Q4 2022 Innoviz Technologies Ltd Earnings Call
Irrigation to publicly update or revise them for a discussion of some important risk factors that could cause actual results to differ materially from any forward looking statements. Please see the risk factors section of our 20-F filed with the SEC on March 32022, I will now turn the call over to Omer. Please go ahead.
Thank you, Rob and good morning, everyone and thank you for joining us I'm excited to provide another update on the progress we've been making at <unk>.
And in fact, moving quarter with our steady milestone three production new additions to our pipeline expanding our order book with existing customers.
Something I'm, particularly excited about is our special guest Steven Sean.
The former chief engineer of Adas systems.
Who has recently joined us as a senior strategic advisor to the company.
And Thats just on the automotive side.
On the automotive side, we hit the Bolton Plaza.
<unk> of the <unk>.
At CES in January and the addition of nonautomotive distributors since our distributor summit last November .
With that said, let's start things off with a quick update on our milestones plenty of 'twenty. Three SLP is continues to be a key focus of our company right now it is something we've been working towards for over five years.
And we are excited to be so close to achieving it.
Both of our 2023 launches the BMW program in the charter program on track and we are making solid progress both the volume and revenue, which should coming in the back half of the year you can even see in I suppose to hear one of our best vehicles doing some final winter testing getting ready for the launch.
And while we are discussing our existing customers I wanted to let you know that we are currently under discussion and expand our existing commercial agreement with both bucking the design <unk> on additional platforms beyond the one that we have already been communicated.
Our initial production win with Volkswagen was awarded in 2022, and whilst meaningful platform with multiple brands and multiple models within the pause button group.
The expense extension that is currently being discussed with me. In addition to the earlier will potentially bring our innovation to lighter it's one to two new Adas and autonomy platform with multiple business models that were not initially designed to include a lighter overall.
Overall, we are on track for a mid decade launch expanding our order book with one of our largest customers will validate the key components for our long term therapy.
We believe that once you are on the shelf with an OEM it becomes easier and easier for them to select deal for additional programs.
Is that are becoming more widely utilized and adopted across their entire vehicle.
This therefore has the potential to set the stage for years, if not a decade or more of growth with its new OEM OEM women.
This is why we feel the world through the lens of OEM share, we believe that winning our first platform reduces the friction and makes it much easier to win additional business.
As those of you are close to the automotive industry know Oems like Volkswagen has many platforms for us to potentially.
And we have that opportunity for growth ahead of US we announced earlier this week, we're expanding our Munich office and growing our footprint in Germany. We're doing this because we believe there is a long pathway for additional growth for us in Germany, and Europe beyond the customers we already have.
Boeing versus those that are interested in learning more about our relationship with Volkswagen group.
Want to highlight a very important industry events coming up soon ecomotion as one of our most the most important platforms.
Mobility space and the much anticipated Ecomotion week conference will be held until it really been made.
As part of that event I invite the dealer cast executive Vice President of Adas and autonomous driving is Audi.
You can buy our headquarters for the visit and joining me for a fireside chat and Ecomotion conference is that conversation, we will talk about our partnership with given this deep listener a better anticipation for where our engineering and joint effort is going.
Moving to our RFID RFP pipeline, we have some exciting new growth in our pipeline during the quarter, including the addition of course I can describe as a multi million unit RFID from our brands, you'll be very excited and potentially surprise about that.
All I can say about the customer at this point.
We are obviously excited for the submission and the entire team will be working hard on this over the next year.
One of the trends pointing.
Pointing out is the fact that the other fine art you order sizes, even for small and midsized commercial appears to be trending higher overtime with RFID is increasingly coming in at the millions of units level instead of tens or hundreds of thousands of units. We believe this reflects that install rates moving higher and higher.
Some Oems increasing increasingly exploring lighter as standard equipment, especially on higher end vehicles.
Second trend. We're seeing is that there is also a little bit of uptick with some Oems exploring 204 programs utilizing multiple lighter vehicle as opposed to a single floor spacing lighter delivered to plasma levels of the folks at <unk>.
Feel very early for both of these brands, but I believe that these developments in our pipeline given a decent looking to where the industry's most and this is going to.
Looking at our pipeline in total we are disclosing it in the 10 to 15 program range. Since we described it as 11 on the last call and just mentioned a few additions you can expand it I'll, let by hiring a few programs down.
He is currently a dire handle that fringe most of these programs are delivered to level three.
Light vehicle programs, though there are a few that are level. There are also several that are commercial truck programs.
Also our robust exit programs as well, but the majority of programs are for light vehicle automotive, especially when looking at things from the volume perspective the.
The majority of the programs are also with new customers in fact, only two of the programs our expansion with existing customers on the left hand side of the graph. So the majority of these RFID.
<unk> entirely new foods, both with new customers for us to grow our long term penetration.
Who help without the opportunity into context, we are providing additional information to size. The scope of the pipeline. We took the customer information on a request on requested volumes and our expectations for anticipated Asp's and added a layer of conservatism on top of those numbers. If you sum the total of proposal is overtime.
<unk> Lidar units.
In fact, the higher and has the potential to be well north of that.
And we anticipate that the value of the pipeline is multiple times larger than the current forward booking holdings.
Another important factor now is now that we became a tier one.
We have the opportunity to quote more meaningful.
And many of you have heard US talk about this a lot of those mainly in Europe to the end of the story <unk> or nonrecurring engineering.
It is cash that we received before production begins for engineering design and other services that we provide.
Sometimes it gets recognized as revenue and sometimes it is recognized as a contra item to cost, but either way, it's a cash payment that can be meaningfully finance our business.
So most evolved where it typically designing roughly three to four years before the diesel launches.
During that period as projects get funded primarily through <unk>.
These services are mostly performed by our existing staff. This means that they have the potential to offset our existing cost meaningfully offering a very high flow through from a profit and cash perspective, when they come on earlier before the start of production. So MLD is convenient Bolton bump part of funding the company.
Production volume infection. That's why Q1 is such an important part of it.
The whole strategy.
So the majority of the programs in our pipeline, we're thinking potentially meaningful analyst sounds across the current pipeline. The total in a range that were currently negotiating for is in the.
$150 million to $250 million range over the next three to four years.
If we can achieve this if you will get an important part of our financial protectively and a long term path towards breakeven.
More about our near term projections for.
When we get to our outlook.
But to summarize as you can see from this slide there is a lot of deal activity going on right now, particularly in the automotive space. We continue to believe that the majority of volume market share is going to be likely be awarded this year.
And our goal is to exit clinic, when it's free as a clear leader in the automotive side.
Given our deep focus is on our on the automotive industry and the unique opportunity that we have some customers the market leading position Lidar I'm excited to share that we've added the preeminent industry executive with a senior strategic adviser Stephen.
Given sample recently retired from his role as the chief engineer of Adas systems export.
At acquisition the sale Thats, both a sporting done on a subject matter expert everything Adas related he was responsible for evaluating many early stage technologies and he built a company system architecture and overall product strategy.
Including features like both blue crews, hence free driving system, which has reached millions of customers importantly, Steven in adjustment engineer with 30 years of automotive experience and 60 assets under spill, but he has a tremendous stability. So also things strategically a drill down on the business case centered around profitability.
We are excited to be able to bring his experience expertise and deep industry relationships.
I'll hand, it over to Stephen for a quick introduction and some thoughts on the lottery industry from an Oem's perspective I assume.
Thank you Omer and to the whole <unk> team I'm really excited to be working with the <unk> clear early market leader in an industry that has significant exponential growth ahead of it.
Omar asked me to say a couple of words on the importance of Lidar in level three systems from an Oem's perspective, and talk about the things we've done together since I began working in my advisory role.
Autonomous driving is an incredibly complex problems to solve.
Our eyes and brains are much more sophisticated than any camera and compute system available for cars. The world is driving infrastructure has been designed with these capabilities in mind.
It hasnt been designed for computers and robots to succeed.
People trying to design autonomous systems want as many sensing capabilities as possible to deal with the tricky edge and corner cases. These are expensive endeavors that autonomous teams are engaged in and time is of the assets. It doesn't makes sense to over constrain your team and jeopardize the ultimate success of your system by limiting the amount of sensory input.
Of course, they have to consider the overall system costs, but most people I've talked to and read about are focused on using cameras radar and lidar to attack the problem.
I had been working within the business for three months now.
Just returned from my first onsite visit in Israel <unk>.
Our mission is to help evolve individuals strategy and to accelerate their path towards being the best tier one direct supplier in the Lidar space.
I already had a positive view of individuals technology and expertise before I started working with the company.
Otherwise I wouldn't be here, but my recent trip to their facilities in Israel expanded and confirm those impressions.
In the last 15 years I've met many suppliers working on amazing technologies. Some mature some cutting edge success depends on good technology strong leadership, a highly skilled team and the right mindset in.
<unk> has all of those the team is top notch with amazing potential I've had the opportunity to get a much closer look behind the curtain and I feel strongly that the company is at the head of the pack from a design and technology perspective.
The design is robust the manufacturing process is well considered and the strategies. They have in place will take them far.
So thank you for the opportunity to work with you and the team Omer and for giving me a chance to speak with you investors as well I look forward to working together.
I'll hand, it back to you.
Thank you Steven having someone who can bring the mindset of an OEM more directly into the company would be a valuable asset for EOG going.
Going forward.
Okay.
Now moving from the automotive side.
Products Thats aimed more at the non on the multiple.
I am very proud of the war with our innovation team has done over the past years and the VW specifically from an idea.
Too early at it.
We first announced the intention to develop these industry <unk> at the 2022 consumer electronics choke setting an ambitious goal of launching the following year end.
It's hard to explain how ambitious of the goal of this was gone from a concept to a worked example.
Such exceptional performance in such a complex design in only one year.
Honestly the final months before the show involved a lot of late night, making final tweaks ahead of its unveiling.
But theres always need to be put to use work and case group to meet the deadline.
The product is largely on the nonautomotive side of the industry with very strong use cases across commercial trucks heavy machinery shuttles rail market is logistics and maritime industry.
We've heard directly from customers in the industry that there is a major opportunity for disruption here for new solutions with automotive grade specs that the most of sales price points. We are still in the product's early stage, but we believe that there is a facility that the kind of meaningful disruptor in the 360 space and on the price side with 360 design Leverages.
Many hardware advances.
Including the senior laser into the texstar underneath.
And we will benefit from the economics economics of scale as the products will share many of the same components, particularly the highest cost components. This means that the energy story.
A multi volumes in the coming years. The 360, we would be very rapidly become both a performance and price either you did almost the multiples.
And while we're on the nonautomotive space I wanted to give a quick recap of the distributor summit that we hosted in November and previewed on our third quarter earnings call.
This was our first ever full day long summit.
On industrial and then also most of the distribution channels.
That was a big success with nine distributors joining us at our headquarters in Israel coming from across Asia, Europe , and North America, we educated them on our technology arm them with our marketing tools and introduce them to our older rig and logistic platforms.
We prepared a short video to highlight.
[music] Nino means.
The number one license.
[music], you're shaping the future of <unk>.
Luiz.
I'm going to go to the room it sounds operating machine parts.
Hartzell.
System.
So next time I would like to find another location for.
Different uses.
Immuno with Dave.
A lot of energy.
Okay.
Unbelievable skill.
It's been exciting to know more details inflammation.
<unk> been a couple of months.
Keith.
And there is definitely going to be our primary wider some sort of choice for we have to be ready with the best technology that will allow us to win.
We will have very sustainable business for the next thinking millions of flight of owners.
Yes.
As you can see from the video leveraging distributors built important part of our go to market strategy, It's a lower cost way to amplify the efforts of our sales that expanding our reach in nonautomotive quickly and without meaningful increases for our head count.
And fixed costs.
The event was also a catalyst for additional meetings at CES and one on one interruptions with traditional distributors up towards these engagements are the first step in building out our distribution channels.
And as we said as we said before 2023 will be an important year for our growth within the automotive market.
And we are making progress in building the partnerships and the overall foundation for success in the coming years.
Now before moving to our 2023 subjects I wanted to walk through a recap of our original 2022, gross and remind you where things shook out for the year.
And the bulk of those on the slide you can see where we had finished the year versus the original goals that we've set for ourselves.
In terms of the preproduction programs were carrying into the year positive turn and we finished the year with.
In terms of automotive design wins, we came into the year targeting one and we finished the year with two including Volkswagen in the Asia focused OEM, we announced in September .
And in terms of the fall order book, we originally targeted 30% increase and we grew that number away with 165% increase.
Thanks in large part to our <unk> with like that offer a good reminder of how much larger some multiyear contracts can move the needle for a company our size looks.
Looking at this slide you can see that we see.
Ambitious targets and we over delivered on what we said.
With that said, let's take a look at our 2023 calls.
Our top goal for the year is to bring in at least two new series production awards with all new customers as we said earlier in the call as we hope to prove by expanding our relationships with both of them we.
We believe.
Winning a new OEM gives us a foothold for a relationship that we can expand with the customer for years to come.
Lots of level, three and eventually even level four becomes increasingly.
We are also targeting at least one to two additional program awards from existing customers.
And secure additional platforms. We believe we can offer further evidence that the value is key.
Our long term investors.
For the full year 2023, we are targeting $12 million to $15 million of revenue more than doubled plenty plenty toothpaste. In addition to that and related to this pause.
$20 million to $40 million of new bookings in 2023 internally and how we are running the business with our primary focus on winning additional progress and securing a substantial and a risk in order to help drive revenue growth going forward, we see tremendous opportunity for growth in both of the new envelope.
As we noted when we reviewed the view of the pipeline. We believe there is a total of roughly 100.
And I'll leave of course, the 10 to 15 programs that are already in the pipeline with most of those deals offering NRT in the $10 million to $15 million range each.
<unk> are important indicators of our performance because each deal to take across the finish line will offer meaningful growth our top.
Top line from the 2023 base could rapidly accelerated way, which we compiled our top line once the new programs and the production base.
So if you want to enter it could also play a major enrolling funding our business. Many of these services within the analyst will be performed by our existing generic headcount the revenues.
Obviously goes to offset existing Scott offering a very high flow through.
Materially extend our cash cash runway and lastly every deal that we win the deals is no longer available competitively when we look at our pipeline. We can see that the bulk of early all year shown in the light of space is going to be decided in 2023 with nearly every major global OEM likely to have given an award by 2020 full make no.
This is a land grab and we've given that.
Given that these contracts cannot for eight to 10 years like our <unk> and DSW contracts. We believe this is an opportunity to lock up earlier for most of the lateral market share not only for years to come but possibly for the next decade or more.
And this is why we are so deeply focused on winning new deals and securing additional <unk>.
One more point I'll make before moving on is at the end of original typically only available to large announced fulfill once this is the huge this was a huge part of our logic to shift from a tier two a few awards not only does this.
More give us more direct control in the bidding process. It's also giving us the opportunity to secure more meaningful production revenues, which can be an important part of our medium term financial objectives.
With that I'll turn it over to adult go over the financials.
Thank you Omar and good morning, everyone.
Before going too deep into the financials.
First wanted to take a moment to give an update on our unit sales from the fourth quarter.
As if you remember our third quarter revenues was impacted by the move of our company headquarters and their associated downtime of our calibration and testing line at the time of our third quarter call, we communicated that volumes very recovering nicely into Q4.
Happy to announce that units sold were up an impressive 170 <unk>.
<unk>, four <unk> and 164%.
Versus the fourth quarter of last year and when looked at on the full year basis units were just shy of double the coming growth of 19, 9%. These numbers highlight the impressive progress we have made over the last year on the manufacturing side.
As we ramp up our capabilities ahead of our <unk> launch later this year.
Moving to the <unk> financials, starting with cash we ended 2022 with approximately $186 $2 million in cash short term deposits short term restricted cash and marketable securities on the balance sheet are largely mature cost structure and our.
Our operating cash outlays remains mostly favorable during the quarter and were in line with our 2022 budget.
Moving to the income statement revenues in 2022 came in at $6 million compared to 2021 revenues of $5 $5 million, representing a growth of 10, 2% year over year. The difference between the unit volume growth of 99% and revenue.
Growth of over 10% come from the non repeat of 2021 machinery and other revenue coupled with the natural decline in Asp's.
People from Central unit pricing through production level dry spring for our largest customers.
This phenomenon.
Likely to continue into 2023, as we move towards full production with the BMW program and our sharp drawdown on the BMW program, specifically, we would transition from 74 lead us sample units to seven components to Magna.
Rethink turn manufactured the components into lifetimes for BMW. So help put this into context in very broad strokes a sample units can often said in the.
5000 to 10000 dollar range, whereas production level volumes components are so below 1000.
Naturally this lowered this lower asps should be offset by higher unit volumes, which should begin in the back half of 2023 as volumes ramp that said.
<unk> revenue should occur in the first quarter of 2000 each.
Each consecutive quarter thereafter, looking stronger as those volumes come on with the bigger inflection expected in the back half of the year.
There are a lot of moving parts here, it's important to look at the overall picture even with the headwinds from <unk>, we expect the step up in volume growth to be meaningful net positive with revenues more than doubling through the threads to $15 billion range for the year.
Moving further down the.
The income statement on the cost side operating expenses for 2020 to $124 $6 million a decrease from $152 $6 million in 2021 2020 through operating expenses include the 19 3 million shares.
Based compensation compared to $64 7 million bonus in 2021.
Year over year decrease in operating expenses was primarily due to lower levels of share based compensation, partially offset by an increase in head count DWP to development costs.
Appreciate the amortization costs and facility costs research and development expenses for 2020.
Two were $95 $1 million, an increase from $93 $3 million in 2021.
Year include a $12 million attributable to share based compensation compared to $25 5 million.
In 2021 in conclusion, we grew our revenues delivered a record number of units to our clients improved our manufacturing throughput and made meaningful progress on the March.
The March towards <unk>, BMW and shut up programs launching later this year. We believe there is a strong momentum in the automotive space, we can leverage on and which mature products at times, we can generate additional revenue non local market segment.
I'll return the call back to Walmart, Thank you very much.
Thank you I.
I have just one housekeeping item before we transition over to Q&A as we've indicated in the past we've had some customer pushback on the communicated changes to our forward looking order book in real time as deals are announced that this can be a source of competitive advantages. So going forward things basically three we're going to transition to communicate in the total new.
All other amounts, including NME awards annually on our year end call I, just wanted to flag that change and in fact as you've already heard to date 2020, it's really designed to be a big year for interface with multiple milestones that I assume is extended both the year ahead, and we have our heads down focusing on our ESOP launch and converting.
Many customers or the pipeline into the order book.
With that I'll turn the call over to the operator to take us into the Q&A.
Thank you.
Order to ask your questions. Please raise your hand, using your mobile or desktop application.
Once again, please raise your hand, using your mobile or desktop application and weak earnings VNS.
Our first question today comes from Mark Delaney with Goldman Sachs. Please go ahead.
Yes. Thank you for the update and I. Appreciate you taking my questions I was hoping to start first with the MRE commentary you spoke about a target of $20 million to $40 million of NRT bookings in 2023, if the company were to achieve that is that bookings something that would be recognized.
Aged over several years are mostly in 2023 and should we think of that mostly it's coming in as revenue or contract costs could you can you said it could vary.
Sure I'll start.
That does continue.
Continue generally ever program, which when we're quoting we're not unimportant for the fixed price or the tooling costs. We also included a big volatile and arena, which is bond activity.
This is traditionally bank.
Across the program from the denomination timed to the S&P, but we expect it to be.
In the course of the OIBDA, which is roughly three to four years.
Weighted to the recognition of that.
Yes.
The recognition goes based on the milestones that we need.
So if we potentially win a program this year within <unk> and there is a certain milestones that we have converged. This year. It means we were able to recognize.
This part of the <unk> and this will be if it will be recognized as revenues. It will be on top of the target that we mentioned that maybe the fact I just want to add.
Now talking about them.
Realize it's we won't know.
Which is quite meaningful to our business having that we are now with Q1 reporting one programs. The NRA has become very meaningful and as you can imagine $20 million to $40 million on it.
Of those I would say the targets of those 10 to 15.
Actually on a recurrent you order a year could be a very meaningful.
Based on our funding.
That's helpful and maybe to round that discussion out in trying to think through gross margin and 23, you talked about shifting from selling some samples to providing components, perhaps or something and our he's coming in that are contract Cogs.
So when you think about some of those factors what are some of the implications for gross margin I realize you're not giving specific gross margin guidance, but do you think you can cross into positive gross margins at some point in 'twenty, three and perhaps maybe be positive even on gross margin for the full year.
I think we should see improvements in gross margins I don't want to give guidance on.
Whether or not we become positive, but we do expect better gross margins and the over the overall year outlook.
Okay and then one last one for me on the last call you spoke about one to three OEM decision.
Taking place over the next six months, maybe you can just update us on how those have been progressing have any of them been decided I think they've got a business doing thanks.
We are still pending for several decisions certainly difficult.
To really give an accurate estimate of when things happen Im trying to refrain from doing that.
We are working towards.
Several decisions and we hope that and we feel positive about them.
This will strengthen our order books.
Great.
Thank you.
Thank you Mark Thank you Mark.
Our next question today comes from the line of Jared <unk> from Baird. Please go ahead.
Hey, good morning, guys. Thanks for the update <unk> and Steven you're going to be too happy to hear you're taking the expertise from from Ford and going to help out the guys at spirit.
I guess just two questions from me kind of high level stuff first one is on China. So.
Theres, obviously been a.
Your Chinese competitors in the news recently won for IPO appropriate expansion and then the other one for production work with a subsidiary of a global OEM.
So I guess, maybe for Omar just wondering if your view has kind of changed on the threat of Chinese competitors at this point.
Especially in the mass market segment.
So we're in the right way to frame. This question out there have you seen.
These guys more often in procurement with the Aaas and purchasing teams of global Oems.
Is there anything you think introduced can viewers already planning to do to better your eyes in the EMEA market or take the fight to China beyond the recent production award with the Asian based Oems.
Great.
Question, so actually when talking about non Chinese Oems, we currently do not see the.
China based latter companies completing my.
My assumption is based on the fact that the requirements that we're seeing are much higher.
Our solutions offer.
That.
And I assume this is a big power supply, we do not see them competing on that.
On the other hand.
We just had a visit of our China.
Kim from China, visiting a notice for the first time after three and a half years.
Good opportunities to catch up and I would say.
Staff.
Our position our strategy in China.
We still were installed with many of the difficulties we had in the fat.
These bonds when competing on different programs, you've got very good feedback from customers is absolutely right.
Impressed by the product, but the fraud.
On the competitive landscape in China.
We decided to be too expensive.
We think the second part was the fact that all our production line is.
He is not in China.
Those were the two topics.
In a way.
Maybe it's a bit more difficult slot win business in China.
Now the field is still significantly cheaper.
So significantly better and also we are targeting a production line in China.
This too that opens up that opportunity all over again, so we are.
Revisiting our typically in China.
Do we.
We are hoping for a great success there.
Got it great. Thanks, and then second one actually got to open this up nicely with the requirements commentary, but just just.
I guess theres been some talk recently on kind of a use case of level three books.
Looking guys on some of your competitors in Lidar as well.
And then kind of on the use case.
Traffic jams versus a full level III highway autonomy shifts and.
And whether or not each is useful marine right.
That said one of your competitors recently said.
Publicly and largely unopposed that your technology won't be able to deliver level III Highway pardon me at 130 kilometers per hour.
So I'm just wondering can you can you kind of talk about the programs that you have with BMW Volkswagen ma'am.
Andrew based OEM and whats being targeted by the Oems and the platform partners, you're working with them on those contracts.
Definitely yes.
I would say.
No.
Technology is currently providing really the istent.
Let's say requirements in many ways, we are seeing today ill advised.
They are complex from arms efficacy and we are happy to set the barrier for the rest of the market.
I can go very long and I'm happy to.
Actually it is.
It has a session workshop, where I introduced level three requirements and explained very well.
Now 80 miles an hour or 130 kilometers.
Our.
Possible through disciplined sales and specification of the lighter which is one to one with their requirements.
Two is providing.
And actually if you go one by one you will see that all of our parameters.
Has that been exceeding it.
There are other companies that have mentioned that is absolutely far below deck and unsurprised by their comments and I'm happy that they've raised.
And a question.
When we are working with the car companies.
Our target is to reach 100 kilometers an hour.
Thinking very clearly the requirements they have folded when rates were.
We're operating we're operating at 20 frames per second as I understand they operate at 10.
Our framework is a very important element in the reaction time.
And I would say that this is a very huge advantage that the <unk> is able to provide other than that the very uniformly dilution of 0.05 digital solutions across the field of view.
With a very wide verticals.
Which is near the four different driving scenarios.
Something that is capable of.
Their solution is not so.
So I definitely believe that.
Actually the one that is capability, providing those specifications, while the rest of 12 months.
And I am happy to have direct anyone for the White paper I wrote on the mentor I'm happy to to find any challenge for many one on that very good.
Thanks, Amit.
Thank you. Our next question today comes from the line of a draft <unk> from Cantor. Please go ahead.
Hey, Omar.
Good.
Good morning, or good afternoon, I should say congrats on the quarter and thanks for taking our questions.
I just wanted to maybe.
Get a little more clarity on the revenue guidance for 2023, right, so I see that $12 million to $15 million.
So just to maybe understand.
That is predominantly comprised from.
And please correct me if I'm mistaken here predominantly comprised the revenues from the BMW partnership and the shuttle program, both of which will begin ramping up.
Start with production in the second half of this year.
Is that correct.
It's partially correct.
Of course.
The chocolate programming the BMW program.
Have a significant part of our revenues for this year, but we have additional expectation from the market that we are operating as well.
Nonautomotive bought.
Opportunities that we have 70 million.
It will be a mixture.
Okay, but I guess, what I'm wondering is it's probably going to be a little bit more weighted on the second half of the year right. That's correct. That's correct. Okay. Thank you that's helpful and then.
Maybe just a quick follow up is just remind us again, where things stand with your capital needs right. So total liquidity is about $186 million.
What is the expectation that gets you through is that through.
S&P or is that into 2024.
Talked about that.
Of course, it will allow us to get to S&P and even beyond that I would also say that our expectation. This year is to win additional programs that will actually allow us to subsidize our activity in a meaningful manner.
If you add.
Two launches this year the sales of the nonautomotive that will grow also over next year, and then I'll use that theyre going to collect from the different car companies.
We believe that will help us into funding activities.
Although important.
Got it and maybe if I could squeeze just one last one.
You mentioned <unk>.
You are in conversations with.
Wagging to potentially explore.
Additional opportunities.
That relationship so I guess, if I ask bluntly what does that mean right is that is that for other vehicles is that or.
Other.
Another one of your products, maybe just help me understand what would that mean exactly.
Sure.
We were nominated for a platform.
We collaborate with.
With Volkswagen in Korea will this platform is going to sell different brands in different vehicles. This design includes the single Lidar.
And different other essentials in the computing platform et cetera.
Two other platforms.
Possibly would include more than one lidar.
And possibly.
Six.
Vessels.
<unk> platform.
It's a different platform.
We're.
Decided recently to include also the lighter to reach the level three level two plus level three.
Having following that decision there are.
Our discussions between them and us about the way that.
Possibly supporting followed multiple integration platform and other.
All of them to launch with the later.
We were very excited and happy to see.
This opportunity is now, allowing us to grow our business. Obviously, if you look at our original order book following the first it does not reflect the entire opportunity a pause button.
<unk> is a very big car company and eventually.
Neil.
Whats behind the growth substantially bigger than the first platform in <unk>.
We also see us growing into plug it in a more meaningful way.
Understood.
Very helpful. Thanks, again, congrats on the quarter I'll pass it on.
Thank you. Our next question comes from the line of Kevin Cassidy from Rosenblatt Securities. Please go ahead.
Yes, thanks for taking my question.
Thank you for having us.
Update.
To expand on the last question.
We're moving to a different platform.
When you're saying there are other sensors.
More light hours or youre moving into other types of sensors.
Im not a different slightly I'm, just saying eventually this platform is designed.
To serve it.
A different platform that we were awarded.
Which.
Which is.
Actually launching.
Without the Lidar initially and now there was a decision to incur.
Lidar generally.
I'm not aware of that.
Central to today there is no other.
It's a different platform that we need to integrate into.
That's definitely.
Okay, great. Thanks.
It looks like 23, it's going to be a critical year as you're pointing out.
Pam there 15 more.
Thank you.
Good morning.
Yeah.
Maybe youre looking at.
Some of your competitors will probably fall off the pace.
What is your view.
As.
You're clearly got some major wins that will survive.
Would you be interested in acquiring these other companies.
Fall off the pace for their technology or even maybe their customer base.
Not necessarily.
I mean, obviously.
We believe that.
Technology is currently within the market and we are very well.
We believe there is a long basketball, if we're doing and as you can see we continue to develop new technologies such as <unk>.
If there will be a technology that we will find this interesting we might look at it.
Right now we are very much bidding.
Let's say content growth.
Well.
We say that technology that we're building ourselves.
Okay understood. Thank you.
Thank you.
That concludes the question and answer session for today I'd like to ask for closing remarks.
As Kevin said it.
It's a very exciting year for us every year.
We are excited too.
We will come along and we know that we tend to also.
Always start the year and we find out more opportunities that becoming that's exciting and I'd say all of those.
Of course, it will deal with it we're not even aware of.
And I am very pleased.
We're in the business today and.
And that's very good confidence that we'll continue to grow and succeed. Thank you for joining our earnings call. Thank you.