Innoviz Technologies .(INVZ) - 2022 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Revenues for Q2 2022 were $1.8 million, compared to $1 million in Q2 2021, indicating a significant increase [29] - Operating expenses in Q2 2022 were $28.8 million, a decrease from $170.7 million in Q2 2021, primarily due to a reduction in share-based compensation [30] - Research and development expenses for Q2 2022 were $21.9 million, down from $32.1 million in Q2 2021 [31] - The company maintains a high liquidity level of approximately $246 million in cash and marketable securities as of June 30, 2022 [27][28] Business Line Data and Key Metrics Changes - The Volkswagen Group nomination has increased Innoviz's order book by $4 billion, totaling $6.6 billion [7] - The company expects to supply LiDAR sensors for at least 8 million cars over the lifetime of the Volkswagen program, with a projected revenue ramp-up starting in three to four years [26][45] Market Data and Key Metrics Changes - Innoviz's overall automotive market share increased by 12% to a total of 15% [20] - The company is managing 12 automotive RFIs and RFQs at different stages, with expectations for two to three programs to be decided in the next six months [20][41] Company Strategy and Development Direction - Innoviz aims to become the world's leading tier one supplier for LiDAR and perception software in the automotive industry, focusing on partnerships with major car manufacturers like Volkswagen and BMW [5][10] - The company is investing in technology and perception software while ramping up production capabilities for InnovizTwo [22][23] - Innoviz is also exploring opportunities in non-automotive markets, leveraging the maturity of its products [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the contractor's ability to supply tier 1 and other brands, with positive dynamics in discussions with various brands [39] - The company is optimistic about additional brands being included in the Volkswagen program, which could further enhance revenue potential [40] - Management believes that being recognized as a tier 1 supplier has increased credibility with other OEMs, facilitating discussions for new contracts [50][52] Other Important Information - Innoviz has appointed country managers for the U.S. and Japan to capitalize on growth opportunities following the Volkswagen nomination [12] - The company is hosting events to strengthen collaboration with leading platform vendors, including a workshop with NVIDIA [9][10] Q&A Session Summary Question: Understanding CARIAD and its impact on the order book - Management confirmed confidence in the contract with Volkswagen and stated that integration discussions are ongoing with each brand [39] Question: Likelihood of winning additional programs - Management expressed strong positioning for upcoming programs, emphasizing the competitive advantage from guaranteed volume with Volkswagen [42] Question: Details on revenue ramp-up from the BMW partnership - Revenue is expected from both NRE and sales of cars equipped with LiDARs, with material revenue anticipated towards the end of next year [47] Question: Confidence in securing agreements with prospective customers - Management indicated that Innoviz is on the shortlist for all 12 prospective agreements, with a higher probability of success due to recent wins [48] Question: Impact of tier 1 status on credibility with OEMs - Management noted that tier 1 status has significantly improved credibility and opened doors for additional opportunities with car makers [50][52]