Arbe Announces Q4 and Full Year 2023 Financial Results

Core Insights - Arbe Robotics Ltd. reported financial results for Q4 and full year 2023, highlighting significant progress in its chipset production and partnerships with Tier-1 suppliers [1][2][4]. Financial Performance - Q4 2023 revenues were $0.35 million, up from $0.15 million in Q4 2022, while full year revenues decreased to $1.5 million from $3.5 million in 2022 [4]. - The gross margin for Q4 2023 was negative 54.5%, compared to negative 45.6% in Q4 2022, with a full year gross margin of negative 2.6% versus positive 63.5% in 2022 [4]. - Operating expenses in Q4 2023 were $11.9 million, down from $14.0 million in Q4 2022, and full year operating expenses were $46.8 million compared to $50.0 million in 2022 [5]. - The net loss for Q4 2023 was $9.3 million, an improvement from a net loss of $11.1 million in Q4 2022, while the full year net loss was $43.5 million compared to $40.5 million in 2022 [6]. Business Developments - Arbe completed its chipset pre-production phase and is preparing for mass production in 2024, with Tier-1 suppliers in China set to begin mass production of radar systems based on Arbe's chipset [2][3]. - The company received a second order from a leading Western truck company, indicating progress towards full commercial orders [2]. - Arbe's chipset is under evaluation by key players in the passenger vehicle market, which collectively account for over 40% market share, with projected radar revenue of $7.5 billion by the end of the decade [2]. Strategic Initiatives - Arbe is initiating a dual listing on the Tel Aviv Stock Exchange (TASE) to enhance trading volume and is negotiating bond issuance to secure working capital for production ramp-up in 2025 [2]. - The company aims to achieve four design-ins with automakers and anticipates strong interest in its offerings despite extended decision timelines from OEMs [8]. Outlook - The company expects 2024 revenues to align with those of 2023, with growth anticipated in 2025 as it aims for full production in the second half of 2024 [8]. - Adjusted EBITDA for 2024 is projected to be in the range of negative $30 million to negative $36 million [8].