Earnings call transcript Q1 2023

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon, and thank you for joining AEye's First Quarter 2023 Earnings Call. With me today are Matt Fisch, Chief Executive Officer; and Conor Tierney, Chief Financial Officer. Earlier today, we announced our financial results for the first quarter 2023. A copy of our press release can be found on our website at investors.aeye.ai.

Before we begin, I would like to remind participants that today's discussion may include forward-looking statements as defined in the securities laws and regulations of the United States with reference to future events, future operating results or financial performance.

on industry expectations and based our assumptions are the business, other statements our and current regarding Forward-looking conditions. to are These inherent forward-looking or that risks, to impossible difficult uncertainties and statements changes in are predict. subject circumstances

Our actual those these any placing statements. forward-looking of against materially these caution therefore, reliance contemplated you, by We undue may results differ from on forward-looking statements.

Exchange reports as with find of uncertainties more result may by law. report. May and forward-looking in and and we or our risks, the new our information time XX, update whether other to be the obligation filed including required about more statements, time developments do recent You All as of not undertake can any XXXX, except today to from in information intend information, and Commission, Securities is factors a periodic as future no otherwise, discussed

reconciliation In our information of measures A you not addition, These financial include are measures. will substitute GAAP. a in measures presented information to only financial non-GAAP directly for release GAAP presented purposes accordance to references the certain today's refer considered comparable non-GAAP should press as of our measures to reconciliations and our discussion to is available the with most earnings for release. GAAP and financial directly supplemental measures non-GAAP be measures most in in comparable the should

Now let me call pass the Matt. to over

Matt Fisch

Thank Jen. you,

with and speak assumed and quarter Norbert Components who Tierney, the Hammerschmidt, begin will partnership, recently we're Continental, President Norbert results. our will Conor the have Financial at of to review Vice Continental is today business and I'll discuss has our me first market with financial Conor also delighted our role plan Here Chief opportunity. our Officer, strategic today. of

jump have in. a today, to right so I'll lot cover We

enormous and partners, the I'm and provided. X where of appreciate of the last in some community commercialization stand you joining our met also more on we since opportunity. with cusp and I've feedback enthusiastic market even the with teams met our I you months, AEye, investment have and about the Over

gifted we'll the Wall We was support. model have and these Relations, are committed best After products technology. was to to hard meetings, Investor the me path business initial with that also featuring exceptional Street's on team our we a industry, and and it Continental. in LiDAR we to to It clear that me hyper to best-in-class work to clear need automotive focus rebuild commercialization

advantages and both automotive. We believe model business we that have in product

and that reliability, emerging ramp our margins, Our technology quickly to technologies' performance adaptability delivers burn rate, and and partnership trends pivot and OEMs volumes lighter Continental licensing our dependability, model, need, cost drive range strong the structure deliver us and reconfigurability down cash faster. to enables

This automotive strategy. We in includes expenses. our with structure company cost place resources which as have rightsized April our in to first took align across-the-board as operating reduction well a restructuring and an

a As we have plan actions, end runway XXXX. cash our the a through to extend result of of these

allow us is automotive on to further our without and customers This go-forward our to AEye's is hampering now partners. our model, with model based will deliver realigned expenses licensing to ability business reduce operating for markets. to which our continue operational

in quickly to ramp to competitors different is can faced volume we by manufacturing. our CapEx longer other scale scalability operational approach very to model, our many minimizing scale automotive AEye, licensing who capital at leveraging and Achieving markets doors and to even of path as more our accelerating Continental now OpEx opportunities automotive term. partners increased open Our profitability. our With expenditures large and such will from while production in-house

fit to select standpoint. from narrowed opportunities that and we space, product have revenue industrial In a focus are the our generation

Virginia, intersection Kazakhstan. Minnesota, and in M smart deployments in key automated market-validated is incident tolling, Turkey the sector Our and with product ITS detection XSight automated

We receive the Minnesota on for Award of performance, with Best our Transportation. ITS most recently continue Department collaboration of with our to accolades products' the

to shown even in is Range most technology. space, who was safety LiDAR building at the solution product Continental, progress ultra-long-range AEye's automotive HRLXXX improve is in conditions. road Our LiDAR validation the already In challenging the Long weather using

Together AEye paces in humidity Range is can partnership with extreme with LiDAR. deep is has for thousands XXXX, with ensure we're quickly product product success global to and key production robustness. scale we complete, who automotive-grade on Continental of milestones our vibration developed our by the HRLXXX This and set validation design testing putting track for Once with through Long rigorous a complementary Continental, up hit footprint. jointly hours. its temperatures, to entails and

we honored our on Continental, Vice Norbert words say a have Components to Hammerschmidt, partnership. few at President, Now are business

Welcome, Norbert.

Norbert Hammerschmidt

and production Thanks, series automotive start the secure saying velocity by Continental expand decision our our the partnership with Matt. to is by like business very LiDAR focus and I strategy strengthens automotive case. take an to first awards plan that and the management AEye. new go-forward needed provides would to pleased and further presented AEye's

in As commercial Tier to our when a and understand and old partners like choose so we industrialize vehicles, processes, required we automotive so XXX-year time brand the for do supplier, products AEye, deeply we Continental with at mind. with capital reputation X passenger OEMs and

the we committed ago journey. accelerate are work we years And and as we production. We precursor higher a validation to which even were as this more so when to X as through is design integration together volume OEM stage, today began to AEye

also have vehicle our of to and volume in stage AEye are cycle on large The parallel, are progressed scenarios passenger Michigan teams tremendously we labs real-world weather with conditions activities Range adverse engineering to Long Germany. and multiple on at Conti course our quoting testing stringent and this working tracks perform while programs a both products closed OEMs, the business HRLXXX life accelerated variety during believe In from well we replicating win. our LiDAR positioned where collaboratively teams the in LiDAR in commercial

curve began of our looks that saw journey belief. our The years, XX radars, RFQs recent Continental last partnership this market automotive that products, bright with ADAS will AEye LiDAR mimic belief in which over a AEye. and leader the future exponential from LiDAR with global confirm for the these OEMs our with As adoption very and growth the

back Matt. you, to that, With

Matt Fisch

Thank product We I'd take reliability, XRs: moment and to Norbert. to our think, LiDAR reconfigurability. against like about advantages. call are products going ultimately, we the you, talk a to measured what be range

advantage. than in where make-or-break the size. is MEMS and is automotive it This our At key industry. a Reliability. smaller of our roughly The industry, is the X for anything player gives LiDAR every in solution distinct magnitude us millimeter, it's orders

visually see You can this in presentation. the

road else. see further than anyone the Range. At XXX meters, we down

this might speed. crucial driving when a element comes it maximizing safety you is imagine, while As to at any

our an LiDAR of is to solution to ADAS and Reconfigurability. due evolving evolving be easily to ADAS. in reprogrammed presenting shines the is its where continually adapt list needs scenarios. This ability driving the to of software-defined field ever-growing

for functionality, to refer software-defined an system of of these can real-world scenarios. important an recurring enable perfectly presentation our advanced is driver You revenue examples features of assistance product of vehicles. era The for to in source and some new suited OEMs

to I'd in to the Before I market XXXX. speak turn on briefly over opportunity like Conor, it

and continuing unit opportunity. to we million a that quoting a Continental build million momentum are as $X represent seeing are around activities XXXX that We LiDAR service, the momentum ourselves through via to OEMs see this ADAS $XX

financial I'll Conor? review. With now for Conor turn to over that, his it

Conor Tierney

has and XXXX. that go-forward to Matt's and the align end you from discussing strategy I'm expenses to Thanks, Matt. of by be the a I'll structure start with this opportunity our plan runway AEye steps tremendous cash first Welcome, speaking I the our everyone. better for share we've time ahead, enthusiasm seat. taken with our out to reduce our our to extend cost to excited

by and to to curtail services expenses to previously we March, in X/X primarily professional a As workforce our real about difficult and we announced related decision estate. other made reduce

steps in the burn restructuring quarter of we As incurred is in about first Including the our by by cash to million to our quarter related year. in took reduce $X.X the our a next result the quarter. actions, XX% of goal first onetime these reduce expenses, we first charges

previously reductions, announced locations, workforce a We will efficiencies. vendor office this savings of achieve other and through combination cost the

our Now financial results. turning to quarter first

Given of our believe the quarter, model quarter helpful the XXXX fourth not and to we first and cost significant comparisons are performance. quarter we business evaluating in first made our results changes that our XXXX structure in

of For reference, included those all details are presentation. earnings in our

in quarter call. We second discussing earnings results quarter-over-quarter our will revert to

towards we Revenue some expenses quarter expect Non-GAAP came in were management, in XSight quarter, above GAAP our the $XXX,XXX, items first operating the of million. the which first in than were products onetime the industrial and volumes consensus operating are was expense was $XX.X quarter shipments quarter. in first $XX.X anticipated resumed increase quarter. will at the quarter first expenses better tighter and half this Due to second back operating million decline order estimates. in in of the expecting an nonrecurring that during year. the expenses There We

first was earlier. the first GAAP non-GAAP per consensus the the million than $XX.X reported decrease share or a because quarter, which non-GAAP of of of We're On second For estimates. outlined $XX.X cost initiatives $X.XX per we in of $X.XX quarter, million loss in we quarter and share. was loss loss saving our net to basis, loss the better net also or a $X.XX net GAAP a expecting a loss

first quarter $XX.X cash for cash modest was with quarter cash, used first at a million. We the continue activities securities. and equivalents the Net We of to marketable was closed manage carefully. quarter million our sheet in balance $XX.X strong in with cash CapEx operating $XXX,XXX. the

have facility. As credit liquidity, an access line additional equity we of also to source of our

have $XX right this same facility. to to under the Subject we convertible to another the conditions, lender note certain issue million

expenses we on focus runway. to automotive As model noted the accordingly and cash business to have steps taken align extended our have our earlier, our

continue areas strategy business product our development. Looking and support will to and to allocate carefully ahead, our that cash of we critical directly manage the

Now second guidance of XXXX. quarter turning to for our the

to expect $XXX,XXX the to in of range quarter be We revenue second $XXX,XXX.

XSight generated year. XXXX our the in the earnings second slowdown call, that in our revenue of our be of to Given most last the expect we discussed platform we half production on

through approximately non-GAAP to cash the a last of with loss EPS lower as initiatives. our cost runway quarter expect align We conclusion, second and our of In pleased savings our to end expenses result the business we've quarter is plan XXXX. a be than steps model our which go-forward taken our with $X.XX, extend of I'm to

excited focused HRL of about We with Continental. product our jointly entire design goal: and we on developed our that are #X is achieving organization our validation our future,

it I'll up. back Matt that, things pass to With wrap to

Matt Fisch

succeed conclude incredibly to to the excited in like AEye how I'd market. positioned is by about saying I'm

the software-defined LiDAR reconfigurability. Our is marketplace solution reliability, XRs: differentiated through range the in and

to has to accelerating requirements, profitability. model OpEx business AEye's and CapEx minimizing our drive on our rate, allowed us and burn down Focusing path cash scale

part as HRLXXX told, value very go-to-market its of model automated We strong and platform unique of the passenger and are future our not believe valuation. our which our Continental, All technology, a is the for in driving vehicles. opportunity our commercial have autonomous full our company, in current partner reflected stack offering and we

the a year, and will focus For with operational AEye look trust that be XXXX, the as as we the in on meeting We put points a validation executing focused strategy space updating value. proof execution OEM milestone. shareholder as we board, team RFQs key on our you forward design significant automotive deliver this will to on go-to-market automotive progress

the for turn to questions. the that, call I'll operator back With over

Operator

John first Our Water Instructions] [Operator is Tower of Research. from Roy question

John Roy

OEM be number some heard going you this? week expect to So on a how competition Can of this you RFQs. competitors Matt, your give same us the color going and guys from win you're to that after the we've also

Matt Fisch

John. Thanks, Great question.

And OEM a rinse the now sold we of tech couple our automotive opportunities about see So so with point I've what and it's -- -- I first a answer mainly things can a I to here. things process, is new the the into OEMs, that just context learned it and of differentiate. we and the same They're few existing lines, of years one, I to and to of Number but vehicle not Every new OEMs, one lines. in new Continental, product type a keep not of extensions through situation repeat. are bringing vehicle OEM, factor these I have what Well, to doing this new of that is from that things thing. all, key out a wants spent one opportunities. simply one quite

getting in And unique so the be those going involved always there's into market. lifting to heavy OEMs

all of one of So on bid vectors product performance the for these are opportunities obvious and is being capability.

this the at consideration. key that partnership really earlier I automotive who addressed day, one is the makes seasoned We think to an OEM decision great part viewpoint standing army provider, with of really we on to Tier key and next a The me when that the this in is us, to but department source, procurement on we the a a think call, about be end another makes quotes and Continental the as be key are series ask feel next X going being in get and behind to space experienced you?" that's this questions that supplier that's And "How is, of heavy of very I are vast that busy and in resources thing the going year. going resource-rich RFQs this very and a factor have And, to to literally series of this resolving us your "How they're lifting?" support any key to

John Roy

Great.

can can you you're making us timely would suggest at manner? go-forward your a that what them And some investors plan in So we talking to next, that about give as a milestones see what's and for? if look look Conti you follow-up,

Matt Fisch

Great. categories. One into down break I'd is it technical X the side.

the other and The is the customer pipeline. is the third financial,

So process, back an our throughout process years the live for harsh the in or that in alluded earlier, then progress we have talk a this can And is business enough system under we're our automobile way as to continue is the and Are This this a on partner putting burn and design which technical very validation good rate, XX more burn then a mentioned as runway conditions? of We're come activity, chunk pipeline. And Conti rate go upfront with we about there's we and milestone. year. our the such We'll our running customer which in the to support activity. that OEMs? we managing LiDAR Conor to. there

the use quoting term, we awards. and RFQ, Now RFI,

set the step would get there's itself. many finalists will in series probably assessing first price of auctioning a the is to buy the terms. to supplier's awarding then product, then a contract and this, of heard sequence And product for You've and who every those There's of production the right? determining quoting or -- for the

is to pipeline roughly in the this through to those go phases doing process, OEM So we phases and this go something I described which which we're according speak that we we we're and just X forward with activities various as as that we're phase of about can how in engaged.

Operator

question comes of [Operator WestPark Capital. Instructions] Kevin Our next Garrigan from

Kevin Garrigan

to the some year, automotive companies award So months. OEM of expecting LiDAR in at of the kind beginning were decisions X the first X

guys bit shift environment you pushouts you OEM it causing be guys Now to thoughts with are Or little a know potential -- and the with delay on think? I macroeconomic might decisions causing seems partnered like wondering but just of is in -- decisions. them any any on a Continental, your there their kind you focus? color if OEM of have guys

Matt Fisch

decision is of ultimately up Yes. that the the rightfully your you out Thanks, to Look, Kevin. when OEM. think Good to to I voice hear pointed again. source

okay, leads our facing. OEM what so then is environment it And to,

answer that basically we have indicators into. So on can that I two visibility

changed. is that far. I been dates? What that to hold the foremost by one are so the dates, testing This not the conclusion the what and and and early evaluation, of has quoting decision stable has First OEM what product mentioned, pipeline we're seeing relatively announced those of are

major slips are any dates seen haven't RFQ We out in that there. the

not And the is software and more, what's ways for I speak on. in and last service most, Jim believe this. going going OEMs the itself week Farley ADAS earlier to think on one the heard drive of I that revenue to revenue. we piece in second think is tangible mention the did we I what's industry, if

got similar he question. importance but quote Jim's that, And of to the not I'm reiterate think did going to response a I it, he ADAS.

recent I think a announcement Ford autonomous-type service a made features safety about and the in UK for features. also

or a market Software about a So to very the important revenue, happening certain an feeling deliver positive right of in as part now. percentage we're a what's that given ADAS of promise the OEMs Service large number is

Kevin Garrigan

a Can Got in Got you trucking us more kind any Then follow-up. sense. an Are if any That of it. you're the you traction as seeing Okay. on update just more there? engagements gaining quick makes it. give market?

Matt Fisch

So certainly the strong talk traction when quoting is that what that in I our that RFQ involved covers And we as space. as both activities traction see partner about Continental, say the again, and by well automotive to can we're continuing on in, and X there we're the strong trucking space.

Operator

our you participation the Thank There This be conclude today's conference. program. further the seems of to your This brings to no does for questions. us session. in Q&A end

You may now disconnect.

AEye (LIDR) 11 May 232023 Q1 Earnings call transcript