indie Semiconductor(INDI) - 2022 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Revenue for Q2 2022 increased by 181% year-over-year and 17% sequentially to a record $25.8 million, with gross margin expanding to nearly 49% [9][26] - Gross profit was $12.5 million, translating into a 48.6% gross margin, up 650 basis points year-over-year and 120 basis points sequentially [26] - Operating loss was $17 million, with a net loss of $16.9 million, resulting in a loss per share of $0.11 [28][30] Business Line Data and Key Metrics Changes - The company reported strong design win momentum across ADAS, user experience, and electrification applications, indicating robust demand for Autotech solutions [8][9] - A new dual channel USB power delivery IC was launched, aimed at enhancing in-cabin vehicle charging systems, with multiple customers already staging high-volume production ramps [15] Market Data and Key Metrics Changes - The semiconductor total addressable market opportunity for automotive radar is projected to grow from $1.8 billion in 2022 to $4.3 billion by 2027, while LiDAR is expected to grow from $150 million to $630 million in the same period [12] - EV sales grew more than 75% in the first half of 2022, while overall US auto sales were down more than 17% [19] Company Strategy and Development Direction - The company is heavily investing in both radar and LiDAR technologies, aiming to capture market share in these modalities, while also focusing on ultrasound and computer vision [13] - The strategic presence in Japan and Korea has led to significant design wins with major OEM brands, enhancing the company's market footprint [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving profitability in the second half of next year, supported by strong order visibility and a diversified product portfolio [30][32] - The company anticipates continued revenue growth of 140% to 150% year-over-year for Q3 2022, with plans to deliver gross margin in the 50% range for the first time [30] Other Important Information - The company opened a new engineering center in Dresden, Germany, expanding its engineering capabilities in the European market [16] - The management highlighted the importance of maintaining strong relationships with strategic EV OEMs to capitalize on the electrification megatrend [21] Q&A Session Summary Question: Update on auto supply chain availability - Management noted that while unit volumes are down, demand remains strong, and supply chain conditions are improving [40][41] Question: Positioning for L2+ and L3 models - Management confirmed strong positioning and investments in sensor modalities required for various levels of autonomy [42][44] Question: Impact of government initiatives on chip manufacturing - Management views government initiatives as a positive tailwind for the industry, expecting to benefit from design-focused carve-outs [45] Question: Comfort with reaching profitability - Management expressed confidence in doubling revenue again, supported by a diversified product portfolio and strong backlog visibility [48] Question: Details on new power IC and design wins - Management highlighted the breakthrough performance of the new power IC and the rapid customer adoption due to its integrated design [52] Question: Activity in the China market - Management reported a buoyant market in China, with significant backlog from both foreign joint ventures and local e-vehicle companies [57][58]