AEVA - Earnings call transcript Q2 2024

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Operator

Good day. My name is [ Chloe ], and I will be your conference facilitator. I would like to welcome everyone to the Aeva Technologies Second 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, second welcome, conference XXXX and call. you, to quarter Aeva's earnings Thank

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

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

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

Soroush Dardashti

on we meaningfully afternoon, milestones good key production our number additional and Andrew, opportunities. advancing of program, on achieved while you, In existing everyone. QX, also a Thank

accomplishments for we LiDAR. unique QX. XD also wins share new interest broadening Aeva's with customers, I'd secured like our in the to key highlighting Importantly,

incorporates our exclusive unveiled sensor including automotive, Truck's a commitment with We progress We the the Truck. vehicle, one shipments began vehicles. Daimler the reach security. as have top launch with OEM's remain new With which lastly, continue LiDAR-on-Chip of to autonomous XD at the track publicly we with top Milestones, continue on we industrial, partnership top and our collaboration integration. In strengthen passenger out another decision Program on product of vehicle scale. In OEM's to we OEM, expect fleet on-road the made this and continued broaden global their to this technology first continued passenger autonomous to Nikon's Daimler long-range of vehicle build demonstrator, validation also Freightliner year. of with a of and Daimler opportunities And our completed industrial around our LiDAR XX expansion Aeva's LiDAR significant And OEM, ahead ultra final in the LiDAR highlights later QX progress Aeva vehicles award year. and with into we to LiDAR XD OEMs. passenger deploying long-range multiple Truck XD

help to LiDAR that sensor proud selected infrastructure. some security protect primary organization We top are defense the a a energy Aeva national XD as critical of nation's U.S. detection

and on autonomous battery also the multiple in electric which safe Torc unveiled eCascadia additional Aeva LiDAR use long-range data with discuss the commercialize truck the together the to its business quarter, In we Truck Truck, working development. The trucks very recent collection QX, closely line. making long-range publicly part to cases is vehicles remain on Truck last shipments operation and Aeva work In is detail as more for incorporates for now Let's and XD LiDAR. This milestones a continue track significant Daimler we about platform Daimler developments. technology to exclusive With agnostic the OEM's Truck U.S. Daimler together on-road team and to deploy of broader and time sensor of Torc scaling trucks our scaling trucks with Daimler for progress continued production at on highways Truck Freightliner deployment for and important closely to propulsion highway and vehicle of autonomous speeds. volume. autonomous Daimler demonstrator, strategy as on significant automotive OEM's the highlights ultra start

Looking Aeva's entry. Daimler is related preparing of Truck road start-up the in supporting as focus production development for Daimler ahead, our in well for rollout Truck's on on market and as additional XXXX vehicles time

the time-of-flight last another increasingly the to global perception multiple demonstrating FMCW award expanded expected made Truck, XX in can OEM, solidify more technology. More QX, decision significant advance Daimler automotive additional industry's In and enable have We for top advance with for the XX benefits the advanced started number months LiDAR be capabilities. this automated growing driving differentiated further we engagements LiDAR as for our and forward have for including broadly, in the we to speeds. this highly a integration make opportunities OEM in close This highway ones. our programs and next-generation later to strides other year. With experienced FMCW OEM, are program top to team we Aeva expect look to quarter. encouraged appreciate continue is discussed help production Beyond this recognition with one continues passenger at continue of to a the global of LiDAR capabilities on an OEMs. integration. we XD in coming capabilities, and by passenger collaboration The decided that XD we on OEM includes with collaboration This we particular, vehicle of

tangible with vehicles across of from passenger and is Following experiencing applications exciting Aeva Daimler win to vehicles, production a Truck, ways in commercial range broad this program mobility. our

LiDAR convert the production Our for near focus interest wins is term. to growing meeting on the Aeva XD in opportunities multiple the and

now quarter. first launch industrial schedule our the Aeva's industrial. on to Turning in for fourth

products as we first our development product in quarter, and launch processes, support and we across renewable are where QX. players opportunities. from for customers open leading Nikon's OEMs the automotive, and this, LiDAR space. With accuracy module believe pivotal with time mark including automation. will now successfully Fabrinet. This the industrial upcoming new final line Aeva the we the of of already will up also the stage in in some progress Aeva's automotive the and to to we for use manufacturing milestone the validation manufacturing offer smaller have In module, commercialization in level deliveries dedicated scaled micron Nikon's our in together existing a for that industrial metrology LiDAR-on-Chip a collaboration high-precision we Nikon's Over preparing in aerospace of is first will faster, successfully chip lower-cost at for Nikon solution in LiDAR-on-Chip Nikon completed inspection This applications our energy

we ongoing accelerate to at manufacturing engagements. dedicated production potential our our we believe While the line over Fabrinet plan has other and this to scale time, transition

leaders metrology on to software continue a industrial where our perception automation and broad can with engage opportunities into expanding we same range module for the platform We leverage of additional across industrial LiDAR-on-Chip Aeva and applications.

first applications, Now new speaking Aeva's of recently into security. expansion we announced

detection defense fences. water from selected U.S. are organization to help U.S. a sensors sensitive and sensor as facilities Our primary to infrastructure. intrusion, protect various at energy national top to in by expected protect locations Aeva such XD entries perimeter critical be LiDAR exits was security and

critical bring including selection to reliable velocity and after comes first another example to demanding ultra-long time-of-flight deliver to supporting of security detection. Aeva's evaluation to a mix of mission interest We the broad of range selected more adopt was technologies, applications. is LiDAR. high-stakes physical markets, of infrastructure. wave of one our year. This later important for our of most XD immediate the look to the this interference including of a is technology range, sensors forward of some this and some expect protect XD enable to other helping and the set across Aeva application to applications, data, of perception We Because our and instant and LiDAR this end faster increasing diverse next nation's

rail. collaboration program. bit is Germany's Germany's the This collaboration about XD Action Ministry like LiDAR Federal and Climate The automated sensors, by to and program other passenger operator, group our including share managed dispatch developing was fully and funded XXXX. Aeva's XD Deutsche LiDAR. of with more in Siemens. after Economic such would I a for functionality Affairs new train driverless, industry XD Lastly, train of leaders national is automated Bosch as by parking LiDAR evaluation other selected selected in and Bahn, Germany Aeva by time-of-flight rail was

of critical detection to detect surrounding train velocity can add to avoid tracks. reaction and enables hazards, reliable faster ability which Our obstacles more instantly time

areas where to compromised, tunnels, where ability location unique regularly precise use can GPS as operate. Aeva's provide the offer GPS, be we addition, and of without urban canyon other estimation state such real-time accurate even positioning means can trains In

project to this some and financials. automation excited leaders market. With are the perception rail Saurabh with over of the to industry this leverage We LiDAR's XD bring to to of turn to work me discuss new on let the levels call that, end

Saurabh Sinha

you, and Thank good Soroush, afternoon, everyone.

in QX Non-GAAP call convert in now we and NRE for driven us cash, by cash an spend. In back $XX total customers define to unique $XXX.X which marketable our the use, our end of securities production Let $X facility. We with financial in to more equivalents production believe maintained to wins remarks. position was results. Revenue turn Trucks. $XXX.X months. With program shipments continue as QX multiple Daimler to and turn this partners, million, $XXX sensor was coming million which Aeva's together in operating from me million. as liquidity momentum was XD expenditure let cash the million, at quarter, existing will undrawn gross LiDAR us of commercial approach we QX, to and stood cash that, million our Soroush million the capital less disciplined our $XX.X capital and of to and to deliberate operating support closing a enable At flow loss technology, additional the was

Soroush Dardashti

and key To team our months. like and QX, just partners, Thank in And advance continued as to production to of appreciation Nikon commercial ongoing milestones determination security applications stakeholders deliver to to ways thank for for support. on I including we the up, tangible to their Truck our in our their secured our all you, for express Aeva new like in also such Saurabh. customers momentum Daimler railway. I'd additional wrap and in X

for automotive from our the and converting technology. Aeva position to to and of of of on LiDAR mission final Aeva's to a drive Our opportunities diverse bring will industrial automotive across strong in further adoption continue continue increasing this opportunities a beyond. perception questions. list markets we remain to number We to products portion opportunities other win Aeva's next a our to the growing key up across now the a advance significant position of mix to are engagements the to leadership demand with is of open and progress of of indication this wins of the XD further continue and on these stages and year broad range believe that, in applications automation beyond. With we for line and wave new

Operator

Colin Instructions] [Operator to Oppenheimer. move Rusch We'll with

Colin Rusch

that mean doors move process there leverageable space, seems you? of of sense It's pricing a great to and attack other might be the I'm there's and relatively that the opportunity getting you get total that's I how open. to at that vetting to it. could is which curious scope you cadence just able potentially robust for see and through security into the like It want

Soroush Dardashti

first excited Colin, expansion market answer We're excited Look, you we sure. to very This are are about our actually is in absolutely that. the here. -- grow This this. in to security. Soroush. is Happy

other to some time apply XD brings and faster detection, really do better This I all, national different testing really now been longer resolution, applications, more of to of technology a additional reliable little really, us range going comes security detection. which technologies, about capability automotive including a talking LiDARs. And the background. this basically number and defense and we organization enabling after think other LiDAR for bit for down time-of-flight top of selected gamut what FMCW evaluating realized, to they and table whole First that is, of beyond including a through have faster

this talked significantly overall, of higher. order bringing think beginning automotive. We're about term. mentioned, the the our the not including also adding part diversifying, you I solidifying top which another this our just progress top progressing plan. higher engagement expanding OEM, around just new one at talking this in of really the It's process, automotive, applications, OEM ASPs is, obviously, as not XX is always So quarter, with showed -- application. XX than We've but now near we It magnitude solid

I we start importantly, it's think Security. and think a of just Aeva

that and additional to over other time. And And next start opportunities where really capitalize This importantly of we expanding. further on as then are we in ability significant in as going we provides see do perception investment confidence work taking focus increase is expand in number production additional with and convert XD opportunities applications. opportunities is towards also that in see the consistent other technology technology investments we've vote the We others can our a meaningfully may go mission our applications. And technology to so broad to are same And means adopting that, to defense, our to LiDAR-on-Chip again, actually same this are for spend or that a security, happy think win, I using engaged and hope we those I to on able with module we think, across here the really to we key this level then bring of core now well. we tackle really algorithms, expanding be with different but these our automotive. we're certainly make think, it as made to, scale, I being

Colin Rusch

talk about then any And want getting of in for and positive production sort as validation performance, we whether the of of thinking scale-up can Nikon tailwind within here anything guys? or you with or that about be a a validation that terms Great. efficiency the that for negative, process headwind full and to dedicated you line the maybe products, surprises, of

Soroush Dardashti

Yes.

of said module. year have that dedicated we out on manufacturing with the And beginning line going manufacturing at we this obviously, think been for Thailand. think Fabrinet LiDAR-on-Chip some working line to the at we're be time working, I I our for creating of our

not I integrated think automated We're of possible. the reducing fiber, this having advantages level, cost, any at is BOM one of the process making using everything right? the as the chip as

able running what we and dedicated ahead to now on we see getting schedule. a here actually were bit so, line of the And deliver is up

ahead So important. of QX that's frame. for We're time actually planning around this QX,

have already things means really actually Now go our smoothly. pretty QX may completed this, which

This are of we line. the on turn production of dedicated So is programs. here starting to going production all support to, up our with the course,

also is a having scaling QX which on-road using others for in We then that I go is Truck the in that talked along are hopefully shipment We're that for we to milestone Daimler as about. be and for shipments going ongoing. already think critical obviously Nikon vehicle starting But us.

have time. us allows So to on that the production readiness

any higher, together are potential in Nikon or automation, near additional ability other really as broadly opportunities. And in and I think quarter is the we but also with have different to security. with Again, I on we also, this level up information magnitude not additional see is Obviously, a of really term. security, our industrial to direct continue achieve production an just specifically, able we working to certification, technology program. past been on something us It's automotive. possible existing our in XXXXX over work And also which not beyond multiyear in of this ISO ASPs sensing core micron with more this chip further for to where readiness ramp Tier is with the higher programs. One to That similar accuracy mentioned, time beginning of we're X That supplier. want automotive with manufacturing grow program more really Nikon different collaboration the customers highlight as confidence same similar that thing you a for technology. a use is that others that's Nikon. algorithms, the just as maybe We precision. for software achieved order builds is our new module LiDAR this

see ripe interesting that is, we and market a for pretty after. to is ways, Aeva some in go this So

We that gives have on the to well. this market product confidence this. been executing now then further fact to in have validation, after go complete And the we expanding as been Nikon able this us final

significant while increasing the in are up automotive progress and that that So we see we're be clear, to this, we doing all making not letting well. as and just traction of actually on

Operator

move with Moore Stanley. next Morgan We'll to Joe

Joseph Moore

you you're passenger other that you're it about. you standard? much if an about other Is beyond could that I talk OEMs. the the X then kind as top into passenger you talked wonder of you've big of OEM Do more talking the OEM how sort the terms the energy XX about there customers mentioned if Maybe big opportunity option? putting sort of well as Daimler opportunity? is progress with XX of top in know And

Soroush Dardashti

Yes. that. Sure, answer Joe. to Happy

So know, obviously, mentioned. delivering have on course, as course, working as first for OEM, SOP you We're, Daimler been on Nikon, automotive. focused we and of of on,

which that think completed We and our company we information OEM continuous have with -- to our product. last readiness. further we progress security audit, gain XX continued I of quarter, contributed finished solidify to commitment position Tier this that valuation completed course, XXXXX, of of a as completed We our talked our our maturity about status. top to the the X together. We've as well, ISO

this significant it's car right? not. technical first there because they what have enabling I aligning LiDAR, and production I multiple understand negotiations that about looking close automation. and time that which mass across as vehicle this, this they're Daimler commercial this important volume that volume experience time OEM. To can OEM What a at as question perception them, So and time-of-flight discussions production the option with doing highway And requirements. say now on they what for is that of we can speed cannot we've do. an has they think or opportunities is already at would see point, done probably have in lines, been continued kind We're with the actually your I with and well. second Truck starting collaboration is with passenger the say a we And the

interest using Which So is autonomy quite it's that ADAS yet about where the for collaboration Level quite we're that encouraged only technology FMCW next-generation higher way speed. we with. ADAS capability. like you of they're to it niche not It there portion their vehicles. highway some that in driving around think really also really is -- not autonomy very is this the that enable that's some capability And is working see automation. our higher seeing they're that X on extends with full, it to that speed This

say. I that's can So what

work encouraged them we're continue decision technology that be and year. So to obviously and expectation later the with will of with with appreciation our that their made this

Operator

Craig-Hallum. move with Richard We'll next Shannon to

Richard Shannon

Firstly, maybe sure far not touching than kind so on if Nikon I'm good can I just year? of rate about be I smaller getting here. for if production think here. think all some you here, kind would really of here. maybe do can how presumably discuss we terms, have even I a a that some you you way of orders here. forecast it's Obviously, from of automotive the them, so first sense a sure have get larger to kind of But think program. see scale next revenue what Clearly, you have a interesting it's scale sometime or wonder into what good you we that look as whether in of understanding And might nice customer volume helpful. I couch run

Soroush Dardashti

Sure.

add. question, Saurabh of Let course, answer can me and that

is Nikon. commitments program with with this a long obviously, So multi-year

than of So way ASPs, to mentioned, can higher right? end the program, magnitude balance standpoint, and starting look we're year of the but a obviously. And about maybe obviously, in multiples be it volume things with you I ramp then I mentioned, automotive. From launch volume up versus from there, as at strong think As the what and is out net when you over ASP, benefit, we of order time. think similar share the this mobility as careful the that a at

think again Nikon. way this opportunity we I the with is this program think about first is, a

as metrology time. that other of to of number the further a automation. vetted industrial the kind we standpoint. industrial an others believe beyond deploy from and with customers on We think and product across to And We that industrial first need similar grow over potential see automation actually get automation, I to is see other are working can actually that. precision that micron-level this and can opportunities, being the into we expand

can that's including say. that. on excited about kind manufacture us obviously, line about share of growth Nikon, what dedicated And But can to of help us the course, I helps on I So what everybody, that's and size, others at for having kind expand opportunity. capitalize pretty the Fabrinet and it. Daimler of and this to We're

Richard Shannon

XX helpful. here LiDAR there language sometime I Maybe on year. the here delays XXXX this and follow-on broader of that you've Is you some quarters. terms quick been decision-making you seems talked seeing delays the top been there? about all? there That's OEM autonomy decision of for in moving your question a Has expected last know regarding few Okay. that risk programs any into any at here. repeated you a It

Soroush Dardashti

question. Good Yes.

helpful interesting and some see is actually some the environment think for by time this we've around been in either industry out. always that XD the transitioning their year. this with what's see for of commercial believe that engagement technical We're our continue us track We've XXXX. LiDAR. We has milestones. to hitting reducing the the activities discussions some there. Two, on timing that top of the starting there. say, lines with in that We're is track, mentioned, team, with and FMCW we completion I RFQs with are would one, timeline we strengthening further are we about the space, remaining decision still as the with of we quarter, talked maybe continuing others we the evidenced or fact OEM talked we I market now remains what last that the maintained Daimler partnership as about towards negotiation time-of-flight of XX audit on this kind pushing We from our I talked SOP And the be where Truck. about is think of the and maintained an that, in,

indications by don't course, far. and so this is all timeline, the Of the control their progress have, and we're encouraged we we our feedback very but

also We are and actually in continuing working vehicle technology integrate the level. with them our around how we

importantly, time-of-flight XD Now OEM another we to is solution potentially new transition passenger another from have This and added LiDAR. that's XX with working also is to also, OEM. engagement now a top a looking

major there's I on timelines globally, we major with of in OEM. only integration desire encouraged deep volumes the XX And kind concept. Aeva OEM's very program, other are similar another So top line work think, importantly, are, with this the by passenger to level of vehicle

that's past where activities. we're about of talked everything, gives technologies. not maybe We're some expecting from track. are going seeing So have industry. that trend Obviously, are in technology. the we're we're in something the seeing to we increasing we're the broader activities, with that us interest increase in the look, indication win an consistent on and but this progressing right obviously, what is reduction there's we some some around seeing And other And in these transitions

that that's our as And maintained see as lines we something have We time about talked have we it. important.

in So overall, we one giving the us program say, that while about feel and programs with, at on current seeing we others out months. multiple maybe pushed and time goal have what are other involved coming active with next shots least programs I our some those we on of are may securing up, good would

Operator

your appear participation. does at you this questions are Thank it time. there conclude This no today's for further And does program.

any evening. have at And time. a wonderful disconnect may You

Aeva (AEVA) 7 Aug 242024 Q2 Earnings call transcript