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MicroVision(MVIS) - 2023 Q4 - Earnings Call Transcript
MVISMicroVision(MVIS)2024-02-29 01:17
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Financial Data and Key Metrics Changes - Revenue for Q4 2023 was reported at 5.1million,leadingtoafull−yearrevenueof5.1 million, leading to a full-year revenue of 7.3 million, which was within the revised guidance range of 6.5millionto6.5 million to 8 million [67][68] - The company achieved a 90% adjusted gross margin in Q4 2023 and an 80% gross margin on an adjusted basis for FY 2023, significantly differentiating itself from peers with negative or near-zero margins [39][70] - Liquidity as of December 31, 2023, was 93million,consistingof93 million, consisting of 74 million in cash and cash equivalents and 19millioninATMavailability,providingafinancialrunwayofapproximately1.4years[11][94]BusinessLineDataandKeyMetricsChanges−Thecompanyisfocusingonhigh−volumenominationprojectsratherthanlow−volumeengineeringservices,aimingforprojectsthatinvolvemillionsofunitstoachieveprofitability[2][24]−TheMOVIA−Sproductishighlightedasakeyopportunity,witheachvehiclepotentiallyrequiringthreetofivesensorsforadvanceddrivingfeatures[53][59]MarketDataandKeyMetricsChanges−ThedemandforLiDARsensorsisexpectedtogrowsignificantly,particularlyforADASlevel2+andlevel3features,asOEMsareincreasinglyrecognizingtheneedforthesetechnologies[3][33]−ThecompanyisengagedinnineRFQswithmultipleOEMsinEuropeandNorthAmerica,primarilyfocusedonpassengercarprograms[22][64]CompanyStrategyandDevelopmentDirection−ThecompanyaimstoestablishitselfasaTier1LiDARsupplierbyfocusingonhigh−growthopportunitiesandmaintainingfinancialdiscipline,avoidingrisksassociatedwithlow−marginprojects[24][36]−Thestrategyincludesleveragingexistingtechnologyandpartnershipstosecurelong−termsupplyagreementswithOEMs,particularlyintheautomotivesector[56][58]ManagementCommentsonOperatingEnvironmentandFutureOutlook−Managementnotedthatthetransitionfrominternalcombustionengines(ICE)toelectricvehicles(EV)iscreatingpressureonOEMs,leadingtoacautiousapproachinnewprojects[62][63]−Thecompanyisoptimisticaboutsecuringnominationsin2024,withexpectationsforsignificantrevenuegrowthdrivenbyhigh−volumecontracts[98][110]OtherImportantInformation−TheMicrosoftcontract,whichcontributed19 million in ATM availability, providing a financial runway of approximately 1.4 years [11][94] Business Line Data and Key Metrics Changes - The company is focusing on high-volume nomination projects rather than low-volume engineering services, aiming for projects that involve millions of units to achieve profitability [2][24] - The MOVIA-S product is highlighted as a key opportunity, with each vehicle potentially requiring three to five sensors for advanced driving features [53][59] Market Data and Key Metrics Changes - The demand for LiDAR sensors is expected to grow significantly, particularly for ADAS level 2+ and level 3 features, as OEMs are increasingly recognizing the need for these technologies [3][33] - The company is engaged in nine RFQs with multiple OEMs in Europe and North America, primarily focused on passenger car programs [22][64] Company Strategy and Development Direction - The company aims to establish itself as a Tier 1 LiDAR supplier by focusing on high-growth opportunities and maintaining financial discipline, avoiding risks associated with low-margin projects [24][36] - The strategy includes leveraging existing technology and partnerships to secure long-term supply agreements with OEMs, particularly in the automotive sector [56][58] Management Comments on Operating Environment and Future Outlook - Management noted that the transition from internal combustion engines (ICE) to electric vehicles (EV) is creating pressure on OEMs, leading to a cautious approach in new projects [62][63] - The company is optimistic about securing nominations in 2024, with expectations for significant revenue growth driven by high-volume contracts [98][110] Other Important Information - The Microsoft contract, which contributed 4.6 million in revenue, expired at the end of December 2023, with no visibility into future revenue from this source [38][131] - The company is not pursuing augmented reality (AR) projects due to a lack of control over end products, focusing instead on its LiDAR technology [91][128] Q&A Session Summary Question: What type of OEMs is the company targeting for announcements? - The focus is on OEMs based in Europe and North America, with an emphasis on high-volume projects [45][99] Question: What is the status of the Microsoft agreement? - The Microsoft contract expired at the end of December 2023, and there is currently no visibility into future revenue from Microsoft [131] Question: What is the expected gross margin trajectory for 2024? - The company expects gross margins to be in the range of 30% to 40% for 2024, as revenue scales up and the mix changes [102][103]