INDI - Earnings call transcript Q2 2022 | indie Semiconductor, Inc.

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Operator

Good afternoon, and welcome to indie Semiconductor's Second 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] As a reminder, this conference call is being recorded. I'd now like to turn the call over to Ashish Gupta, Investor Relations. Mr. please. Gupta,

Ashish Gupta

Good earnings welcome call. operator. second indie everyone, XXXX quarter afternoon, you, to and Semiconductor's Thank

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

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

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

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

Don McClymont

record for innovative QX, by pleased solutions. that delivered bottom to expectations indie in report exceeded Thanks, driven another and Ashish, line demand Autotech and our everyone. top and robust broad-based highly I'm welcome, quarter

organization. OEM chain product the amid automotive X I'm persistent supply the and especially indie's headwinds. our our global operational scale of world-class property resiliency industry our ability portfolio, differentiated versus partnerships, of team's above and Tier strength our to commitments intellectual outperformance proud Our reflects key underlying and

again expanding million, be once XX%. grew and margin markets, second substantially $XX.X and outpaced year-over-year our quarter, sequentially revenue Specifically, while we to XXX% gross record during the XX% a addressable nearly to

outline, as As and user win powerhouse. Semiconductor the electrification establishment indie an is across ADAS, we'll accelerating stage Autotech our for applications, of experience design the setting momentum

our additional On during front, the development program and extended the Surya we SoC LiDAR customers added quarter.

In we degree we and for Leveraging inputs implement with working firmware Analog, mixed these of are augmented architectures. design by as capabilities, enabling LiDAR than now a is unparalleled of functionality, complete BOM, fact, current $XXX all and we Surya TeraXion integration a closely encompassing are suggestions. this system their signal discrete given associated DSP, four the and uniquely truly less their technology. solution, phase world-class absorb lasers partners XX%

high-profile gain Comparatively, million, clear, investing ultrasound $XXX both to these be from opportunity we that and so in vector a LiDAR to share investor XXXX. today. To cruise while or $X.X control, a believe detection, attention enabling to LiDAR of opportunity $X.X through we to of which driving. companies, time, year, billion although ranging monitoring, intend radar for three-dimensional future the future from received billion market are ADAS, indie silicon recognizing $XXX listings but adaptive same computer has the addition is According RADAR total this large radar growing expected is respectively. it applications. catalyze imaging At by can automotive for growth a addressable detection and IHS, pivotal lane is the grow result, a technology, this As to to heavily to of dozen it's is pedestrian to to widespread is key is gaining autonomous semiconductor deployment to spot worth intense million modalities within vision, blind market

customers our were ON microcontroller-based Symeo for strategic alternative adherence design the over world-class digital Devices division, as related our team, market of field-proven as Analog was of and well radar all and IC RF, source analog, Switching radar development, solutions management leading-edge to to multi-gigahertz radar with together the Semi's well As seeking quality consolidated acquisitions whenever. gears. our indie capture bringing years formed scalability cumulative as precision key and rationale ultimately capabilities, encouragement patents applications and XXX past recent an SoC mixed-signal decade, XXX as capabilities man This largest over enabling strict the power over standards. program

Kia. as play designs and at advanced OEM secure reduces Xiaopeng the the in This engineers becomes wins Korean user charging ago. strategic to These enhanced launched we any next market vehicle ramps excellence, Recall, significant including Japan the enhances focused our not are we during products we've already a and channel center experience in Dresden, existing global our Kia in of user automotive delivery efforts similarly PD count, approximately systems. the engineering lighting over launched given of the part XXX reliability Hyundai applications experience both announced China. brands, simplifies adjacent Subsequently, are industry's able in and and design sampling of production. quarter, we in-cabin of Germany expansion a most were car And days to had presence and European year. product been the formal firmware-based Within customers generation have early component accounting XX region, we major on we high-volume programmable that of for production Honda, wins for in XX% USB well Asia. with and now intensely foothold product at as the historically dual charging We underrepresented our second commenced power and staging the IC world, we in Korea of area, largest Honda, Further, vehicle we controller. wireless USB that as announced Hyundai breakthrough Japanese opening integrated have we've multiple QX next

strategic for quarter next similar and product and and forward. indie's wins current sharing forward opened future channels backlog product our update look we've providing new we sales customer updates massive the going offerings, Given annual launches on to

accelerating electrification the to auto XXXX, price to in Automotive, than level, is overall but more at XX% of and were shift the US over down than the and Cox According oil period. the grew transition amid Finally, technologies. half first EV long-term same Greener sales sales XX% a to higher higher more environment

younger sales from now In has as consumer Americans shift Netherlands begun, electric fact, new automotive has vehicle with Further, according in electrification of just since soared AAA and interest car intelligence buying an firm, new indie on megatrend for recurrent And purchase. a with respective Germany XX% vehicle only XX% of January, to penetration their indicated the increases year-to-date survey, has electric few XX% in ways. XX% they of an a the electric benefits vehicles recent June. that while say The are data X% buying significant vehicle market the in plan US, vehicle generations. sales next fully and capturing penetration of seeing end in only the and through particularly

strong we with EV First, increasing design OEMs traction relationships gaining have an and win number strategic are there. of

product to our our growth Xs forecasts, our addressable IHS of decade. $XXX newly day innovation our and higher application. largest Vitesco, outlook. customer that, to up And are one and per third, in maximizing portfolios aligned more broader tends electric our capitalize tangibly, base vehicles critical now on to vehicle experience substantially With vehicle average over and generally, Between power deep the trajectory. per more I'll for ADAS, vehicles, over Autotech to a coming Tier of applications, attach content efficiency, a some from call automotive European to the we gain turn range. an perfectly Tom to content electrification specific And portfolio discussion to in to our results this rate and increase degree designed supporting luxury EV user $X,XXX of and Secondly, given the in are

Tom Schiller

strong Donald. once again achieving results, our forecast second indie the delivered end of analyst expectations. range, top Thanks, exceeding quarter

guidance. accelerated global sales reach last record expanded was represents Gross million and $XX.X post $XX.X for $XX investments indie's our our versus and were as the points last XXX into against $XX QX R&D including Revenue supported translating outlook basis and for the ERP was product Operating up $XX.X of million. margin, year-over-year development, XX% a XXX% we XXX enhanced points while public outperformance XX% basis sequentially profit of for XX.X% planned fact, In consecutive fifth gross our expenses summer. a million infrastructure to were a our IPO sequentially and SG&A quarter million up million. million, period above scalability. year-over-year elements $X.X of company system

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

to balance sheet. the Turning

for to ensure in support During we growth the $X.X invested supply inventory, IP we And half million. million key block working stronger licensed in of for plan. second quarter, including our $X.X another a million capital, $X.X

Our additional expanded IT infrastructure. for and lab $X.X equipment capital expenditures were million

to and Citi made Finally, deferred semiconductor cash. acquisition-related the million with onsemi period we $X in million payments exiting $XXX.X in

continue and on expect customer based new markets. from outpace to in forward, our order we to Looking addressable visibility ramps, these products strong substantially

rate. roughly range, And line to on order the XXXX, indie At $XXX the top margin plan XXX% range. third XXX% of to the quarter year-over-year. for for the on annualized be this first revenue we of XX% deliver of million the anticipate in Specifically, a gross run we growth midpoint time, will

we expenses net planning million of of line, the with are of $XX anticipate and income SG&A. and R&D to in Below pickup no a moderate taxes. $X $XXX,XXX We interest operating million

again, than expect shares million of share, better consensus $X.XX XXX per Assuming once net expectations. a outstanding, we loss $X.XX

leverage structure, that scalability marking the given in step gross XX% target margin next second the by our margins note, to growth model are of back to expansion pipeline, win our half for importantly, depth revenue reach we closing as our planned year, of call and far On profitability of our outpace towards turn comments. XX% another cost and design operating gross Donald operating XXXX. the on achieving his and I'll key demonstrated track More

Don McClymont

Indeed, horizon. concludes let's over share more prepared To our first summarize, capabilities, is quarter Even market Suji. we serviceable billion That safety updating from the fast for forward opportunity Please Thanks, software unit are friendly US, differentiated for portfolio Operator, of better planning QX range, showcasing disproportionate Operator which session. delivering automakers the half of Asia of proceed solutions another reporting We our features At down the semiconductor to team. a we performance will with be to The during guidance, time, year, your becoming in technologies solid leading of with far indie on Europe results are well next $XX along volumes Capital. environmentally industry gain indie. to this question the positioning look and extended outpacing question, what continue to enhanced first Tom. this as the focused with automobiles expect exceptional in-cabin you, powertrains indie the a ROTH you of close for questions. are a remarks. sir. Suji generation and was we Instructions] the as peers, open conducting comes call question-and-answer Thank Desilva [Operator from way. and

Suji Desilva

Tom. Donald. on Congratulations Hello, the progress here. Hello,

Don McClymont

Thanks.

Suji Desilva

is I So it not? or that your chain I just but kind on situation you And supply just and of extent? covered indie some are call, general on what is know of ask the to just indie want seeing to question. dynamic availability, if impact or the immune just where easing you updated kind auto a the

Don McClymont

speaking, progress content our defined increases is space. the gains share by and generally really mean, automobile I Well, in

which supply the volume So, able front unit the to We do that us. no spot business, that the as as input our down, planned is mean, customers, to the out than which still it's output But the we been screw year is I far it shipments chain I so see really so-called our we've business, in shortage numbers phenomenon, out we areas disruption still like, our some easier in was a but as no can slowing from and some mean you meet write certainly set demand. if our also the of secret OEMs. key of the chain, of ago. there's from there's unit end is golden And our tell, thing, the supply

I but written immune we've the pretty is nobody to well. bonds So it, think

Suji Desilva

models? on which be I'm And LX, position What Is companies, expect sensor is in first among LX Okay. No the our a go if and from what your into pull great. for focus terms would -- next should of made -- some competitors, the then in indie’s we ramping increasing year in and impact, XXXX, of that you various year next which decisions LX+, perhaps. or year half demand this being year half hearing traction are second XXXX. sensing What there? it you it positioning would penetration model of back seeing LX+

Don McClymont

mean, it's extremely rightsize will which We've various modalities, I sensor each features. for heavy we individual and for a you our assume strong. the all applications. levels take of in can products autonomy that be made investments ADAS view required We

publicly. us find find you'll you'll cars through indeed. processes of features about the already and high-end lot gone models, in So in business and a also that are your selection in of lower deployed the We've cars, high-volume sort where tier and talked us to mid we've the

specified see came when on we to track in that the are announcements. those time the deploy we with out we things So frames

Suji Desilva

maybe press summarize a think question Can that just signed for chips pre kind chips what the then mean on world side. I -- -- put just that on know you the the indie release versus you being the of a government…? Excellent. you might And at

Don McClymont

given the our there to are a carve-out are very benefit mean US's that one especially the our design I carve-outs, And course, key we be -- focused a -- from for good focus that. to whole center-owned good manufacturing, it's that also. should candidate and ourselves. which is on focus the expect and for we industry but also But of our industries, of heavily is tailwind

it for positive. as us, yeah, So I view mean, we a

Operator

Bank. from Please next Ross. ahead, you. Deutsche Thank comes Seymore Ross from go question The

Ross Seymore

of Hi for to in breakeven/profitability comfort Congrats to the have half me want Donald, the question. letting guys. I talk you getting just strong on about next Thanks ask the results. with the year. the back

that set long have your target. guys You as

revenue You've from the it. there see are primary year to to and executed very, bridges third it strongly from that side, growth? very ballpark you quarter the basically I some revenue and looks to those between this to double has here of what your to just that year get the want key drivers quarter attain are the your next What behind comfort to in third your range. drivers like

Don McClymont

happen. for the the we And we made correct that strong our that as belief that mean, I every results we of to quarter, went. We're continue executing themselves. plan. have expected Yeah. speak amount And we've still progress to will

double you're we and already. mean, into good our twice XXXX. We've We have one done our visibility time. more of backlog it very I outlook And right. have to

And that would so nothing that see there's can in of front I us that inhibit happening for us.

of it's products, gamut well the diversified the of terms very we In across basically brought portfolio that product market. to whole

risk that So pretty that customer on – within mind, one or the well environment, We're And one not with depending diversified. we're is mitigated. in product. well pretty

pretty about good feel we it. So,

Ross Seymore

the But know The we about Great. there? pace one Thanks plan. we as keeps guess, ability what's as those the to for about follow-up, my think forward, grow details. Tom. just one you, higher. think for gross marching I I going part margin the of that's should

Tom Schiller

continues It's And and our It's we're these programs well. and as improve. – just from linear. driven then product better We're layer mix to higher-value third-generation pricing margins. as benefiting pretty also, second that seeing Yes. in, obviously, by newer

So, there. dynamics all those us get

Ross Seymore

Thank you. Perfect.

Operator

Thank question, you. next Anthony. question from Anthony proceed comes Please The from your with Craig-Hallum. Stoss

Anthony Stoss

comments your particularly IC, up guys. well wanted Hey, I PD guide execution, nice as USB on about for on Donald, September. to power new My follow the congrats, the controllers.

then you and are? Can a follow-up share it's I you're maybe on after you deals these more that. quickly. why quickly pretty as customers winning lending You're as had some a shed why or light breakthrough And

Don McClymont

an problems Nobody development in we're XXX for our level very those cases. controllers, along a to up digital integrated successful when our up. some power There's tricky And to with to very subsystems us. integrated get available a and to filling performance, we and that. and our in pretty reaction power the together seeing controllers bear customer coming charge solve, arm It's a as you the product. embedded some previously backlog watts as go technology, that with of are, levels, in Well, which digital firmware-based been offers together extreme it's out management, it of wasn't some to is some

Anthony Stoss

– press contracts kind on And Hyundai, remarks, you your and charging. et just what Got then the and I lighting wireless it. related? you – this of release the what lastly, discuss you your – Is about there design big and just cetera, in were Can curious talked you time-wise expect prepared volume said mean,

Don McClymont

contribute will the in perhaps little There'll the constraints. of design be some a flow, the of supply driven we're some by chain ramp course. bit cases, in over I what mean, in win is, they period, some XXXX. of market seeing a acceleration But

yeah, faster And we be will do we're time to. see that used so to revenue that, but typically a than

Operator

from Thank comes Cody question proceed with Acree question, Please you. your next from The Benchmark. Cody.

Cody Acree

taking talking on progress. to the Yeah. scale can a here any on Thank in you, you for that? about, size my living you're provide design that or congratulations the the of wins just there question, guys last ramping and the questions, Is Maybe and just color XXXX. follow-up

Don McClymont

we typically release mean numbers, are I don't material. specific they but

Cody Acree

what the also happening I happening just you And in talk activity, what's guess, overall can China standpoint? the there you Chinese market? from do year see And about

Don McClymont

portfolio, are the extremely because builds order in of who hungry to sales for vessels very market, of of in if like, drive and for are future ventures, the key buoyant course, which I The local very the There's also cetera, market et there's the is General buoyant. -- Motors, serve as Volkswagen, overall companies. companies we there for you sort China the ads companies, foreign mean, of a sort e-vehicle that over joint such them.

a as our see across that fair lot at for So products. of coming a moment. the place of bit backlog -- from We we buoyant see the board very it

Cody Acree

standpoint, limiting performance? from backlog constraints looking you a your are And

Don McClymont

I the I our were tight. I that. mean through of good super not We've supply such. previous an It been when from quarters easy chain think manage as you management task. has things mean recall through to as will hasn't pretty been managed

that. So game be top had order do of on to to our we've in

good. seen that doing there. we this invested think risk in You have this mitigate point, little will some inventory But pretty at we're I a to quarter

Operator

Thank you. your proceed Craig Ellis from B. The Securities. next with Riley Please question question, Craig. from comes

Craig Ellis

comments following Yes. Donald, on now and to start congratulations the guys. partners. the with I momentum your questions taking engaged in Thanks wanted with for four the Surya, on up business you're that

is given initial color each? ago was indicated quarter pace And partners you question on broad the capacity selected, a the it, of beyond take company's with four? the what's provide interest advancement in this, these pretty four were you So where partners around there can the some color a that additional these to how

Don McClymont

launched, Well, we and we we us the work with. we receive it when probable the provide a course. who to selective about of did to be picked I And interest had revenue, was of amount in most mean, large product

we basically, volume us come to we what to of would they access consider cream the largest in So chose design the fruition. give business, when the the to crop wins be and

in find compelling. have if place. But do team scale we pretty we execution to thin. We We opportunities, ourselves to which and excellent if are on as we an like need spreading opposed to focus key can

Craig Ellis

feeling so start time the far, know does it's frame? in Yes. far And and see the for from terms ability of you XXXX to your early engagement but with shipping in engagement you days how customers, with what revenue leave I so

Don McClymont

towards I end good. we I the us by really, this as out that But XXXX. a has growing we of -- mean, way changed it's it's the We're for mean, of I plan and nothing it. at I it's at think set market, mean, Yes. point, go. marching developing

in negative worried sense, haven't of surprises that about. had We a really from we're lot kind of perspective at that a least really

out same set So we're time still to the time, plan two ago, marching years same basically. that we

Operator

like Thank back you. turn management have question-and-answer much, And gentlemen, of the call remarks. to for Thank closing you very the to we I sir. end ladies And session. the would and reached

Don McClymont

time, to Look everyone. at you investor seeing at in forward quarter, see you Well, the this a upcoming same quarter's same and place time. events the thanks,

Operator

today's call. concludes conference Thank you. This

You your you thank may and very this time, participation. lines disconnect for at your much

indie Semiconductor (INDI) 11 Aug 222022 Q2 Earnings call transcript