INDI - Earnings call transcript Q3 2021 | indie Semiconductor, Inc.

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Operator

Good afternoon, everyone. And welcome to indie Semiconductor’s Third Quarter 2021 Earnings Call. This call is being recorded. At this time, I will turn the call over to Pilar Barrigas, Head of Global Corporate Communications for indie. Ms. ahead. go please Barrigas,

Pilar Barrigas

Good XXXX And earnings operator. Semiconductor’s to third quarter call. afternoon, you, welcome everyone. indie Thank

risks Joining based me of Please quarter today highlights relied to These views as of CEO; be materially provide and differ subject indie’s cause uncertainties. representative are are will remarks note from These Donald today, variety on McClymont, Schiller, opening our which forward-looking assumptions, results by expectations. making CFO subsequent statements that from indie’s and views the reflect and only indie’s a could to actual third quarter, we and of statements and expectations Tom's discuss quarter results outlook. EVP and Strategy. date. about subject current followed any will of should Tom upon risks Donald to statements of are business Co-Founder review that as and and not be as fourth and uncertainties

the other statement filed on to SEC. and material and the registration our recent For refer further other public our our risks risk please that discussion important could Form our results, and with of factors financial affect reports factors S-X

discussed measures. based today and certain non-GAAP on financial Additionally, results the guidance are

indiesemi.com. For Donald. that, press this to issued at our in on I'll reconciliation call found over GAAP, advance turn call and QX a With complete release, please website see our of to the earnings which was can be

Donald McClymont

public completed June discuss since the everyone. this months I'm company strategic few and welcome report a have strong of debut results Thanks, to in as in our year. the Pilar, our quarterly initiatives we pleased and short

vision and realizing XXXX, expectations indie the made well becoming software across semiconductor line For bottom and our the significant Autotech. provider as strides solutions quarter exceeded both as of top towards of third

our key billion, product no environment, Automakers million. At strategic challenging exited outpaced indie down debt and from investment grew margin the in of scale quarter $X.X towards the and that year-over-year trends. our a and to expanded the million is we revenue powerful mega are quarter, strategic up the vehicles to in We investments doubled a billion higher in enhance updated supply last virtually stages features record and addressable center experience in chain and $XX with markets $XXX safety sequentially the gross usher during a Specifically in electrification backlog user of clearly industry large will areas, early in autonomy. next-generation level, $X several widespread at and year. cash increased

to represents entry-level today as rate is automotive to today. result, content sales increasingly IHS, market an anticipated systems to car regulatory reach XXXX is $XX up market to Systems the functions expected As XX% collision the are at and vehicles is Driver as agencies. avoidance by billion vehicle, features models In to of addressable semiconductor $X,XXX down XX%. about standard from a growth in reach per level from grow the $XX timeframe early cascade expected on Advanced park-assist, XXXX, billion Assistance pace to $XX rapidly of exceed compound mandated year. per XXXX flagship to semiconductor warning to or of over this become billion per in to served and annual is particular, same expected increase time $XX billion growing global Xx a indie’s According average Meanwhile, by and

in-cabin ambient seeing data strengthening spaces connectivity, Additionally, active demand. lighting, integration indie wireless charging, products, already is and where are telematics

particular, the to and architectures to changes vehicles dramatic as The indie industry increase in automotive market enormous drive in latest highly of intensifying our needs these technologies embedded and will and electronic step factors are going required these electrification performance software. and in semiconductors Today, future the indie’s create electronic forward. directly advanced function expected integration answering integrated require for autonomous vehicles applications customers. signal for by of All mixed are opportunities semiconductor a

how at capabilities our we Our expanded roadmaps, a extend premier breadth, and of vehicles that devices supplier third next our and we are a accelerate secured technical same design time, are the substantially during and indie’s demonstrates At reach park-assist lighting strategically capitalizing our provider for ramped on quarter opportunity. end, ADAS this ultrasound and global user IP automotive portfolio. outperformance electric adding of connectivity with bolster in the QX, to systems, footprint for our sockets augment power the applications. of delivery experience we innovative production early captured automotive advanced generation product market Further and German with teams to innings leader, designs

subsequently our we solutions closed LiDAR and of a laser executed applications. purchase complementary adding autonomous TeraXion, for vehicle acquisition ADAS agreement on First,

our magnitude accelerate critical of of excited we are optimized role leverage both LiDAR maximum to system in SoC facilitate the will market achieving platforms. in assisted indie performance plays and cars, Given to safety leadership deployment of for improvements with and on LiDAR position levels mass laser order technologies solutions, when self-driving that, cost in together turn TeraXion’s

as Phoenix, growing accelerate Second, Haifa, QX of anticipate Devices’ as entry automotive domain strong engineers measurement applications. radar our technologies millimeter applications this we the by vehicle real-time and sensor detection strong patents third, incredibly large our in precision sensor recently our ADAS Israel teams system highly underpinned XX complimentary level we And augment and significantly together support expertise confirms and market. in high have applications. global expands design to market, bring Symeo software radar along radar these XXX position with radar we and on XXXX, announced and Bringing capability radar acqui-hired Symeo’s our for enables solutions. industry-leading who a and technology velocity skilled patents latter expertise Upon to and modality and with of this wave Arizona, will intent autonomous transaction well in team two and commitment to further division. radar our closing, related be acquire Analog which into

time by automotive radar $X.X reach billion global the to expected XXXX. With

We to are welcome design thrilled both teams.

perception to system We announced demonstrated our edge the of the formation solutions millions bringing expand at performance success two of business compute perception and vision and leverage experience decades. quality the processing unit plan extraordinary to already to best with in industry processing. we silicon, proven last market lowest This led to dedicated power enabled has and the cost, over veterans software based capabilities. devices their Finally, vision team VisionQ processing vision the footprint, redefining create high differentiated the by

indie turn of call modalities design Autotech of is advanced and customer’s over discussion footprint now to continuing QX Tom for result, one-stop radar, we and and the existing create to and on as uniquely capitalize to expanding vision, while lines LiDAR, drive a opportunity our product As our I’ll ultrasound shop results a QX better even roadmaps to our all sensor now serve including equipped for needs. our geographic outlook. the development

Tom Schiller

$XX.X were to quarter. Thanks, Revenue experience a million our product Likewise, increased the XX ramps strong we quarter, line expand profit public our points XX% and record share and the million $XX.X posting increased loss up investments up versus to Operating loss we prior solutions. to Donald. taxes Interest, company million again, to a June performance per was for was near were capabilities zero, analysts’ of gross XX% spending the million expenses of to $XX.X results quarter, loss into of $X.XX. and net accelerate of bottom development. year-over-year $XX.X indie top our delivered and R&D and million analyst XX% ADAS, third versus by Gross other expectations. connectivity million basis loss. $XX.X in our $XX.X margin driven $XX.X translating was from and infrastructure. million expenses $X.X ahead innovative user Operating consensus yielding SG&A in the once sequentially million, marketing a a implement as estimate million $X.X

to the balance sheet. Turning

merger During liabilities and the accrued our million $XXX debt. settled no remaining with and exited QX in quarter, cash virtually we related

Now our XXXX outlook. to QX

is of $XX We expansion with our fourth sequentially solutions acquisition, partial recently to record margin annualized SG&A. to Given line to XX% run With We more revenue revenue global double and Autotech approximately up and XXXX. rate strong point on is with and of sustained quarter revenue quarter basis in this closed for million top outperformance includes pace TeraXion capitalizing demand the total is $X.X XXX% million now indie outlined, $XX gross year-over-year. and in which indie for XXX than XX% of a than dynamics in up the approaching further million anticipate expenses a revenue. million guidance, set on more $XX.X deliver R&D quarter anticipate fourth Donald a operating comprised

stock net other and demand response and As assuming approximately from includes line pent sales a which outstanding, we TeraXion performance, X no product earn-out Accordingly, the acquisition given approximately investment shares shares the plus million or our of customer increase in we marketing and million net to price our extend our share. loss $X.XX taxes per XXX below reach. expect development million up X.X shares expense

target to the I’ll our on trajectory closing operating backlog, Donald business over his strategic gross demonstrate value. note, and On to steep momentum for it the most our long-term XX% leverage, Finally, perhaps well importantly, is to shareholder and turn based model maintain and indie turn expand positioned margin back comments. coming growth in create years, that

Donald McClymont

place is indie Autotech disruptive across Thanks, taking sector. at summarize, of Tom. To forefront the the changes

our of vision the realizing opportunities investments on of ahead solutions software make leading provider continue sensor necessary semiconductor the the becoming to are level to modalities major We steps taking will and best for capitalize toward and enormous us. multiple required

creating highly open vehicles comprehensive, prepared call We’re generation true unleash laser advancing customers needs fulfill systems for in-cabin solutions remarks. expedience. Operator, and to That that integrated driver interfaces short, assistance the our of the addressing today. driving, enabling enable architectures help In let’s ultimately and while user simultaneously cost-effective our enhance promise to focused tomorrow’s differentiated Q&A. platforms, autonomous the on customer’s enabling will next and concludes our are our

Operator

Thank Instructions] Craig Riley. your you. comes with [Operator from Ellis B. first And question

go Please open. is line Your ahead.

Craig Ellis

first strong guys. customer the ADAS and a the How higher really the see customers you’re direct breadth it’s question impacting taking Thanks opportunities with the the and having on Yes. and I you really your realm? for congratulations to the they with performance regarding across see interaction question things you and acquisitions Donald, two Symeo. for in level after to announcing wanted that output the you TeraXion opportunity is the one, and that base question of that

Donald McClymont

shop been but had of able our now to were feedback open eyes excited the offer combination Yes. Thanks and overwhelmingly Craig. them technologies, SOC already case customers who positive TeraXion, to with of materials what we the and more excited we’re that’s bill of type of the has one-stop this It’s of Greenfield beforehand, of entrance that environment. I in their something sort the for microwave technologies and signal laser addition velocity and the of the has Symeo fact The more simply mixed the large it’s the mean, mentioned engagements kind where increased. at of extremely that RF for designers, a certainly and With us as in technologies market. the we the of hungry new market point. opens extremely new remarks, an additional

So yes, are believe and customers excited excited our I really very we’re too.

Craig Ellis

an expansion believe, in to you and talk long-term backlog. quarter? about that are what And seeing spoke the the drove press specifically more release, you that Can in that? I Where the expansion

Donald McClymont

announcement almost actually, our an of the update, of time since combination of pack a is which combination. backlog Well passing gave worth year’s last this was I time around we mean, of a

really prepared in is about lighting we of The the win to clear, If So call sensing the our earnings last addition which design the driving, the evenly in talked out three and future. a remarks user key I of E-vehicle TeraXion which design spread combination are about and and platform which quarter’s of revenue, areas wins, that things large the of course, across enable one focus many electrification. work of are the experience ADAS win, it’s we drivers. which to speaks here autonomous the could fairly indeed in of a on amount the three across talked LiDAR

Operator

you. Thank

with the from Deutsche comes Ross question line of next Our Bank. Seymore

Your ahead. line Please is open. go

Ross Seymore

to you Donald, doing congratulations. Hi, the job. great echo are wanted a I guys. guys

M&A a go doing You the great going foreseeable them. level, front deals puzzle of is I the on you you that guys just the address think you job announced, wondered pieces your executing a of want to to list pretty the only to the vast the the think do majority with from remain really not of in you future? business, high TAM do have or necessary long acquisitive really the are you after, for but also indie

Donald McClymont

We constellation the and more our with mean, happy plans to then very out interesting. there to can add we're now, ability areas add are address we that to we're bow adequate I many which some. that have that's that opportunities our right technology, mean, and and I indeed markets Well, groups new for of to like there new the already are our in execute in. strings place to than augment

the think I to the both. question yes, answer So is answer your fundamentally,

Ross Seymore

people question high well your successfully supply in are it. other growth, take question by the Got Well, situation, you. et navigating up revenue guess, the or running been shortages strongly, at follow But cetera. bigger will to navigate guys that for in share know, indirectly my able it and when some level impacting would either is I your numbers it a supply guys well are you where hitting you problems guiding you or very them be as and you are into mark industry look and auto anyway another Donald, big directly actually have

are how you hurting up it environment? generally, going that Is do seeing So you loosens and you it forward? think

Donald McClymont

we've number spite it'd of limited well. that met on We've Well, our of we've first hadn't numbers I growth the to mean, course, sold been added foremost, in respect. shown and far, this pretty because year able cars say a everything. it so steep fundamentally navigate trajectory was it to us that pretty on of be careless as

course wears XXXX. hand, other should there's through once the amount huge of situation that allocation that up release the pent demand, of off which means the On basically a

a can't more maybe I see anything through management people forward. quarters, strength should want into we If automotive mean, go see which would next made you to you mean, recently we're that area the as the going anything a the guys mean, off and I lot going cars. good I say of for demand two relieves pressure it be at for would will relent. us. valve, be such today, another changes. once least automotive fabs will in I little allocation XXXX. fundamentally And buy if space the go the had then would like semiconductors won't So, in allow still middle car we've available going we at process continue demand one. be turn if it's the would try to I and and a that situation buy need find that consumer, to least How to extremely to that tight change

Operator

turn the over you. Thank That call the concludes Q&A McClymont. session. I will now Donald to

Donald McClymont

forward meetings to Well, you with Look upcoming you thanks our everybody. see seeing and investor quarter. next

Operator

concludes for participation today's this at have disconnect your a day. Thank wonderful and you time. lines your conference, This and you may

indie Semiconductor (INDI) 11 Nov 212021 Q3 Earnings call transcript