Q4 2024 Blaize Holdings Inc Earnings Call
Operator: Good day and thank you for standing by.
Operator: Good day, and thank you for standing by. Welcome to the Blaize Fiscal Year 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. Please be advised that today's conference is being recorded. After the speaker's presentation, there will be a question-and-answer session. To ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. I would now like to hand the conference over to your speaker today, Lana Adair, Investor Relations.
Good day and thank you for standing by welcome to the blades fiscal year 2024 earnings Conference call. At this time all participants are in a listen only mode. Please be advised that today's conference is being recorded after the speaker's presentation there'll be a question and answer session to ask a question.
Operator: Welcome to the Blaze Fiscal Year 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. Please be advised that today's conference is being recorded.
Operator: After the speaker's presentation, there will be a question and answer session. To ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again.
Lani: Please press star one on your telephone and wait for your name to be announced to withdraw. Your question. Please press star one again I would not like to hand, the conference over to your speaker today Lani.
Lana Adair: I would now like to hand the conference over to your speaker today, Lana Adair, Investor Relations. Thank you and good afternoon. I am Lana Adair, Investor Relations for Blaze.
Speaker Change: Dear Investor Relations.
Lana Adair: Thank you and good afternoon. I am Lana Adair, Investor Relations for Blaize. Before we begin the prepared remarks, we would like to remind you that earlier today, Blaize issued a press release announcing its full year 2024 results. An investor presentation was published and is available on the investor relations section of Blaize's website. Today's earnings call and press release reflect management's views as of today only, and we will include statements related to our competitive position, anticipated industry trends, business and strategic priorities, our financial outlook for Q1 2025, and full year fiscal year 2025, all which constitute forward-looking statements under the federal securities laws. Actual results may differ materially from those contained in or implied by these forward-looking statements due to risks and uncertainties associated with the business.
Adair: Thank you and good afternoon, I am an Adair that's relationship plays before we begin our prepared remarks, we'd like to remind you that earlier today <unk> issued a press release announcing its full year 2024 result.
Lana Adair: Before we begin the prepared remarks, we would like to remind you that earlier today, Blaze issued a press release announcing its full year 2024 results. An investor presentation was published and is available on the Investor Relations section of Blaze's website.
Adair: An investor presentation was published and is available on the Investor Relations section of places website.
Lana Adair: Today's earnings call and press release reflect management's views as of today only and will include statements related to our competitive position, anticipated industry trends, business and strategic priorities, our financial outlook for the first quarter of 2025 and full year fiscal year 2025, all which constitute forward-looking statements under the federal securities law. Actual results may differ materially from those contained in or implied by these forward-looking statements due to risks and uncertainties associated with the business.
Adair: Today's earning call and press release reflect management's views as of today only and will include statements related to our competitive position anticipated industry trend.
Adair: Our strategic priorities, our financial outlook for the first quarter of 2025 and full year fiscal year 2025, all which constitute forward looking statements under the federal Securities laws.
Adair: Actual results may differ materially from those contained in or implied by these forward looking statements due to risks and uncertainties associated with the business.
Lana Adair: For a discussion of the material risks and other important factors that could impact actual results, please refer to the company's SEC filings and today's press release, both of which are found on the Investor Relations website. Any forward-looking statements that we make on this call are based on assumptions as of today and other than those that may be required by law, we undertake no obligation to up these statements as a result of new information or future events.
Lana Adair: For a discussion of the material risks and other important factors that could impact actual results, please refer to the company's SEC filings and today's press release, both of which are found on the investor relations website. Any forward-looking statements that we make on this call are based on assumptions as of today, and other than those that may be required by law, we undertake no obligation to up these statements as a result of new information or future events. Information discussed on this call concerning Blaize's industry, competitive position, and the markets in which it operates is based on information from independent industry and research organizations, other third-party sources, and management's estimates. These estimates are derived from publicly available information released by independent industry analysts and other third-party sources, as well as data from Blaize's internal research.
Adair: For a discussion of the material risks and other important factors that could impact actual results. Please refer to the company's SEC filings and today's press release, both of which are found on the Investor Relations website.
Adair: Any forward looking statements that we make on this call are based on assumptions as of today and other than those that may be required by law. We undertake no obligation to up these statements as a result of new information or future events.
Lana Adair: Information discussed on this call concerning Blaze's industry, competitive position, and the markets in which it operates is based on information from independent industry and research organizations, other third-party sources, and managements at 1 These estimates are derived from publicly available information released by independent industry analysts and other third-party sources, as well as data from Blaze's internal research. These estimates are based on reasonable assumptions and computations made upon reviewing such data and Blaze's experience in and knowledge of such industry and markets. By definition, assumptions are subject to uncertainty and risk, which would cause results to differ materially from those expressed in estimates.
Adair: Information discussed on this call concerning Blazers industry competitive position and the markets in which it operates is based on information from independent industry and research organizations.
Adair: Other third party sources and management's estimates.
Adair: These estimates are derived from publicly available information released by independent industry analysts and other third party sources as well as data from places internal research.
Lana Adair: These estimates are based on reasonable assumptions and computations made upon reviewing such data and Blaize's experience in, and knowledge of, such industry and markets. By definition, assumptions are subject to uncertainty and risk, which could cause results to differ materially from those expressed in estimates. During this call, we will discuss certain non-GAAP financial measures. These non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, measures prepared in accordance with GAAP. For a reconciliation of non-GAAP financial measures discussed during this call to the most directly comparable GAAP measures, please refer to today's press release. Now, I'd like to turn the call over to Blaize's Chairman of the Board, Lane Bess, to say a few opening remarks.
Adair: Estimates are based on reasonable assumptions and computation made upon reviewing such data and blazers experiences and knowledge of such industry end markets.
Adair: By definition assumptions are subject to uncertainties and risks, which could cause results to differ materially from those expressed in estimates. During this call. We will discuss certain non-GAAP financial measures. These non-GAAP financial measures should be considered as a supplement to and not as a substitute for measures prepared in accordance.
Lana Adair: During this call, we will discuss certain non-GAAP financial measures. These non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, measures prepared in accordance with GAAP. For a reconciliation of non-GAAP financial measures discussed during this call to the most directly comparable GAAP measures, please refer to today's press release.
Adair: With gap for a reconciliation.
Adair: Filiation of non-GAAP financial measures discussed during this call to the most directly comparable GAAP measures. Please refer to today's press release now I'd like to turn the call over to Blaise as chairman of the Board Lane Beth to say a few opening remarks.
Lane Best: Now I'd like to turn the call over to Blaize's Chairman of the Board, Lane Best, to say a few opening remarks. Hi, my name is Lane Bass and I'm the chair. I've always enjoyed being involved. Technology Forward. And I've been fortunate enough to have some great success working with several high-growth technology. that successfully built enormous moats in critical technology areas. I feel Blaze has all the necessary pieces to build a valuable and sustainable company in the enormous and rapidly growing AI edge space. The AI that I saw when I first met Dynacar and the founding team was something that I believed was going to be equally as disruptive as other companies I've been involved with.
Lane Bess: Hi, my name is Lane Bess, and I'm the Chairman of Blaize. I've always enjoyed being involved with exciting technology-forward companies, and I've been fortunate enough to have some great success working with several high-growth technology companies that successfully built enormous moats in critical technology areas. I feel Blaize has all the necessary pieces to build a valuable and sustainable company in the enormous and rapidly growing AI edge space. The AI that I saw when I first met Dinakar and the founding team was something that I believed was going to be equally as disruptive as other companies I've been involved with. Particularly what intrigued me about Blaize was not only the advancement they had made in terms of the chip and silicon architecture, but also the software they developed that runs on top of the chip.
Adair: Hi, My name is lane bass and I'm the chairman of plays.
Adair: I've always enjoyed being involved with exciting technology forward companies and I've been fortunate enough to have some great success working with several high growth technology companies that successfully built enormous most critical technology areas.
Adair: I feel blazers, all the necessary pieces to build a valuable and sustainable company and the enormous and rapidly growing space.
Adair: The AI that I saw when I first met in a car and the founding team with something that I believe was going to be equally as disruptive as other companies I've been involved with.
Lane Best: Particularly what intrigued me about Blaze was not only the advancement they had made in terms of the chip and silicon arch but also the software they develop that runs on top of it. To me, this was taking AI to the edge in a compelling way. If you explore what we've seen, particularly in the data centers. These are very heavy LLM processing data center solutions and NVIDIA will probably dominate for a long time. others like Cerberus, will probably take pieces of the mark. But the area of edge AI computing, this is where we believe we're going to see a lot of innovation.
Adair: Particularly what intrigued me about ladies was not only the advancements made in terms of the chip and Silicon architecture, but also the software they develop that runs on top of the chip to me. This was taking AI to the edge in a compelling way.
Lane Bess: To me, this was taking AI to the edge in a compelling way. If you explore what we've seen, particularly in the data center industry, these are very heavy LLM processing data center solutions. NVIDIA will probably dominate for a long time in this space. Others, like Cerebras, will probably take pieces of the market. The area of edge AI computing, this is where we believe we're going to see a lot of innovation. The team at Blaize understands that the market for AI at the edge is expected to be every bit as large, if not larger, than what we see in the data center industry. The solutions are going to take a unique design, which we believe Blaize can deliver.
Adair: If you explore what we've seen particularly in the data center industry. These are very heavy LLM processing data Center solutions, and then video will probably dominate for a long time in the space others like Cerberus will probably take pieces of the market.
Adair: But the area of edge AI computing. This is where we believe we're going to see a lot of innovation.
Lane Best: The team at Blaze understands that the market for AI at the edge is expected to be every bit as large, if not larger, than what we see in the data center industry. and the solutions are going to take a unique design, which we believe Blaze can deliver. We believe there are going to be many use cases for Blaze's technology offerings as we go forward, including, but not least...
Adair: The team at Blaze understands that the market for AI at the edge is expected to be every bit as large if not larger than what we see in the data center industry.
Adair: And the solutions are going to take a unique design, which we believe plays can deliver we.
Lane Bess: We believe there are going to be many use cases for Blaize's technology offerings as we go forward, including, but not limited to, smart city and defense systems. As was in the case with NVIDIA, their growth began with gaming and later surged with OpenAI and generative AI, expanding their market share and adoption. We believe there is a similar and perhaps even more rapid demand trajectory here due to AI demand in semiconductors. Being in the public markets allows us to capitalize on this momentum and unlock the full potential of our expansion opportunities. Now I'll turn it over to Dinakar, who will get deeper into the technology and Blaize's opportunities as a public company.
Adair: We believe theyre going to be many use cases for Blazers technology offerings as we go forward, including but not limited to smart city in defense systems.
Lane Best: Smart City and Defense System. As was in the case with NVIDIA, their growth began with gaming and later surged with open AI and generative computing. Expanding Their Market Share in a We believe there is a similar and perhaps even more rapid demand trajectories here due to AI demand and semiconductors. Being in the public markets allows us to capitalize on this momentum and unlock the full potential of our expansion.
Adair: As was in the case with Nvidia their growth began with gaming and later surged with open AI in January they are expanding their market share and adoption.
Adair: We believe there is a similar and perhaps even more rapid demand trajectory here due to AI demands in semiconductors.
Adair: Being in the public markets allows us to capitalize on this momentum and unlock the full potential of our expansion opportunities in <unk>.
Dinakar Munugala: And now I'll turn it over to Dinakar, who will get deeper into the technology and blaze this opportunity.
Adair: Now I'll turn it over to Dana card, who will get deeper into the technology and Blaze this opportunity as a public company.
Dinakar Munugala: Good afternoon, everyone, and thank you for joining us for Blaze's Fiscal Year 2024 Earnings Call. I'm Dinakar Munugala, CEO of Blaze. After my remarks, our CFO, Harminder Semi, will walk you through our fiscal year 2024 financial results and provide guidance for 2025.
Dinakar Munagala: Good afternoon, everyone. Thank you for joining us for Blaize's fiscal year 2024 earnings call. I'm Dinakar Munagala, CEO of Blaize. After my remarks, our CFO, Harminder Sehmi, will walk you through our fiscal year 2024 financial results and provide guidance for 2025. We will open it up for questions. Before we get into the numbers, I want to highlight several important developments from our Q4 and leading up to the closing of our business combination on 13 January. During this period, we finalized the necessary filings to enter the public markets while continuing to grow our commercial pipeline, advance our software roadmap, and expand our team with key hires to support long-term execution. We saw continued growth across our pipeline with several high-priority opportunities anticipated to deliver revenue in H2 2025.
Dana Card: Good afternoon, everyone and thank you for joining us for Blazers fiscal year 2024 earnings call.
Speaker Change: And then I could one last CEO of place.
Speaker Change: After my remarks, our CFO Herman the semi will walk you through our fiscal year 'twenty pretty forward financial results and provide guidance for 2025 than.
Dinakar Munugala: Then we will open it up for questions.
Speaker Change: Then we will open it up for questions.
Dinakar Munugala: Before we get into the numbers, I want to highlight several important developments from our fourth quarter and leading up to the closing of our business combination on January 13. During this period, we finalized the necessary filings to enter the public markets, while continuing to grow our commercial pipeline, advance the software roadmap, and expand our team with key hires to support long-term execution. We saw continued growth across our pipeline with several high-priority opportunities anticipated to deliver revenue in the second half of 2025. We also secured new design events, advanced testing on core solutions, and received early customer validation across key verticals.
Before we get into the numbers I want to highlight several important developments from our fourth quarter and leading up to the closing of a business combination on January 13th.
Speaker Change: During this period, we finalized the necessary filings to enter the public markets, while continuing to grow our commercial pipeline at.
Speaker Change: Once a tougher road map and expand our team with key hires to support long term execution.
Speaker Change: We saw continued growth across our pipeline with several high priority opportunities anticipated to deliver revenue in the second half of 2025.
Dinakar Munagala: We also secured new design wins, advanced testing on core solutions, and received early customer validation across key verticals. During 2024 and continuing into the early part of this year, we formalized partnerships with KAIST, alwaysAI, VSBLTY, and Turbo Federal. These relationships represent meaningful opportunities in both commercial and public sector markets, supporting near-term revenue visibility and laying the groundwork for scaled deployment in the future years. As we enter 2025, we have a strong pipeline coverage, aligned execution across our sales and product development teams, and increasing demand in markets such as manufacturing, public safety, healthcare, defense, and smart infrastructure. Our go-to-market strategy remains focused. Our roadmap is progressing on schedule, and engagement with customers and partners continues to deepen. Blaize is entering the year with confidence, operational focus, and increasing demand across a market that is rapidly shifting towards physical AI solutions.
Speaker Change: We also secured new design wins.
Speaker Change: Once distinct on core solutions.
Speaker Change: And received early customer validation across key verticals.
Dinakar Munugala: During 2024 and continuing into the early part of this year, we formalized partnerships with KAIST, Always AI, Visibility, and TurboFederal. These relationships represent meaningful opportunities in both commercial and public sector markets. Supporting near-term revenue visibility and laying the groundwork for scaled deployment in the future years. As we enter 2025, we have a strong pipeline coverage, aligned execution across our sales and product development teams, and increasing demand in markets such as manufacturing, public safety, healthcare, defense, and smart infrastructure. Our go-to-market strategy remains focused. Our roadmap is progressing on schedule, and engagement with customers and partners continues to deepen.
Speaker Change: During 'twenty 'twenty, four and continuing into the early part of this year, we formalized partnerships with Christ always.
Visibility and turbo.
Speaker Change: These relationships represent meaningful opportunities in both commercial and public sector markets.
Speaker Change: Supporting near term revenue visibility.
Speaker Change: And laying the groundwork for scale deployment in the future yes.
Speaker Change: Yeah.
Speaker Change: As we enter 2025.
Speaker Change: We have a strong pipeline coverage aligned execution across our sales and product development teams.
Speaker Change: And increasing demand in markets, such as manufacturing public safety healthcare defense and smart infrastructure.
Speaker Change: Our go to market strategy remains focused.
Speaker Change: Our roadmap is progressing on schedule.
Speaker Change: And engagement with customers and partners continues to deepen.
Dinakar Munugala: Blaze is entering the year with confidence, operational focus, and increasing demand across the market that is rapidly shifting towards physical AI solutions.
Speaker Change: Blazers entering the year with confidence operational focus and increasing demand.
Speaker Change: Cross a market that is rapidly shifting towards physical AI solutions.
Dinakar Munugala: Technology moves in waves and AI is now entering its next evolution. Just as Intel and Apple helped shift computing from mainframes to personal devices, AI is now moving from the cloud to the edge. where data is created and decisions need to happen in real time. This is where Blaze excels. We deliver low-power, real-time intelligence at the edge where decisions happen, complementing cloud and GPU-based AI in environments where efficiency and responsiveness matter most. We call it Physical AI. AI that works in the real world, not just the data center. We believe Blaze is helping to define the next era of infrastructure for AI.
Dinakar Munagala: Technology moves in waves. AI is now entering its next evolution. Just as Intel and Apple helped shift computing from mainframes to personal devices, AI is now moving from the cloud to the edge, where data is created and decisions need to happen in real-time. This is where Blaize excels. We deliver low-power, real-time intelligence at the edge where decisions happen, complementing cloud and GPU-based AI in environments where efficiency and responsiveness matter most. We call it physical AI. AI that works in the real world, not just the data center. We believe Blaize is helping to define the next era of infrastructure for AI. In recent weeks, innovations like DeepSeek and Qwen have reinforced that disruption remains a constant in AI. These advancements are lowering the compute requirements for deployment, enabling AI to run on smaller, more power-efficient devices.
Speaker Change: Technology moves in beef and AI is now entering its next evolution.
Speaker Change: Just as Intel and Apple helped shift computing from mainframes to personal devices.
Speaker Change: Now moving from the cloud to the edge.
Speaker Change: Where data is created and decisions need to happen in real time.
Speaker Change: This is where it plays out.
Speaker Change: We delivered low power real time intelligence at the edge, where decisions happen complementing cloud and GPU based in environments, where efficiency and responsiveness matter most.
Speaker Change: We call it physical AI.
Speaker Change: That works in the real World not just the data center.
Speaker Change: We believe places helping to define the next era of infrastructure for AI.
Dinakar Munugala: In recent weeks, innovations like DeepSeek and Quen have reinforced that disruption remains a constant in AI. These advancements are lowering the compute requirements for deployment, enabling AI to run on smaller, more power-efficient devices. As models continue to shrink, the reach of AI is expanding into broader markets. Blazor's programmable architecture is well positioned to take advantage of this trend.
Speaker Change: In recent weeks innovations like deep seek and Quinn have reinforced that disruption remains a constant in this.
Speaker Change: These advancements are lowering the compute requirements for deployment, enabling AI to run on smaller more power efficient devices.
Dinakar Munagala: As models continue to shrink, the reach of AI is expanding into broader markets. Blaize's programmable architecture is well-positioned to take advantage of this trend. While cloud AI has seen remarkable adoption, there's still a critical gap in the market: the need for AI at the physical edge. In mission-critical settings on factory floors, inside hospitals, and across defense operations, latency, bandwidth constraints, and reliance on the cloud are simply not acceptable. These environments demand real-time decision-making, on-site processing, and solutions that are both scalable and cost-effective. Looking ahead, we are focused on a serviceable addressable market that we estimate will grow to $71.3 billion globally by 2028. This figure reflects increasing demand for edge-deployed AI across industries where latency, power efficiency, and real-time processing are essential. We're seeing strong demand across industries for AI that operates closer to the point of action.
Speaker Change: As models continue to shrink the reach of AI is expanding into broader markets.
Speaker Change: Blazers programmable architecture is well positioned to take advantage of the strength.
Dinakar Munugala: While cloud AI has seen remarkable adoption, there's still a critical gap in the market. The Need for AI at the Physical Edge. In mission-critical settings, on factory floors, inside hospitals, and across defense operations, Latency, bandwidth constraints, and reliance on the cloud are simply not acceptable. These environments. Demand real-time decision-making, on-site processing, and solutions that are both scalable and cost-effective.
Speaker Change: While cloudy I have.
Speaker Change: <unk> has seen remarkable adoption there is still a critical gap in the market.
Speaker Change: The need for AI at the physical edge.
Speaker Change: In mission critical settings on factory floors inside hospitals and across defense operations.
Speaker Change: Latency bandwidth constraints and reliance on the cloud is simply not acceptable.
Speaker Change: These environments.
Speaker Change: Demand real time decision, making onsite processing and solutions that are both scalable and cost effective.
Dinakar Munugala: Looking ahead, we are focused on a serviceable, addressable market that we estimate will grow to $71.3 billion globally by 2028. This figure reflects increasing demand for edge-deployed AI across industries where latency, power efficiency, and real-time processing are essential. We're seeing strong demand across industries for AI that operates closer to the point of action. In manufacturing, companies need real-time defect detection and automation right on the production line, not delayed by cloud processing. In healthcare, hospitals are deploying AI-assisted diagnostics on-site to ensure both patient privacy and faster clinical decisions. In defense and security, AI must run locally, where the cloud access is often limited or entirely unavailable.
Speaker Change: Looking ahead, we are focused on our serviceable addressable market that we estimate will grow to $71 3 billion.
Speaker Change: Globally by 2028.
Speaker Change: This figure reflects increasing demand for edge deployed AI.
Speaker Change: Ross industries, where latency power efficiency and real time processing at essential.
Speaker Change: We're seeing strong demand across industries for AI that operate closer to the point of action.
Dinakar Munagala: In manufacturing, companies need real-time defect detection and automation right on the production line, not delayed by cloud processing. In healthcare, hospitals are deploying AI-assisted diagnostics on-site to ensure both patient privacy and faster clinical decisions. In defense and security, AI must run locally, where the cloud access is often limited or entirely unavailable. Further, in retail and smart cities, physical AI can enable license plate recognition, logistics automation, and surveillance without the latency or cost of sending data to the cloud. The message from our customers is clear. They need AI where they operate, not where the cloud providers dictate. We believe Blaize can enable and address this modern shift today. For years, the AI infrastructure stack has been too rigid, too centralized, and too expensive. The market is asking for something different.
Speaker Change: In manufacturing companies need real time defect detection and automation right on the production line not delayed by cloud processing.
Speaker Change: In healthcare hospitals are deploying AI to diagnostics onsite to ensure book patient privacy and faster clinical decisions.
Speaker Change: In defense and security I must run locally where the cloud access is often limited are entirely unavailable.
Dinakar Munugala: Further, in retail and smart cities, physical AI can enable license plate recognition, logistics automation, and surveillance without the latency or cost of sending data to the cloud. The message from our customers is clear. They need AI where they operate. not where the cloud providers dictate.
Speaker Change: Further in retail and smart cities physical AI can enable license plate recognition logistics automation and surveillance without the latency or cost of sending data to the cloud.
Speaker Change: The message from our customers is clear.
Speaker Change: They need where they operate.
Speaker Change: Not by the cloud providers dictate.
Dinakar Munugala: We believe Blaze can enable and address this modern shift today. For years, the AI infrastructure stack has been too rigid, too centralized, and too expensive. The market is asking for something different. Across multiple sectors, we hear the same message that customers and partners want more choice, more flexibility, and more tailored solutions. They want AI that fits their needs and not a one-size-fits-all approach. They need technology that integrates into their existing infrastructure without the cost and complexity of a full replacement. And they're looking for alternatives that support AI at the edge, not just in the cloud.
Speaker Change: We believe <unk> can enable and address this modern ship today.
Speaker Change: For years, the AI infrastructure stack has been two digit to centralized and too expensive.
Speaker Change: The market is asking for something different.
Dinakar Munagala: Across multiple sectors, we hear the same message that customers and partners want more choice, more flexibility, and more tailored solutions. They want AI that fits their needs and not a one-size-fits-all approach. They need technology that integrates into their existing infrastructure without the cost and complexity of a full replacement. They're looking for alternatives that support AI at the edge, not just in the cloud. Blaize is not here to replace GPUs or the cloud AI. We're here to extend and complement what exists. GPUs are a great fit for training and data center workloads. In physical environments where power, cost, and responsiveness matter, Blaize offers a more efficient solution. In many deployments, Blaize and GPUs work side by side. We're collaborating with manufacturers, system integrators, ISVs, and AI developers to build a more modular, adaptable AI ecosystem.
Speaker Change: Across multiple sectors, we hear the same message that customers and partners want more choice more flexibility and more tailored solutions.
Speaker Change: They want AI that fits their needs and not a one size fits all approach.
Speaker Change: They need technology that integrates into their existing infrastructure without the cost and complexity of a full replacement.
Speaker Change: And they are looking for alternatives that support AI at the edge not just in the club.
Dinakar Munugala: Blaze is not here to replace GPUs or the cloud AI. We're here to extend and complement what exists. GPUs are a great fit for training and data center workloads. But in physical environments where power, cost, and responsiveness matter, Blaze offers a more efficient solution. And in many deployments, Blaze and GPUs work side by side. We're collaborating with manufacturers, system integrators, ISVs, and AI developers to build a more modular, adaptable AI ecosystem.
Speaker Change: Lasers, not here to replace Gpus at the cloud AI, we here to extend and complement what exists GP.
Speaker Change: Gpus are a great fit for training and data center workloads, but in physical environments, where power cost and responsiveness meta blaze offers a more efficient solution.
Speaker Change: And in many deployments blazer Gpus work side by side.
Speaker Change: We're collaborating with manufacturers system integrators, Isps and AI developers to build a more modular adaptable AI ecosystem.
Dinakar Munugala: The market is clearly signaling the need for more options and Blaze is well positioned to meet that demand.
Dinakar Munagala: The market is clearly signaling the need for more options, and Blaize is well-positioned to meet that demand. Our research and development is focused on three priorities: low latency, power efficiency, and real-world deployment. Our Graph Streaming Processor enables real-time inference at the edge with significantly lower power than traditional GPUs without relying on constant cloud access. We believe we offer strong ROI by developing more AI per watt and per dollar while reducing energy use and cloud costs. Our end-to-end platform is built for practical deployment, not just lab benchmarks. Blaize complements existing infrastructure by bringing efficient, scalable AI to the edge. Blaize is a pure-play AI company purpose-built for the intersection of AI, edge computing, and real-world infrastructure. As AI demand moves beyond the cloud, we're leading the shift to physical AI, where intelligence is deployed on-site, and where latency, power, and cost matter.
Speaker Change: The market is clearly signaling the need for more options and blades is well positioned to meet that demand.
Dinakar Munugala: Our research and development is focused on three priorities. low latency, power efficiency, and real-world deployment. Our Graph Streaming Processor enables real-time inference at the edge with significantly lower power than traditional GPUs without relying on constant cloud access. We believe we offer strong ROI by developing more AI per watt and per dollar while reducing energy use and cloud costs. Our end-to-end platform is built for practical deployment, not just lab benchmarks. Blaze complements existing infrastructure by bringing efficient, scalable AI to the edge. Blaze is a pure-play AI company purpose-built for the intersection of AI, edge computing, and real-world infrastructure.
Speaker Change: Okay.
Speaker Change: Our research and development is focused on three priorities.
Speaker Change: Low latency power efficiency and real world deployment.
Speaker Change: Our graph streaming processor enables real time inference at the edge with significantly lower power than traditional gpus without relying on constant cloud access.
Speaker Change: We believe we offer a strong ROI by developing more AI per watt and per dollar, while reducing energy use and cloud costs.
Speaker Change: Our end to end platform is built for practical deployment not just loved benchmarks.
Speaker Change: Blaise complements existing infrastructure by bringing efficient scalable AI to the edge.
Speaker Change: Blaise as a pure play AI company purpose built for the intersection of AI edge computing and real world infrastructure.
Dinakar Munugala: As AI demand moves beyond the cloud, we're leading the shift to physical AI, where intelligence is deployed on site, and where latency, power, and cost matter. Our platform delivers scalable, power-efficient performance at the edge, complementing cloud and GPU solutions by extending AI into environments where real-time local processing is essential.
Speaker Change: As AI demand moves beyond the cloud.
Speaker Change: We are leading the shift to physical AI.
Speaker Change: Intelligence is deployed on site.
Speaker Change: And with latency power and cost matter.
Dinakar Munagala: Our platform delivers scalable, power-efficient performance at the edge, complementing cloud and GPU solutions by extending AI into environments where real-time local processing is essential. This is where Blaize stands apart and where we're building long-term differentiation. AI is moving beyond the cloud, and Blaize is prepared to help lead the transition by bringing intelligence closer to where data is generated and decisions are made. We're focused on a clear opportunity, delivering efficient, flexible AI at the edge to meet real-world customer needs. Our platform stands out by providing performance where it matters most, close to the data, in real time, and under real-world constraints. We're executing against our roadmap, scaling with discipline, and making steady progress. Thank you to our customers, partners, and stakeholders for your continued support.
Speaker Change: Our platform delivered scalable power efficient performance at the edge complementing cloud GPU solutions by extending into environments, where real time local processing is essential.
Dinakar Munugala: This is where Blaze stands apart. and where we're building long-term referentiation. AI is moving beyond the cloud and Blaze is prepared to help lead the transition by bringing intelligence closer to where data is generated and decisions are made. We're focused on a clear opportunity, delivering efficient, flexible AI at the edge to meet real-world customer needs. Our platform stands out by providing performance where it matters most, close to the data, in real-time, and under real-world constraints.
Speaker Change: This is where <unk> stands apart.
Speaker Change: And where we are building long term differentiation.
Speaker Change: AI is moving beyond the cloud and Blazers prepared to help lead the transition by bringing intelligence closer to where data is generated and decisions are made.
Speaker Change: We are focused on a clear opportunity delivering efficient flexible AI at the edge to meet real world customer needs.
Speaker Change: Our platform stands out by providing performance where it matters most close to the data in real time and under real world constraints.
Dinakar Munugala: We're executing against a roadmap, scaling with discipline, and making steady progress.
Speaker Change: We're executing against our road map scaling with discipline and making steady progress.
Dinakar Munugala: Thank you to our customers, partners, and stakeholders for your continued support. We are early in our journey and I'm hopeful that the narrative that I have shared with you helps you understand the opportunity in this market and the capabilities Blaze can offer in the Edge AI market. We look forward to sharing our growth as a public company.
Speaker Change: Thank you to our customers partners and stakeholders for your continued support.
Dinakar Munagala: We are early in our journey, and I'm hopeful that the narrative that I have shared with you helps you understand the opportunity in this market and the capabilities Blaize can offer in the edge AI market. We look forward to sharing our growth as a public company and momentum in the quarters ahead. Now I'd like to hand over the call to our CFO, Harminder Sehmi.
Speaker Change: We are early in our journey and I'm hopeful that the narrative that I have shared with you helps you understand the opportunity in this market and the capabilities <unk> can offer and the edge AI market.
Speaker Change: We look forward to sharing our growth as a public company.
Dinakar Munugala: and Momentum in the Quarters Ahead.
Harminder Semi: Now I'd like to hand over the call to our CFO, Harbinder Semi. Thank you Dineker and good afternoon everyone. My name is Hamed El-Semi and I'm the Chief Financial Officer of Blade.
Speaker Change: Momentum in the quarters ahead now.
Speaker Change: Now I'd like to handle the call to our CFO had been the semi.
Harminder Sehmi: Thank you, Dinakar, and good afternoon, everyone. My name is Harminder Sehmi, and I am the Chief Financial Officer of Blaize. Before we begin, I'd like to reiterate that today's discussion will include forward-looking statements. Please refer to our earnings release and SEC filings for additional information. Our business combination with BurTech Acquisition Corp. closed on 13 January of this year. My focus in this earnings call will be on our fiscal year 2024 results, ending 31 December. I will also provide guidance on Q1 2025 and full fiscal year 2025. 2024 was a pivotal year for Blaize as we developed partnerships with selected hardware manufacturers and ISVs and established a revenue pipeline, which is expected to start converting at scale in H2 of this fiscal year. Let's start with revenue for fiscal 2024.
Hum: Thank you Dennis and good afternoon, everyone. My name is Hum in the semi and I'm, the Chief financial officer of place before.
Harminder Semi: Before we begin, I'd like to reiterate that today's discussion will include forward-looking statements. Please refer to our earnings release and SEC filings for additional information.
Hum: Before we begin I'd like to reiterate that todays discussion will include forward looking statements. Please refer to our earnings release and SEC filings for additional information.
Harminder Semi: Our business combination with BIRTEC acquisition call closed on January 13 of this year. So my focus in this earnings call will be on our fiscal year 2024 results ending December 31. I will also provide guidance on the first quarter of 2025 and full fiscal year 2025. 2024 was a pivotal year for Blaze as we developed partnerships with selected hardware manufacturers and independent software vendors and established a revenue pipeline which is expected to start converting at scale in the second half of this fiscal year.
Hum: Our business combination with <unk> acquisition Corp closed on January 13 of this year. So my focus in this earnings call will be on our fiscal year 2024 results ending December 31.
Hum: I will also provide guidance for the first quarter of 2025 and full fiscal year 2025.
Hum: 2024, it was a pivotal year for place as we develop partnerships with selected hardware manufacturers and independent software vendors.
Hum: And established a revenue pipeline, which is expected to start converting at scale in the second half of this fiscal year.
Harminder Semi: Let's start with Revenue for Fiscal 2024. Revenue was $1.6 million compared to $3.9 million in the prior year. In both years, the revenues primarily reflected the recognition of strategic consulting fees. These were received from a major European automotive OEM as part of a multi-year and multi-vendor program aimed at developing an advanced L4 autonomous driving platform for the OEM. Phase one was largely completed during 2024.
Hum: Let's start with revenue for fiscal 2024.
Harminder Sehmi: Revenue was $1.6 million, compared to $3.9 million in the prior year. In both years, the revenues primarily reflected the recognition of strategic consulting fees. These were received from a major European automotive OEM as part of a multi-year and multi-vendor program aimed at developing an advanced L4 autonomous driving platform for the OEM. phase I was largely completed during 2024. Revenues from automotive are several years away, given the design and manufacturing lead times associated with autonomous vehicles. adjusted gross margin for 2023 and 2024 includes an allocation of direct labor costs in connection with the strategic consulting program and adjustments for inventory cost realignment. I will discuss our future adjusted gross margin trends shortly. Now to our operating expenses. Selling, general, and administrative expenses for fiscal 2024, excluding depreciation and amortization, were $22.4 million, an increase of $5.1 million over fiscal 2023.
Hum: Revenue was $1 6 million compared to $3 $9 million in the prior year.
In both years the revenues primarily reflected the recognition of strategic consulting fees. These were received from a major European automotive OEM as part of a multi year and multi vendor program.
Hum: Aimed at developing an advanced L for autonomous driving platform for the OEM.
Hum: Phase one was largely completed during 2024.
Harminder Semi: Revenues from automotive are several years away, given the design and manufacturing lead times associated with autonomous vehicles. Adjusted gross margin for 2023 and 2024 includes an allocation of direct labor costs in connection with the Strategic Consulting Program and adjustments for inventory cost realignment.
Hum: Revenues from automotive are several years away given the design and manufacturing lead times associated with autonomous vehicles.
Hum: Adjusted gross margin for 2023, and 2024 includes an allocation of direct labor costs in connection with the strategic consulting program.
Hum: And adjustments for inventory cost realignment I will discuss our future adjusted gross margin trends shortly.
Harminder Semi: I will discuss our future Adjusted Gross Margin trends shortly.
Harminder Semi: Now to our Operating Expenses. Selling General and Administrative Expenses for Fiscal 2024, excluding depreciation and amortization, were $22.4 million, an increase of $5.1 million over Fiscal 2023. This change reflects the investment in our preparation to transition into a public company and to scale our go-to-market capability globally. This came on top of exercising firm controls on holding down our expenditures in 2023. Our plans to grow costs in the future will be very closely tied to delivering revenue growth. Research and development costs grew by just under $7 million to $25.1 million in 2024, as we invested in technical resources, software tools, and third-party IP for our next-generation chips.
Hum: Now to our operating expenses.
Hum: Selling general and administrative expenses for fiscal 2024.
Hum: Excluding depreciation and amortization were $22 $4 million, an increase of $5 $1 million over fiscal 2023.
Harminder Sehmi: This change reflects the investment in our preparation to transition into a public company and to scale our go-to-market capability globally. This came on top of exercising firm controls on holding down our expenditures in 2023. Our plans to grow costs in the future will be very closely tied to delivering revenue growth. Research and development costs grew by just under $7 million to $25.1 million in 2024 as we invested in technical resources, software tools, and third-party IP for our next-generation chip. We remain committed to driving long-term value through innovation while ensuring an efficient allocation of capital. Our net loss for 2024 was $61.2 million, down 30% from the net loss of $87.6 million in 2023. The resultant adjusted EBITDA loss, excluding stock-based compensation and other non-cash items for fiscal 2024, was $43.3 million, compared to $30.3 million for fiscal 2023. A brief comment on our cash position.
Hum: This change reflects the investment in our preparation to transition into a public company and to scale our go to market capability globally.
Hum: This came on top of exercising firm controls on holding down our expenditures in 2023.
Hum: Our plans to grow costs in the future will be very closely tied to delivering revenue growth.
Research and development costs grew by just under $7 million to $25 1 million in 2024, as we invested in technical resources software tools and third party IP for our next generation chip.
Harminder Semi: We remain committed to driving long-term value through innovation. while ensuring an efficient allocation of capital. Our net loss for 2024 was $61.2 million, down 30% from the net loss of $87.6 million in 2023. The resultant adjusted EBITDA loss, excluding stock-based compensation and other non-cash items for fiscal 2024, was $43.3 million, compared to $30.3 million for fiscal 2023.
Hum: We remain committed to driving long term value through innovation.
Hum: While ensuring an efficient allocation of capital.
Hum: Our net loss for 2024 was $61 2 million.
Hum: 30% from the net loss of $87 6 million in 2023.
Hum: The resulting adjusted EBITDA loss, excluding stock based compensation and other noncash items for fiscal 2024 was $43 3 million compared to $30 3 million for fiscal 2023.
Harminder Semi: A brief comment on our cash position. The company held 50.2 million dollars on the balance sheet at 31st December 2024 and following the conclusion of the business combination in January this year when additional capital was raised through a private investment in public equity, we believe that Blaze is on a path to execute on its operating plan over the next 12 months.
Hum: A brief comment on our cash position.
Harminder Sehmi: The company held $50.2 million on the balance sheet at 31 December 2024. Following the conclusion of the business combination in January this year, when additional capital was raised through a private investment in public equity, we believe that Blaize is on a path to execute on its operating plan over the next 12 months. In summary, 2024 was a year of transition for the company, with capital raised before the transaction closed. We developed a strong revenue pipeline, which is continually growing, and invested in key partnerships in our chosen markets. We will continue to evaluate capital allocation strategies that align with our long-term growth objectives of focusing on the edge AI opportunity. Let's now turn to financial guidance. For fiscal 2025, we are reaffirming our revenue guidance range provided in February this year. We expect revenue to be in the range of $19 million to $50 million.
Hum: The company held $50 $2 million on the balance sheet at 30 <unk> December 2024.
Hum: And following the conclusion of the business combination in January this year when additional capital was raised through a private investment in public equity.
Hum: We believe that place is on a path to execute on its operating plan over the next 12 months.
Harminder Semi: In summary, 2024 was a year of transition for the company with capital raised before the transaction closed. We developed a strong revenue pipeline which is continually growing and invested in key partnerships in our chosen market. we will continue to evaluate capital allocation strategies that align with our long-term growth objectives of focusing on the edge AI opportunity.
In summary, two.
Hum: <unk> 2024 was a year of transition for the company with capital raised before the transaction closed.
Hum: We developed a strong revenue pipeline, which has continued to growing and invested in key partnerships in our chosen markets.
Hum: We will continue to evaluate capital allocation strategies that align with our long term growth objectives of focusing on the edge AI opportunity.
Harminder Semi: Let's now turn to financial guidance. For fiscal 2025, we are reaffirming our revenue guidance range provided in February this year. We expect revenue to be in the range of $19 million to $50 million. The adjusted EBITDA loss is projected in the range of $70 million to $75 million. The stock-based compensation charge is expected to be around $20 million. As noted at the time we issued our 2025 guidance, we expect to see customer solutions being deployed in the second half of the year through a combination of hardware systems, software licenses, and professional services. We are still assessing the impact of recent tariffs on our adjusted gross margin percentage and plan to provide additional color during the year.
Hum: Let's now turn to financial guidance.
Hum: For fiscal 2025, we are reaffirming our revenue guidance range provided in February this year.
Hum: We expect revenue to be in the range of $19 million to $50 million.
Harminder Sehmi: The adjusted EBITDA loss is projected in the range of $70 million to $75 million. The stock-based compensation charge is expected to be around $20 million. As noted at the time we issued our 2025 guidance, we expect to see customer solutions being deployed in the H2 of the year through a combination of hardware systems, software licenses, and professional services. We are still assessing the impact of recent tariffs on our adjusted gross margin percentage and plan to provide additional color during the year. Our chips are manufactured on US soil, and we maintain very close relationships with our contract manufacturer to tailor supply to demand. Now I'd like to share our guidance for the Q1 ended 31 March 2025. We expect revenue to be around $900,000, mainly from product shipments. We anticipate an adjusted EBITDA loss in the range of $15 million to $16 million.
Hum: The adjusted EBITDA loss is projected in the range of $70 million to $75 million.
Hum: The stock based compensation charge is expected to be around $20 million.
Hum: As noted at the time, we issued our 2025 guidance, we expect to see customer solutions being deployed in the second half of the year.
Hum: Through a combination of hardware systems software licenses and professional services.
Hum: We are still assessing the impact of recent tariffs on our adjusted gross margin percentage and plan to provide additional color during the year.
Harminder Semi: Our chips are manufactured on U.S. soil, and we maintain very close relationships with our contract manufacturer to tailor supply to demand.
Hum: Our chips are manufactured on U S soil and we maintain very close relationships with our contract manufacturer to tailor supply to demand.
Harminder Semi: Now I'd like to share our guidance for the quarter ended March 31st, 2025. We expect revenue to be around $900,000, mainly from product shipments. We anticipate an adjusted EBITDA loss in the range of $15 million to $16 million. And finally, our stock-based compensation charge is estimated at $7.7 million. As our strategic partnerships continue to grow with more announcements planned this year, we expect that the revenue pipeline will reflect the large underlying customer pipelines that these partnerships are expected to bring to play. Solutions based on the current generation of silicon are expected to support revenue growth over the coming three plus years.
Hum: Now I'd like to share our guidance for the quarter ended March 31 2025.
Hum: We expect revenue to be around $900000, mainly from product shipments.
Hum: We anticipate an adjusted EBIT loss in the range of 15 million to $16 million.
Harminder Sehmi: Finally, our stock-based compensation charge is estimated at $7.7 million. As our strategic partnerships continue to grow with more announcements planned this year, we expect that the revenue pipeline will reflect the large underlying customer pipelines that these partnerships are expected to bring to Blaize. Solutions based on the current generation of silicon are expected to support revenue growth over the coming 3+ years. These will coexist with products and solutions based on our next-generation chip that opens additional revenue opportunities in edge AI for Blaize. In closing, our merger enabled us to be funded, and we have an accelerating revenue pipeline across a variety of customers and partners. Blaize has been actively preparing to operate efficiently as a public company. We feel confident in our technology, long-term strategy, and adding shareholder value by delivering effective solutions into the large and rapidly growing edge AI market.
Hum: And finally, our stock based compensation charges estimated at $7 7 million.
Hum: As our strategic partnerships continue to grow with more announcements planned. This year, we expect that the revenue pipeline will reflect the large underlying customer pipelines that these partnerships are expected to bring to place.
Hum: Solutions based on the current generation of Silicon are expected to support revenue growth over the coming three plus years.
Harminder Semi: These will co-exist with products and solutions based on our next generation chip that opens additional revenue opportunities in Edge AI for Blaze.
Hum: These will coexist with products and solutions based on our next generation chip that opens additional revenue opportunities in edge AI for place.
Harminder Semi: In closing, Our merger enabled us to be funded and we have an accelerating revenue pipeline across a variety of customers and partners. Blaze has been actively preparing to operate efficiently as a public company. We feel confident in our technology, long-term strategy, and adding shareholder value by delivering effective solutions into the large and rapidly growing edge AI market.
Hum: In closing.
Hum: Our merger enabled us to be funded and we have an accelerating revenue pipeline across a variety of customers and partners.
Hum: Ladies has been actively preparing to operate efficiently as a public company.
Hum: We feel confident in our technology.
Hum: Long term strategy, and adding shareholder value by delivering effective solutions into the large and rapidly growing edge AI market.
Operator: With that, I'll turn it back over to the operator for questions and answers. Thank you. As a reminder, to ask a question, please press star 1 1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1 1 again. Please limit yourself to one question and one follow-up. One moment for questions.
Harminder Sehmi: With that, I'll turn it back over to the operator for questions and answers.
Hum: With that I'll turn it back over to the operator for questions and answers.
Operator: Thank you. As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. Please limit yourself to one question and one follow-up. One moment for questions. Our first question comes from Alex Platt with D.A. Davidson. You may proceed.
Hum: Yes.
Hum: As a reminder to ask a question. Please press star one on your telephone and wait for your name to be announced to withdraw. Your question. Please press star one again, please limit yourself to one question and one follow up one moment for questions.
Alex Platt: Our first question comes from Alex Platt with D.A. Davidson. You may proceed. Hi, this is Alex Platt on for Gail Luria.
Speaker Change: Our first question comes from Alex <unk> with D. A Davidson you May proceed.
Alex Platt: Thanks. This is Alex Platt on for Gil Luria. I just have one question, maybe a more high-level one. Sort of beyond hardware improvements, I'm sort of interested to know how you see the improvement of small models, I guess, parameter-wise, contributing to the long-term adoption of edge AI solutions. Maybe within that question, we know some of the use cases in verticals you can serve now or sort of in the near future. Are there any other areas that really get unlocked for you with drastically improved levels of intelligence in models? Thanks.
Alex: Thanks. This is Alex on for Gil Luria I just had one question, maybe a more high level one.
Dinakar Munugala: I just have one question, maybe a more high-level one, but sort of beyond hardware improvements. I'm sort of interested to know how you see the improvement of small models, I guess parameter-wise, contributing to long-term adoption of edge AI solutions. And then maybe within that question, we know some of the use cases in verticals you can serve now or sort of in the near future. But are there any other areas that really get unlocked for you with drastically improved levels of intelligence in models? Thanks.
Speaker Change: But sort of beyond hardware improvements.
Speaker Change: Sort of interested to know how you see the improvement of small models I guess parameter wise contributing.
Speaker Change: Contributing until long term adoption of edge AI solutions.
Speaker Change: Within that question.
Speaker Change: I know some of the use cases and verticals you can serve now or sort of in the near future, but are there any other areas that really get unlocked for you with drastically improved intelligence level of intelligence in our models. Thanks.
Dinakar Munagala: Thanks for the question. It's regarding the small language models specifically. DeepSeek has shown that models will continue to shrink, and there are several efforts in this space. Small language models, what essentially it does is it truly democratizes AI, and the work will be shifted more and more towards the edge. We're talking about not 1x, 2x, 1,000x kind of shrinking of AI models. In fact, the initial shipments that have been announced are true multimodal and in the space of these small language models. This is actually quite a good thing for edge computing, and particularly Blaize architecture, which is programmable to be able to address this.
Dinakar Munugala: regarding the Small Language Models specifically. Essentially it does, it truly democratizes AI. We're talking about not one exception. In fact, the initial shipments that have been announced... in the space of the small...
Speaker Change: Thanks for the question.
Speaker Change: Adding the small language models specifically.
Speaker Change: Yeah.
Speaker Change: Deep sea has shown that.
Speaker Change: Models will continue to shrink.
Speaker Change: And there are several efforts in this space.
Speaker Change: And small amount language models, what essentially it doesn't truly democratizes AI and these the work will be shifted more and more towards.
Speaker Change: The edge. So we're talking about not one X two X thousand X kind of shrinking of AI models.
Speaker Change: In fact, the initial shipments that have been announced.
Speaker Change: Ill.
Speaker Change: Through multimodal in.
Speaker Change: In the space of these models.
Dinakar Munugala: So this is actually quite a good thing for edge computing. In addition, your question was also about... And definitely, this is something that will. Although we're focused on initially computer vision, public safety, smart city, that area, this is definitely going to impact all the major edge computing. Thank you. And as a reminder, to ask a question, please press star 11 on your telephone.
Speaker Change: So this is actually quite a quite a good thing for edge computing.
Speaker Change: And particularly place architecture, which is programmable too to be able to address this.
Harminder Sehmi: In addition, your question was also about other areas, and definitely this is something that, although we are focused on initially computer vision, public safety, smart city, that area, this is definitely going to impact all the major edge AI use cases. I'll let Harminder add any more. No, I think that's fine. You've covered it. Thank you.
Speaker Change: In addition to your question was also about.
Other areas.
Speaker Change: And definitely this is something that will.
Speaker Change: Although we are focused on initially computer vision public safety Smart City area. This is definitely going to impact all of the major.
Speaker Change: <unk> use cases and determine that add anymore.
Speaker Change: No I think that's fine you have covered it thank you.
Operator: Thank you. As a reminder, to ask a question, please press star one one on your telephone. Our next question comes from Kevin Cassidy with Rosenblatt Securities. You may proceed.
Speaker Change: Thank you and as a reminder to ask a question. Please press star one on your telephone.
Kevin Cassidy: Our next question comes from Kevin Cassidy with Rosenblatt Securities. He may proceed. Hi, yes, thanks for taking my question. Just as you're looking at this huge market that you're looking at, you know, how do you filter out which programs or which partners you choose just to make sure you're getting the best ROI. One is high value, high. but also we engage with the ecosystem, right? The ecosystem comprises ISP partners as well as system integrators. targeting end customers. So the idea is that through the high value customers we go direct and as we engage with the ecosystem.
Operator: Our next question comes from Kevin Cassidy with Rosenblatt Securities You May proceed.
Kevin Cassidy: Hi. Yes. Thanks for taking my question. Just as you're looking at this huge market, how do you filter out which programs or which partners you choose, just to make sure you're getting the best ROI?
Speaker Change: Hi, yes. Thanks.
Operator: Taking my question.
Operator: As Youre looking at this huge market.
Operator: How do you filter out which.
Programs, which partners you choose.
Operator: Just to make sure you're getting the best ROI.
Dinakar Munagala: Our go-to-market has 2 ways we go to market. One is high value customers, high contract value customers that we engage directly. We also engage with the ecosystem. The ecosystem comprises ISV partners as well as system integrators, targeting end customers. The idea is that through the high-value customers, we go direct, and as we engage with the ecosystem and land a particular use case with a particular end customer, their pipeline, the ISV's pipeline, also becomes ours. There's a multiplier effect there. By going direct, we also focus on a land expand within the individual customer. With the ecosystem, as we engage, we have a multiplier effect also that grows the pipeline. That's the combination. Let Harminder add as well. Yeah. Thank you, Dinakar. I'll amplify a couple of things.
Operator: So.
Go to market has.
Operator: Two two ways, we go to market.
Operator: One is high value high.
Operator: Value customers high contract value customers that we engage directly.
Operator: But also we engaged with the ecosystem the ecosystem comprises ISP partners as well as system integrators.
Operator: And customers.
Operator: So so.
Operator: The idea is that.
Operator: Through the high value customers, we go direct and as we engage with the ecosystem.
Dinakar Munugala: and land a particular use case with a particular end customer. Their pipeline, the ISV's pipeline, also becomes... So there's a multiplier effect there. So by going direct, we also focus on the landing, expand within the individual customer. And with the ecosystem as we engage, we have a multiplier effect also that grows the pipeline. So that's the combination.
Operator: Land particular use case with a particular end customer.
Operator: That pipeline the Isps pipeline also become ours. So there is a multiplier effect there so by going direct.
Operator: So focus on Atlantic expand within the individual customer and with the ecosystem as we engage.
Operator: We have a multiplier effect also that growth the pipeline. So that's the combination.
Harminder Semi: I'll let Hamid to add as well. Yeah, thank you, Junker. I'll amplify a couple of. We are very focused on So, one thing to note is that the AI algorithm... that behind each of these use cases are largely similar. So when we've selected our ecosystem partners, what we're doing is making sure that the beachhead customer, i.e. the first customer that we're going to go deploy the solution with. We test, we pilot, and we make sure that the solutions are relevant. And as Dineke mentioned, the Landon Expand, where the second customer, the tenth customer, the hundredth customer in that vertical.
Speaker Change: Pat as well.
Speaker Change: Thank you Jessica I'll amplify a couple of things.
Harminder Sehmi: We are very focused on specific areas just for the allocation of resources. One thing to note is that the AI algorithms that behind each of these use cases are largely similar. When we've selected our ecosystem partners, what we're doing is making sure that the beachhead customer, i.e., the first customer that we're going to go deploy the solution with, we test, we pilot, and we make sure that those solutions are relevant for them. As Dinakar mentioned, the land and expand, where the second customer, the 10th customer, the 100th customer in that vertical, the path to revenue is much, much faster with those customers. As our roadmap expands, we will open up other verticals. For now, our pipeline is based on the focused smart cities, some defense type of customers.
Speaker Change: We are very focused on specific areas just from the risk allocation of resources. So one thing to notice is the AI algorithms.
Speaker Change: Behind each of these use cases are largely similar.
Speaker Change: So when we have selected our ecosystem partners, what we're doing is making sure that the beachhead customer.
Speaker Change: First customer that we're going to go deploy the solution with <unk>.
Speaker Change: We test we pilot and we make sure that their solutions are relevant for them and as Dennis mentioned, the land and expand where the second customer that 10th customer for 100 customers in that vertical.
Kevin Cassidy: The path to revenue is much, much faster with the... As our roadmap expands, we will open up other verticals, but for now, our focus, our pipeline is based on the focus. Okay. I see. Great. Thanks.
Speaker Change: Past two revenues much much faster with the with those.
Speaker Change: With those customers.
Speaker Change: As our roadmap expense.
Speaker Change: We'll open up other verticals, but for now our focus.
Speaker Change: Pipeline is based on the focused smart cities some defense type of.
Speaker Change: Customers.
Kevin Cassidy: Okay. I see. Great. Thanks. Just some of your new system partners, have they tested your chips using DeepSeek?
Dinakar Munugala: And, you know, just some of your new system partners, have they tested your chips using DeepSeq? Each customer, of course, has different flavors of Deep-Seek so happens to be a certain flavor. Landis model. But as you know it, there's this phi. Gemma, there's others which also fall in a similar category of multi-modal. So the key is multi-modal AI. We happen to be very unique in that our processor architecture is completely programmable. And therefore, as the world is making this huge transition to incorporate true multi-modal AI. We're here and ready. The combination of our programmable processor and our software stack is coming in very handy to us.
Speaker Change: Okay, great. Thanks.
Speaker Change: Just some of your new system partners.
Speaker Change: Have they tested.
Speaker Change: Tips with using deep seek.
Dinakar Munagala: Each customer, of course, has different flavors of language models as well as computer vision algorithms. DeepSeek so happens to be a certain flavor of a language model. As you know, there's Phi, there's Gemma, there's others which also fall in a similar category of multimodal AI. The key is multimodal AI. We happen to be very unique in that our processor architecture is completely programmable. Therefore, as the world is making this huge transition to incorporate true multimodal AI, we're here and ready. The combination of our programmable processor and our software stack is coming in very handy to our partners and end customers. Different flavors, but the commonality is how we actually uniquely accelerate it.
Speaker Change: Each customer of course has different flavors of.
Speaker Change: Language models as well as computer vision algorithms.
Speaker Change: Deep-six, who happens to be a certain flavor of language model.
Speaker Change: But as you know it is the Fi.
Speaker Change: Jim.
Speaker Change: There's others, which also fall in a similar category of multimodal AI.
Speaker Change: So the key is multimodal AI, we happened to be very unique in that our processor architecture is completely programmable and therefore as the world is making this huge transition.
Speaker Change: Incorporate true multimodal AI.
Speaker Change: Here already the combination of our programmable processor and our software stack.
Speaker Change: <unk> is coming in very handy.
Dinakar Munugala: So, different flavors, but the commonality is how we actually uniquely... Okay, I see. Yeah.
Speaker Change: Our partners and customers.
Speaker Change: So different flavors, but the commonality is.
Speaker Change: We actually uniquely activated.
Kevin Cassidy: Okay. I see. Yeah. Just one other question, more on the balance sheet. The inventory you're holding, is that products? Is that those in die form or is that something else? I guess what is being held in inventory, about $8 million?
Dinakar Munugala: And just one other question, more on the balance sheet, the inventory you're holding is, is that products? Is that those in dye form? Or is that is that something else? Well, you know, I guess what is what is being held in inventory about $8 million? Yeah, that's all finished good. We have a contract manufacturer, there'll be certain chips in there too. but all PCI cards, various phone... Thank you.
Speaker Change: Okay.
Speaker Change: And just one other question.
Speaker Change: On the balance sheet the inventory you're holding.
Speaker Change: Is that product.
Speaker Change: In die form or.
Speaker Change: Is that something else, but I guess, what is what is being held in inventory about $8 million.
Harminder Sehmi: Yeah. That's all finished good. We have a contract manufacturer. There'll be certain chips in there too, just the SoCs. All PCI cards, various form factors, that's what we have. All ready to ship.
Speaker Change: Yes, that's all finished good.
Speaker Change: Have a contract manufacturer or there'll be certain chips in there too just the <unk>.
Speaker Change: But all PCI.
Speaker Change: PCI cards various form factors.
Speaker Change: What we have so we are ready to ship.
Operator: Thank you. Our next question comes from Richard Shannon with Craig-Hallum Capital Group. You may proceed.
Speaker Change: Thank you.
Richard Shannon: Our next question comes from Richard Shannon with Craig Hallam Capital Group, you may proceed. Well, thanks for taking questions as well. Maybe I'll just press one on the pipeline to see if it works. the pipeline progress since the last time it was published in here. We filed these very early this year and they get pipelined. We've made hundreds of millions of dollars.
Speaker Change: Our next question comes from Richard Shannon with Craig Hallum Capital Group You May proceed.
Richard Shannon: Well, hi guys. Thanks for taking questions as well. Maybe I'll ask the first one on the pipeline since you guys just did a review of prepared remarks. If you could quantify the pipeline progress since the last time you published in your filings very early this year, the pipeline made hundreds of millions of dollars anyway to characterize that. Then also, maybe you can add to that some color-
Speaker Change: Hi, guys. Thanks for taking my questions as well.
Speaker Change: Maybe I'll ask the first one on the pipeline since June persisted.
Speaker Change: During the prepared remarks.
Speaker Change: If you did the quantifier.
Speaker Change: Okay.
Speaker Change: And then progress.
Speaker Change: Last night, we published filings earlier this year.
Speaker Change: Okay great.
Speaker Change: Hundreds of millions of dollars.
Speaker Change: Great.
Operator: Sorry, may I have a message to the moderator, Josh? Richard, your line is breaking up. I don't know if it's just for us, but it's breaking up. It's very difficult to follow you. Hello? Chip, can you hear us?
Dinakar Munagala: Sorry. May I have a message to the moderator or Josh? Richard, your line is breaking up. I don't know if it's just for us, but it's breaking up, so it's very difficult to follow you. Hello? Richard, can you hear us?
Speaker Change: So.
Speaker Change: That's.
Speaker Change: Our message to the moderator Josh Richard Your line is breaking up I don't know if it's just for us, but it's breaking up so they're difficult to follow you.
Speaker Change: Hello.
Speaker Change: Richard can you hear us.
Operator: Pardon me, it looks like Richard is disconnected.
Operator: Pardon me. It looks like Richard has disconnected. I'll turn the call back over to Dinakar Munagala for any closing remarks.
Speaker Change: Pardon me it looks like Richard is disconnected.
Dinakar Munugala: I'll turn the call back over to Dinakar Munagala for any closing remarks. I think Richard's question was, should we wait for Richard or close the call?
Dennis: I'll turn the call back over to Dennis <unk> for any closing remarks.
Dinakar Munagala: I think Richard's question was, should we wait for Richard or close the call, I guess? Okay. Thank you all for joining, and we look forward to updating you as we make progress with the business in the near term and the coming quarters.
Speaker Change: So.
Speaker Change: I think.
Speaker Change: Richards question was should we wait for Richard close the call I guess.
Dinakar Munugala: Thank you all for joining and we look forward to. Thank you.
Speaker Change: Okay.
Speaker Change: Thank you all for joining and we look forward to updating you as we make progress with the business.
Speaker Change: Near term in the coming quarters.
Operator: Thank you. This concludes the conference. Thank you for your participation. You may now disconnect.
Operator: This concludes the conference. Thank you for your participation.
Speaker Change: Thank you. This concludes the conference. Thank you for your participation you may now disconnect.
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Yes.
Speaker Change: [music].