Core Insights - Mercedes-Benz has integrated Gauzy's dual smart glass technology, combining SPD and PDLC, into approximately 75% of the glazing in its new Vision V show car, showcasing the evolution and benefits of automotive smart glass technology [1][3][5] Company Collaboration - The partnership between Mercedes-Benz and Gauzy continues to strengthen, emphasizing Mercedes-Benz's commitment to innovative technologies in its show cars [2][5] - This collaboration marks the first time Mercedes-Benz has selected Gauzy's dual technology stack for its vehicles, enhancing the dynamic shading and privacy features [5][7] Product Features - The Vision V features a luxurious design aimed at redefining comfort, with smart glass windows that allow seamless transitions between transparent, shaded, and private states [3][7] - The combined SPD and PDLC technologies help mitigate glare, reduce cabin temperature, and enhance energy efficiency while maintaining visibility [7][10] Market Trends - The automotive smart glass market is projected to reach a total addressable market (TAM) of $25 billion by 2028, indicating strong demand and accelerating adoption of smart glass technologies by leading OEMs [10]

Core Insights - Gauzy Ltd. has been selected by Air France-KLM Group to provide its electromechanical shading system for the airline's new La Première first-class suites, marking a significant opportunity for the company in the airline shading and lighting market, which is valued at $600 million annually and expected to grow at a CAGR of 6.4% from 2023 to 2028 [1][2] Company Overview - Gauzy is a leader in vision and light control technologies, with a focus on research, development, manufacturing, and marketing of these technologies across various industries [5] - The company has a strong presence in the airline industry, particularly in cockpit shading, where it holds over 95% market share, and is expanding its footprint in cabin shading [2][3] Strategic Partnerships - The partnership with Air France exemplifies Gauzy's strategy to align with industry leaders to enhance passenger experience, integrating advanced shading technology into premium airline offerings [3][4] - Gauzy's technology allows passengers to control light settings in their suites, enhancing comfort and privacy, while also providing operational efficiencies for airline crew [3] Market Position and Growth - Gauzy is in serial production for cabin shades with several airline OEMs, including Embraer and HondaJet, and aims to expand its technology into architecture and automotive sectors [2] - The company is committed to leveraging its expertise in light and vision control to drive innovation and achieve growth objectives [4]

Core Insights - Gauzy Ltd. has been selected by Air France-KLM Group to provide its electromechanical shading system for the airline's new La Première first-class suites, marking a significant opportunity for the company in the airline shading and lighting market, which is valued at $600 million annually and expected to grow at a CAGR of 6.4% from 2023 to 2028 [1][2] Company Overview - Gauzy is a global leader in vision and light control technologies, with a focus on research, development, manufacturing, and marketing of these technologies across various industries [5] - The company has a strong presence in the aeronautics, automotive, and architecture sectors, serving leading brands in over 30 countries [5] Market Position - Gauzy has captured significant market share in airline cabin shading and holds over 95% market share in cockpit shading [2] - The company is in serial production for cabin shades with several airline OEMs, including Embraer, HondaJet, and Daher, indicating a robust demand for its products [2] Product Features - The award-winning electromechanical double-pleated shading system allows passengers to choose between translucent and blackout settings, enhancing comfort and privacy [3] - Centralized control for crew members streamlines operations, saving time and reducing costs associated with manual shade adjustments [3] Strategic Vision - The CEO of Gauzy emphasized the company's strategy of partnering with industry leaders to enhance passenger experience and aims to leverage its cockpit shading dominance to expand further into cabin shading [4] - The company is committed to innovation and product advancement to achieve growth objectives and create sustained value for shareholders and customers [4]

Core Insights - Gauzy Ltd. is a global leader in light and vision control technologies, with a strong local presence in the U.S. through its Florida production facility, which supports various business divisions including architecture, automotive, and aeronautics [1][2][4] - The new 2025 tariff policy from the U.S. government is expected to have minimal to no impact on Gauzy's product portfolio due to the use of U.S.-originated intermediates and substantial transformation occurring within the U.S. [3][4] Company Operations - Gauzy operates four proprietary production sites located in Tel Aviv (Israel), Melbourne (Florida), Lyon (France), and Stuttgart (Germany), ensuring optimized delivery of its products [1][2] - The Florida facility serves the majority of U.S. customers and is expanding in response to business needs, maintaining high-quality production standards [2][4] Market Position - Gauzy's established local presence in the U.S. differentiates it from competitors who may not have similar capabilities, allowing it to meet high-quality standards such as ISO9100 and IATF 16949:2016 [2][4] - The company serves leading brands across various industries in over 30 countries, leveraging a certified distribution channel [4]

Core Insights - Gauzy Ltd. has unveiled its smart glass facade at the new MSC Terminal in Miami, which is the largest and most technologically advanced cruise ship terminal globally, showcasing the potential of smart glass in architectural applications [3][9] - The smart glass covers 75% of the terminal's facade and is expected to be seen by approximately 36,000 visitors and 42,000 vehicles daily, reaching over 30 million people annually [1][3] - The global addressable market for smart glass in buildings is valued at $44 billion, with the facade glass market projected to grow to $412.16 billion by 2032 and the transparent display market expected to reach $38.28 billion by 2032 [7] Company Overview - Gauzy Ltd. specializes in light and vision control technologies, focusing on the research, development, manufacturing, and marketing of smart glass technologies and advanced driver assistance systems (ADAS) [10] - The company has a significant presence in Miami, a rapidly growing U.S. real estate market, and has completed several notable projects, indicating a strong demand for innovative building materials in the region [8] Project Details - The installation includes over 11,000 square feet (1,100 square meters) of exterior-grade grey PDLC smart film, which remains transparent during the day and transforms into a digital art display at night [4][6] - The project meets public artworks ordinance requirements by integrating artistic elements into the terminal's design, showcasing how digital displays can contribute to public art [6][7] Strategic Partnerships - Gauzy collaborates with MSC and Fincantieri Infrastructure, leaders in the cruise industry, to enhance travel experiences through innovative smart glass technologies [5][9] - The partnership aims to redefine passenger experiences at cruise terminals and on-board vessels, highlighting the intersection of sustainable technology and immersive art [9]

TEL AVIV, Israel, March 27, 2025 (GLOBE NEWSWIRE) -- Gauzy Ltd. (NASDAQ:GAUZ), a global leader of vision and light control technologies, today announced that its senior management will attend the Jefferies Virtual Cleantech and Utility Equipment Conference on Friday, March 28, 2024. About Gauzy Gauzy Ltd. is a fully-integrated light and vision control company, focused on the research, development, manufacturing, and marketing of vision and light control technologies that are developed to support safe, susta ...

Company Overview - Gauzy is identified as an early-stage disruptor targeting a significant addressable market valued at $44 billion [1] Investment Philosophy - The investment approach emphasizes seeking bargains in any market, particularly in emerging markets, and is influenced by renowned investors like Li Lu and Peter Lynch [1] - The investor adopts an owner-mindset, focusing on individual company performance rather than macroeconomic factors [1] Economic Perspective - The investment philosophy is heavily influenced by Austrian economic thinkers such as Henry Hazlitt, Friedrich Hayek, and Ludwig Von Mises, indicating a preference for clear and logical economic reasoning [1]

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].