indie Semiconductor(INDI) - 2024 Q2 - Quarterly Results

markdown [Financial and Business Highlights](index=1&type=section&id=Financial%20and%20Business%20Highlights) Q2 2024 revenue was $52.4 million, flat year-over-year, with 50.3% non-GAAP gross margin, anticipating H2 growth [Q2 2024 Performance Summary](index=1&type=section&id=Q2%202024%20Performance%20Summary) | Metric | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | Revenue | $52.4 million | $52.1 million | | Non-GAAP Gross Margin | 50.3% | N/A | | GAAP Operating Loss | ($36.6 million) | ($40.7 million) | | Non-GAAP Operating Loss | ($17.2 million) | ($16.3 million) | | GAAP Loss per Share | ($0.11) | ($0.09) | | Non-GAAP Loss per Share | ($0.09) | N/A | - Management believes the company has navigated the cyclical trough in the automotive market and anticipates a return to revenue growth in H2 2024, driven by new product ramps. The company expects outsized growth in 2025 and beyond, propelled by large-scale radar and computer vision programs[2](index=2&type=chunk) [Key Business Developments](index=1&type=section&id=Key%20Business%20Developments) - Key operational achievements in Q2 2024 include:[3](index=3&type=chunk) - Secured Automatic-Emergency-Breaking (AEB) program wins with three global OEMs - Captured lighting design wins at major North American and South Korean OEMs - Achieved functional verification of the radar SoC with a lead customer for a 2025 ramp - Ramped production of Occupant-Monitoring-System (OMS) solutions for Hyundai-Kia and multiple Chinese OEMs - Reached a milestone of **400 million total device shipments** [Q3 2024 Outlook](index=1&type=section&id=Q3%202024%20Outlook) - For Q3 2024, the company projects revenue to increase **between 0% and 5% sequentially, with a midpoint of 2.5%**[4](index=4&type=chunk) - Non-GAAP gross margin for Q3 2024 is expected to be **approximately 50%**[4](index=4&type=chunk) [Financial Statements](index=4&type=section&id=Financial%20Statements) Q2 2024 total revenue was $52.4 million, with a GAAP net loss of $21.0 million, and total assets of $797.3 million [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) | (In thousands, except per share) | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | | :--- | :--- | :--- | | Total revenue | $52,355 | $52,108 | | Loss from operations | ($36,634) | ($40,725) | | Net loss | ($21,000) | ($13,563) | | Net loss per share — basic & diluted | ($0.11) | ($0.09) | [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) | (In thousands) | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $112,347 | $151,678 | | Total current assets | $247,556 | $271,820 | | Total assets | $797,326 | $818,876 | | Total current liabilities | $93,144 | $138,875 | | Total liabilities | $294,693 | $341,851 | | Total stockholders' equity | $502,633 | $477,025 | [Non-GAAP Financial Measures](index=6&type=section&id=Non-GAAP%20Financial%20Measures) Non-GAAP measures reconcile GAAP figures, showing Q2 2024 operating loss of $17.2M and net loss of $18.0M [Reconciliation of GAAP to Non-GAAP Measures](index=6&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) | (In thousands) | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | **Non-GAAP Gross Profit** | **$26,338** | **$27,214** | | GAAP Revenue | $52,355 | $52,108 | | *Key Adjustments* | | | | Amortization of intangible assets | ($3,727) | ($4,267) | | (In thousands) | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | **Non-GAAP Operating Loss** | **($17,206)** | **($16,326)** | | GAAP loss from operations | ($36,634) | ($40,725) | | *Key Adjustments* | | | | Share-based compensation | $12,900 | $13,292 | | Amortization of intangible assets | $5,970 | $3,676 | | (In thousands) | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | **Non-GAAP Net Loss** | **($17,999)** | **($16,360)** | | GAAP Net loss | ($21,000) | ($13,563) | | *Key Adjustments* | | | | Gain from change in fair value | ($17,331) | ($27,349) | | Share-based compensation | $12,900 | $13,292 | [Discussion on the Use of Non-GAAP Measures](index=9&type=section&id=Discussion%20on%20the%20Use%20of%20Non-GAAP%20Measures) - Management uses non-GAAP financial measures to evaluate operating performance, compare against past periods and peers, make operating decisions, and forecast for future periods[16](index=16&type=chunk) - Key adjustments to derive non-GAAP figures include excluding:[17](index=17&type=chunk)[18](index=18&type=chunk) - Acquisition-related expenses - Amortization of acquisition-related intangibles - Share-based compensation - Gains or losses from changes in fair value of warrants and contingent considerations - Non-cash interest expenses - The company is generally unable to provide a reconciliation for forward-looking non-GAAP measures because certain information, such as unanticipated one-time charges or acquisition expenses, is difficult to predict and not available without unreasonable efforts[24](index=24&type=chunk) [Company Overview and Forward-Looking Statements](index=2&type=section&id=Company%20Overview%20and%20Forward-Looking%20Statements) indie Semiconductor provides automotive solutions, with forward-looking statements subject to macroeconomic and supply chain risks [About indie](index=2&type=section&id=About%20indie) - indie Semiconductor develops innovative, high-performance, and energy-efficient semiconductors and software for ADAS (Radar, LiDAR, Computer Vision), user experience, and vehicle electrification applications[6](index=6&type=chunk) [Safe Harbor Statement](index=3&type=section&id=Safe%20Harbor%20Statement) - The report contains forward-looking statements regarding future business and financial performance, which are subject to significant business, economic, and competitive uncertainties[7](index=7&type=chunk) - Key risk factors that could cause actual results to differ from expectations include:[7](index=7&type=chunk) - Macroeconomic conditions (inflation, interest rates) - Reliance on contract manufacturing and supply chain availability - Competitive product and pricing pressures - Ability to successfully integrate acquisitions