Earnings call transcript Q1 2023

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Operator

Good afternoon and welcome to indie Semiconductor 's First Quarter 2023 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation.

As a reminder, this conference is being recorded.

I will now turn the call over to Ashish Gupta, Investor Relations. Mr. ahead. go please Gupta,

Ashish Gupta

Good XXXX welcome earnings Operator. 's indie first quarter call. afternoon you, to and Semiconductor Thank

Joining me Tom today of mother CEO; and and just are of the Don McClymont, Bal, EVP passing Chief indie's office indie's days with Accounting of is ago. Officer. Strategy Schiller, the CFO Raja indie's out Co-Founder his and

that and assumptions, representative making to and highlights review of should risks Raja's of These statements will opening as uncertainties. second outlook. current not Donald quarter views and by expectations provide subsequent be our and remarks followed and of our we Please only on based note QX forward-looking discuss results which are will any business today as subject statements of reflect upon indie's views be relied date. as

These to subject could actual results and variety expectations. differ risks cause of statements are from materially to uncertainties that a

backlog Safe release. our please of For methodology, refer formulation discussion XXXX our to QX the a on statement earnings strategic Harbor press

material Report other For our the our as December as important in XXXX, affect filed could reports for factors risk please that Annual financial XX, factors results, SEC. Form fiscal our year review XX-K well the ended and with public on risks other

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

see complete can be and call QX a our was GAAP, earnings at advance please www.indisemi.com. reconciliation this of issued our found For to press in release, which website on

Donald. over the turn now to call I'll

Donald McClymont

innovative performance and delivered robust the unwavering reflecting Thank Autotech another you, first Ashish, and record highly operational to pleased achieving our for that everybody. welcome in solutions our excellence. commitment demand yet report I'm above plan to indie quarter,

XXXX. by indie's applications. driven in industry our strong set differentiated outpaced to patents and We're substantially we global XXX product peers, start diverse a by over and off again, Once underpinned

we achieved XX%. million revenue of XX% Specifically, to gross quarter, during a and over XX% and sequentially the year-over-year margin grew $XX.X just

sharply to allowing group insulate beginning acquisitions customer outpace us to and yield geographic R&D from indie deep are investments and weakness. targeted isolated our Our results, peer market and

momentum electrification we're user to gaining program growth generation. free the review, wins and for ADAS, revenue across stage design experience these ultimately As flow and as and setting into we'll translate come win cash ramps for sustained, years outsized applications,

First, automotive product to for meet X area, we're generation ADAS within and next advanced Tier vehicles. the growing OEMs systems enabling the in suppliers safety demand

Ultrasonic fuse of comprehensive will to follow we continue we technology Radar, the multiple approach perception as supporting such created Importantly, and sensor surroundings. and agnostic the accurate Solutions vehicle's a provide which ultimately a LiDAR, Computer to modalities data from Vision

product dominate diversity modality single including to has We our assist accelerated landscape, who base. the given believe often fusion ADAS Quite from with will the that from sensor by particularly to that use sensing our competitors roadmap driving simply, the indie differentiated narrow autonomous cling of believe everything no to in pack, safety cases lane and one strategy, modality, fully between. to augmented systems an ranging we application extremely tend and customer truly acquisition backup

autonomy. full to And on plan isn't business clear, indie's dependent be

I and the vehicle. haven't presented today's driverless address to begun call from plus, of even systems In support what of opportunity evolution plus. to levels two we the complete solutions words, to Our plus, safety by the other two the definition four like level level five,

that mature. we Motors the Sharp in quarter In at to those I'm the design win certainly we Japan. captured when But to partnership during of our announce meantime, will delighted General with first markets begin

forthcoming EV program, upon this elaborate it material portfolio. models, its many suffice for a to can't say initially development particular encompass it's we GM's indie will While and of including

global additional providing We information forward upon next to rollout the look year.

in specializing acquisition our we transceiver, strengthened of radar industry's leader this on-chip high the advanced, Silicon in volume with developed a radar During integrated including technology integrated automotive production-ready, systems on a highly position antennas. first as quarter, XXXGHz also Silicon front-end highly had Radar chip. company the frequency Radar, integrated

Silicon own based Germany Radar group. a partner had Munich, design radar to been our previously

as is standard Car European systems, to continued such making Assessment vehicle ensuring need safety. As New an solutions monitoring expand driver increasing as globally, an the in-cabin component occupant sensing Program essential safety overall initiatives and for for there

growth driver that the Silicon lead world design to over Radar's XXXX Global a S&P billion fact, compound by rate. $X.X will In monitoring occupant Mobility we grow class XX% team, and predicts market plan the to for annual at semiconductors With way.

SOC at On to Surya make with European the solution program the Tier progress our front, automotive our we multiple continued LiDAR demonstrating quarter, during Xs.

effective a SOC multi-channel, FMCW and to together acquisition high solution processing, LiDAR changing the signal world's based enabling speed that analog It integrates data merchant system. high market cost with and LiDAR performance digital is system. converters, efficient control coherent and to processing digital hardware signal software a indie's Surya signal, and defined the product, interfaces implement customers LiDAR needed an software is game highly-integrated for first system

targeting we a architectures. than XX% less are Specifically, $XXX current BOM

uniquely three-dimensional cameras the sensing believe function as XX autonomous with to As imaging mainstream both ADAS to functionality. driving, vehicles And sensor. systems a sensing a which next are primary generation is key traction result, can up drive serving gain computer finally, a requiring indie of and this component beginning technology, for crucial as we vision now

detection, parking, and diverse, surround enable cases occupant a such collectively and are pilot, monitoring. driver cameras, wide occupant functions systems, lane others. lane systems and and as view vision range jam of highway change applications, automated use amongst pilot, These Computer night safety backup object vision assist, enabling traffic including

at to in sockets win quarter, pipeline, vision design expand continued the support our Panasonic initial Honda. of securing we During

user a communication, background OEMs best-in-class have increasingly in-cabin point as sharing. of to prioritizing by experience a experience, entertainment turning been Next, information prioritizing, and differentiation,

interior providing lighting a of emotional strong the becoming as brand importance and new like cabin of throughout standard. more it user an increasingly recognition. highlighted with cars driver becoming ultimate can is homes modern entire workplaces, generator drive temporary With is have the experience or the the the connection OEMs

indie of dynamic rapidly lighting can which today's interior the drivers with easier user multi-color lighting, it With for the technologies it to seen, to is is advanced an future experience. enhanced improve possible is in-cabin and risk accidents. be and reduce see help vehicles redefining exterior make of lighting for and visibility The evolving. of

Innovative mood. lighting matrix can as LED and occupants, context the comfort owner the address growing driver the preference the journey, vehicle for style this of the of and recently solutions, innovative demand creating also announced improve atmosphere indeed such designed controller the to general lighting. indie's and are to suited efficient LED of an power the

the mobile at several additional advanced captured also leadership, both are China wins integration EV wireless charging North and OEMs for BYD, automakers. efficiency and lighting power our including quarter, Li on top during priorities and Similarly, device based, we Auto. NIO leading Based American global

sending This their the their the making technology system, calls, and link attention music road. into favorite enjoying to infotainment device mobile vehicle's without receiving allows safely drivers from and messages, seamlessly their diverting

chipset or software be experiences and share. that To-date, it our to enabling have Apple Android no Apple consumer Auto even said, process, in layer functionality. market significant provided indie have In gained and this is That agnostic Android compelling implemented played solutions. whatever is small in-house CarPlay, has part

we internally the architectures, to particularly to connect and transition While continue is any sell plans phone way to to by within infotainment this power no transport configuration. in recently indie to impacted the announced some developed as system OEMs data have development,

wireless electric At strong as adjacent OEMs makers user seeing expand global such with and the and charging, in-cabin experience, of market relationships solutions. Tier we're our to as vehicles, speaking rapidly sales gain a into momentum. same of EV allowed time, EV continue acceleration to controller other our areas Xs emerging And us car have offerings USB-PD

in the US of XX% and to sales the the EV were market over According year X%. Book, to the Kelley prior Blue total EV increased up versus share

potential Additionally, costs as expands to is growth the continues battery market technology EV the phenomenal. infrastructure charging for in and improve, EV decrease,

We globe. growth, to expect leading the EV around solutions will number is from global given indie benefit increasing the an strong position OEMs relationships semiconductor particularly EV integrated seek our and more efficient and a OEMs of in strong with believe

the I'll now results of call outlook. QX to discussion Raja a and QX over turn for our

had indie our member Accounting years the to valuable as those Chief you. opportunity meet to a he the serves been haven't for currently over and Raja, three has For Officer. over of team who Raja,

Raja Bal

guidance Thanks, delivered indie Donald. expectations. again line exceeding and strong a top our first quarter once

fact, targets this margin eighth at of our or represents IPO. post-indie's gross quarter In least consecutive beating revenue and meeting our

stub our and million, translating a and portion XX.X% of was gross March. ahead Specifically, non-GAAP basis XX% revenue gross from XX% GEO Semiconductor our was up slightly acquisition for year-over-year XXX a including up in XX% into of the XX.X million, margin revenue to period sequentially year-over-year guidance. up profit On points of basis, $XX.X

in reach. million turn, $XX.X including million, of development in reflecting in and $XX.X were quarter and the product $XX.X for In continued QX expenses our million was operating sales investment our Total $X.X and million. loss marketing operating accelerated R&D expansion our SG&A

Below the net interest was line, million. $X.X income

result, million a line XXX.X and shares base guidance. was in on loss million our loss As posted a a of we $XX.X net per share with $X.XX

acquisition significant We million GEO note million to Turning to of Semiconductor, to analog the of of including promissory to the related a had Symeo. one-time $X.X acquisition acquisition cash the the $XX the Radar repayment balance during quarter, $XX related of the sheet. related disbursements Silicon and devices million

of our capital, working growth back $XX.X in We primarily also half inventory million plans. in invested secure support to

combined expanded internal for capabilities on issued the $XXX.X $XX.X $X.X activities. and other the Also, million, testing exiting million quarter, and These shares. ATM hand million million financing of loss from sources cash we capital and $X.X non-GAAP expenditures quarter. million of resulted of $XX.X during in raised operating in in million the uses cash our with X.X

to and horizon. Autotech pipeline, on demonstrably the based our forecast visibility we forward plan indie's order the new of depth product outperform the over market Looking

non-GAAP to the plan $XXX GEO quarter, in margin particularly pre-synergized the run range, scale annualized the to we revenue as XX% assuming of million range we through million, $XX.X midpoint a again inventory. For at $XXX rate, gross we lower work margin million expect second to this

both $X which planning versus month in impacts just also in R&D $XX the are one in recent million acquisitions million We includes QX. quarterly full SG&A, and of our

result, plan the interest a no narrow approximately and our As $XX taxes. to million. anticipate Below to loss we expense we of $XXX,XXX operating net line,

a shares expect share. we loss million $X.XX XXX.X per outstanding, Assuming

and us planned Finally, believe will this and expense trajectory, combination the to year. reach operating of leverage post-acquisition growth back the enable half expansion, synergies of profitability to gross reiterate, in accelerating margin indie's we

turn to his for With closing Donald the that, comments. back I'll call

Donald McClymont

plan. strength design but performance world In and team. our early roadmaps our was In outlook QX our and operationally, the partnerships, effectively quarter also Raja. another the executing in summary, we're what's given that possible remain portfolio, represent customer of our proof points product class yet short-term, Thanks, of solid indie at we supplier the engagements, innings more to

a now double our are Playoff double, NBA we on market of an season, again step this year triple another of opportunity capitalizing Since Autotech of third year, pace that's fact, process semiconductor vision on than billion a to representing towards the indie's powerhouse. automotive top In our the realizing the of in so. XX we're more in creating in the line row and our doing middle version

our concludes Operator, let's That the for open questions. call prepared remarks.

Operator

you. Thank

now you. will question-and-answer conducting be We a session. Instructions] Thank [Operator

from Please with question. comes Suji proceed with question first Our your Capital. Roth DeSilva

Suji DeSilva

Congrats progress here. the on

First I'm the kind exposure, I demand think exposure any think than the is companies. there roughly said want stronger strong. framework, guess, been versus And guess just of car know, there question's about that's know, this, you around new other? about traditional auto you to the I about remains question, think you half-half the a one indie's I is EV wondering, And, China or I

demand curious relative So the just traditional companies? on across new thoughts versus your auto

Donald McClymont

products see from viewpoint, our mean, of you results. subjective as can our I the strong Suji. have all demand, Thanks, extremely from

we're So as as remains market strong. particularly concerned, far the

between We combustion are geographies, across internal engine. difference diversified customers products, including very technologies, and and the our E-Vehicle

course, to I we're not very of say, There in where been, any regard those the China, part of to beholden as the factors. factors. of one diversified we in weakness do portfolio. with of really would course, representation, broader of We're market, has all have E-vehicles, those noise across So some

position market to in a But And basically year. E-Vehicles do a low for strong million to our leadership E-Vehicle. a base that's scheduled from this performance. X It's world's a very time. And huge come they're pretty a percentage they've short very the perspective, from in China of

that generally strength in market see on we view this our only particular also. So that at is point

Suji DeSilva

for and prepared the scales the if you on in how CarPlay in Okay, Apple CarPlay great. China. you? there opportunity And the and guys diversifying content mentioned Can the elaborate remarks, it's just what's Apple you opportunity that out and from happening market

Donald McClymont

I Well, of from top supports used or mean, that's user our it. perspective, any software skin hardware on our interface

it Auto an or CarPlay, no do. it OEM they be to us system difference to which as belongs really Apple whether to what and some proprietary regards So Android makes

as for growth those perspective So product and mobile the far our growth device as user experience, as user's of vehicle goes, there's potential the integration into there's as for long areas. us in then continued

So it one of of the it's parts our and still strong grow. continues to business

Suji DeSilva

in last can one sneak I question. Okay. quick

you or two infotainment Maybe For really high biggest the the safety in do there's you growth out three two two opportunities? a that. What content all and It years? of point think opportunities lot could across different one that of the opportunity. in-cabin or revenue there seems to are three and next like

Donald McClymont

becoming place are people which remarks. time the remarks desired by share. mean, comforts generally that it's The be is there that I increase as most where whole and called car to brand spend immediate. many are I across mentioned more in are really the ones the we in portfolio, to ones mean, our spread the more a their But cabin the increase speaking, out recognition and the product offered we creature can are and manufacturer

a about to so so generally forth, a I the very and still and it's going area. be growth driving E-Vehicle driver future as still mean talked has and So strong very, of it's but great content unfolds. semiconductor much on autonomous

Suji DeSilva

Okay. Thanks, Donald.

Operator

Thank you.

comes Craig-Hallum. with next question with your from Our Stoss Please question. proceed Anthony

Anthony Stoss

revenues not for focus to win. divulge something and to hear probably start you GM I Donald, I'm just you're year at have much, too or know then when ADAS follow-ups? any sense I but liberty of you the may guys. Hi, your would Thanks. curious, did on correctly wanted a I that start next couple in on

Donald McClymont

it. frame, many years, indeed for has very sales mean, are but been positive very this GM and kind for represents that's of we Yeah. in for a announcement about that it's I launching. time through a new area product customer a of us pleased ours us

Anthony Stoss

you that share Is or that models you'd think there any you'll of share? any number care to get

Donald McClymont

at disclose be we're going but and models, least. us, not at where exact say and for point to We're it's volumes significant car liberty to numbers to the the

Anthony Stoss

for then couple and And is one your up of earlier China and disclosed, it. of revenue that you that in China Got years? where lighting percentage right on on your you questions now following what next of you see the

Raja Bal

I'll that, take Sure. Donald.

through historically expect So the for half be kind us quarter over being is roughly China been roughly our the of and that pretty terms wins. volume clarify is many of and to revenues that's to forward. the has generated of misleading consistent or of much current with design and credited of manufactured that's China in we European there US But is because where going filings

Anthony Stoss

using Yeah, new can the a GEO. private one, kind shy company post in small you And having if wins that now and to little that because GEO sense. makes were last conversations of maybe they're question expect you're now more and then the of customer related on design other flag under automakers indie? I'm close a curious they're

Donald McClymont

final that for products the vice a we're push way through couple our through the together indeed We Yeah, for I just their is in would short that Perhaps working I over. sales that the one enormous. say and wins integrated. channel been of which great of super I channels yeah, already mean and traction we've because gave mean, timeframe a the versa our sales with of a mean, happy their of combined amount products went the have the it companies line. even teams very sales really the we're across we I We're after now yard girth on announced But there seeing line.

make do course that that of will announcements space. over next I expect the the So we in while, some

Anthony Stoss

Thanks, Donald. I'll appreciate it.

Operator

you. Thank

Our next Deutsche Please with Ross comes question. from your Seymore question with Bank. proceed

Ross Seymore

changes space. but Any the one wanted of one, just to your you've to I or of dynamics big already answered first certain of supply the just sort get but of your thoughts. any Hey, questions. because a that automotive guys. couple ask in to way your change extent, me concern don't for perspective? other, guess Donald, outside from lot a Obviously, demand one, Thanks about show a investor seem letting that numbers in China the

Donald McClymont

the There slip mean pockets isolated twixt are supply of, which has can there's sure situation to see that back the I cup no itself Much normal. months to you greatly situation that make XX last alleviated or the from and is so. let's the lip. enhanced management say, demand some chain of

see said, becoming the where what volume year XXXX. during work to the course in really more volume that it's That period. see see But where is cars didn't I has alleviated. peak some there that, the per of its to speaking, improved, than do. And we it some mean below still get that it pent being demand demand at we would but up still car other still get manufactured generally Still, cars But the situation was is many we that back before. to was

Ross Seymore

Thanks for win noticed And the the Motors that it. design the to that do couple word Japan? of with something partnership core from questions or Was was with at Got Japan ADAS that. quickly. a of I Was GEO there. GEO in side General in Sharp of kind things indie?

Donald McClymont

but detailing the little actually talk not the as we'll at on bit announce can application. progresses time more we Yeah, a about moment, that that we're as

Ross Seymore

GEO you've the would bit you. a fold the last that question just of for time. Got Then be in now had

and and guided if you I the any you numbers prior a still XX are was expect when stub all those correctly, dollars a the applicable? of those to couple remember think million or for roughly said quarter changes full million you quarter then I year the in

Donald McClymont

tracking No, plan. we're still to

Ross Seymore

Great. Thank you.

Donald McClymont

Thanks, Ross.

Operator

you. Thank

question Acree from next Please proceed with Our your with comes Benchmark. Cody question.

Cody Acree

Tom and Yeah, questions, mother. pass taking please on my passing thanks my along to his for guys, sympathies

Donald McClymont

Cody. do, We'll Yeah.

Cody Acree

you breaks and by how And Don, I on your can us color follow quarter kind or Yeah. application? have revenue just of some very much. that up. you Thank guidance? then quarter about talk past in Can this you for mix your down another this give and

Donald McClymont

would really and to that by areas product plan the anything I application tracking to sub we're for geography is really in that by and all at the revenue are tracking say in place. or put we we Really, segment individually pursue that matter. mean, well. or even don't I we that plan Well, segments the large, -- everything, our as

So the we're next with the we few next years. outlook that pretty for quarters have and into happy few the

Cody Acree

your market? to And new is at I versus about new revenue might volume vehicles? of I'm initial to look in guess sensitivity volume guess of business sensitivity just I what can another if ramping of and then is, saying way, is on and of be how you sockets your markets new what the talk the revenue what you much how products the is your much wins dependent

Donald McClymont

factor primary the that is revenue our profile own gain. affects Well, share our

the results before over seen to we've eight quarters, And the you've from outgrown that's factor last going that us that's anything As market. else. posted we've the primary the massively influence

the and generated and course new course, continue new do that business deployments Of that was of by to will period starts so. over product

I are the date, largely In of largely a because the in wins that I when produced made revenue we any made. terms wins characterize to were as longer new terms company. mean we've profile we these wouldn't really wins private were that them of

where when relationships to make going we earnings products where releases announce things we future, us revenue so when customer of and decade. and are and come which going further we largely through new is forth, sometime gives and build right because it the this long-term, that do press wins are about from, of the we we've great where are our visibility really in end great the And we're talk out that for now the

deal our the on basis. really by nature yearly sub-segment of visibility revenue category out have long just design win, great So and of we business decade by almost design from again, cycles or a security of is the the of a nature don't but we coming and where and into quarterly and because the

Cody Acree

And trends Just then about lastly, Don, if gross you mix supply the margin I quarter? beyond talk your may, efficiencies? efficiencies, versus internal June just can

Donald McClymont

margin by mean, length we in hit at we talked that multitude it as model, efficiencies maybe short recently acquisitions we the increase remain track our a to factors on be course the scale, you term higher operating deploy made. the technology driven I fully we've as gross integrate of we in And of quarters. operating know as last mix products the over will which efficiencies XX% about

Cody Acree

Okay. Thank you, guys.

Operator

you. Thank

your Our Ellis next Craig question. Please question Riley Securities. comes proceed B. from with with

Craig Ellis

significantly with last up It's types Yeah. both the made interested try Thanks relates way way to customers, where about the indie Donald, different question. inorganically across be but scale and to one the point engage that few qualitative, products is both that start to the I'll the over for the of more come with and you changing taking you're business increased customers in. business may today. that's it maybe customers a organically and it types they size of years. How is of scaling

Donald McClymont

an interesting question. I that's mean,

steady. Our progress consistent been has largely and

they we to small days improves say that a are And threshold willing doing. us our what there's access know, so calls every, there to and where let's made, approaches and you very says, us that with our some we you're larger customers that us crossed large say, like I been credibility would you and hey, you when, give customer with milestone feel are know, programs. to somehow out

really We're impressed.

is on the market get let's we of quarters say, and that very deliver is Looks for over in of, the years technology to can this in quality is we've very something as to your reliability quality. like we and of We we've of gratifying right see pull the last space. begun can sort course differentiated that and that to are time looking deliver, the grown a sort from that market vendor the

a in quite is conservative automotive sense. market that And

I XX I been it's matters. mean, generally of it's repeat it's, it, I experience last to years happening record even. see the mean, been linearly over the I'll say again, gratifying a really progress would our speaking track very course So,

Craig Ellis

And then ask question. a specific helpful. That's I'll product

So how and product is the a about to But has. is company that the here area is one one. to going from you Radar, GEO, so of I'll you of Can inquiry lot bigger talk on stay just the there's been around away which opportunities with flip for that that engagement and your customer development going confidence acquisition and the recent in too? benefit revenues that get

Donald McClymont

Yeah. fully I the it's on coming but I mean, a is truly public, that's to specific in disruptive that to get in strong because do we're mean, we difference. happy track. have technology remains milestones yeah the make becoming who's space talk it executing. very a from appreciation about an way going that resonance we it's very don't market, with beginning The

roadmap world of leadership we addition beyond a next also their XXXGHz now. on only what helps Silicon in-cabin development have they're front-end Radar in The And It's us the really the that step in functioning XXXGHz available the position today. have the arena technology. in in they really because of

what to going right So us developing really to that's now. level take next beyond we're

Craig Ellis

it. may it be I'll to it ask Raja. the you, then and one for Got but last one And

there the either via raised that think quarter, conveyed type XX you. by on raise it Is quarter Just similar ATM. this the amount or in by amount? to was I was Thank plans million,

Raja Bal

shares XX additional and the at additional via place are particularly to the raise these did raise currently share there plans ATM share million QX prices. no sure. during Yeah, We

Craig Ellis

Got it. Thanks, guys.

Operator

to questions turn to further no at are this for There closing over I you. would comments. time. management back the floor Thank like

Donald McClymont

call. you the conferences guys investor Thanks, the you to everybody, weeks listening for attending and quarter. see coming see our and in Hope at next to

Operator

today's concludes teleconference. This

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

indie Semiconductor (INDI) 11 May 232023 Q1 Earnings call transcript