LIDR - Earnings call transcript Q2 2024

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Unknown Executive

Good afternoon, and thank you for joining AEye's Second Quarter 2024 Earnings Call. With me today are Matt Fisch, Chief Executive Officer; and Conor Tierney Chief Financial Officer.

Earlier today, AEye announced its financial results for the second quarter 2024. A copy of this press release can be found on the company's 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 and and other based business, regarding are industry the conditions. statements current assumptions expectations AEye's Forward-looking These forward-looking impossible statements and changes are subject to circumstances are inherent that difficult or to in predict. risks, uncertainties differ materially contemplated forward-looking Actual results from may by those these statements. placing against these reliance on therefore, forward-looking you, any statements. caution undue We of

today information Commission, the periodic You time the with to about and including the August factors any recent does statements future discussed of law. not intend risks, Exchange as regardless information, most AEye in as XXXX, and by find All except is can information in X, other new report. time Securities be otherwise, uncertainties more reports to from forward-looking developments and required may filed update or of

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

With that, Matt. let to me pass the call over

Matthew Fisch

for Thanks, us Betsy, quarter today thank call. you joining XXXX and all on earnings our second

saw with bolstering new our momentum product we and significant company's of the and second partner cash OEM quarter, engagements During runway. the launch,

to increase from been overwhelmingly QX, Our product, has our and and on KPIs market. outstanding continues partner newest progress was in the in meeting OEM the drive quarter. in Since internal our external significant and Apollo, interest a positive feedback

LiDAR better specifically seek for view as and but exceeded OEMs partners greater only from for an maturity and and form technologies high-speed uptick activity sign LiDAR in in performance demand of factor. Apollo. a not technology solution small XXXX met in our general, performance have ultra-long-range another as in We value We the the but targets nanometer

Let into detail. go me more

and we QX. are initiated discussions. discussions, in OEM OEMs in impacting with is with OEM primarily engagements NHTSA multiple Apollo. the We discussions recent early Regarding driven positively by our also interest several are more actively the believe ruling engaged These

automatic requirement NHTSA all mandated passenger or AEB trucks as regulatory you a light As emergency high XXXX. SUVs bar. and recall, braking The has in standard a cars, by sets new

We OEMs a quote. XXX are to make crucial performance at requirement that even be seeing over meters eligible to

strong technology. We believe a XXXX-nanometer this favorably a makes positions and for case AEye LiDAR

a of We we have demonstrated at distance examples which distance the X in believe performing is kilometer, the of sensor longest AEye's LiDAR industry.

We expect requirements, to warning at their the be will technology NHTSA performance XX hour. the including critical delivering safety a of forward meet standard XXXX per toughest collision to miles required

its OEMs Importantly, size. industry-leading to design this achieves without due sacrifice Apollo to requiring compact

LITEON, X respect chain With supply expertise seeing are their we leverage their tangible in our Tier coupled their to results to optics. from partner, ability with

market. and believe the cost We completed executing incredibly to that have we transfer product jointly the significant a bring pricing competitive them are reduction will successfully now technology initiative to

restrictions integration a progress on supply and believe NVIDIA geopolitical provides OEMs platform. with make continue distinct also advantage footprint are with are for facing excellent geographical their global to while LITEON's chain engaging track we that we Hyperion future Similarly, uncertainties. navigating with

our see We China OEM Apollo June. significant in in with we interest are in multiple with following Suzhou pleased launch the engagements

and conference ATI OEM the opportunities. facilitated success. LiDAR Apollo and the LighTekton great launch matchmaking fantastic provided with was at in collaboration support recent valuable a also Our ATI for Suzhou

our capital has cash terms of Overall, us second favorably XXXX. our and and the allowed progress to quarter into raise favorable at extended the new runway market half responded this which partnerships relatively to

we rates remain we of done expense excellent the has on an managing our and burn targets, to. team track committed job Our with

consider These and growing U.S. trends globally technology. the systems markets in global be in future of towards underscore a that the continue EU adoption of importance goals. achieving and LiDAR technology is LiDAR shift safety advanced we the leading market the these to to progress of vehicle extent leading to the pace, While China measured Chinese LiDAR a at indicator the

reliable allows Lastly, compared automotive our and capital-light to with advancing in the concentrate peers. stable our fundamentals, company model capital strategic industry us on on to a attracting our requirements value driving Success partners supply key and chain. technology, hinges modest

exemplifies reuse the it as leverages Apollo chain. degree high existing this within a with approach of Our supply

working capabilities, unique Additionally, This our flexibility needs. Apollo to in adapting market from rapidly software-defined including only strategy has concept advancements X to in product's in of going the months. AI's samples enabled rapid evolving demonstrates

New stock Circle cash significantly secured with the initiatives model and agreement, runway. financing through our reduction which, our extends coupled purchase Having additional capital-light

entering We new stage growth. are a in AEye's

and have Apollo for set We sights executing wins. our pursuing go-to-market on actively strategy design our product

in interest excited We we the top in with our are China partners expect to continue connected be supply AEye. to the market to in relationships to global drive players And OEM chain. our

trends Overall, AEye. and positive the our financial successes, excited and we a performance are product about indicate development market trajectory, of future

I this turn Conor over the who point, like call to Conor? financial our will to At performance. cover would

Conor Tierney

for the opportunity X market the the $X.X be We estimate by long-range early are we market next to the in where are progress that thrilled ultra LiDAR over Chinese years. billion seeing we

Our start, inroads to partnership off we thanks support. a their to OEMs, strong with and are starting ATI is to make with

potential evaluate to opportunities. investment continue strategic also We

quoting to OEMs. market cost down BOM imperative with activity catalyzing Driving in engaging adoption and is

We LITEON strong with generating making progress this OEMs. front, on from which is are increased interest

by is other brought a Tier track the positive net and of a LITEON X established global OEMs. seen As to an industrializing record has as market with products, automotive components that

drive business operating leverage sets the and future capital-light as reduces will apart risk model, scale the competition. which in we AEye's from us

sustainable up crucial matter, on business think focused can Our We environment the very and our is XXx that scarce market investors to models than capital lower current is where burn now are withstand rate this in peers. fundamentals is headwinds.

in have achieve market, while we to the to to all We momentum bringing down pleased are continuing drive Apollo costs. with been able that

runway second further has extended the capital, quarter, our $X.X costs. second million financing This in of of cash into During half we the XXXX. raised new net

equity We closed $XX a to also new credit liquidity. us line gives access of in million to up facility recently that additional

market credit resources runway with program market When line cost initiatives, funds believe our pursuing factoring ongoing design bringing create AEye capital potentially equity including while we wins. facility Apollo of from financial activity, savings this X-year potential any a has additional the raised also to and cash to

results, net the for cash our financial Now reduced turning our I we fifth to have am to burn quarter. second that quarter announce happy consecutive

second cash $X.X from was the million than $X.X $X.X million, and the our better quarter of first our Excluding new financing, down million. in burn quarter for guidance

due operating Second fees, Apollo. primarily XX% reductions expenses costs million, and the professional prior to from down quarter offset GAAP quarter, in related partially by higher personnel were R&D to $X.X expenses

to and of the audit-related per versus GAAP million fees loss quarter were down in in We $X.XX in or primarily GAAP legal higher onetime the million the $X.XX $X.X net legal first fees quarter XXXX share a and per first of higher $X.X million, million loss the expenses mainly of fees from The to net $X reported loss the timing quarter. a of second XXXX. quarter. in in GAAP sequentially operating decrease Non-GAAP the due audit-related fees onetime due quarter was net first $XX.X of or first timing share of

closed $X.X decreased in activities cash $XX million securities. $X.X million in was first used our share compared second XXXX. per cash On non-GAAP quarter of the of million share and net net million a the loss to $X.X from to the non-GAAP $X.XX or cash, quarter. for We $X.XX second basis, $X.X quarter operating first of per or Net equivalents second a with quarter quarter the in loss marketable million in the

to guidance. XXXX Turning

progress We have continued are the in cash burn made that efforts. incredibly our proud of reduction we

the our are $XX track remains our year, other to guidance burn top and management We payroll for savings. to on Expense of thanks full one of outperform priorities. million

are reduction to XX% XXXX. first of compared We cash targeting still burn quarter in the quarterly a

about optimistic future. AEye's are We

company success. Our for and unlocking partnership the is opportunities model positioning scalable market for us

extended sheet, secured runway our more to even cash We and our have access strengthened balance liquidity.

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

Matthew Fisch

of gaining This been momentum for a quarter period has us.

We KPIs, exciting to next sharing and future. strides in an more will one, forward chapter of the with you AEye have product be believe engagements, We partnerships. and look customer the we development near our made great in

invite able, to look forward us are JPMorgan in you New there. you we the Conference week. join this If you Auto to at We York meeting

of presentation You link can our website. on Investor also through participation support your all page and Relations you continued Thank for our see today. the live a

Unknown Executive

Conor. Matt, now and you questions. Operator, to you. Thank call Thank open the may you,

Operator

comes [Operator Kevin from Instructions] Capital. Our Garrigan question with first WestPark

Kevin Garrigan

quarter, give can and use LighTekton and OEM And you trucking think agreement lines then partnerships had railway to autonomous noted cases you Any out? production on where time your ATI So use introductions. noted to you potential some start, I last to systems. have point announcements? Any new led series with cases

Matthew Fisch

Thanks, Kevin. again. for back. Thanks joining us Welcome

lot big on amount China products seeing in these performance coming that the our and not the interest connection. discussed discussions So higher new of quarter even from what delta a we last coming we're with of long-range from

those maybe conversations. at XXXX as SOPs, still in terms we're In early as of looking

of bit I think years, time as be longer. the know, these around that programs, OEM in some little maybe you lead a could X

what the more interest newer similar is line we've to engagements of amount in say we So seeing is so with and up, last the ongoing. time what very conversations good The we picking of talked those quarter. about news would I been the of the ones still coming is have

Kevin Garrigan

it. Got

you're for know seeing cut these demand recently. then that Are right that I sense. estimates some more some to pushes any and Global Okay. RFIs And S&P I Yes, you and seeing, of their and the RFIs of makes RFQs production. the RFQs? has know

Matthew Fisch

I is probably operative as Kevin. goes she this, steady word on the think it's

the year, speed? is I came what requirement in hey, interest emergency some this driving this anymore. U.S. think, braking automatic in, anything, out at example. earlier a happens And rate autonomy is it's the high It's when this if NHTSA traveling car there just increased not that

increased in script plays we we see us technology quite the consistent to the platform far lines down well time fairly and in LiDAR, So which applications, allows which interest is use, high-speed earnings for the XXXX-nanometer covered road. very

time be of number lines the increased holding. conversations, appear to So but

Kevin Garrigan

Yes. it. Got

and LighTekton, just U.S.-China then hesitation of partners worried from I if LITEON And know Chinese be and that's I But about you and very on? that as I ATI any Perfect. Okay. kind are any customers guys using tension going think some one, may smart. such can. last

Matthew Fisch

and first and Look, and able this velocity to I demanding. to think of also quickly adapt China in chain the have to incredibly is Speed move is market relationship part are local-based able to supply being The changing that needs fairly be the very foremost. is and able quickly. a important of innovation to be customers'

our with show that So we has well respected rolled received in seem they as be well and ecosystem. out LighTekton partnership quite And the ATI in been the fairly to month. LiDAR last

So red we ground, There's the support manufacturing-based for on we the major which have is there. OEMs. those have potential flags which through This through boxes ATI. chain, local LighTekton, supply checking no local

Operator

showing not I'm the you. Q&A session. questions. Thank This any further concludes

disconnect. great may a You Everyone, day. now have

AEye (LIDR) 5 Aug 242024 Q2 Earnings call transcript