INDI - Earnings call transcript Q2 2024 | indie Semiconductor, Inc.

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Operator

Good afternoon, and welcome to indie Semiconductor's Second Quarter 2024 Earnings Call. [Operator Instructions] As a reminder, this conference call is being recorded. I will now turn the call over to Ashish Gupta, Investor Relations. Mr. Gupta, please go ahead.

Ashish Gupta

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

Joining Co-Founder and McClymont, Bal, Don Investor me are today indie's of Development CFO Chief Relations. Head indie's and and Accounting Tyndall, Officer; Mark Corporate and acting Raja CEO;

reminder, is recuperating As medical our well Tom absence. of CFO, on Schiller a currently leave

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

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

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

in from expenses. and operating These Finally, loss, fair loss or the discussed today non-GAAP change the financial measures net are gain non-GAAP values, guidance metrics EBITDA. such may its and amortization, interest as tax results of loss corresponding exclude benefits and gross depreciation margin, on non-GAAP or consolidated noncash income GAAP non-GAAP following share-based from items: measures based certain expenses, and compensation, acquisition-related income non-GAAP expense income

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

Donald McClymont

months. you to start forward next of to Tyndall, meeting to Thanks, and Relations all new Investor Corporate welcoming want Mark and welcome, everybody. over Mark our indie. is Head I of by the Development Ashish, looking

briefly overall and cover first before the of in the the me technical achievements. our business context environment market on Let automotive performance revenue focusing

During million, from of previous at of indie the total achieved flat end the in our of lower $XX.X second QX XXXX, outlook. quarter revenue coming

Our results approximately macroeconomic over XXXX. forecasts unfavorable XXXX million just were units where impacted in automotive global consensus conditions the with in line currently comparison market vehicle production, units in XX XX generally with projecting for million to

lower vehicle purchases content. thresholds and global given Additionally, vehicles, negatively prioritizing OEMs automotive been inventory ongoing outlook. factors, has semiconductor revenue which with to which the consumer our for stimulus persisted in our second vehicle coupled electric have reduced reduced consumption, led quarter, pricing programs, defeatured prior These against impacted

We we that to with XXXX third to is levels poised growth second this growth into deliver into Despite automotive will now status, as the modest outsized XXXX. of the in XXXX market our over analyst the headwinds, reach single-digit the these the new product launches recent negative second and for in growing indie above and as quarter, estimates, trend spill in to believe move of reflected current XXXX. flat low anticipate half which half growth we industry semiconductor through essentially customer project most

combination these all is looking the only quarter. LiDAR sector, sensors, key unique being point vendor ADAS as Now X and differentiates ability second any Radar, ADAS I our competitors the the gives unique business the its of offer want that the in Vision, of sensors. from at to In which out closely to itself Ultrasound, indie chip us progress offering and

single multiple the into ability to ADAS modalities their enable architectures gives a the solution. chipset will This for scalable that carmakers portfolio. This are across processing demanding deployment fuse us

upcoming quarters continue discussions in with will to sensor specifications progress. updated fusion we for the define our now next-generation as products. AI-centric in I key are We to keep OEMs you

range Starting with labs, DSP including that have been completed also the volume being of extremely since customer, environments, doppler XX industry technical which our to our surpasses the to before customer, final gigahertz and achieved functional benchmarks. I'm the current we evaluation in verification is millimeter performance, now live This all-important tested and lead our is by happy which program sampling our of has products automotive testing flagship lead share our the production. wave application radar radar in milestone full currently stage important

signs here, radar these gigahertz to within to track stress IC has this high-resolution our I of on application also this labs, want delighted our Furthermore, sensing in that firmly I validated. the am samples bring and production vehicle radar monitoring have for dynamic indie and RF previously front-end been challenging time vital communicated. advancements in-cabin developed for program to XXXX been XXX received keep skills functionality

indie's demonstrates radar indie's for beyond. of cornerstone a for in high-growth and This which is clear the market leadership next-generation solutions, XXXX trajectory

directives, focus regulatory as recently nicely will Moving X indie's result on in industry particular, major key in of a has vision-based which favor. play sensing, received

in road light AEB, emergency National passenger or that would cars in XXXX. trucks U.S., the safety First, regulator, braking Traffic NHTSA mandatory Administration, become Safety the announced automatic and or the all Highway for

the many vehicles are stipulate the conditions. nighttime requirements mandate first AEB be global that NHTSA's AEB, While the to is new aspect it today progressive with pedestrian regulator equipped already of extended is to

or sensing insufficient performance radar systems today's This detection such and is resolution image and deliver and deployed for required camera sensors none pedestrian processing at commercial the the required radar operating to lacked significant sensors today's gigahertz, the have signal lowlight capability. XX performance and sensors image exhibit of liable camera long features, because mid-range in

It recently SoC has scheduled OEMs accelerate late Last signal sensor NHTSA's which only a for production feedback. newest confirm our preparing of sample our positive opportunity computer features and also significant exciting launched processing vision proprietary that the ramp solution that sensors to been we to particularly our excited high-volume now sampled by perfectly can has number with shared image selected vision iNDXXX, in and customers, quarter, I'm customers XXXX. key address for to an been were to we These global the extremely and shortcomings, iNDXXX to requirements. to programs not

the and for achieved the iNDXXX, tiny win major applications of proving and these include the non-passenger which range design cameras also to iNDXXX application, and OMS, diverse leveraging use maximum finally, monitoring occupancy at second X but the demanding multichannel capabilities to as is first e-mirror Surround per European of perfect quarter. the low systems, will wins also power vehicle, of vehicle high-performance the and XX OEMs iNDXXX's dynamic with the the Some applications successes additionally, up for a solution high in ISP footprint View as

after are iNDXXX this indication for clear the quickly so the availability major going wins forward. product of a the of contributor indie These as revenue a of potential

the initiative European July this year. Assist regulatory Intelligent mandatory Union's impactful ISA, European is second requirement, now Speed which in all The as of is cars new

indie's exceeding vision iNDXXX. to a may a indicated detection reduce speed low-light positioning, by impetus up mandate XX%. driver of and the strong further the This view European computer including fatalities ISA local seeing superior leverages speed limits. camera for ISA road In have GPS to for that the pull-through with underscores Studies ISA vision for are warn capabilities, need latest-generation we signed combination systems, vehicle's sensing front for

volume at previous momentum we programs shipments In applications. Our GWX the for for monitoring started X vision our or design driver continues Group. also second SoCs mass the family unabated, quarter, for production generation win Hyundai-Kia particularly

the in expect this Additionally, begin shipments China. to Cherry of Geely, Chinese second production multiple Nio, we year, BYD, volume to including half Audi OEMs, and

UX. experience Turning to user or in-cabin

wireless for that video and lighting bandwidth can consistent SoC a Our personal request OEMs deliver more power can charging light solutions for that stability more and and multiscreen solutions networking wired environmental globally improved deliver reliable under discussions conditions. and solutions reveal More changing and with for custom ASIC signal devices, delivery output thermal integrity delivery or more.

SoC to OEM power are ASIC contrast, excels where and our of our often in deliver mixed continues this by an limited These underserved customer pipeline. indie BOM-efficient competitors and incredibly design to win requirements with In they're area implementations expand capability. cost, signal design difficult is and

dashboards. design X programs later year wins in OEMs North multiple quick commence with secured as models For succession. example, lighting America's of QX, and and largest new volume applications, as production these in for OEMs this doors launch These we quickly major now in-cabin console, such overhead will lighting

to multiple new solidify secured leadership have position wins in multiple we XXXX. design our continue lighting practically Additionally, at brands also we and that all Korean OEMs, shipping with early Chinese begin will

enable charging to For UX, of latest faster insatiable personal we for consumer higher wired power meet continue OEM see wireless and standards and the demand demand strong in-cabin for charging to to devices. the

delivered through for a we will pleased Volkswagen, in local I'm alluded that X to we Tier win OEM the and ramp. capability our will to wireless charging XXXX and be -- systems production Here, was India, last quarter, leveraging for their share

shorten is reflects similar multiple and our typical long well system differentiation milestone this shipping that am examples incredibly design which that chips of, tireless we but indie the global progress as There significant achievement dedication the customer announce million cycle. year This to has as of indie the our bring of to a base. our products the an been to I'm I pleased achieved have cumulatively global XXX broad innovation also our and recently designing clearly proud that to team. allowed customers

only with securing capitalize exceed with for in Global bright positioned megatrends, to global In $XXX incredible an the not OEMs. the muted S&P are billion in XXXX but on actual surpassed major currently despite in the X design to mid- current wins trends projecting to automotive the well and product summary, remains automotive $XXX development, remains and value automotive these partnerships executing total indie environment, XXXX. also long-term billion we semiconductor opportunity the in key extremely with strategy

second have that key XXXX, quarterly Vision we industry-leading to just growth growth we will progress when in me outlined trajectory. anticipate into our we a Radar the and of programs in makes an half confident with together the XXXX return This, deliver accelerating made XXXX sequential

knock-on experienced some in to has not the production as that temporary conditions. designs. modestly. have macro the of simply lost indie of want start delay created programs of I has to effect our shifted And overall portfolio we across growth fact, any a While short-term some trajectory stress the

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

Kanwardev Raja Singh Bal

outlook, profit from mix. gross quarter R&D end expenses Revenue forecast. million, second below SG&A roughly operating into while the our XXXX as XX.X% coming translating the of consistent plan, product million, which margin, at million, to Donald in bringing Non-GAAP total million, $XX.X low $XX.X unfavorable our of was million, was outlined. year-over-year Donald. was $XX.X gross was resulting slightly a with primarily $XX.X at was for Thanks, an $XX.X flat

on our a net and expense of $XX quarter interest result, As net With net of our million. was $X.XX million, million base non-GAAP share $XXX,XXX, loss per $XX.X was second a operating XXX.X was loss shares. loss

Turning to the sheet. balance

During cash. million and expansion we total of the with million usage incurred operating of through $XX.X exiting in the total cash CapEx quarter, million $XXX.X activities $X.X quarter

Moving our outlook. to

the At million to the time, third of the growth million. approximately margins range to quarter the we of modest expect expect automotive midpoint, deliver net OpEx projected outpacing industry. Below expense quarter-over-quarter of within line, XX% X% the we of For no the XXXX, or at gross and of $XX $X and X.X% X% taxes. interest same we revenue anticipate

outstanding, the the net with XXX.X shares the range loss midpoint third we for quarter. per Assuming share and expect of $X.XX revenue million

beyond. ramp based and a to return Vision we the our production plans industry-leading further anticipate Radar ahead, programs, on for growth in trajectory our and XXXX Looking

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

Donald McClymont

Thanks, for strengthen, design closing, driven market outlook headwinds indie's by industry momentum. to Raja. win strategic continues In our persisted, the automotive have while

user Our indie remains and is at focus and customer market the excellence experience us with automotive the in engagement transformative on solutions operational cutting-edge megatrends. the electrification, of forefront ADAS, spanning distinguishing innovation, industry's

next our We're to and conditions market concludes journey our future company. prepared powerhouse improve, as positioned That ideally capitalize the global continuing to semiconductor automotive excited about opportunities remarks. our on remain build

Operator, line please questions. the for open

Operator

from first The Instructions] comes [Operator Desilva. Suji question

Sujeeva De Silva

look then characterize So the call digestion color the would XQ at half. is? through when early are you we XQ overall there cycle by they maybe or And second auto Any in any I can start worked 'XX, where be the helpful. demand inventory and Donald, in we can auto may whether it be environment for with qualitatively? as already

Donald McClymont

are recovery going that from year. And general that, But at will this we're point, significantly seeing of That through expected. we inventory It the QX. mean, the us inventory we certainly So situation. longer case was the we allow forward as a the little a little than second more I persevere prepared said did situation in improving. expect the we into remarks, seeing half do the flexibility

Sujeeva De Silva

then factors place have revenue other timing what guess, we frame, see sense program with of looking lead if time as variability there radar well. contribution? was in the the start would And to to And ahead with there? 'XX helpful any and relatively that you I 'XX some the impact program there the years? along do that if color model commencement Any it's of can Or would fixed in be programs,

Donald McClymont

Well, very this program. a is large

lead through So key our customer, it entails ramping OEMs. multiple

So say, significant to find some, it takes that get confident we full amount about let's time that will situation volume. now something very be But we the of are ourselves in. to

progress parts as prepared made We've in testing. the they've in remarks that back, are process. get been mentioned whole I very we mean the super-fast also, successful to through

amount comment certain the on of early customer what lot that that timing feel a really and we our We there's with win. who's we have of confidentiality because of execution out a is exact won't risk So getting that.

generally the positive the to add through this is expecting half But the again, within really about which sense and that, deployment in situation. end well, ramps question I'd it has out vision a year next that the really feel year, running the are the we our say. would for of we're second mature those happen also reasonably programs. customer, into been is engineering I The and risk products really of

Operator

question next Ross The from Seymore. comes

Ross Seymore

thought to up certain us, market and bit half much part. get about in ago, the as you talked growth better Just on being a a by that you XX lot company-specific were a you extent. we happened and that of when back kind get question would as Suji's certainty, also hasn't But of it I follows talked everybody days to question the hoped. a the ramps. driven in But confident that

confidence happened they degree, than the given guess commit company-specific willingness that, to to what or I the some And that if uncertainty of those things you ramps? today? to the hitting be happen more So to what didn't side to seems importantly gives radar

Donald McClymont

so -- mean There I was nothing missing backlog. lost. programs our from is no

that about everything that confident before very we are happen. We talked will

We in have some delays seen programs.

a delay. inventory probably from restructuring caused fact from consuming with causes are that companies, people products, of that's not the certain the certain they're read delay at anymore, of are programs, amount major lot certain You've automotive which for a missing who where about little also a the generation a the market, there us some in amount coupled and also of older

decision speaking, they or will generally They of program are are, conscious let's nature on in ramp. Any rather But delays than track. cancel a delay the large say, more it. organic to some

think I that's the not case. been

So knock-on of And it's really, macro this that's a in just caused slight case, feel about effect good that. the a we delay.

as wins should of super nothing excited seen of feeling what's design higher We've about So and lot course coming. a we're also even quarter, momentum and which our future this forward. through we lost, the move drive

Ross Seymore

to than burning behavior returning low of in had let me despite inventory ridiculously of the to of the and about gross the semi auto specifically. Raja, say, from heard significantly people for on some getting the We've shortage levels And your issue they follow-up, -- probably side peers exposed past and other expected, profitability pandemic. middle well, Xs the that margin to all then either the I Tier kind as complained my guess the about down you lower others and

and And that So margin are next to one, there follow any would gross you lead year? trajectory is the pricing two, seeing that? of for on kind

Donald McClymont

as spite we during in material we No time of yet for that. pricing us can allocation mean, the impact what see. I that we're just back Yes, see sure to happened for do in situation.

Operator

from comes question Anthony Next Stoss.

Anthony Stoss

Tom wanted with hopefully, short Donald, start back offering be in the wishes, Ross' just follow I to I up my on he'll to best question. order. want

I degree. think talked dozen, programs the this you year. new kind you've launching In dozen a some of QX, between half past, dodged it QX a to about calendar

-- the equate a a were live, wins On you to shift where have delays live, going to the any going just out figure trying you're maybe the go quarter? I'm thought shift saying to going in Just ask aren't detail to they're more there's them, call, you some lost you Can production on ramps. to go that you said is.

Donald McClymont

just Yes. the I a effect of macro it's situation. knock-on mean

We than more have little a product are impacted others. seen certain which verticals,

in that's offset indeed least last at have quarter, some Some by cases ramped, additional and the been inventory consumption. in some

of some So them have happened. already

And that's you start, it the because ramp through. to will once then opening begin nice you're spigot and

and XXXX. through delays these again, second that perspective, and slight So some the programs, strongly drive lost, expect nothing half pick in begin from our will to we up there's

Anthony Stoss

the wood, I those And on those past win, then provide wins talked can Ficosa. think in helpful. track? top be update radar still Or Are first the any you've on just major on and you of Bosch would about

Donald McClymont

to on Yes, we're They're next slated much year, still those those very with track. happy really on and are progress ramp the programs.

Operator

Ellis. comes Craig The question from next

Craig Ellis

Donald. question each when I'll us they follow-up Or first in programs to just Can off start we quarter? kicking sense go phased there those on the with some radar Ficosa. through expect during XQ? Bosch of year? give all ramp you to it the as you'd will Tony's for Are more be on and a

Donald McClymont

specific I ramp the year. phased. are won't they're whole but throughout customer indeed No, dates phase programs, they for we mean give

Craig Ellis

third wanted And to the I cycle to then, the Raja, quarter. gross back guide margin for

in So why talk quarter-on-quarter. bit down just gross gives up be margin? would the you it of some takes revenues that Can with through little were a and

Kanwardev Raja Singh Bal

erode next the result in that downtick unfavorable We some quarter. mix we we're quarter. that a had primarily slight not of product the saw So margin and gross was expecting to QX, in

Operator

The next question Tanwanteng. Jon comes from

Jonathan Tanwanteng

decontenting might that volumes it? think your think Are forecast want backlog than the and through were that's impacting, wondering your that into if 'XX? when how indicated especially the they before are could or how they your And guess, and of customers as I is telling you you reverse? they lower go trend was I go you you

Donald McClymont

and is some the for It's lower-priced point. we from there's puts that market general year. see change. I say, are, a mean, It's don't due just a short-term this takes buy to at shift specific a generally that reasonably in that It's I would point, at don't really versus the big mean that this of see I us. those issue not forecast see. bad that impact seen we cars, in XXXX We because a can for But short-term fixed trend. priced really next where really to overall. appetite and consumer higher increasing we've to cars semiconductor content obviously, more

Jonathan Tanwanteng

then incorporates as fair that you And flat result? declining it you're we doing. launches revenue. the that into existing up and QX to a look some possibly new that products into heading had to that QX QX, of -- the imply assume I is into as that Is are

Donald McClymont

burn Not by off our areas mean we declining, in went there is is still has spot quarters, been conservatively. of to portfolio, hope certain now to alleviated program largely couple need no. It in guiding inventory But but which new something I some last through offset But compared manage. of we're yes, we still we that product the what ramps.

Operator

The next Acree. from Cody question comes

Cody Grant Acree

there between down contract consistent. for But We typically pretty being XX% and your a lot talk Can up And his with contracting, X%, to revenue. bit to quarter. seems be your my and we with maybe it dichotomy a product a mix about revenue best talk being usually Tom this recovery. don't product mix that revenue about

Donald McClymont

Yes.

good a that's point. So

quarter we So quarter, down contract this a revenue our well come as, last that as has trend pointed total as total continue. And you NRE expect out. percentage of maybe to as or

business. ASSPs time, over a ASICs of custom opposed in towards see we're more our going fact, to as In to shift

over down term, will And the so expect we over that come long time.

Cody Grant Acree

December the expectations September versus are product? your for periods for So contract and

Donald McClymont

flat Fairly what we have to said.

Operator

more for Ladies questions presentation. no time. and has gentlemen, this The conference concluded. today's there Thank you are at now attending

disconnect. now may You

indie Semiconductor (INDI) 8 Aug 242024 Q2 Earnings call transcript