

bankruptcy? that for Our next in to question and Tom, danger of is, going Luminar is be is

Thomas Fennimore

of end as track successfully we by it industrialize Iris.We our continue cut gross to $XX track to it puts Aileen, end ask have answer in over of quarter, million into dollar on for kind the million $XX for as we're range to recent cash over look $XXX QX, most and recent is cut QX. cash million year. the of wind actually us performance. a understand of to loss our when half, our We had cash But which million launch-related $XX why which $XXX that price positive the would spend as by We I liquidity stock to nearly and down shareholders that question, the million results the liquidity at non-GAAP costs at almost you the get on of those end free puts us short quarter no. during get year to the given some trajectory on

kind over year to at going where our when years enough So to of runway the us be X going profitability. have of to you believe we're that's ending for look to we targets we get that

next growth we We strong have that the volume once place year. drive book to that will business in reach SOP high revenue

question, to us case. revenues source the profits that the a that's clearly not gives again, once credible reduce even so, the help So understand more.And our growing and start spend to our I cash our way but of

way have most publicly we A, God D, LiDAR a the find any of and need And, put have that to and built in company need cash liquidity we in go, do F, doing up need something We you place know, E, and many contingency C, more, before know, end you know, them. to those ways I end. that we on ourselves traded to where B, plans we're ready if, more you forbid, plan you always scenario have God if forbid

Aileen Smith

for sorry, follow-ups. we ask are to to trying are our to more Q&A, ask allow All and analysts time some for we or one research retail, Great. from we our analysts. we would that research X, question questions X will transition Because going offer right, another

Cowen. to is question from going TD Buchalter Joshua at first come Our

Joshua Buchalter

has been me after way We've lighter taking I bankruptcy to very a There that goal? of product. It's design have to the for you announced for business? their to thanks Luminar Can guys, shot wins my on mean, they on and question has guess, can been and that developed warm-up maybe thanks go it the work want question. that safe it's you some expand letting Luminar follow-up chauffeur Mobileye chauffeur. on commented decent platform your for observed on I hard. wins the what mean on for Hey Mobileye's earlier, nice room. while choice internally chauffeur recently relationship is the been assume a

Austin Russell

I make there years it. wish what this with to like me it time it? the Yes, to think to to years it's it's we and And out I work at that's been think to, say you as could hard comment, it X that It's as when want specifically relates in it's think but the with systems take probably achieve.So want you that I take I these mean, I be time, the respective the X at so of, that can further collaboration, to no, best You or say. think again successful ongoing NVIDIA think companies. component month, key what to ago in partnership any achieve we that ago in I for that wanted ultimately important a all hope don't full with collaboration. fantastic to that same think of when, modules, was Mobileye uh scenario, as we same and were know, originally speed and since we -- out to pushing when been we we could it, nearly of absolutely announced part we've have possible we an everything set been I we of ahead was terms success hoped fair And it And compute will something that's yes, and right? I the

a it rather that it us Now, and obviously, been unique the platform there relates think, internal than realizing obviously I specifically, to NVIDIA, when to Mobileye as any effort, was standpoint. to change but hasn't from using comes

time our target is the ultimately towards, you assuming really, that's been level a I And to decade, these requirements that needed will building respectively that book up along able LiDAR's ourselves ultimately contracts, the why happen, in the ahead be with the that's the and been, of in really that automaker lot to roadmap these building we takes have X% creating the order of capturing it was what of performance, long-term billion, it capital economies and capabilities, as X% of terms by said And the to of same contracts So, first at good. way technologies from help is to as penetration. and place. know the -- be and what's But a all hard. $XX respective effort, automakers chip or lot get able like the right for we scale, and end well, path new market book breakthrough think the know, time, the, of which there.So are to of technology also achieve drive there. to by would a getting be opportunity level decade have and that's spent years make doing aspects, they we you these order have we And, out the

going achieve hopefully beyond able help that helpful that. to us those that to something to be be very are know you So companies that's to

Joshua Buchalter

billion existing of of guess follow-up, a in of year, mentioned which, $X And book you're year? already you're elaborate year. in won. for might track my business into contracts roughly, what much and growth I that amount on is the what's new achieve how I year guess, $X this order driving, the bit letter, versus customers billion you signing of much you slip think could I the a versus what's some I has was how on added you year, to but next of this been Maybe that last last believe, slowdown the driving, shareholder

Thomas Fennimore

stuff year, do As of as new have of along we them. in letter, billion, customers. a way, few it don't on customers from we our some the already -- to once from end there, kind in once we're tally talk the -- ready existing at about formal about wins track we but Josh, look We'll we're said, the our talk some $X are still we customers,

on get always have here we're few to November slip, to few But, confident So little there's of weeks in get risk things things some a there's sitting you there's a a left we're that year. hoping wrap-up that of to Whenever bit a also the that into cushion Xth, the we the in already QX. in a that, going to here billion, in that so -- we remain things lot we're year there.

if. remain can to So in having the we continues a of timing vehicles. a serious little formal is say, now of term that, implementing, confident the them lumpy. would kind these things about exist. automaker their these not longer almost I technology It's and on be major every when, LiDAR remain it.Look, opportunity question making awards And conversations of

still remain kind so, say, overall, But would the with And to an activity pace and industry particular of, in wouldn't I I new discussions, read we with both I and commercial our slowdown. existing would say, customers. anything satisfied of

Joshua Buchalter

I'll in Okay. hop queue. back the

Austin, Sorry, please.

Austin Russell

this, but just relative we we really bag order -- the as to as standard like calculate what over would of do near seen thing, to obviously know, we one-to-one -- want more what's opportunity you just it Yes, and that term what realize be broader what general a to in watches substantially that I its was did of the we this probably we right of as going that. mobile show there that want But multiple these one that can have generally soon just the soon. have â€“ we've -- than industry, in way terms there revenue I'm other is we say out in start of some the significant with if also and in our conversion starting actually here to with here will clear Josh, sure, concerns reminder, that, multiple

Aileen Smith

Deutsche analyst queue up from Bank. at Next our Dong will be Winnie in the

Yan Dong

if current the that And China, just remind TPK stand? then you on I can you a volume update and facility ramp us on provide might in the wondering was timeline? can where target

Thomas Fennimore

Sure.

over very far I well over some so spending are would that there. TPK. China So, last I with was proceeding other things say with some team actually well the time customers as in as week TPK

in now them. we're actually know, those Orlando we'll production samples our +. internally facility samples the B year of You right making at C to for time Iris transfer next We're manufacturing starting, some

win for us And we're end the of surprised sample relationship. been if are said, have the so, planning pleased And they so I regards ready the the ramp by buying XXX,XXX equipment, start there. the And the that that something capacity necessary over LiDARs. clean continue planning And, to be out good for facility on plan as is that job or next in doing wouldn't we're with timeline also year. we TPK part is the units more the to that.We've very about XXXX.The that have up, putting we is team ability necessary start time. place production that a that first in starting to TPK grow of C With that's continues initial the production far for to And, to then I business over expand to with as rooms.

Yan Dong

I obviously you in gross was Thank you wondering on detailed a very positive for on, But the gross more improvement was elaborate stated then margin the associated you if response. shareholder bit and the that and with Iris+ QX. that wondering, bit improvement little margin if And letter, still impact a can efforts elaborate targeting, the in was I can how little the just costs might there? headwind

Thomas Fennimore

product. of year. produce. reminder, as major building Volvo. Iris, what That's One out X would And, sure. our Yes, where new that kind to of, in high Mexico customer facility a launching in is we're of And we're we're That's is kind at I projects say, SOP what one. preparing next tail -- lead we're, of X the end down our for initial volume industrialization that

on amount it's until issues get you as phase. of, them. identify as come sample other place. design of and, doing to kind B So that in going that those you is we're be kind and the and you're to do do related there's that.For kind modify have the the costs making our them you're doing down out during of issues. at And so We're we B typical system. sample what to you you start amount difficult testing phase, a then fair of Iris+ a manufacturing That's And LiDARs fair SOP, we're to Orlando. launch those advanced phase LIDARs predict encounter, in testing of And and the facility C during that in The reach B actually very of building then right? you that

And so, they than were expecting. a little higher were we

those. good flows good is little we've to our of that necessary to to That the than bit were a make team for cost news I made the forecasting. But COGS modifications think a kind is, higher of them.And the we think the I that done we has line. was -- need fix identifying, job so through

the come to to are of do a the a The a issues that Iris testing the launch.And design bit the QX. there. kind initial through you little behind the SOP to we costs the Iris+ product, But found has that's the kind little necessary happened remain And Irish of side during as the once made nothing for again, kind you're until costs identified Iris+ down, industrialization continue the on the while that's reach starting validation that to those are We of bit we'll so, and so so And Iris Iris+ prove and high. what to And need significant fix unpredictable. encounter and industrialization changes. what for industrializing it we necessary on out. team go cost

Austin Russell

the variance, way of is very important recognition. why why questions. there, it's automakers what the whatever or the things standpoint, kind revenue it that with that's it. because from management what as business then like go and -- that Iris like up minus this the or and be?But as X% so exact X% predict But the up have is may that, as to sort Basically, It's the this we a you thereafter exact for XX%, see to laid revenue that costs same plus we here or cost input programs or it, does percentage hard both we the comes there Obviously, pre-production adjust -- when what respective you it additional Iris+ like, like with the part to call timing the And on of of for of comes track that. be there it's well, plus a go affect as That it to ultimately kind this with to SOP. through very And for including, production. because of recognition have down well happens, by, have contracts both when we're relative this that and does completion well. lines our and milestones with we've out, of startup

Aileen Smith

to America. going from It's of come Babcock John Bank from

John Babcock

I anything then and quarter but rest other just you've guys thinking keep longer expecting performance the what that if your from Is my this this you're impacts are that, term as year. the that? it, take should and risk there that guess question, that of we seen factors we outlook? how I should the through any in if see mind know you want to poses there or reiterated about any just we're

Thomas Fennimore

of The answer than our the we are to your kind lighter revenue the don't came and talked John, we anything, about that as phase. we sample industrialize expected. -- to C bumps road some of margin headwinds and gross these a kind see question on little the B go And is, while bit from don't product the of in you

these, actually design, costs And You freeze production. wind related the serious down. and reach lot launch of

successfully the We're dissipate. COGS, line or And seeing there. costs -- on kind those bumps costs terms those it should were so in you seeing in road minus of -- plus a we're that development of industrialize, year higher we're that Iris ahead as where on

that process, And, just the as behind You cost a little know, bit Iris+ that. a unpredictable. is little industrialization going can be you're bit through

revenue On again. side, once the

Austin Russell

minus okay, XX%, plus or feeds XX% then again revenue the mean, or or minus whatever basically line. we're because That's, X% is. plus I talking, like like that into X% or Yes, it not or respective

based year. So gets it's gets just to offset if the lost, economy it offset like respectively not respectively anything next to that the like it's that on then

actually got. term So we what long of affect, it doesn't the outlook

Thomas Fennimore

dates to bump. So, We're it our the for the SOP on on. doesn't still of customers target that want size be change track order John, the

make to revenue. And annual there converting so the then, need to you book start just it order and real into

so on the we're that don't roads And these bumps impact that. hitting there

implement couple our LSI these you One, revenue things, some say, for we is design the issues. external these of know move of some changes. particularly with projects. of experienced To to, would I of in revenue had And some QX help engineers related to a lightness off we

the the so didn't have development up future.And just specific percentage that engineers work those quarter. account we're to free of we it's where, less the recognize recognize come for going then to you during in so, because we And that's that this of quarter based receive completion for revenue going when and still revenue the upon in the get revenue, this same methods, we're in and percentage amount to completion way

goes down. goes cost up, your completion As your percentage of

John Babcock

And how OEMs order have Okay. your investment how you also here follow-up the capabilities made as already pertains product that of know much cetera, you of has flowed quick does then one be this book has through to still been LiDAR, done much to next-generation this where then have made this point? versus at into of it just et how and

Austin Russell

Yes.

able be for get where level a infrastructure that scale, right products about just really initial and iterative going vehicle this. the to this so a and is this standardizing we well is can have. you get this and automotive years of when there also for of just also of vehicle where say higher to majority larger Celestica to on what's recognize as development in that of is, just the But for helpful, that's gen be tens So goal I the that's from mean, are automakers this mean work throughout as the the from supply goes economies that on And with being really that of most what you ground not very a some the coming perspective both designed to standpoint, that's something call seeing.And successfully is off and talk economy to of LiDAR getting system the then fundamentally can of cost for the for the of at fundamentals that progress creating time of development a in not groundwork millions take required even so is that investment scale LiDAR and the the out to that comes it development would create partnership, the this -- sensors respective and of have safety the support we're mainstream and the particularly of also investment look we scale manufacturing be chain capture think actually well setting the and able question into sensor infrastructure to thereafter. I of we're And real the launches this particularly that's like able dramatically is really done, is next setup The technology that's we point terms very we models towards will -- already when industry I required to when really to today, I'd like product can these -- a vehicle we course, what helpful I to up able been what at as exactly efficiency, for each it. start of very, of TPK produce to the is as doing every technology and I successfully we've millions think set be what helpful. stage it's year of respectively.So with fundamentals the standpoint, we've meant that fantastic get investment that the produced we of worth we end -- be that can be say spent what's starting and there, we to back democratizing really so really the that's as

that a leverage there's $X to than if respectively unit of successfully.So have with next said, and scenario to obviously didn't have supply to did, next work about being and very year that's but the way, on we we're to shipping more you product. excited very different that outcome billion If we're business and the able opportunity this, million chain a details then like unveil generation along do that's an to what with able have

Thomas Fennimore

year, product, book. product have our it next about then while nothing of There from of your near in of confident of I'm Austin future as about portion some hopefully talk the growth talking some And said, question here. At next-generation pretty generation and some order in a next lot it been our the the our our that include, end year we been was order will this about the see generation we'll details in the haven't you'll future customers last John, book. talking for book of publicly with product. order about with the And we and positive

Aileen Smith

Our question Jefferies. from Winkler next to going Natalia is come at

Natalia Sukhotina Winkler

up, you one those highlighted clarify, the So have that to in I -- Tom, just you contracts the the a been in that letter on bit X wanted pushed could explain the more how do about of in in are these part the work and like quarter? revenues that think we should that, how guys seeing growth you also maybe fourth sequential that little

Thomas Fennimore

supposed to in QX. so Yes, Natalia, that get there were X particular were done in contracts

done instead got them of done of October is September. it in One actually

is say, days. the coming would here, be done one other going The to I in get

kind about revenue, additional at about would XX% it's then implied at QX. revenue the that from QX once revenue you we've of to that's as And opposed already that so look start kind again, coming say, will of that additional recognize When you XX that QX and up revenue.Of what million perspective, look million in of where will from ended QX in is, executed. is, I to contracts a we of just revenue that $XX of

contracts we've And QX we've and most in from that so sequential we already and QX strong locked loaded have feel that of kind pretty executed. to of that revenue good growth about

Austin Russell

over be like I XX% mean QX would growth what to from That QX.

Thomas Fennimore

know say have calculator don't I with XX% would but somewhere over my Yes, XX% XX%, I think around me. is you

Natalia Sukhotina Winkler

those a strategic little guys what was you very provide seeing competition market, of had question Like, the That's on do do your on forward? then how right? of And more kind just color helpful can longer you some are wondering, kind the I second China if of Asia term bit opportunity view, view you And successful your that of kind the dynamics you opportunity there? basically think, getting incrementally Chinese consider going more maybe Southeast OEMs your Does Europe? how change in and

Thomas Fennimore

is look, market, pace as Yes, I the which terms in some very fast, I the well say new automakers of adopting say are the -- as LiDAR would both would China technology, of companies, EV move. particularly we companies at there moving these Chinese

to win And to so very continue. kind success us that in Western China. of to make move far to sure that that's company that to is we But can to that's things at market. sure is success one only of that that in we We've opened been really make that that, the going operate the the way, LiDAR as customers, can able And to perspective, from to in make start a be we had in our China continue sure plant appropriately China speed That's Luminar And manufacturing see so going as to with we important think China, continue both China. the us Chinese but local you're in second serve the why we is increase globally. presence our expand think well to in in right to China business I we TPK. China up they need in as

Natalia Sukhotina Winkler

book, ASPs like, about and how guys China outside should just we're also, this. may, order on follow-up billion? the about that for for for the think you are one How ASPs order, longer considering of $X term, do the I if think And guy's market? market we the And you China

Thomas Fennimore

have, customers. Whatever's already in pricing our with to the order is book agreed

to We'll unique customers is going to our with and not automakers, LiDAR, autonomy. highway well LiDAR. we as on or like our generation Look, on.We got terms prices. costs kind our focus we're continue can that where best generation our impress that's are from upon compete the it's lower business LiDAR where to pressure contractually down where to continue We provides.And create the cheapest enable to to from this business can who customers look our value customers to provide in trying system the -- thing always you value to globally, to they're the the to ADAS who with build already in. system, on whether at so the conversations that the ecosystem that's China to costs technology that our provide really both is But our in compete we as we one be able like the next put in value in our next And get of tend bring the place. of but

Austin Russell

do the different all chain, of way that improvements are will the I all to I you this the foundation been ultimately this, to we even the we've focused This be to to And level, -- where where comes through when the what monetize it is out a through supporting the those is value play the basically sell LiDAR be independent insurance the improvements savings that ultimately that's with can respective And the occasions test have that again, insurance core improvements multiple and correlate with safety of able or some these proposition king, of outside we've lot, standpoint, we our very it's the and savings just will ASPs that the LiDAR business provide. how and a and insurance the the to success business.So on exclusive protocol and significant way of to been in entire a of and significant mapping it's also here benefits entire kinds the savings down able a be we is able we've quantify cost be part partner safety important also that respective and semiconductor role, to Swiss able with launching the that's just supply note are test. even seen new They're think successfully through as actually value associated important products to for more is being we've than example, has into to but and been to and and this this successfully that I've safety obviously itself. really system. able around how safety been significantly and an from can be to think of going the even the products AI said, expected Re costs.And ecosystem third-party very provided be what to software had developments before alone, from now think that, through, parts I LiDAR continue long-term of

certainly and vehicles will this I mainstream vehicles. even So be on premium think

time probability Vehicle are expensive. and extremely accidents average if you So expensive. weighted, expensive. And are over collisions even it's

be that long-term, think So preventing top all value can in that over company adoption seeing out terms down performance leading why this it's we're a from why and clear we're proud ASP to makes that's And the obviously in that why a technology, comes all supported. the that's from to very huge difference. the proposition product automakers the the standpoint, And there. have I the be it capabilities technology leading of what for respect,

Aileen Smith

transition our investors. to some going is one We're be Austin. next to to going The back Itay. for questions Thanks, from

LiDAR? X-year model Going RFQs the with be XXXX cycles, the XXXX year. by these RFQs be for Will next-gen pitched design will

Austin Russell

Yes.

So talking our here, half the I when second that about that, absolutely next-generation as of will say well. the would decade incorporate we're LiDAR

we systems the as respective to that's Iris+ the the we're when into customers, well, making and are, so to backwards new continuing that accordingly and compatible. that have automakers Iris sensors will But so both of the stopping. ultimately have are also and roadmaps customers.For say, scale it next-generation not streamline to We sure with existing that customers comes models,

transition and relates respective that they launch sure as that, hardware it as and have. ultimately, the easy respectively, they sensor technologies have new the and automakers to to whatnot, both an make models to straightforward can we software, with the well, As new

send automakers these kinds that of to is of the and be of to would develop and important what out production to What's us realized.And be that's vehicles able to processes and technology.And systems show there, really deployments emphasize billions I can holistic to great of on. sort are this onto seeing with well, to I but that it obviously, see there's be RFQ RFQs that's be that's as out. that So will cheap, -- whatever be able say to investing to what's think are just -- yes, may that we're new dollars possible, go comes implementation continue going the and their to it able when what's

a So will kinds I to And it people of smooth capabilities. even alluding scale. before, unlock, as transition, these spread be as of should wider adoption that ultimately, was

Aileen Smith

that the China market technology? specific participation from earlier, on what And Luminar's the in a given question and risks asked are sensitive one was for U.S. follow-up Tom present crackdown

Thomas Fennimore

Yes.

grow. to I some So the in world. all build place tensions in us that about face years, the to more technology. of as from XXX automotive becoming region to depending automotive and lives core every complicated specific be don't keep to China goal But software player. major said need right a no market, And say, that, anytime a data mapping in to perspective.And with to collection region, we've market the world goal to globally, for on we our XXX is do that a we more And our the and well saving geopolitical million upon automotive geography, to and our are, over and next achieve core already obstacles, is be we LiDAR there talked market, the our core how where we a and there. in we we in as mind, with people. limitations as the the over need continue major we changing limitations LiDAR And those success our so would our business on had order relationships near is dynamic LiDAR of side, expand future.There I on a us partner as look certain anywhere on Having as in important we in acknowledge business, core see the operate that are our

Austin Russell

I not the China. allowing into into less think terms technologies It Western allowing -- U.S. technologies technologies not in into the not or is China more the way the risk actually U.S. U.S. of the it be be market. Chinese so not would other around allowing China would

are I are we're some that's the those questions that dynamics think that of that everybody are I that I'm the posed -- sure being -- those actually seen. think has

relevant that's I factors, right at think, the So play now.

Aileen Smith

Next shareholders. retail one from

analysts, to into broaden back Based current for plans with we competitors a R&D the are to assets, the technologies? Before And making switch plan is to LiDAR on saturation deal LiDAR the related where sell-side your other technology cheaper. there evolving market? long-term to are what's similar place products in

Austin Russell

Yes, the about so I -- saturation is that for and so mean, what LiDAR market? saying the you're

Thomas Fennimore

I market at a a lot same that think companies, it point like, say, when our LiDAR it there's getting a that's lower raising sure at what LiDAR our the in a our the point, that are to it our a of getting we adoption, keeping at of like next to and of technology where to a bottom would LiDAR comes -- core mass I here's terms them next cost price making it not a where lot price penetrate the accelerates tenant LiDAR point that with can market strategy rate.So mass at is generation generation. achieve of better price

confident to into selling going in tools ecosystem we're the confident to to why going a accelerate investing we're point And and that not business components actually that mapping. is are winner tools are a create confident value for into that ourselves LiDAR be our non-automotive going we're LiDAR we're we're we the not create. landscape. case getting the next the in that adoption. we successful, markets.And winner, getting generation investing to our we're business that insurance. why monetize LiDAR be into a to value We why mass our we're we're in we're into is the software.That's to confident What customers in getting make those to not of monetize build in going And a outside the it's already the That's have create. that we're allow price that to we and of our we to are so that's LSI the hedge, the LiDAR winner, if the That's

Austin Russell

trillion factor and Because terms have we like increasing like of something massive a is here, not magnitude. this than absolutely and saturation of XX% -- on that's dollar technology industry now shipped fraction by it like for a It's cars X% less value is like right take like only like, automotive just back, most of number now it's it right that, the think it's are we again, probably the the talked like a to numbers cars now. X% us. in can and still, in like point terms And new of why in what, market the there's sheer the the even business is -- -- be right as a say with like we into industry auto of here percent.So that when vehicle scale like is like integrated of a LiDAR X% -- like orders couple models like important relevant penetration to the this and about, officially and although actively part I of percentage the what the the cars everything, by being is and value okay, game-changing of market of it's in the well, step captured

big think, and less the And metric. I pie, it, meeting able we it's to much for and get consistent people to specifications is we've maybe most the not you this.But thing that point. to trying can the it is do the of how of efforts with able think and given that successful overall obviously market be at about to the a difficulties that, make comes to that majority business about at quickly. matter different when and requirements when that slice take years create have and we this, systems less much in being important the terms look to pie in think the no of requirements R&D surprise over-saturation all safety industry technologies this scale the this as it's and a message how the an an challenges I substantial of opportunity, market which point been of a which in that's So and into I terms accordingly the There can adoption this with get at down performance over-saturation associated not of which vast and is how

so.I in survive it and over other that decades to have to Now, for come decades. all if centuries a XXX-year that you think I goals, hopefully, or to vehicles in us of XXX-year because to we advantage objective on for is us to an would what and like the where that's over long-term as we what we to respect exactly realizing business survive set for to no do. a focus don't market all when consolidation been -- up it, obviously well last and and factor is for the serves think is do down success respective well goal this company have have And there's there's doing it to life-saving anything.But this those the continue comes in through. that's ultimately where, we've towards a it on goal these factor see milestones, be meet really you beginning. immediate we reason outlives is survive term, And what I the to it's can mean, promised to And outlook terms from building then on penetration obviously of that of through. why what that that deliver But Luminar being we're that that's we're long-term the relevant the

Aileen Smith

at R.F. from comes Perez Lafferty. question Next Jaime

Jamie Perez

out. coming and to X, has models LiDAR. X series But coming aggressive out going be Polestar -- Luminar I equipped you've with from I of the Polestar? I the announced think Polestar going? spoken lot other everything about it How's the customers couple months are and what How a about is that LiDAR, a mean pretty Polestar X X Volvo Mercedes. a know was

So and on guys Polestar a between outlook of that could you and -- the for the you color tell relationship relationship?\ little bit me give

Austin Russell

sort in some the of very XXs X The -- what X,XXXs EV as able able resources, do have I incredible a and I pick of we they order And in Polestar Again Yes. world and to the to to public that very incredible deliveries, the planning and there. as Polestar be successfully. the partner, product should was Lucid a one to scale Rivians able up more real just it announcement that going tomorrow. in with focusing suggest partner best We with. to of following quote, revenue associated terms deliveries and us they're on would on out and like in to well. out, like we're producing with first a for with X,XXXs had what going been on into They of is now again, company. contracts really opportunity impressive X gives think of in starting Polestar to Polestar team of the think and that terms new and they're biggest the should be us. there everything it what's everyone they're They've out there.So start what of tune do Day And Polestar terms company up book just kind with be fantastic company.Obviously, XXXs the there's business and actually here the I of that great out got and this

So it will be great.

Aileen Smith

from Our to Delaney is Goldman come going Mark next question Sachs. from

Mark Delaney

margin positive costs costs factors in launch are may the you I'm other COGS XQ to on the gross understand what better to hoping go margin us you much quarter? then of the path can where launch being give help gross some bridge those sequentially more color at and in in Maybe XQ? being quarter. to related positive how to next fourth the were And Tom, can

Thomas Fennimore

was million about $XX had QX. loss down QX. cost. in We launch-related that, That about from $X $XX a gross million during Of was about million

so margin down continue in costs path the there related a to so launch to we gross really And QX. that positive those bring is reach

Mark Delaney

just still needs in the do you everything to successfully My may launch, launch of any Volvo Or to EXXX? be their side, do depending vehicle at in hopefully encountered delays after understand in second order do now need then the of trying is to order does is operationally, run guys ready just having Luminar soon. more maybe rate of what just for on work to get some ready need the test?And question Volvo resolved was light will the be better help that to to flexible, Luminar done on when but broadly,

Austin Russell

Yes.

ask I'm terms everything more of So, them probably the to obviously, I that we not, with able hand-in-hand with mean, in ensure to be details I'm appropriate we're maybe sure, working had. But there. successful a we're supporting launch. them, to

completed hardware successful associated able end large-scale support, on first and kind clear the of there of the then for global also there's them. have vehicle, was it that now middleware the actually, to -- Volvo the have the we side, on this line a at production and fundamental And all position that specific needed they that calibration We launched, did to to we there's successfully is software the Zenseact the we that and to takes And associated then the of run top we run-at-rate on metrics point. on and is calibration with launch it everything the will when line be the then product also as then Volvo software Iris vehicle.And of actually just we implemented on system I you also in full which rate obviously what's of sensor, that be alone. this in think intrinsic in -- that factory with the that started of South the end Charleston, successfully integration successfully the have a we're from is Carolina, very that, that the extrinsic line, out scale side, auto think able we case, inflection we support. independent said Like with that really out.So of great as in this, that with to milestone

that of for have to around cars into starts millions this dozens -- get and to they're when is Iris, hundred this.Obviously, and already but -- use have, with So, a driving of Mercedes can big scaling leagues we excited a we're everything beyond, we've and ultimately, customers of out. Luminar-equipped thousands then where hundred, it you

Aileen Smith

terms back transition next is, does performance how and few financial there losses? All Are processes Luminar recent right. business accountability of We'll for any a to from investors. about review think unsatisfactory The in performance? our one

Austin Russell

platform. questions all are the retail these assume for the say I

Aileen Smith

Yes.

Austin Russell

Great. Yes.

culture and, I high would that an from we accountability management performance within say have culture. a standpoint, So,

Luminar effectively overall can we've swim something corporate done laid approach a out as -- in come a in attest I make a that laid them goals what set out, and of or many terms of company or in that's to everything, key and of the can plus we've certainly business on in and think that to it's it happen.But the terms mean, think or the the from people we a minus.We set that, there. to XXXX, beat when in XXXX, business XXXX, we've the had up respective it what when overall and achieved And as of, of overall, actually sink terms along I do for I that level like what as all way comes to on we've we trajectory to meritocracy goals this. for needs milestones I we've have us very and be great put XXXX beginning, out the I be terms of those to milestones mean, much type of think what able talking goal, structured accountability you about

met respective execution frustrations we OKRs the a performance the the overall largely we that the We company and when cascades from with business I that leader to that relevant to it reflecting capital So like on there, that that have all core for those throughout along the entire comes each respect down have, way. and up.And rolls standpoint, like, been the performance and success.But KPIs, that we obviously, that's fantastic. markets and know actual said,

the possible I boundary good quarter. the what's nevertheless, first of enough. the so with always have we And saying pushing company. never internally, And bar something So into to to that's again, continue keep this achievable we I do going got think where in and we'll everything it's stop what's pushing a and at that keep

Aileen Smith

and right. color All or rumors provide from comment? some you company, Can about Jason There's our within turnover Taner and question next the management Eichenholz. some our And been of talk including some investors. one some Ozcelik

Thomas Fennimore

the Co-Founder news. Luminar. of Yes. beginning. part a be key critical crowd. that's part fake since Jason He's Eichenholz, my know He's has team. and always where Jason, He that don't rumor came our I chairing The as in been Luminar he's Jason, a our at of will is the from. mind been--

Austin Russell

hats probably in journey people and wear think the because I the along the all and in cycle way different terms this. it's of this, they business like business

as So Chairman the we recently of the him Luminar. appointed

taking Kevin recently who's of of of the and operations that aware, scaling charge some been you to operational Hinge, that guys he's side So it races of to we aspects for of be business, basically may already of overseeing of an it.When And off the the comes start. hired business. the incredible respective off the he's the aspects been too core

same actually respective our from have well, company. as that So who's came marketing at been and think so announced announced to as leading Tanner, no that's leading was relates fantastic.We marketing I yes, doing who's we him, the the time SpaceX we Emily here, he's with at also before.But and it the longer

in thankful reins take we're of be to have those Kevin where to responsibilities. some and on that's come the to able So

Aileen Smith

Kevin Cassidy going to are Rosenblatt. we question take next at from Our

Kevin Cassidy

us Mercedes remind more expanding could say and you strategy models your the models what would other the do tell us in that for get if Volvo and into Maybe for Thanks. Nissan, you current how Okay. at footprint what or that? maybe and your customers timeline is be

Thomas Fennimore

earlier already to we've the we it X Kevin, this Polestar. We've do and Mercedes. the had to it it at initially done started Volvo. at X at then went did We We year.

get the with of customer naturally. that and execute, continue initial win it happens to as you so And with in kind

shot on the sure deliver, to competitive you being autonomous have of they as execute, going you market the they you But execute, pricing.And next relationship, we've But to continue test that you're good renew the around to they're I and you kind cycle. the with you upon build to timing launch think I internal for products. existing think and I design business lines kind platforms.And of honest you going customers. as their depending us of business see their the software to timeline comes honest. the our And expand vary and on us, our by so of business. are what think done look, a always Now, That the going product kind make already, each and you, as different their you're as that's so as certain to real keep see customer they'll renew or at their systems RFQs of going run timelines driven you're more is and that it vehicle

Austin Russell

and model, example is Like vehicle off an right? Where X vehicle S-Class. we that of with like start the X line perfect Mercedes, like

of the an vehicle X It's and across decision to cycles and lineup the And models this see expansion and terms technology out, are X Okay, a on it high-end these details real And the have make kind that to months platforms but respective to to pointed across able to they be make able ultimately volume, so as do Tom happen.Now, is be around be lifetime, there. expand only respective as volume our to everything in that but it's XX-year once execution able vehicles you're you're there. thing. by you like of much. XXx like really continue to the to successful and some see that in in, ago these obviously,

also we and scale can around the book with. that's that we confidence contracts order So such why company respective the have really

Kevin Cassidy

you. if all matter controller, my wouldn't And Yes, so in domain it great. was controllers, that change question the to Okay, you're even their competition. next domain the they around different with was much

Thomas Fennimore

Yes. to tech the whether And as what we industry. that Mobileye, plant ultimately the or large seeds maximize market we Look, in NVIDIA, some have can, the try in that's the wins as the companies, get and we think many system directly to ad automakers that's we vats it's you. with the going whether of

Aileen Smith

of that, our with think questions. analyst are through we research most I

of community, received do note get platforms this our a we want all we Before our through make to question final investor from the many to questions that great we quarter.

question repetitive. answers all and in of had, has that, for that minutes will get that the could was not direction platform, stock last our we considering coming years. pretty mediums look we So one the future.But we been the in XX The through popular with to of them provide moving much through same most other within to X the commentary

for While to Luminar be unusual future? it's the raise to development, or confidence still in a little management's other strategy is news. on not is startup, information what doing, there partnerships seems What

Austin Russell

markets. No, years. think what on question course, executed of of milestones, broader This, been laid the execution to a great all in focused out is really and it's and what's capital from to. we've our of I what and We've the key control couple around this those past largely we

terms feedback able How of again, this to, lives overall driving share that better systems?How cars sort to feedback.When ever. as of obviously, and aren't where continue comes have is strong this I that, as Well, thing think taking to always to I it to key the outlook is than be safety this.When out the their kind about able of frequency things, much think long for everything, is say always example, what of existing be quantify you and view ensure are drivers, sharing welcome think important execute of to Re to how terms can of to to with updates, into we of the also and the to study -- help comes benefits continue this some going These level be the aspects to as technology be like way automakers it like, versus, better are there? is substantially one independent is terms business do confidence in along respective that the able in why, hands to do have to of this like we open news, the firm these in really we're the this in the different started assisted to We to as of, commission the further the it. you insight able with well Swiss of we're how we it's just it unnecessarily efficacy force associated business. is of much So it?

of this, noted volatility. for terms shareholder the -- this letter, nothing, Tom even an In there's I of and been example, think in amount insane just obviously

it take make of right. and the valuable do technology as promise out, a everything to value anyone's rationality these key that's support aspects that here where Obviously, a one point months but X this there's be doubt and of And consideration continue do. mind. say, be the a there nearer it difference into it's industry that value said, one be relative all execute, we're and get the gotten that. order and of has to to this point, that to book can so different versus look matter, goes literally the targets thing what we of in think trading valuations delivered.I view of commitment this about reversion and fund had, are fundamentally absolutely no what meet really what these around ability of at is is terms changed can we our was and around, credibility in key every was greater for clear questions was relevant reversion point is this, quarter business, arbitrarily generation like able very in on is just and short, a to businesses some and our able targets, like confidence that to order companies prove what longer-term really think think mean we to I in like And for of to this there's or what that market to I on this is too, metric. predict we to in we've what term example, you a there's as metrics.For X to can like, I along execute think to XX% irrational example, people's the at able that to different we've I that's to as what dynamic and well we don't to and do the greater flow And market way. hedge that how think, obviously, fundamental that build have like impossible ago.Like But implied like, successfully in we'll dislocation happen.So, implied a hopefully as really there's this, able most the in the the terms and the nothing where in our value I complete market it having be

now, example, a we're an probably credit, right a is of we're at take, at in getting that stands just it respectively of little of markets which order as fraction think, no point terms value.So book alone, to I a even if book implied capital from for for order kind joke. perspective, valued this

big the stuff, and I that but it vehicles.So, a LiDAR of as what shareholder then mean, for common, if world emphasize we to conversion can as everything in we'll the something will What in the that in you that path a there, book delivering question beyond I success that but that's to where comes the question these just We're different for you support. way, have way, to the to be be everything makes the order like great revenue? have, and is continue we Kodiak, way look we you And when do in example, instill Walmarts okay, this one-to-one aspects nuggets ultimately don't steps make able what with like execute? itself.And is, that going try of delivering just have how along to business? in the don't we into the be. really scale and the next customers partnership So we're and the the all doing How of Kroger's continue on company's be to doing use to long-term terms not we letter this to now we're leave continue asked -- that's that, like, in know its the that, does the happens all for anybody LiDAR, it outlook, product that's know our generation to intermediate help be to that can all as but great the the along and little

Aileen Smith

we With everyone would the submitted. continued you your to interest to seeing And and We great the are for next questions right. the our we We like for that, at update. hour. look the think thank top at I call in forward their participation of thank everyone on quarterly Luminar. All business

Thomas Fennimore

everyone. you Thank

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