AEYE(LIDR) - 2024 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - In Q4 2024, AEye reported a GAAP net loss of $8.5 million or$0.93 per share, compared to a loss of $8.7 million or$1.01 per share in Q3 2024, indicating a slight improvement [26] - Non-GAAP net loss was $6.3 million or$0.69 per share in Q4 2024, compared to a loss of $6 million or$0.70 per share in the previous quarter [27] - Cash, cash equivalents, and marketable securities at the end of Q4 2024 totaled $22.3 million, with total potential liquidity around$80 million including capital raised post-quarter [20][28] Business Line Data and Key Metrics Changes - The Apollo LiDAR sensor has undergone significant improvements, demonstrating high-resolution long-range detection capabilities at 1 kilometer, and has been positively received in various market sectors [9][10] - The manufacturing line for Apollo is ramping up with a Tier 1 partner, with the first units expected in Q1 2025 [12] Market Data and Key Metrics Changes - AEye is seeing increased interest in Apollo across multiple sectors, including security, rail, and intelligent transportation systems, indicating a broadening market appeal beyond automotive [16][23] - The partnership with NVIDIA is facilitating access to new OEMs, enhancing AEye's market position [14][23] Company Strategy and Development Direction - AEye's strategy focuses on leveraging its capital-light model and partnerships to extend its cash runway and support high-volume production of Apollo [11][18] - The company aims to position Apollo for mass production and is actively engaging with global OEMs for rigorous testing [13][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting OEM demands, emphasizing that LiDAR technology is essential for future automotive success [18] - The company anticipates cash burn for 2025 to be $25 million, slightly up from 2024, primarily due to increased investments for Apollo's ramp-up [28] Other Important Information - AEye has the lowest cash burn rate in the industry, which provides resilience amid challenging market conditions [18] - The company has successfully raised approximately$18 million since the beginning of Q4 2024, extending its financial runway to mid-2026 [21] Q&A Session Summary Question: Could you speak about non-automotive opportunities? - Management highlighted Apollo's capabilities in security applications, noting significant interest and ongoing testing in China, the U.S., and Europe [34][37] Question: Does greater liquidity give you more confidence in meeting OEM financial due diligence requirements? - Management confirmed that liquidity is crucial for OEMs to feel comfortable with AEye's ability to reach high-volume production [40][42] Question: Can you frame what high volume means? - Management defined high volume as starting in the tens of thousands of units, with potential to ramp above 100,000 units annually [46][49] Question: What is the current market appetite for LiDAR in vehicles? - Management indicated that several OEMs are committed to Level 3 programs, which include LiDAR, and that there is a strong push for eyes-off, hands-free driving [58][61] Question: What is the expected cash spend in R&D? - Management estimated that R&D constitutes roughly half of the overall operating expenses, with a focus on Apollo support and customer integration [73][76] Question: Is AEye more geographically fluid in pursuing opportunities? - Management affirmed that AEye's partnerships allow for a global presence, enabling operations across multiple regions including the U.S., China, and Europe [81][84]