Q3 2024 Innoviz Technologies Ltd Earnings Call
This meeting is being recorded.
Good morning, I would like to welcome you to our Q3 'twenty 'twenty four earnings conference call. Joining us today are <unk>, Chief Executive Officer, and Endara Zeigler Chief Financial Officer.
Following their opening remarks, we will open the call to your questions I would like to remind everyone that this call is being recorded and will be available on the Investor Relations section of our website at IR Dot interface Dot Tech.
Before we begin I would like to remind you that our discussion today will include forward looking statements that are subject to risks and uncertainties relating to future events and the future financial performance of interface.
Actual results could differ materially from those anticipated in the forward looking statements forward looking statements made today speak only to our expectations as of today and we undertake no obligation 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 form 20-F filed with the SEC on March 12, 'twenty 'twenty four AMR. Please go ahead.
Speaker Change: Thank you, Mike and good morning, everyone. Thank you for joining us.
Speaker Change: Third quarter represents another strong quarter for innovation, both in terms of revenue and cash performance.
Speaker Change: During the last quarter, we announced a new partnership with <unk>.
Speaker Change: Platinum partner today I'm happy to share that following this agreement we entered two new OEM programs with expected <unk> in 2026.
Speaker Change: I will share more detail on this momentarily.
Speaker Change: Revenues for the quarter were $4 $5 million above the midpoint of our guidance range of $3 $5 million to $5 million.
We further decreased our test do in operations capital ventures complete.
Speaker Change: From $28 $6 million in Q3, 2023 by approximately 38% to $17 $7 million this quarter.
Speaker Change: Both Don and I will provide additional color on this later.
On today's call I'll begin the discussion by providing more details on our announcements of the two new Oems.
Speaker Change: And then we will discuss our progress regarding the different Volkswagen program.
Speaker Change: All of them gave an overview of our pipeline and highlight several of the programs we are competing for.
Speaker Change: These are exciting programs with multiple Oems.
Speaker Change: And also we're expecting nomination decisions in the near term.
Speaker Change: I'll provide some high level detail on these and explain why we are confident in our positioning.
Speaker Change: We will also share with you exciting breakthroughs on the technological front.
Speaker Change: These developments allow us to significantly improve our product performance in both range and resolution and also provide new and unique line of capabilities with.
Speaker Change: Each are valuable to our clients.
I'll conclude the technical discussion with an update on our new short range offering.
Speaker Change: Finally, I'll discuss our expectations for the rest of the year. In addition to reviewing our Q3 financials.
Speaker Change: Starting with our announcements on the two new OEM programs.
Speaker Change: During the third we're following our engagement with a major label for platform partner, we entered two new OEM programs, which have adopted the platform to allow seamless integration of our lighter aimed for their vehicles.
Speaker Change: Part of this process, we are working with the platform partner and the Oems on the mechanical electrical and other integration effort.
Innovation is expected to provide a bundle of nine enormous too short and long range Lidar per vehicle.
This is a testament to the business advantage of offering a bundle of Hulk range and long range Diversifies, our customer which allows us for more meaningful revenue.
Speaker Change: We expect to see fleet for both Oems begin roll desk 25.
Speaker Change: We started production at credit Suisse.
Speaker Change: Two Oems are part of the group of patients that have already selected as the platform. Therefore, we expect additional Oems programs in the future.
Speaker Change: Importantly, this partnership has the potential to offer significant threat that revenue growth and favorable volumes were interviewed.
Speaker Change: Just recently, we have heard of progress around new and exciting customers, who may potentially adopt the platform.
Speaker Change: We're excited to be part of this platform and fold opportunity that could create marine of it. We are aware of the market's curiosity related to the names of the plasma path there and the Oems.
Speaker Change: And we agreed with our partner to share more details before the end of this year.
Speaker Change: Moving on to an update on our partnership with Volkswagen.
As a reminder, we secured a series production awards for different VW brand.
Speaker Change: We are working on to level three but.
Speaker Change: Huang with Qualcomm and carrier and the other combined mobilize you'll bear and reveal software.
Speaker Change: We also continued to work on the IV Bud light commercial vehicle program.
Speaker Change: Level four program with multiple Litres per vehicle planned to launch in 2026.
Speaker Change: This program incorporates mobilized drive.
Speaker Change: I'm happy to share the development process is moving forward nicely across these programs. We continue to move through virus audits in development gains successfully golf on the production line and other development.
We are on track to meet the planned lighter Saar the production pipeline.
Just recently Voya disposed volume growth technology company that develops on demand right putting services for orbit area made an important announcement regarding the IV, but.
Speaker Change: Moya announced the starting that's starting in mid 2025, it will deploy the IV buys in Hamburg, Germany as part of the project alike.
Speaker Change: Project with death upon almost on demand right pooling into city.
Speaker Change: This is an insurance.
Speaker Change: Previous announcements regarding deployment also in Austin, Texas and in an over Germany.
Speaker Change: We are happy to see this platform expanding and eager to learn about the additional locations around the world which was volume.
Speaker Change: Boy is offering its mobility as a service licensing will build facilities all over the world.
Speaker Change: And his goal is to develop an autonomous rightfully system that can be scale internationally.
Speaker Change: We are proud to be part of the <unk> program, which is supporting the evolution of mobility.
Speaker Change: Now I'll discuss our pipeline of RFID than our Skus and provide additional detail on several specific or excuse in which we are making progress.
Speaker Change: Overall, we currently have over 15 programs in the pipeline.
Speaker Change: With approximately 50% into our acoustics.
Speaker Change: We're encouraged by the continued progression of the opportunities in our pipeline and are confident in our positioning to provide our lighters and perception software to the market.
Speaker Change: While we are in contact with a number of Oems regarding conditional programs will speak today about several specific opportunities we are working towards.
Bert: Bert I'll highlight the potential new level three program with the top 10 automotive OEM that we are.
Bert: We're excited about.
Bert: We were able to demonstrating over steel performance advantages immaturity, the potential customer and are in a very late stages of the iron SKU process with this meaningful OEM reached.
Bert: Reaching alignment on technical production commercial and legal matters I'm also happy to share that we recently passed their exhausted production are the major buckets of checks in the RFP process.
Bert: We're making solid progress and they have indicated that they are nearly ready to make the nomination decision. We are looking forward to hearing their decisions.
Bert: Broadly.
Bert: We're seeing a pickup in potential customer activity in the North America region in both level three and level four.
Sure.
Bert: As such we are in contact with several leading north American automotive Oems regarding various are advising our skus, including level three and level four programs.
Bert: These Oems we have successfully completed latter technical and commercial assessment, which allows us to display the advantages of our technology.
As a result, we are now in various stages of sourcing.
Bert: We expect to start hearing from the Oems.
Bert: Oems regarding the cost of these programs in the coming months.
Bert: The opportunities I've just discussed.
Bert: Are among the many in our diverse pipeline.
Bert: We have a lot to look forward to and the entire team is working hard to convert these.
Speaker Change: I'm sorry.
Speaker Change: Okay.
Speaker Change: Hum.
Speaker Change: Right.
Speaker Change: On second thank you.
Speaker Change: At the store.
Uh huh.
Speaker Change: We have enough to work have look pursue.
Speaker Change: That team is working hard to convert difficult entities.
Speaker Change: Into additional design wins.
Speaker Change: Now turning to an overview of some exciting breakthroughs on the technological problems.
Speaker Change: More and more we're seeing our unique technology as a primary competitive advantage.
Speaker Change: We're as confident as ever that we are positioned to win many more customer programs. Thanks to the value our outstanding technology offers to our clients.
Speaker Change: He nobody did not the birth or all the liner company, yes, we'd become a trailblazer in the industry since we were founded.
Speaker Change: Today, It seems from the feedback that we're receiving from our customers.
Speaker Change: Our technology is significantly outpaces, the latter months and we believe that this will this gap will continue to widen.
Speaker Change: There are several reasons to support this claim first and foremost we have the track record and culture to push boundaries and ever assume there is a limit to what we can do.
Speaker Change: The possible is not in our recovery.
Speaker Change: We've had for Australia translated into tangible results.
Speaker Change: I will touch on in the following slides.
Speaker Change: Include.
Speaker Change: Are we.
So configuration.
Speaker Change: Our unique IR imaging offering.
Speaker Change: Unparallel unparalleled blockage resilient.
Speaker Change: And our first samples of the enormous to short range lidar for level, four and non automotive applications.
Speaker Change: As Emil visa continuously advance our technology, we are always driving to push performance boundaries to enhance quality for our customers in that spirit. We have again improved the enormous do with a new and more advanced configuration.
Speaker Change: Some key features include a new uniform resolution of 0.05 by 0.05 degrees across the field of view.
Speaker Change: Resulting in approximately 12 megapixels per second along with an improved range.
Speaker Change: We're proud to have upgraded our technology again and offer additional performance advantages contributing to a better driving experience.
Speaker Change: Another exciting development, which is now offered to our customers is a new feature which allows capturing in lidar IR imaging that can capture scene with view with views of a few kilometres very much like a camera.
Speaker Change: That will allow us to see not only point loads, but actual clouds in the sky.
Speaker Change: Was this technology, our lidar has the unique ability to provide camera like image out with that.
Speaker Change: That can be provided alongside our three D point cloud data at the same resolution.
Speaker Change: This allows an improved low level fusion above the three D and a camera like image, which enables low level fusion perception stack that exceed the capabilities of existing latter perception solution.
Speaker Change: As you can see in the video this allows for an all in one lidar plus IR camera using the same power.
Speaker Change: These grades lower power usage and higher performance.
Speaker Change: All at a lower cost to the customer.
Speaker Change: With all of these technological advances we have delivered yet another key differentiator advantage, which is innovative do resilience to virus died of blockages.
Speaker Change: Including Mod dust water start shipping and ASIC.
Speaker Change: This resilience mitigate potential for compromise object detection and tracking and for autonomous driving this engagement.
Speaker Change: In the video that you are seeing now you will notice that the lighter window is heavily covered with mud, which normally would create blockages. This was laid into gaps or holes in the field of view in any standout lighter lower camera.
Speaker Change: As you can see no such holes are observed in the end of its two points.
Speaker Change: Oh IR image, thanks to our technological solution to the blockage problem.
Speaker Change: This is a critical advantage Beverly Boulevard for applications.
Speaker Change: Our product delivers continuous availability, allowing the vigo to reliably detect obstacles pedestrians and changing the driving environment.
Speaker Change: Ultimately minimizing the risk of collision.
Speaker Change: This becomes crucial as we work with Oems across different levels of autonomy.
Speaker Change: Including one <unk>.
Speaker Change: Sure let me explain.
Speaker Change: Level two applications require full driver supervision.
Hence the reduced sensitivity to blockages when working with level three applications. The driver is allowed to take their eye off the road.
Speaker Change: Level three unit to have redundancy, but even them the driver might be required to regain control of the vehicle within 10 seconds if needed.
Speaker Change: The high quality resilient datacenter contribute to a robust system that allows higher availability and creates a better autonomous driving experience by allowing the driver to relax for a longer period without interruption.
Speaker Change: With level four the technology needs to be several magnitude better because there is no driver to turn to.
Speaker Change: There is no time second rescue right.
Speaker Change: Because of that we've passed the point of talking about just rage and resolution, we're talking about quality and availability.
Speaker Change: Our technology needs to be immune to blockages, and adwords driving conditions that might arise on the road.
Speaker Change: The ability to operate seamlessly under these conditions is baked into the foundations of our technology, our design and our architectures.
Speaker Change: Last technical update for today is related to our offering of a short range version of innovate to.
Speaker Change: The short range lidar can be implemented across level four of them up even nonautomotive applications.
Speaker Change: It features.
<unk> resilience to sunlight and adverse weather conditions up to 100 meters of detection range and up to 90 degrees vertical field of view and embedded automotive cyber security needs.
Speaker Change: Oh, just several many features that contribute to the inhibition to source range unique advantage of.
Speaker Change: Following the development of this differentiated technology, we've seen increased interest in our short range operating from.
Speaker Change: Interestingly unveiling this solution with our long ridge butter.
Speaker Change: Such as presented in debate announced.
Speaker Change: I'd now like to take a moment to highlight our effective cash performance, which is a tandem with our strong revenues has led to six to sequentially decrease Casper.
Speaker Change: We're seeing benefits from the cost actions, we executed this part of the strategic realignment, we announced in Q1.
Last year, our organizational structure are comprised separate hardware and software development units supporting both the enormous.
Speaker Change: An enormous two platforms.
Meaning we had separate cost structures for each platform.
Speaker Change: We combined these units into one consolidated R&D Department and after moving Inova is one into serious production, we're solely focused on the innerwear steel platform.
Speaker Change: Notably we are leverage at leveraging technological similarities between <unk>, one and interviews to to further manage cost.
Speaker Change: Sure.
Speaker Change: For example, we've invested in developing a second generation high quality AC chip, meaning we have no need for additional investments in that component in the coming year.
Speaker Change: The realignment that we did earlier this year enabled.
Speaker Change: Sure.
Enabled us to realize that benefit.
Speaker Change: From these technological carryover.
Optimize workflows and processes and are organized structure.
Speaker Change: We are on track to achieve the originally projected financial benefits of the realignment.
Speaker Change: And as a result, we are now better positioned for rapid transformative growth with a larger number of customers.
Speaker Change: Importantly, we're further offsetting our spending by consistently achieving revenues above or in line with our guidance.
Speaker Change: Before I hand over the call to Doug.
Doug: I'll provide our revenue guidance for the full year, we expect full year revenues in the range of $23 $5 million to $25 million compared to $29 million in full year 2023.
Speaker Change: I'd like to call out that the Lumpiness, we are seeing in the revenues can be attributed to the cadence of banner is channeled field and customer activity.
Speaker Change: Last quarter, we reiterated our confidence in achieving our operational targets.
Speaker Change: Two to three additional programs from both existing and new customers.
Speaker Change: And $270 million.
Speaker Change: New energy bookings in 2024.
Speaker Change: I am pleased here that we have already met our operational targets.
Speaker Change: Two to three new programs in 'twenty before this was here through the addition of two new Oems in connection with the collaboration with the leading level for blood compartment, which is off which is operating efficiency.
Speaker Change: Several of our programs.
Speaker Change: In addition, there are two additional programs that we started working on this year, which are pending finalization.
Speaker Change: Finalizing the commercial and legal terms on top of these two Oems.
Speaker Change: Given the developments with our customers and continued strong performance in Q3, we also remain confident in achieving the $20 million to $70 million in energy bookings and reiterate the top.
Speaker Change: Looking ahead to 2025, we expect acceleration to our revenue streams and build on our top line momentum as more customers adopt our technology and with that I'll turn the call over to adopt to review our Q3 2024 financial.
Speaker Change: Thank you Omer and good morning, everyone.
Speaker Change: Okay.
Speaker Change: Starting with cash we ended Q3 2024 with approximately $87.7 million in cash cash equivalents bank deposits market with our marketable securities and short term restricted cash on the balance sheet.
Speaker Change: Cash used in operation and capital expenditure came in at $17.7 million compared to $28 $6 million in Q3, 2023, and $21 6 million voters about the quarter.
Speaker Change: We are continuing to drive sequentially decreased cash burn, resulting from our focus on innovation to platform and our strong revenue performance.
Speaker Change: As Omar mentioned, we are realizing the benefits of our strategic realignment every reduced investments in any of these one development. Our organization is leaner more agile and entirely focused on platform with innovative too.
Speaker Change: I'm pleased to share that we are on track to achieve the expected expected savings from the realignment.
Speaker Change: Enforcing innovative history of financial execution.
We are very proud of the trends of consistently poor ranking cash burn that we we have delivered over the course of the year, while there are many.
While there may be continued lumpiness on a sequential basis on a fully year basis, we expect to see lower overhead burden.
Speaker Change: 2021.
Speaker Change: And then we saw in full year of 2023 looking.
Speaker Change: Looking into 2025 and beyond we remain confident in our ability to manage our expenses effectively and keep our burn down on an annualized basis.
Speaker Change: Gross margin continued to improve water over quarter going forward. We expect margin will continue to be lumpy as we ramp up the intervenes to platform a unit volumes group trade and energy revenues continue to vary from quarter to quarter.
Speaker Change: Now turning to the income statement revenues for Q3 were $4 $5 million compared to three four and $5 million in Q3 of 2023 and in line with our guidance range of three $5 million to $5 million.
Speaker Change: This represents another quarter in which we have delivered on the top line extending our record of strong revenue execution.
Speaker Change: Our operating expenses for Q3, 'twenty 'twenty four were $26 million a decrease of six 4% from pinpoint $8 million. In Q3 2023. This quarter's operating expenses included $4 $2 million of share based compensation compared to five.
Speaker Change: The Q3, 2023 research and development expenses for Q3, 'twenty 'twenty four were $19 7 million a decrease from $2 $7 million in Q3, 2023 quarters, R&D expenses, including $3 million of share based compensation.
Speaker Change: <unk> to $3 $1 million in Q3 2020.
Speaker Change: To conclude the third quarter represented another quarter of solid performance from both a revenue and cash perspective.
We're encouraged by the ongoing strength of our expense management and ability to consistently meet or exceed our revenue guidance.
Speaker Change: Looking into Q4, we expect a strong finish to the year, which we retain lower lower burn trial further ramping up.
Speaker Change: Working with <unk>.
Additional design win.
Speaker Change: With that I'll turn the call back tomorrow for a few closing remarks.
Adele: Thank you Adele.
Adele: Before I wrap up the call.
Adele: And open for Q&A I wanted to remind you all and generally we'll be back at CES in Las Vega, providing a closer look at our recent technological advances for the CF community and touching base with numerous customers and suppliers I hope to see some of you there.
Adele: In conclusion Q3 was another strong quarter for innovation in terms of revenue performance cost discipline advancing customer relationships and further developing our technology. We're happy we're happy to add two new OEM through our partnership with delivered Hall platform partner, who we are collab.
Adele: A rating where to bring our solutions to the market.
Adele: We're excited to see the first test vehicles on the road already in 2025 and look forward to the expected launch in 2026.
An increased number of OEM customers support our revenue growth in the short and long term through energy bookings samples and production unit sales. Meanwhile, continuing to build the momentum of securing additional new Oems.
Adele: We see this collaboration is potentially very valuable as we expect to continue to grow the partnership with traditional Oems, we hope to share more information on this by the end of the year.
I'll work with Volkswagen continues without delay, we're meeting deadlines and delivering high quality products to the program and we are optimistic about the opportunity to explain the real issue with this.
Adele: Keith.
Speaker Change: Across the board, we deepened our relationships with our customers and we believe that our next few wins within which our pipeline remains robust and we are working to further advance our RFID and our acuity.
Speaker Change: Heading into next year as.
Speaker Change: As we add additional programs, we expect to accelerate our revenue streams.
Speaker Change: And reinforce our record of strong top line performance.
Speaker Change: Our superior technology balance sheets, and favorable external market factors give us confidence we can achieve our goal to become the leading tier one automotive lateral supplier.
Speaker Change: And with that operator.
Please open the call for Q&A.
Speaker Change: Yes.
Speaker Change: Thank you.
Speaker Change: Wanted to ask a question. Please raise your hand, using your mobile or desktop application and wait period into Vietnam.
Speaker Change: Once again, please raise your hand, using your mobile or desktop application and wait for your name to be enough.
Speaker Change: Our first question today.
From the line of Graham Shepherd a camper. Please go ahead.
Okay.
Speaker Change: Hey, good morning. Good afternoon, everyone can you hear me, Okay, yes, yes, okay.
Speaker Change: 100 homes are going to see you both congratulations on the quarter and thanks for taking our questions.
Speaker Change: Omar I wanted maybe start you know obviously exciting news on the recently announced a level for commercial agreements.
Speaker Change: Understanding that you are not yet disclosing the declines names, but wondering if you could perhaps give us a bit more details on the agreement and maybe particularly what kind of volumes might you expect from these thank you yes sure. So the platform partner that we are working with currently has.
Speaker Change: Customer base of around five customers.
Speaker Change: Which are expected to deploy their vehicles in different regions.
Speaker Change: Between 2020 six onwards.
Speaker Change: Our the each program consists of our volumes.
Speaker Change: Volumes that are ranging between.
Speaker Change: Hi, tens of thousands of vehicles to a small figures of hundreds of thousands of weaker because of course multiplied that by the number of Litres, which is nine litres per vehicle.
Speaker Change: <unk> generates quite a meaningful revenue.
Speaker Change: Her customer.
Speaker Change: Okay.
Speaker Change: Perhaps maybe.
Speaker Change: Maybe as a follow up.
Speaker Change: Regarding your a 'twenty 'twenty four revenue guidance that you provided are wondering if you could maybe give us a bit more granularity there.
Specifically.
Speaker Change: How much of these revenues do you expect will come from Anna <unk> versus say product shipments or BMW, just any additional color there would be helpful. Thank you.
Speaker Change: Basically the fourth quarter or is there is a mix between revenues generated.
Speaker Change: By product sales to the BMW a.
Speaker Change: Launch vehicles.
Speaker Change: And there are energy components are related to programs we announced.
Speaker Change: During the year.
Speaker Change: Such as the short range, Oregon, we announced.
Speaker Change: Several months ago.
Speaker Change: So the three programs that we're supporting with Volkswagen.
Speaker Change: And.
Speaker Change: That we are.
Speaker Change: We just kicked off in.
Speaker Change: In terms of kind of the the mixed in terms of percentage of them I'm not sure.
Speaker Change: Want to borrow.
Speaker Change: Almost most of the revenues are an area at this point of time.
Speaker Change: Example, shipments and then Tampa together with a BMW.
Speaker Change: Revenue, obviously, the fact that we're now shipping nine litres per vehicles for this live smallpox.
You understand where there are multiple customers, which each one of them is required to bring up.
Speaker Change: Doesn't flip.
The multiples are expected to grow through that.
Speaker Change: Wonderful and maybe if I could just squeeze one last one.
Speaker Change: Just on a BMW.
Speaker Change: He didn't highlighted too much on the call today, but just you know what kind of volume should we expect or are you know is that going to be the.
Speaker Change: Our primary source of revenue for next year, just wondering if you could maybe give us an update on where that relationship stands and kind of how you see it.
Speaker Change: Play out through a 2025 thank you.
Speaker Change: Sure I mean during the first year of launch of the BMW, where we do not expect a high ramp.
Speaker Change: Next year, where we are expecting additional volume coming from the launch of BMW in China in terms of the volume we cannot disclose obviously BMW expectations.
Speaker Change: Our work with BMW continues also relates to future programs.
There is an R&D program working between up.
Speaker Change: Or kind of new development for new platforms.
Speaker Change: Great. Thank you so much and congrats again on the quarter I'll pass it on.
Ever.
Speaker Change: As a reminder, in order to ask a question. Please raise your hand consumer mobile and desktop application and wait for your name to the Enel.
Speaker Change: Our next question comes from the line of Mark Delaney of Goldman Sachs.
Speaker Change: Go ahead.
Speaker Change: Yes. Good afternoon, thanks, very much for taking my questions for the program with a top 10 OEM were you've passed the technical and production audits and are now in advanced legal discussions can you talk about what needs to be done to work out those are legal arrangements and are there other lighter providers being considered to your knowledge.
Speaker Change: And then if you do win this program when would the S. O P. B do you think you'd be standard fit and any sense of the volumes that were fully ramped up for that program.
Okay.
Obviously, there is a certain limit to what I can share on this specific program.
What I can say that this is a customer and that we were working with for quite a long time.
Speaker Change: I.
Speaker Change: My understanding is that we are.
No.
Speaker Change: Competing versus say another.
Speaker Change: Lidar or Lidar play area will either stay true.
Speaker Change: Additional tier one.
Speaker Change: In terms of volume, it's a it's a it's a top 10 OEM. So obviously the expected volumes are quite meaningful.
Speaker Change: In mid decade is probably the best I can offer in terms of vessel without disclosing.
Specific here at this point, we're still trying to be in the on the right on the right side of the customer.
Speaker Change: Understood. Thank you for the color you can share in an offering that goes goes well for you guys and my other question was around the financial profile of the company in particular, how youre thinking about the balance sheet and.
Speaker Change: Yeah, you as you mentioned you took down the cash burn Andrew do you think you can sustain those lower levels of cashes into next year.
Speaker Change: But what what applications for Shaw capital regime.
Andrew: Now, let me before as the vessel the weather question I actually skipped.
Andrew: You were asking about what's left to close.
Andrew: In the dialogue. So basically we are there are.
Andrew: Actually only like two legal points that were kind of negotiating on them.
Andrew: Hoping that will I believe we can close.
Andrew: So it's not there's nothing I think substantially.
Andrew: Understand.
Andrew: We met the technical requirements and Marshall.
Andrew: Build it very vinyl.
Andrew: Okay.
Andrew: On the financials over to the company's overall, obviously the.
Andrew: The new Oems with the expected revenues.
Andrew: So we are looking at for next year, adding to the NRO.
Andrew: We are.
Andrew: We are expecting locked by end of this year.
Andrew: Plus as you understand we do we look on the programs that we're competing on and our I would say optimistic.
The view we.
Andrew: We believe we'll be able to lengthen our.
Andrew: Financials, well into 2026, where we expect it varies.
Andrew: Growth of revenue coming from different programs that are launching this year.
Speaker Change: Maybe if I can add here you can see in every aspect we are doing better we are doing better.
Obviously in the <unk>.
Speaker Change: Cash burn, but we are doing also in the top line year over year, we're doing better.
Speaker Change: The gross margins, which you see.
Speaker Change: Moving.
Speaker Change: Two two positive already.
We are obviously really controlling our expenses.
Speaker Change: I believe we have a very nice.
Speaker Change: <unk> quantified that can generate a lot of revenue them a lot of opportunities that can converge.
Speaker Change: Positively hopeful hopefully so.
Speaker Change: We have the confidence that.
We have what it takes.
Speaker Change: Thank you I'll pass it on.
Speaker Change: Yes.
Speaker Change: Thank you.
Speaker Change: Thank you by the way and maybe I'll just add the other than that OEM. There are other Oems, we're competing with not a.
Speaker Change: A single opportunity on the on the table right now.
Speaker Change: We were only referring to them.
Two or three that were kind of some things that we're.
Speaker Change: We're excited about we're excited about other things as well.
Speaker Change: Not the one shot.
Speaker Change: Situations.
Speaker Change: Okay.
Speaker Change: Thank you. Our next question comes from the line of Josh <unk> with JP Morgan.
Speaker Change: Go ahead.
Speaker Change: Hi.
Speaker Change: Hi, Thanks for taking my questions and congratulations on the Tonio program.
Speaker Change: How should we think about the NRT revenue Fortunately proceedings start of production in 'twenty six.
Speaker Change: For the two new programs with the asphalt plat from partner and any early guardrails, you could share for revenue and gross profit trajectory into 2025.
Speaker Change: Thanks, and I have a follow up.
Speaker Change: Sure.
Speaker Change: Lee and our resolve pre production.
Speaker Change: And the revenue generation.
Speaker Change: Once say you rich ESOP.
Speaker Change: Meaningful portion of the revenues would come from sales of <unk>.
Speaker Change: Products.
Speaker Change: And before the before the production stops the revenues based on in arrears and sample.
Speaker Change: Phil.
Speaker Change: And as I said.
When we are now looking at the content per vehicle, which consists of the nine litres per vehicle.
Speaker Change: The.
Speaker Change: The multiples for Cigna.
Speaker Change: Significant.
Really when you're talking about a platform that is going to be.
Speaker Change: And that was adopted already by a few customers. So we believe that 2025 would be.
Speaker Change: Meaningful in that manner.
Speaker Change:
Speaker Change: Sure.
Speaker Change: Yeah.
Speaker Change: Yes.
Speaker Change: Just any early guidance around 2025 from a revenue or gross profit standpoint.
Speaker Change: I think it's we haven't yet finished the year before talking about guidance for next year.
Speaker Change: So what we're seeing is in a week.
This year was primarily revenue generation was taking from programs we locked.
Speaker Change: In 2023.
Speaker Change: This year, we were ending.
Speaker Change: We already have four more programs that were supporting.
Speaker Change: Additional to do ones that we had lost previously.
Speaker Change: And we expect to close more deals.
Speaker Change: In the short term long term.
Speaker Change: This will create aggregation of <unk>.
Speaker Change: New generation of revenues that will come on top and.
Speaker Change: 'twenty 'twenty six we expect several launches.
Speaker Change: That will contribute to significant growth in revenues I think this going.
This is kind of like Howard I would.
Speaker Change: I can offer at this time.
Speaker Change: Got it that's helpful color.
Speaker Change: And then just maybe switching gears to it from a technology standpoint, I'm curious if you could elaborate on D. N Lidar infrared imaging feature it seems like a very exciting a portion would be wondering what youre hearing from Oems on this feature and does this does the inclusion of the infrared camera help in any ways to approach any performance.
Speaker Change: Scott.
Scott: That might bear for light hours worth of traditional camera I'll see you tomorrow.
Scott: Gladly.
Scott: Okay.
Scott: And the ability to generate the camera within the same hub.
Scott: Hardware of the laser is very helpful in terms of synchronizing.
Scott: And the image to a lighter when you think about the platform generally you have a camera which sits in a different location.
Scott: And you need to apply many calibrations online collaborations and frame synchronization.
Scott: In order to allow our goods.
Scott: I would say correlation between the data that is generated by the different samples that takes a lot of the airport and many arrows in this process.
Scott: Being able to generate a perception software.
Scott: Which is lighter only lidar based only which can generate both a lighter image and an IR image whereby an unprecedented performance of it.
Scott: Both the perception.
Scott: Which you cannot achieve by using a letter along and we've talked in the past about having redundancy and separation of layers between camera Lidar and radar.
Scott: The fact that the latter is able to provide both image and lighter.
Scott: <unk> allows you to do low level fusion.
Scott: By the lighter itself.
Scott: And using it as a as a very strong primary central.
Speaker Change: Well definitely.
Speaker Change: Outperform the other sensors on on the vehicle, which is only based on <unk>.
Speaker Change: Camera perception, when you talk about the Standalone perception layer.
Speaker Change: For them. So the latter is going to be definitely a prominent.
Speaker Change: Prominence.
Speaker Change: I would say the NIM.
Speaker Change: Leading solution in the in the platform as we believed in the past.
Speaker Change: In terms of what it's capable to add.
Speaker Change: So the capabilities so you.
Speaker Change: You could actually see lights.
Speaker Change: From the same this is sunset lighters.
Speaker Change: Do you need that you'll be able to see in some cases.
Speaker Change: Thanks.
Speaker Change: They trust us.
Speaker Change: So when you go for it.
Speaker Change: Oh winters of the Golar winter.
Speaker Change: Correct.
Speaker Change: When the car can signal.
This is kind of an additional and stopping.
Light breaking lives of vehicles that is a feature of this oh, sorry, not available for later.
Speaker Change: <unk> only provided by the camera and without redundancies. So the fact that the.
Speaker Change: The latter can potentially provide those.
And values and these features.
Very helpful in order to kind of do the low level fusion between camera and <unk>.
Speaker Change: And the lighter.
Speaker Change:
Other than that.
Yeah.
Speaker Change: It is helpful.
Speaker Change: In cases, where you have low confidence in the camera due to shadow casting, which you can confirm form the IR image taking form the lighter in terms of the low level Tula.
Speaker Change: And actually that there's more and theyre really more features.
Speaker Change: That I think will overall.
Speaker Change: Become very important to the customer we already started to.
Speaker Change: Soy to a few customers who were very excited about it.
Speaker Change: So yeah, I I definitely see high value.
Through this new feature.
Speaker Change: That's very interesting thanks for taking my questions and good luck.
Speaker Change: Thank you.
Speaker Change: We have no further questions. Please proceed.
Speaker Change: Okay.
Thank you very much for joining our earnings call.
Speaker Change: We are.
Speaker Change: Always happy to be here and reflect to you the progress that we're making.
Speaker Change: I hope to share more common.
Speaker Change: Coming months.
Speaker Change: Hoping to see U S C F.
Speaker Change: And the right to see the progress we're making thank you very much.
Speaker Change: Okay.
Speaker Change: Goodbye.