Earnings call transcript Q4 2022

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Operator

Good day. My name is Doug and I'll be your conference facilitator. I'd like to welcome everyone to Aeva Technologies' Fourth Quarter and Full Year 2022 Earnings Conference Call.

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

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

conference being today's webcast. and reminder, a call recorded is simultaneously As

now call Relations. of ahead. the to Andrew, to go I'd turn Director over like Andrew Fung, please Investor

Andrew Fung

full to fourth everyone call. welcome, and earnings conference you, quarter Thank and year XXXX Aeva's

and today Ahead and refer Joining CFO. full Aeva's website Co-Founder Sinha, this year be quarter presentation, and call, will we can XXXX Soroush and on are today our Salehian, release and which on CEO, we Investor to investors.aeva.com. the at Saurabh fourth press call of Aeva's found issued our Relations

of will Please expectations making note should that subject These risks on this and which differ that only results upon assumptions, as our statements materially statements not views from call, These to current and date. actual representative of uncertainties we of subject as on reflect and subsequent be today uncertainties. to variety be statements based are risks expectations. to are forward-looking relied our could cause a any and views of as

XX-Q of further SEC, financial our Form important other that factors to a risks recent and the affect For please most Form our filings XX-K. with could refer including our the results, material and discussion

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

turn to me let over that, Soroush. with call And the

Soroush Dardashti

key significant that production. on was by good Slide forward the moved and a like our afternoon, number five. achievements towards a year Aeva, at that milestones Andrew, marked would summarize path you, us on to of I everyone. XXXX Thank was

introduced LiDAR factor. form high we and world's XD first available offering II, commercially a Aeries the First, performance smaller

more shipped than XX course the to of XXXX, we Over customers.

a on programs to or us with the enabled advanced stage has growing progress RFQ to vehicle number this Importantly, of OEMs. leading

because possible not our production launching up and for approximately to a enable us initial Second, the our products. our manufacturing is to the growing I of product of three am the of times the bring increase to ability accomplished team pace trivial, demand Aeva our was by yearend, by unique commercial line; very proud more work progress meet new of and

we SICK addition solidified the expansion with Third, the accelerator collaboration of automation established our growing markets, AG. and into our industrial with

existing we spend. as to automation development accomplished opportunities our was perception for using core our including sharp a completed this are automation, focus also on of customers, well LiDAR-on-Chip Nikon, of fourth, all which in We for maintaining as and industrial platform industrial while our grow

to with came limiting XX% ability in us which year in well LiDAR positions below to we market. million provided more than our OpEx We for the and investing without cash bring $XXX Aeva ended to strategically by to the XD XXXX outlook execute. securities, continue marketable

advancing our been has on Aeva for program. business on share commercial selected and vehicle by are excited I'm has to to growing seven, now beginning I to to more top like global that Turning recent been progress. would efforts developments. In development show OEM provide momentum XX Aeva our The team meaningful color particular, laser-focused Slide their

OEM XXXX a used of data production LiDAR be will the targeted dimension of with valuable on-road vehicles as LiDAR are new development XD long define starting the a Aeva range re-enrol fleet, start deploy with production. to this specifications We where to on for velocity

Aeva's achieve We the velocity unique engaged for perception have with start standards time can to to high and for software they this been some safety. now and their incorporate data OEM

better unique LiDARs velocity critical instantly can or road. classification over advantages interference of other on immune time and is OEMs margin objects and this capabilities. in this this XD detection the share advanced more over can from of pixel with achieve We to helps provide of year. LiDAR and believe measure and to of or the hope We details flight for the it safety every for to ADAS on autonomous FMCW the a Because broad course collaboration performance deployment of sun, needed

to to industrial automotive, which for for automation software market, the distance industrial development same core perception chip to QX, of growing industrial the discuss with the a but architecture sector. eight, Slide large in LiDAR-on-Chip and automation, large pursue Moving completed we In are measurement using I which progress would platform our the our different like is precision subset of automation. utilizes we

measurement is many for inspection manufacturing, distance used control. industries across quality Precision and

for size, market resulting range is distance all or example, are in balance solutions dollars for to measurements. skews broader often already that the performance, right achieve; has each multiple architecture long current by cost mid meeting in multi-billion typically the size adoption in solution, application short, challenged unlimited of in one product and While

Through allows multiple the a scalable, the adaptable all this performance think immense We achieve with needed precision factor. architecture compact value same platform. multiple the same end affordable of form at longer from LiDAR-on-Chip across the applications us Aeva's photonics bring ranges, to level software, can silicone to on short flexibility user opportunities to pursue costs and can in

ability to micron-level for platform applications. metrology with Aeva's leveraging industrial this achieve Nikon, our with starting using precision collaboration We're

plan perception from large this is distance our pool a opportunities. for and Additionally, platform measurements to the leverage growing market scale to to year LiDAR-on-Chip respond our

manufacturing process to and to and support nine. the where is line are Slide manufacturing manufacturing overall our line a up commercial that system simplifies to turn LiDAR initial complete new Let's last we our pleased growing momentum. am This calibration XXXX our successfully bringing in I we year, share line assembly, After expanding to test.

deployment to added customers new needs this support product new to production. expect We mass until existing and our capacity opportunities sufficiently

implement will the levels Along of capacity, on months. progress towards Earlier this automation to we manufacturing the and production. this as new new also process with year, higher line optimizations we began next line to us over continue increasing our few expect allow

now like I share to Slide Turning year. to key this about XX, our goals would more for

wins more our objectives progress commercial on and convert program to following Our priority the of to in XXXX. is focus

we additional OEMs. production. programs target number winning two RFQ leading towards or a on stage growing programs with the vehicle to of We're First, progressing advanced

we In to addition, this in programs position this industrial win secure of but engagements towards do our are further we engagements, LiDAR-on-Chip We to believe not platform. our our we year are leverage a do additional year. looking where all can within opportunities expect production to major perception sensing

used that In automotive Second, we plan serious in development automotive, includes final will completing for product production. be complete industrial. to the and this form key factor

continue this platform expand prepare to will market we automation, iterate deployment to for additional industrial for our on scale. For opportunities at year and release

line, we expect on discipline which strong our to the expansion provide are And work existing to XX until maintaining and production programs. market. support complete new capacity financial of as sufficient focused Aeva Third, production manufacturing fourth, secure customers bring to to we our we additional LiDAR

discuss will OpEx more be Saurabh to we next, XXXX similar XXXX. in in target to detail As

have sheet XX a invest balance LiDAR will demand to our strong increasing We and technology. meet for continue strategically the unique to

will over me the let that, financials. call With to discuss Saurabh, who the turn

Saurabh Sinha

good everyone. Thank afternoon, you, and Soroush,

full XXXX Slide turn Revenue customer's million, standard included $X.X discuss financial by offset of financial aligns due adjustment roadmap which provision million year to $X.X was customer of to our million, forward partially with customization. on to line our look XXXX collaboration XXXX year capabilities. Let's existing towards an an continuing less with for This their program. product our this $X.X revenue results We full was XX that to outlook. and

operating Non-GAAP XXXX full $XXX.X loss primarily for R&D which the million, of year expenses. was consisted

expenses operating below manage in efficiently our XXXX to than by and continue we more it outlook addition, for annual In came XX%.

million. for year the expenditure This with and us XXXX. cash operating is which fourth full to year flow Our quarter million $XXX.X $XXX.X for strong the less the a gross marketable cash securities Weighted average million. use, end outstanding of was capital position shares cash, enabled equivalent cash $XXX.X was

Turning of focused and on financial increasing said, Soroush for our our development now on validation as supporting to and year wins their a end are product outlook customers products. we this XXXX;

at XXXX by in We are least key deliveries driven XX% by product to grow year-over-year, to targeting our customers. revenue higher

line XXXX As expect processes we year, backend loaded. manufacturing the first our of new half be up and to we are optimizing the revenues bringing in

targeting excludes be XXXX. are potential and non-recurring to charges compensation operating non-GAAP similar to other stock-based expenses, We which

execute And to plan lastly, shipments, support significant convert Aeva's balance additional ramp sheet product up have on is strong capital our we programs production. continue and customers existing to and toward to our

call will for now closing I to the turn remarks. back Soroush

Soroush Dardashti

momentum really are you, about Saurabh. XXXX. commercial the in summary, excited we opportunities growing ahead and In our Thank

substantial by Over OEMs, the programs tremendous made past on to team. Aeva quarter, progress have with work the global the thanks multiple we

LiDAR-on-Chip our large on industrial opportunities for we Similarly, automation. and use actively engaged scale growing are perception implementation platform to

to continuing and opportunities these with winning on existing towards is XXXX our partners. in focus Our work production

our financial our of position in unique position over and look a strong to are to so, and do sharing the this progress I year. We course with technology forward

With the we open will questions. that, now for line up

Operator

[Operator Our first Rusch of with the Please Oppenheimer. with comes line question instructions] Colin from your question. proceed

Colin Rusch

progress. much, congratulations the on and all so Thanks guys

the the and can work about you scope samples of little point? With changing on scale customer to out, increased bit and product, talk availability to and this it's of samples the able able that been having a you're engagement how the get of at availability

Soroush Dardashti

Sure, that. to Soroush. happy answer is This Colin,

on for right? did was a we achieve goal. II, for us, the We as set really this delivered and factor last that to been launching has Aeries II this a goal obviously year We So, release milestone Aeries key us. key

that us being customers. shift on over I resulted launch call, the As XX-plus in to mentioned able

including collaboration in in with collaboration new we've up our further manufacturing ability have our partners expanded to existing We with with well of initial made mind. the industrial progress our secure in and, also good SICK with in addition the to AG, bring as that, Nikon course,

So II advancing multiple all which now with obviously stage stages actually deliver problem. a the been our of towards late to to could not really resulted would've continue or progress if our us customers, Aeries we few that has

us. that's So for win-win a been big

meaningful also case vehicle that think implementing and now positive call the XX on us start have on in milestone our are customers decision the as generally I top we OEM significant making been which for their is the to mentioned is fleet, LiDAR point well. and feedback progress a I quite

answers that question. hopefully So your

Colin Rusch

also Yes, a the little key the year, that and this line And you of manufacturing CapEx you that scale? talk you're spend year this the towards that's into larger planning bit now, then right as about can with to a on working that you're put work helpful. areas process, maturation then

Soroush Dardashti

importance terms expanding simplified on the line, manufacturing thing I process. we're being Yeah, is the so overall our increase further this the a new capacity and as is system here manufacturing in LiDAR to our year really call, our mentioned that, which

We are increasing automation.

new capacity this sufficient support customers will our line, to We production. with new have until and wins

the for engagements up -- line be new we're process is really secure but to activity wins, optimizations, this So which getting this us set those now I of the with going next opportunities, is continuing to setting the really key customers. throughout mentioned around and automation on our really this our doing our and call, to product months of rest increasing going those few next further continue be the -- to deliveries level year scaling to to the

Operator

comes of with question. Street question Please Chkaiban your next Antoine line with New from Our proceed the Research.

Antoine Chkaiban

Soroush. question. for update Hi, Andrew, Thanks the and taking my for

main give ramp, the adapt you suggests recent LiDAR maybe perspective changed enabled on us can versus FMCW? my of with question to whether to and [ph] on please two that anything by multiple has maybe LX-designs what when flight yeah, OEMs So out are with what pushed conversation thoughts eventually LiDAR latest years will are LX in those flow in regards their news they latest are time and particular, one your platforms and hearing getting situation is, you

Soroush Dardashti

Yeah, sure, to Antoine, happy that. answer

and there from type type OEM-to-OEM vehicle obviously and these So, differences is approaches generally differences the I across timings. there vehicle folks, level in think is to automation, between

industry, very, I can level has, what the are assume what high high super very timelines the seeing from hear think level, some in we is wise, of automation is we pushed obviously the of some out.

these been units provide to customers now terms of LX actually automation, the the towards and critical stages. actually validate, so focus the for to starting delivering has start a progress but OEMs case actually lot But that's able from our RFQ we've of our where is advancement plus that make this and and throughout from applications also evidenced samples they actually by in opportunities our that ADAS can those fact been to importantly,

Aeries II now we're as last to are a a that programs multiple are result So our ship happening. ability with there of of decisions in year RFQ and number

leader we We three this call talked and this evidence about, is course, expect working to and the since fleet was mentioned in for that we've and this LiDAR of in as of established with next the now happen is in with the the actually as significant point been tested case OEM this close some time an the OEM other which to year stages LiDARs our automotive, this the collaboration one four is OEM on is vehicle. now, in LiDAR decided development on LiDAR top-XX that with long scale I clear our technology, prior [indiscernible] range stage

that's, here. transition to that are the the and but that's that pretty the So to what start our the think it take FMCW, now folks industry growing to advantages seeing; about excited your on with starting continues we over time progress off encouraged is we've again, going point and to this year momentum by to to belief build are shape the I made

Antoine Chkaiban

quick follow Thanks color a and up. that for as just maybe the

of progressed up. ago, how be that XXX that That a us with and XX RFQ so would you say could vehicle things -- days OEMs to so if number mentioned have or can maybe you're relative on a be growing is sense momentum amazing. picking visualize programs, days the just give well how leading would advanced of you better So progressing stage we like

Soroush Dardashti

in Look, actually year, customers the also we as months. of of to and as said, of decisions this result and I product advances multiple now those advancing decisions happening customers on to sure. to ability number and a stages next with direct fortunate Yeah, programs our are be RFQ to some now the happening ship

before are we OEMs use implement start such those the helping this those in of high And really folks our leverage achieve other as part realizing some large level with the and technology how could -- is not differentiation key they they of of technology. is they One, after achieve that to some actually seeing start can solutions, velocity, two right? our standards to the some our of dimensions of

of that these from to customers with is the that towards work expect some this the well traction with before evidence mentioned as the So and of program these actually OEM they we XXXX. targeted through RFQs working think I customer production we're as top-XX seeing continue SOP I supporting as as opportunities,

Operator

Joe Our Moore next Stanley. comes question from of proceed the with Morgan question. your line with Please

Joseph Moore

thank Great, you.

it kind development what Is as it you in Is arrangement mean? volume? manufacturing for means the intent a you in think talked In a what have of just commitment commitment? you OEM milestones, new to there, certainty prospects terms the -- how development agreement that but should agreement to with talked terms to agreement revenue development volume, about Can be to you meet of of about, that of about go certain does a we XXXX.

Soroush Dardashti

answer Yeah, that. to sure, happy Joe,

this let give now some bit. context So talked as little me about a background you we

in all, decided in And with with OEM automotive stage, time-of-flight our of range with the LiDAR I OEM as in working close XD have as prior the the first So tested as this with been collaboration next long implement an really some established technology this our we've significant mentioned they to them leader time. They scale, for other with LiDAR. stages.

on things. means mean? a expecting the What One this does this the the our pertain? okay, that's that your we're about, what does there's understanding LiDAR LiDAR we're replaces that is. few fleet, This the XD include? our does fleet. And So, what time-of-flight on question it to deploying So development what vehicle that is road

their is, fleet. this So with sensors. them integrating They're providing we're on vehicle

with the stack, is is software we they're as into which overall the this define working be vehicles actually production with expect that right? going critical we're our data, to velocity a specs with SOP our together So I integrate stack velocity perception and to Importantly, XXXX. to -- their And for the those production. products our for defined think for data target starting their point to start is

to their standards implement were vehicle that production reason, us the for they critical the achieve think is deciding specs key to the to not on that addition they're velocity. do are for other of that setting of starting long which really we as And about the challenge. key one performance all and program with for see the our looking they're understanding they range safety the So and time-of-flight the talked the what able have deployment for the is to can technology, again, the our path I and detection, that's them of solutions with fleet, and reasons

So towards it's evidence further technology. of advantages unique FMCW the

Joseph Moore

in of sort would the win. it rates people a this timeframe, like be great attach car? It is out standard be assistance package of of think of part think about XXXX about the that one for is types that an Great. of can't standard you driver sounds you the as kind buy it thing option the talk like Would would more vehicles? you of is maybe not, a if to part specific or delivery? in the package May all it XXXX just production, When the

Soroush Dardashti

I so for comment but, for example, and technology this obviously OEM is driving, crucial about achieving sensor automation higher range is specific the cases our LiDAR sensing. that it's on, obviously specifically talked highway we specific Yeah, level as the the yet, expectation their details on can't for is long product use using

to I that's on really achieve not for time. helping say those at this production OEM before that we're So requirements achieve their this really And they vehicle focused what could be can able program.

Operator

with the from comes of proceed Robert Tristan Baird. question W. your with next Gerra Please line Our question.

Unidentified Analyst

on working Intel's has FMCW other technology, the for Tristan. the changes or you competitive still for Are and taking technology Thanks Hi, have players seen How landscape develop questions. there? is Mobileye to for Tyler the this changed? any

Soroush Dardashti

we others, an have market. to not of thing advantage We alone the work the -- is the for I portfolio you this significant comment can't in protecting I doing feel largest and of that which important to our this we space. state this one think think in is still Yeah, we're the patents look in bringing technology had patents approach, we so terms both but, of IP with in obviously, see that I one granted have technology think, IP

significant And coming us the start for these partners significant that from on programs two, this years which and opportunities so, our standpoint, also some which has a seven production you been maturity for think now, and as nearly helped at investment, progress preparing six, are requires up. near product to of we've I know, secure program -- to key development,

there space. I are, are Obviously that are other there mentioned, as folks in the

I of for seriously, generally there I we think to Mobileye, some think we strategic implement FMCW starting a like we before, take cross players, and industry. like transition do largest thing competition the flight think actually, every as strategy area talked and have be going is space the towards also again, mentioned, the is over expect I for that from [ph] of positive a time about you to time that

and overall space. the think of the we proof a industry for to point think think I we and that's advantages FMCW it's I important welcome that

we extending our number on now market. manufacturing years. next come and think, Others lead our and expect but, our with unique releasing first our we that product continue I FMCW to focus hope will bringing approach to our up to also over technology of space the in the

Unidentified Analyst

to to just update said for you robotaxis transition for Great. what that quick on you timing the vehicles? then And expect maybe also FMCW that both an personal a and to a and question, previous can you provide follow-up

Soroush Dardashti

example timeframe. like XX some, and about, talked top XXXX with we've around OEM the as happening the first look launchers here, for Yeah,

is even fully that's that As have and cycles will I multiple the additional in space, this year. you overnight, do be year something going time-of-fight know, happen programs to and automotive wins domain expect there not this in

to realizes big replacing leverage start that I to point what time-of-fight it a FMCW towards therefore and their OEMs approach, But that's already, implement in is FMCW the are think start to starting I happen implement actually and decisions important. stack is transition that and those make fact potential is the to starting think proof

to for a few years take to don't technology a end I the this that in think years. As to the one It's day, is just we going that be said, and only the few some next of for also, complete okay, going time is to at happen.

Operator

Our with line Partners. question. proceed question with Capital Please the Suji Desilva comes ROTH of from next your

Suji Desilva

congrats Hi, on Soroush. Hi, progress here. the Saurabh,

OEM you in year to milestones just should between first global on in just Soroush, the calendar you be XX what won, two, and of the an top development, we what on-road timeline are prior top generally maybe specific -- for if announce in to the you about watch development, after and now XX 'XX ramp? volume or some next watch the can't the for the

Soroush Dardashti

Yeah, I for Suji. think thanks the question,

the help to with around this So, together build for powerful their them advantage, thing stack working is the biggest advantage those OEM of a the the and it, of unique technology as integrate combination going in quite a this rest us to be products. is, because stack, we they think data of taking unique

information, deployment on software move products and involves for them fleets, integrating along. data you their to and information, some what right? valuable build color, as that example, to we're production stack For you actual white that's going their specifically when from, to new which their those vehicles provide using they their So of cameras doing, our color go in LiDAR starting stack course with black of

to that. going I the that we're that piece be next an number of think OEM So in important months to with is this working achieve

some into as with we a expect are those number I traditional this generally and next process, you the what you to from go a ask And RFQ about, from, in to this happen and okay, -- award decisions others fleet, stages the when we next stages the through Typically, year. of go mentioned RFQ earlier, award. generally And, next? progressing the months of happens

couple I looking you that should for. would be things I think out that's, say So of a

Suji Desilva

in-house have of to velocity with first know this, and in some phase benefit done the they have together? just to for go Or learning to up, that? have and this kind through to to go your this I can every kind few data phase? kind the through meld access then And just with follow but the weave every Yeah. essentially a for customer --is time the does they're from all Okay. past you've theirs Or to of is of going years I it capability customer run and to where and in it just, going think answer getting

Soroush Dardashti

Yeah.

actually, So even them but this implement earlier is fact perception customers, proposition I just I actually OEM, software, integration. we starting thing mentioned actually our think is velocity, actually to opt short so for initial as helps answer because one value the use for this is accelerate important the also that, they're it also not their an right, and that

that that as our not have to our super in it's talk we're So experience hardware is important developing this FMCW conjunction we more that. able to and process. a significant that fact fact parallel in is about the software perception have been and an data, long that the do we future, with The thing, will we the

be process an perception and -- to go our accelerate others, to are as those prior to they almost fleets vehicle to customer actual think have What really referring able to going specific XX I'm to they normal top OEMs build tap up the their through use, I launch. software that this But, pieces. actually is into all kind most of integration

and point this results the able from other a take and for and that as we it So as validation us well. provide, to perception to provide important from is then be I software those customers the to see think learnings

Operator

WestPark Please from Our proceed with of Kevin your the with question. Capital. Garrigan comes line next question

Kevin Garrigan

ask Yeah. Hey the for guys. me Thanks letting question.

quick one me. one for Just

metrology can industrial think of remind you're some you focusing So if single of don't with SICK kind every besides your are are areas your are guys after other for, LiDAR application, and any? us with Nikon what I industrial and in on, sensing, applications looking are strategy what industrial going you to market? customers some deploy but

Soroush Dardashti

thanks thanks, your Kevin. question, for Yeah,

think for So this additional we're industrial us I -- it's inbound across an important applications. is because this look, seeing area is actually interest one an

not broad going single I every kind this is but, industrial You're different after We're of divide piece, pieces. right, couple a into generally a would term.

our leaders, the sensing products Aeries starting example, of approach where in we the the AG, for one company taking the and top the that's This One we're solutions around and is SICK There leaders space. providing, automation II around logistics sensor the kind is safety industrial we're for application. with or scanning industrial as sensing have our with applications XX such. XX collaboration of

-- or the other we precisely other other it's inspection, metrology precision we're is manufacturing and topics of not interaction around distance what really focused segment, measurements. the applications typically either manufacturing things and is really really focus The including objects or approach of scanning features on on measuring call are where process These throughout equipment. humans safety overall automation distance or manufacturing between and the

micron-level manufacturing, industrial precision was in we which Nikon, for space applications. I of automotive high have our And one this call and what the on can our is using achieve manufacturing LiDAR-on-Chip this about they're this mentioning with the first perception is now volume for and platform sensing, our customers we where, completion of that talked module automotive or

large think unlike other this other the distance of existing pull distance which could potential is the this we clear solutions. But also, we across anything from meters there and to from deployment. us -- this few for of hundreds is and market is, key a see distance for business scale from for centimeters applications, a be measurements of And

either some limitations. the what's of So focused range are inherent performance longer doing and with of that across of, that's solutions range. typically all, it's short existing some are architectures some a different that's only first of in market because markets SKUs pre-defined address out there typically piece multiple medium on a the even range, just [ph] those very some Other doesn't LiDAR,

of that we tackle is, way in to applications add multiple really is from platform a level The in can so manufacture advantage performance, from is that in that scale, have that short standpoint that that chip process a doing silicon solution on precision way a cost range. the compact we to products these micro and we level one volume able bring based also and longer a is as affordable which, achieve here high

we area multiple this talk we engaged we're discuss an And opportunity standpoint And an for on further. will able and interesting is as with -- more, to folks from we're opportunities us. think are we

Kevin Garrigan

guys. That color. Got a it. of sense. appreciate lot the Okay. makes Thanks I

Operator

There are queue. call remarks. like I'd the questions hand back the further closing to to for no management in

Dardashti Soroush

see for time. joining the and you you call we will Thank next

Operator

Ladies for your teleconference. and does conclude gentlemen, this you participation. Thank today's

You have this at time and may day. wonderful disconnect your lines a

Aeva (AEVA) 22 Mar 232022 Q4 Earnings call transcript