Financial Data and Key Metrics Changes - Innoviz is positioned as a leader in the automotive LIDAR space with a focus on both level three and level four applications, indicating a strategic shift to capture a larger market share [10][11] - The company anticipates significant growth in production capacity, with plans to ramp up operations in collaboration with contract manufacturer Fabrinet [41][42] Business Line Data and Key Metrics Changes - Innoviz has transitioned from focusing solely on level three consumer applications to also include level four commercial applications, effectively doubling its business opportunity [11][57] - The average selling price (ASP) for level three applications is estimated between $600 to $800 per vehicle, while level four applications could reach $6,000 to $7,000 per vehicle due to the deployment of multiple LIDAR units [18][19] Market Data and Key Metrics Changes - The automotive market is projected to see a 10% penetration of LIDAR technology by 2030, translating to approximately 8 to 9 million units sold annually [54][55] - The commercial application market is maturing faster than expected, with a clear return on investment (ROI) model that enhances business opportunities for Innoviz [57][58] Company Strategy and Development Direction - Innoviz aims to win additional programs and ramp up production capacity, focusing on both consumer and commercial applications [11][12] - The company is also exploring opportunities in non-automotive markets, leveraging its automotive-grade LIDAR technology for applications in security, smart cities, and industrial uses [34][36] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of AI in enabling autonomous driving, stating that without AI, autonomous features cannot be realized [20][22] - The company expects significant volume increases starting in 2026, particularly in level four applications, while level three deployments are anticipated to ramp up in 2027 and beyond [16][56] Other Important Information - Innoviz's partnership with major platform players like Mobileye and NVIDIA is crucial for its growth, as these partnerships provide integrated solutions that save time and resources for OEMs [26][29] - The company is committed to maintaining a CapEx-light model by utilizing contract manufacturers, which allows for flexibility and scalability in production [41][43] Q&A Session Summary Question: How do you see the market for level three and level four applications developing? - Management noted that level four applications are gaining traction due to maturing technology and favorable business models, while level three applications are already being deployed in high-end vehicles [13][16] Question: What is the significance of partnerships with platform players like NVIDIA and Mobileye? - These partnerships are essential as they provide a ready-made solution for OEMs, reducing the time and cost associated with developing autonomous driving technologies [26][29] Question: How does Innoviz plan to enter non-automotive markets? - Innoviz is strategically looking to leverage its automotive-grade LIDAR technology for applications in security and smart cities, where there is already a demand for effective LIDAR solutions [34][36] Question: What trends are expected to impact the automotive sector in the next five to ten years? - Management anticipates a significant increase in LIDAR adoption, with projections of 8 to 9 million units sold annually by 2030, driven by safety considerations and the need for differentiation in the automotive market [54][55][56]

Core Insights - Innoviz has developed InnovizSMART, a rugged LiDAR sensor designed for smart infrastructure applications, featuring low power consumption and high-resolution 3D point cloud capabilities for accurate object detection up to 400 meters [1][2] - The sensor is built on the same technological foundation as Innoviz's automotive solutions, ensuring high performance and reliability for various applications, including traffic optimization and security [2] - Innoviz is recognized as a global leader in LiDAR technology, serving major automotive manufacturers and working towards the advancement of safe autonomous vehicles [3] Product Features - InnovizSMART offers true long-range detection of up to 400 meters, accurately identifying pedestrians and vehicles even at extended distances [6] - The sensor is designed to be resilient against dust, debris, and extreme temperatures, ensuring consistent performance in harsh conditions [6] - It features PoE-enabled connectivity, allowing for quick deployment on existing infrastructure using standard Ethernet, which simplifies installation and reduces costs [6] - InnovizSMART is privacy-conscious, capturing spatial data without identifying personal characteristics, thus enhancing safety and efficiency while maintaining privacy standards [6]

Financial Data and Key Metrics Changes - The company is optimistic about the maturity of the industry regarding autonomous features, indicating a shift from hype to practical implementation [1][4] - Predictions suggest a 10% penetration of Level 3 vehicles by 2030, with Level 4 for commercial applications expected to be more abundant by the same year [4][5] Business Line Data and Key Metrics Changes - The company sees rapid maturation in two main segments: consumer applications (Level 3) and commercial applications (Level 4) [3][4] - For Level 3 applications, the company sells one LiDAR per vehicle, while for Level 4, it sells approximately nine LiDARs per vehicle, significantly increasing revenue potential [23][24] Market Data and Key Metrics Changes - The consumer market is projected to sell between 90 million to 100 million cars annually, while commercial applications have lower vehicle numbers but higher content per vehicle [22] - The company anticipates hundreds of millions in revenues if the projected vehicle sales materialize by 2030 [24] Company Strategy and Development Direction - The company aims to win more programs and mature its production line to meet automotive standards [48][51] - Collaborations with industry leaders like Mobileye and NVIDIA are crucial for integrating technology and expanding market reach [17][20] Management's Comments on Operating Environment and Future Outlook - The management acknowledges a slowdown in automaker sourcing due to various factors, including economic conditions and the rise of EVs [7][9] - There is optimism about new business awards in the next twelve months as the industry adapts to new technologies [9][10] Other Important Information - The company is focused on developing the Innoviz 3 line, aiming to improve performance while reducing costs, which is essential for broader market penetration [45][46] - The non-automotive vertical is seen as a significant opportunity, with existing applications in smart cities and industrial uses [38][40] Q&A Session Summary Question: How should investors frame the opportunity today regarding LiDAR penetration? - The company sees rapid maturation in consumer applications led by Level 3 and commercial applications by Level 4, with significant growth expected in the coming years [3][4] Question: What led to the slowdown in automaker sourcing? - The slowdown was attributed to various industry challenges, including economic factors and the need for OEMs to regroup after failed programs [7][9] Question: How is the competitive environment today? - The competitive landscape has clarified, with fewer companies meeting the necessary specifications, positioning Innoviz favorably due to its proven technology and partnerships [11][12] Question: What are the company's goals for the next six to eight months? - The primary goals include winning more programs and ensuring the production line is ready for automotive standards [48][51]

Core Insights - The automotive sensors market is experiencing exponential growth driven by innovations, consumer demand, and regulatory standards [1][2] - Companies like Innoviz Technologies, Bosch, OmniVision, and Continental are actively investing in innovative sensor solutions and filing patents [2][3] - The report identifies the top 10 automotive sensing technologies, including LiDAR, RADAR, Camera Sensors, and 3D Vision Sensors, which enhance vehicle functions and performance [2][3] Company Coverage - Innoviz Technologies, Bosch, OmniVision, and Continental are highlighted as key players in the automotive sensing technology sector [2][3] Key Topics Covered - The report addresses strategic imperatives, ecosystem scope and segmentation, growth drivers and restraints, and trends in sensor technologies [2][3] - It also includes an analysis of intellectual property filings and funding deals in the automotive sensing industry [2][3] Growth Opportunities - The report identifies growth opportunities in electric vehicles, vehicle connectivity and telematics, and vehicle health monitoring [6] - It emphasizes the importance of advancements in sensing technologies and their applications in the automotive industry [3][6]

Core Insights - Innoviz Technologies Ltd. reported a quarterly loss of $0.05 per share, better than the Zacks Consensus Estimate of a loss of $0.08, and an improvement from a loss of $0.18 per share a year ago, representing an earnings surprise of 37.50% [1] - The company posted revenues of $17.39 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 5.08%, but showing significant growth from $7.06 million in the same quarter last year [2] - Innoviz Technologies shares have declined approximately 39.9% since the beginning of the year, contrasting with a slight gain of 0.1% in the S&P 500 [3] Earnings Outlook - The earnings outlook for Innoviz Technologies is mixed, with the current consensus EPS estimate for the upcoming quarter at -$0.07 on revenues of $12.47 million, and for the current fiscal year at -$0.29 on revenues of $59.65 million [7] - The company's Zacks Rank is currently 3 (Hold), indicating that shares are expected to perform in line with the market in the near future [6] Industry Context - The Automotive - Original Equipment industry, to which Innoviz Technologies belongs, is currently ranked in the bottom 42% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact investor sentiment and stock performance [5]

Innoviz Technologies (INVZ) Q1 2025 Earnings Call May 14, 2025 09:00 AM ET Company Participants Ada Menaker - VP - Corporate Development & Investor RelationsOmer David Keilaf - Co-Founder, CEO & DirectorEldar Cegla - Chief Financial OfficerJash Patwa - Equity Research AssociateCasey Ryan - Director of Research Conference Call Participants Mark Delaney - AnalystKevin Garrigan - Senior Research Analyst Ada Menaker Good morning. I would like to welcome you to our Q1 twenty twenty five earnings conference call. ...

Financial Data and Key Metrics Changes - Innoviz reported record revenues of $17,400,000 in Q1 2025, which is approximately three times sequentially and 2.5 times year over year [3][12] - Gross margin reached approximately 40%, marking the highest level in the company's history [3][13] - The cash position at the end of the quarter was $85,400,000, bolstered by a registered direct offering [13][28] Business Line Data and Key Metrics Changes - Revenues were significantly driven by NRE payments under an expanded payment plan, which increased from approximately $80,000,000 to $95,000,000 [4][12] - Sales of LiDARs to both new and existing customers also contributed to revenue growth [12] Market Data and Key Metrics Changes - The company is seeing strong traction in the automotive sector, particularly with partnerships for robotaxi deployments [6][19] - Collaborations with major players like Volkswagen and NVIDIA are expanding, indicating a growing market presence [20][34] Company Strategy and Development Direction - Innoviz aims to become the world's premier large-scale supplier of LiDAR solutions for autonomous driving [11][34] - The partnership with Fabrinet is expected to enhance production capabilities and meet customer demand efficiently [5][15] - The company is focusing on both automotive and non-automotive applications, targeting smart city solutions and safety [22][76] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a more than twofold increase in revenues year over year for 2025, projecting revenues between $50,000,000 and $60,000,000 [25] - The company anticipates fluctuations in margins due to the timing of NRE revenues and product ramp timelines [29] - Management is closely monitoring the impact of U.S. tariffs, expecting minimal effects on operations [27][48] Other Important Information - The company is actively engaged in discussions with several integrators for deploying LiDAR technology in various applications [22][62] - Innoviz is advancing its technological capabilities, with a focus on meeting higher-level KPIs required for level three and level four applications [24][77] Q&A Session Summary Question: What market share does Innoviz expect in the global AV deployment? - Innoviz is collaborating with strong platform players and expects to gain a significant first-mover advantage in the robotaxi market due to partnerships with companies like Volkswagen and Uber [39][40] Question: What are the expected gross margins for NRE programs? - Gross margins are expected to be positive but may not consistently reach the high levels seen in Q1 due to the nature of NRE revenues [42][44] Question: What is the impact of tariffs on Innoviz's LiDAR shipments? - Innoviz does not fall under the 25% tariff category and expects minimal impact from tariffs, with flexibility in manufacturing options through Fabrinet [48][49] Question: Can you provide insights into the partnership with NVIDIA on the Hyperion platform? - Innoviz is a key player in the Hyperion platform, which is a full-stack solution offered by NVIDIA, and is involved in daily discussions regarding integration [51][55] Question: How is Innoviz approaching non-automotive applications? - Innoviz is primarily working through integrators and distributors, providing high-performance LiDAR solutions that can displace existing technologies [62][64]

Financial Performance - Revenues grew to $17.4 million in Q1 2025, up approximately 190% sequentially and 150% year-over-year[6, 8, 23] - Gross margin reached a record 40% due to positive NRE contribution[6, 8] - Cash used in operations decreased to $20.7 million in Q1 2025, compared to $23.0 million in Q1 2024[8, 23, 24] - The company's cash position grew to $85.4 million[8, 23] NRE Payment Plan - The NRE payment plan expanded from approximately $80 million to approximately $95 million, with the majority of payments expected in 2025-2026[5, 8] - The company is targeting $20-50 million in new NRE bookings[20] Manufacturing and Partnerships - A partnership with Fabrinet was announced to launch mass production of the InnovizTwo platform[5] - Fabrinet will act as the manufacturing partner for the InnovizTwo product platform[10] Program Updates and Engagements - The company is accelerating the delivery of LiDARs to VW to support the expansion of autonomous shuttle operations with hundreds of ID Buzz AD vehicles ahead of fleet deployments[5, 14] - There is growing momentum in the relationship with NVIDIA and the Hyperion platform, with progress being made with a major OEM evaluating Hyperion[5, 16] Targets - The company is aiming for revenue between $50-60 million, more than double 2024 levels[20]

This development is supported by Innoviz's recently announced partnership with Fabrinet for mass production of the InnovizTwo LiDAR platform. Together, these advances manifest Innoviz's readiness for scaled manufacturing and deployment ahead of next year's planned start of production (SOP), aligning seamlessly with multiple commercialization plans. This enhanced engagement deepens the relationship between Innoviz and Volkswagen, building on the successful integration of InnovizTwo Long-Range LiDARs and Inno ...

This announcement contains certain forward-looking statements within the meaning of the federal securities laws, including statements regarding Innoviz's expectations, plans, and future prospects related to the strategic partnership with Fabrinet, the anticipated scaling of production, the economic benefits of the partnership and Fabrinet's compliance with the highest automotive-grade standards. These forward-looking statements generally are identified by the words "believe," "project," "expect," "anticipat ...