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 integration of Gauzy's technologies helps mitigate glare, reduce cabin temperature, and enhance energy efficiency while maintaining visibility [7][10] Market Potential - 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 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]

Core Insights - The company reported a fourth quarter revenue growth of 41.8%, reaching $31.1 million, driven by strong performance across all segments, particularly in Safety Tech and Aeronautics [1][8] - The adjusted net loss for the quarter narrowed to $3.7 million from $11.2 million in the prior year, marking a significant improvement in profitability [1][11] - The company achieved its first-ever quarter of positive adjusted EBITDA at $0.2 million, compared to a negative $6.0 million in the same quarter last year [1][11] - Full-year sales surpassed $100 million for the first time, with over 80% of sales coming from recurring customers [1][5] - The company introduced a 10-year committed and contracted backlog, indicating strong long-term demand across segments [1] - Initial guidance for 2025 anticipates healthy double-digit revenue growth and the first full year of positive adjusted EBITDA [1][19] Fourth Quarter 2024 Highlights - Revenue for the fourth quarter increased to $31.1 million, a 41.8% increase from $22.0 million in Q4 2023 [7][8] - Gross profit for the quarter was $11.4 million, up 81.4% from $6.3 million in the prior year, with a gross margin improvement to 36.5% from 28.5% [9][10] - Total operating expenses rose to $15.8 million, a 5.5% increase compared to $15.0 million in Q4 2023, primarily due to increased stock-based compensation [10] Full Year 2024 Highlights - Total revenue for the full year reached $103.5 million, a 32.8% increase from $78.0 million in 2023 [7] - The gross margin for the full year improved to 28.7%, up 310 basis points from 25.6% in the previous year [7] - The net loss for the year was $53.2 million, reduced from a loss of $79.3 million in 2023 [7] Segment Performance - **Safety-Tech Division**: Revenue increased by 73.0% to $13.0 million, with gross profit rising 212.7% to $3.0 million [12] - **Aeronautics Division**: Revenue grew by 26.7% to $13.4 million, with gross profit increasing 62.2% to $6.8 million [13] - **Architecture Division**: Revenue rose by 31.8% to $4.1 million, with gross profit up 54.8% to $1.5 million [16] - **Automotive Division**: Revenue decreased by 14.7% to $0.7 million, reflecting timing impacts of full-year orders [17] Financial Position - As of December 31, 2024, the company had total liquidity of $40.6 million, including $5.6 million in cash and a $35.0 million undrawn credit facility [18] - Total debt stood at $38.4 million, with a significant portion being short-term receivable financings [18] Future Outlook - The company expects full-year revenue for 2025 to be in the range of $130 million to $140 million, representing approximately 30% growth compared to 2024 [19] - The anticipated positive adjusted EBITDA for 2025 is expected to be supported by a strong recurring revenue base and operational leverage [19]

Financial Data and Key Metrics Changes - The company reported a loss per share of $0.04 for the entire year, which is the lowest since going public [36] - Revenue for the fourth quarter was about half of that in the third quarter due to automotive production cuts [2] Business Line Data and Key Metrics Changes - The company has seen momentum across multiple markets, indicating potential for significant revenue growth in the future [102] - The automotive sector remains the most predictable market for future revenue, with expectations for large sales in 2026 [105] Market Data and Key Metrics Changes - The company is focused on the premium automotive market, where demand remains strong despite potential tariff impacts [54] - The architectural market presents significant opportunities due to the size of the glass market for buildings and homes [127] Company Strategy and Development Direction - The company aims to maintain an asset-light business model to reduce risks and enhance technology and market expansion [129] - The strategy includes leveraging partnerships with diversified licensees across multiple industries, including automotive, aircraft, and architectural [129] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a profitable quarter in the coming year, contingent on the timing of vehicle releases and architectural projects [103] - The company is optimistic about the introduction of new vehicles in 2025, which could significantly impact revenues [75] Other Important Information - The company has a robust patent portfolio with 250 patents and an equal number of applications, indicating a strong focus on intellectual property protection [87] - Management highlighted the importance of timely announcements regarding significant contracts to improve stock performance [116] Q&A Session Summary Question: What was the reason for the revenue drop in Q4? - Management indicated that automotive production cuts were the primary reason for the revenue decline in the fourth quarter [2] Question: Can the company provide updates on new business announcements? - Management acknowledged the need for better communication and plans to participate in investor conferences to raise awareness [7][8] Question: What is the status of the black particle SPD patent? - Management stated that they are working on strong patent protection but did not disclose specific strategies during the call [13] Question: Is there any progress on the Sun Visor development? - Management confirmed ongoing development on both OEM and aftermarket sides but deferred specifics to licensees [60] Question: What are the expectations for new vehicle introductions in 2025? - Management expects several new vehicle introductions in 2025, with a shorter lead time for implementation compared to previous years [75] Question: How does the royalty structure for the black particles compare to existing agreements? - Management indicated that the royalty structure would likely remain similar, with potential for increased revenue due to higher sales volumes [85]

Financial Data and Key Metrics Changes - Revenues increased by 47% to $1.336 million, driven by a $426,000 increase in royalty income, with a 48% rise in automotive royalties and a 57% increase from aircraft [4][5] - Total expenses decreased by over $165,000, representing a 6% reduction, marking the lowest expense level since 1996 [4] - The net loss for the year was $0.04 per share, an improvement from $0.06 per share last year, indicating the lowest annual loss since going public 38 years ago [5] Business Line Data and Key Metrics Changes - Significant growth was noted in the Ferrari and McLaren business lines, alongside the introduction of the Cadillac Celestiq featuring SPD SmartGlass [6] - Commercial airlines have started incorporating SPD in cabin windows, with notable implementations in Boeing and Airbus aircraft [7] Market Data and Key Metrics Changes - Most revenues and sales are generated in Europe and South America, with a potential shift towards the United States as architectural applications and new domestic vehicles come online [18] Company Strategy and Development Direction - The company is focused on operational efficiency and maintaining an asset-light business model, aiming for cash flow positivity and profitability [113][115] - There is an emphasis on expanding into architectural projects, including retrofitting existing buildings with SPD SmartGlass, which is expected to accelerate the sales cycle [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a profitable quarter in the coming year, contingent on the timing of vehicle releases and architectural retrofits [95] - The company anticipates significant sales growth in 2026, potentially surpassing previous expectations [54] Other Important Information - The introduction of the black particle SPD technology is seen as a significant advancement, with potential market expansion opportunities [15][72] - The company has a robust patent portfolio, with ongoing efforts to protect intellectual property related to new technologies [84] Q&A Session Summary Question: What was the reason for the fourth quarter revenue being about half of the third quarter? - Management indicated that automotive production cuts by carmakers to clear inventory were the primary reason [26] Question: Can we expect announcements regarding new business contracts? - Management confirmed that they will aim to announce significant contracts as they materialize [30] Question: Is there any progress on the sun visor development? - Management confirmed ongoing development on both OEM and aftermarket sides [68] Question: What is the expected impact of tariffs on retail prices? - Management does not expect tariffs to significantly impact revenues, particularly in the premium automotive market [19][62] Question: Are there any updates on the black particle SPD technology? - Management highlighted the importance of the black particle and its potential to expand market opportunities, while also noting the need for further development before mass production [72][84]