LIDR - Earnings call transcript Q4 2024

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Operator

Thank you for standing by. My name is Gale and I will be your conference operator today. At this time, I would like to welcome everyone to the AEye Q4 2024 Earnings Conference Call. [Operator Instructions] I will now turn the call over to [ Jeremy Appel ]. Please go ahead.

Unknown Executive

you AEye's thank Earnings Quarter and Call. afternoon, for Fourth joining XXXX Good are Executive financial Fisch, Tierney, me year Matt With today Chief fourth and Officer. Earlier AEye of XXXX. the Chief today, Officer; announced for its results quarter full Financial Conor and of this statements section future as regulations the laws Company's copy defined Investor assumptions. of found of the may or performance on results, based expectations and States operating to release in events, press A website. Today's with the be discussion can on are Relations the forward-looking reference current United include securities and our and forward-looking inherent to risks, are circumstances. in changes Any statements uncertainties, subject and

may these differ results those from forward-looking actual contemplated statements. by Our materially

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

will we call, we the non-GAAP financial presented and only are considered substitute financial be measures be a which measures assessing the in on for financial information as relevant this in business. of GAAP. information supplemental discussing believe performance accordance These addition, presented In are should with not

to reconciliations the press GAAP metrics directly of within find release. these You can the most measures comparable

let Matt. pass over call to Now me the

Matthew Fisch

lidar financial company. Lidar call. engagement for new has and we testing milestones, sensor, and begun Auto evaluations continued our product OEM Suzhou, marked Since software-defined We been AEye, This transformative at fourth markets. Apollo, thank unveiled new capabilities launch, on has XXXX, a announced last market past XXXX that Apollo and interest XXXX earnings X to our customers, China. by undergone unparalleled our first detection year long-range significant a to a additional ongoing runway, support compact including kilometer. progress. all breakthrough impetus you increased sensing for we extended today expansion into Tech with critical your Apollo us was Jeremy, Thanks, in then, capabilities. our its that sectors. Throughout improvements field joining advancements appreciate Conference Apollo it in high-resolution June the made at to and demonstrated We stringent OEMs innovative has in October, delivered by quarter

high-resolution behind Importantly, windshield Apollo has deliver the use for cases. to ability the detection from automotive ADAS unique high-speed

code and and in has CES and Apollo last in are extend proud OEMs drives, provide officially cost. Until the an now, live solutions. growth new We roof-mounted proven considered test AEye more that talented on only market through cracked windshield also viable Apollo. Based enthusiasm set runway that alternative to to implementation U.S. higher complex attributes month, with launched lidar a effective. lidar but systems the feasible, show performance our team raise was Apollo, the and Apollo's to the positive. not size During And successfully we unique the highly existing the and windshield due constraints the were a of our I'm a at capital Apollo's able behind solution for implementation proving cash mid-XXXX. bar is not behind we response to been with demonstrated in-cabin overwhelmingly capabilities that

production. our financial Apollo capital-light into we strategic With to high-volume resources, business secured these added model, longevity the and have ramp partnerships

XXXX. to is first the quarter on our first now call, quarter in we first and line on manufacturing expected the said third proceeding the to are of the partner. global come to Apollo plan, according expected X Tier ramp we line units our This As with

lidar reduced solutions deliver relationship Our costs, to opportunities ability global the door opening with strategic at this new OEMs. AEye's substantially to supplier with validates

top sharing actively more to remains XXXX, step testing to priority level of soon. We global upcoming which Positioning we Apollo, working first also and critical provides Apollo is a production OEM samples produce nonautomotive solution are for look expanding engagement with for to for quoting B the a involved of our Apollo forward mass process in remain of customers. include production-ready We OEMs, for rigorous our details the and programs. also

weeks Our or ability from development process, OEM both partner advantage the time This cost. significant product engagement. received a accolades delivering of days, to software-defined the modify quickly which our and months, the capability offers a architecture, other in matter in and customers' has important accelerates not

Turning to NVIDIA.

helping with partnership new evolving OEMs. Our to access us this is gain industry to leader

to We have driving them and adopt ADAS will an these accomplishment systems. rigorous unmatched which platform their OEMs the Hyperion NVIDIA's confidence. use with proven Hyperion a specifications, developing platform that lidar is help believe industry. direct our and foundation lidar onto as autonomous AEye exposure autonomous driving NVIDIA's platform solutions we OEMs Global for grants Apollo this in meets Integration

Importantly, due resolution, variety systems. range is automotive traffic sensing beyond a in traction across applications and of industry-leading space, wide Apollo intelligent to the including its and gaining security, rail,

to China in in example, the sensing and LighTekton, long-range field making stand our are partners testing also these types over are it low Apollo's with and similar in resolution for out make in capability alternative applications security applications, another at For we progress at of conditions EU. high visibility even Apollo options. Thanks ATI partner

while call more incredibly providing our the bolster over essential turn industry, growth remarkable Heading future cases which for capital-light performance. Through are of on a accomplishments view demands our lowest road business. lidar the foundation. capital meet execution disciplined the to from We strategic to opportunities our achieving resilience Conor cash capture high-value of financial and of financial XXXX, in use to initiatives, technological XXXX, AEye their raising outside has the to and provide I will in with as rate model to of closing, automotive burn our positioned well continue our cash I'm for reduction Apollo. In level that, to we success into map. With explore will OEMs, color pleased to with new Apollo successfully advancements

Conor Tierney

In to Matt. quarter, that build performance fourth throughout continued our XXXX. the strong operational defined we momentum on Thanks,

leveraged Our in fourth our disciplined our cash and management year. At long-term our $XX.X both quarter year same clear approximately this $XX which of the cash we year on perspective, in us for put key been represents we growth. A extends expanding runway us market current XXXX, opportunities beginning noted. To strategic our of XXXX. with full $XX.X positioning to the our outperform to the guidance of mid-XXXX, capital. of far that strengthened Based burn a forecasts, in has cost time, at we We quarter full approach the for in to and for as allowed current thus and successfully XXXX technology ended fourth quarter million, runway since our an additional cash Moreover, rate. highlight this million partnerships marketable market raising enthusiasm the securities. equivalents, to nearly this cash, success burn million Matt the raise are raised

ample and weather Apollo Our sheet and strong for activities. automotive us balance quoting in should production to reach high-volume delays runway OEM liquidity give

XXXX. deliver partner Our track up already B of is on ramping first manufacturing Tier quarter with line samples to X in the our and

and launch factor for leaders across industry and the systems. We're that further are interest its from OEMs from that technology advantages attracting the form transportation game-changing the at we seeing in validates to are Apollo's security, range combined their by attention hearing heartened competitive underscored performance, sectors, and including distinct potential seeing customers we our by CES. is a success multiple low-cost from rail, are We with increased U.S. enthusiasm many Apollo's are Apollo, as intelligent essential of lidar technology. platforms

supporting to to and in our X. automotive commercialization partnership evolving automotive NVIDIA path sector. I'd address our opportunities with with capital-light our unlocking differentiated Additionally, on new like is model the Slide OEMs is

expenses have As quarter. burn low am to peers. to you very our consecutive burn have I seventh cash we And operating for that reduced see, the pleased can report our compared cash we net and

$X.X and financing guidance the million. beating quarter cash down Excluding our $X.X from our $X.X the $X.X of burn million, new fourth for in of quarter third net million was million,

costs, in and non-GAAP in a and payroll The the Now million turning primarily quarter to is quarter. loss which of $X.X quarter the the of from subsequent due was marketable results quarter in $X operating compared GAAP of drivers the million were up X. in closed approximately prior our cash which GAAP of lower quarter, or to quarter's quarter. cash third were liquidity, rent of $X.XX to higher capital million from the partially up financing-related the payroll net in operating decreased million, These the onetime professional favorable fourth activities and in fees. Fourth per $X.X versus reported million $X.XX non-GAAP fourth for $X.X our quarter's internal from expenses expenses net equivalents, noncash per fourth mainly partially per on quarter's primarily of ELOC quarter were fourth $X financial of the total in share quarter. Again, the to prior $XX XXXX. This cash, was Net adjustment quarter our quarter rent-related to offset includes higher is with from were resulting fourth which Slide share and decrease third the net higher above. On prior to our in net loss in share million we GAAP facilities a or quarter, expenses, share $X.X $X.XX close operating $X.X by offset by or $X.X the cash professional lower to were GAAP the noted in lower costs quarter of our ATM a fourth $X.X costs beating a XXXX, due offset third million. million used for $X.X $XX.X loss million, Fourth million million the quarter potential a sequentially increased expectations loss increases loss on or payroll and sequentially hand the net $X.XX onetime fees. We by million per non-GAAP as due the raised in XXXX. basis, securities. Including partially

on XX. Turning Slide to our guidance

ramp We up cash burn for increased be slightly production. versus full high-volume to to due $XX expect required to to Apollo million, XXXX investments primarily the XXXX, year

the With first sequential cash positioned Matt in beyond. With a the I'll for such remainder it extended encouraged by pass first a our in costs payroll-related growth to expect quarter XXXX. Overall, quarter, cash we industry-leading improve related costs. back to strong and burn things are technology, onetime up. sheet, well in wrap and XXXX. balance After runway, XXXX that, are also sustained we an We quarter performance seasonal for each we to factors expect of in to as the increase

Matthew Fisch

innovation, well to execution, transformational Conor. positioned financial saving Apollo's Thanks, AEye incredibly in We commitment today. the are business, progress for road the and extended our a our runway, for After discipline. year by your With are and and and incredible future improving entry of lives. Thank you commitment team cash and across proud in unwavering market marked time growth. confidence your we I'm support successful we our appreciate vision. continued to safety their

We call will now the questions. for open

Operator

[Operator Alliance your from Global So of Partners. the with comes question Kingsler first Instructions] Brian line

Unknown Analyst

is This for about exploring? opportunities more that bit Brian. Kevin the little Could AEye is a you non-automotive speak

Matthew Fisch

Absolutely. Sure. thanks have is us of the to all. you today. It's Matt. this call, Kevin, great joining for And first on

as Just Apollo, things a perspective talk really also and lidar well. market about perspective a when is we next-generation an both solution put from from context AEye to here, in this

call, very small. the high look cell automotive, what objects to important second, one has got were things. incredibly on So very profile similar I which form talked it you the if range at we incredible factor, units, phone. And for is to #X, also about of to resolution. at my detect Apollo mean able these a X and is it's

side? has and to So and objects, to us very you about poor seeing today, high Well, example. on so interest safety it small think allows lighting you for sparked -- the some read much example, very conditions resolution relating security, of for if non-automotive news the why detect in if far

important able it's Apollo's of that to CES, performance, our quickly least, area. Last use software-defined very set We field type It's been popular only this in of we've things security, area. China, and security, need Because X on whether lidar. in And get since, continents is in Apollo case. of space. very, each the are of much doesn't X weeks' that that it's react what, been interest very get in in to there. across automotive out there's and incredibly at something differently just unifying and of a a Europe, out particular it safety program to time. happening testing works ground now very that for but We're had we're weeks with foremost, see So where perimeter first so in there a and because hardware quickly product And airports, about out X weeks, both not U.S., case, nonautomotive particular there us. X and the we've belong in

Unknown Analyst

Does one diligence more. more give OEM in financial just greater And meeting you due requirements? confidence liquidity

Conor Tierney

it that equivalents was that one. OEM we take get now through factor there. Matt's an important fresh in to And we obviously, of this head $XX to comfortable ultimately the through and high-volume equity And process, process a is Kevin, we as I Actually, thing. that because them earlier, call the is I'm you important myself this with question is on contributing I'll getting because and asked get also And that's to an million just an cash OEMs sure, major that our the runway OEM. does, right liquidity through $XX our of right resources in instruments. we walked part cash the that recently as another have for that, went as to Apollo then, production. And this and factor to the alluded getting comfortable Connor. in liquidity. in have have now glad we part obviously, obviously And projections, million would

important then in we've capital industry raise obviously, in the stretch just out, with really to line have runway burn runway OEMs of are every now to able of other I dollar the roll right ultimately pushing setting. And light our to that environments automotive be pace our below capital-light a testament in you And market months, been same kind given really And environment of brought timelines to leanly. operate obviously important the to at cost we rate, is the macro part it's a to less your million. we've We in it's X very that and and last with kept have that capital. than the structure in out is rates, if just that just to low interest this environment, you further. think the because Apollo rate look $XX year, capital to able raise, burn able that it's matter the that's that of we're model. and especially challenging where some our high just stretch to hard And fact and

thing So think And we're there out take a at into very, low very executing burn rate. I that's to an consideration. important

Operator

the Westpark line Your from question with next of Casey Capital. comes Ryan

Casey Ryan

progress Good the in quarter.

to that or our is say, congratulations there means that I we some it or framed can ways. But X,XXX what I volume a certain means? imagine volume. talking have times, lot So you level of oh, north high XX,XXX number high of about in of able minds. like that. of A north and sort on we we're had low other of couple questions. frame volume think Are volume companies high a

Matthew Fisch

the Definitely Great. appreciate question.

this me start on Let one.

of context, only all, in has the come that first I'm in lidar automotive the it CEO industry. the space put from Let's

and if issue production overall about the overshadows what sort out automotive And thousand So in for of above today. talk award, But of low what year, which called handful that market will going couple Maybe what's units transition of calling or you aside the described out vehicles around an up let's what a running China the generally there, a high and thousands. I meaning means the OEM RFQ a development starts will, conversation. actually programs first in that of there let's of volume, maybe series come mass volume that happening that hundreds today, we thousands quote because or an for have we're volume, request moment, the would outside production, we of think XXX,XXX vehicle in terms a vehicles It's are say. let's tens this or per ramps is a quickly to roads put be have China, of look, there's okay? on the in

any advantage company U.S. in XXX,XXX quantities assure how you're more comes it to work units you, good make more a and come those or take going that because of very work chain many factor -- that to Europe that year. because RFQs that come XXX,XXX with we X at a specialized given hip how very the a or we to comes annual basis level. experience do can Tier in a to with OEMs to knows delivering years in for of automotive. already. to see the account on us absolutely massive time technically, produce That's Tier experience, those get are this seen and gate is learning. out an flying point. how I expertise Tier the seriously. working into to of a of supply you knows us the and over operate contracts ability going us in when at our the practice, with how that knots, repeated with to that break school a out, purchasing to very, And we those We on is And matter going X you're or will shine haven't No we hard model, knows yet. And that X see the a Thanks to see side join where automotive production you're when this the and of or has experience as

Conor Tierney

mind. in And I just other was is think point Matt said, built to important product to the manufacturability what add with our

not used we upfront. And process think X. Tier that's that or to There's why the So the X. built high-volume with validation been if then is the Tier the happen endorsement X the think thinking diligence product scale point can you of And and able that's about work the that Tier a form can has that a partnership millions an itself a And that knows production. to product, about other components we've with thing that you everybody all are I to in the units. work in

Matthew Fisch

building is chain. years Yes. Yes. X-plus the our Continental, spent he Conor with to referring supply

Casey Ryan

this it it well, perception terms like in more. sort Because any looking the there? Well, they have as and solution. putting on see or in X-plus? X Are of market out doesn't vehicle? the What's some they put sort right, -- focusing feel or your of X-plus? like appetite something partners far to X people Are you of of and where actually we what's your cars? capabilities guess, bids level I maybe What doesn't as for into actually then like that. automotive the about mix the But certainly like for their about is window sense the outside feel happening, What's of

Matthew Fisch

Yes. Right. Yes.

So to year over EV last aside. and sweet this that fact, is off know driving. to are there's this that one They -- the is X sweet seeing. One incredibly have at of OEMs several. let's we've high-speed there. what And OEMs here, Level been of so. OEM spot of where Level which for kindly indirectly, X which point That's months number committed as broadly, there part we to But current which well really map, OEMs, spot And the this what they really driving, that each Level about a you every and them about if engaged And or XXX put -- key speaks map, solution. they're that said in this driving, lidar. covers to hands-free road just one will, quarter. includes them OEMs eyes on see This situation perform NVIDIA. platform so the maker last the eyes-free a that in X. using other demanding lidar. program we one one a said with area. this has And have meters are well. called the we're that on involved mentioned their so They've on We and for -- there's a some we're program is next which seeing is said mix we over includes spoken vocal lidar has of NVIDIA been topic. pretty of a several the them We're X we're all out as hasn't lidars last tied this is X have missing with been focusing terms the is Hyperion, in generation proxy which This of Level road publicly

Casey Ryan

guess? tell not, of talking maybe and well, talking where of I me of but you are sort of but there, know trucking size markets? see I right? this in opportunities? then vans in offer much effort so talking guess, -- about non-personal opportunities less those of markets, maybe and of not Do specifics, I But sort consumer sort you and we're And unit is are about exciting about how they sort the vehicles. bigger or robotaxi Or potential trend-wise, auto, those car because of outside putting also into interesting of sort terms

Matthew Fisch

Right.

applicable of down. think earlier car best They're weight break at for way like example, is that's and look all going to to mentioned, Trucking that you've I we're than highly lot slow a passenger it across would. a open these the to of markets. have and to buses,

call So seeing the in important see we'll especially out far a very lot expansion the heavyweight and you the a distance robotaxi is it vehicle, highway. In very on -- operating for domain, great like of there. that's a one

Apollo very like as applicable in that will be space product well. a So

running We're a scenarios of in software days a to just concept next X.X if or vehicle to that combined the and will. turnaround them one times So in or mentioned what-if market, earlier, we and giving as week OEM you very software weeks few And cases. passenger device haven't I like the is in many from ourselves adjustable. proof

all markets. very that move We're certainly to in So open we're to quickly able regard.

Casey Ryan

X a know I unit you And and oftentimes X, your like do sort for passenger of appreciate time, is lot the then it. Because last Level I'm count taking valuable right? lidar, of think I cars there I car. is, X think something X as and your of don't What X for think solution, of X questions. between we on where the we're many. need But that street, And it's with sensor be sort is the I Waymo the right, maybe have per should and sort like average.

I'm revenue So kind average vehicle total in think sort might of opportunity, you total terms guess, per cost what curious of I or your count per a be of vehicle.

Matthew Fisch

X out service. highway shining a Yes. Well, lidars look, passenger that may X I will, volumes, say, to have driving. different topic with OEMs Level fewer say, hunt while think might lidars roll but typically, multiple in in the than, as spaces, you vehicle right are already that tell vehicles, X in the this, different robotaxi. I'll per at much, know, competing end, And driving really greater we're we all of passenger have the is -- lidars if vehicle, where it's now kind tell segments, volumes different wildly long-distance volumes. I'll but a robotaxis you on vehicles different one see higher markets And the have the may you much or you or the the vehicle have which space, significantly those hot in versus per you

that is Apollo meters for things the interesting at tell on XXX why us operating of mentioned the of fact the the vehicle. the one out we and me rolled cabin it's call earlier because you inside is Let

of up small, vehicle into the decreases sensor right farm it's it greatly the the so windshield tucks and complexity. up the because So top near

roof because You our that glass with unique knocks in for regard, been the laser have don't XXXX-nanometer simpler. has a in a car to vehicle range. technology especially design opportunity a to of down the the have this it. the design lot special The we And lidar make problem technology, our

to You front example, don't lens the lidar clean. worry for keeping and cleaning, of have about the

tremendous pull incredibly on the seeing And per volumes. passenger so vehicle we're higher car, Lower side. a

Casey Ryan

if a sort refining who question helpful, last I to and mean R&D really I quarter. just Yes, and little spend plus trying and cash this terrific. somewhere Right, is that's The One right. not in is I think, correctly, just overall us of if I'm That's the which the for down million wrote cash. -- about in wondering you Is cash then the Or R&D in expect to follow I are is may -- talk by partners market. think, where are needed roughly that terms of asked all number, $X bit. you And or the you R&D the building same? at for support? what of spend just goes can Apollo kind it looking direction? it be we technologies if be road? about maybe other down what and the

Conor Tierney

Yes.

the roughly I'll for thinking spend. fourth had but going QX the alluded item. probably half this of would R&D in bonuses, now. versus We a that's the cash part to be quarter, question earnings on timing issue. about first quarter, So because will I we just probably higher first some the and be just of in onetime paid there's right to of general, expense, Those is out the kind answer slightly is say, in the our If we're about cash a call.

we're spend about So normalized is talking of probably XX% OpEx number. roughly a about that overall the

Matthew Fisch

future question table spend series briefly. Look, formal is got quarter B here I'll hard on we've for for ramping take production stakes quoting a the samples. automotive. good our This

seeing of and enabling But going we're focus and a customer our more more So us. integration. it's for towards engineering big

right So activities. on we're go-to-market weighted heavily now, Apollo still

to starting are at look next. what's We

is. next in But us biggest is integration we're shift what seeing step the side. go-to-market activities the this challenging area, For NVIDIA and work is in example, on customer the

Casey Ryan

question. ask I'll to too And one be then not last greedy,

and in feel China, you're guys vendors are welcome and vice to much like China, of that accurate significant pursuing be seem activity Tell the geographically do have where right, are of to fluid, in more if regions across for sort participating lot of be more a me opportunities perception You in reason. feels most of you that versa. like is sort some don't seem of sort you whereas regionalized U.S., Europe, it meaning some the obviously, vendors

don't Some U.S. in Chinese participating seem vendors over the to be

Matthew Fisch

Yes.

think I a great it's observation.

to is or and right? manufacturing manufacturing It right? the X in Mexico philosophy partnerships, a Tier in or for way, can core our do who, with We Texas scale partnership, through Our global footprint, by starts expand in Taiwan, example. has

China. our manufacturing So with -- and LighTekton us ATI local and partnership in gives

So and us #X, needed, like partner engineering and globe. piece upgrades, global this manufacturing partner stretch have China, a the legs, felt second with problems, well. And we in again, global a in region one longer like as partner got with the to feel partner and covers critical, that, manufacturing which partners way, right? One China, software and capability us, By the then like we've right, with in the the then also the you're can lot. in we are that on that has lot across allow Germany is is ground, things When that are boots

So the working answer by and not everything is through do it we trying yes. partnerships to ourselves. And do

Operator

from Your of the Sobelson next line Jesse Boral comes D. question with Capital.

Jesse Sobelson

Congrats NVIDIA. on with and the approval Hyperion

negotiations could be $XXX see what near these historical pricing the the pricing to medium OEMs, per unit. in term? been with cost, Where One a what's on going lot the Sounds contention low talking as curious really total as unit there's lidar multiple to So in the and you right? in with maybe space, a lot anywhere there's over all on per thing landing $X,XXX of the is OEMs, package from competitors with in do exciting. I'm of variability solution

Matthew Fisch

be highway, but to the lower not have right? to this many being very in needed that to bit below volumes, range. seeing because billion say, again, sales OEMs, performance space -- function things placing competitive they may other of what cost, chain price-wise supply command multibillion has fact Yes. for performing on next-generation that seeing want to pattern this But to the chain premium is to it incredible $X,XXX a device, price, inherently about to not lidar, speak be highway. speed across it's lower going that because that kind we're Tier let's that's we're sales we're leverage. supply about when okay, great driving be or partnered many to That X talking vehicle to that tough give generation, At means in an volumes, they're have at the looking like the to rolls going going for think we're well going regard. that's to lines again, the on reductions cost, And for the $X And and got on we're the We've we this, the the we're it's selling they're components can it's looking in Tier typically, that X be our going if OEMs, with have on you're scale, at be price. that message which high on because but product a Look, unbelievably because partner just has And lines The the is $XXX out to beat. architecture I next to going of at OEMs the orders okay? Look, not that a consistent leverage. we're careful depend with $XXX pricing.

Jesse Sobelson

And be shipments the Apollo-B auto the of the timing would other timing personal guided on curious, side, like auto expecting ramp a thing with models you from today to what then materiality basis? the the future I'm in ever a that and to you're any on have commercialization just

Conor Tierney

Yes.

We guidance haven't given long-term out typically.

think stay that's tuned to So I something on.

to go right don't into we're now. prepared think So that I

Matthew Fisch

say years. I I awarded, it's the is development can contract cycle automotive is there's to X a think once X what

Jesse Sobelson

on Congrats quarter. good a

Operator

call for that back I CEO, over Matt Q&A AEye's Fisch. the And to our go turn session today. now ahead. Please concludes will

Matthew Fisch

you, today. you, further to forward our updates great a day. Thank call on providing joining Thank progress Thank first you. operator. Have in our for We again quarter call. Great. our all, look

Operator

joining. concludes gentlemen, you Thank all for call. today's that and Ladies

You day, Have disconnect. everyone. a may now nice

AEye (LIDR) 20 Feb 252024 Q4 Earnings call transcript