Financial Data and Key Metrics Changes - For Q4 2024, the company reported record revenue of $31,100,000, representing a growth of 41.8% compared to Q4 2023 [7][18] - Full year revenue reached $103,500,000, up 32.8% from $78,000,000 in 2023 [21] - Gross margin improved to 36.5% in Q4, an increase of 800 basis points from 28.5% in the prior year quarter [8][19] - The company achieved positive adjusted EBITDA of $200,000 in Q4, compared to a negative $6,000,000 in the prior year quarter [9][20] Business Line Data and Key Metrics Changes - SafetyTech segment revenue was $13,000,000 in Q4, up 73% from $7,500,000 in the prior year quarter, with gross margin improving to 23% [22] - Aeronautics segment revenue reached $13,400,000 in Q4, a 26.7% increase from $10,600,000 in the prior year quarter, with gross margin expanding to 51.1% [23] - Architectural segment revenue was $4,100,000 in Q4, up 31.8% from $3,100,000 in the prior year quarter, with gross margin at 37.6% [24] - Automotive segment revenue was $700,000 in Q4, slightly down from $800,000 in the prior year quarter, with expectations for improvement in 2025 [25] Market Data and Key Metrics Changes - The company noted that 80% of its 2024 revenue was recurring from existing customers, indicating strong customer retention and demand [7][8] - The U.S. market is seeing the fastest growth in the architecture segment, now representing over half of sales in that segment [12] Company Strategy and Development Direction - The company plans to focus on innovation and operational excellence to strengthen relationships with global OEMs [9][30] - A ten-year committed and contracted backlog of $409,000,000 was introduced, providing visibility into long-term growth potential [17][29] - The company aims to balance strong growth with financial discipline, targeting positive adjusted EBITDA for the full year 2025 [26][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory due to strong demand across all segments and the introduction of new technologies [28][30] - The company expects the second half of 2025 to be stronger than the first half, driving growth and profitability [26][39] Other Important Information - The company ended the year with total liquidity of $40,600,000, including $5,600,000 in cash and cash equivalents [25] - Total debt at year-end was $38,400,000, with plans for a $10,000,000 debt financing arrangement to support operations [53][55] Q&A Session Summary Question: Insights on 2025 revenue guidance and backlog visibility - Management indicated that less than 50% of the $409,000,000 backlog is expected to be shipped in 2025, with strong recurring customer orders contributing to revenue [34][35] Question: Seasonal revenue patterns - Management confirmed that Q1 is typically the slowest quarter, with Q4 being the strongest, and the second half of the year expected to drive growth [36][38] Question: Revenue segment contributions - SafetyTech is expected to lead in growth contribution, followed by Aeronautics, with all segments showing significant growth [39][40] Question: Variables impacting backlog and revenue - Management clarified that the backlog is 100% committed and contracted, with no assurance of changes due to macroeconomic factors [46][47] Question: Cash flow and CapEx expectations - The company expects to be EBITDA positive in 2025 and cash flow positive in 2026, with planned CapEx of about $10,000,000 for 2025 [69][70]

Financial Performance - Fourth quarter revenue reached $31.1 million, a 41.8% increase from $22.0 million in the prior year quarter[4] - Full-year sales surpassed $103.5 million, reflecting a 32.8% growth compared to $78.0 million in 2023[4] - The net loss for the fourth quarter narrowed to $11.4 million, down from a net loss of $20.7 million in the prior year[4] - Net loss for the year ended December 31, 2024, was $53,182 thousand, an improvement from a net loss of $79,267 thousand in 2023, representing a 32.8% reduction[35] - Total revenues for the twelve months ended December 31, 2024, reached $103,527 thousand, up from $77,980 thousand in 2023, indicating a growth of 32.8%[38] Profitability Metrics - Adjusted EBITDA for the fourth quarter was positive at $0.2 million, compared to a loss of $6.0 million in the prior year quarter[10] - Adjusted EBITDA for the twelve months ended December 31, 2024, was $(14,249) thousand, an improvement from $(20,697) thousand in 2023[42] - The company reported an operating loss of $4,455,000 for Q4 2024, an improvement from a loss of $8,728,000 in Q4 2023[29] - The company reported a net loss margin of -36% for the three months ended December 31, 2024, compared to -94% in the same period of 2023[42] Revenue Growth - The Safety-Tech division reported a revenue increase of 73.0% in Q4 2024, reaching $13.0 million compared to $7.5 million in the prior year[11] - Revenues for Q4 2024 increased to $31,131,000, a 42.1% growth compared to $21,950,000 in Q4 2023[29] - Revenues from the Aeronautics segment for the three months ended December 31, 2024, were $13,391 thousand, up from $10,570 thousand in the same period of 2023, a growth of 26.0%[38] Customer Retention and Backlog - Over 80% of 2024 sales were from recurring customers, highlighting strong customer retention[5] - The company has a contracted backlog of at least $409 million, contributing to a projected revenue pipeline exceeding $1 billion over the next ten years[5] Liquidity and Assets - Total liquidity as of December 31, 2024, was $40.6 million, including $5.6 million in cash and $35.0 million in undrawn credit facilities[15] - Cash and cash equivalents increased to $5,615,000 in 2024 from $4,575,000 in 2023, a growth of 22.7%[31] - Cash and cash equivalents at the end of the year increased to $5,734 thousand from $4,705 thousand at the beginning of the year[36] - Total current assets rose to $54,608,000 in 2024, compared to $46,521,000 in 2023, reflecting a 17.9% increase[31] - Total non-current assets increased to $83,637,000 in 2024 from $81,423,000 in 2023, a growth of 2.7%[31] Cost and Expenses - The cost of revenue for the twelve months ended December 31, 2024, was $71,718 thousand, compared to $55,992 thousand in 2023, reflecting a 28.2% increase[38] - Research and development expenses for the twelve months ended December 31, 2024, were $17,590,000, up from $16,035,000 in 2023, indicating a 9.7% increase[29] Debt and Liabilities - Total liabilities decreased significantly to $89,915,000 in 2024 from $194,298,000 in 2023, a reduction of 53.7%[32] - The company’s accumulated deficit grew to $225,012,000 in 2024 from $171,830,000 in 2023, reflecting a 30.9% increase[32] Future Outlook - The company expects 2025 revenue to be between $130 million and $140 million, indicating approximately 30% growth compared to 2024[16]

Financial Performance and Risks - The company has incurred an accumulated deficit of approximately $225.0 million as of December 31, 2024, with net losses of $53.2 million and $79.3 million for the years ended December 31, 2024 and 2023, respectively[49]. - The company anticipates significant expenses and losses for at least the near and medium term as it continues to develop its product portfolio and expand operations[50]. - The company must effectively manage capital expenditures and costs associated with its operations to achieve future profitability[58]. - The company may need to raise additional capital before becoming profitable from sales of its light and vision control products, which could delay or limit product development efforts[59]. - The company faces risks related to its ability to generate sufficient cash flows to service its debt obligations, which could lead to liquidity problems[198]. - The company may incur substantial additional debt in the future, which could exacerbate financial risks[200]. Market and Competitive Landscape - The company invests significant effort and capital in seeking validation of its light and vision control products with OEMs and Tier 1 suppliers, primarily in the aeronautics and automobile markets, with development cycles lasting approximately one to four years[43]. - Future growth is highly dependent on large-scale adoption of light and vision control products in automotive, transportation, architecture, and aeronautic markets[73]. - The competitive landscape includes numerous competitors, and failure to compete successfully in product development may adversely affect the company's financial condition[77]. - The company has a competitive advantage as the sole developer of multiple smart glass technologies, providing comprehensive solutions for light and vision control systems across various markets[78]. Regulatory and Compliance Risks - The company faces risks related to compliance with numerous laws and regulations across various countries concerning the manufacturing and sale of its products[46]. - The company is subject to numerous laws and regulations across various countries, and failure to comply could result in significant penalties and harm to business operations[117]. - Environmental laws and regulations are expected to become more stringent, potentially increasing compliance costs and impacting financial performance[127]. - The company must adapt to evolving automotive and aeronautic safety regulations, which could present both opportunities and challenges for its products[121]. - The company is subject to various laws and regulations related to data privacy and security, which are continually evolving and could adversely affect its business and financial condition[134]. Supply Chain and Operational Risks - The company is exposed to high repair and replacement costs for defective products, which could adversely affect its operations and profitability[55]. - The company faces risks related to raw material supply, including potential shortages and price volatility, which could adversely affect sales and operating results[64][66]. - The company relies on complex machinery for operations, which may suffer unexpected malfunctions, affecting operational efficiency and cash flows[75]. - The ongoing conflict between Russia and Ukraine has negatively impacted the global economy, leading to material shortages and increased costs for raw materials[98]. - Economic uncertainty and geopolitical tensions could adversely affect demand for the company's products and overall business performance[104]. Intellectual Property and Technology - The company's ability to protect intellectual property through patents and trade secrets is critical for competitive positioning[167]. - The company's patent portfolio consists of 146 patents and 16 pending patent applications, which are crucial for the commercialization of new products[182]. - The company may face challenges from third-party intellectual property rights, which could require costly litigation or licensing agreements[172]. - The company has made significant investments in machine learning and artificial intelligence technologies, but there are risks associated with their development and deployment[187]. Employee and Operational Impact - The company faces potential difficulties in collecting accounts receivable due to fluctuations in foreign currency exchange rates and longer sales cycles[103]. - The company may need to provide higher than normal raises to employees due to inflation, which could affect operating income if costs cannot be passed on to customers[105]. - As of March 1, 2025, one employee in Israel is serving in active duty, and additional employees may be called up for military service, potentially disrupting operations[230]. - Approximately 22% of the company's employees and 25% of its production lines are located in Israel[231]. Shareholder and Market Dynamics - The market price of the company's ordinary shares may be volatile, and it may not be able to meet investor or analyst expectations, potentially affecting share value[46]. - The company has never declared or paid dividends and intends to retain future earnings to finance operations and expand its business[203]. - The company has a significant concentration of share ownership, with directors and major shareholders owning over 21.66% of ordinary shares, potentially influencing shareholder decisions[202]. Acquisitions and Growth Strategies - The company completed the acquisition of Vision Lite in January 2022 and Resonac Corporation's full SPD intellectual property portfolio in September 2023, which included new technology research and development[84]. - The company faces risks in future acquisitions, including difficulties in identifying candidates, inability to secure favorable terms, and potential disruptions to ongoing business operations[85]. - The company anticipates significant increases in operational and financial systems to support future growth, which may lead to operational inefficiencies if not managed effectively[90].

Core Insights - The company reported a fourth quarter revenue growth of 41.8%, reaching $31.1 million, driven by strong performance across all segments, particularly in Safety Tech and Aeronautics [1][8] - The adjusted net loss for the quarter narrowed to $3.7 million from $11.2 million in the prior year, marking a significant improvement in profitability [1][11] - The company achieved its first-ever quarter of positive adjusted EBITDA at $0.2 million, compared to a negative $6.0 million in the same quarter last year [1][11] - Full-year sales surpassed $100 million for the first time, with over 80% of sales coming from recurring customers [1][5] - The company introduced a 10-year committed and contracted backlog, indicating strong long-term demand across segments [1] - Initial guidance for 2025 anticipates healthy double-digit revenue growth and the first full year of positive adjusted EBITDA [1][19] Fourth Quarter 2024 Highlights - Revenue for the fourth quarter increased to $31.1 million, a 41.8% increase from $22.0 million in Q4 2023 [7][8] - Gross profit for the quarter was $11.4 million, up 81.4% from $6.3 million in the prior year, with a gross margin improvement to 36.5% from 28.5% [9][10] - Total operating expenses rose to $15.8 million, a 5.5% increase compared to $15.0 million in Q4 2023, primarily due to increased stock-based compensation [10] Full Year 2024 Highlights - Total revenue for the full year reached $103.5 million, a 32.8% increase from $78.0 million in 2023 [7] - The gross margin for the full year improved to 28.7%, up 310 basis points from 25.6% in the previous year [7] - The net loss for the year was $53.2 million, reduced from a loss of $79.3 million in 2023 [7] Segment Performance - **Safety-Tech Division**: Revenue increased by 73.0% to $13.0 million, with gross profit rising 212.7% to $3.0 million [12] - **Aeronautics Division**: Revenue grew by 26.7% to $13.4 million, with gross profit increasing 62.2% to $6.8 million [13] - **Architecture Division**: Revenue rose by 31.8% to $4.1 million, with gross profit up 54.8% to $1.5 million [16] - **Automotive Division**: Revenue decreased by 14.7% to $0.7 million, reflecting timing impacts of full-year orders [17] Financial Position - As of December 31, 2024, the company had total liquidity of $40.6 million, including $5.6 million in cash and a $35.0 million undrawn credit facility [18] - Total debt stood at $38.4 million, with a significant portion being short-term receivable financings [18] Future Outlook - The company expects full-year revenue for 2025 to be in the range of $130 million to $140 million, representing approximately 30% growth compared to 2024 [19] - The anticipated positive adjusted EBITDA for 2025 is expected to be supported by a strong recurring revenue base and operational leverage [19]

Core Viewpoint - Gauzy Ltd. will release its financial results for Q4 and the full year ended December 31, 2024, on March 11, 2025, before market opening, followed by a conference call at 8:30 a.m. EDT to discuss the results [1]. Company Overview - Gauzy Ltd. is a fully-integrated company specializing in light and vision control technology, focusing on smart glass technologies and advanced driver assistance systems (ADAS) [4]. - The company is headquartered in Tel Aviv, Israel, with subsidiaries in Germany, France, the United States, Canada, China, Singapore, and the United Arab Emirates, serving over 30 countries [4]. - Gauzy collaborates with leading brands across various sectors, including aeronautics, automotive, and architecture, through a certified distribution channel and partner network [4].

Core Viewpoint - Gauzy Ltd. has received an exemption renewal from the FMCSA, allowing the company to replace traditional mirrors on public transit buses with its Smart-Vision camera monitor system across all 50 states, pending state approvals, which could lead to retrofitting over 900,000 buses in the U.S. [1][2][4] Group 1: Company Developments - The FMCSA approval positions Gauzy to accelerate the adoption of advanced driver assistance systems (ADAS) in commercial vehicles throughout the U.S. [4] - Gauzy's Smart-Vision CMS is already operational on approximately 300 public buses in the U.S., with ongoing efforts to retrofit existing buses and outfit new ones [5] - The company has demonstrated the effectiveness of its Smart-Vision system in international markets, equipping over 2,500 buses in London, covering about 30% of the market [6] Group 2: Strategic Partnerships - Luminator Technology Group, a strategic partner of Gauzy and the largest distributor of its Smart-Vision CMS in North America, is positioned to leverage the FMCSA approval to enhance safety in mobility [2][7] - The partnership aims to significantly increase the number of buses equipped with Gauzy's ADAS nationwide, contributing to safer urban environments [7] Group 3: Market Potential - With over 900,000 licensed buses in the U.S. that can be retrofitted with the Smart-Vision system, Gauzy has the potential to generate a substantial new revenue stream [2] - The extension of the FMCSA exemption is seen as a strategic win for Gauzy, enabling growth in its Safety Tech division and expanding implementation across various markets [3]

Core Insights - Gauzy Ltd. has announced a strategic collaboration with MABA Industrial to introduce its Smart-Vision camera monitor system (CMS) for commercial vehicles in South Korea, capitalizing on the country's focus on road safety [1][2][3] - The partnership is expected to enhance Gauzy's market presence in South Korea, which sees over 255,000 commercial vehicle sales annually, and aligns with the National Transport Safety Plan aimed at protecting vulnerable road users [1][2][3] - The Smart-Vision system is designed to replace traditional mirrors with high-definition cameras, improving safety and operational efficiency for commercial vehicles in urban environments [4][5] Company Overview - Gauzy Ltd. specializes in light and vision control technology, focusing on the development and marketing of smart glass technologies and advanced driver assistance systems (ADAS) [6][7] - The company is headquartered in Tel Aviv, Israel, with subsidiaries in multiple countries, serving leading brands across various industries [6][7] Industry Context - The introduction of the Smart-Vision system in South Korea is timely, given the government's emphasis on road safety and the growing demand for sustainable transportation solutions, particularly in the electric bus segment [2][3] - The Asia-Pacific region is projected to experience GDP growth of 4.1% in 2025, which may further drive interest in AI-powered solutions like ADAS for fleet modernization [3]

Core Insights - Gauzy Ltd. has been invited to participate in a prestigious economic forum in India, aimed at exploring new business opportunities and strengthening bilateral trade relations between Israel and India [1][2] - The company aims to leverage its innovative light and vision control technology to accelerate growth in India, which is projected to be the world's third-largest economy by 2030, with a GDP growth rate of 6.5% in 2025 and 2026 [1][2] - Gauzy is rapidly expanding its operations in India, capitalizing on the country's robust economic growth driven by a rising middle class and significant public infrastructure investments exceeding $1 trillion [2] Company Overview - Gauzy Ltd. specializes in light and vision control technologies, focusing on research, development, manufacturing, and marketing to enhance user experiences across various industries [4] - The company is headquartered in Tel Aviv, Israel, with subsidiaries in multiple countries including Germany, France, the United States, Canada, China, Singapore, and the United Arab Emirates [4] - Gauzy serves leading brands in sectors such as aeronautics, automotive, and architecture across over 30 countries through direct fulfillment and a certified distribution channel [4] Market Engagement - The upcoming economic forum in New Delhi will feature several major Indian companies and institutions, providing Gauzy with a platform to engage with key decision-makers and industry leaders [3] - Gauzy has already established partnerships with significant players in the Indian market, including a large real estate developer and multiple glass fabrication and window film installation partners [2] - The company's Polymer Dispersed Liquid Crystal (PDLC) adhesive smart glass film is being installed in new buildings and is featured in Indian Railways' vistadome coaches, showcasing its technology's application in various sectors [2]

Core Insights - Gauzy Ltd. has been invited to participate in a prestigious economic forum in India, aimed at exploring new business opportunities and strengthening bilateral trade relations between Israel and India [1][2] - The company aims to leverage its innovative light and vision control technology to capitalize on India's rapid economic growth, projected to reach a GDP growth rate of 6.5% in 2025 and 2026 [1][2] - Gauzy is strategically prioritizing its expansion in India, where it has already established relationships with key players in various sectors, including real estate and transportation [2][3] Company Overview - Gauzy Ltd. is a fully-integrated company focused on the research, development, manufacturing, and marketing of light and vision control technologies [4] - The company is headquartered in Tel Aviv, Israel, with subsidiaries in multiple countries, including Germany, France, the United States, and China [4] - Gauzy serves leading brands across various industries, including aeronautics, automotive, and architecture, in over 30 countries [4] Market Opportunities - India is identified as a massive growth opportunity for Gauzy, driven by an expanding middle class, a youthful population, and significant public infrastructure investments exceeding $1 trillion [2] - The company has begun installing its Polymer Dispersed Liquid Crystal (PDLC) adhesive smart glass film in new buildings and has secured multiple orders in the hospitality sector [2] - Gauzy's technology is already featured in Indian Railways' vistadome coaches, enhancing passenger experiences with scenic views [2]

Core Insights - Gauzy's Smart-Vision ADAS technology is operational on over 2,500 buses in London, capturing approximately 30% of the market share in the U.K. capital [1][4] - The partnership with Journeo plc enables Gauzy to expand into key European markets including Norway, Iceland, Sweden, and Denmark [1] - The Smart-Vision system enhances road safety by replacing traditional mirrors with high-definition cameras, providing improved visibility and collision prevention [5][7] Company Overview - Gauzy Ltd. specializes in light and vision control technologies, with a focus on safety and sustainability across various industries [8] - The company is headquartered in Tel Aviv, Israel, and operates in over 30 countries, serving leading brands in aeronautics, automotive, and architecture [8] - Journeo plc is a provider of Intelligent Transport Systems, focusing on enhancing efficiency and sustainability in public transport networks [9] Market Dynamics - The global ADAS market is projected to exceed $125 billion by 2029, indicating significant growth potential for companies like Gauzy and Journeo [6] - The collaboration between Gauzy and Journeo aims to reduce on-road accidents and fatalities, positioning both companies as leaders in urban safety technology [2][3]