ARBE - Earnings call transcript Q3 2024

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Operator

Good morning, and welcome to the Arbe Robotics Third Quarter 2024 Financial Results Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Miri Segal of MS-IR. Please go ahead.

Miri Segal-Scharia

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

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

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

over for question-and-answer CEO. the we Arbe's that, to Kobi, open please Finally, go it session. Kobi the will ahead. Marenko, I'd call With turn like to

Jacob Marenko

and Mary. this you, call, this progress are Thank you thank morning, with and quarter us. our we've Good for share On joining Xs happy OEMs. the made to we everyone, Tier

seen growth First, and of engagement. in depth number we've OEM our both the the

by and we XX marking the perception moved X in significant OEMs, have where which stage -- big process. their the selection development processing, milestone to have with quarter, demonstrating dedication base entered algorithm the OEMs worked project sensor XX advanced data of This in investing a and

growth updating pleased progress. to line to look forward in While Arbe forward are and we sorry, longer you the we with been We will for as continue we the quarters. for expected, advancement drive time these some -- of have these to the make than projects update look believe coming opportunities

system of radar. camera eliminating radar chipset manufacturer validation powered safety of geotrack highly the major radar next-generation approval, an leading final next of and high the OEM. OEM of while into plans radar, a reliable a LiDAR in to significantly demonstrates of is quid-suit, safety weather production using have resolution OEMs OEMs service. Xs LiDAR better a offers developing important fourth our maintaining anticipated high all detailed standards begin for durability to with our to manufacturer conditions. with perception is working which our cost performance fusion, their been radars to radar-based safety. improve and by advancing combines that we've quarter offering system by one technology. HiRain, alternative our of Tier in year. This step sense to and for our a a solution its ADAS Chinese an and integrate lower truck from Pending This at This This imaging project imaging and quality benefit lighting mass enables need Next,

a advanced to affordability also Additionally, Tianyi automotive. an another ideal Sensrad, radar development year radar demand of additional growing and the for devaluation. The the chipset Transportation Arbe highlights in agreement Sensrad into Technology in XD imaging announced of China. of imaging on full the it of Xs formal the This makes has based adoption. radar for beyond entered agreement industries selection solutions Tier provide chipset mass our to by powered one our it choice radar market follows

environmental in solutions These sectors. advanced We a industries of market safety, for an recognize and potential our are seeing interest including monitoring. other applications infrastructure, increased of radar radar surveillance transportation variety and automation like the new technology for

and the OEMs. our the leader and technology that attracting our market expand explore Tier multiple emerging stage will industries. expanding advantage addressable trust validate these innovation additional us Our in This total leading and drive engaging a market manufacturers our our within share are actively to solution. They These our demonstrate enforce new to competitive opportunities. Xs allows place across advancements as verticals with set our highlight position innovation, customers and for

of offering to one $XX offering million cash happy are investors part will step exercise XXXX along offering We additional who received of investors. marks our public production million an Their earlier these an to milestone-linked of in with in proceeds up the was and long-term major Woil. The new subject our completed we a cash were investment, positive XXXX. to production aim with planned $XXX month ramp-up we upfront offering, led by closer move Finally, believe funding led support million AWM $XX we as report XXXX. important to our this be as to that of successfully and flow

demos will our with would meet executive CES face our meeting from X there. XX hosting We you real-time team live of AI investors at best-pace to Lastly, be we will January mapping. January where be to love

Now over review it the our I'll Karine to financials. to hand CFO,

Karine Pinto-Flomenboim

$X.X or I'd hello, the third results Kobi, QX for expected million from to revenue everyone. third you, in XX in gross reduction with revenue level to $X.X and more in recognized of related XXXX to for of to revenue like financial September was decrease was compared in positive primarily in QX $X.X review Total million $X.X margin coming in as XXXX. The margin cost $X.X quarter is gross million Backlog XX% as next the was detail. was our of Negative be margin quarters. expenses. a of a XXXX. fixed gross Thank and million XXXX million, decrease quarter a QX the

investment loss by increased $XX.X the in and research operating we cost third Moving on our driven cost million and strengthen QX to XXXX and total million as million and in loss in labor operating XXXX. subcontractors primarily in of development, third software the our we $XX.X was reported was compared $XX.X to expenses In XXXX. in operating QX $XX.X Net production readiness. Operating of quarter an loss the increase from chip million increase of readiness of of financial expenses development, third and towards expenses XXXX, for million expenses. the quarter was measurements, advanced our in safety in certification nonrecurring included for increased the to in and $X.X to compared million EBITDA loss million XXXX. earnings million quarter compensation XXXX which quarter of quarter conciliation million net Net release a a in of exclude third loss third $XX.X of of third loss. of share-based QX The a to for in Please XXXX items, see XXXX. compared $X.X XXXX. net non-GAAP loss loss GAAP of This $XX.X the quarter is $X.X of to in expenses. Adjusted a

Moving balance to our sheet.

would Arbe our we reiterate of XX, had to million cash previously to year, and what equivalents. shared. like respect XXXX, As for September in cash $XX.X guidance we the With

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

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

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

will be we your Operator? happy Now questions. to take

Operator

from with the Capital. [Operator Suji Instructions] Roth question comes first Desilva And

Sujeeva De Silva

of progress be some models? that in given the thoughts ADAS pushouts on programs, a give imaging is here. the implement radar need The dovetailing How of OEM there the Kobi. you or EV can to radar? us Jumping would delay adoption Any with your perspective helpful.

Jacob Marenko

Yes.

now because on eyes-off it from the I highway, major I was was stuff. OEMs market of in At driving focus But production ADAS think on overall, as achieve the are track suffered all all EV that probably delays. the lines place, the the aware, So chain, time western driving, on programs line those supply believe you're of in of with beginning, then hands-free it of to the we the have back programs. major and because

factor radar that. imaging Selection of for key is

the do you imaging safe radar is gives way a So real the will needed. range highway that by on driving, that long driving the hands-free using eyes-off be only that is to

in radar to this a estate -- a has Dickman, radar XXxXX minimum Dr. the expert Mobileye. must that that of which year, channels I've in in order think solution conference ADAS said say, I stated -- and have have would channels, it leading said real radar long-range in Jurgen you this is system, orders automotive early in Berlin. that I basically

with some train a already XXXX, kind situation listening service think XX all the do a although rare half the with the -- weeks even of that, and in early also believe order system before that the I know part made basic imaging lied would selection believe launch I an a yet OEMs first year-end, be And now, decision next car ramp-up. driving And of and next decade, by in that this in second has will point them customers and is year. And definitely few see the cameras count selection -- we all would -- like out, -- think, be a of them the QX to that collecting 'XX the a that left, from plan real to of start select this the data following We I of few 'XX of we a that will view. third will QX not hands-free to take the year will years in a feature their decision selections only took high-channel major the that 'XX, starting algorithm radar, quarters. year, full be radar we

Sujeeva De Silva

point specifically, them have from of Any on that's geography as That anything actions maybe there makes Kobi. would and this? demand sense, initial you'd being kind specific front the catalysts? is Is be a models. in -- that the -- pushing to And act regulatory there regulatory their out to

Jacob Marenko

Yes.

major is any automatic that's long But driver lighting ADAS the condition radar, think emergency a radar the this regulation few an braking braking. as full for this regulation States very anywhere won't up for with the a hope in change for have we imaging in to to government. one there in is imaging Europe, OEMs as pushing to that new well readouts ability that adopt range. a We So long-range

Sujeeva De Silva

switching over Kobi. to non-auto, And Okay.

can towards color and with to unit cycle You market. revenues you perhaps imagine time auto helpful that sales in in about sales and whether be and sooner. Sensrad but talked China I the about there the non-auto success the GE. the any talk cycle, would in versus come there, Can

Jacob Marenko

Yes.

but in market, less cycle sell think auto, the production like in or is is that I more is there non-auto the shorter. time to the much

in be then years, years. the the will production sales year but another auto, which take X radar X wasn't start to X can that cycle So could

defense in definitely the can radar will opportunities now and say come seeing but other revenues revenues technology 'XX. And that also and our in dramatically the we start in for I the verticals also in same, 'XX we sales might that cycle is definitely see earlier.

Operator

from [Operator question. Instructions] do our no we a Looks question concludes come as Parsley session further The a next investor. this question-and-answer private will questions, Dan With -- like have

Unknown Attendee

in the end mentioned by I be -- have end just for the of a And we November. XXXX your XXXX, question in are. that at you'll on production of here you full forecast and

So And you XXXX. in please give ramp still I'd be insight comment production any on you're if 'XX? track to ask to in of being us to can the to starting likelihood you as in revenue full

Jacob Marenko

believe And Sensrad. to year, project after, shipping start will we basically or the to less -- right of we on so of we be chipset time our by ability start the December, on. that track to I production we have early table. the think and chips holidays end I engineering shipping mentioned our by will we able next think, of We samples are be more with will So that

revenues so expect stamp the quarter of bit second to 'XX, half 'XX. a up We earlier, ramping of last on maybe

the 'XX has the said manufacturer. -- HiRain with car Chinese the with And so we leading as with like end that earlier, of project

Unknown Attendee

on Okay. Can you follow-up that. your traditional combustion And vehicles? vehicles are auto a on to dependent engine how EV comment sales versus more

Jacob Marenko

not. are We

the ADAS of OEM or combustion radar of vehicle. think can about be I get new ADAS on is EVs. on that engine Will basically, even only launch would the ago, on kind features question about a would major OEMs you only not any what's a It's service if would the EV? imaging it. OEM? released The year advanced plans the ask full they a into say So

go China, to sold with a XX% be think the something believe EVs of mix. probably XX% West, new now, been I In it that I right already will on of slow see EVs. our will new But features we only to EVs, uptake the cars a where ADAS that's like

Operator

question. that for concludes Kobi for Morenko closing our over any like This Thank back so turn the would question-and-answer to remarks. you much session. to I conference

Jacob Marenko

we and us in We events. investor@arberobotics.com out update for were or We you best We to continued Thank person several schedule updating on to prepare Please love coming our have you additional partners, weeks. discussions. you. the pleased for meet forward for Thank our you in Look us appreciated. employees as your a website for today at meeting. visit investor all. to dedication our to look deeply is you join contact progress

Operator

conference The Thank you concluded. presentation. has attending today's for now

may disconnect. now You

Arbe Robotics (ARBE) 27 Nov 242024 Q3 Earnings call transcript