MBLY - Earnings call transcript Q4 2024

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Operator

Greetings, and welcome to the Mobileye Fourth Quarter and Full Year 2024 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded.

I would now like to turn the call over to your host, Mr. Dan Galves. Thank you, sir.

begin. may You

Daniel Galves

contains everyone, Full Hello, period to Fourth today's Mobileye's December business on to currently information refer on Thank XXXX and actual factors could accompanying as the uncertainties. we Earnings involve results and and discussion that which cause note materially. Year it. specific XXXX. see environment press to the statements statements Conference release, Such risks Quarter based XX, the you. Please welcome forward-looking Please Call ending the additional differ includes for that

call, GAAP provided release. this GAAP in A on to we non-GAAP of earnings posted Additionally, will refer both reconciliation is our and to non-GAAP measures financial figures.

Shemesh, today Professor today CEO the joining I'll Shashua, Strategy. is on for to the call us call Q&A now And Joining and Nehushtan, turn Business are Development CFO. the of Mobileye's over Mobileye's session Thanks. EVP Also and Amnon Moran Nimrod Mobileye's and President; Amnon.

Amnon Shashua

continue higher-than-expected margin were talked Chinese for from to OEMs, call. order our review expected ASP's domestic was with we and of expectations. X% everyone, a than EyeQ aligned better related the joining our Hello, QX. quarter. The above bit versus and beginning our levels about who the July. volume in volume with expenses back to gross the operating the at thanks Starting results. was was aligned earnings largely and was closely QX upside with up

approximately detail stage. cash non-GAAP in half. a Operating the double income previously despite finishing revenue cash was by earnings more few That margin significant was Operating XXXX. in but $XXX almost cover was the XXXX, XXXX, by driven points primarily we the and compared QX. of disclosed XX% in up first year-over-year in to the inventory declines will flat flow than set X robust in flow period will experienced Moran our higher minutes, Operating million. I digesting guidance net first was

prefer that from our the our customers the for is approach to full a would negatively and risk we that earnings. for [indiscernible] affect if conservative use we indications take guidance year, but uncertainties higher, be accounts

XX With by range we forecasting production due stabilized months than we meaningfully OEMs assume volumes remains had assuming forecasters. to in assumed low to third-party million-plus than ago, deterioration second to the the they receive. for we're a customers top higher simply that Chinese $X the assuming have the of annualized expected half Our visibility. difficult several XXXX worse appear that were but Volumes global level account from visibility in than

half On demand On are run we go their SuperVision, risk about we that we assuming rate month. of Zika, of at are which Zika system on currently is vehicles in-house the choose XXX, to account to on. running for market with the electing the per Zika X,XXX could are units current to for end X,XXX

geographic indication no at we their further expansion. X unwilling have but that surprised assuming this are are we current We volumes posts to is stated plans On Postal, to are remain despite of again. levels, be for planned,

seasonality. to Turning

for As of be is a our guidance, midpoint of percentage XX% full of full would lower. Typically, assumption QX the revenue it year year. the the revenue

macro further conditions even outlook that achievable full us is confidence gives the this So some. year if deteriorate

Turning side. to business the commercial and new

OEM parallel rate key for our won due assist volumes. with customer REM with with seeing recently We program We some new from diligence strengthens our continued customers in good same global data we are ADAS for with data SuperVision. core and harvesting at very deal harvesting with leading a This multimillion cloud-enhanced global unit driving significant another opportunities business continue and the win high years to have new a very customers.

stack. AI This our EyeQ in role plays a generation X key data

harvesting growth have for cloud-enhanced data we Additionally, market. upcoming from on customer number of A moved capability. with this forward assist launches will OEM important driving REM an this Indian

engagements drive the Markets product consistent advanced of have place with at in the Day. December we course to we which delivered a the the steady announcements side, messaging XXXX, Capital On is customer over cadence the of

While design decision our intact, an believe timing takes expectations to is this towards that far approach and intense challenging so But what diligence autonomy announcements that products on product is and why the due technology. very And is through run luck. outstanding take OEM process wins for the to those is to remain customers predict. decision. long-term in clear it advanced very the exact remain The of for path strategic, Mobileye the our

this back our AI, by This a at of example AI and data compute, the few through a the and stack. underlying revealed advancements build Markets used amount the early and of required Day, The network, EyeQ technological practitioners. is is common of at theme Capital design Efficiency to of how chips. more X which design of CES silicon factor our stack. we'll In in be in month, we our in resources, also AI months, design of efficiency a past XXX efficiency Day is existing the transformer high-performance benchmarks have to competing our Day detailed architectures very transformer for in lot October, soon December our AI which versus efficiency efficient revealing is in high the translated

XXXX matters of start our against of in Mobileye will investment pipeline. development mind long SuperVision in efficiency, in force performance get force powered vehicles precision the and compute More preproduction [indiscernible] reflected in excellence and tradition the the come course good for ready promise as as Good our competitors showed in during production massive our by has updates substantial of we a IQXhighstack next-generation development. XXXX. and Chauffeur. a signature data Efficiency for a our by of is goes for leap and

call I the you, Moran. over Thank and to will turn

Moran Rojansky

for everyone. call, Amnon, you, thanks Thank joining the

in is related primary non-GAAP Intel's in please XXXX. my acquisition intangible which in The on begin, comments Mobileye amortization I that numbers non-GAAP of exclusion Before Mobileye's aware to to refer mainly of will measurements. be all profitability assets,

exclude also impairment that compensation as well QX. the We occurred as stock-based goodwill in

year implied October, slightly results comparison. we QX to much that the down isn't back insight that largely OEMs be Our from guidance provided full There volumes due exceeded QX from in gaining higher-than-expected the year-over-year. Chinese was XX% to by outlook

meaningful off portion of the XXXX. that half the QX a inventory first impacted occurred build As XXXX, of of in

relevant. percentage SuperVision benefit will with revenue to QX slightly digestion be QX margin QX related wind oranges is inventory adjustments of in of comparisons apples in occurred impact will Operating an QX, the lower due the up duty and consistent QX largely XXXX. comparison, versus be items to again the versus with in some of evaluation given the expectations more This year-over-year and related. are was to Beginning refund, that QX. unit as Gross somehow LIDAR the expenses were initial QX on that timing an other versus increase down, expected. reserve approvals of based down military

overall in assuming into and vast the is growth and midpoint, revenue mentioned, midpoint, Turning guidance the units we we we base, $XXX based the expressly million volumes $X.XX The XX% We XXXX operating provided volumes in term. of expect than million note the Amnon income. volumes no this are expansion are income I to growth the the of for at don't revenue units XX,XXX in range that guidance. SuperVision million time adjusted plan SuperVision majority in year assuming of release. XX to approximately billion adjusted on adjusted and At the and revenue operating guidance of income. in expect the U.S. units. X% low revenue XX EyeQ for year-over-year operating more on represents near today's earnings This postalX addressing

we call got XXXX, don't that expectation launching downside not out. with material. And we significant on Until that low OEMs expect enough Western to system we to variances more it be enough began any this to products are in

from outlook the million, of we the on the information volume somewhat To the better to be half our that currently we provide second at is run XX inventories analysis our thought to insight currently our of XX.X levels. which of indications On are helpful QX, XXXX normal side, XXXX customers. will EyeQ seasonal you a our customer from guidance, believe give annualized midpoint volume million bridge have and it based units we rate on below from

to on helpful basis for quarterly a think context it don't but this plan and is detail provide outlook. level of our We initial XXXX

QX million core XXXX decrease down to assume We versus XXXX XXXX. of represent about we XXXX. QX production we of forward into of changes First annual We estimate is volume assuming given X% OEM occurs will be QX million typical of industry [indiscernible]. customers, XXXX. the XXXX this levels, some similar about volume added units annualized X.X versus all, our again half over in are almost saw not This in price for conservative share pull Partly X.X this in And growth in which of ADAS is would X% gains and meaningfully from expect lower adoption and IHS do units of projection than production these offsetting more account drive relate in reduction. with rather programs OEMs. minus declines, we of to XXXX to million additional units new These expectations, X but over of X.X specific customers points or growth in about not growth are approximately generic in markets about market.

than top first our second almost half second versus higher would reduction rate. typically X customers million Regarding unit production X% half. half seasonality, run This is at the represent

the to second are decline regarding assuming million the to China Finally, This approximately seen rate. over OEM, reflect we last several volatility quarters. is X.X we've unit the compared the as run half

to Turning gross in XXXX. margin

X.X We revenue. about the due percentage than primarily of lower higher SuperVision-related assuming are points XXXX, to

million on when see is QX at XXXX. we from call In time, down our operating we to that terms expect sustained expenses, same of Versus with win XXXX rate said the the unit. quarter will the of consistent average, we run the during about run which rate, comments LiDAR QX savings on the we per $XXX

largely to as as that reimbursement military year-over-year expenses our production such by reminder levering offset represent We by of customer A reduction and OpEx. areas activities be above headcount-related Other are higher within AV expected as typical inflation expect employee as expenses and program reserve well compensation our this half data efficiencies our well road testing spending. engineering as investment. well offset on of cloud-related expected

the we reflects in more to QX, In QX seasonality terms experienced of year-over-year and EBITDA we XXXX. down against expect versus QX, about be digestion bit inventory which of XX% revenue than growth XX% a

midpoint revenue for year expectation QX XX% of full the revenue guidance. implies our of Our about

and per about be margins points XXX earlier. QX quarter lower gross than to operating the overall $XXX expect I at or levels higher adjusted slightly basis than for We indicated expenses million

net in was in above adjusted a consistent substantially even flow $XX was variety and of XXXX adjusted capital operating flow strong million. with cash account despite in Operating control generation of after XXXX XXXX taking reflecting areas. management into lower well income income, working expenditure Cash of capital

should we support operating Additionally, we year anticipate inventory cheap income. reserve continuing net of to reduce our delivering another adjusted strategic XXXX, above of sheet our flow balance on cash in

Finally, to we rate full year questions. will XX%, now similar approximately we XXXX. expect Thank your the and tax effective to be take you,

Operator

Our Instructions] Shreyas comes the line with of Patil question Wolfe first Research. from [Operator

Shreyas Patil

Okay. they of time as it position. legacy kind automation I'm relates this Maybe level, as talking of to uncertainty OEMs OEMs you're just to at considering because a just like Amnon on SuperVision, that by autonomy advanced what adopting curious kind high lines are for mentioned making

the still a launch and real America in legacy So like of XXXX for are markets automakers in Europe. adoption, XXXX viewing North particularly kind

Amnon Shashua

I'll Andy start maybe add. would then and Nimrod

that technologies. work also both in a the and a on XXXX, with very are all what of customers stack, And OEMs. testing. in SuperVision did category difficult sense indications with terms very pinpoint. in with extensive bear spot and of really all right building of it's our XXXX vehicles fruit, the we Tesla ADAS the them creating XXXX, that like in built very in now. is the believe of kinds But fruit with surround looks timing these of lot ADAS. working like will in to we seems introduction is did that to it's going interesting we still XXXX urgency Exact being a sweet potential of Surround all of XXXX. And During our bear buildup development

really is add? to of the Nimrod, have So timing anything these for we introduction do you still right XXXX believe that systems.

Nimrod Nehushtan

regulatory support 'XX the the that engagements of we and kind of agree especially for frame. surround have I XXXX, has been in up the RFQs an that let's the And sense that which drivers, expedited year, not urgency, for, think due is have majority are and there is competition. I we the a new say, addressing time more that of and also even to aiming ADAS, regulatory I think, past or category picking just

time the shift remains still not and far. that did So in intact, line see we so any

Shreyas Patil

Okay.

your think time I X of to X but because of deployment. just to Day, the win get years you've to the pinpoint showed have So OEMs that provided on that a seem confidence of the a of it's fairly ahead on maybe kind had hard of would typically just -- sense you particularly to some crossing -- talked level that of point trying I which know what these Capital chart a about at maybe awards, OEMs Markets lines, closer line. finish secure to number

trying get just to sense confidence So on your a of those.

Nimrod Nehushtan

yes. Yes,

So we again, do Markets Day Capital decisions, said I so. maintaining steady engagements. we predict think these of cannot kind in since continue but And these been in timings remarks, of progress in activities. his the steady to the Amnon really And progress exact we've as maintain we

Amnon Shashua

X, if nomination months, until we're portion with that about talking frame middle well. production in SuperVision. next We is we're meet if we believe a of especially possibility also doing to it, also what the the of that the introduce X And time there's X any of EyeQ within stand the carryover as

Nimrod Nehushtan

to just one And maybe comment I may. this, if on add

I next-gen Group our or with do to within mature have also products programs concrete we that in production happening continue in onwards. plan parallel address a XXXX is think start is to what that Volkswagen our

So our as continuing maturing hardware, technology, software, is next-gen the AI work planned. the technologies in

SRP give bit Mobileye maintain time future its some kind plan products are when if a our does even continuing in can it the mature to confidence going So meet because we also opportunities little and same and to can they added take improve parallel. is to decisions maybe longer, of that frames shorter

Shreyas Patil

one. margins maybe Okay. quick a Great. about for just think we And How do gross XXXX?

Moran Rojansky

Yes, I believe I it. mentioned

the slight XXXX. gross result, volume a SuperVision X.X% within EyeQ, increase as expect year. really than of flat it's What a in of being we margin So mainly lower

XXXX. So with gross on margin no issue

Operator

Chris with next ISI. comes Evercore question Our of line from McNally the

Chris McNally

investors the were I we what always you that Just think to lose? X about get always were I is X think And maybe around that these, reasons to lose buckets. the Amnon, X of be from Qs, questions the of if would you kind

year-by-year. being of which no pass just and is constantly which action, bucket They're unclear, solutions. of to within and pushout and on which vehicle sort first The just they their basic or sort timing trims, is want. is OEM changes The they go there's decided the the they very deciding clear advanced that X OEMs second, legacy with Level

obviously, in-house. an then is decides sort the more of And which Mobileye losing, third would OEM be to to go

I'm So want to think to percentages, you just X where the no an don't be look, but in-house taking would timing, or OEMs curious action I risk solution? buckets, those hold you in

Amnon Shashua

advanced serious trend terms a I such third the anything development, don't in about in-house there. in-house bucket don't We see of think that is we product. see

So first it's about the which buckets, all mostly related to is power X trade. now

expectations. were So EPCs sales below of

engine kind going putting the model. are companies combustion and to on emphasis car So of design more back board

powertrains, we of anything driving see delays in there. But don't Nimrod, you or terms to development, decisions. assist significant of so issues do big that traction assist in-house add? So have the any also driving

Nimrod Nehushtan

question that answer a us think not I behind-the-scenes of we're little for it's to because all hard bit the aware considerations. this

their So perspective, in-house that about development it's in is there and our talked there on. recently are from so GM the and for market plans -- obvious attempts

vehicle time product it some whether and will such lineup like kind of of perhaps a kind the from the opportunities take more play think mentioned are So a the a are the we buckets now mostly can for you considerations. OEMs what of of or into ready aware that at these those, this, this we pursuing, not frame, it's -- for are them combination that that

Longer this will past, we did can have parallel really outcome business the very what -- predict these we've a did but development, that the term, cannot we working we executed. in-house customers and eventually, of been to in build manage with we successful because in attempts

So...

Chris McNally

helpful. Very

the rate? or sort launches follow-on. they quick in majority the they known in a that standard have as are XXXX mostly take 'XX RFQ, ones in that are the -- SuperVision, Just or In of you are are

Nimrod Nehushtan

decided products with models our opt-ins. combination be and partners, So not discussing our OEM of between that to to sell it's standard consumers. They're to fit different it's we're with -- these a in customer something yet, how honest, and

we have we on we'll forward, of -- we more this, the So information move can as will this share course.

Operator

Our next of line UBS. question comes the Spak from Joe with

Joseph Spak

there would again comes then once And a with so, all willing and Amnon on if quicker it about footing, the they a more and that's have valuable Nimrod, -- bit to I perhaps I'm and little pushback. mean you curious and you also do if the given seems that urgency at a conversations if guess to your sign, comment, conversations And price seemingly give OEM stickier if it time. like that you just I think that, wonder customers also to like how move make than if when just implement historically? over on gain does also they they're to up

Amnon Shashua

Well, price any don't think now that price consideration. to is is make right decisions. always a impediment I

very optimized solution. price, find you are right we to our to add? Nimrod, We the on customers and with anything want work

Nimrod Nehushtan

lost program this Yes, to think I stage. it this don't I that at comes on we don't down prices. think have

in we negotiation. and stone. say, -- We we to make relatively a our flexible can are, However and don't aggressive with prices stepping this want

now a I need overcome. a think we don't of challenge this So that right kind is to

really do scale this, of to in plans question of execution about but as urgency how asked they not that That more on. if plans. deploy rollout so and OEMs how vehicles of sense cars. such It's systems and a much many is on about a you larger deployment the more -- that can they and want think accelerate of is question can I they a just

we we with bottleneck, the expansion not that say, integration. broader are for of let's something is them, working can This vehicle a and we're

have our side in We multiple vehicle the and execution one are very, actually being strength and lineups, very efficient and to multiple vehicle support of able architectures.

this. will we and support if chosen strategy, can the when indeed So this become

Joseph Spak

of a big just Okay. And just of about And solution, does obviously, in as barrier talked others? always lot news do your the models the your efficiency have whether views this to approach? wondering a developments question, development but on open Or entrance second you AI guys source of lower week. picture, to the any have own foundational reevaluate of get any the to you prevalence you can

Amnon Shashua

a we has [indiscernible] aligned for a really build is approach which and architecture had advocating build than it's autonomous seen purpose AI with to then built because in standard purpose-built what time is at task of think we the have any transformer the years, approach, with I efficiency and many in which that for the the you Day built, we Mobileye been that transformer run more that need efficient we means October, XXXx terms driving. compute of

area, is silicon competing So silicon everything area of of terms you of the X/X the design, chips. our area do look of EyeQ in we our if the X at the

will transformers, benchmarked significant doing. weeks, of that in is benchmarks both doing really of have and -- been that with like the against And is high-performance exceeding all EyeQ couple KPIs of the Mobileye terms what have efficiency is we chips net We so silicon we next X hallmark in competitional major provide the running chips. leading the

know the they made of But was assembly of about. efficient if making FPX. what learning, to There of making engineering, all fact of of there. in in And have use tight there really community terms bypass precision instead working that you the cudabottlenecks memory quantized bandwidth, flow I like that they nothing innovate with of training created sorts that the language use that a is GRP shown new scientifically has there that very [indiscernible] reinforcement

you lot. a are to really many want is Mobileye you And and if for you this be what been So efficient, advocating purpose-built can gain has years.

exactly is this our approach. with aligned So

Operator

Levy from with Barclays. next Our of comes line Dan question the

Dan Levy

is on question for Maybe I into factored to based powertrain slowdown saw guide launch agnostic, guide. EyeQ launches? just that that talk we to the activity saw the on content some in in the was to could EVs activity. specifically shipment ask on past which about a on although just wanted EV 'XX guide, are what extent I you're and it's what you the think we and is that advanced that more typically taking extent

to So launch which maybe guide? about activity the you could into factors talk the extent

Amnon Shashua

maybe saying OEMs, received very and and add approach closer a reguide start consensus you add Nimrod, Nimrod we our We includes we we guidance Moran that we I'll can Xs we guidance. that. guidance want launches much would want Tier what conservative If that And taken well. much, don't risk want our have been took XXXX. approach conservative have to would numbers the the because by as with during the new a did. than We took don't to something? to to do from

Nimrod Nehushtan

normal mix versus versus there I of percentages launches think is year. no this the kind product carryovers. of carryover of new new is lower or programs launches higher

what consistent the So we few it's have facing past pretty with been in years.

Dan Levy

go ahead. launches new or that's -- sorry, those And

Moran Rojansky

I on volume has some just our say the reduction also XXXX. that production happened or This and of launches market [indiscernible] the wanted to new reduction. costed in that share

So XXXX. an expectation it's for

share, or went their X% there down from down definitely to market in top-down just we offset was customers in XXXX, like that. of some also XXXX. or terms That -- X% XXXX customers above market -- went did also to In

Dan Levy

we Maybe if where then could could just just follow on China. mark And now. we up Understood. are you

through in efforts the some do stand especially that in you in like X allocation units and like from resource you million on China the 'XX. from OEMs domestics something China, domestic the in I where account amongst the you're million into outlook. assuming on And multinationals and disclosure volume taking the the challenges of think something given went China, based maybe X now

Nimrod Nehushtan

add. and Moran and I'll Yes. maybe Amnon address can this

willing the there been some we Chinese What is the export than are to with with are they're and that in proven stability solution we're much of OEMs Western risk compared have that willing we adopting global EyeQ their good course, and the next in Chinese restrictions in a is level to and volumes, units for year have significant our potential of -- Mobileye XXXX, finding Chinese China for is have -- OEMs. So keen some volumes maybe markets of performance proven is, close a we as in they to that solution. partnering lower growing technology very million X has

has that position solidifying with us maintaining helped customers, our So really position core our of and our our in kind Chinese customers expanding customers. with and core

mildly have supports We so We optimizing have the for full our in of maintain still local investment and China. compliance with been and a data local the strong that restrictions team there that needs regulation on. R&D

China. So maintaining investment just business of compared tight we're the kind to a very in

Daniel Galves

I This wanted Dan. follow to up. is

kind your and answer with to stand year, of we did kind X.X we last somewhere in around million the -- with where units just the OEMs OEMs. non-Chinese the about So million Chinese X China question in about of units

global to of in IHS digits, the is we the main deviating last from to were Amnon One high are down they're of the our worse. kind digits view or it's why be the of that single have worse, said. don't year. XX% taking like And in China of could kind we kind reguide if mid-single it the kind now the of want kind down is the assumptions of OEMs XX%, And assumption reasons were

So non-Chinese is China baked a in of into kind OEMs our significant within forecast. reduction

kind X which above rate well were second they run in a bit a XXXX. of volumes encouraging terms the In back where quite was at unit million Nimrod above the mentioned, half ran would thought in Chinese the second of of like half, that the we They July. be in OEMs

assuming we reasons really change went million kind not of any through we due the safe that, second we be of versus about and for X.X have the were where but to the to deterioration kind we're visibility. Nimrod that just lack to of think seeing I were that in half,

China size right So now. that to helps hopefully, kind business the of

Operator

Our next question of with from line Jonas Morgan Adam comes the Stanley.

Adam Jonas

development said in-house from not you Amnon, your do see you OEMs. significant in So comments,

they that I'm of real a trend. limited that seen competitor, you as Kosmos, that of maybe maybe curious and that encourage how NVIDIA ZEEKR you a see a then moving the don't development have curious and China. a view that yet? haven't just kind one-off in-house OEMs direct -- not see even tools in-house, accelerate offering example follow-up. You to I'm do And XXX is from are your it's then as could I you if help

Amnon Shashua

directly to is not related be empowerment think Kosmos every just real a But differently, robot I humanity are between autonomous if train and among enablement. supporting differently. human robotics you'll on and is difference data, There's big built supporting to you a platform. placed And generalize not robotics, cars. actuators able robotic

So relying on simulators is crucial.

tools. For and use in NVIDIA just lot foundation my a we other company models made built environment, of robotics, example, on simulated we

autonomous shift. order And on want distribution and create a structured, driving you rely to real-world data in to not to

entire simulators. cases, stack for do edge but you your You build on don't use simulations

would don't separate be ZEEKR whatever economies. going I major Western on what's is going XXX on China, in I or that think is that, a the in enablement. So think

the mentioned Western development, I I So in-house about when referring to was world.

Adam Jonas

ton Okay. or follow-up, alluded [indiscernible], of a tech efforts of and Tesla's other firms, and you from your humanoid been And have attention getting it, you to and robots Chairman just lately as Co-Founder OEMs mentioned. a as

they're how think industry, may vision where predominantly your vast there in bottleneck So expertise not computer I'm industry the scenarios really the auto the opportunity you interested in market auto not be because ready. it, and the for other Mobileye industry, technologies of you that said you majority markets legacy just you serve, about adjacent Mobileye's

bottleneck that company your risk. and and all could anchor if They're of the at put talent IP that your moving part, you to slow that

between tech Mobileye the point your Humanoids. at curious area what see what if -- So projects you are that right I'm these surface be at material? and do Are so, how And drones, currently are vision aviation stage exploring viewing you and how now? at computer could that

Amnon Shashua

which Jensen definitely this. between the think any the now can stack we and it's outside to refer real of but synergies, a are are Mobileye, in in-depth stages. synergies are We're studying mature in not as physical early CES automotive, we at AI of in I as we talk place decisions, but studying and our world And lot make there really AI.

Operator

question Colin Oppenheimer Rusch Company. Our with the next from & line comes of

Colin Rusch

speak of cadence strategies change portions models of of some come And the elements that architectural these models to market? within or learning for you foundation any Can utilizing the potential the of to emerging incentives to are any of platform? of starting reinforcement

Amnon Shashua

right, well. Reinforcement when learning use correct foundation building next pretraining learning adding The prediction There a through ones. reinforcement notion in in no a token you build With our very are of as a and a you so to learning you reinforcement probabilistic of the probabilistic is we the engine. becoming function, have reward use tool in engine, models. incorrect. lot you stack of learning concept reinforcement is your critical And reason adding is it's want

you're also when to So about you building precise foundation want And when probilistic. useful be correctness you just because autonomous need to driving this that building are and is this need outputs and right? are models. be You relevant you talking not precision,

outcome the GRPO, What of which process to reinforcement a allowed the learning called lots crucial the modeling, there's And of functions to critics, use reward they rewards learning. and use element. of [indiscernible] and has complicated simple instead done, innovation on reinforcement is not So reinforcement learning kind them use approach rewards. not process use

all use we're you be a your to or at and using of could it worked stack this also simply understand that the that doing it it But to instead very well, DPO useful, so we're And GRPO. looking nice. Once with the to small and experiment it very, time. is fact thing. BPO this added And it's

Colin Rusch

ability imaging a you're from and to the but perspective, fusion way lot integrate about the in just bit to of a terms radar XX of to of then And data technology, the a how sensing will develop you your the in over little helpful. next evolution sensor and can you more some seeing a talk about talked XX months? that Super system the what sensor efficient overall streamline

Amnon Shashua

it about we'll a sensor. to sensor. But to more a OEMs the as We see XXXX. And platform. Chauffeur imaging a game-changing in into see during of the now RADAR from really include And it's lot game-changing imaging say radar have acceptance we

Operator

of from Our Delaney Sachs. line comes next Mark with question Goldman the

Mark Delaney

Mobileye share when Germany, but on could you had AVs you be only operation, think and will Mobileye usually drive. drive maybe Texas to there the an progressing on launch technology I VW for not think of robotaxis for roads is planned in timing update in So how commercial

Amnon Shashua

our drive [indiscernible] So activity customer IT with the Mobileye Volkswagen, is bus. the

Router, in We now is and additional starting paid with Holon with which Oslo. have safety also driver drives paid activity

activity platform. opportunities. We all have Holon And additional working additional XXXX. of Benteler, it's XXXX, with with an additional end targeting with We're the

meantime those sensors. networks right the SOP the at XXXX, between be evolving replacing to for we're to training X are inserted the a radars drive are XX. EyeQ failure But XXXX, XXXX the driver. finished this that's hardware start We So The using there. X, already as the end the working for [indiscernible] And compute end of LADAR all EyeQ throughout experimenting should by platform XXXX, imaging removing on we of is with this at drive.

Daniel Galves

of And you XXXX. occur should the see course milestones over

of testing, The first milestones in term where of charge of taking systems, terms and to This during kind the members those user actual XXXX. commercial public starting you're the near launch customers. in the is closed all are group

hear to about more expect this. So

Mark Delaney

some following Day just diligence pipeline. December, at up the of due of in was around the stages the , were X OEMs Capital question phase X RFI of second or earlier for RFQ the SuperVision more for advanced evaluation surround negotiation and And another those in commentary Markets My ADAS. there

that progress could work to the full chip available least major in of at clearer out to But continuing to vendors, opportunities pushed hoping of AVs, you if some make of bit to meaningfully those stand. today OEMs you're get a especially other any an have those You of you said longer for M&A plans opportunities I'm no Japan, where some or with with or pipeline. announcing on on are clarify there update some

Nimrod Nehushtan

change so a There hasn't far. been a not negatively -- been change has these in opportunities

is So that there one dropped. no has

Operator

of with line Canaccord the question next George comes Genuity. from Gianarikas Our

George Gianarikas

to also like the I'd you're OEMs. with ask that in the bake-offs about

also from them you Tesla. Wave, seeing trying alternatives, it's some to OEMs, noise your you're You seeing maybe could discuss discussions Waymo well? emerging How sell development. But competitors often other about to has the in talked about you in-house as are whether what made like

Amnon Shashua

see competition of real that do see in not those outside don't competition. in-house those All in We them mentioned, discussions, we development. you

end vehicles go. those production, the but way relevant that maybe think to still demo the are and could be I for long decade, a of

OEM is So if frame best for is the a an time interested path there get Mobileye. in and Chauffeur, XXXX XXXX SuperVision or to then

George Gianarikas

FSD what as as progress version made? they've And maybe are on any XX.X. curious you Tesla's to And collective your follow-up, but think thoughts a just

Daniel Galves

we And not holy exceed version will would just experience. ITV XX. We day with conviction slides to pursuing the note FSD driving the been a that we're greatly that deal experience A have good just version driving have platform we strong whatever is really like that our XX. I

off We very can precision, that we perform eyes pursuing meaning Chauffeur. high high driving precision, like an with are experience

between best just you more very reach mean hours. each around between So and the of is the XX of there's today with driving is to do the a like even XX time mean failure way tens experience Version systems address high failure. time than how thousands hours, the And ASC that exists

this and platform. Holy believe X our So this reach the is EyeQ Grail, with really we we can

Operator

Our Xin Yu of next question the Bank. Deutsche with from line

Xin Yu

kind you would of any to AI wanted differently? in states would come couple just you're now of you things would or read-through this found be to know out anything going kind developments. what But to you you kind I of First, are earlier. that you be I you some of the some there a the in sense the that [indiscernible] seems that I did? from they think, doing to do something highlighted like of interesting call Would and approach back that terms it maybe of, right their modify apply Do get that. companies learnings anything

Amnon Shashua

I processing instead very that reach this was I is million to very DPO, chips it. tight is about is small interesting. was looking use being very achievement into cost and very is and learning the of very of training, instead the reinforcement think account and every able interesting But training PPO driving, of It what the what small we're thing. -- there of GRPO of when we're stack autonomous in a that the talking stack I $X.X develop low and available a flow, into have they bandwidth million, know. Their bit whether flow, don't or tight memory that $XX taking a think

report, a But engineering read see when you technical lot you innovation. of our

that GRPO the learning us and So of the is to what relevant take we real. I really is stack. use it, think is of reinforcement out which And

Xin Yu

interesting. really It's

know on some of other in there announced I'm it. back [indiscernible] and lift OEMs. it's -- with I deployed partnership to because one increased doing of robo a that. discussions a world what Second or think are I this was Lyft get the -- try wondering, kind or the Mobileye operators could Tesla doing the is to any getting of urgency urgency, more when whether from of November. accelerated is of there taxi you faster times mentioned there's of parts we And If we're kind along a you've urgency lot the from because

Daniel Galves

to robotaxis. need sense do we the to not vehicle It's we urgency on. But aligned the announcements just We operator, all to the Yes. also together. with up partners platform be on align need come

X is fourth which and we opportunity, fully And opportunities aligned So bus. with meaningful. also the building be a have, other with the will now this we're

So I to market. -- who see of Waymo. be this the operators, of market partners, to builders it's a meaningful a success see emerging to would big of platform And like robotaxi we from more the more play revival kind due meaningful do the a actor in whether in opportunity, terms indications mostly

Operator

of Our next New Research. with question Antoine from Chkaiban line comes the Street

Antoine Chkaiban

question current a design SuperVision your have wins. I on

relationship and to about the Volvo So Volkswagen? XX efforts can over is days you maybe customers? with going? interesting last how with opportunity tell Any expand Potter, us the collaboration and development those the your And how

Amnon Shashua

our of first-generation we returns. marginal development, terms think kind of I are low in SuperVision of the in

from show able significant X. on-road we we focus benefit testing preproduction have which Eye with that software throughout in we of doing automated EyeQ adding some in software vehicles XXXX, be -- is improvement point stack platform it We SuperVision to were to EyeQ continue EyeQ EyeQ -- doing further. recently XXXX, STACK and the throughout we'll compute have platform. already Germany is on already wherein our in launched the been with a the have we'll be on we the EyeQ We XXx we'll testing we China, it on parking terms on the to reached more X the now develop X that performance and have And But in better our X. X. write The the to all where able focus the that make of and complete use X improving requires

Antoine Chkaiban

And what driving the code follow-up, maybe the elements potential as you're a in feedback from control framework OEMs CMD, to presented the wins. additional the enable DXP design at and you wondering engagements system, DXP and your on current experience. to I'm affecting getting

Amnon Shashua

with SuperVision, So our is in full the DXP use. activity

OEMs. a have So stack important of with development stack very we that it's part as the

Daniel Galves

the next question. Operator, Antoine. Thanks, will question be our last

Operator

with of Narayan Our Markets. the Gautam final line RBC Capital question comes from

Gautam Narayan

I the question is slides follow-up Shreyas' famous the on, think, quick from one Day. on Investor first My just a the

-- nomination in will XXXX. we strict the associated kind about this like to to SuperVision believe change X just the something that close you still other are clarify should correct? was the for that from or being on? that -- of first Is wanted lines months Just that put instead way I like and X let's X [indiscernible]surrounds Is heard that still happen the now on time it? in not to OEMs away it with -- Or assume, think of

Amnon Shashua

want we really think I XXXX, the of at nomination. to week is is to change. or be are all we nominated. of surround that is process which but indications are of start don't going The that which month don't there this imminent, the the pinpointing ADS any But end

the the all start should we months With And fruit. within did is the the bearing things out activity XXXX. next same, playing within few SuperVision, XXXX in

-- changed has to at whatever Day. presented would Market that our nothing So do change anything add have the Nimrod, we you there? Capital

Daniel Galves

time. of be We kind driven expectations of just don't want an to by exact

OEMs. different stand of with on for we expectation our So where kind nothing's changed

Gautam Narayan

And Is do Austin to that the are guess be. a to at relates where X my see? and these and Level it when week concerned to my you to to on the other CES, speed some Mercedes obviously are compare hour X. products appreciate double then Mobileye Level Xs the their these active June, to But where going their you demo pretty I level I GM transition for other the demand the with guys question year kilometers a Or launch I up I to camera Level that still is [indiscernible]. comparable maybe to comments their But doing, there's that that? an as Cool. product in it precision a X+ not XX. maybe -- doing risk the with follow-up, what to the where you unsupervised eyes know to have want not you especially if where are right, risk for increased off FSC. their from just adoption this in And are just they're mean what relates radar there's some sufficient you OEMs products get Telsa wondering to XX on as is. FSD be Cruise that's Okay. not at X+ probably and saying snuff, focus this are consumer Super might about you Tier you

Amnon Shashua

building the doing an we're because risk system. right? which is And a eyes-off we're building at not both, SuperVision, same not It's Chauffeur We're time.

building So building Audi, Porsche, with we're we're for example, with And SuperVision. Chauffeur.

all very, on eyes system. going great in But we're promoting strongly an the simultaneously. off. also of our which it's belief, So regardless is an of believe eyes We SuperVision, very value

of think we're eyes a it's we're fine, there's right? So if believe pursuing that the great why system. market And in We that is is what good This is the system eyes well. would to an on both. simply as enough, value

are here. doing It's risk we no building an eyes on not is system. that there and off not an LX+ So

Operator

question-and-answer Ladies Galves that final Mr. turn comments. session. the for our and any I'll back to concludes gentlemen, floor

Daniel Galves

our for on Thank talk everyone's will and April. you. in time, we next call lot a you to earnings Thanks

Operator

conference call. Thank This concludes you. today's

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

Mobileye Global (MBLY) 30 Jan 252024 Q4 Earnings call transcript