Financial Position - As of December 31, 2024, the company had approximately $68.0 million in cash and cash equivalents, short-term bank deposits, short-term restricted cash, and marketable securities[361]. - For the year ended December 31, 2024, the company reported a net cash used in operating activities of approximately $76.9 million, compared to $93.1 million in 2023[362][364]. - The company experienced a net loss of approximately $94.8 million for the year ended December 31, 2024, which was impacted by non-cash charges of approximately $17.8 million[363]. Cash Flow and Investments - Cash provided by investing activities for the year ended December 31, 2024, was approximately $75.5 million, primarily from the withdrawal of bank deposits and proceeds from sales and maturities of marketable securities[365]. - The company plans to fund operations from revenues generated from the sale of goods and services, along with funds received under the registered direct offering[370]. Research and Development - The company expects to continue investing substantially in research and development activities and incur commercialization expenses related to product sales, marketing, manufacturing, and distribution[368]. - The company has invested significantly in research and development of LiDAR-based technologies, with a team of 340 employees as of December 31, 2024[375]. Revenue and Performance Obligations - The aggregate amount of the transaction price allocated to remaining performance obligations as of December 31, 2024, was $15.3 million, expected to be recognized as revenues within the next 12 months[374]. - Approximately 92% of the company's revenues were denominated in USD for the year ended December 31, 2024[354]. - The company anticipates additional inflows of NRE payments from various programs to balance some of its losses in future periods[371]. Inventory and Cost Management - Losses from firm non-cancellable commitments for future inventory purchases are charged to cost of revenues unless recoverable through firm sales contracts[386]. - Property and equipment are stated at cost, net of accumulated depreciation and impairment, with useful lives routinely reviewed[387]. - Raw materials and work in process are based on weighted average cost, while finished goods are mainly based on weighted average standard cost method[388].

Financial Data and Key Metrics Changes - In 2024, Innoviz recorded full-year revenues of $24.3 million, an increase from $20.1 million in 2023, exceeding the midpoint of guidance [5][43] - Cash used in operations and capital expenditures decreased to $81.4 million from $99.6 million in 2023 [5] - The company ended 2024 with $68 million in cash and cash equivalents [6][40] - Gross profit was generated for the first time in Q4 2024, with expectations for positive gross margins for the full year of 2025 [42][36] Business Line Data and Key Metrics Changes - The company announced a multi-year $80 million NRE payment plan with key customers, with over $40 million expected in 2025 [10][14] - NRE bookings for 2024 were in line with expectations, and the company anticipates $20 million to $50 million in additional NRE bookings for 2025 [11][36] Market Data and Key Metrics Changes - Innoviz is expanding its production capacity significantly in 2025 to meet future customer demands [8] - The partnership with Mobileye has led to programs with several new OEMs, indicating a strong market position [8][17] Company Strategy and Development Direction - Innoviz plans to explore opportunities outside the automotive industry while maintaining a focus on automotive applications [9][34] - The company aims to become the leading Tier 1 automotive LiDAR supplier, leveraging its superior technology and strengthened balance sheet [49] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving long-term goals and reaching profitability by the end of the decade [16] - The company expects a more than twofold increase in revenues year-over-year for 2025, driven by NRE payments and LiDAR sales [36][35] Other Important Information - The company has optimized operations to deliver approximately $12 million in annual savings [7][15] - Innoviz is actively engaging with multiple OEMs on RFIs and RFQs across various platforms, indicating a robust pipeline of opportunities [31][32] Q&A Session Summary Question: Update on potential nomination with top auto OEM - Innoviz has passed legal discussions and is awaiting final alignment from the customer [53] Question: Expectations for free cash flow and cash burn reduction - The company expects to continue reducing cash burn, with NREs contributing positively [55] Question: Insights on potential tariff implications - Currently, there is no impact from tariffs, and interest in the U.S. market is increasing due to Innoviz's geopolitical neutrality [64] Question: Data insights on LiDAR's role in driving decisions - LiDAR plays a significant role in complex driving scenarios, with some customers reporting over 90% reliance on LiDAR for decision-making [68] Question: Clarification on NRE bookings - NREs are paid by customers for development support before production ramp-up, with payments tied to milestones [76][78] Question: Milestones for VW ID Buzz program - Innoviz is approaching the C-sample stage, which is critical for production validation [98][100] Question: Update on BMW China platform - BMW's Level 3 platform is awaiting approval, and Innoviz's LiDAR provides a substantial quality advantage for Level 3 and Level 4 systems [110][112]

Innoviz Technologies (INVZ) Q4 2024 Earnings Call February 26, 2025 05:57 PM ET Company Participants Omer 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 - Research Analyst Operator Good morning. I would like to welcome you to our Q4 and full year twenty twenty four earnings conference call. Joining us today are Omer Kilaev, Chief Executive O ...

Group 1: Earnings Performance - Innoviz Technologies reported a quarterly loss of $0.09 per share, better than the Zacks Consensus Estimate of a loss of $0.11, and improved from a loss of $0.18 per share a year ago, representing an earnings surprise of 18.18% [1] - The company posted revenues of $6.03 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 4.79%, and down from $14.92 million in the same quarter last year [2] - Over the last four quarters, Innoviz has surpassed consensus EPS estimates just once and topped consensus revenue estimates two times [2] Group 2: Stock Performance and Outlook - Innoviz Technologies shares have declined approximately 51.6% since the beginning of the year, contrasting with the S&P 500's gain of 1.3% [3] - The company's earnings outlook is mixed, with the current consensus EPS estimate for the coming quarter at -$0.09 on revenues of $11.54 million, and -$0.29 on revenues of $86.89 million for the current fiscal year [7] - The Zacks Rank for Innoviz is currently 3 (Hold), indicating that shares are expected to perform in line with the market in the near future [6] Group 3: Industry Context - The Automotive - Original Equipment industry, to which Innoviz belongs, is currently ranked in the bottom 32% 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 can impact investor sentiment [5]

Q4 2024 Earnings Presentation February 26, 2024 Forward Looking Statements This presentation contains certain forward-looking statements within the meaning of the federal securities laws, including statements regarding the services offered by Innoviz, the anticipated technological capability of Innoviz's products, the markets in which Innoviz operates, expected NRE payments, Innoviz's projected future operational and financial results, including revenue and NREs. These forward-looking statements generally a ...

Core Insights - Innoviz Technologies Ltd. reported strong performance in 2024, with significant developments that could enhance its financial and operational position for 2025 and beyond [2][5] - The company aims for revenues between $50 million and $60 million in 2025, alongside additional NRE bookings of $20 million to $50 million [5][13] Commercial and Strategic Updates - Innoviz entered into an approximately $80 million NRE payments plan with key customers, with over $40 million expected in 2025 [2][6] - The company announced operational optimizations projected to save $12 million annually, enhancing cash runway and accelerating profitability [2][6] - Innoviz completed a registered direct offering generating approximately $40 million, improving financial resilience and operational capacity [2][6] Financial Results - Revenues for 2024 were $24.3 million, up from $20.9 million in 2023, driven by NRE services and production units [7] - Operating expenses decreased by 17% to $100.8 million in 2024, compared to $121.0 million in 2023 [7] - The net loss for 2024 was $94.8 million, compared to a loss of $123.5 million in 2023, with a basic and diluted net loss per share of $0.57 [17][20] Liquidity and Financial Position - As of December 31, 2024, the company had approximately $68 million in liquidity, including cash and cash equivalents, short-term deposits, and marketable securities [8] - Total assets decreased to $132 million in 2024 from $219 million in 2023, with total shareholders' equity at $78.9 million [18][19] Future Outlook - Innoviz is well-positioned for multiple program SOPs in 2026 and volume production of LiDARs in 2027, with partnerships with Mobileye and NVIDIA enhancing growth opportunities [5][6] - The company continues to advance existing programs and explore new opportunities with notable OEMs across various regions [6]

Core Viewpoint - Innoviz Technologies Ltd. has announced a definitive securities purchase agreement to sell 28,776,978 units at a price of $1.39 per unit, aiming to raise approximately $40 million for general business purposes [1][2]. Group 1: Securities Offering Details - The offering consists of ordinary shares and warrants, with each unit comprising one ordinary share and 0.8 of a warrant to purchase one ordinary share [1]. - The warrants are immediately exercisable at $1.69 per share and will expire five years from issuance [1]. - The offering is expected to close on February 11, 2025, subject to customary closing conditions [1]. Group 2: Financial Proceeds and Use - Total gross proceeds from the offering are anticipated to be around $40 million, before placement agent fees and estimated offering expenses, assuming no warrants are exercised [2]. - Innoviz intends to utilize the proceeds for general business purposes [2]. Group 3: Company Background - Innoviz is a global leader in LiDAR technology, serving as a Tier 1 supplier to major automotive manufacturers [5]. - The company's LiDAR and perception software are designed to enhance safety and performance, surpassing human driving capabilities [5]. - Innoviz operates across the U.S., Europe, and Asia, and has been selected by premium car brands for consumer vehicles and various commercial applications [5].

Core Viewpoint - Innoviz Technologies Ltd. is set to release its earnings results for Q4 and the full year of 2024 on February 26, 2025, before market opening [1] Financial Results Announcement - The earnings results will be discussed in a conference call and webinar at 9:00 a.m. Eastern Time on the same day, followed by a Q&A session for investors [2] - A press release with operational and financial results will be issued prior to the call [2] Recent Corporate Developments - Innoviz has entered into a multi-year NRE payment plan worth approximately $80 million with key customers, expecting over $40 million in cash payments in 2025 [4] - The company’s LiDAR technology will be integrated into Mobileye's Mobileye Drive™ platform, which is adopted by major vehicle manufacturers globally [4] - Innoviz's perception software has been optimized for the NVIDIA DRIVE AGX Orin platform [4] - As of December 31, 2024, Innoviz reported a cash position of $68.0 million, defined as cash and cash equivalents, bank deposits, marketable securities, and short-term restricted cash [4][5] - The company plans to implement operational optimizations in the first half of 2025 to enhance profitability and free cash flow generation [4] Company Overview - Innoviz is a global leader in LiDAR technology, serving as a Tier-1 supplier to leading automotive manufacturers and aiming for a future with safe autonomous vehicles [6] - The company's LiDAR and perception software surpass human driving capabilities, meeting stringent automotive performance and safety standards [6]

Core Viewpoint - Innoviz Technologies Ltd. is optimizing its operations to extend cash runway and accelerate progress towards profitability and free cash flow generation [1][6] Group 1: Operational Changes - The company will reduce its headcount by approximately 9% to maximize efficiencies and de-emphasize mature development segments [1][3] - The realignment is expected to deliver cost savings of approximately $12 million in 2025, with cash savings beginning in Q1 2025 and run rate savings achieved by the end of Q2 2025 [3][6] Group 2: Market Position and Strategy - Innoviz has established itself as a market leader in the LiDAR industry, collaborating with major companies like Mobileye and Nvidia to meet OEM requirements [2] - The strategic actions are part of a thoughtful process to align development efforts with customer needs and streamline the cost structure [2][6] Group 3: Financial Outlook - The company anticipates minimal cash costs associated with the strategic actions, focusing on reducing planned cash outlays for 2025 [3][6] - Innoviz remains confident in achieving long-term goals and reaching profitability while delivering significant value in the future [2]

Core Insights - Innoviz's collaboration with NVIDIA marks a significant advancement in the development of high-performance, AI-enabled perception systems for autonomous driving and advanced driver-assistance systems (ADAS) [2][4] - The integration of Innoviz's perception software with the NVIDIA DRIVE Orin platform enhances real-time processing and object detection capabilities, contributing to improved safety and performance in autonomous vehicles [2][3] Company Overview - Innoviz is recognized as a global leader in LiDAR technology, serving as a Tier 1 supplier to major automotive manufacturers and focusing on the development of safe autonomous vehicles [5] - The company's LiDAR and perception software surpass human driving capabilities, aiming to minimize errors and meet stringent automotive safety standards [5] Technological Advancements - Innoviz's technology will be showcased at CES 2025, demonstrating the integration of its software and hardware with NVIDIA DRIVE OGX Orin, highlighting the potential for fully autonomous systems [4] - The partnership with NVIDIA allows Innoviz to provide a powerful combination of LiDAR sensors and perception software, facilitating the transition from L2+ ADAS to fully autonomous vehicles [3]