Earnings call transcript Q2 2023

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Operator

Good day. My name is Jen, and I will be your conference facilitator. I would like to welcome everyone to Aeva Technologies' Second Quarter 2023 Earnings Conference Call. [Operator Instructions].

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

Andrew Fung

welcome, Aeva's and Earnings Quarter Conference Call. everyone, you, Second to XXXX Thank

call Soroush today and the on Joining are Saurabh Aeva's CEO; Salehian, Sinha, CFO. and Co-Founder Aeva's

uncertainties. XXXX making will refer call, that today call, our upon are we Investor statements Ahead on be on we to and statements based investors.aeva.com. and Relations expectations current views to as reflect as These of we forward-looking of and second only this and assumptions, our date. website and views subject this at quarter should which risks presentation, press found which any issued be our not can as on will of our subsequent release of today note be representative relied Please

subject risks could of are statements and differ from variety a actual cause expectations. to that materially to results uncertainties These

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

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

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

Soroush Dardashti

highlight Slide existing summarized accomplishments, our well progress am XD afternoon, key new I good collaborations are the LiDAR-on-Chip and Andrew, in with X. commercializing which on like and continued would as by make you, Aeva unique developments as excited to opportunities on Thank our QX to path towards everyone. good technology.

is with collaboration XX top our First, going very OEM well. a

AV QX, learning use network-based the jointly XD stack provide order Aeva cases that stack. models as are to our signed challenged optimize their on perception strategic achieve collaboration AV further neural where the LiDAR. machine our previously OEM as important work engagements and we with would agreement a OEM's In deepening stack time-of-flight into We integrating well in and

addition, In Aeva deployment delivered. has the XD milestones have to on-road its expand back the with of we LiDAR OEM the on decided

our share a we with the rail to leading data automation that to supplier railway happy in will freight XD selected XD Aeva superior to solutions, compared Europe's secured our replace. to I'm LiDAR velocity first due of win capabilities perception LiDAR Second, unique Railergy, carrier. Aeva's supplier that delivers was largest conventional including

automation that track with progressing And and third, SICK with LiDAR-on-Chip validation we industrial partners product industrial SOP, our our AG. development on track for on keep a the us including reached the module Nikon XXXX critical by with milestones the for first milestones of

Slide we which OEM on number on I would now provide like X. on business significantly more our recent collaboration color a our a of This with begin past deepened quarter, developments, to top XX fronts.

Aeva's the around first is use We operate cases. to OEM signed provide software. unique our safely under The data velocity strategic agreement stack perception to built collaboration help a around important perception

neural the on incorporating Aeva's to data the LiDAR XD learning performance network-based work also We optimize stack. machine AV jointly will overall models, of from

OEM help range as their safety. to over perception new and enables direct the high to velocity more to standards long power performance As work, we key for ongoing this been without can our mentioned high demonstrate with a push case the highway Aeva's Through ways enabled achieve FMCW advantages LiDAR. levels FMCW's that for driving was achieve use successfully additional time-of-flight last safety OEM quarter, that XD reliably such time-of-flight, and measurement how unable have technology of able need previously optical

XXx that resolution by example, leveraging camera-level that dynamic Ultra conventional up points the Resolution Aeva's pixel, differentiates an stationary of and from to resolution. brings velocity provide To every can for be

instantly our outwards velocity at And detect of that frames we to a XX% objects greater as time-of-flight compared As can can for objects result, range. every fragment multiple because XD small hazardous tire a the quickly confidently classify measure LiDARs to infer can like and more require Aeva and points LiDAR pixel, velocity.

this to such development to to Perception safely further application operate We're cases. capability autonomy automation. an enable as like perception OEM use to leverage speed thrilled has software highway Aeva is that the its critical accelerate highway decided of

LiDAR milestones, decided XD LiDAR used and XXXX. development equipped validate second into deployment we vehicles stack to it AV in be to on-road will to The for Aeva to perception our market. as to is has further expand achieve with bring additional with that continue This the software overall our that and OEM plans order includes perception

we are progress our the encouraged with OEM. Overall, by very

continue focus the be program. OEM for this Our will be and supporting Aeva to to on positioning achieve the requirements selected vehicle production to

Resolution obstacles the LiDAR benefits because and to enable XD Slide has LiDAR I LiDAR. critical where use could rails, their accurately to case enable conventional not on to by to in a Railergy now solutions. we win our velocity of Moving data, first Notably, more autonomous around selected X, and FMCW other time-of-flight be been believe XD and would replaces about supplier like with requirements share train XD Aeva Aeva Railergy rail. Ultra achieved that reliably identify our

in linked when Europe with is freight which operator the shunting new separated, are with to first together application trains cars. activity, moved automate Railergy The largest is for and

to safely incorporate Railergy's enable per actions LiDARs these Aeva intending locomotive autonomously. multiple to is solution

industry opportunities and as locomotive ecosystem, to for bring work beginning types different we operators. to broaden explore to operators. with deployment the innovators see more major throughout are excited are leaders to applications rail OEMs, We to of opportunities which and efficient customers, transport, rail look technology safer Railergy and regulators other rail Railergy's other and the with And include including

to scaled XD we Aeva's in these it range, that interference of applications. our pursuing forward advantages rail. long velocity to automation combination immunity instant look to bring unique From can engagements, rail LiDAR of and is clear opportunities offer for And deployment

Slide in would I turn share to recent I and This with on like Let's industrial first the with some production to completed are that quarter, X. product provide to And our to track for startup happy module development begin Nikon. of validation XXXX. progress am automation color Nikon. past our now on for our LiDAR-on-Chip we we programs

As previously during this mentioned, first product automated manufacturing. inspection industrial high-volume an is solution enables that metrology

to precision. but It to requires same much achieve our we lower used leverage and for to where offer will LiDAR-on-Chip today. at module, chip different compared current Due to utilized solution automotive are our a cost micron-level XD a algorithms precision, with smaller able we ultra-high core capabilities unique these LiDAR the applications, size

industrial performance for where together the ahead to on this we way the confirmed, of specifications in progress all paves qualification work SOP With of to late Nikon our first will us production with XXXX. next product the stage,

enable are differentiated of a time-of-flight have FMCW vehicle and we Railergy automotive, Switching with Slide previously win number we programs technology help Feedback including safely that encouraging and Aeva's ones deployments. gears opportunities pilot now leading a initial OEMs, this number OEMs. selected serious large turn let's their as to deployments, advance appreciating year X. especially has represents on making on the for consistent new wins. our further more can to who we're continue expanding progress to production broader-scale are pursuing, next-generation, In been program of

measurement to our leverage ongoing industrial sensing we perception automation, industrial multiple companies with have large engagements applications. for industrial platform In

next company the as for award each remains significant additional focus SOPs of potential and Our X expect large-scale XX programs the these in to offer a over for decisions mid-decade, months. with on continue Aeva, deployments opportunities where revenue we to

that, over With to turn I'll it Saurabh.

Saurabh Sinha

would use, of other I customers. operating Aeries loss was approach was are to Gross reflecting for good primarily Thank cash to discuss summarized flow Slide million as use II deliveries everyone. of which expenses. consists to for results, operating you, million, spend. was Soroush, cash account expenditure, on existing and operating R&D and XXXX QX less and million disciplined financial and we of capital our $X.X continued our define new XX. QX strategic $XX.X which of operating $XX.X cash like ongoing afternoon, Non-GAAP Revenue on which

cash, to the on a million financial weighted QX. position quarter and objectives. in our cash progress totaling we equivalents as finished securities shares average marketable maintain XXX.X with million solid In continues We Aeva outstanding was and $XXX.X summary,

will spend to optimize We by momentum QX. looking we existing in ahead, and with And our commercial execute to a resources and are continue the very further new encouraged allocate to programs approach strategic opportunities.

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

Soroush Dardashti

extremely Thanks, about excited our entire the opportunities. Saurabh. stand these engagements Aeva into am at we additional converting on focused strong our is Halfway where progress made into and advanced-stage XXXX, we a wins. incredibly of year I number objectives The team on have for

for stakeholders Aeva the ongoing to as each their I As their our well of I want dedication thank continued conclude, team as for support. member

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

Operator

come Research. our New And [Operator Antoine Chkaiban Instructions]. will today with from first question Street

Antoine Chkaiban

expect achieve when do project? you the road milestones do expand XXXX with strategic LiDAR in you Can you for OEM on what any are to maybe collaboration that there the specific to that And you other the and indication the just maybe And key announced? more need pipeline volumes Any on also vendors top there? deployment? in provide to still details on XX get

Soroush Dardashti

Yes. to questions. Antoine, happy the answer

how first, software, So let in our OEMs here. got we significance automotive answer value seeing continued before XX and first the the of OEM, top with especially that perception are this encouraged question, very all, and I So we are space, me in right?

first to some and units most in the And and time-of-flight integrating we for there, side, challenges address with our technology. LiDAR LiDAR using deployment built, -- the been to was having hardware address previously, XD of started vehicles. then the starting OEM milestones this And additional we've on mentioned. quarter, technology our in hardware. vehicles cases to OEM with able on-road use So continued Aeries delivering challenging hardware we the XD-based hit which And there, past the first to really additional then their this II from from in

that, data, that been we driving built into to difficult achieve have agreement we achieve are to further a really our key software, velocity some deepening quite our perception relationship Aeva's collaboration in. software. of strategic signed with around include And Now to scenarios have those

example, scenarios objects reflectivity able for being XX-plus that to detect very miles and hour. small in to to a former highway such. includes, per not the speeds. are fragment XX And or it's stop, This a as have here, low tire but XX vehicle safe to in on at roadway, difficult especially such cases talking driving miles those come hour, the perhaps highway really We're which speed, per

capabilities. think, XD that's, those So has been able where to provide shines I and LiDAR really

And former before. cases learning models, to really them on with of mentioned, working some really that we're address network-based possible I not as now neural those machine were

vehicles multiple effect development plan technology mentioned, moves in of this encouraged in beginning from we the we're with we which hardware nutshell, creates And as stack our at flywheel Aeva's expand 'XX the this into and on -- ahead, OEM OEM us deepening the to 'XX. Looking believe XXXX, with stack it. this stack, with a the very for our perception our embedding further velocity starting of OEM, we fleet into really heart road data, with software software I think, and by AV the with engagement a

Antoine Chkaiban

us Okay. update how is out? maybe you And expected things trended maybe as costs playing down taking capacity last a the Have quick over XX scaling and days? follow-up, as you can on

Soroush Dardashti

to. happy Yes, yes,

ability point So II continued automotive in in of to our multiple industrial as including, with is as meaningful do Aeries number well really progress customers. customers delivering to of advances led and And in of have space. a course, make our progress that case has us we on to to product

collaboration OEM, that front. place For able example, top software us in get stack the into the with putting being and on strategic this to XX

for we're others. example, secure rail first and able For pretty being excited as us, Railergy, well win which in about our to with and

Aeries to So some as II the industrial both continue our progress across around customers critical applications think our ability with I deploying metrology as well of on automotive obviously and to is applications.

the milestones the customer SOP As metrology first for Nikon application. with and in I target we call, mentioned deployment our the the 'XX, have development for also in completed on 'XX,

good with of customers. some that. our we're about targets So towards SOP we And feel pretty working obviously, these

Operator

your with Oppenheimer. And come Colin question next will from Rusch

Colin Rusch

bit can you With relationship forward, with little going a frame a little Nikon the better you the ability that than bit about elements pull are anticipated? how and to and talk what happened the time

Soroush Dardashti

Colin. Happy that. to answer Yes,

timing ability in automation really before, I industrial beginning of pull deliver we the That's of said maybe have launches. with which planned have that to software. we at micron-level we can in maybe on with year, then which and FMCW, our to automotive, forward of find precision. As the to And the micron-level opportunities we advantages on LiDAR focused same meters -- been but the had module different but on that of ahead can tune of for and really able guess hundreds us milestones one actually Nikon, unique we to software to chip or Instead range, we our we down distance, precision. of different achieve core the gets of different can trade a the that achieve is have accuracy, applications, lower ultraprecise going

We have now completed that.

has metrology further reasons also I really to the now us next manufacturing that already allowed to them a because verifying is year. for metrics late that key completed phase and with with key they're next to industrializing specs applications. one this the industrial be really Nikon do And matter validation to performance and of the product. their that been to It's that's II for move inspection the build able for getting doing us while and the their pleased confidence for the we same for our Aeries product And hardware. of ready think have and

had functionality needed qualify validating our produce software sufficient key new ability and as able us have significant factors key one as that's and that, those well to customers. be of the modules lead in the that's with And the to Nikon do [indiscernible]. in actually to releasing to quantities that We developing experience that

Colin Rusch

table other maps. bit these emerging with super OEMs. your some to struggle terms sales programs potential talking little some about on talk in the with with most getting some in road process some seeing conversations congratulations guys? OEMs? the the on move the And you of are the I you those with changing the a some then how providers Because tangible OEMs, with of of that Can That's how of delivering at to LiDAR continuing those move Certainly helpful. actually forward future-proofing everybody their vehicle platforms. assume of you're for of about are forward And

Soroush Dardashti

Yes, sure.

progress the encouraged, look, we to we're making with automotive quite generally are the addition industrial. So very pleased space, in across

the in and especially advantages also with us, as the engaging a seeing we Then this of on really we how space. of technology experience think with initial unique working us make think, be of the I in I some development and where capability have coming LiDAR, interesting and to automotive OEMs next-generation factors that's selling the a or areas number measuring were to X, really time-of-flight with helped over lot in a where our to absolutely progress see and of market. is and with requirements these FMCW key deliver mentioned, deployments. past -- meaningful is for XD us since the have the had milestones, number OEMs on able But points of time,

industry is always And talked believe I the we we've with think headed. about that, where

the Railergy, XX with with now case OEM; have as which [indiscernible] really and as And as is the we technology to with that making, . some both the with of to experiences had in of case LiDAR progress that is is XD replace time-of-flight the form starting the are deciding shape us top

that's can So what share. I

Operator

next And from Joe comes Stanley. with your Morgan Moore question

Joseph Moore

and into I train I and you opportunities talk the think Is other particularly could beyond more of little when win about wonder it is to think the autonomous train if big you that? expand how a -- Railergy market, with about other efforts? that bit sort

Soroush Dardashti

answer happy Joe, to that.

exciting first all, starting we're it's when capabilities is automation breadth of rail because for this time-of-flight you Again, really of excited into context And to our win that enables opportunity use this some FMCW are and pretty can currently expansion applications and rail you another see applications, can that FMCW us the example give here. rail first So I in the solve. our help overall of yes, technology. is challenged how first of about unique in customers we're here. some for scenarios end

Europe opportunity in about rail XXX,XXX billion we're globally. the And talking $X opportunity. market alone. LiDARs in We're And the about locomotives about it's is of per in about So over overall locomotive. XX,XXX talking that, globally multiple locomotives

includes expand specifically technology and So the global the the the with of is further And than various per the ASPs higher to rail other includes with operators our with of first we're alone the also really and including potential about Railergy. LiDAR the thinking some in solutions freight space. train some other for due rail with the beginning of in locomotive and see and XXXX application. of in Europe in applications, we leaders that OEMs; deployment carrier, opportunity [indiscernible] with engaged Railergy is That European in working X to Europe with to markets. major that largest multiples And in automotive. for operators of one X Europe, rail LiDAR are further providers U.S. we Railergy and beyond the in Separately,

Operator

next move Desilva ROTH to MKM. We'll with Suji

Suji Desilva

Hi, Soroush Saurabh. and

to ability flow follow waterfall they auto one form concurrent engagements how Aeva just X development software together? this of resources could same And engagements that shape? focusing forward this of handle would kind the terms it it of Soroush, concurrently would have understand, they different a and understand that trying here. or sequentially? on question, have working be Would then multiple these additional to Tier in I'd the from with, of kind would of curious a of the customers engagement those weaving then and take with the to So you're --

Soroush Dardashti

that. happy to Yes, Suji, answer

OEM, time, hardware to over technology, product with framework the kind think this top a is with we build core being with way in X building then can in a and multiple our OEM, XX also qualified other in there, but across collaboration of be FMCW say, a let's and approach hardware software can from programs. software features deployed we top deploy which creating to in but key plan here of a of the are modular scaled we first intend with, that our look, way multiple on the platform OEMs So which can be I with also and including in focus

something and in that solution. of have always that's with [indiscernible] our front something that here that's us, has And we been

so important so it that technology So the the timely with ensure vehicle and we it's new close it we're can to example production, driving, with very start to manufacturers core think And bringing the other early works making comes we you and I well. cases automated that ensure really that validation, playbook especially addressing before leverage as that's hoping on too a with OEMs sure that have. this can

Of to each going is different. customer course, be

Sometimes it part perception all make our not that modular I the strategy. software. of may provide a sense approach, of the think, is critical modules But to

OEMs. To your ability staff and the question second we of Today, engagements part of have today. kind our resources have able to multiple to support all the we support sufficient to be the about that

there, meaningful we, to for our programs that go across key go course, refined pray, that's us opportunities. hire a that scale, many the on team support we focused expanding again, expand. We're not a and to right spray each on then continuing deployment number and As we approach, focused about from the we OEM. is number large we're way so with those of on And think with of But to and that a the can first the can with of is company. some opportunity which and potential along, for go and strategy our of opportunities many, provide

Suji Desilva

start I 'XX. is Nikon question other the engagement. industrial the production My auto, on Great. Okay. of calendar sometime guess

you or than industrial run that of obviously, just shape rate. vendors unit it talk the competitively, might if know about what size out And run LiDAR high that less to yours. a a that unit already, curious initial want there like I opportunity, ramp featured other for one the way, of just Just look rates there's with

about So there to versus to out what's the versus you're market? here to could the just already pricing bring what strategy maybe market talk those you in contrast guys, going

Soroush Dardashti

absolutely. Yes,

starts the all, Obviously, of different here, first there. and with late a is and towards to launch look, planned you in pricing give from volume for XXXX and so just we're -- But and marching magnitude differences up is volume scale quite automotive. the sense industrial, then we're is So key what us already using technology talking terms about that between of automotive. orders same that is And really our ASP we're automotive for in the along, of here. feasible core in than developing the factors

scale, and with of to range economies such line, that the the and and example, use allow things as, may customizations be software some can certain not for of different we such needed long manufacturing same So for that. course

of to achieve module end to costs these a helping have the down of the years products factor product ability to from Difficulty] our size to multiple But development innovate and customers. we're module. And silicon also an because iterations such benefits LiDAR-on-Chip lower we Nikon able [Technical everything basis, the for additional it's at to to and end perspective, build reduce been form the the and provide able

there. say can I what that's So

Operator

our Richard And come question Craig-Hallum. Shannon next will with from

Richard Shannon

to to size didn't chance with of apologies prepared your was a is think think a specifically. I asked I get so this up if opportunity want previously question, of to overlapping how Suji's one questions. actually about to But first which the some Nikon the I follow with part I'm remarks, listen

understood. the to ASPs time is are it's is, quite here. are of higher, Obviously, what well hard think about think, volumes think frame the a bit but I I kind

to of TAM sense for to want does level of up what years this Aeva? take offer get it a ramps, So just after this of maybe if here SAM opportunity you couple or and kind the a

Soroush Dardashti

Yes.

the about maybe give I yes, high-level say business. think I can what -- look, can is you, I figures

million, the in space. and doing of is and business a There a customers million year industrial about Difficulty] BMW, including leaders customers in [Technical others, manufacturing in are space. automotive metrology itself of others. aerospace this and Nikon $XXX So $XXX lot [indiscernible]

right, looking the what part manufacturing is to providing software. with the a a there automotive opportunity expanding further see Obviously, with So which we're module do system, plus to of we that. high-volume starting chip really is and

And level, high with you solution, this about is check, that give full industrial opportunities a At rough That and won't entire wherever applications this $XXX,XXX-plus electronics just comment there you now, I We applications solution. sense on you some from take for unit to around opportunity some time, we're but of further a manufacturing specifics, about the can't give in see metrology do that a about precise right potential and about of those on for you space with for actually industrial guidelines manufacturing. the -- think that. maybe Obviously, over general-volume comment other ASPs if we some need such, high-volume per should with from inspect portion scale. be but in that should and about ASPs -- talking general that.

Richard Shannon

more what being some That's milestones them think start milestones with case, to on XXXX. to them? you're If frame reasonable And kind Follow-on presentation the development to question some that says progressing please time here track see, here to Does expecting SICK. enough. of that point? then let's you're get space progress a in the some, with mean there. the with generating Fair of your with have Okay. not on these you correct are answer. through industrial was revenues that's And I for investor

Soroush Dardashti

closely scale 'XX. been into that I them hardware from with have correct. the expect currently a And We're That's milestone across correct. continue that's working to industrial working standpoint, we revenue for obviously with and SICK do performance from developing [Technical end we a customers Difficulty] we different the metrics configurations. standpoint, No, on ensuring around AG think also Yes.

we're -- -- each types industrial which configurations, SICK, Aeva with for think One different And actual with work requirements. FMCW the with performance those SICK software in which And and of also system of X there's there product this configurability the points touching key to the I multiple effectively, customers the different without of seminal decided differences, across tune advantages is things is in hardware. working was with segment. the with of configurability unique of types and software, one for us can across system that's after -- we that the the eventually into [indiscernible] of

those with them we're configurations to doing so there qualify the lead in XXXX. customers for And industrial the and and that sector. later the we're working validate different work around some for in define, of That's ensuring now

And good we're so far, progressing on that.

Operator

today's further conference questions for at call. attending. Thank no and we conclude are time you this now There will

Aeva (AEVA) 8 Aug 232023 Q2 Earnings call transcript