INVZ - Earnings call transcript Q1 2024 | Innoviz Technologies Ltd.

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Operator

Good morning. I would like to welcome you to our Q1 2024 earnings conference call.

Joining us today are Omer Keilaf, Chief Executive Officer; and Eldar Cegla, Chief Financial Officer.

Following the opening remarks, we will open the call to your questions. I would like to remind everyone that this call is being recorded and will be available on the Investor Relations section of our website at ir.innoviz.tech.

future would include remind subject forward-looking and relating I discussion that to begin, future uncertainties will the today statements to we like of you to our risks financial Before performance and Innoviz. events that are differ could anticipated those from statements. in materially forward-looking results Actual the

Forward-looking expectations or of revise speak today, to and our today statements obligation update to we publicly made only as undertake no them.

any to forward-looking important risk please factors could differ discussion materially Factors a results from the SEC Risk Form of some the XXXX.Omer, on For our March XX-F statements, with cause see that of XX, actual section please. filed

Omer Keilaf

Thank you, for you Thank morning, Maya, and everyone. joining us. good

few of range RFI power teams programs. product these and quarter and last three-pronged partner expanded revenue made significant line and to the key XXXX range Beginning year RFQ technology of start to million and platform. First $X.X made to quarter of technology we customers, of growing develop I'll and multiple activity customers. meet We from focused strong our to the results significant and $X partners was build quarter. Korea, to Meanwhile, progress been delivered demonstrate consecutive and updates. $X also NREs, million on our on for a our fiscal continue provided with a our with across quarter, globally potential above the million guidance once a potential the pivot top combination our with in our super to relationships commitment Japan, shipments, now in for line traveling on continuing up test second with RFQs $X our supporting this our streams. Europe and with U.S. best-in-class we've to again, existing future achieved realignment customer approach performance. million, the strategic revenues Driven for guidance QX progress Innoviz. revenues team busy China, of full customers. and samples throughout new The We had in provide to another our by above We

As showed to experience the feedback we user Germany, BMW and coming last iX we quarter, BMW has share weeks. in in expect launched the

While our allowing believe other Level reached LiDAR as have pure-play company are on X, to today, SOP LiDARs reach we the software. perception companies we X that already and Level road with LiDAR using with the SOP vehicles of only

BMW China. continued During software development on to Series vehicles the InnovizOne specific we in deployment quarter, X supporting of the

to continue performing the use once to we believe X saw as to catalyst are reaction Level and what teams, the specific Magna the China we We Level EVs. the will testing be closely unrolled which Chinese the are a and market. with to We the approves see X accelerate of move with in autonomy, working BMW China autonomy, LiDARs towards similar happen

have fact, in In seven XX across including local testing licenses brands, Volkswagen. and least Level BMW, locations Chin. global X With at

brands, VW award we series on Level Cariad based high-volume different X passenger XXXX program secured As platform. you production is which for know, for a a in vehicle Qualcomm

commercial X also commercial LiDAR We light will vehicle I'm Mobileye significant within an opportunities Group Buzz are shipments, actively expansions. our program. yet This program our with and collaboration quarters, expansion three with will with through fund working we discussions previous In in parallel, the XXXX. progress another we is long-range in to we Volkswagen efforts sample additional Group opportunities I are additional with volume a pleased addition ID. time be to vehicle that to high-volume launch planned on disclosed the mentioned. which per share discussed on exciting In ramp-up. VW just new on previously to Group X add opportunities that Group. Volkswagen Meanwhile, the Level help several for Level It may the platforms more program working a line. similar with and volume continue additional with second development VW program multiple our we

during the customer Regarding quarter, announced another Mobileye, our Mobileye with win Volkswagen. [indiscernible]

Their Specifically, offer to that their for also ride into self-driving new Volkswagen the were heading to ID. will implementation chauffeur the that XX. they Buzz for goal to they Level announced and platform. Level for drive functions bring ID. certain X they hardware X announced platform production-ready supply the production Mobileye vehicles series services Buzz. is software

Group. with both and relationship Mobileye close a have Volkswagen We

already through relationship. us allows mentioned are additional Buzz partners our program, of deepen program the integrated X opportunities earlier. Overall, see Level into key platforms customers which Our pleased are of into as the of faster one key their integration believe ID. to we their our one and both products we such

see we Buzz are long to as the the and for Mobileye ID. Level platform X the potential runways the both and program, the we for said I earlier, and continue VW with We program. working are with with Volkswagen And additional Mobileye. Cariad platform for working Qualcomm growth Group

from and would RFQs our for these RFI our with We OEMs in several across collaboration present with we are hopeful working I pipeline. making our opportunity now on I'll update We our additional that NVIDIA-based pipeline. these and And with to NVIDIA are progress like would that touch believe growth programs NVIDIA, expansion. are and with OEMs. another that and on collaboration we collaborations RFQ OEMs other also will benefit we on

passenger pipeline is are Most very about are we Level of pipeline XX XX% the in the of X Our active, is share to mature to happy continuing our that XX stage. and RFQ to programs vehicles. I'm these in pipeline.

programs shared decision global XXXX. X X were potential deepening existing because while towards where deployment customers. quarter, with a customers Level were lines relationships with the are working additional of We there we pushed programs for time new Last that into

these position work RFQs. to our OEMs continue these and within in We are closely with confident

to well working during hailing opportunities lot the Level spaces we X about. progressed be in the that Certainly, leading Those various opportunities, to there to a quarter. excited OEMs. with opportunities with the two the Level highlight like addition in Level are are In trucking ride we companies is pipeline and would X platform X two

capture potential opportunities, we're for existing we each expansion strategy a now execute with together the with the we confident with are have few I'll an NREs. This remainder cash with quoting business share on to recent one, an new window. whether significant quoting, of of or LiDAR a observations within it's we hand, program customer new Importantly, these potential the our in is because ability our market feel on the sector.

seeing progress with we and platforms are We various problems. are as continuous very optimistic

S&P scanners believe LiDAR be As Research or a of across They LiDAR million we number market. a the of percentage by automotive to than that according the also that are in XXXX. in various a meaningful be autonomy expected scanners, XX be approximately levels vehicles expect double to more XXXX the result, the XXXX market end, in to [indiscernible] globally in sold Global will sold To that.

XXXX. automatic standard is U.S. our standardizes and of Administration, development. vehicle a emergency automatically is requirement daylight a It to announced pivoting new adopts September light crucial compliance crash which to as fact Now include with emergency here both about to What have safety publication a in is rule Highway vehicle the recent new and vehicles motor pedestrian is all the braking end new NHTSA NHTSA feature. a industry will by This braking system National vehicle dark injuries require prevent of and that safety At intended breaking that last requirements to Safety will Traffic the pedestrian of or imminent. lives another highlight important the save testing systems, conditions. when month,

As commentary in that part radar-based Institute any front believe and entire could position in capabilities objects raises our only automotive of about for move we darkest on OEMs We the optimistic pedestrian sensors with opportunities conditions, as detect emergency Highway Automatic future camera requirement received and vehicle, fail braking new NHTSA, we standards, meet probably industry stated every many by by found for that to that detect of LiDAR. Safety capabilities instance features, provide lighting other emergency to new to capitalize successfully weather supported its will the and braking to systems which system Insurance use coalition the and to the technical the LiDAR the be to and conditions. pedestrian. work to are this in regulations comply believe implement OEMs of ourselves LiDAR. ability Innoviz, At in will

our our with latest the Now B-Sample winter AI and Computer Europe. software ASIC testing moving in second-generation InnovizTwo to from custom the update our of Vision

insights be in rain, the The by only applications demonstrating is InnovizTwo able reaching being weather believe different to driving this and reached safely our this data hardware software AI-backed competitive the for conditions strenuous for As of accumulated blockages, could harshest that well-developed its milestone key and across results used robustness we and spent testing most improve a technologies in are dirt. us perform the and in and InnovizTwo the testing recently effectively during our resilience free and a to countries, grade completed test is in team the winter reliability proprietary testing. conditions. to supported We distinct Innoviz's successfully we snow the design solutions. InnovizTwo. automotive days stage of showed XX announced, mature the industry. The destiny. XX winter for and winter technology We such potential are including believe advantage maturity, approaching of as after

we've completion advanced challenging for producer. component hurdle With that the any testing, the overcome automotive winter is of big successful a

want this touch quarter. realignment well. on operations technology our announced on I we've move our to will shortly more provide Eldar the the of excited are on briefly next last the to as of color development. stage We progress to strategic made

of are As and of realignment line of height integrated as plan. into sensors part long-range, software investment the sensor the our InnovizTwo as the in of perception as have and a of such combined trucks In initiatives units as hardware our development well our and software and and department. the lower development implemented all behind reduced our nearly configurations range savings the InnovizTwo we We've implementation of the Level we for the InnovizOne This includes windshield plan, the of and development different the with X also [indiscernible]. InnovizTwo, short today, of our platform. reallocating our R&D at

first the guidance cash our Taken to of quarter in the compared of together, burn we a for with up XXXX. XXXX.Wrapping second delivered quarter decrease

revenue As of we quarterly providing guidance a are revenue guidance. reminder, instead [regularly] annual

$X quarter in to $X million second range XXXX. expect $X.X of of the We revenue million million compared to XXXX QX for

more continue fill expect and to half based customer back to be weighted activity. full XXXX We revenues on year channel

to typical to two $XX guided million existing expect also NRE additional we million and due continued XXXX. will from customers We were lumpiness cadence also new to to there of in both of the be in Last three bookings quarter, new NREs. $XX programs

the And meet on are strong targets momentum Eldar call year our our the to continue start track Given fiscal pipeline, we with those to to this believe year. our to and financials. we we are building XXXX I'll over that, review QX turn the to that in

Eldar Cegla

everyone. cash you, QX million with morning, we in and sheet. approximately Thank restricted cash Starting on with equivalents, securities, $XXX deposits, short-term and ended and cash balance Omer, marketable good XXXX cash the bank

our are million million continued in used the pipeline revenue With in capital in RFI serious our all QX quoting QX mentioned, 'XX. $XX achieved cash at expenditure burn cash in coming InnovizOne decreased now efficiencies level bidding a Omer And to our As realignment InnovizTwo $XX from and and platform. compared plus RFQ on operational and with performance to focused of operations production, in led to activities compared solid XXXX.

the As demonstrate windows, level a efficient have the realignment we in of appropriate company, about talk evolving we remain has you heard Innoviz to made needs. capture platform. more we laser-focused in we on are this past, critical are can customer market meet maintaining and flexibility the us The InnovizTwo

statement. income in $X significant delivering. million, financial we XX% range. Revenues $X.X positive increase XXXX This of demonstrating are the guidance XXXX our million, is QX which higher were compared is to Moving QX trajectory the a revenue approximately than to

QX X% from were Our for million XXXX a in QX of XXXX. $XX.X operating million, $XX.X decrease expenses

million compared compared in XXXX. million XXXX. $XX.X $X.X XXXX included QX to This share-based of XXXX. were attributable $X.X quarter's quarter's and Research in $X.X $X.X expenses operating for share-based included from to The QX million compensation compensation QX million, expenses $XX.X to million in million a development R&D QX expenses decrease

see, can decreased of levels have you operating and expenses. R&D As we maintained

the And competitive healthy that, back positioning with cash moving of expect coming expenses organization optimizing to open our We we keep our in up efficient strength call to the position. are before by levels summarize, while continued Q&A. these remain at of the the an forward, maintaining with financial for will Omer a disciplined I goal our To performance months. we run hand it and pleased and we

Omer Keilaf

you, Thank Eldar.

brings EcoMotion I at the Xth Before on pleased June. conclude, Assembly Innoviz across Community towards selected from many Innoviz's conference an together and auto the that ahead to share host mobility. learn, ecosystem shaping share to global technology OEMs, was the mobility headquarters The the future of technology Israel that in hosted to is look companies and the by I'm of and developments EcoMotion Assembly knowledge EcoMotion auto

We forward strengthening us. ecosystem. and to the website to for additional wrap to this encourage host international conference that are year honored We To EcoMotion information look this you my mobility up prestigious support join continuing will visit remarks. to hope you and the

potential Innoviz many in productive quarter and and heard, engagements regions. different you've As existing busy was customers QX for with another with

the the more and a believe programs, look forward positioned place middle second quarter, LiDAR are leading that the we programs advance to already win are and capture as we opportunities We market We updates going our additional different we and during to sharing phase. customers supplier are our partners of cement across well to and in forward. continuing positive with

to appreciate it to the new increasingly various growing perception positioning from the capital We the comes understands the market with coming will with operator, reflect turn across of importance tailwinds that, the then markets by requirements. And LiDAR Q&A. opportunity. that the believe and this As sector sector's LiDAR on regulatory the of applications

Operator

from Mark of of Delaney the Our Instructions] go Please Thank line comes you. ahead. Goldman Sachs. question today first [Operator

Mark Delaney

to shifted confidence year. the Moreover, [Is wins Innoviz I'm how realized it] there? hoping programs at reiterated change progressing you in please speak company on way, with for this many is it Yes. commentary opportunities the getting be Could of winning Innoviz opportunities? The goal if of what more details applications. its what award consumer to two your on of all? given LX LX? expects your understand expansion for LX ADAS more LX I'd to of win this need better to RFQ about key this opportunities win and RFQ to to types more Or the its thought and year I three like may potential for an you happen in has were ADAS another for is as have could programs

Omer Keilaf

to No, joining start Thank last question. us. you, Martin. Thanks for actually, with the I want

we're wanted opportunities because those We made And in actually them are quarter. X highlight, to surprise significant And highlighting we things progress happen. the last very Level not the expecting in to when to a convert. way, might

and Let where we most Level of most RFI most pipeline on said, see activity. of focused -- us the of RFQ our are as X, that's -- and we

in will It's to many Mobileye within are year, terms expected we're of opportunities the X. Level talked group happy In can. supporting happy obviously, process big discussions to to allow there them process, early are actually we us us two as program as are with What in are to programs we're to and those for additional quite opportunities the very VW the that to really by and converge and end we needs which this year, design additional two just the how that to get with happen another than into, It's see X customers to very expected still talked this the basically that so with related order were as that, of about opportunity three we're they very growth. last And in other opportunities VW other still I a conclude we it's that. program we a manufacturing, about about many to working provide VW. said closely. converge order step customers offer can And But Level so exciting for we volumes. that the to

Mark Delaney

for? to the months what other year. converting of better over has expectations you're success NRE helpful. And question the this opportunities next for flow X bookings XX My would if That's your guiding to happen use company to was on some cash understand those cash

Eldar Cegla

realignment completed So program. we our have

see we in to see expenditure are available even from cost on next to expect mentioned, the cash to better as similar benefits to We if until now saw we months. the reduction. the I we to what few maybe show and expecting And some be this are that

So, additional And our secure have we able on before, said to all order as year, in disciplined, that execute all, have hands I and or obviously, in this would be planned. hopefully and keep the capture expect the be as on the we wins. to we we and we enough use very opportunity plans will strategic will budget to our I able market

Omer Keilaf

But interesting. something can that by add way, the you maybe I might find

longer. those of some taking are While decisions

Some allow programs. of order we we're asked are our the that in on to any them coming those work collect in to from that continue working programs are to support to NREs able not delay

Operator

Our line question today from of next of Cantor. Andres Sheppard comes the

Andres Sheppard-Slinger

congratulations sure the Eldar Volkswagen, taking Omer, wanted again OEM near just time time of for and maybe our the term. Great the the and ramp-up just Robotaxis? changed some maybe what being then to confirm or revenues confirm on just the Obviously, BMW Hey those just can in for the quick. Asian to you line for maybe if wanted us But remind afternoon. wanted you good in to those and both to is the -- real I have see line OEM quarter, your hey thanks not more Just both agreements. questions.

Omer Keilaf

and communicated, we're would get wild product the We We're only see managed SOP excited that line definite company to insight obviously by X didn't one launch our each already I Obviously, customer to the, gave and communicated were program. get for give expecting only the pure-play that those from out on a in the for was time more the being separately. say, LiDAR So deployment to ground. already from we of BMW Level a feedback the online. to

significant it's category. think for this very I us in a milestone as company company, a as leading a

as of we We for line time line a terms the In ID. program. lines time about for the disclose time rest. additional didn't X for VW, which XXXX the Level had the Buzz, talked similar

Andres Sheppard-Slinger

does positive think Eldar. it's to you appreciate but and that. the for a we curious maybe volume, like? gross this you I path for share. obviously, expect like it that than Maybe to a of can be combination margins, the lower OpEx CapEx understand, looks should pertains number now color a last QX year significantly As year? CapEx, realignment? look even How margins, was what some year. on just I question about gross just And lastly, have that margins gross lower is quarter should last we given then little And just then OpEx, -- the than it lower if the bit or to maybe this

Just year that curious think this as how for we about should well.

Eldar Cegla

obviously, OpEx I'm the expecting So realignment expenditure. our impacting

this for year. So, part this project definitely would of we is what

a gross comes our In of at margins, margins. NRE positively part affecting significant Innoviz are revenues terms NRE from of and our

we are more So, expecting and as we And I'm sure contribution NREs. NREs margins what positive to we-- to gain have additional not gross additional and more our

Andres Sheppard-Slinger

last the CapEx one.

Eldar Cegla

stable. be will CapEx

year CapEx year we not expecting are are increase We this from CapEx a for as last light. relatively huge or

We using contract manufacturers. are

So this should stable. be

Omer Keilaf

be existing mentioned, to separately. that one and the very serve with facilities CapEx, with flexible for them customers want to allowing strategy able also the -- grade, us automotive each strong from investment a us faster contract us locations to has Eldar as be get with contract working but market. right manufacturing making to already allowed expertise with different been without It as huge different partners Our are the us. save on very to to related who with manufacturers Working

Andres Sheppard-Slinger

And last than clarify, you you CapEx flat that to year this just expect or year is to so said be lower --

Eldar Cegla

No, it's similar.

Operator

go the Our Cassidy of next line Rosenblatt Securities. comes from Kevin question today of ahead. Please

Kevin Cassidy

the on Congratulations results.

Safety so the today, you're emergency braking, automatic VW, in new ruling Highway BMW from the would National those would cars and Administration, for the the Transportation qualify? Just that

Omer Keilaf

functionality in of Obviously, enables lighting conditions Definitely. different use the and LiDAR this weather conditions. with

fulfill -- So definitely, the it should needs. supply

Kevin Cassidy

ruling countries? So do into type other see moving you this of

Omer Keilaf

I believe new also that that's see rolling features. expect to a on I'll growing trend new

that's I the using is technologies think to accidents proof basically, I'm rulings accidents can car that already avoided the the and here. there's And and unnecessary of improve. sure be related that that need for that to continue. Eventually the capabilities. life-saving is available. are sure reduce something why I And those desire will believe improve a we're challenges that to that benefit technologies I'm only no continue would of

Kevin Cassidy

March break NRE with out you June? can to production? for $X.X the for And million the revenue outlook from And for for same you your

Eldar Cegla

significant for we numbers NRE. of components didn't Magna So a priority and Three are it significant break the of part with significant We samples the But provide it year, NRE. NRE is consists the elements: are elements going down, forward. InnovizOne part BMW revenues, expectation which leading A, revenues. selling and that is in ever-growing three we of most that the is part this NREs, most this our our least at

Operator

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

Kevin Garrigan

Let progress. on me the my echo congrats

test, the completed successful you guys lot more the On interest did OEMs get after from a test? you winter

Omer Keilaf

would is results [applauded]. I customers show we're say to think that able the getting, that to I

challenges the into might extreme those conditions. are go that aware of much when you happen We very

a I going time. of a conditions in through, challenging many very show being interest. like winter have LiDAR lot not that task being think that of a in through those positive I'm complex we're even way, on able a start system tests definitely these testing and others results get the able aware very to such is challenges to sensitive gone

that actually to is winter. mean the think of that meet winter -- you need to being of I us able go I challenges one testing

to I again, when And dirt that such if one super the program come And your need that, I LiDARs key a drop meet that blockages. line there by the that able is And winter I go not that blockage a summer. snow, don't sometimes and can't emphasized is even think might Whenever you aware into successfully think people do the You that being of is from issues testing, I earlier, to as conditions miss delayed in the that time important. to with do water. year. another wait be because of are on you challenge. on mentioned can year

even view, the field needs Some completely it's and anything invalids And partially take that of if system. their might that the in the of control blocked happen. that LiDARs for to those times, low If might system availability situations, means the means be driver it very poor the back driver it whereas a experience. highly probability to of availability is it's needs sensitive to many Level statistically engage X that very is the at and means user it too

them is quite our will remarkable, that give in work window the our of system those you. very give them to LiDAR the happy XX% availability well in covered any almost our even very holes to conditions. visibility good we're are XX% and high still of in without ability these provide understanding conditions things field using very It's by that and customers -- Our to very the show those to and when

help think year. forward us something that definitely this I it's going will

Kevin Garrigan

can of towards RFQs? give On and Are of ICE sense programs a within kind platforms to the XX question, that more XX separate geared are breakdown the you and kind between of a of electric EVs vehicles? us guys those most RFIs

Omer Keilaf

there don't is those programs. bucket any in I think major

or combustion system or the if engine very course, driving, which Of type EV. is to it's agnostic of

customers, car them a of our I that don't another. some clear programs with them which some have And don't definitely, the you care we specifically already with is there majority of And between really are EVs. used. or very one are is think So combustion,

Operator

for our proceed. does today. session That Please question-and-answer conclude

Omer Keilaf

share forward update. everyone. very with the very Thank next to Thank you much, our much. look quarter you you to We

Innoviz Technologies (INVZ) 8 May 242024 Q1 Earnings call transcript