Q2 2024 AEye Inc Earnings Call
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Speaker Change: © 2016 University of Georgia College of Agricultural and Environmental Sciences UGA Extension Department of Agriculture
Operator: Good afternoon, and thank you for joining AEI's second quarter 2024 earnings call. With me today are Matt Fisch, Chief Executive Officer, and Conor Tierney, Chief Financial Officer.
Unknown Executive: Good afternoon, and thank you for joining AI's second quarter 2024 earnings call.
Speaker Change: Good afternoon and thank you for joining AEI's second quarter 2024 earnings call. With me today are Matt Fisch, Chief Executive Officer, and Conor Tierney, Chief Financial Officer.
Unknown Executive: With me today are Matt Fisch, Chief Executive Officer, and Conor Tierney, Chief Financial Officer.
Unknown Executive: Earlier today, AI announced its financial results for the second quarter 2024. A copy of this press release can be found on the company's website at investors.ai.
Operator: Earlier today, AI announced its financial results for the second quarter of 2024. A copy of this press release can be found on the company's website at investors.ai.ai. Before we begin, I would like to remind participants that today's discussion may include forward-looking statements as defined in the securities laws and regulations of the United States with reference to future events, future operating results, or financial performance. Such forward-looking statements are based on current expectations and assumptions regarding AI's business, the industry, and other conditions.
Speaker Change: Earlier today, AI announced its financial results for the second quarter 2024. A copy of this press release can be found on the company's website at investors.ai.ai.
Unknown Executive: Before we begin, I would like to remind participants that today's discussion may include forward-looking statements as defined in the securities laws and regulations of the United States, with reference to future events, future operating results, or financial performance. Forward-looking statements are based on current expectations and assumptions regarding AI's business, the industry, and other conditions. These forward-looking statements are subject to inherent risks, uncertainties, and changes in circumstances that are difficult or impossible to predict. Actual results may differ materially from those contemplated by these forward-looking statements. We caution you, therefore, against placing undue reliance on any of these forward-looking statements.
Operator: These forward-looking statements are subject to inherent risks, uncertainties, and changes in circumstances that are difficult or impossible to predict. As a result, actual results may differ materially from those contemplated by these forward-looking statements. We caution you, therefore, against placing undue reliance on any of these forward-looking statements. You can find more information about the risks, uncertainties, and other factors in reports filed from time to time with the Securities and Exchange Commission, including in the most recent periodic report.
Speaker Change: Before we begin, I would like to remind participants that today's discussion may include forward-looking statements as defined in the securities laws and regulations of the United States with reference to future events, future operating results, or financial performance.
Speaker Change: Forward-looking statements are based on current expectations and assumptions regarding AI's business, the industry, and other conditions. These forward-looking statements are subject to inherent risks, uncertainties, and changes in circumstances that are difficult or impossible to predict.
Speaker Change: Actual results may differ materially from those contemplated by these forward-looking statements. We caution you, therefore, against placing undue reliance on any of these forward-looking statements.
Unknown Executive: You can find more information about the risks, uncertainties, and other factors in reports filed from time to time with the Securities and Exchange Commission, including in the most recent periodic report.
Speaker Change: You can find more information about the risks, uncertainties, and other factors in reports filed from time to time with the Securities and Exchange Commission, including in the most recent periodic report.
Operator: All information discussed today is as of August 5, 2024, and AI does not intend to update any forward-looking statements, regardless of new information, future developments, or otherwise, except as may be required by law. In addition, today's discussion will include references to certain non-GAAP financial measures. These non-GAAP measures are presented for supplemental information purposes only and should not be considered as a substitute for financial information presented in accordance with GAAP. A reconciliation of the measures to the most directly comparable GAAP measures is available in the press release, and you should refer to these reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures in the press release. With that said, let me pass the call over to Matt.
Unknown Executive: All information discussed today is as of August 5, 2024, and AI does not intend to update any forward-looking statements regardless of new information, future developments, or otherwise, except as may be required by law.
Speaker Change: All information discussed today is as of August 5, 2024.
Speaker Change: does not intend to update any forward-looking statements regardless of new information, future developments, or otherwise, except as may be required by law.
Unknown Executive: In addition, today's discussion will include references to certain non-GAAP financial measures. These non-GAAP measures are presented for supplemental information purposes only, and should not be considered as a substitute for financial information presented in accordance with GAAP. A reconciliation of the measures to the most directly comparable GAAP measures is available in the press release, and you should refer to these reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures in the press release.
Speaker Change: In addition, today's discussion will include references to certain non-GAAP financial measures.
Speaker Change: These non-GAAP measures are presented for supplemental information purposes only and should not be considered as a substitute for financial information presented in accordance with GAAP.
Speaker Change: A reconciliation of the measures to the most directly comparable GAAP measures is available in the press release and you should refer to these reconciliations of non- GAAP financial measures to the most directly comparable GAAP measures in the press release.
Matthew Fisch: With that, let me pass the call over to Matt. Thanks, Betsy, and thank you all for joining us today on our second quarter 2024 Ernie's call. During the second quarter, we saw a significant momentum with our new product launch, OEM, and partner engagements, and bolstering of the company's cash runway. Our progress in meeting our internal and external KPIs was outstanding in the quarter. Since Q1, OEM and partner feedback on our newest product, Apollo, has been overwhelmingly positive and continues to drive a significant increase in interest from the market. We have not only met but exceeded our performance and maturity targets for Apollo.
Matt Fisch: Thanks, Betsy, and thank you all for joining us today on our second quarter 2024 earnings call. During the second quarter, we saw significant momentum with our new product launch. OEM and partner engagement, and bolstering of the company's cash flow. Our progress in meeting our internal and external KPIs was outstanding in the quarter. Since Q1, OEM and partner feedback on our newest product, Hollow, has been overwhelmingly positive and continues to drive a significant increase in interest from the market.
Speaker Change: With that, let me pass the call over to Matt.
Matt Fisch: Thanks Betsy and thank you all for joining us today on our second quarter 2024 earnings call.
Matt Fisch: During the second quarter, we saw significant momentum with our new product launch, OEM and partner engagements, and bolstering of the company's cash runway.
Matt Fisch: Our progress in meeting our internal and external KPIs was outstanding in the quarter.
Matt Fisch: Since Q1, OEM and partner feedback on our newest product, Apollo, has been overwhelmingly positive and continues to drive a significant increase in interest from the market.
Matt Fisch: We have not only met, but exceeded our performance and maturity targets for Apollo. We view the uptick in activity as another sign of the demand for better value and greater performance from LiDAR technologies in general, but specifically in 1550 nanometer technology, as OEMs and partners seek an ultra-long range, high-speed LiDAR solution in a small form factor. Let me go into more detail.
Matt Fisch: We have not only met, but exceeded our performance and maturity targets for Apollo.
Matthew Fisch: We view the uptick and activity as another sign of the demand for better value and greater performance from lighter technologies in general, but specifically in 1550 nanometer technology, as OEMs and partners seek an ultra-long range high-speed light-hour solution in a small factor. Let me go into more detail. Regarding OEM discussions, we are actively engaged with multiple OEMs and initiated early engagements with several more in Q2. These discussions are primarily driven by the interest in Apollo. We believe the recent NITSA ruling is also positively impacting OEM discussions. As you recall, NITSA has mandated automatic emergency braking, or AEB, as a requirement in all passenger cars, SUVs, and light trucks by 2029.
Matt Fisch: We view the uptick in activity as another sign of the demand for better value and greater performance from LiDAR technologies in general.
Matt Fisch: but specifically in 1550 nanometer technology as OEMs and partners seek an ultra-long range high-speed LiDAR solution in a small form factor. Let me go into more detail.
Matt Fisch: Regarding OEM discussions, we are actively engaged with multiple OEMs and initiated early engagements with several more in Q2. These discussions are primarily driven by the interest in Apollo. We believe the recent NHTSA ruling is also positively impacting our OEM discussions. As you recall, NHTSA has mandated automatic emergency braking, or AEB, as a requirement in all passenger cars, SUVs, and light trucks by 2029.
Matt Fisch: Regarding OEM discussions, we are actively engaged with multiple OEMs and initiated early engagements with several more in Q2. These discussions are primarily driven by the interest in Apollo.
Matt Fisch: We believe the recent NHTSA ruling is also positively impacting our OEM discussions.
Matt Fisch: As you recall, NHTSA has mandated Automatic Emergency Braking, or AEB, as a requirement in all passenger cars, SUVs, and light trucks by 2029.
Matthew Fisch: The new regulatory standard sets a high bar. We are seeing OEMs that make performance at over 200 meters a crucial requirement to even be eligible to quote. We believe this favorably positions Aeye and makes a strong case for our 1550 nanometer light art technology. We have demonstrated examples of Aeye's light art sensor performing at a distance of 1 kilometer, which we believe is the longest distance in the industry. We expect 1550 technology will be critical to delivering the required safety performance to meet the NITSA requirements, including their toughest standard of a Ford collision warning at 90 miles per hour.
Matt Fisch: The new regulatory standard sets a high bar. We are seeing OEMs that make performance at over 200 meters a crucial requirement to even be eligible to quote. We believe this favorably positions AI and makes a strong case for 1550 nanometer LiDAR technology. We have demonstrated examples of AI's LiDAR sensor performing at a distance of one kilometer, which we believe is the longest distance in the industry. We expect 1550 technology will be critical to delivering the required safety performance to meet the NHTSA requirements, including their toughest standard of a forward collision warning at 90 miles per hour.
Matt Fisch: The new regulatory standard sets a high bar. We are seeing OEMs that make performance at over 200 meters a crucial requirement to even be eligible to quote.
Speaker Change: We believe this favorably positions AI and makes a strong case for 1550 nanometer LiDAR technology.
Speaker Change: We have demonstrated examples of AI's LiDAR sensor performing at a distance of one kilometer, which we believe is the longest distance in the industry.
Speaker Change: We expect 1550 technology will be critical to delivering the required safety performance to meet the NHTSA requirements.
Speaker Change: including their toughest standard of a forward collision warning at 90 miles per hour. Importantly, Apollo achieves this without requiring OEMs to sacrifice design due to its industry-leading compact size.
Matt Fisch: Importantly, Apollo achieves this without requiring OEMs to sacrifice design due to its industry-leading compactness. With respect to our Tier 1 partner, LightOn, we are seeing tangible results from their ability to leverage their supply chain coupled with their expertise in optics. We have successfully completed the technology transfer to them and are now jointly executing a significant product cost reduction initiative that we believe will bring incredibly competitive pricing to the market. Leidon's global footprint also provides a distinct advantage in engaging with OEMs that are facing geographical supply chain restrictions while navigating geopolitical uncertainty.
Matthew Fisch: Importantly, Apollo achieves this without requiring OEMs to sacrifice design due to its industry-leading compact size. With respect to our Tier 1 partner light on, we are seeing tangible results from their ability to leverage their supply chain coupled with their expertise and optics. We have successfully completed the technology transfer to them and are now jointly executing a significant product cost reduction initiative that we believe will bring incredibly competitive pricing to the market. Light On's global footprint also provides a distinctive advantage in engaging with OEMs that are facing geographical supply chain restrictions while navigating geopolitical uncertainties. Similarly, we continue to make excellent progress with NVIDIA and believe we are on track for future integration with their Hyperion platform.
Speaker Change: With respect to our Tier 1 partner, LightOn, we are seeing tangible results from their ability to leverage their supply chain, coupled with their expertise in optics.
Speaker Change: We have successfully completed the technology transfer to them and are now jointly executing a significant product cost reduction initiative that we believe will bring incredibly competitive pricing to the market.
Speaker Change: Lighton's global footprint also provides a distinct advantage in engaging with OEMs that are facing geographical supply chain restrictions while navigating geopolitical uncertainties.
Matt Fisch: Similarly, we continue to make excellent progress with NVIDIA and believe we are on track for future integration with our Hyperion Plus. We are pleased with the significant interest we see in China, with multiple OEM engagements following our Apollo launch in Suzhou in June. Our collaboration with ATI and Light Tecton at the recent LiDAR conference in Suzhou was a great success.
Speaker Change: Similarly, we continue to make excellent progress with NVIDIA and believe we are on track for future integration with our Hyperion platform.
Matthew Fisch: We are pleased with the significant interest we see in China with multiple OEM engagements following our Apollo launch in Suzhou in June. Our collaboration with ETI in like Tekton at the recent Light Our Conference in Suzhou was a great success. ETI also provided fantastic support for the Apollo launch and facilitated valuable OEM matchmaking opportunities. Overall, the market has responded favorably to our progress and new partnerships this quarter, which allowed us to raise capital at relatively favorable terms and extended our cash runway into the second half of 2025. Our team has done an excellent job of managing our expense targets, and we remain on track with the burn rates we committed to.
Speaker Change: We are pleased with the significant interest we see in China, with multiple OEM engagements following our Apollo launch in Suzhou in June .
Speaker Change: Our collaboration with ATI and Light Tecton at the recent LiDAR conference in Suzhou was a great success.
Matt Fisch: ATI also provided fantastic support for the Apollo launch and facilitated valuable OEM matchmaking opportunities. Overall, the market has responded favorably to our progress and new partnerships this quarter, which allowed us to raise capital at relatively favorable terms and extended our cash runway into the second half of 2025. Our team has done an excellent job of managing our expense targets, and we remain on track with the burn rates we committed. While the U.S. and EU markets continue to progress at a measured pace, the Chinese market is leading globally in LiDAR adoption to the extent that we consider China to be a leading indicator of the future of LiDAR technology. These trends underscore the global shift towards advanced vehicle safety and the growing importance of LiDAR technology in achieving these goals.
Speaker Change: ATI also provided fantastic support for the Apollo launch and facilitated valuable OEM matchmaking opportunities.
Speaker Change: Overall, the market has responded favorably to our progress and new partnerships this quarter, which allowed us to raise capital at relatively favorable terms and extended our cash runway into the second half of 2025.
Speaker Change: Our team has done an excellent job of managing our expense targets and we remain on track with the burn rates we committed to.
Matthew Fisch: While the US and EU markets continue to progress at a measure. Pace. The Chinese market is leading globally in lighter adoption to the extent that we consider China to be a leading indicator of the future of lighter technology. These trends underscore the global shift towards advanced vehicle safety systems and the growing importance of lighter technology in achieving these goals. Lastly, our capital light model allows us to concentrate on key fundamentals, advancing our technology, attracting strategic partners, and driving company value with modest capital requirements compared to our peers. Success in the automotive industry hinges on a stable and reliable supply chain.
Speaker Change: While the U.S. and EU markets continue to progress at a measured pace,
Speaker Change: The Chinese market is leading globally in LiDAR adoption to the extent that we consider China to be a leading indicator of the future of LiDAR technology.
Speaker Change: These trends underscore the global shift towards advanced vehicle safety systems and the growing importance of LiDAR technology in achieving these goals.
Matt Fisch: Lastly, our capital-light model allows us to concentrate on key fundamentals, advancing our technology, attracting strategic partners, and driving company value with modest capital requirements compared to our peers. Success in the automotive industry hinges on a stable and reliable supply chain. Our approach with Apollo exemplifies that, as it leverages a high degree of reuse within the existing supply chain. Additionally, our software-defined strategy has enabled rapid advancements in the product's capabilities, including going from concept to working samples of Apollo in only six months.
Speaker Change: Lastly, our capital light model allows us to concentrate on key fundamentals.
Speaker Change: advancing our technology, attracting strategic partners, and driving company value with modest capital requirements compared to our peers.
Speaker Change: Success in the automotive industry hinges on a stable and reliable supply chain.
Matthew Fisch: Our approach with Apollo exemplifies this, as it leverages a high degree of reuse within the existing supply chain. Additionally, our software-defined strategy has enabled rapid advancements in the product's capabilities, including going from concept to working samples of Apollo in only six months. This demonstrates Aeye's unique flexibility in adapting to rapidly evolving market needs. Having secured additional financing through the new circle stock purchase agreement, which, coupled with our cash reduction initiatives and capital light model, significantly extends our runway. We are entering a new stage in Aeye's growth. We have our sites set on executing our go-to-market strategy for Apollo and actively pursuing product design wins.
Speaker Change: Our approach with Apollo exemplifies this, as it leverages a high degree of reuse within the existing supply chain.
Speaker Change: Additionally, our software-defined strategy has enabled rapid advancements in the product's capabilities, including going from concept to working samples of Apollo in only six months.
Matt Fisch: This demonstrates AI's unique flexibility in adapting to rapidly evolving market needs. AI has secured additional financing through the New Circle Stock Purchase Agreement, which, coupled with our cash reduction initiatives and capital light model, significantly extends our runway. We are entering a new stage in AI's growth. We have our sights set on executing our go-to-market strategy for Apollo and actively pursuing product design wins. We expect our relationships with our partners to continue to drive OEM interest in AI, and we are excited to be connected to top players in the Chinese market and the global supply chain.
Speaker Change: This demonstrates AI's unique flexibility in adapting to rapidly evolving market needs.
Speaker Change: Having secured additional financing through the New Circle Stock Purchase Agreement, which coupled with our cash reduction initiatives and capital light model, significantly extends our runway. We are entering a new stage in AI's growth.
Speaker Change: We have our sights set on executing our go-to-market strategy for Apollo and actively pursuing product design wins.
Matthew Fisch: We expect our relationships with our partners to continue to drive OEM interest in Aeye, and we are excited to be connected to top players in the China market in the global supply chain.
Speaker Change: We expect our relationships with our partners to continue to drive OEM interest in AI. And we are excited to be connected to top players in the China market and the global supply chain.
Matt Fisch: Overall, our product development successes, financial performance, and market trends indicate a positive trajectory, and we are excited about the future of AI. At this point, I would like to turn the call over to Conor, who will discuss our financial performance.
Matthew Fisch: Overall, our product development successes, financial performance, and market trends indicate a positive trajectory, and we are excited about the future of Aeye.
Speaker Change: Overall, our product development successes, financial performance, and market trends indicate a positive trajectory, and we are excited about the future of AI.
Conor Tierney: At this point, I would like to turn the call over to Connor, who will cover our financial performance. Connor? We are thrilled by the early progress that we are seeing in the Chinese market, where we estimate the market opportunity for ultra-long range light art to be $2.5 billion over the next three years. Our partnership with Aae is off to a strong start, and we are starting to make inroads with OEMs thanks to their support. We also continue to evaluate potential strategic investment opportunities. Driving down bomb costs is imperative to capitalizing market adoption and engaging in quoting activity with OEMs. We are making strong progress with a light on on this front, which is generating increased interest from OEMs. As a established Tier 1 that has brought other automotive components to the global market, and with the track record of industrializing products, light on is seen as a net positive by OEMs. AAE is capitalized business model, which reduces risk, and will drive operating leverage as we scale in the future, sets us apart from the competition.
Speaker Change: At this point, I would like to turn the call over to Conor, who will cover our financial performance.
Conor Tierney: We are thrilled by the early progress that we are seeing in the Chinese market. We'll re-estimate the market opportunity for ultra-long-range LiDAR to be $2.5 billion over the next three years.
Speaker Change: Conor?
Conor Tierney: We are thrilled by the early progress that we are seeing in the Chinese market. We'll re-estimate the market opportunity for ultra-long-range LiDAR to be $2.5 billion over the next three years.
Conor Tierney: Our partnership with ATI is off to a strong start, and we are starting to make inroads with OEMs thanks to their support. We also continue to evaluate potential strategic investment opportunities. Driving down bomb costs is imperative to catalyzing market adoption and engaging in quoting activity with OEMs. We are making strong progress with Liton on this front, which is generating increased interest from OEMs. As an established Tier 1 that has brought other automotive components to the global market and with a track record of industrializing products, Lighton is seen as a net positive by OEMs.
Conor Tierney: Our partnership with ATI is off to a strong start and we're starting to make inroads with OEMs thanks to their support. We also continue to evaluate potential strategic investment opportunities.
Conor Tierney: Driving down bond costs is imperative to catalyzing market adoption and engaging in quoting activity with OEMs.
Conor Tierney: We are making strong progress with Liton on this front, which is generating increased interest from OEMs.
Liton: As an established Tier 1 that has brought other automotive components to the global market and with a track record of industrializing products, Lighton is seen as a net positive by OEMs.
Conor Tierney: AI's capital light business model, which reduces risk and will drive operating leverage as we scale in the future, sets us apart from the competition. Our burn rate is now up to 10 times lower than our peers. We think this is very crucial in the current environment where fundamentals matter, capital is scarce, and investors are focused on sustainable business models that can withstand market headwinds. We are pleased with the momentum that we have been able to achieve in bringing Apollo to market, all while continuing to drive down costs.
Speaker Change: AI's capital light business model, which reduces risk and will drive operating leverage as we scale in the future, sets us apart from the competition.
Conor Tierney: Our burn rate is now up to 10 times lower than our peers. We think this is very crucial in the current environment, or fundamental matter, capitalist scarce, and investors are focused on sustainable business models that can withstand markethead. We are pleased with the momentum that we have been able to achieve in bringing Apollo to market, all while continuing to drive down costs. During the second quarter, we raised $5.2 million in new capital, net of financing costs. This is further extended our cash runway into the second half of 2025. We also recently closed a new equity line of credit facility that gives us access to up to $50 million in additional liquidity.
Speaker Change: Our burn rate is now up to 10 times lower than our peers. We think this is very crucial in the current environment where fundamentals matter. Capital is scarce and investors are focused on sustainable business models that can withstand market headwinds.
Speaker Change: We are pleased with the momentum that we have been able to achieve in bringing Apollo to market, all while continuing to drive down costs.
Conor Tierney: During the second quarter, we raised $5.2 million in new capital net of financing costs. This has further extended our cash runway into the second half of 2025. We also recently closed a new equity line of credit facility that gives us access to up to $50 million in additional liquidity. When factoring this equity line of credit facility with our ongoing cost savings initiatives, including any additional funds raised from capital market activity, we believe AI has the financial resources to potentially create a four-year cash runway while also bringing Apollo to market and pursuing potential program design.
Speaker Change: During the second quarter, we raised $5.2 million in new capital net of financing costs.
Speaker Change: This has further extended our cash runway into the second half of 2025. We also recently closed a new equity line of credit facility that gives us access to up to $50 million in additional liquidity.
Conor Tierney: When factoring this equity line of credit facility with our ongoing cost savings initiatives, including any additional funds raised from capital market activity, we believe Aeye has the financial resources to potentially create a four-year cash runway while also bringing Apollo to market and pursuing potential program design wins.
Speaker Change: When factoring this equity line of credit facility with our ongoing cost savings initiatives, including any additional funds raised from capital market activity,
Speaker Change: We believe AI has the financial resources to potentially create a four-year cash runway while also bringing Apollo to market and pursuing potential program design wins.
Conor Tierney: Now turning to our second quarter financial results. I am happy to announce that we have reduced our net cash burn for the fifth consecutive quarter. Excluding new financing, our cash burn for the second quarter was $6.2 million, down from $7.6 million in the first quarter and better than our guidance of $6.7 million. Second quarter gap operating expenses were $8.1 million, down 23% from the prior quarter, due primarily to reductions in personnel costs and professional fees, partially offset by higher R&D expenses related to Apollo. Non-GAP operating expenses were $6.4 million, down sequentially from $7.5 million in the first quarter of 2024, due primarily to the timing of higher-order related fees and one-time legal fees in the first quarter.
Conor Tierney: Now turning to our second quarter financial results, I am happy to announce that we have reduced our net cash burn for the fifth consecutive quarter. Excluding new financing, our cash burn for the second quarter was $6.2 million, down from $7.6 million in the first quarter and better than our guidance of $6.7 million. Second quarter GAAP operating expenses were $8.1 million, down 23% from the prior quarter, due primarily to reductions in personnel costs and professional fees, partially offset by higher R&D expenses related to Apollo.
Speaker Change: Now turning to our second quarter financial results. I am happy to announce that we have reduced our net cash burn for the fifth consecutive quarter.
Speaker Change: Excluding new financing, our cash burn for the second quarter was $6.2 million, down from $7.6 million in the first quarter and better than our guidance of $6.7 million.
Speaker Change: Second quarter gap operating expenses were $8.1 million, down 23% from the prior quarter, due primarily to reductions in personnel costs and professional fees, partially offset by higher R&D expenses related to Apollo.
Conor Tierney: Non-GAAP operating expenses were $6.4 million, down sequentially from $7.5 million in the first quarter of 2024, due primarily to the timing of higher audit-related fees and one-time legal fees in the first quarter. We reported a second quarter gap net loss of $8 million, or $1.16 per share, versus a gap net loss of $10.2 million or $1.61 per share in the first quarter of 2024. The decrease in gap net loss was mainly due to the timing of higher audit-related fees and one-time legal fees in the first quarter.
Speaker Change: non-GAAP operating expenses were $6.4 million, down sequentially from $7.5 million in the first quarter of 2024, due primarily to the timing of higher audit-related fees and one-time legal fees in the first quarter.
Conor Tierney: We reported a second quarter gap net loss of $8 million are $1.16 per share, first is a gap net loss of $10.2 million are $1.61 per share in the first quarter of 2024. The decrease in gap net loss was mainly due to the timing of higher-order related fees and one-time legal fees in the first quarter. On a non-GAAP basis, our net loss with $6.2 million are $91 per share in the second quarter, compared to a non-GAAP net loss of $7.2 million are $1.13 per share in the first quarter of 2024. Net cash used for operating activities decreased to $6.4 million in the second quarter from $7.9 million in the first quarter.
Speaker Change: We reported a second quarter gap net loss of $8 million, or $1.16 per share, versus a gap net loss of $10.2 million, or $1.61 per share in the first quarter of 2024.
Speaker Change: The decrease in gap net loss was mainly due to the timing of higher audit-related fees and one-time legal fees in the first quarter.
Conor Tierney: On a non-GAAP basis, our net loss was $6.2 million, or $0.91 per share, in the second quarter, compared to a non-GAAP net loss of $7.2 million, or $1.13 per share, in the first quarter of 2020. Net cash used for operating activities decreased to $6.4 million in the second quarter from $7.9 million in the first quarter.
Speaker Change: On a non-GAAP basis, our net loss was $6.2 million, or $0.91 per share in the second quarter, compared to a non-GAAP net loss of $7.2 million, or $1.13 per share in the first quarter of 2024.
Speaker Change: Net cash used for operating activities decreased to $6.4 million in the second quarter from $7.9 million in the first quarter.
Conor Tierney: We close the second quarter with $28 million of cash, cash equivalents, and marketable securities.
Conor Tierney: We close the second quarter with $28 million of cash, cash equivalents, and marketable security. Turning to 2024 guidance, we are incredibly proud of the progress that we have made in our continued cash burn reduction. We are on track to outperform our BIRD guidance of $25 million for the full year, thanks to payroll and other safeguards. Spence management remains one of our top priorities. We're still targeting a 75% reduction in quarterly cash burn compared to the first quarter of 2022.
Speaker Change: We close the second quarter with $28 million of cash, cash equivalents, and marketable securities.
Conor Tierney: Turning to 2024 guidance, we are incredibly proud of the progress that we have made in our continued cash burn reduction efforts. We are on track to outperform our bird guidance of $25 million for the full year, thanks to payroll and other savings. Expense management remains one of our top priorities, where we are still targeting a 75% reduction in quarterly cash burn compared to the first quarter of 2024. 33. We are optimistic about Aeye's future. Our partnership model is on locking market opportunities for us and positioning the company for scalable success. We have strengthened our balance sheets, extended our cash runway, and secured access to even more liquidity.
Speaker Change: Turning to 2024 guidance, we are incredibly proud of the progress that we have made in our continued cash burn reduction efforts.
Speaker Change: We are on track to outperform our bird guidance of $25 million for the full year, thanks to payroll and other savings.
Speaker Change: Expense management remains one of our top priorities. We are still targeting a 75% reduction in quarterly cash burn compared to the first quarter of 2023.
Conor Tierney: We are optimistic about AI's future. Our partnership model is unlocking market opportunities for us and positioning the company for scalable success. We have strengthened our balance sheet, extended our cash runway, and secured access to even more liquidity. With that, I'll pass it back to Matt to wrap things up.
Speaker Change: We are optimistic about AI's future.
Speaker Change: Our partnership model is unlocking market opportunities for us and positioning the company for scalable success.
Speaker Change: We have strengthened our balance sheet.
Speaker Change: extended our cash runway, and secured access to even more liquidity.
Matthew Fisch: With that, I'll pass it back to Matt to wrap things up. This quarter has been a period of gaining momentum for us. We have made great strides in our KPIs, customer engagements, product development, and partnerships.
Speaker Change: With that, I'll pass it back to Matt to wrap things up.
Matt Fisch: This quarter has been a period of gaining momentum for us. We have made great strides in our KPIs. (Inaudible) We believe the next chapter of A.I.
Matt Fisch: This quarter has been a period of gaining momentum for us.
Matt Fisch: We have made great strides in our KPIs, customer engagements, product development, and partnerships.
Matthew Fisch: We believe the next chapter of Aeye will be an exciting one, and we look forward to sharing more with you in the near future. If you are able, we invite you to join us at the JP Morgan Auto Conference in New York this week. We look forward to meeting you there. You can also see our presentation live through a link on the Investor Relations page of our website.
Operator: The future will be an exciting one, and we look forward to sharing more with you in the near future. If you're able, we invite you to join us at the J.P. Morgan Auto Conference in New York this week. We look forward to meeting you there. You can also see our presentation live through a link on the Investor Relations page of our website. Thank you all for your continued support and participation today. Thank you, Matt and Conor.
Matt Fisch: We believe the next chapter of AI will be an exciting one, and we look forward to sharing more with you in the near future.
Matt Fisch: If you're able, we invite you to join us at the J.P. Morgan Auto Conference in New York this week.
Matt Fisch: We look forward to meeting you there.
Matt Fisch: You can also see our presentation live through a link on the investor relations page of our website.
Unknown Executive: Thank you all for your continued support and participation today.
Matt Fisch: Thank you all for your continued support and participation today.
Operator: Thank you, Matt and Conor. Operator, you may now open the call to questions. Thank you.
Unknown Executive: Thank you, Matt and Conor.
Unknown Executive: Operator, you may now open the call to questions. Thank you. If you'd like to ask a question, please press Star 11. If your question hasn't been answered and you'd like to remove yourself from the queue, please press star 11 again.
Speaker Change: Thank you, Matt and Conor. Operator, you may now open the call to questions. Thank you.
Speaker Change: and Matthew Fisch, Conor Tierney, Leigh Bannister, Matthew Fisch
Operator: Thank you. If you'd like to ask a question, please press star 11. If your question hasn't been answered and you'd like to remove yourself from the queue, please press star 11 again. Our first question comes from Kevin Garrigan with West Park Capital. Your line is open.
Speaker Change: Thank you. If you'd like to ask a question, please press star 1 1. If your question hasn't answered and you'd like to remove yourself from the queue, please press star 1 1 again.
Kevin Garrigan: Our first question comes from Kevin Garrigan with West Park Capital. Your line is open.
Speaker Change: Our first question comes from Kevin Garrigan with West Park Capital. Your line is open.
Kevin Garrigan: Yeah, hey, you got a new man, Conor. Thanks for taking my questions. So to start, you know, you noted your partnerships with ATI and Light Text on have led to OEM introductions. Any timelines you can give on potential series production agreement announcements. And then I think last quarter, you had noted some use cases where autonomous trucking and railway systems. Any new use cases to point out.
Kevin Garrigan: Yeah, hey, good afternoon, Matt and Conor. Thanks for taking my questions. So, to start, you noted your partnerships with ATI and Litecton have led to OEM introductions. Any timelines you can give on potential series production agreement announcements? And then I think last quarter, you had noted some use cases were autonomous trucking and railway systems. Any new use cases to point out? Hey, thanks, Kevin.
Kevin Garrigan: Yeah, hey, good afternoon, Matt and Conor. Thanks for taking my questions. So to start, you know, you noted your...
Kevin Garrigan: Partnerships with ATI and Litechton have led to OEM introductions. Any timelines you can give on potential series production agreement announcements? And then I think last quarter you had noted some use cases were autonomous trucking and railway systems. Any new use cases to point out?
Conor Tierney: Thanks, Kevin. Welcome back. Thanks for joining us again.
Matt Fisch: Hey, thanks, Kevin. Welcome back. Thanks for joining us again.
Matt Fisch: So not a lot of big delta from what we discussed last quarter, even with these new discussions coming in and the amount of interest that we're seeing on the long-range higher performance product coming from China. In terms of SOPs, we're still looking at maybe as early as 2027 in those conversations. I think, as you know, the lead time for some of these OEM programs could be around two years, maybe a little bit longer.
Conor Tierney: So not a lot of big Delta from what we discussed last quarter, even with these new discussions coming in and the amount of interest that we're seeing on the long range higher performance product coming from our China connection. In terms of SOPs, we're still looking at maybe as early as 2027 in those conversations. I think, as you know, that the lead time in some of these OEM programs, if it be around two years, they get a little bit longer. So I would say that the timeline of the engagements with the new ones coming in is still very similar to what we've been seeing, what we talked about last quarter, because this is the amount of interest is picking up.
Speaker Change: Hey, thanks, Kevin. Welcome back. Thanks for joining us again.
Speaker Change: So not a lot of big delta from what we discussed last quarter, even with these new discussions coming in and the amount of interest that we're seeing on the long-range higher performance product coming from our China.
Speaker Change: Connection.
Speaker Change: In terms of SOPs, we're still looking at maybe as early as 2027 in those conversations. I think as you know that the lead time in some of these OEM programs
Matt Fisch: So I would say the timeline for the engagements with the newer ones coming is still very similar to what we've been seeing and what we talked about last quarter. The good news is the amount of interest is picking up, so we have more of those conversations.
Speaker Change: It could be around two years, maybe a little bit longer. So I would say the timeline of the engagements with the newer ones coming in
Speaker Change: It's still very similar to what we've been seeing, what we talked about last quarter. The good news is the amount of interest is picking up so we have more of those conversations ongoing.
Conor Tierney: So we have more of those conversations ongoing.
Kevin Garrigan: Got it. Okay. Yeah, that makes sense.
Kevin Garrigan: Got it. Got it. Okay.
Kevin Garrigan: And then some of the RFIs and RFUs that you're seeing, you know, demand and production. I know S&P Globalized cut their estimates recently. Are you seeing any more pushes to the right for some of these RFIs and RFUs?
Kevin Garrigan: Yeah, that makes sense. And then some of the RFIs and RFQs that you're seeing, you know, demand and production, I know S&P Global has cut their estimates recently. Are you seeing any more pushes to the right for some of these RFIs and RFQs?
Speaker Change: Got it. Got it. Okay. Yeah, that makes sense. And then some of the RFIs and RFQs that you're seeing, you know, I know demand and production, I know S&P Global has cut their estimates recently. Are you seeing any more pushes to the right for some of these RFIs and RFQs?
Conor Tierney: I think it's "steady as she goes" is probably the opposite word on this, Kevin. I think if anything, we've got this nits of requirement that came out there earlier this year. This is driving some increased interest in hey, what happens when the cars traveling at a high rate speed. And it's not just autonomy anymore; it's automatic emergency braking in the US example. So, you know, fairly fairly consistent kind lines and increased interest in high speed applications, which we covered in learning script is a place quite well for the technology. The platform that you use, which is 1550, an enemy of light, are allows us to see very far down the road.
Matt Fisch: I think "steady as she goes" is probably the operative word on this, Kevin. I think, if anything, we've got this NHTSA requirement that came out earlier this year. This is driving some increased interest in, hey, what happens when the car is traveling at a high rate? And it's not just autonomy anymore; there's automatic emergency braking in the U.S. So, you know, fairly consistent timelines and increased interest in high-speed applications, which we covered in the Learning Script, play quite well for the technology platform that we use, which is 1550 nanometer LiDAR. It allows us to see very far down the road. So, there are more conversations, but the timelines appear to be holding.
Speaker Change: I think it's steady as she goes is probably the operative word on this, Kevin. I think, if anything, we've got this NHTSA requirement that came out there earlier this year. This is driving some increased interest in, hey, what happens when the car is traveling at a high rate of speed?
Speaker Change: And it's not just autonomy anymore, it's automatic emergency braking in the U.S.
Speaker Change: example. So, you know, fairly, fairly consistent timelines and increased interest in high-speed applications, which we covered in the learning script, plays quite well for the technology platform that we use.
Speaker Change: which is 1550 nanometer LiDAR allows us to see very far down the road. So increased number of conversations but the timelines appear to be holding.
Conor Tierney: So, increased number of conversations, but the timelines.
Kevin Garrigan: Yeah, got it. Okay, perfect.
Kevin Garrigan: Yep, got it. Okay, perfect. Um, and then just last one, if I, if I can, I You know, I know you guys are using partners such as Lighton and ATI and Lightecton, and I think that's very smart. But any kind of hesitation from some Chinese customers that may be worried about any U.S.-China tensions going on?
Conor Tierney: Um, and then just last one, if I, if I can, I, you know, I know you guys are using partners such as LightOn and an ATI and MyTechOn, and I think that's very smart, but any, any kind of hesitation from some Chinese customers that may be worried about any US-China tensions going on. Okay, I think the important part of this, uh, relationship is to be able to have a local local base supply chain and be able to move very quickly. The market in China is incredibly demanding: speed and velocity, velocity of innovation and being able to adapt to the customer's needs that are also changing fairly quickly as first and foremost.
Speaker Change: Yep, got it. Okay, perfect. And then just last one, if I can, I know you guys are using partners such as LightOn and ATI and Lightecton, and I think that's very smart, but any kind of hesitation from some Chinese customers that may be worried about any U.S.-China tensions going on?
Matt Fisch: I think the important part of this relationship is to be able to have a local supply chain and be able to move very quickly. The market in China is incredibly demanding. Speed and velocity of innovation and being able to adapt to the customer's needs, which are also changing fairly quickly, is first and foremost. So our partnership with ATI and MyTekton has been received quite well as we rolled that out at the LiDAR show last month.
Speaker Change: I think the important part of this relationship is to be able to have a local-based supply chain.
Speaker Change: and be able to move very quickly. The market in China is incredibly demanding, speed and velocity of innovation.
Speaker Change: and being able to adapt to the customer's needs that are also changing fairly quickly is first and foremost. So our partnership with ATI and MyTekton has been received quite well as we rolled that out in the LiDAR show last month and
Conor Tierney: So our partnership with ATI and my tech talent has been received quite well as we roll that out in the Lighter Show last month, and they seem to be fairly well respected in the ecosystem. So no words like there, there's, you know, local support on the ground, which we have through Light Tech time, local manufacturing base supply chain, which we have through ATI. This is checking the major boxes for those potential ONs.
Matt Fisch: And they seem to be fairly well-respected in the ecosystem. So nowhere is it like there's, you know, local support on the ground, which we have through MyTekton, and a local manufacturing-based supply chain, which we have through ATI. This is checking the major boxes for those potential OEMs.
Speaker Change: they seem to be fairly well respected in the ecosystem. So no red flags there. There's, you know, local support on the ground, which we have through Litechton, local manufacturing-based supply chain, which we have through ATI. This is checking the major boxes for those potential OEMs.
Kevin Garrigan: Okay, perfect. Thank you.
Kevin Garrigan: Okay, perfect. Thank you.
Speaker Change: Okay, perfect. Thank you.
Operator: I'm not showing any further questions. This concludes the Q&A session. You may now disconnect. Everyone, have a great day.
Unknown Executive: I'm not showing any further questions.
Unknown Executive: This concludes the Q&A session.
Speaker Change: Thank you. I'm not showing any further questions. This concludes the Q&A session. You may now disconnect. Everyone, have a great day.
Unknown Executive: You may now disconnect.
Unknown Executive: Everyone, have a great day.