Innoviz Technologies .(INVZ) - 2024 Q1 - Earnings Call Transcript

Financial Data and Key Metrics - Q1 2024 revenue was $7.1 million, an 18% increase above the guidance range and a significant jump from$ 1 million in Q1 2023 [46] - Cash and cash equivalents at the end of Q1 2024 stood at approximately $128 million [45] - Operating expenses for Q1 2024 were$ 31.7 million, a 5% decrease from $33.3 million in Q1 2023 [72] - R&D expenses for Q1 2024 were$ 23.8 million, down from $26.1 million in Q1 2023 [47] - Cash burn in Q1 2024 was$ 23 million, compared to $29 million in Q1 2023 [71] Business Line Data and Key Metrics - The majority of Q1 2024 revenue came from NRE (Non-Recurring Engineering), with significant contributions from InnovizOne components for BMW samples [5] - InnovizTwo platform is nearing design-free stage for automotive-grade applications, supported by successful winter testing [41] - The company is focusing on InnovizTwo platform for all RFI and RFP pipeline activities, moving away from InnovizOne [85] Market Data and Key Metrics - The company is actively working on 10 to 15 programs in the pipeline, with about 50% in the RFQ stage [59] - Significant progress has been made in Level 4 opportunities, particularly with two leading Level 4 platform companies in the tracking and ride-hailing spaces [68] - The company expects to see a meaningful percentage of vehicles equipped with LiDAR by 2030, with an estimated 10 million LiDAR scanners sold globally in the automotive market by that year [89] Company Strategy and Industry Competition - The company is leveraging contract manufacturing to save CapEx and accelerate time-to-market [17] - Innoviz is the only pure-play LiDAR company to reach SOP (Start of Production) with Level 3, with vehicles already on the road using its LiDAR and perception software [26] - The company is optimistic about its ability to capitalize on future opportunities for LiDAR, especially with new regulatory requirements like NHTSA's automatic emergency braking system [69] Management Commentary on Operating Environment and Future Outlook - Management highlighted the successful winter testing of InnovizTwo, which demonstrated resilience in harsh conditions, potentially giving the company a competitive edge [90] - The company expects full-year 2024 revenues to be more back-half weighted, with continued lumpiness due to the typical cadence of NREs [110] - Management is confident in meeting the targets of winning two to three additional programs and$ 20 million to $17 million of new NRE bookings in 2024 [70] Other Important Information - The company is hosting the EcoMotion Assembly at its headquarters on June 4th, 2024, a prestigious conference in the mobility ecosystem [74] - Innoviz is collaborating with NVIDIA and working on several NVIDIA-based RFQs, which could present additional growth opportunities [24] Q&A Session Summary Question: Breakdown of revenue between NRE and production for Q1 2024 and outlook for Q2 2024 - A significant part of Q1 2024 revenue was NRE, with three elements: InnovizOne components for BMW, growing sample shipments, and NREs, which are expected to lead revenue for the year [5] - Q2 2024 revenue is expected to be in the range of$ 4 million to $5 million, compared to$ 1.5 million in Q2 2023 [44] Question: Interest from OEMs after successful winter testing - The successful winter testing of InnovizTwo generated significant interest from OEMs, particularly due to its performance in extreme conditions [10] Question: CapEx expectations for 2024 - CapEx for 2024 is expected to be stable, similar to 2023, as the company is relatively CapEx-light and uses contract manufacturers [16][18] Question: Gross margins, OpEx, and CapEx outlook for 2024 - Gross margins are expected to improve with additional NREs, which positively affect margins [14] - OpEx is expected to remain stable or decrease slightly due to the realignment program [83] - CapEx is expected to be similar to 2023 levels [16][18] Question: Timeline for OEM agreements - The BMW i7 has launched in Germany, with user experience feedback expected soon [84] - The VW ID Buzz program is planned to launch in 2026 [22] - The company is working on additional Level 3 programs with VW and other OEMs, with timelines still under discussion [95]