ARBE - Earnings call transcript Q1 2024

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, everyone, and welcome to the Arbe Robotics First Quarter 2024 Earnings Results Conference Call. [Operator Instructions] Please note that today's event is being recorded. At this time, I'd like to turn the floor over to Miri Segal Segal. CEO of IR. Please go ahead.

Miri Segal-Scharia

joining for everyone, you, us today. Thank Arbe's to First Quarter Call. Conference Results Financial XXXX Welcome

I to contain would that begin, today's outlined we Before like also release provided the harbor applies this in and today's certain remind on call statements, may forward-looking call. safe statement information listeners our

a Arbe's copy the If Relations company's the review section a PR, update. detail. Co-Founder CEO, more view begin of business Marenko, will and have with will financials the Pinto-Flomenboim, you call received it we please call of to website. the in over will not Arbe's turn in Investor Then Kobi the who CFO, the Karine

the we session. open call Finally, will for question-and-answer the

please go I'd like ahead. turn that, to to Kobi, Kobi over With CEO. it Marenko, Arbe's

Jacob Marenko

Miri our and joining everyone, China systems providing [ by Xs you, Arbe XXXX. about updates production being thank start sharing selected driving morning, look in of Good powered net I'd announcement soon. on us. the this a details to you. some ]. X to [indiscernible] forward Tier global for with scheduled hiring We by with exciting to like in autonomous leader more radar supply in congratulate you to We Thank

imaging OEMs, QX, tested safety. automotive for also free were including high-end potential of tracking been [indiscernible] Arbe space have advancements the classification production. their advanced by mapping. milestone a radar reached post-point to significant into in integrated and development This successful cloud algorithms, demonstrating These improve algorithms

net Importantly, end these this imaging HiRain of radar production the the of begin will by year. announced it

end this major in reaching well as our Tier production year. and We as the data specification. made and improving solutions our by for OEMs X quarter, Level collection on progress radar serial with first their X Level significant the Arbe on During work goal of of plus the X

ADAS with Japan, automotive complete other client for massive data to the is we'd initiative As a progress for update the collection a with There's year road wide part development AD this systems part like now safety. high-channel considered as that to an architecture. working of demand a of in count and advanced radar radar our solution large Japanese next-generation essential of

[indiscernible] radar an radars other ADAS ADAS array We XXxXX and array of least the that requirements [indiscernible] largest OEMs. radar requirements companies channels. speed meet Perception on from March, with market. emphasizes channel at publicly our in In the require and Arbe see similar the these major Few

by we sharing we secure especially top wins making pipeline We the industry and opportunity are from leading look We progress delays, our our forward are to confident are OEMs. goal in top coming promising outstanding more times this with expressed very worldwide. to with XX year, Despite updates soon. OEMs design X

that group us NVIDIA autonomy. key Perception to brought select path Omniverse it a the shared accelerate and for industry as together create are [indiscernible] Arbe. ecosystem WIDIA to cloud of design rich conference Collaborations of the applications simulation including part tools sensors Arbe Radar of to and a from APIs, GTC give the The has leaders,

driving Robotics, processors and chipset Arbe by showcased Horizon of [indiscernible] leading Exhibition their Automotive ADAS a computing X with International Beijing XXXX a automotive journey solutions powered ecosystem. part the in of at integration for autonomous radar imaging Additionally, AI partner of provider WiFi the China as

new reduce the and to best requiring This braking road for road address industry help positioned road crush U.S. for light all Arbe collision set fatalities are by of future AEB solution have revolution. passenger to drive regulations. with cars September and standards aim know, to the has you federal mandates there needed XXXX. of to been are We accidents developments certainly standards At and shift XXXX automatic safety X towards trucks [indiscernible] many NCAP changes, the These AEB, and effectively we same new these the important believe Euro proactive well As within our and time, measure The pedestrian in from safety. meet that the or map scenarios. presentation emergency safety including pedestrian. is safety all

to be is the vehicles even technology, of and the speed in standards weather success for leading key overlong pedestrians and and power for a the lighting at requirements. position advanced used high sensors A to for safety the distances. will adoption [indiscernible] and opportunity creates This tracking solution our in challenging growing which

We autonomy. safety over radars real like end expect of imaging level will that high-end the of decade, the feature X and by providing ours, XX% new cars

of Lastly, are we the we ramp-up on advancing issuance final Aviv additional Aviv bond to Stock convertible [indiscernible] Exchange the capital production Stock expected Tel in Tel on XXXX. in listing the the At working and an time, secure the same stages are support dual with listing the Exchange.

We turning point are prove we company. excited about the be XXXX to a potential our for Arbe, opportunities believe will for and that

to it the Now go CFO, over Karine, our turn over I'd like to financials. to

Karine Pinto-Flomenboim

Thank review decrease increase XX% a expected Total QX Negative The in you, was to detail. of in revenue an $X.X from recognized is $X.X for was workforce. of XXXX. XXXX. decrease and gross million everyone. Backlog and mainly XXXX. Kobi, XX to in was positive $X I'd to in million compared 'XX to more financial gross first margin the for a March in results our like quarter margin XXXX as as QX revenue million of the in hello, quarter QX a our was reduction margin be related and XXX% during revenue first

was of first Operating to QX expenses million. of with a which XXXX To labor in expenses the is a EBITDA, compared lesser $XX.X in the reduction million in in rate of D&O loss loss XXXX share-based plan. million insurance total $XX.X first XXXX. nonrecurring expenses of in loss was accrual compared of million million excludes This $X.X in exchange first increase measurement, increase operating and of increased $X.X operating operating net rates. our the release, bonus increase cost in quarter XXXX, $XX.X the items, $XX.X non-GAAP Adjusted compensation and The QX QX extent, loss Net an primarily to a offset an quarter quarter was of driven by to in compared million XXXX a million by to for favorable accordance loss the a quarter million totaling XXXX. of in noncash million in share-based on was compensation in Moving XXXX. loss for In expenses first to of of reported expenses. to compared $X.X of $X.X first XXXX. $XX.X quarter we

in rate expenses, first interest by from warrant in to included partially exchange is 'XX deposits offset quarter loss the compared financial a revaluation. Net XXXX. Expenses, resulting in mainly financial QX of from and of million This $XX,XXX $X.X income revaluation.

Moving sheet. our to balance

respect March with of Arbe short-term With no had debt. what $XX.X for in we previously XX, our $X.X million reiterate the equivalents and bank we As million to year, would deposits XXXX, guidance cash in and to shared. cash like

designing of strong remains unchanged offerings. with goal interest continued achieving in automakers Our observed we as X market-leading our

our XXXX in to half their lines are revenue annual to XXXX, We OEMs are production. getting the have as XXXX RFQ on strengthened in XXXX. of growth line all late our the to be our have as decision positioning exclusively be shifted into engagements expected XXXX. our revenue even The for full decision focus those well production to intention time the with though of based XXXX in chipset projections These revenue on by second followed in in

revenue of We and our the the to loss Adjusted growth. range to to well-managed on XXXX ability and for million to cost $XX fund are maintaining effectiveness $XX is projected in a loss. committed strong million focusing balance sheet, EBITDA be

we will to your take Now happy be questions.

Operator

first Joshua from Our from comes Instructions] Cowen. question [Operator Buchalter

Joshua Buchalter

going X wins points ask this or give -- year. year? what XXXX second achieving half wins of it in type an gives you convert got the the to geography you in time the from us are confidence about litigated and led we've the on of I the design what data Any clues going Any wanted confidence those to that line application update what but can the for? pushed XXXX. And the incremental or be the into these given that in maybe to maybe are past, to by

Jacob Marenko

Yes.

radar those main changed count charge Level think, players opportunities, the X quarter, any I something are a we even this alone point. key lot anyway, coming And a will at basically leaving braking, in higher a only solve the And solve have we change the on customer X were solution. and backwind, top camera in added solution. backwind the Level -- as now solve that [indiscernible] can to only numbers. use that and OEMs decision to that conditions feature radar our said, is for much or it. the -- us as the Even the basically, add market, Single of threshold But can RFQ radar change to in that X it is those multi-channel What between last were and is opportunities least, I all OEMs, and a for to OEM camera the this much of provide a way and understand automatic LiDAR the and for the in camera. that to that especially is that year cannot this fact last radar with majority some the the, need of gives gives to really the basically, for So pushed of it. see cases -- regulation from a year, expensive your the X++ were the kind our dramatic of high-channel imaging cannot gets and comfort not out LiDAR and and majority scenarios. . To market, because all too need high think, of XX the light basically, that is the

that into chips or of to that based XX the This consideration, And or also imaging really Japan from of today based radar, that are advantage high-end coming as we not we we already the legacy this solutions in -- we long that chipset difference the yesterday Tel our to are the is why on ones at of in from car are other Europe is course, and spec out from based really that least in tomorrow. spec companies radars competitor those imaging partners on main that market was cases called the RFPs we the like countries testing So of announce to and missing our RFQs, evaluation one will are opportunities will And well The TI radar. are legacy Germany, to solutions a of the I be chipsets of based them Aviv a our with, were from sure will as taking of our between based There our of on radar. [indiscernible] based that chipset and our existing raising coming the the -- is able on from loan the in the on past showing radar In design a are radar we Sweden, were win of everything of an that the coming process all and Israel. our opposed reason loan. of are all and we competitors chips the OEMs XX in as on channel condition think all contract. X not radar designed months, the engaged X meet China. Tier are This imaging win at market. that NXP is understand for shortlisted, the count with a

to investors allowed think, the a share our with winning is a are Our willing the that and this that conversion today contract raise the that confidence give very we close money price us I us to in XX% of to the also price. more are than close we fact than confidence to higher that loan are

I that point from year, company business -- for So to turning have we coming we believe like good the very said, will a a development very have we soon. --

Joshua Buchalter

Kobi. color, extensive the for Thanks

something what mentioned in like process feels last think qualification. to are you're that for auto-grade few need you OEM while. the sign-off? wins? complete I not one sign release, follow-up, is these the needs to maybe is the you grade It receiving full Can of before a press my that hurdle get then to be been going things to For and getting about case? you auto that close the Or completed And a you talk on has that

Jacob Marenko

together leading -- it I taking with with think structured chipset for us qualification our automotive process our GlobalFoundries chipset and are it the is and process engineers. us managing the on to of together

working they will to sure is to months It many process, finish be that for market chips which our that sure this chips this high more low that you're -- We the all conditions qualification, we assessment are temperatures by time make we doing that early now. you're with GlobalFoundries, as calls or passed OEM items. the in in end are showstopper a quarter, to mentioned few middle of in quarter. of to from in giving in very last the And automotive hours starting stand today major full their us and qualification they the that basically on and next temperatures this mini the before quarter, the able one. of it a going are technical to partners, in objective be in prequalification, qualification, frame the now make doesn't look includes in there's no thousands of finishing We less production

the So to that high bring and they're it's GlobalFoundries or chips a all those going major issue are for are with X I crafting our with that think us. [indiscernible] Global end not production, really through believe I Tier will select chipset of . OEMs that other with

Operator

comes question from Capital. from Our next Suji ROTH Desilva

Sujeeva De Silva

Kobi, you the elaborate you on Can -- involve? some what programs with the HiRain many that China. and of ramps, how those [indiscernible] talked the just times the And progress revenue? of the in about

Jacob Marenko

$XX is we preliminary stated now . get XXXX. million. that in are radars million, sure gave few programs we a with HiRain engaged this HiRain XXXX. So a And our the [indiscernible] for [indiscernible] already to make $XX on that customers and volume us will in order chipset based

Sujeeva De Silva

automotive? for are Kobi, those And Okay. automotive,

Jacob Marenko

Yes.

track them robotaxis non-OEMs, vehicles, of Some around and is X and vehicles. for the a that say XX% of is it I of trucks China no [indiscernible] HiRain would project we have passenger in the a rest of is for passenger won

Sujeeva De Silva

there? then secondly, -- involved? for helpful that you What's they the of Very element mentioned the Great. on And are multiple radar NVIDIA there inclusion? Or color, kind Is the partnership . Are elements Okay. radar? Omniverse color element. imaging there Coby. on radar and radar the looking Arbe's exclusive

Jacob Marenko

best The imaging only ran imaging not our only radar. is

the Of course, low is but out high-end [indiscernible]. low end the also XxX is there [indiscernible] for rate radar, there radar on imaging

Sujeeva De Silva

All right. Great. Okay.

and China, [indiscernible]? in Horizon further with think significance of talk together the lastly, market I way in you Tier working working with for about versus the China penetrating terms the maybe can of the and Horizon working like Xs

Jacob Marenko

corporation So allowed to can lot about I there. like what say not basically, we our that But are is NVIDIA. is elaborate a Aurizon

ECU, day, processor. of So X it's that's and radar and have building Tier this is By not into integrating Tier integration we our a [indiscernible] end same chips the central a the their X. there And as NVIDIA. the the with the compute taking

part China. of this is for condition is this this main kind believe OEMs -- of the there Horizon. have with that We And a we integration in

between ECU aware, and are that market controlling the China. market they probably think divided [indiscernible] you're is basically Chinese the NVIDIA I in As

the fact in that I with both of lot this with think, a of them, integrated gives So are us advantage essence. we

Operator

Our next Jamie question Lafferty. from from Perez comes

Jamie Perez

little gaining could the we've to hybrids follow-up Chinese you us bit question a that hybrid -- and seen some also focus couple the on do price and a mean, whether exposure lot of especially my with for low ICE you going have cost. to last is for affordability, now I any I color is is adapters to ship Over you vehicles? a it, EV in quarters, And and think change the give of share. a more early of

for power? does what that . mean So could you me margins pricing and your tell

Jacob Marenko

are great those questions. think X I

EV of So shift. first regarding all, the

So think the this that the of is I part for reason delays.

to So take on quarter expected strategically Level in last of be And X++ the EV new to according OEMs were they that of state and -- of And year, totally to XXXX. to EV. the would basically we, so on to programs of will X quarter solely they delayed. that, Last focusing majority move market than the -- like features last decided Level by launched customers' 'XX, the and all moving almost all and the a to to price was charging this will on. due understood those due basically shift adoption EV Level X that of problems longer the that into reevaluate due brought schedule the

those majority As hybrid. decision the and both of course, a took we the EV for to it end on see regular as, of as launch QX, engines the by well services of OEMs

we delay, perspective, go. this the from but caused change on now. right now, right there's It are the So no

question I we price net and X, than also are pushing at The interesting. the dramatically radar I And LiDAR, is really least sales for dramatically the second affordable this that think us cheaper dramatically is source. is think, believe cheaper for than The helps on pressure and radar, imaging say, AEB is you I that standout. that better raised, other that for our would sensors Level

Jamie Perez

basically, So versus passenger. been has it you I so price you know of -- now. advantage -- Most have of have focus a radar -- on said, we the most like

transit been you commercial talk vehicle doing -- I initiative about better. on in have market the any? mean, the could maybe electric a little market, commercial think to I if or has bit commercial you or the

Jacob Marenko

it's of us, are are most focusing but Xs not We not focused that. our our Tier not -- -- on

lower project and. [Audio China, some and higher of is not But cost and adaptation is is on Western volume bidding any won of least Gap] projects. have company, of HiRain is world on outside tracks the China, Magna with So in a we trucks integration truck at we trucks also the the

of for economical solutions of as kinds They now. these make it

Operator

Maxim from Matthew Our next question from comes Group. Galinko

Matthew Galinko

more a you your support the this to you to production investments around maybe into could of I little detail to through in is make provide to I think was make as point back or year. And need the plan you half issue? expect you the note move hoping

Jacob Marenko

basically service already or our expenses, production done. majority all were So of

to quarter, was related This burning item the had QX, increasing of we that last capacity the boats.

able . So is already the are But year. of us. higher now behind we think are related will of and ready production, expenses for to are next are revenues. supply to majority done them much CapEx that we which all volumes I And be

Operator

final well presentation. Ladies and our for thank today's call question today's as today, as We everyone be that joining. conference being ending gentlemen, with we'll for

now may You disconnect your lines.

Arbe Robotics (ARBE) 22 May 242024 Q1 Earnings call transcript