Innoviz Technologies .(INVZ) - 2025 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Innoviz generated $15.3 million in revenues for Q3 2025, with year-to-date revenues reaching $42.4 million, approximately 2.3 times higher than the same period in 2024 [4][22] - Cash burn for the quarter was $14 million, expected to decline sequentially in line with guidance for lower year-over-year burn [5][22] - Gross margins for Q3 were approximately 15%, with year-to-date margins at about 26% [23] Business Line Data and Key Metrics Changes - The company reported significant progress in shipping LiDAR units, with a notable increase in shipments compared to Q2 [5] - The InnovizSmart platform is gaining traction in non-automotive applications, indicating a broadening of use cases [15] Market Data and Key Metrics Changes - The number of relevant automotive LiDAR players is declining, suggesting a consolidation in the market [6][7] - Innoviz is gaining traction across multiple end markets, reflecting the strength and versatility of its technology [7] Company Strategy and Development Direction - Innoviz aims to be the world's premier large-scale supplier of best-in-class LiDAR solutions for autonomous driving and beyond [7][25] - The company is focused on ramping production capabilities and expanding its presence in both automotive and non-automotive sectors [21][25] - The upcoming InnovizThree is expected to revolutionize the industry with better performance and a smaller form factor [19][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting full-year targets and highlighted the importance of recent agreements with major OEMs for Level 4 autonomous trucks [4][20] - The competitive landscape for automotive LiDAR solutions is becoming increasingly limited, providing Innoviz with more opportunities [30][31] - The company expects to see a twofold increase in revenues year-over-year for 2025, projecting revenues between $50 million and $60 million [20] Other Important Information - Innoviz has achieved key automotive standard certification for LiDAR testing, which enhances value for customers by reducing external testing costs [5] - The company is actively engaging with various sectors, including perimeter security and intelligent transportation systems (ITS) [15][39] Q&A Session Summary Question: Update on L3 development program for consumer vehicles - Management indicated that discussions are ongoing with customers, and several technical and commercial discussions need to be completed before moving to series production [27][28] Question: Changes in the competitive landscape - Management noted that the competitive environment is limited due to geopolitical factors and the inability of some competitors to meet customer needs [30][31] Question: Incremental investments in Sensor Fusion - Management explained that the approach to Sensor Fusion varies between automotive and non-automotive applications, with different software opportunities and business models [35][36] Question: Cost reduction trajectory for next-generation products - Management expects continued cost reductions through technological advancements and industrialization, making LiDAR more accessible [40][41] Question: Insights into L3 and L4 discussions with automakers - Management highlighted a sense of urgency among automakers to differentiate themselves, with expectations for rapid growth in Level 3 and Level 4 applications [46][48] Question: Details on L4 Commercial OEM win - Management stated that further details will be shared in the coming weeks, including the number of LiDARs per vehicle and overall volume opportunities [54][55]