AEVA - Earnings call transcript Q1 2024

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Operator

Good day. My name is Dezra and I will be your conference facilitator. I would like to welcome everyone to the Aeva Technologies First Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, today's conference call is being recorded and simultaneously webcast.I would now like to turn the call over to Andrew Fung, Senior Director of Investor Relations and Corporate Development. Andrew, please go ahead.

Andrew Fung

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

which call Salehian, call, are CEO; on results refer release today Joining our recent the our we of which Soroush first views subsequent XXXX Sinha, our will as CFO.Ahead and today this risks presentation, our and on expectations.For cause materially our could be making risks and please will any subject today and uncertainties.These important date. on further of found Aeva's factors representative Aeva's the be of issued and financial should are of at current be we with only could and filings Relations website uncertainties to from investors.aeva.com. upon this statements call, the that as refer relied of and we to of other based are Please discussion quarter statements views press Saurabh reflect actual most These results, can variety Investor note and expectations assumptions, as material a that and affect Form subject on Co-Founder our including our statements XX-K. not to risks that to to differ a SEC, forward-looking

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

Soroush Dardashti

to shipped executed Truck. build our on like customers good our our sensors of QX, QX.We afternoon, traction to a commercial further accomplishments to XXXX you, on including customers' new we first as everyone. key to would in to opportunities. In Thank strong highlight as record milestone as start number Daimler the Andrew, well to our in continued quarter, Aeva and I

the are for road a Truck real-world for Truck operations. to Daimler stack their equipped vehicles the order operation on Daimler Aeva in sensors As ready for commercial result, to first with continue now

are production.Overall, to on established other directly Aeva Daimler overall this use interest will our continue To expand Torc needed In growing as path track well and business on Truck ultra-long-range the Center for help We key real-world collaboration for our operation to production. lines.We developments. integrated their perception the been which passenger more on and are this, addressing we use delivered momentum, phase deploy Truck's RFQs. production automotive With their time XD phase stack Excellence OEM more intend the to Tier momentum.Let's data Aeva existing next advanced our progressing data.As development and velocity In Aeva's in next believe work audit made their and support in data on milestones in maturity and particular, commercial successfully Aeva teams a supplier engagements, team and and production detail enter completed Truck, into the our We Europe. in have integrate we excited exclusive unique close significant of new are trucks further the for Daimler, of to start-up road for are highway Aeva have are QX, into stack their on number safe Daimler multiple on This Daimler speeds. partners at and we and positions validate on with off significant long-range a LiDAR. to this LiDAR. to automotive OEM sensors kicked now with also now positions to automotive multiple which commercial reflects part collaborate of collecting a discuss routes comprehensive top global and X located serious and milestones closely of our a cases XX new we which Germany, automotive the recent progress they in

Truck's for in rollout We start-up in are their its which as partners, trucks post will for they XXXX, Aeva's Truck on support recently of of investor continue Daimler supporting we production over XXXX the the to expands jointly course additional this track year market deployments.As Daimler entry reiterated QX update. fleet in on-road

path industry-first Truck vehicle upcoming testing production-intent Truck share their to highlighted events. strides will finalization making platform some vehicle next the is we Daimler together additional they great topic, to their launch.Finally, at As the before hardware where of commercial moving and for QX Daimler launch on updates and highlighted start-up to Torc in update, the have with with the

RFQs.In growing signs final trends this Vaughan week, towards Peter vehicles The our finalist the by will of the will Transportation FMCW RFQ, announcing We Torc. as engagement automation in provide following assessment audit in Times at the Autonomous industry OEM's Car on where to their capabilities, to with to at we're its be production of a passenger XD month, management next-generation Group unique fireside progressed This this automotive that interest, continues would we enable to the award highway increasing top first of of additional from Daimler well last pleased advanced of on of the at program in we be passenger participants to Truck. number to for be of first additional advancing Interest joined later excited vehicle update there at see hope our advanced having FSCW is we publicly is at on at new FMCW working that share engagement also speeds.While Clean an similar vehicles, increase OEM. for other a decision.In the that as Aeva's there.Now industry am completed XX are QX, adoption commercial Technology new number commercial this with or on mentioned across emerging Buttler, as begun initiatives and including have to an you with and technology on be range trend programs Truck to see on automotive. global has applications, we including ACT and I with Daimler Advanced inbound RFQ I ongoing a quarter Head we particular, continues Global And passenger opportunities. later Torc. and chat of RFI stage Joanna Future CEO will Schmidt, RFQs key I comprehensive of Expo and ahead Financial on other for Aeva's the LiDAR a like programs.Based opportunities both win

of number be to year. We these continue RFQs awarded to expect this a

more speeds And where that dark classify its another objects X/X as we believe more per at miles standard FMCW for has LiDAR In braking for conducted speeds velocity automatic standard National the measurement we XXXX, of addition, enables be forward and systems time XX our requirements.The rule-making require hour the by new or inclement With at accelerate requires fatalities the as enabler Safety up automatic of recent this without potential conditions detect highly to the prevent we is to Highway OEMs per OEM the collisions the improved every achieving on accurately enable Administration, avoiding road noise, Traffic accurate to cyclists.Aeva's have the in stringent will vehicles LIDAR. to pedestrian hour this pedestrian greater an adoption emergency in requiring pedestrian to in development. from for miles and velocity new lighting. collision passenger can overall, XXX pixel farther well improve in at U.S. XD hazards LiDAR vulnerable and the automation the object today on at users in kilometers per that challenging meaningfully standard work test ability reliably which with first help Truck, LiDAR have LiDAR even than road daylight, for is distances Daimler conditions than see to by more to also in capable weather.The on high done we are achieve testing of instant ability LiDAR the for with OEMs important positioned resolutions as road.So higher up unique what long of XX speeds. out is prevent Aeva more potential particularly filter believe we simultaneously other confidence safety well overhead range darkness higher to resulting has function and instant encouraged faster industry at deliver at with to that ability in are perception hour, Aeva's further like to braking to solutions occurring than segmentation more and scenario with the such XD preventing.Building complete pedestrian are both

is to interest XD our and RFQs wins. production focus LiDAR Aeva converting the meeting Our growing on current for

new veterans enable this a meet engagements, validation, that, engineering we assembled us growing team not new the for experience Excellence well out As directly Daimler are as existing to part and team Mercedes-Benz, me programs.We opportunities.With will OEMs announced and their call Aeva XD autonomous to in local new turn the better a the for top believe and of to with engaged testing on OEMs support let over discuss support with this, such Saurabh more and accelerate technologies Aeva direct in with Valeo. of also Center only our with interest to as that automotive region at providing allow but OEM extensive the LiDAR industry suppliers, have ADAS, We This spanning also as and financials. software Truck and Europe of collaborate positions of of the to Germany. closely will Aeva a Center Excellence us

Saurabh Sinha

which operating review Thanks, million with program $X.X momentum build partners our capital position and on would afternoon call Aeries with driven QX with was result, in of Gross Soroush, securities additional by million, commercial today. scaling is on million use, I equivalents as and $XXX.X cash, revenues.Non-GAAP We year-over-year everyone finished results. this financial quarter. good marketable NRE which of like was a total cash have we to as in growing $XXX.X production to we near the and less capital QX a $XX.X million to maintained $XX.X a II Revenue of available million, in shipments of facilities.As to loss flat $XXX operating good approach our to and liquidity allocation. QX expenditures and million, executing disciplined remain includes cash existing wins. cash which flow defined our a was a continue we production

call are strong programs programs.With and on execute for to mentioned balance back that our existing Soroush sheet decided technology number differentiated of additional let win the our remarks. RFQs, Soroush this the we year. combination earlier, to As engaged be to which well a during us of me are expected a We positions on believe turn that, and closing

Soroush Dardashti

to and you, bring on accomplishments continued And multiple we and milestone the team industrial, industrial. in for partners.Looking Aeva SOP off great Saurabh. markets progress we Nikon in a to is year these In Aeva's automotive the XXXX. start thank continue to capabilities and automotive in track both I Daimler this we realized of RFQs. to are growing enabling to Truck's Thank of mission for strong [ ]. for the with and automotive, their momentum ahead, technology our want new later with and with first industrial executed levels strong to Aeva adoption commitment FMCW see

position. progress up respective position leaders in existing wins.With programs securing on strong Together financial line in continue multiple added our now having their that, a for to open remain Aeva greater solid our with field we RFQs, questions. success, and for will we the production additional confident executing on and maintaining We

Operator

Shadi [Operator Instructions] Mitwalli Your from comes from first question Craig-Hallum.

Shadi Mitwalli

for start-up Shannon. wins? that after off any Aeva ready Mitwalli Shadi for win, effects are this Richard on win show is Daimler you other the This halo to is with Starting experiencing customers production

Soroush Dardashti

[indiscernible] second as OEM's to move they're we're the things they're matter not past Soroush. is manufacturing on have on to automotive of now completing that side, with helps one as -- the really FMCW that FMCW, few feedback Actually, RFQs.As win comprehensive this we passenger their side the seeing months the really technology, XX as our announced mentioned we're derisk on and we're the is which no commercial moving a Happy absolutely. of We OEMs of excited imbalances deployment this the the Daimler Truck to the and earlier, decision concerns this especially all and initial hey, the well, and that since that from just award. on of technology we platforms pilot heels the next-generation in Truck the which And really also longer as top top if. doing this DT would or important this passenger longer And we a -- very for that's the to seeing quality of as to only, And decision comments months, on we this limited call, that. interest -- -- the around, it's really especially for legal specifically that. Is had the think finalist last well. new answer we're potential overall, one really been multiple matter year.I -- win happen? how execution production we're number a for Yes, on I mentioned about. OEM, right, derisk have this we that.So And is the about it's Shadi, I a this if Hey, would since -- back this XX time XD it's vehicle a and we're OEM, been X SCS Daimler we for have the and the in now are on is earlier as OEM a FMCW, with engaged production make call that RFQ significant also we win it's feedback also growing seeing LiDAR introduced no audit, the this we the completed mentioned the of that now directly at the passenger final vehicles, helps now made timing I happen. have from now progress RFQ

we provide this talked we growing Excellence that's really We're passenger, both about as And earlier and across to establish our directly as with happening is back Europe momentum, timing those So of on engineering of seeing on have months to interactions, also opportunity. year that this of of the Europe in customers are the new that.So significant a OEMs to about this vehicle. out with support decided be globally. the talked track this and why direct next commercial we the this we the interest Germany folks, work well team to expand discussions of both [indiscernible] us in to automotive timing the as Center with able help really few

us on we are I definitely side seeing tailwinds advance especially as on passenger would overall, automotive, that these help So say the well.

Shadi Mitwalli

follow-up hear makes to any have if And Are top Awesome. are quantify just I currently That's sense. the one question. -- RFIs great more know other one you you then OEMs? of able and OEM. RFQs one yes, that XX or or to your top with XX

Soroush Dardashti

on as passenger There obviously point, But XX RFQs. vehicles. top talked I that well or we scale of tell much X in about as of can top is engaged top making our clear Look, OEM.So as is. are regions. update specific vehicles OEM number fronts, this XX also throughout on provided happening the year. some multiple that. passenger in progress are decisions one multiple working updates we have but And we multiple vehicles. giving decisions There's not we're on it's this been commercial across and with and this X there's significant Yes. at OEM different number X folks multiple and But progress we whatever passenger we it There's on you quarter, at this are pretty and just obviously, commercial top both haven't

that maybe bit production frame that's to Daimler aligned we're the also the later, same And around also seeing. with around a those start but thing time from frame. a So we see timing, little other that of Truck, it's be overall, time

Operator

from Rusch Colin next at question comes Oppenheimer. Your

Colin Rusch

your seeing much is you've of data? because can year about then decisions important up consumption later customers software and And that and gotten the the how the may you some real-time you've a test side, own -- talk you're that you units efficiency run of number customers? from also, how velocity end lower of power seeing the compute system on units this Now out for

Soroush Dardashti

that. Colin. Thanks, answer to Yes. Happy

one on-highway highway seeing the all, the towards not we achieving I getting on of that that, speeds, there are focus solutions So advancing -- customers they're things quite automation the on is significant this right? highway, on are the first speeds. current is highway at highway from but of think

costs, to for with directly by and perception effectively As vehicle higher system enabled technology at a new and technology, driving LiDAR also in as mentioned.So allow be mass well, keep earlier high-cost to adding calculations the that technology the of is about it key talked can replace we velocity one, are velocity, reduce and nodes, example, as see of with that OEMs an that opportunities this a a objects radar for minimized complete as potentially increase because compute advanced means see there. the have or and some by we potentially something then on those that point distance maybe also because with processing that see things: to you automatic we of to that especially fact and the speeds, And some measure interferences number sensor as market I further our having two, tremendously, from going cost and able we helps maybe we that other the for side. the processing super of and could can well.We a you further at advanced of on important standpoint high or important size image, to tailwind into I you you the actually OEM them could a market.And the NHTSA but it's classification, is reduce seen to Because maybe high-power confidence still velocity reduce some and our and detection object think this reduced that we and braking need the of have standpoint, very potential right, go of allows we sensor, ruling be the plug and but the mass on that. without our opportunity the into some of out some expand other which for this differences think to from have as important, industry see their this. So both allows that's bypass those modalities.For do side, with are functionality, right? a X significant Obviously, safety ability such sector sensing to to of replace the things LiDAR XD of radar dynamic FMCW, completely modalities

towards back frame, And this then together, makes are that happening So that's there's road and into volumes power time go 'XX that in. that next opportunities higher this entry in super as years, in OEMs.And see the where that I our as kick something map that market sense. scale.And few performance this becomes think transition over is and the heads 'XX, volumes is to we with lower of the already ramp cost frame for at having think potential the performance we moving showing biggest where you critical thing the their Truck and the are looking we higher moving OEMs right? end what they're hear, past time going Daimler And FMCW from where pilot road, a see pilot future-proof that's to up really we of all the is brings volume stack. those mass day, this now where if stage we're Now stage, which really capability this on to technology around

Colin Rusch

the the space, an in trying automotive move And part are and world transportation outside then a AI sensors understand That's and incredibly physical obviously the towards helpful. to incredibly there's but incremental important space you metrology little bit on not in just of your about with that that the the a validation that. talk some Can are just technology? guys other you coming way now seeing opportunities opportunity, there's monetize

Soroush Dardashti

Yes.

You did right? hear I mean side, on the that nonautomotive

Colin Rusch

Exactly right.

Soroush Dardashti

Yes. Yes.

absolutely. So

[indiscernible] and have But that doing you on side. as automotive growing us. in that the some we of all, hear the side, from anything of are first doesn't So interest can we and see mean significant not

silicon of ICON also matter what to with that's precision very fully ramping innovated of going other to technology, achieve a of the metrology other different the on a being doing up.And that on in fact, of our to seeing, technology that program to are backbone we expand performances Nikon, our we makes optical where and later of innovation core are utilizing because into on front with sense. year the able are track the the photonics same module, this engaged that software everything applications.So if like industrial the the lighter As we are we with different start folks we're on number be of side fact

if obviously we kind solutions, are interesting side of on as these an the have play we as as a But for side, we'll our we're use AI efficiency scale able about and especially of product at sense. advancements be for with pretty to more, the use now on reduce the makes manufacturing, robotics advancements that. customers our improve for level, and course, is of automotive, that of to talk scale production that's as become this, vision-based role.And a -- think while point -- of costs So automation area we the both think to could economies going robotics what I manufacturing and to well attractive factory that's cloud-based we able technology think also seeing nonautomotive with with where

Operator

Our Capital. next Garrigan WestPark question comes from Kevin from

Kevin Garrigan

you I I vehicles. were you said more gotten making with from missed trucking if you as know well? interest I OEMs progress more passenger this. other apologize Have

Soroush Dardashti

Kevin, Yes, that. to Yes. answer happy Absolutely.

to generation, transitioning always it's and move is first especially and Daimler engaged in to helps FMCW of we're for that both technology. This decisions really they as derisk the from to multiple this the the foundation Truck we're seeing as OEMs right?So production follow, that what decisions the We as vehicles deployments to the of includes programs. pilot next are, they from the win go the others to as OEMs make kind sets passenger was mentioning well RFQs. as at commercial And I win point, earlier, hearing

So -- across and vehicles. that as passenger as is well commercial

are seeing highway being key their for of as automated that.Obviously, customer both this others tap application, to in So into we high of seeing able for applications. brand technology well kind are space, Daimler be both ADAS we in really to and interested our interest as the marquee

Kevin Garrigan

get then Perfect. cars, that, off and of some give both RFQ RFI to to I going to milestones only more processes trucking also the kind about or pertaining kind much on imagine can you SOP And Okay. would are I stringent the -- us processes, certain the kind they'd that be processes? may of passenger validation be of passenger but but color on not vehicle and wrong OEMs tests this, for and

Soroush Dardashti

to. happy Yes,

a of activities, on doesn't you stringent where number level So there's of there's of number is in some a actually number I matter, exactly terms overall, deal actually, requirements When certain application, top needed. think, qualification with exact super these in automotive, of standards, the qualifications. a there it there's brands, a of of

and through qualification car side, For side. stringent a and go example lifetime of and with the and teams much were requirements that.On on is quality we side, Daimler, across the had performance right, [indiscernible] and our the actually, audited, development passenger process, steps vehicle significant trucking commercial and we reliability did some actually on to manufacturing more

-- that it vehicle makes this then technology our that enabling passenger to at that see And also as easier mass have market some we why ways, this application.So market consumer would mentioned, that's but proven. just really as I be mass point, OEM-tested into we now twice. think it done point, I it of in to at that remember deploy and So

board, the we earlier able top the now OEM. a we right? of a concept we a year, we last comprehensive quality by OEM, that, we quarter audit a the months updates. are completed manufacturing the Within provided or won a right?And then And months, announced passenger within pass we after time.So XX audit few after using talked second we top just throughout not talking about when there. to the faster now XX of we products of time processes this our by And our the we're our as seeing OEM and gives and go us this the significantly we're time is we than of became a organization, which manufacturing of these quality maturization have Daimler towards audit finalization a of confidence the number We to within year, some in -- new win first-time we in And the done of last OEM. across and RFQs introduced year, completed months. so with and program have and added X production the that about what So the company, that's passenger XX top of team, were that next

Operator

MKM. is Your question from ROTH next Suji Desilva from

Sujeeva De Silva

just tell, guess, So handicap which done? give beyond, the passenger, if I how geographies for sense some Daimler, can us then already to I expand expectation could waterfall what those realistic opportunity North in my and is a could work's you maybe to trucking, additional much mainly America And in is? -- what versus from

Soroush Dardashti

that. Suji. sure, to Happy answer Yes,

the on for SOP serious Tier and exclusive Truck LiDAR our range with supplier for were first first at Daimler acting obviously, So as program. the long X long-range on delivering open XXXX, We're for right? program laser-focused production launch

board applied course, across we of the a of program.But on obviously can whole of a is the technology really applications.The sensors be that which to number that for point applications. other expand building autonomy enabling some software talked autonomy Torc developing, in providing see closely team, assets stack a foundation partnership other the perception we're highway are engaged and also the and stack. is overall, obviously, speeds. opportunities regions potentially other to that is this We markets, This we're which future of working about at And highway the we for with

able to obviously, here exciting to to Torc partnership higher CEO is use expand also the in As would, we And be the answer further the mention at going expand requires be and as We can continue to Daimler we this see month this Group bottom on we more to have also later we're production Robotics events Head about. think vehicle were that's to of in about the braking, of for of passenger both it. doing about at OEMs, XX well and side. work the end to future, in exciting ACT domain a more Vegas, see but to some potential actually, the be line, our a hour just OEMs there. as the that operational to important share limited couple Truck's talking with we I the the increasingly we including to requirements per speeds. on that with side that, just vehicle, we're that, side.So from mentioned certain be with of have do this talking And month our short passenger the of now automatic as we not commercial commercial ruling is we'll where emergency you London, going opportunity want stage vehicle opportunities course, of do their week looking going not to kind later than together.I we on if the Expo the developments car that are expand month, will who have to program But NHTSA talk earlier, design progress see later can latest more just miles Autonomous

free feel line. that join So to

Sujeeva De Silva

asking kind going it on your many guys, customer? or of in enumerate Daimler are about X you That's potential pipeline gain question that process Which went phase did win the -- in and it. question how would could you you win that the back the did past I'm through Maybe Truck. that a just that X pipeline, in ask a a to you better. look And steps the most passed you understand when back great already obviously. you the as sense? qualitative of to And steps confidence exposure to you you those I'm maybe key step for to get trying customers this

Soroush Dardashti

question. Good Sure.

high where which of stage, and level. in number then, is think right, to but So number I can there nomination Obviously, course, picked.So RFQ. checkpoints is, of of of stage level, between.I very there's of down steps the there's steps phase, could as RFQ and are key typically, the one give process that a is selection a RFQ or the well finalists X a the and a as at which main, commercial kind happening all, beginning, first transition from sometimes is the But kind first years, key which take X, there of final manufacturing step, X you RFI, the and at conversations. the there's final of are milestones from happen in to during months audits RFQ high past the phase RFI bids number the of X a X quality the critical and and a RFQ after is a maybe

the after talking just RFQ vehicles. audit I crossed OEM, and we I X okay, within audit introduced a quarters of RFQ to passenger mentioned, including then as and commercial programs. finalist a through RFQ -- with a they've both quarter with those on as able And the more was as finalist audit. with won to have to number from and we manufacturing passenger other gone and we advance XX RFI So then number the And of in from year talked of And we the there, quarter phase. the all the since course, And mentioned, few checkpoints down others, stage award. passing have RFQ we selection. about or we that, after Daimler now a well We're or last phase. year, past and X top those there to There's RFQ that multiple in months it advanced as its from became about, we manufacturing Truck, that.So now early were a a it

have We being manufacturing on auto denominations. we phase now final that finalist the crossed finalist -- phase of have crossed RFQX the now the a and

couple we're it's -- of been only So a months.

progress program that. have We significant made excited this on about we're and pretty

Operator

today. the concludes call for for go you and no gentlemen, Please questions. are disconnect There Thank further your calling this lines. and Ladies ahead in.

Aeva (AEVA) 7 May 242024 Q1 Earnings call transcript