Financial Data and Key Metrics Changes - Revenue for 2024 reached nearly $5.4 billion, with average unit volume exceeding $8 million for the first time in history, reflecting strong performance across all brands [6][7] - The company reported a 23.5% revenue growth for Q4 2024, driven by a 6.6% increase in comparable average unit volume and 13.7% store week growth [22] - Diluted earnings per share increased by 60.1% to $1.73, with restaurant margin dollars increasing by 37.3% to $243 million [22][23] Business Line Data and Key Metrics Changes - Same-store sales increased by 8.5% for the year, with traffic growth of 4.4% [15] - Weekly sales averaged $159,000 at Texas Roadhouse, $119,000 at Bubba's 33, and $71,000 at Jaggers, indicating strong performance across all brands [16] - Restaurant margin as a percentage of total sales increased by 172 basis points to 17% [26] Market Data and Key Metrics Changes - Comparable sales for Q4 increased by 7.7%, driven by 4.9% traffic growth and a 2.8% increase in average check [24] - The company experienced a 2.9% increase in comparable sales for the first seven weeks of Q1 2025, despite weather impacts [24][43] Company Strategy and Development Direction - The company plans to open approximately 30 company-owned restaurants across all brands in 2025, with an additional focus on franchise development [9][10] - A 1.4% menu price increase is expected in Q2 2025 to maintain everyday value, which is a competitive advantage [11] - The company is focused on technology initiatives, including the conversion to a digital kitchen and upgrades to the guest management system [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying fundamentals of the business despite recent performance irregularities due to external factors [39][40] - The company anticipates continued labor inflation of 4% to 5% and commodity inflation of 3% to 4% for 2025 [17][18] - Management remains optimistic about the company's ability to deliver high-level hospitality and maintain strong guest relationships [33][100] Other Important Information - The company celebrated its 20-year anniversary as a public company and opened its 750th systemwide restaurant in 2024 [7] - The company has a strong balance sheet with over $245 million in cash and generated over $750 million in cash flow from operations [16] Q&A Session Summary Question: Can you provide context on the quarter-to-date trend in Q1? - Management noted that restaurants are fully staffed and experienced strong sales during Valentine's week, indicating confidence in underlying business fundamentals despite some irregular performance [39][40] Question: How much visibility do you have on costs this year regarding inflation? - Management indicated that the majority of the inflation increase is driven by beef, with about 40% of the overall basket locked for the full year, providing some clarity on costs [49][50] Question: What are the margin drivers expected this year? - Management expects to see leverage on operating costs due to moderating costs, with labor inflation projected at 4% to 5% [55][57] Question: Can you clarify the components of comparable sales? - Management confirmed that the 7.7% sales growth included 4.9% traffic growth and a 2.8% increase in check, with some negative mix due to alcohol sales [63] Question: How is the company staying top of mind for consumers? - Management highlighted local store marketing efforts, early dine features, and value-driven promotions as key strategies to maintain consumer engagement [75][76] Question: What is the outlook for new unit openings? - Management confirmed a cautious approach to new openings, focusing on quality over quantity, with a target of 30 new restaurants [90][91] Question: What are the expectations for commodity inflation in 2025? - Management expects commodity inflation to remain in the 3% to 4% range, with ongoing supply issues affecting costs [18][135]

Financial Data and Key Metrics Changes - Q4 2024 revenue reached $59.2 million, a year-over-year increase of 127%, exceeding guidance of $52 million to $55 million [7][34] - Adjusted EBITDA for Q4 was $14.1 million, or 23.9% of revenue, a 231% year-over-year increase [8][36] - Full year 2024 revenue was $170.5 million, up 96% from 2023, with adjusted EBITDA of $34.6 million, or 20.3% of revenue, a 250% increase year-over-year [8][36] - Cash position at the end of Q4 was $46.9 million, up from $13.8 million at the end of 2023 [9][39] Business Line Data and Key Metrics Changes - Revenue from the largest big tech customer grew by 8% sequentially from Q3 to Q4 2024, while aggregate revenues from other seven big tech customers grew by 159% [14][93] - Adjusted gross margin for Q4 was 48%, a 4% sequential increase from Q3, driven by strong project margins and cost optimization efforts [35][36] Market Data and Key Metrics Changes - The company anticipates a cumulative $325 billion in capital expenditures from major tech companies in 2025, indicating strong market demand for AI-related services [17][18] - The enterprise market is expected to see rapid adoption of generative AI, driven by hardware optimization and advancements in AI technologies [26][28] Company Strategy and Development Direction - The company is focused on providing data engineering services to big tech companies for developing generative AI models, with a strong emphasis on expanding customer relationships and diversifying revenue streams [12][16] - The strategy includes both services and platforms, with a goal to be a go-to partner for enterprises seeking to implement generative AI technologies [15][16] - The company plans to reinvest a portion of its cash from operations into strategic hires and product development to support long-term growth [29][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 40% or more revenue growth in 2025, supported by strong business momentum and customer demand [12][92] - The macro environment is favorable, with big tech companies increasing their capital commitments to AI, which is expected to benefit the company [94] Other Important Information - The company has not drawn on its $30 million credit facility, indicating a strong liquidity position [39][95] - The effective tax rate for 2024 was approximately negative 17.1% due to the utilization of accumulated net operating losses [38] Q&A Session Summary Question: Future outlook for the seven other big tech customers and pilots - Management indicated that pilots are coming from both additional big tech customers and a large-scale enterprise deal currently in pilot stage [44][45] Question: Duration of the largest customer relationship - Management explained that there is a significant amount of additional data needed for future models, indicating a long-term opportunity for growth [47][50] Question: Opportunities with open vs. closed models - The company sees opportunities in both open-source and closed-source models, focusing on data engineering to help enterprises manage their data [55][56] Question: Potential for gross margin expansion - Management expects to target around 40% adjusted gross margin for new opportunities, with potential for higher margins as new customers are won [70][71] Question: Investment plans and EBITDA growth - The company plans to invest primarily in people and operational excellence while aiming to exceed 2024's adjusted EBITDA [73][76] Question: Need for expanding headcount - Management clarified that expansion is necessary to prepare for future growth and to seize opportunities in the market [80][82] Question: Stress level regarding cash position - Management feels well-positioned with a strong cash balance and undrawn credit facility, forecasting significant free cash flow generation [89][90]

Financial Data and Key Metrics Changes - In Q4 2024, revenue was $45.7 million, down 23% year-over-year and down 2% on a constant-currency basis [31][32] - Adjusted EBITDA was negative $13.7 million for Q4 2024, compared to negative $0.6 million in Q4 2023 [16][40] - Loss before income tax from continuing operations was $17.6 million in Q4 2024, a slight increase from $17.1 million in Q4 2023 [16][44] - Cash burn for the quarter was $30.6 million, compared to $26.8 million in Q4 2023 [17] Business Line Data and Key Metrics Changes - Core marketplace business accelerated in Q4 2024, with physical goods orders growing by 18% year-over-year [10] - Marketplace revenue for Q4 was $22.8 million, down 31% year-over-year [33] - Revenue from first-party sales was $22.5 million in Q4, down 14% but up 8% on a constant-currency basis [34] Market Data and Key Metrics Changes - GMV declined 12% in USD but grew 13% year-over-year in constant currency [14] - Average order value for physical goods orders decreased from $45.5 in Q4 2023 to $35.5 in Q4 2024 [15] Company Strategy and Development Direction - The company is focusing on upcountry expansion and product assortment expansion to drive growth [20][22] - Jumia aims to improve operational efficiency and achieve profitability by enhancing logistics and customer experience [25][28] - The company plans to leverage international sourcing to expand product offerings at affordable prices [23] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macro headwinds affecting performance but expressed confidence in the company's growth trajectory [14][19] - For 2025, the company anticipates physical goods orders to grow between 15% and 20% year-over-year [51] - GMV is projected to be between $795 million and $830 million in 2025, reflecting a year-over-year increase of 10% to 15% [52] Other Important Information - The company streamlined operations by exiting non-strategic markets, consolidating warehouse footprints, and improving logistics capabilities [9][10] - The Net Promoter Score rose to 63 in Q4 2024, indicating improved customer satisfaction [13] Q&A Session Summary Question: Can you provide more color on trends observed in Q1? - Management noted continued progress on order growth and usage, leading to confidence in the guidance of 15% to 20% growth year-over-year [55] Question: What is preventing the company from increasing selection? - Management indicated that the challenge is more on the supply side than demand, focusing on increasing supply and improving vendor experience [58][60] Question: Can you elaborate on the mix between first-party and third-party sales? - Management acknowledged a decline in corporate sales affecting first-party sales and stated that they are pragmatic about the mix, using first-party sales when it provides better value [62][64] Question: What is behind the physical order growth? - Management attributed physical order growth to better assortment, customer experience, and efficient marketing tactics [67] Question: What efficiencies have been gained from consolidating the warehouse footprint? - Management explained that consolidating warehouses has improved efficiency, control, and fulfillment costs, with expectations for greater savings in 2025 [75][76] Question: What is the current fixed cost base as 2025 begins? - Management indicated that while costs have been reduced, there is potential for another 20% efficiency improvement, allowing for processing of 2x to 3x current volumes [80] Question: How does the balance sheet look in terms of inventory strategy? - Management confirmed that increased working capital was aligned with their strategy to enhance supply and vendor relationships, with expectations for moderation in future adjustments [88][90]

Financial Data and Key Metrics Changes - MP Materials produced 45,455 metric tons of REO in 2024, a 9% increase from 2023 [7] - The average price of NdPr was approximately $55 per kilogram in 2024, down from $75 per kilogram in 2023 [21] - Consolidated revenue for Q4 increased 48% year-over-year to $61 million, driven by the ramp in sales of separated rare earth products [31] - Adjusted EBITDA loss for the Materials segment was $14.1 million, impacted by a $21.5 million write-down of inventory [28] Business Line Data and Key Metrics Changes - The Materials segment consists of upstream and midstream businesses, with 100% of revenues generated from this segment in 2024 [18][20] - NdPr oxide production reached 1,294 metric tons in 2024, significantly higher than 200 tons in 2023 [9] - The Magnetics division achieved milestones including the production of NdPr metal and trial production of automotive-grade magnets [12][14] Market Data and Key Metrics Changes - The market price for NdPr is currently around $60 per kilogram, showing slight recovery from the previous year's low [21] - Global demand for NdFeB magnets is expected to triple by 2040, driven by electrification and physical AI [63] Company Strategy and Development Direction - The company is focused on scaling its fully-integrated rare earth supply chain and advancing its Magnetics business [67] - MP Materials aims to achieve gross margin profitability in midstream operations in the near term [10] - The company is investing in high-return growth projects, including Upstream 60K and heavy rare earth separations [39][43] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to profitability in the Materials segment despite current pricing challenges [41] - The company is optimistic about production growth in 2025, with expectations of improved cost structures as throughput increases [112] - The geopolitical landscape is seen as favorable for MP Materials, with increasing interest in securing supply from Western sources [130] Other Important Information - The company has signed new agreements with the Department of Defense and a top five global automaker for NdPr [11] - MP Materials has successfully managed its balance sheet, pushing out debt maturities to 2030 and buying back shares [15] Q&A Session Summary Question: NdPr volume ramping throughout 2025 - Management indicated a focus on balancing cost and efficiency, with significant volume growth expected in 2025 [71] Question: Impact of China's mining regulations on commodity pricing - Management noted that the regulatory environment in China could lead to supply discipline and potentially higher pricing [74][76] Question: Areas for improvement at Mountain Pass - Management highlighted the need for improvements in mechanical reliability and solids handling [85] Question: Exploration plans for Mountain Pass - The company plans to conduct exploratory drilling to fill gaps in resource definition [90] Question: Exposure to external sourcing and tariffs - Management stated that there is minimal exposure to imported materials, mitigating tariff impacts [95] Question: Risk of IRA grant payments - Management expressed confidence that grants for critical minerals production would remain secure [98] Question: Production and cost progression in midstream - Management expects to achieve gross margin profitability in midstream operations soon, with no change in timing [124] Question: Capability to support additional OEM agreements - Management confirmed ongoing discussions with various OEMs, including those in robotics and eVTOL sectors [130]

Financial Data and Key Metrics Changes - Global revenue increased by 14% to nearly $1.2 billion for the quarter [24] - Global service revenue grew by nearly $130 million or 15% due to increased volume and higher revenue per unit [24] - GAAP net income increased by 19% to over $387 million or $0.40 per diluted common share [30] Business Line Data and Key Metrics Changes - Global unit sales increased by 8% with U.S. insurance unit volume up about 9% year-over-year [19][20] - Non-insurance unit volume growth outpaced insurance volume growth, excluding catastrophic units [20] - Blue Car services for bank, rent, and fleet customers grew over 27% year-over-year [21] - Dealer sales volume was flat year-over-year, with MPA increasing over 14% and CDS declining about 5% [21] Market Data and Key Metrics Changes - International business unit sales grew over 8% in the quarter [22] - International fee units increased by 11% while purchase units decreased by 6% [23] - Global average selling prices (ASPs) increased by approximately 2% for the quarter [23] Company Strategy and Development Direction - The company continues to invest in technology, real estate, and personnel to fuel future growth [7] - Expansion into new service offerings such as Title Express is a key focus [4] - The company is experiencing a flywheel effect from growing auction liquidity and returns for sellers [5] Management's Comments on Operating Environment and Future Outlook - Management noted that total loss frequency in the U.S. hit an all-time high of 23.8% for the fourth quarter [8] - The company is optimistic about the growth of its insurance volume and auction liquidity [5] - Management addressed potential impacts of tariffs, suggesting a neutral to modestly positive effect on the business [16] Other Important Information - The company recognized $27 million in incremental costs associated with hurricanes Helene and Milton [27] - Global gross profit was approximately $526 million, with a gross margin percentage of 45% for the quarter [29] Q&A Session Summary Question: What are the biggest points of friction in the total loss process for insurance customers? - Management identified critical points of friction starting from the moment of the accident, including initial towing without insurance knowledge and the need for faster total loss assessments [36][39] Question: Where is the company in its salesforce build-out for light damaged, non-salvage cars? - Management indicated that the company is in the early stages of expanding its salesforce to grow market share in this segment [44][48] Question: How does a strong USD impact the business? - Management explained that a strong U.S. dollar can make U.S. assets more expensive for foreign buyers, potentially suppressing selling prices at auctions [52][54] Question: Can you elaborate on the Title Express platform's impact? - Management noted that the Title Express platform reduces cycle times for vehicles, generating higher returns and better utilizing storage capacity [57] Question: What are the geographic expansion plans for Purple Wave? - Management described a two-pronged approach focusing on densifying the sales force in existing territories and identifying high-transaction markets for expansion [65][66] Question: What are the drivers of the sequential downtick in G&A spend? - Management advised that G&A costs should be assessed over multiple quarters, as they manage costs thoughtfully to support long-term growth [96]

Financial Data and Key Metrics Changes - The company achieved an adjusted funds from operations (AFFO) of $1.43 per share for 2024, representing a 1.4% increase compared to 2023 [6][9] - The total investments for the year amounted to $404.8 million, with a weighted average initial cash cap rate of 7.3% and a weighted average straight-line yield of 8.1% [26][35] - The pro forma leverage was maintained at 4.9% with over $900 million available on the revolving credit facility [36][20] Business Line Data and Key Metrics Changes - The clinical and surgical assets were reduced to 3.2% of annualized base rent (ABR) from 9.7% at the end of 2023, following the completion of the clinical health care portfolio simplification strategy [10][9] - The company executed 7 lease rollovers, achieving a 112% weighted average recapture rate [29] Market Data and Key Metrics Changes - The investment activity was weighted approximately 70% to industrial properties and 30% to retail [26] - The company expects to see a mix of regular way deals and build-to-suit investments contributing to earnings in 2025 [42][44] Company Strategy and Development Direction - The company is focusing on a differentiated strategy as an industrial-focused diversified net lease REIT, driven by four core building blocks: solid portfolio performance, revenue-generating CapEx, a pipeline of committed build-to-suit projects, and regular acquisitions [12][13] - The goal for 2025 is to add at least $500 million in additional build-to-suit developments, with a strong pipeline of new investments [18][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the portfolio's resilience despite incremental credit risks due to the higher interest rate environment [30][31] - The company anticipates a 3% growth in AFFO per share for 2025, with guidance set at $1.45 to $1.49 per share [18][37] Other Important Information - The company maintained its dividend at $0.29 per share, which remains well covered [37] - The board of directors will see changes with the departure of two members and the addition of two new members, enhancing the board's expertise [8][9] Q&A Session Summary Question: Clarification on investment guidance - The $400 million to $600 million investment guidance includes both regular way deals and build-to-suit investments [41][42] Question: Credit side and bad debt expectations - The guidance includes 125 basis points for bad debt, which is an increase from the previous year's expectations [51][53] Question: Funding for developments - The company plans to fund developments primarily through the revolving credit facility and disposition proceeds [55][56] Question: Zips Car Wash bankruptcy implications - The company is actively negotiating terms and expects to maintain a favorable position despite the bankruptcy [70][72] Question: Changes in competitive landscape for build-to-suit developments - The company is experiencing increased interest from prospective tenants, with solid returns on longer lease terms [81][82]

Financial Data and Key Metrics Changes - In Q4 2024, revenue was $423 million, and adjusted EBITDA was $141 million, representing a 10% year-over-year increase in revenue on an organic constant currency basis, driven by a 5% increase in total enrollment volume [21][22] - For the full year 2024, revenue was $1.567 billion, with adjusted EBITDA of $450 million, resulting in an adjusted EBITDA margin of 28.7%, a historic high for the company [23][24] - Full year net income was $296 million, leading to earnings per share of $1.92 [24] Business Line Data and Key Metrics Changes - In Mexico, new enrollments increased by 4% for the year, with revenue growth of 10% driven by an 8% increase in average total enrollments [29] - In Peru, new enrollments increased by 6% for the year, with revenue growth of 4% driven by a 2% increase in average total enrollments [32] Market Data and Key Metrics Changes - The company remains the largest higher education provider in Mexico and Peru, with strong demand for quality higher education driven by rising participation rates and strong wage premiums for graduates [9][14] - Peru's GDP growth for 2025 is expected to reach approximately 3%, indicating a recovery from the recent recession [16] Company Strategy and Development Direction - The company plans to open four new campuses for its value brands, with two expected to launch in 2025, marking the first new campus launches since 2019 [13] - The focus remains on enhancing academic offerings and expanding digital education capabilities [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the economic environment in Mexico, despite geopolitical uncertainties, and expects GDP growth of about 1% for 2025 [15][53] - The company anticipates flat to slightly down reported revenues for 2025, but expects growth in adjusted EBITDA and unlevered free cash flow due to local currency revenue growth and margin expansion efforts [19][41] Other Important Information - The company returned over $100 million to shareholders in 2024 and has returned nearly $3 billion since 2019 through share repurchases and cash distributions [8][33] - The company introduced new non-GAAP metrics for adjusted net income and adjusted earnings per share to provide a clearer picture of underlying profitability [25][26] Q&A Session Summary Question: Impact of tariffs and economic environment in Mexico - Management acknowledged that while tariffs do not directly impact the business, a slowdown in foreign direct investment and CapEx spending has affected GDP growth, which in turn impacts enrollments [48][49] Question: Current capital allocation policy - The company aims for a 50% free cash flow conversion on EBITDA, with plans to return 50% of available free cash flow to shareholders after supporting growth [55][56] Question: Tax rate and Peru intake - The effective tax rate is expected to be below 40%, and management is optimistic about the Peru intake due to improving market conditions and GDP growth expectations [62][64]

Financial Data and Key Metrics Changes - In Q4 2024, total GAAP revenue was $686 million, exceeding guidance, with non-GAAP gross profit margin at 20.6%, down 50 basis points sequentially [28][29] - Non-GAAP operating profit was $39 million, with a non-GAAP operating margin of 5.7%, an increase of 94 basis points sequentially [29] - Cash flow from operations was $54 million, and free cash flow was $34 million in Q4 2024, ending the year with $144 million in cash on hand [30][31] Business Line Data and Key Metrics Changes - Private Cloud GAAP revenue for Q4 was $269 million, up 4% sequentially, driven by strong performance in healthcare [31][33] - Public Cloud GAAP revenue was $417 million, surpassing guidance, with bookings growing 22% year-over-year [18][33] - Private Cloud bookings grew 4% year-over-year, while public cloud bookings grew 22% year-over-year, indicating strong demand across both segments [8][18] Market Data and Key Metrics Changes - In the Americas, private cloud sales bookings grew more than 20%, with healthcare bookings increasing over 60% [41] - Public cloud bookings in Q4 grew in high double digits year-over-year, driven by robust performance in services and infrastructure resale [18][19] - The company signed 16 new master service agreements, enhancing growth opportunities in the public cloud segment [20] Company Strategy and Development Direction - The company is focusing on a services-led sales motion rather than low-margin infrastructure resale, which has led to improved sales execution [19][22] - A strategic focus on hybrid cloud solutions and AI is expected to drive future growth, with plans to launch new products and solutions targeting these areas [25][26] - The company aims to improve its capital structure to support sustainable profitable growth over the long term [26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the improving demand environment and visibility for 2025, with expectations for positive operating cash flow and free cash flow [44][50] - The company anticipates modest declines in private cloud revenues in 2025, with expectations for flattish revenues in the second half of the year [16][42] - Management highlighted the importance of larger deals and multi-year contracts in building a sustainable revenue base [55] Other Important Information - The company launched several innovative solutions in 2024, including Edge Security and AWS accelerated migration analysis offerings [21][22] - AI-related projects significantly contributed to data services bookings, with expectations for AI revenue to grow from less than 2% to over 5% in the coming years [78][83] Q&A Session Summary Question: Trends within the private business and expectations for 2025 - Management noted strong sales bookings performance and increased interest in custom cloud solutions, with expectations for modest declines in private cloud revenues in 2025 [41][42] Question: Changes in the demand environment over the last 30 days - Management indicated improved visibility and strong momentum in both public and private cloud businesses, with expectations for continued growth in 2025 [50][54] Question: New logo growth in Q4 and deal cycles - Management reported over 250 new logos in private cloud, with longer deal cycles for larger private cloud deals and shorter cycles for public cloud services [65][67] Question: Headcount utilization and need for increases - Management stated that while there may be a need for increased headcount in professional services and data, it would be done surgically and with increased utilization of current resources [70][77] Question: Contribution of AI to booking strength - AI contributed to data services bookings, with expectations for AI revenue to grow significantly in the coming years as enterprise adoption increases [78][83]

Financial Data and Key Metrics Changes - In 2024, MercadoLibre achieved $21 billion in revenue and generated over $1 billion in free cash flow, demonstrating the ability to drive profitable growth while investing in long-term strategic objectives [13] - The company reported a 74% year-on-year increase in its credit portfolio, indicating strong growth in this segment [34] Business Line Data and Key Metrics Changes - The marketplace surpassed 100 million unique buyers and the fintech platform reached over 60 million monthly active users for the first time, reflecting significant user growth [9] - In Argentina, items sold grew by 18% in Q4, a recovery from a tough first half of the year, and the fintech credit book quadrupled year-on-year [39] Market Data and Key Metrics Changes - MercadoLibre's key top-line metrics, including GMV and acquiring TPV, outpaced the market in Brazil, Mexico, and Argentina, driving significant market share gains [8] - The company noted a 29% year-on-year increase in items shipped, contributing to improved logistics efficiency [18] Company Strategy and Development Direction - The long-term growth strategy is based on low e-commerce penetration in the region, the opportunity to offer better financial products, and the digitalization of cash [13] - Investments in logistics infrastructure and credit card offerings are central to the company's ambition of becoming the largest digital bank in Latin America [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future opportunities, particularly in Argentina, where economic recovery signals are strong [40] - The company remains cautious about credit issuance in Brazil due to rising interest rates but is comfortable with the current risk levels [30][32] Other Important Information - The company invested approximately $900 million in CapEx and $3 billion in its fintech business during 2024 [119] - The introduction of the MELI dollar, a stablecoin, and new investment options in Brazil, Mexico, Argentina, and Chile are part of the fintech expansion strategy [24] Q&A Session Summary Question: Credit portfolio risk appetite amid rising interest rates in Brazil - Management noted no signs of deterioration in the credit portfolio, with the lowest first payment default recorded in December [30] - Measures have been taken to reduce risk, including tightening payback periods and reducing micro card issuance [31][32] Question: Tailwinds and headwinds for margins in Argentina - Management is optimistic about Argentina's economic growth, with a strong recovery in item sales and a quadrupled credit book [39][40] - Long-term margin improvement is expected as the company continues to grow and capture market share [42] Question: Progress on opening new warehouses - The company opened two new warehouses in Q4 to support peak season demand and plans to continue expanding capacity [50] Question: Competition in low ASP items - Sales of low ticket items are growing at par or faster than the average, supported by improved user experience and features [51] Question: Measures to reduce credit risk in Brazil - Management is tightening payback periods and limiting card issuance to riskier segments to manage credit risk [57] Question: Trends in NIMAL and profitability of credit card book - NIMAL decreased year-on-year due to a higher share of credit cards, but profitability is improving as older cohorts mature [59][60] Question: Expectations for credit card investments and wallet funding - The company is being more restrictive in issuing cards to riskier segments while expanding limits for existing customers [66][69] Question: Impact of reducing micro cards on GMV growth - Management does not expect significant impact on GMV growth from reducing micro card issuance [72] Question: Advertising growth and future targets - The company is focused on building relationships with brands and expanding advertising inventory, with expectations for long-term growth [81][84] Question: Utilization levels of new fulfillment centers - The logistics network performed well in Q4, with productivity improvements aligning with demand [89] Question: Modeling provisions for future growth - Historical portfolios are performing better, but sequential growth in new portfolios may pressure provisions [92][94] Question: Drivers of e-commerce acceleration and user behavior - User behavior is changing positively, with growth in essentials and improved value propositions driving increased frequency of purchases [100]

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]