AEVA - Earnings call transcript Q3 2021

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Operator

Good day. My name is Betsy. And I will be your conference facilitator. I would like to welcome everyone to Aeva Technologies Third Quarter 2021 Earnings Conference Call.

During the opening remarks, all participants will be in a listen-only mode.

we a remarks, session. opening the will question-and-answer conduct Following

to being conference simultaneously to As of over ahead. today's please is Relations. turn Fung, recorded Andrew, Investor call like a reminder, now call and go Director would webcast. the Andrew I

Andrew Fung

Thank Aeva's quarter conference everyone XXXX to welcome you. earnings And third call.

These and should today subject will statements our materially today, Salehian, Aeva's variety of forward-looking our the as and current Aeva's of be views of that statements to These of Ahead only Joining will third CFO. differ not we statements can reflect on CEO; press on are call, and expectations. be to be we results Please this call on actual our and are expectations website, subject this on uncertainties. based views issued and upon presentation, Co-Founder today which subsequent and to date. are Investor from as making our uncertainties call, Soroush cause a assumptions, as relied note we refer at any that representative quarter could release Sinha, risks which to and and found Saurabh investors.aeva.ai. of risks Relations

material the quarter ended filings June that please refer of Form the for with our discussion XX-Q and our to the XX, further financial a other important factors our risks affect For could results, SEC, including XXXX.

financial believe and today's measures, to website be the In that, useful we available of a in from should webcast will Investor These on Relations supplemental isolation turn A our call let in non-GAAP as to substitute the me replay which Aeva's or With considered over addition, this during not Soroush. performance. call for measures measures results. link. non-GAAP call, will discuss be we under company as are of addition GAAP

Soroush Salehian

summarized towards everyone. we important commercialization. achieved that solidify an and a QX path Thank good exceptional of our milestones to a our Slide like you, was highlight quarter of which X. number Andrew. few afternoon on are I And would Aeva as accomplishments,

the production trucking scale. the PlusDriver LiDAR automated today, announced win autonomous Plus, on significant volume it at is composite key implement scalability a First, to driving, chip safe transition breakthrough confirms well further we leading and Aeva’s to to industry's when as FMCW solution. XD increasing trucks driver automotive because automated LiDAR This on the LiDAR grade of and as Aeva’s was performance fully company enable

key non-automotive milestones We also automotive remain other track our on across development with and collaborations.

LiDAR chain to market. Second, we to our XD bus bring strengthen continue supply a to

leader which our have agreements announced optical cost our the path Fabrinet milestone structure. XD production our line. LiDAR our electronic the with to to accelerate which chip and of design the B completing of We and release Aeva automotive final and the module, Samples grade important certified capabilities in provides manufacturing And finalizes third, manufacturing and advanced our achieved precision produce architecture

updates. to now Slide would Turning X, like provide on color to business our key more I

multiyear over for Plus’s solution, end in fully Plus LiDAR starting driver their truck With Plus, We are autonomous production intention deploy has range autonomous a long to in the by to system. plan XXXX. late-XXXX. to of globally, in followed Plus’s deploy And trucks trucks XXX,XXX by Aeva trucks. leader self on XD includes incredibly selected production driving excited that perception share program technology This their

enabling been stack. combination stack Adequate This passenger longer challenge enhances safe previously to range the proprietary automated of has trucks and networks Plus’ crucial LiDAR system addresses particularly been validate to than Aeva’s heavy much legacy Aeva in have driving, as long Plus may that XD time obstacles selected applied LiDAR. situations. test measurement, vehicles. many such also perception unseen stop ultra-long a for provide take safety faster which critical instantaneous Aeva’s range to Plus combination LiDARs. edge reliably the its unique since since and response to confound XXXX is perception and autonomy Plus’s velocity with duty XD cases, time We critical and working with they time response for of achieve in The

LiDAR, for back approaches While measurements, technology. the time adoption trade-off between direct and advantages understood of the the resolution some legacy conventional for industry has perception, time velocity to unique interference, over of the lack with with has and conventional potential held significantly improve FMCW his as FMCW range applied such

scale software. including [ph] world. not the scale. their through with and enable company's leverage largest the technology ability but include to with same to some constantly FMCW deploy and XD position transmit hardware. leverage Plus data, so measure solution, Aeva’s already LiDAR XD And focus in provides with and only performance carriers range, LiDAR and The objects that higher Aeva’s truck sense the solution and our millions share same Aeva’s more dependency. chip including signal also distances to beam confidence market utilizing simultaneously second. self-driving uses LiDAR and longer LiDAR the than solutions, XD strength of while next today. precise FMCW at LiDAR XXX that of level Plus to velocity to legacy fully volume per us largest them enables This solutions breaks of reliably achieving than OEM by bring Amazon, classify customers as can a of the has and Enabled the because for to heavy-duty OEMs, processing This does algorithms However, continuous points freight they driverless FAW core use capabilities our the our flexibility to their similar customers proprietary meters their we Driver-in

be volume production selected for look forward are excited to Plus’s supporting We to and ramp.

and which that of Aeva module to this engine to Let's we solidifying as Slide to week, a development Fabrinet Aeva’s integrates single produce silicon the unique core market. has now move FMCW a Aeva’s photonics platform. to LiDAR all chip onto announced path the bringing key sensing technology, components X, element chip the the XX LiDAR highlights Earlier our that selected critical LiDAR module XD is

with Fabrinet, are a trusted photonics and and systems pleased Xs. a advanced qualified global important, to devices precision We Tier manufacturer of supplier optical OEMs integrated silicon automotive to and leading equally work many

increase agreements, volume part bringing quality automotive As ability a confident manufacturer the at module we scale as XX. production. series well advanced in as produce process with in capabilities. we online team on for up update capacity serious local The grade will now, our securing efficiency customers are establishing our before line automation for and programs. like Ahead would Slide a Thailand of and manufacturer Aeva’s of to working with I to detailed manufacturing now everyone leading By at the the that feel we the our expected to production. which of to ramp are are accelerates on XXXX well and production production that supply start third-generation and our chip Fabrinet line new Fabrinet engineering objectives, support

three this to significant achieved four delivering date. on we the XXXX. of development already to on goals progress remaining the Based And for set the sample already the are finish goal year. made have We final confident in

programs towards markets their have we two volumes. in production opportunity with respective Nikon, scale with for X goal to large First, leaders reached additional Plus and to our

ongoing believe milestones growing support our across team, we other for partners. of are With Importantly, we also our on deliver we positioned development programs. continue all to work well to our

growing Second, and on non-auto met announced industrial the our collaboration billion quarter, engagements in $XX automation expect non-automotive to with This Aeva’s and metrology was which accelerating applications. opportunity Nikon and markets. goal we last accelerate

LiDAR both As I applications. is there in automotive for Aeva’s and non-automotive XD earlier, mentioned growing unique interest

and will to We bring to that towards put continue our scale. resources to align our mission opportunities LiDAR mass XD Aeva focus with

recently, strengthened on processing with of a our this startup B forth throughout including Sample our And for production LiDAR for supply our significantly chain chip Aeva’s which chain and number the XD key manufacturing chip finalizing selecting capabilities Fabrinet silicon have produce we developments. our module, developments to towards production. accelerates key supply year, most Third,

provides to the a product cost product which a quarter, us we the toward milestone path This completed key the final release, architecture design finalizing and is structure.

B This well starting earlier, financials. for And commercialization. we to mentioned this I discuss year to turn to us expect our that, partners development on units track the to with XXXX. our qualification with and the call to deliver Sample planning will timeline As Saurabh in leaves are complete to over

Saurabh Sinha

Thank Soroush. you,

path turn Let's million results. $X.X which summarizes XX, towards our substantial reflecting to our Revenue make financial to continue quarter third development Slide production. and in milestone was we our customer progress the

third cash $XX.X as to less lesser a Our G&A for quarter. million expenses. operating development, was product and and marketing capital we loss flow expenses and used, was expenditure non-GAAP comprising $XX.X million to the which related R&D sales operating extent define cash Growth of

million remains Our of invest cash balance totaling equivalents at cash, for end marketable and in sheet spend discipline third demonstrating securities quarter, continued with the growth. how and strong, we $XXX

financial the are on weighted mass our Soroush we shares Finally, customers. execute quarter Aeva’s a and to as over closing And we results I'll towards In call great was that, scale. for commercialization, realized third XXX.X in to list to we average strong back in position bring progress continue program the XD summary, turn have growing our a of the reflects million. to with a With advance LiDAR remarks. outstanding

Soroush Salehian

you, Thank Saurabh.

mission have our marks traction. for the to team with for time which the quarter perception opportunities to demand confidence We I to accelerating all enable excited with momentum, wave technology in and is the everyone customers Thanks us. upcoming dedication appreciate confidence I we on that ahead. towards technology, bring commitment by questions, of supporting of lay hope path devices. the last laser-focused which growing Aeva our I in will commercial of and like And unique resulting mission, commercialization the remain am stakeholders. for XD incredibly Aeva’s And Aeva’s an today. to for our all taking important and next your on breakthrough great LiDAR Before perception. our would progress to Aeva's Plus to increasing win first thank the production our We our relentless in in the milestone production the all to

open line We the for will questions. now

Operator

We first the will ahead. today comes question now The Please Rusch [Operator go begin Instructions] session. Colin question-and-answer with Oppenheimer. from

Colin Rusch

expertise of Can get better engineering bringing to and table specialized guys. little Fabrinet? understanding formally with Thanks them? procurement I start wanted made you've so with we they're and the sort added a much of agreement the to what value bit

Soroush Salehian

Yeah, thanks the for Colin. Sure, question.

module Fabrinet worked they some in them is with quite already they're the OEMs automotive module And be integration to automotive-grade heart to We've certified, expertise in is photonics Tier system. silicon and manufacturing. a capability table is manufacture for what So manufacturing. leader the time And bring already. Obviously, a LiDAR chip really Xs. chip and at our to chip That their of modules. and And both clear to the is supplier LiDAR

So is of manufacturing silicon photonics, already hundreds modules. today integrated of thousands Fabrinet

do So is actually and they're I that thing really capable which decided experts the Fabrinet And work one of them. what to we do, other they what's with about LiDAR interesting them think reason using is at continue the to our same they're their already those for production volumes scale facilities. module auto plan pour manufacturing, in to intend grade facilities. we And at we as

Colin Rusch

take and table other Perfect, to enter pretty at capabilities that pricing agreements the you the as velocity a you questions bring your look And you couple into data then, model, I'll now. with relationship production significant. But that offline.

as pricing how particularly handful you customers of production is with agreements? thinking that into about and, you're this I'm the that curious going you're and move working right with how conversation now, So

Soroush Salehian

Sure. traction Yeah. in seeing details we the can't exactly are Look, on But strong market. obviously speed. I provide

that. Plus We engagements each And momentum, as course, line talked about closely and an laid have all in of what evidenced for customer, to we've we in as before we work really This terms foundation us the goes, in pricing we for example and with wins automated quarters. we're obviously, by up way the them of this number plan ability into support And trucking to that trucking. as the as to space. the volume general, make far past know, discussed With to of had, scale increase encouraged are sure have production. automate them also with the the by for through you the

Operator

question Tristan ahead. comes Next Gerra Baird. from with Please go

Tristan Gerra

that announced the And much that design quarter terms in TuSimple? Any pretty volume potential functionality the you've when Plus the Hi, provide timing previously announced plan another as the afternoon. of could and for with today? same win good is you

Soroush Salehian

Sure. Thanks your for question.

to color excited program. Plus very are we look, I'll production all of first you by So for key selected about little give a bit be this. this of

our see Plus to is is So this in bring helps range solutions, as supply believe fully really late-XXXX. is global unique for why in and Plus, beginning That because ultra-long and driving capability, you for in as but And long they in multiyear enhance incorporating deployments. including to which not scale. capabilities, autonomous a value, selected and Driver-in perception mentioned, velocities, Aeva they safe agreements automated It Aeva just actually solution. as us also their significant instant

So and as flexibility though the up. to for about B giving from well a bit starting both shows we're to that's solution. I a think fully And, and earlier, of how bit really driverless our in into context driving. they're the but importance the on that general, starting Aeva And implement that of with the continue unique add value Driver-in and hardware XD or see And really scale. assisted LiDAR traction you driving autonomous same autonomous as Sample, Aeva’s work with pick intend a

a Plus to I truck think So we LiDAR have I XXX,XXX is the volumes for as call that with on the XXXX. a majority over this what's mentioned right the timeframe. planted interesting units long-range total by of the And supply in

so the scale here. should we're And sense of give talking that that a you about

Tristan Gerra

That's you've about FMCW LiDAR have up, win talked being very past, follow Thanks. know that then in other and on velocity. technologies. from I for the different design range a to people latency your And useful. some about talked than very getting

is So allow other latency question an not to traction given win you the issue. see LiDAR enhance latency what be that have the you perhaps of Is because that algorithms it suppliers? design to have, that FMCW that must the you people will as

Soroush Salehian

simultaneously. really I we not we is under long-range meeting break. is with to our has and the now the Sure. interesting of of starting across system. that you that thing to what is And because those And I key momentum us solved a FMCW of is latency. traditional call figured a continued see are Aeva but also think that traditional having some and why I applications. evidenced see as Look non-automotive and conventional also started wings the seeing has we think in is traditional way, cable automotive number of trucking, the FMCW now a other that's I'm important belts, is you're what part attraction not And actually But resolution conventional the way the challenges. sure mean to in high of that by what And done both exactly terms the and that think out by challenges

Operator

Please from next The question ahead. go comes Suji Desilva with ROTH Capital.

Suji Desilva

that the I hi, progress Any Saurabh. with because and Is Soroush, case or volume In If say than a been more of you’ve business be cars. color like might there? it's because announcement. Hi, Congrats for come seems the faster but kind market it trucking, a that case know that here sooner controlled to while, environment? the is of helpful. the would on working Plus them

Soroush Salehian

there's always trucking business no -- truck on today mean for that clear. the is the secret drivers look, market. a case number it's of drug Yeah, shortage commercial And it's think I pretty I of

and partnership the road. of announced are also such And to the market So starting kind going past TuSimple think consensus as see forming the on capability, need enable also I an adoption trucking for with see the the on we that to today And for to including about and importantly, towards acceleration by starting see type technology, FMCW-based that's we're autonomous we you perception window autonomous well. of roads. more in evident we trucking partnerships some the Plus

bit to key of So in trucking driving sense a that make of enable timeline earlier I adoption. terms the factors think that's commercial

Suji Desilva

the just the quality get that B to to to planning at you of some customers shift color Sample on And end year. Okay. the want I

X C for Just Tier the there Any by to for needed color understand to after implications whether partner maybe Xs? line the that Fabrinet go Sample like build need or line that, helpful. the be comes Tier production, the obviates and schedule, the C is production before the the whether you Sample a production

Soroush Salehian

Sure.

of chip the So module, system. assemble Fabrinet full our actually but at heart makes system LiDAR the our that's don't they

working obviously We manufacture B Sample. to our are with partners the

recently in in milestone today, which design And of I B the we the B an that with of critical because Sample, structure. structure the cost design system architecture. sets As crossed of also release just course, it -- is for the to mentioned the call provides Sample product across key up path our final path

chain will we make to we to will partners supply with And parallel, we meet capacity we're work well announcement our that to the Sample done B on in sure securing capacity or on continue LiDAR side, those with validating of processing supply refine the chip, but have demand the production. And and the timeline, just all as ability key system confidence be with the for our customers have the XXXX, the have I the are well silicon as also into suppliers chain think the going so our the learnings including towards Fabrinet And, meet not to our our with continue production. that our all the in module quantities work chip great needed.

Operator

from The Street. comes next Ferragu ahead. New question go with Please Pierre

Pierre Ferragu

for guys have And on X on new trucking. taking the particular questions my win. Hey, thanks, I question. congrats

that Aurora, now So they all FMCW. Plus first, related TuSimple and use

you the how I represented So talk share guess, I'm about not can of market tracking I'm those sure [Indiscernible]. the names three

And yes maybe passenger just to tracking? instance And know of that's let if is because it FMCW that's us the of So case, it's is And for is in why that? that. and timing and say case press maybe specifically visible similar in things so car less that if analytically? fair the remain like the releases traction

Soroush Salehian

first the do question, as Thanks your Sure. I I we mentioned, agree. point. for Yes, Look, first question. Pierre. on think Hi,

a to of in driving fact some becoming autonomous there But evident that it's of general the I side trucking of because also general. is was I it actually increasing consensus FMCW the think first think earlier. time transition for with the

also So there, And I capability, -- think the approach. of clear. objects points that unique is you pixels ability meters, few that we with a I because distances, you instant reason of should crucial velocity Aeva’s see an out. Long-range is kinds when And away velocity, mentioned names immediately the And take of object you this key something their past of will you is for far as benefits or the areas XXX really when have think see is that the trucking you as critical. FMCW are even key really at traction you to need quite dimension about. to go right And super on multiple. to add care that the know is, is those ability well in

typically so stopping LiDAR done don't And which snapshots, taking it legacy you to distance. take keep time a of looking and with effectively have And is do to that's crucial, because time long at that. and trucks frames lot offline a

chip these to on no significant course, out. of our module. which interference to this more side we And that's you to making have have around the up now innovate X coming the all the able these more able on together chip progress chain critical things along think the want be fact things. becomes further is we're road. the why LiDAR of as as with And more So have and that And well, ramp fact module, we to that are the I able being see of scalability, to been on manufacture supply the you

starting we've I we're kind of transition it's of bit -- of manifestation about So the see a I think talked that to happening. and before, think

Pierre Ferragu

then system And a be give how on similar January sense. of is similar you've of a And second a description my their no Plus part the Can given visibility lot whether specifics like [Indiscernible] TuSimple with the stand find where they through you us you've pragmatically, makes that of define partnership with about question when XXXX? how already very today? and agreement terms in of Thanks, you entered to ramp?

Soroush Salehian

Sure.

technology, are details customers the progressing the that can't our I globe, today. well we TuSimple this them support of continue with a comment on call on with obviously look, to But So fleet. LiDAR across to we milestone And as expand platform automate for throughout look forward out years to that next robust driver it do continues the trucking build and as out continue we a we their functionality. to

Operator

ahead. question go Peterman The Sam Please comes next Craig-Hallum. with from

Sam Peterman

Hi, question. as my to automotive guys. wanted cars I Thanks on for to well, passenger taking trucking. than but rather ask specific

that Our -- make sales frame OEMs your for years sense of in your timeline to XXXX-XXXX and aligns today. decisions obviously, on ramping are the industry And with for right production LiDAR that time the is starting automotive. now

with So could I you any auto guys was are you curious in RFQs? today? you Do customers have where if discussions share RFI

Soroush Salehian

Sure, question. thanks Sam. Yeah, for the

of yes, obviously, So course.

but in we RFQ around RFI We in those space cars not passenger are involved that timeframes. just for almost all also this see trucking,

I encouraged We mobility, are kind by trucking and automotive number seeing the in mentioned, both market, in of traction across as passenger but strong, strong also general, applications. in engagements non-automotive the increasing of

the we think year. talked talked about, also deploy here earlier to examples some for we a and coming with undisclosed others customer quite timeline we a And today about ramp the bit. XD our foundational But we not of selection our I customers about we're up agreements in to talked and LiDAR give today us this course really that of visibility Plus the the have about our up. of discussing lot our yet, -- that that's --

are efforts highly to to bring capable, and importantly we want capability have continue focus So scale. align as And and to what desire advanced the our technologies I to with. mentioned mass who partners the also that's also we'll before, the perception

And so so that's I can what say far.

Sam Peterman

for Thanks enough. fair Okay, that.

would in consumer phones, your Sample like be got And development on to products you've going to consumer of the want there? almost on color samples that there side a down work there locked is question we developer now that's B great. heard down? kind platform especially we Any see when this might anything scale ongoing haven't to Second while, I on ask mobile

Soroush Salehian

Sure. Yeah.

opportunities customer terms as we electronics opportunities, the generally course significant do of well. in see So in of

foundational As capability. currently enabling we're on focused I've discussed previously,

means So what that that our raw solutions. perception needed the level is performance for

us have on before range more capability of long-range have performance we accuracy, performance provide off level of allows different after really is to contact. so raw that capable what is of at is you and go Because And including to distance to very as technology technology talked So, knowledge, with this of working applications only other meaning our this recently level, when the our fundamental also which a from changes of completely that micron a a the perception. game FMCW trades the perception. things These we consumer. performance measure far focused of doing the micron that levels without

And to more into enter implemented going go updates, that share we level. those market. as capability, applications those with have well. and as to the into sampling to effectively as develop working we'll this after We're And so customers and also we continue

Operator

This also presentation. concludes Thank our question-and-answer call. concludes for session. today's attending And you conference the

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Aeva (AEVA) 11 Nov 212021 Q3 Earnings call transcript