INDI - Earnings call transcript Q1 2022 | indie Semiconductor, Inc.

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Operator

Good afternoon, and welcome to indie Semiconductor's First Quarter 2022 Earnings Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] At this time, I will turn the call over to Ashish Gupta, Investor Relations. Mr. ahead. go please Gupta,

Ashish Gupta

Good and and XXXX operator. Semiconductor's to First Quarter Earnings afternoon, you, welcome everyone, indie Thank Call.

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

of discussion and fiscal XXXX please that affect risk the risks further ended annual for public on XX, other For with filed year reports SEC. factors Form factors results, December to our report XX-K our refer our and other could the recent financial important in material

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

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

Don McClymont

for XXXX performance execution, our underpinned the a automotive with Indie’s in industry innovative to Building upon our Perhaps team, strengthening outpaced supply million, a during our particularly a for portfolio, revenue year revenue differentiated of first the our product our by gross the operational level team's XXX key that year-over-year sequentially. We And we we what testament is semiconductors outperformance, again and underlying property chain quarter, resiliency experience same delivered pleased pattern. addressable calendar increasing and report XXX margin our indie gained QX. grew of headwinds. broad-based face of year. record radar, most traction markets welcome, is by entire global indie, to basis basis is impressive strong is another demand record continued and $XX and across order expanded user and quarter the partnerships the in we points this I'm software, design approximately Specifically, a and applications. in win electrification XXXX everybody. start to delivered our Ashish, LiDAR, intellectual off to highly Thanks, once points our that

megatrains solutions industry to believe performance advanced and We complexity. as intensifying being approaches a indie a the major customers as function inflection in are demanding be beneficiary Our automotive market brought a step for major is Autotech point. to industry poised increase automotive are electronic

that target XXXX, The statistics road number leading of to Our In semiconductors through and at responsible meeting United XXXX million deaths Nations that's greater children local underscore teenagers particularly this X.X are and enough. accidents a a by the Stepping well differentiated and killers roughly and basis. has global urgent we what's national but that are UN one and set capabilities. December ADAS not report, and world year government suited million estimated onboard this actions, highly on the back put every of half stake for ambitious injuries around are to challenge. a These feel all context need here. software the over platforms XX for to the a

and leading to many of Assessment, enable associated the These with autonomous for software vehicles. systems, we're truly market applications Safe cost-effective the Further, Braking, means buyers UN's indie And mission we have uncrashable cars the all car indie's perfectly to about to Industry industry, Blind-Spot support semiconductor Book portfolio our at ultimately top Blue recent Exit As roadmaps. Kelley driver-monitoring bring integration. and passionate to technologies way Miller. Automatic according Assist, and an and Emergency ADAS, are, View existing automotive recommended aligned and Rear-view Monitor technologies product Video the XXX-degree camera, through

LiDAR their delighted have of support report, by During are DSP, functionality, early the engaged in mixed TeraXion phase sampling Surya launch, systems. associated Surya, MCU SoC, world-class signal, I'm commenced on of platform customers investing whom we our multiple already lasers and their augmented development to this quarter, based integrates that Analog, all firmware in LiDAR our and to which we technology. own

win implementation, us, capture which per enabling complementary to BOM, teams, the the LIDAR and discrete a less architectures. than a time, we RADAR up Surya the opportunity design same ON believe, is we For this recently ADI complete automotive will with design that global four market. the of suppliers the one $XXX is XX% secure Accordingly, At $XX top strategic acquired catalyze helped to current us in an world. from Semi

coming stage quarter, fact, single integrated capture largest setting to This additional history indie's design solutions for the all is, in of groups, to stage supplier for win we the years. two successfully development, similarly the indie the sets for these become billion-dollar us site the RADAR in our During progress in made programs. within and applications leading substantial the

integration, terms torque a experience, to but differentiating vehicles, be horsepower, in and of rather are for OEMs telemetry and smart features. Turning user wireless charging increasingly seamless not lighting, their

enabled more gaining of and share, is Core For example, in in and in most supported Technologies. on by CarPlay today, is continually vehicle cases, indie's Apple half new cars of hundreds than models available

a charging, vehicles. of Last customer turning design applications commenced expanded gears, overall XX% with EV quarter, pipeline were for Bard U.S. content Shifting in to leading the preproduction new charging Wireless key the our and During traditional truck win electric U.S. for concern captured we and one and sales. up prices to automotive rapid cars compared change, quarter, leading broader with Korean are climate oil of consumers XX% increasing for shipments global a OEMs. sales for rapidly and decline to rapidly the

with innovative need ubiquitous is user and within Said that to by for of In indie sees Vitesco, last be continue a Once added a way, rate permanent, wins to towards to towards led efficient our product higher with pull, shifts semiconductors XX% to next-generation electric expected Tier accelerate given cyclical and to to autonomy. more containing and from due driven to megatrend as tends major the should now demand the and five own be to vehicles year, increased far for up leading design an win vehicles. gas of our fact, trend to expect demand of a one automotive for EV beneficiary high portfolio in CarGurus shift power XX% according EV a industry years, quarter car attach switch compelling last automotive increasing largest higher from next software vehicles consumers February industry prices. response European by electrification enhanced an will of the and scorecard. where architectures. our the OEM, in as the electrification XX% an features factors, electric recent we Xs Along at Generally, well the long-term the structural and experience in another fuel-efficient vehicles, Americans electrification. more as electric, electric benefit performance make the safety economics this

direct car over to day average the a per grow result, decade. $X,XXX to As content just coming the semiconductor from expected is $XXX to

capitalize on to aligned well particularly trajectory. is growth content steep the portfolio product Our landscape and shifting

launching a in Finally, during the by quarter, Korea. strategic more reach market Japan presence we and both in extended our recently

While been Honda, underrepresented or we had any at not and we've at content historically have has Hyundai Nissan, and some at Subaru, footholds Toyota, Mazda indie Kia.

and of support technologies, vision a of Autotech the to entirely the expect our of now we automotive Tokyo technical we Seoul, empowering excellence ramp sales reports results our establishment Japan centers represent an support class launching integrated of indie highly forward and the discussion revolution. just markets of sites and to progress for customers and providing over now of particularly leading-edge call top we've the commensurately new With Tom in given to portfolio strategic is for massive outlook. corporate and turn Korea indie. this look across the I'll and opened in our global mandate, for

Tom Schiller

exceeding Thanks, quarter again results, Donald. our analyst indie and expectations. once guidance strong delivered first

up $XX million we to XXX a R&D guidance. Operating of XX% year-over-year against In our gross to sequentially elements and up period XXX% the consecutive XXX% $XX.X up translating record from $X.X last basis company our fact, the period to forecast our IPO points with million, prior XXX $XX quarter into and to year-over-year. our increased implement revenue post some XX.X% to QX $XX.X as fourth represents for final product of were and Gross versus margin, expand growth indie’s of million, we and million $XX.X guidance of at profit marketing spending million basis and was beating the versus our a for Likewise, out-performance be outlook SG&A expenses development. on capabilities million summer. points accelerated sequentially up investments XXX% XX% year-over-year public infrastructure. for plan was Revenue

loss million XXX.X loss estimates. also of other loss our $XX.X consensus Thus, shares. million on were As million, negligible. base and was of share a better operating $XX.X analyst result, expenses our net taxes than Interest, was a $X.XX a per with

to to balance carve-out, devices invested million in cash $XX the working similar analog with period Turning debt. limited for payment $XXX sheet. $XXX,XXX capital a and the and We our million made exiting in

customer forward outpace horizon. to Looking set markets product ramps launches, indie’s addressable strong order new forecast plan the over based visibility, and and on we sustainably

million and of range, $XX order revenue midpoint million greater to of are of quarter. Specifically, a for putting revenue the annualized for second than indie in At $XXX million, on XXX% $XX on anticipate the the this quarter we pace to XXX% to range on customer million growth XXXX, million our we SG&A another year-over-year pent-up particularly in the extend in and record we of increase globally. XX% $XX run expansion investments marketing the operating our rate. million response Further, to gross with and expenses, and as comprising capabilities $X margin demand, radar R&D in development range we expect in product in sales $XX

$X.XX expense million expect XXX and outstanding, approximately or a share. taxes no line net the Assuming below of shares other net loss per we

to positioned translate and the Donald capitalize outlined, design highly a uniquely Finally, is strategic indie into business our model. opportunity Autotech win profitable on momentum as

way step and our are I'll closing his for far growth representing as our a turn revenue of comments. of in XX% well on operating margins we to realizing path year, With XX% key outpaces the planned our Given XXXX. OpEx, leverage to visibility, next scalability the on to half reaching profitability operating by long-term Donald and back gross next indie's that, targets call back

Don McClymont

year QX their OEMs in outperformance announced over being worldwide plan from to committing entire experience IPO, indie billion and is semiconductor ahead. of including our as some passengers to particular, our we in-cabin couldn't transport last portfolio at years both by $XXX drivers XXXX. five deployed execute for summarize, stated electric to $XX and better strong the fundamentally to drive EV changing enhanced investments safety a demand automotive market exceed To amount that billion, business grow see the next $XX excited opportunities we as growth features be and are time. Tom. expected more will to Thanks, the shift the short billion global solutions, to we will that card multiyear as reflect, cases, tailwinds continuing The within and our In for about steeper and

enhance software save indie's help Operator, open to part expect concludes sensor experience in semiconductor the lives of our in next in-cabin our technologies differentiated remarks. and We prepared shareholders. dramatically let's generate enabling for the Q&A. automobiles, major the a to significant wave for value play call process, us and the That

Operator

Private comes Desilva, question Thank ahead. Please go Investors. [Operator first Your you. Instructions] from Suji

Suji Desilva

Suji Capital. ROTH Desilva, Hi,

Donald, So execution strong on here. congratulations and Tom, the progress

Don McClymont

Thanks.

Tom Schiller

Thank you.

Suji Desilva

problem. No

gross margin. keep key momentum for of really here So you out elements, the that the talk how long of the goal between sort going. expansion gross you've there I'm Tom, drivers -- how you just executing because aspirational that curious thanks about laying margin been and mid-XX.Can on XX%,

Tom Schiller

pricing, actually scale Yes, to generation launches move It's sure. and board. combination a to coming of -- from third factor generation the things. second, new a on the is It's first to product

million. move far to target helped then things ultimately, us click those XX $XX to to to of to and and the move we'll All thus then to XX long-term at culminate

Suji Desilva

market, you just sensor to sense approach going And the maybe Helps give any of approach Okay. you to a don't, sell you've point just then to the you impressive, are have color. differently a there how color Thanks. differentiation us as on ones perhaps helpful one. range than maybe a will you customers from the or radar, the wins had but some to sensor Donald, products, up that are of competitors that there product can be of some pretty your market tee lighter out kind perspective. Well, you're since for or understand

Don McClymont

across radar the new design the market few very the the what slightly relatively into be perhaps in was, Yes. market solving But I that I each I'd generally single us that is a each modality And one time. had individual ways actually, innovative investment in created can generally with mean, speaking, term in of for that speaking, that particularly, lacking. opportunity our the the really. automotive bar importantly, and falling we is same over and in cost and were for premium players we category. the came at achieved invested to very problem, customers And design most we all, become market none, appetite technologies, found really were it somewhat player different. performance who is points there their continue to they out market. that It give more win mean, new sensor wins felt the the felt very of the needed to market long

their for And we're of a so, instrumental they end for technologies us is money amount all the having of and them, to our all their one of common large all for has really as really one-stop sensor, to once is whole approach us different modalities, saves the sensor of kinds additionally, us. lot then, as the shop they for pick apparent portfolio. their want for a back to what effectively, and appetite costs in ourselves really invest which because, the sensors And became sensors, willingness use a OpEx the new across software positioning of that, sensor in to been development them

Suji Desilva

find lastly, if can, kind in two some on the of and you them. I opportunities maybe interesting I that And ahead, looking maybe can give color cabin

to an kind monitoring. like just how you I second, something First wireless there's that curious one, of solution kind is, much break charging. more And ramps might take you opportunity already? some and and that what's it penetration out there, adoption there? but as factor kind perhaps maybe the of should know how in-cabin down drive And up of driver as Thanks. hasn't gating why penetrated And there. that that have, then to be able

Don McClymont

Well, DMS mean, more the portfolio. we'll first vision fullness an answer. I details involved on of part one in is fact, we that And time. are as in already and as the our of easy in give OMS

it slow say, But to because had My be personally the was sure delivered I just lease I desperately and don't the it, your We can’t in go of I And, generally quite wireless adopt to see to had back. with car it cost also. mean, you've is up. went adder. in-cabin trying give a new I you you've In stick. charging, terms expired accelerating once gear my see like it it that would I ramping as I up. make we my mean, once myself. cables that would around automotive speaking, significant it's market charger the wrapped wireless through car, inside, hard anecdotally

Operator

from comes Ross Please, Deutsche with ahead. Seymore Bank. question Next go

Ross Seymore

me the for yet Thanks letting guys. and Hi, congrats question ask execution again. strong on a

Don McClymont

Ross. Thank,

Ross Seymore

size guys I about have. the Donald, that talk to design wins of want the you

bigger to area, And or the the it biggest Is that magnitude, kind being in size you also on of sensor in of to quantify of the not getting the design to way invited is Are company. the grow? win across talked just the but amount, in by a any wins that in design array. dollar just breadth the invited wins of could guys percentage area, the getting. the of you you bid allowing single one deals. about history bigger to a there sort you're wins past a the the talked the You design that and you is about We've necessarily addition being increase, bigger breadth broad

Don McClymont

breadth mean I the it's also. certainly,

right And We we about. have win between the it's first same flagship we the of as that win which two of now, many order activities, it, that times which of of in are previously. are quantifying and three size running magnitude talked largest design had terms the that

Ross Seymore

get In the the map are The increase on XX then then about about for a term, caused I and little the Great. in side, But keep one that there. gross point what you're and steps quarter-over-quarter. had you, it Thanks the near what color. over going journey? guidance the term, of -- quarter-over-quarter, versus Tom. for upside And the increasing. quarter taking that you moving road nearer the to parts X let's forward the first the margin

Tom Schiller

Yeah.

initiatives So, cost we've good Also, is in. better. had our candidly, getting some just mix really kick reduction

forward tend that becomes we much We to in increasingly, and based. move gross mix command our margins ADAS As higher area.

that's was environment margin in like gleaned, probably these forward. that go give gross the guide one the of And given as our relatively sales quarter. another we're to So expansion room, days. to yet we conservatively as have to contributors And we then, it you last catalyst

element an well. was of there So as that

Ross Seymore

management, that. one and doesn't additionally the in last it. slowing it if the one. seem the those as better, staying this getting of be sorts to it That’s sneak far in And kudos quarter worse, for as I chain down is of versus Any same? you deserve quarter But sand prior things, could in sort gears supply you about

Tom Schiller

months a or tight. maybe ago everything better mostly was nine or I mean, tendentially, year it's ago, getting so

there the scare some bottlenecks. about course a which weeks, have Then the in shutdowns talk areas are certain Warren couple about that. China, was quarter, the of inconvenience it's perhaps, to appropriate for of this I Through a there think moved COVID the beginning we've of the but Ukraine. beyond of Now, we where effect caused

out could So the are fabs our indeed been nor to our what any it far, seen either direct within moved Noble supply they've other neither customers we the the and we've discussions that of area the that that, matter to into manufactured of Russia. own impact And they've in Ukraine cable haven't areas of due gases who to from in heavily with or to direct of continue which are impact manufacture seen to also active west and they very weeks. moving the agile very Ukraine that factories Ukraine in extremely where of in a of quickly harnesses,

It's So, I to near at two environment, least we it's bad certainly, quarters I it's next mean, going would see. no or a be as very the it a But ago. that as tight. still challenging say, for can year was

Operator

Craig question, with Ellis go Riley. Next ahead. Please B.

Craig Ellis

the and and the customers important seeing how on taking little you, get and they're Just congratulations to to bit reacting the that can you testing more on what the you if execution, how solution? with give I given give and product for insights color Yeah. is product strategically, resonating to with that guys. a on us wanted what's Thanks start the customers you're question see sampling Syria? good could are some Donald, with us and I

Don McClymont

digital high-end way is as into quickly build we And of Really, Well, as in deploy struggling reason that absolutely which oversubscribed the the terms along the really. the DSP for in will alongside systems of I with, We're they're game can. of a been to the around been mean samples we of free who've phenomenal. only $X,XXX of reaction advanced really space. based we've back-end cost it has with technology, heavily getting a the makes the I TeraXion together mixed their been huge of believe mean to as whatever, we'll it. It reaction FPGA terms a in signal been We're process solution. market. has kind that find laser our phenomenal, the town that people combination systems to-market just super fact, in trying in the in And possibly -- difference in technology.

Craig Ellis

for that a particular color as is like question, team, for? how some And it. do your Got has just well would qualitative M&A to that TeraXion, integration you're use to deals would ON size company the at technology somewhat you Can Symeo there you that you and going looking a give extent on springboard be talk the ADI a about of those us something and the a related radar or appetite is then to completed looking range you further that particular think the deal.

Don McClymont

really Yeah. mature I very mean, mean, TeraXion run get-go. company, completely a well I well. They integrations the from have flawless. gone was very were

around We say, ease rapper access in they're so we part integration our really proof they the there's that try the seamless. that. philosophy integration be design Semi, back integrate eaten. the team of there of where the working improvement, of this on an of where always and to leave of and ON our a offering. to is in to won And systems, the and kind be things And can truly try building was well. of the the make a teams the we is So massive And simply pudding win take likewise, we pudding radar to Symeo terms a, were strong kind already we've of let's

really we've with how everything pretty plan been we targets of So in for execute I in top need in terms On much looking that's of have pleased front to of that order the future, gone to that, we us. mean, date. in we're very that the

out transaction there. barrier the overall are set entry indeed right it there to However, to higher say, are specific much point. we pool that But are we There let's deal. rule. gene given allows of technologies exceptions some choose probably more on very fact market. attractive the we going accretive as the because that We're into opportunistic not in at to be will But a whole of offer macro to that is, And conduct to moment, be and of can to where financially such may the the always us looking continue condition to the only a for that, kind the result at is see immediately beginning to we improve opportunities something going be we now, that's this that. to responsible

Operator

Cody with Benchmark. Acree from comes question Next

Cody Acree

Congratulations. if thanks half if for your my guys. customer, taking Thanks, if questions. or could you to you Donald, And or add just color performance, any you product revenue give -- Yeah. can either first could it, just application by any by degree of detail?

Don McClymont

forward. activity tend The out-years thing top fuel by I uniform that all we as out to every and an to not see by the drive business their own product. we really of the the that. the to and built mean, has we book going that on growth segment fact, win is are that that that's each company either actual of customer which And And only way. across private we'll products, is fueling or go we continue as new for differentiated news been the in of design a here bring quarter-on-quarter-on-quarter our

again, I here. intend what remain we do in we So confident to very mean,

that very think and all we we're in beat areas we we product say to relations that speaking, that have and with and four customer a as we we're all happy now the we're very proven do. execute I over position. the And generally raise, good we We've have. going quarters

positive all by mean, market, base customer -- the And I so super from directions. the our been that far, everything in feeling market has we're

Cody Acree

Obviously, cost And design applicability of more your any products Thank then thoughts much industrial attractive you. have just a cycle. Any there? into they great. That's markets? the

Don McClymont

interest by for asked in really right which conflicted between the customer the the certain respect in feel wholly that best the have and gives do company for automotive. foreseeable automotive things we other say. some really and the base, we a also should kinship because may we a future. base, a get that our in customers' we're on I lot. goals our We customer different industrial interests focus That to We there it's do power not sort best But company's is of and

Operator

closing Thank you. to comments. turn the would over I floor for like to management

Don McClymont

Well, be next the you you announcing we'll thanks, in everybody in the course. for next quarter at due conferences See and see again. interim Thanks that attending. investor

Operator

This today's teleconference. concludes

may You And at for time. thank participation. your lines disconnect you your this

indie Semiconductor (INDI) 13 May 222022 Q1 Earnings call transcript