Earnings call transcript Q1 2023

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Operator

Good day, and welcome to the MicroVision First Quarter 2023 Financial and Operating Results Conference call. At this time, all participants are in a listen-only mode. [Operator Instructions] At the end of today's presentation, there will be an opportunity to ask questions via chat line. Investors can submit their questions within the meeting webcast by typing them into the view Q&A button on the right side of your viewing screen. Analysts who publish research may ask questions on the phone line. note event also being Please Instructions] that is this recorded. [Operator

the now to like would conference to ahead. I go turn over Please Drew Markham.

Drew Markham

Chief Verma. pleased today and I'm be Chief Executive our our Anubhav you. Sharma Officer, Officer, Thank Financial Sumit to by joined

remarks, open the prepared questions. call will we their to Following

of market Please to product including, partner guarantees words product of in hear such limited availability future but could results of opportunities, future opportunity, today's note These from and funds, containing to, believe, potential, the our development will as expressions. demand, discussion expect, performance. statements strategic will some you plans, future expressed of Actual statements financial or operations materially our and engagement, results not comparisons as implied performance, and differ the include other competitors, that regarding future not and as the and information in forward-looking statements. are sales results, projections statements, forward-looking business and similar well customer statements

you actual encourage obligation forward-looking risk filed filings, and or including update XX-K Form our expressed Form no materially date from those this implied our to made forward-looking statements statements. differ information. as this and to cause reports SEC to recently in on on report could law, except our that These quarterly undertake filings by annual factors XX-Q. our describe we All call are results of most the of as review required We

addition, call Regulation non-GAAP on the that this will will financial G. considered certain under measures In be SEC’s we present

on X-K well presented to our information this audio comparable website will ir.microvision.com financial the tab. available at most non-GAAP call, to please the website Form and financial for conference both on of section in dated each the data call the This of today, Investor on directly found be reconciliations at Relations all GAAP included release SEC the our as under submitted financial measure, for to in as press our refer our be the replay which For www.microvision.com. SEC of can corporate Filings and measure

to to Now, the I’d CEO, call Sumit Sumit? our like Sharma. turn over

Sumit Sharma

Drew. customer progress you, started previous and company our with of and the I've great our well integration Ibeo XXXX milestones assets on achieve quarter first to business portfolio. made quarter our And this Thank welcome expanding been We working the review engagements the transaction We've our call. positioned product the for presented closing results. to I new of of in investor everyone and diligently

on So our let's progress. into updates dive

full We to range portfolio. our revenues remain target product from the on for year in of $XX million expanded $XX million

remains team go-to-market executing and on Our is our strategy it. unchanged

company sales. the We have for direct hardware, sales from and LiDAR the with from momentum royalties non-automotive of sales OEM restarted combined

address various market in direct solution. applications MOVIA a software We fulfill current safety, With based and we on channels MOVIA sensor of the expect deliver city that industrialized to market smart competitive stable enable for to a customers. in sales, our cost demand sensors management to to bring potential product industrial track on remain and more to of with development security,

This for and cost new developed and product leverages qualified for industrial team segment. by the and is performance Ibeo sensor optimized

vehicles, new it'll spend and X segment. cycle and OEM MOSAIK develop growth intend excited sales its OEMs with in is Tier We their and the also player hundreds become expanded product of of annually millions how validating OEMs. software validation various with of deeper suite in we to line starting engagement our a dominant This sensors just we're this dollars customer. about

in-flight for and OEM MAVIN and strategic Now about let's RFI talk sales RFQ MOVIA. automotive for and

dynamic-view our and April, top OEMs, RFQs is Investor for for technology LiDAR for and targeted OEMs and integration partnership for and with our on we roofline MAVIN in-body updated MOVIA volume recently global sensors highest sensors. are These the technology review are windshield with received. I Day in-flight well As in engaged for integration behind

We remain on target for our of OEM XXXX milestone partnerships.

mentioned a look stated the of I've manufacturing, MAVIN design target contract business half remain the revenue and stream, future to safety, the partnership as support review To with before. RFQs second complete technology, I've and and by launching new year. manufacturing the is the of We stability. deep long integration, digital end before, we our analog to As ASIC, in sample completing on process year of B

meet This OEMs. form incorporate design the and the all for the required will sample smallest requirements to features in B be candidate multiple factor would

we engagements, for XXXX RFIs current from our OEMs to starting RFQs XXXX see are Beyond as well.

before, of are more fleet. larger views sourcing in entire stated not in OEMs for I've from advanced some the competitors the for active projects. solutions are LiDAR past announced the As our

that with profile sensor these require integrated the systems require detection ranges object lowest ADAS an at management resolution all in small highest system. MAVIN all the meets requirements. thermal

the from box proves thesis. requests receiving which perception one full with We MAVIN solution, acquisition are also

We to have talent enable partnerships. and technology these the the

are We engagement and MOVIA volume for high RFI now. for seeing also RFQ sensor

LiDAR, be view, the point, the MOVIA unparalleled. field price simplicity can short range and wide For of provide will

to this current also for for sensor us ASIC is expand and a proposals the our RFQs developed current generation a multiple required with using the OEMs. LiDAR LiDAR MOVIA per to great These miniaturized offerings involve version vehicle, opportunity

two remarks wanted my key I by reiterating to points. prepared conclude

First, and our revenues we generating sales for from focused goals software business hardware and remain focused on XXXX. on are

for and shape MOVIA of biggest revenue MicroVision, are strategic OEM our Second, great in agreements. are for XXXX and MAVIN objectives of multiple believe the sensors we I sales opportunities

allowed work I us. incredible turn team to positioned for talk I Anubhav? want year to call the over an thanking and to Anubhav well hard ahead global my of has about conclude would be to now like their financials. us to that our our

Anubhav Verma

first the as with MicroVision Thanks over to and become market. combined have positioned joining of in companies Sumit. uniquely has I'm is XX win. XXX really of the experienced years pleased operating patents, to XXXX. positioned with most combined what hardware The LiDAR and With history teams software forces the accomplished Ibeo well in one our of

We I'm a $XXX,XXX year-over-year recorded XXXX. pleased quarter first first compared solid MicroVision represents to revenue, growth of as growth to that which revenue QX ahead in XXXX XXX% report with from expectations. coming had and quarter impressive in

As competitors financial public will to we mature that our discipline, and are company, from through achievable. to guiding metrics transparency, and a ourselves continue differentiate believe realistic we

our Now, investors XXXX about and detail, significantly to and financial more discuss Ibeo QX would acquisition before how new products our and in access we talk roadmap like a bit with accelerates results new transforms customers. remind I trajectory the to

of is MicroVision the acquisition, our at point. an completion Following indeed inflection Ibeo co

based The process Detroit, business and our also very sector. we execute our expectations. to momentum, the teams sales and ahead Michigan and in Our recently development of integration teams U.S. lead automotive our between have been seasoned integration business efforts, in working hard development is to a sales up the especially added executive picking

to targeted discipline capital team first a highly Ibeo performance and MicroVision's relationships customer an broad with demonstrate financial experienced The rigor continues product deployment. of and in investment our along quarter portfolio. talented and engineers, strategic brought us

revenue allows We’re reduces now years. by for benefiting This made products million to high forward margin from over timeline the generate go-to-market €XXX these past R&D considerably deployed to go the leverage company. us and over Ibeo our investments several of

significantly markets investment of industry think this of how for of three into we the they some in have due the new We recap transformational addressing increased sub-verticals. and the the of presentation divided compete investors deal. our highlights of me to some the Let size LiDAR

First, LX+ the of modeling market, every ADAS requirements year. vehicles produced the LX and

vehicle. while and vehicle, short cars LX expect LX+ two range range require LiDARs long per and LiDARs LiDAR We per cars two one long-range LiDARs to short-range require to four

to market we estimate than ASPs through – projected the out least XX volumes total industry of at cumulative estimates entire hear ASP LiDAR sector ASIC for to for this million $X,XXX, design XXXX. the potential billion to enables our $XXX, production, we long-range depending ADAS at at around our the of to the for LiDAR will MAVIN. greater expected us applied revenue generate and our While continue come number and peers from that of the $XX automotive LiDAR vehicles on price Using our

market. is The the non-automotive sub-vertical second

While through estimates consists to the and we non-automotive a business firms, three on of further basis which a market, variety reputable similar from of XXXX we have estimated sub-verticals. size the potential revenue have seen peers consulting cumulative

we $XX the we we total model a by the sales the be grow at at grow and to an in XXXX and XX% billion $X.X a up to sum estimate infrastructure, vertical to CAGR. estimate we market billion XXXX, sum in every will billion XXXX. year billion we cumulative total by industrial in be non- Extending total this at at by industrial, in through up this $X.X If If be automotive be to every we the expect estimated by expect this cumulative $XX smart total XXXX. The same market XX% sales XXXX the a year, the similarly CAGR. that market

For robotics, all $X.X we and up XX% to at these CAGR it market summing things $XX be a billion in up, to XXXX expect billion. and this at adds grow

the we billion three we sub-verticals, players. add get these $XXX for potential if to LiDAR Now, market all

important annotation MOSAIK. and we third the industry lot with players not most which the The software, of is perhaps in one pieces validation This a a call auto is and of the market specialized the competing. LiDAR

validation our process to a data validation reference are advantage platform to LiDAR against key degrees. the software it and XXX generation surrounding validate. suite third-party enables sensor truth to MicroVision includes of detect a reminder, that LiDARs sensor trying this provides ground of OEMs is software As The and

setups setup. Modular approach to enable different any case use enables sensor

the this While this more TAM to $XXX able it XXXX demand generate We $XXX of may the this is the for million as estimate will be we that to more software trying through hard believe and the increase for estimate through revenue industry, sales sensors. validate million to software. we OEMs to

XXXX dive financials. into let’s our Now, QX

stream of For approximately split million ahead and of expectations. in automotive recorded the non-automotive The This customers. first and this is two OEM major quarter’s the along software we XX% is major in about customers related the in to software. from automotive LiDAR revenue that automotive the OEMs. both agricultural quarter, The of revenue came industrial sectors. and The $XXX,XXX in hardware revenue XX% stream with other the customers include a hardware include revenue revenue customers the

still have recap communication Microsoft from of delivered which liability. that Before expenses, We an contract million unapplied quick result to this received balance a we Microsoft. as units no left a quarter, in X.X this we on on move were on

expiration XXXX with with in agreement effect December continues Microsoft of clauses. to renewal with be Our an automatic date

of move let’s cost The sold. to on Now expenses. goods

a the goods Our the sold on gross intangible basis of note of every we Please going assets that a because hitting will amortization of of Ibeo have now cost forward, acquisition from quarter. acquisition, the intangible GAAP non-cash profit margin XX%. was charges

excludes profits which these intangible For this charges reason, gross better metrics provide Based to adjusted more we profit these for indicator now of believe adjusted the non-cash that is our margins, margins believe our gross adjusted meaningful a profits gross it We on cash XX%. gross be were non-GAAP amortization. margin margins. will and

In The depreciation and as quarter, a as approximately and price R&D of the result bargain driven terms of acquisition. million and of purchase Ibeo facilities employees also OpEx, had including we well. from expenses, expenses we non-cash $X added SG&A. million acquisition as and we This a compensation In have includes stock-based this by $XX.X amortization. resulting Ibeo higher were additional this

out being with was quarter, remind discipline well was XXXX guidance. our both and line For Germany, and year beat the industry of our full uncertainty continue a cash in To pool macroeconomic a U.S. used which the investors, of the In in cash maintaining burned million activities, competitors in highly we our the stood terms one strong show sheet. burn expected first trajectory. in conditions, with with balance these talented $XX of financial on in and rates and of engineers to operating MicroVision times weaker lowest

$X.X the quarter the with new which with first into As was We in tenant earlier payment line year. helps the this expected the our associated us expectations. second of the incentive CapEx million quarter build-outs improvements received in of facility the in and XXXX, move the recover XXXX,

on details more incentive We next quarter. will reporting payment this be

deductions XX, March associated of certain plan payments we of with Ibeo the in make purchase the made payment on We As the price less of to the of the XXXX. remaining acquisition second XXXX, €X have majority quarter and acquisition. million

last including There the $XX February on investment March been total update our of has XX, million in ATM since was liquidity Our no securities. earning calls program. as

$XX approximately previously program. had under still we available As stated, have this we million currently

XXXX. Based XXXX and anticipate plan on middle beyond, we to and our our sufficient operations next for year current we cash that of operating cash through equivalents the fund have

our on LiDAR above, QX and lines this revenue to software, $XX the strong OEMs, three MOVIA ahead, we march XXXX from drive path for annotation the described the looking MAVIN streams, in believe auto excited and our non-recurring, with third automotive we’re in performance. to of from software as with momentum I revenue especially with Now, of We million Sumit should forward sale perception $XX validation about MOSAIK engineering OEM a sales million to revenues sales of product be year. flash-based LiDAR the remainder year able

we’re excited summarize, really XXXX focus LiDAR unique RFQs, market With strong a and To our beyond. company. about we as to our will winning and and key proving on value be milestones proposition the

questions. I line this, the now would like for With to open

Operator

with ahead here question. conducting come session. At from time, will with Andres a we are this Fitzgerald. first Our Instructions] go question Sheppard Cantor question-and-answer your Please [Operator

Unidentified Analyst

$XX of more you wanted through million funded million mentioned going you to the mentioned. and on there. the How are have into down from your liquidity color that wanted in is Hi. thinking status just touch you’re Andres know I [indiscernible] I XXXX. year, Just you last liquidity and $XX This about what’s middle just to this here. for get burn calculation? that you

Anubhav Verma

[indiscernible]. Thanks, Yes.

burn in we So Obviously, the more on year. of $XX there stated. in up, the pick we expect rest to we would XXXX, momentum we to for gather half early sales and in be inflows next cash second track million to expect more we which continue the previously to year as $XX expect are had this we year guided we have million as as

that’s we company. high liquidity a of by some of keep in very projects of for be described revenue what’s well coming why as position a we’re down MOVIA, revenue as bulk that as the with wins, opportunities terms stream So comfortable current revenue the driven contribution obviously our had is which and MOSAIK margin pipe Please mind feel combined our and chasing. earlier, this in we would the

Unidentified Analyst

And wanted equity Are you. or at to potentially. about you. or how Got do consider see that thinking you’re Thank future? you that the to looking opportunities in I follow-up capital raise debt to you how

Anubhav Verma

we rigor that’s are And strategic that Yes, the be always we raising have Look, great I accompanied demonstrated think have question. think strong should as – when demonstrated accessing we needed. No, I with capital purposes. we for and capital always a markets a believe

would to tapped closed fund we when example, we because For very was – it had the acquisition, investment we have the Ibeo the acquisitions into the a it in believed markets good future. company’s

of execute years from to one discipline. I things same continue being us which we – the peers So company And company, which because experience. over traditional of been public LiDAR has differentiates think again has XX a the that the is public

history. fact, us there as why I some in of by options sort SPAC that’s – compared company our the peers only to of no to feel space about us virtue good just the of So out the with the one available in of being

we options the raising good why about that’s for the down road. company feel So capital the

Unidentified Analyst

for plans you to bit to a it you was Or I or to or have for your you LiDAR? take you with it take have your little Got MAVIN think to can the it, materialize? long relationships about could you OEMs do provide announce for any – color do contract wondering switch an gears how would potentially OEM long how you. And do

Sumit Sharma

I’ll that take on top.

milestone quite for talked continue make I That’s think on about this we’ve we progress a to our that lot. and corporate year it.

there, not out taken as tranche There’s current it, these these ones consumer to about other of but it’s for the there, projects course, that have the mirror. vehicles vehicles. is, key are for are the are no think are I mean, that think are product trucking, people of these are announced high they I and options. in RFQs not for volume these the

So the volume is a lot higher.

on that required rigor our on of also is pretty their the therefore teams feel purchasing But we the more. engineering confident and engagement team, remain based So course significantly with track. with

Unidentified Analyst

Got you. Thank you.

Operator

this now will you. to questions Verma to submitted read the turn Thank to over call Anubhav I webcast. back

Anubhav Verma

Thank you.

questions Let that from me investors. of take some the our getting we’re

MAVIN view RFQs the and a are is this this you any all part automotive dynamic management feature. And think MicroVision The that won’t only deals LiDAR is mentioned do there Why win you RFQs out there not first question want has that offers of? year?

Sumit Sharma

last really of within the have look that. integrated volume, I’ll highest to not we engage look listing guess In on. I’m different all alignment. cases, take They I’ll sure. because they most RFQs some I the can has Well, you first. no answer one bid of for they’re requirements. like we that sensor body that out We the be projects, public the it OEMs, the are fielding these all There’s of for need there the these advanced with car.

it So certainly, of LiDAR perfect right, the meets all that the because the is one for dynamic-view requirements. kind

you’ve in I months, I competitors prototype our seen But think doing, we and are some that demonstrate direction. sorts headed they’re of would recently stuff, level images that and last, Photoshop that course, of all CAD the that. other in say have three

specific So, kind RFQs a something it’s to important like are a for there on that sort But we still that in line ones, that other truck, XxX feel was of root small let’s that integration. of call it project. some were, Maybe it have not confident. pretty those legacy,

they were it’s low already just So ground had mounted to somebody leveraging else the and what done.

there. innovative nothing there’s So

be kind So of competitive not we but RFQs, big there, stuff. the can that’s those certainly volume

comes dedicated on The on We RFQ focus is to focus everything. any along. So that team we RFI, that.

that allows the fortunate eventful and we’re between and us and have very Redmond these. team large to a Nuremberg, address course week is at fact, moment every that such we In Hamburg of very

require for we're LiDAR well that. throughout high looking for as positioned concerned, it's the resolution pretty far long as range, the that dynamic-view is projects So range,

like for the can looking they stuff are looking as ones is, well specified as dynamic-view As a take of high and mentioned, a lower all sort application it trucking point. feature, not as volume and they're But probably that LiDAR. that for far I starting something a be a may the just or some as product that,

Anubhav Verma

Thanks Sumit. impacts do MicroVision? last The next think CARIAD, the was is at players LiDAR the significant a question over how there including you this days, shakeup few

Sumit Sharma

all is that If roll can I of could think it new I at inappropriate a facts it's all what lot means how knew over because would that's news for since speculate. to versus as yet, as be that the out. announced but you a nothing the There's this I individual taking share, going not were you CARIAD But share. and there that is for certainly speculation CEO, it'd to I coming lot along folks of expected. been change brand changes a surprise huge were versus, the has VW this can was imagine, speculation, imagine, with

was a year I want top at that out And consistent now trying brands of never ever end defend high it But pretty some I've bump different would that of the signed integration never on things. Nobody that, for you been requires think early facts the entire it of a different of have should agreements roof. is that fleet. the a part people big the to the projected if about vehicle the about roofline that have they're look now, that

of that you. the last I unclear CARIAD, speculation be really in I means. think hours. what that a that, that. And at say pretty happened shakeup consistent I've it it's I with XX I've lot But been to heard have the honest would has about besides

the to made LiDAR Some we brands to themselves are just speculation as team. I facts the going or have are clear but how think of wait but a deploy by plans till mostly

Anubhav Verma

Okay, Sumit. thanks

shop you have give has this solutions shop I and on one-box solutions a OEMs? partners? think multiple OEMs color by having cost together sensor software, now a you Could multiple with the this – for us approach some MicroVision well LiDAR OEMs. is this received Is solution versus the one-stop is one-box, for to one piece from benefits

Sumit Sharma

include one-box The perception the one-box would course there's inside. solution means, a of

perception only. to So If that you our products use would this provide ASIC. There's that require their effectively, as would at gets a one software, right. the OEMs. clear efficient two because enable into But be we somebody product. can point just development is imagine real thesis they about it it. And wanted certainly pretty as integrated that want And more cloud would would that ASIC we're really

the engagement pretty team, first again, recently I'm features looking a enthusiastic evaluate. the our somebody, been one-box have more take like LiDAR exciting, entity, by it's going time, if takes very And entity stages. think a but something evaluating LiDAR kind that imagine Because OEM that's for solution. think Ibeo you can to it's this, a I got we large I so software all imagine a to developed time that plus with with long of early

the I make is is, pretty it does it automotive because that a exciting of sense. is thesis think this consistent but behind getting the it's cycles selling for what traction lot of

way, again, electronics some The there. electronic on sensors, you all about down price all and hardware But most them. the as same, the the the of same of of inside are scale most it's the the Now that's bring is would the and based it's leveraged to on the in are the perception are LiDAR optics the different the price of think about electronics the be side. the customer to economy the advantageous giving same some lasers,

really you and leverage, could say entire three the of I can you quarters it aggregate So would design across.

few thousand to model a within model So that high. have, for OEM you price just the entire could part model got units years common all the year, was different leverage could models shipping because parts. a that, is hundred could you aggregate you them it even there comes there's that be and difference advantage for segment overall like you million perception, if say, all one without them And let's only would say perception the that let's create some the and has half that other full versus have

stay I like we would the because them is be gotten it. provide a sample today, aggregating is this software, feel of we sensor that So said have team scales on sophisticated economy in evident we able piece understanding enough B focused of of the is even all it feedback, what enough finishing And to by though before, more the the that design arrives. the but made want of customization done, in can that we that that ready going integrations they future we've converging separate has production NREs different D design enough under to to may the that the that's ASICs common when be about be can talked start to sample still be design design that

we're way right the are ASP, think and still an good customization have the designs don't enough we at feed I the box I solution We providing Anubhav completely right, of integrated requirement with even architected to meets have one that solutions. think they about the everybody. one So specific a mentioned force thermal we about we've that product. There's with point – there's talk now, feel that great when the but confident advantages has we I a pricing that's pretty

power, When you of use laser high go lot resolutions, a these ASIC to lot a use of power.

hot. You got Imagine to get your watt going it's several dissipate light to inside bulbs car, it.

up diligently So it team really we've right a windshield has roof integrated been working and very line. cool solution behind or keep nice has that great in the also, our and will come the with

to the economy could of offer them. common are the still So design, scale in you offer most that parts of we're variants the all the with going of across that because coming together all

place. think good we're a I in So

the in up I of mind. a that from think great with job architecting ground done product teams have

Anubhav Verma

Okay, thanks, Sumit.

your think out results I your we're time. for continued support appreciate now call participation in and of MicroVision. our We

Operator

conference call. All This may a day. have concludes parties and today's disconnect wonderful

MicroVision (MVIS) 9 May 232023 Q1 Earnings call transcript