Q1 2025 Innoviz Technologies Ltd Earnings Call
Speaker Change: Ladies and gentlemen, thank you for standing by. We will begin very shortly.
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Speaker Change: Good morning. I would like to welcome you to our Q1 2025 earnings conference call. Joining us today are Omer Keilaf, Chief Executive Officer, and Eldar Cegla, Chief Financial Officer. I would like to remind everyone that this call is being recorded and will be available in the Investor Relations section of our website at ir.inaviz.tech.
Speaker Change: 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 Invis.
Speaker Change: 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 obligations to publicly update or revise them.
Omer Kilaf: 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 20F file with the SEC on March 12, 2025. Omer, please go ahead.
Omer Kilaf: Thank you Adda, and good morning to all of you joining us on Discord Today we'll discuss our recent financial performance Tell you about some exciting new developments in our business, and outline how these positions are to achieve a long-term goals
Omer Kilaf: In the 3rd quarter, Innoviz Tech Voters, Record Revenues, and Ghost Margin
Omer Kilaf: Q1 revenues were $17.4 million. Up approximately three times sequentially and up approximately two and a half times year over year.
Omer Kilaf: In our company's history, demonstrating our progress in meeting our full year targets and achieving our long term strategic and financial goals.
Omer Kilaf: As we discussed last quarter in recent months, we've taken several significant steps to strengthen our financial position in December we entered into an approximately $80 million and a repayment plan with our key customers.
Omer Kilaf: And our ears formed a significant portion of our revenue was in the quarter.
Omer Kilaf: Just last week, we announced an extension of our in a repayment plan through approximately $95 million.
Omer Kilaf: With the bulk of cash payments expected in 'twenty, five and 'twenty 'twenty six.
Omer Kilaf: And through our customers' computing commitment to arc acknowledging.
Omer Kilaf: Our performance showcases the strength of our financial model.
Omer Kilaf: The recently expanded in a repayment plan the registered direct offering and our and our prudent cash management are expected to enable us to cross SLP and ramp volumes in 'twenty six and 2027.
Omer Kilaf: We recently announced a strategic partnership with public who launched the mass production of our innovate two platform ahead.
Omer Kilaf: Of our upcoming customer ramps.
Omer Kilaf: By working with Carbonite, we will be able to efficiently scale production to volume with a partner that has promotive grade manufacturing capabilities around the world.
Omer Kilaf: Our existing level three and level four programs are on track we are delighted by the accelerating plans for robot taxis deployment.
Omer Kilaf: Yesterday, we announced that we are accelerating lighter shipments to Paul Wogan autonomous mobility for the IV Budd all demobilized drive platform.
Omer Kilaf: Ahead of the deployments by Moira and Uber.
Omer Kilaf: Hundreds of IV by the Shadows will be equipped with 19 of these two litres itch in 2025 ahead of fleets launches in 2026 in Europe and the U S.
Omer Kilaf: Oh loan in Vernon other adobe's customer customers through the mobile App drive platform are both expected to break ground on manufacturing facilities for their vehicles in the U S and Europe.
Omer Kilaf: Elsewhere, we continue to make progress with new customers.
Omer Kilaf: We are excited about our expanding collaboration and growing momentum with engineer on the Purion platform as.
Omer Kilaf: As well as our progress with a major OEM evaluating the solution.
Omer Kilaf: We're also seeing strong and growing traction in automotive, where our auto grade technology could generate significant value for customers.
Omer Kilaf: We are in discussions with several integrators, who are interested in deploying a lighter into their customers' applications, which target small city.
Omer Kilaf: <unk> safety, we are shipping samples and have developed especially June software and hardware kit for this market.
Omer Kilaf: Auto we are off to a very strong year.
Omer Kilaf: Before I dive into the details I'd like to take a few minutes to talk about our mission.
Following a record breaking financial quarter marked by several significant operational operational and business milestones I believe now is an ideal moment to discuss innovative origin's.
Omer Kilaf: And where we are headed.
When we founded this company, we wanted to enable safe autonomous driving by creating the best level in the markets and we delivered on that commitment with.
Omer Kilaf: With Dana with one we enabled BMW to offer a safe autonomous driving and it's seven series vehicles with these two we are offering the market significantly improved performance and cost and our customer engagements are a strong testament of the product's technical superiority.
Omer Kilaf: In order to truly deliver on our vision for safe autonomous driving four years ago, we set as our mission the ability to work directly with automotive Oems and tier one supplier.
Omer Kilaf: We have achieved this goal.
Omer Kilaf: Now with partner directly with some of the world's largest automotive manufacturers as a trusted tier one.
Omer Kilaf: Clearly demonstrating our ability to collaborate with them at the highest level.
Omer Kilaf: We've now come to the next stage in our evolution of the company and are ready to write the next chapter chapter in the innovation story.
Omer Kilaf: Becoming the world's premier large scale them, a supplier of best in class lateral solution for autonomous driving and beyond.
Omer Kilaf: As we approach Fall award we are taking the steps needed to achieve this goal as you saw from our recent announcements our partnership with Pablo and it should allow us to efficiently ramp up our designs to volume and meet customer demand for years to come.
Omer Kilaf: We have a proven record of delivering to our commitments and are excited about this next stage of our journey.
Omer Kilaf: Now let me begin by telling you more about our Q1 financial results we.
Omer Kilaf: We reported revenues of $17 4 million.
Omer Kilaf: Which is an all time record.
Omer Kilaf: <unk>.
Omer Kilaf: It's almost three times better than the last quarter and approximately two five times better than Q1 of 2024.
Omer Kilaf: The revenues was driven by a combination of NR repayments under the approximately $80 million payment plan that we initially announced in December and since expanded to approximately $95 million.
Omer Kilaf: As a reminder, and a repayment plan is that the outcome of development activities that interface is performing forwards key customer.
Omer Kilaf: And there is support our operations ahead of these customers as Apis and the bulk of cash payments from the plan as expected in 2005 and 2026.
Omer Kilaf: During the quarter revenues also benefited from sales of Flyers to new and existing customers.
Omer Kilaf: Reported gross margin of 40% supported by positive contributions from <unk> or is this gross margin level was also a record for the company.
Omer Kilaf: Going forward, we will continue to manage our spending closely and maintain our focus on profitability.
Omer Kilaf: We grew our cash position ending the quarter with $85 4 million in cash and cash equivalents. Our cash balance included the proceeds of the registered direct offering that we completed in February.
Omer Kilaf: Bolstered by our strength balance sheet and ongoing customer engagements, we are well positioned to support the product ramps that we expect over the next two years and to pursue new opportunities.
Omer Kilaf: Turning now to our production capacity expansion.
Omer Kilaf: We believe.
Omer Kilaf: Our financial performance, thus far in 2025, driven by a combination of Mlps and lagerfeld is indicative of our customers commitment to our products.
Omer Kilaf: We recently announced that to support our volume ramp we selected <unk> as our manufacturing partner for the <unk> two platform Pablo.
Omer Kilaf: <unk> will provide end to end manufacturing for both the <unk> two long range and <unk> is too short to mid range Lidar.
<unk> will use our production methods using the design and process flows that we developed here at <unk>.
Omer Kilaf: <unk> expertise in automotive grade manufacturing and its global footprint of manufacturing sites spread across the U S and Asia will enable <unk> to cost effectively scale production for volume and accelerates revenue generation.
Omer Kilaf: Our collaboration will allow us to meet the demands of our current and future customers for years to come while providing flexibility.
Speaker Change: Bob we had facilities that passed rigorous audits by several leading global Oems.
Speaker Change: Under the German automotive <unk> six three standup and our customers are very pleased with our choice of manufacturing Putnam.
Speaker Change: They are all familiar with Fibernet and view this as a further assurance of our ability to meet their volume ramp requirements.
Speaker Change: <unk> team has been at our Israel sites, working alongside our staff to master our product and process.
Speaker Change: We expect our capacity to increase by an order of magnitude in 2025, and the production line to be fully ramp in 2026, enabling customer S&P's and volume ramps.
Speaker Change: Moving on to our programs, we continue to be deeply engaged with our level three and level four program partners.
Speaker Change: We are especially encouraged by the accelerating plans to deploy robotics is around the world with production ramping at our public facility, we'll be able to serve these deployments with our growing capacity.
Speaker Change: As you saw in our press release yesterday, we are accelerating the delivery of a newly designed lateral platform to Volkswagen autonomous mobility.
Speaker Change: We're tremendously pleased with this ramp in our collaboration with Volkswagen in support of lawyers planned expansion in multiple European and U S cities starting in 2026.
Speaker Change: Ahead of the fleet launch hundreds of IV Bank charter will be equipped with a newly designed suite of <unk> in 2025.
Speaker Change: Additionally, Wilbur and caused <unk> announced their partnership with deploy a fleet of <unk> vehicles in Los Angeles in 2026, and <unk> down the line.
Speaker Change: Recall that the IV bags, which is based on the mobile I drive platform has nine introduced two litres per vehicle re long range six so <unk>.
Speaker Change: Other expanding robot taxis programs include hall on enrollment.
Speaker Change: Which our customers, we previously announced of the mobile I'd drive platform, how long is breaking ground on a facility in the U S to build its autonomous vehicles.
Speaker Change: Which like the IV.
Speaker Change: His plan to employ nine innovative two letters H production is slated for 2026.
Speaker Change: <unk> also started construction on a manufacturing facility for its autonomous vehicles in Europe further highlighting the growing adoption of robotics is around the world.
Speaker Change: As we advance our programs with our existing level three and level four customers across the different platforms. We continue to see robust finalist Q activity.
Speaker Change: And our environment stages of sourcing process with several Oems.
Speaker Change: Last quarter, we told you about our relationship with Nvidia.
Speaker Change: Since then our collaboration has expanded.
Speaker Change: And we are seeing growing momentum with the Purion platform the benefits of partnering with a platform provider with invidious capabilities are clear as multiple Oems are evaluating day period for integration into their vehicles.
Speaker Change: We're extremely pleased by the recent progress we've made with major Oems on this platform.
Speaker Change: In addition to the continued traction we're seeing in the automotive space. We are now increasingly targeting north of motive applications as well.
Speaker Change: The expanding capacity that we will have through <unk> has the potential to allow us to grow our available market in the segments, where we believe our lighter technology likely outpaces the existing competition.
Speaker Change: We view this as a great opportunity to generate better customer value through our short to mid range and long range solutions, which outperformed the devices currently available to the nonautomotive markets.
Speaker Change: Additionally, bringing auto grade products to this market gives customers a new level of reliability. This has been a pain points.
Speaker Change: We are in a serious we are in serious discussions with several integrators around specific projects in areas such as smart city ran through monitoring and safety.
Speaker Change: We are we have started shipping samples and launching a version of a product specifically Q1 for these markets as well as software.
Speaker Change: And how brocade.
Speaker Change: Several of our partners are already showcasing products featuring <unk> desires.
Speaker Change: So there are customers we.
We're very optimistic.
Speaker Change: Domestic about our opportunities for growth in this segment driven the strength of our solution and look forward to updating you as the year progresses.
Speaker Change: I'd like now to take a few minutes to share some updates on our technological advances, which.
Speaker Change: Our underpinning the success, we're seeing with customers.
Speaker Change: We have reached points us for it.
Speaker Change: And our building our first example at Publix.
Speaker Change: We have frozen the design of the <unk> two with respect that meets or exceeds the requirements of the automotive Oems.
Speaker Change: We've been able to demonstrate unprecedented performance compared to our previous products such as range performance of 300 meters.
Speaker Change: At 10% of the activity under full ton conditions.
Speaker Change: This is a testament of our ability to continuously improve our product and maintain our technology leadership.
Speaker Change: We are now focusing on higher level kpis related to image quality uniformity accuracy reliability always on availability and resilient.
Speaker Change: Our required to enable mission critical performance at level, three and level four applications.
Speaker Change: These are the kpis that our customers are now targeting.
Speaker Change: And when we demonstrate our capabilities around these next level kpis customer.
Speaker Change: Impressive.
Speaker Change: As you know we never stay put.
Speaker Change: And are already making progress on our next generation Slim design.
Speaker Change: Phase three.
Speaker Change: We will share more with you later this year.
Speaker Change: Now, let's move on to our outlook driven by the annual repayments that we expect in 2025.
Speaker Change: Combined with sales of <unk>, we continue to expect more than two fold increase in our revenues year over year for 2025 at $50 million to $60 million.
Speaker Change: For the full year, we expect revenues to be back end loaded due to the lumpiness of customer timelines. We also expect to see some fluctuations in margins.
Speaker Change: Our continued focused on tightly managing expenses as well as the actions. We took in the first quarter is expected to drive down our cash burn over the course of the year.
Speaker Change: On the operational front in 2025, we continue to target one to three new programs.
Speaker Change: Last quarter, we noted that we expect $20 million to $50 million in additional <unk> bookings as you sow, we already locked in a nice portion of that.
Speaker Change: Before I turn it over to Dow Let me briefly touch on the subject of the U S starts the situation remains very dynamic around how and when and even if the tariff will be applied.
Speaker Change: We can tell you is that at this time, we expect the tariffs impact to be limited.
Speaker Change: We are continuing to closely monitor the situation and have the flexibility to adapt as needed given the timing of ramps our relationship with <unk>.
Speaker Change: And there are multiple of manufacturing locations.
Speaker Change: And with that I'll turn it over to adapt to talk about our financials.
Speaker Change: Thank you Omer and good morning, everyone.
Speaker Change: As we noted last quarter in the past several months, we have strengthened the financial foundation of our company and have made meaningful strides on our path to breakeven and profitability.
Speaker Change: The results we reported for the first quarter demonstrate the impact of the annual repayment plan on our revenue.
Speaker Change: Our balance sheet reflects the proceeds of the registered direct offering of our securities that we closed in the first quarter.
Speaker Change: We ended Q1 with approximately $85 4 million in cash cash equivalents short term deposits and marketable securities on the balance sheet.
Speaker Change: Yeah.
Speaker Change: For Q2, we expect strong cash inflows, reflecting robust red receiver cash expected in the single digits and look forward to continued balance sheet strength further aided by the effects of our operational realignment in Q1.
Speaker Change: Gross margin in the quarter was approximately 40% a dramatic improvement over eight 9% in the previous quarter going forward. We expect margins will continue to be rather lumpy. This is due to the product ramp timelines and NRG fluctuation based on our customers.
Speaker Change: Milestone.
Speaker Change: For the full year, we continue to expect gross margins to be positive.
Speaker Change: Looking into the remainder of 2025 and beyond we remain confident in our ability to manage our expenses effectively and keep our burn rate down on the annualized basis.
Speaker Change: Now turning to the income statement, our Q1 revenues of $17 4 million set a record for the company driven by the contribution of NRG as well as sales of <unk>.
Speaker Change: Our operating expenses for Q1 were approximately $21 million a decrease of 13, 4% from $31 $7 million in Q1 2020 for this quarters operating operating expenses included $3 million.
Speaker Change: Share based compensation compared to five $9 million in Q1 2020 for research and development expenses for Q1 were $14 8 million a decrease from $23 8 million in Q1, 'twenty Q4, largely related to the allocation of direct costs.
Cogs.
Speaker Change: Under the NRI payment plan.
Speaker Change: Quarters R&D expenses included $1 9 million of share based compensation compared to $3 8 million.
Speaker Change: In Q1 of 2020 to conclude Q1 represents a record quarter of progress for robust performance for both revenue and profitability perspective.
Speaker Change: Encouraged by the ongoing strength of our expense management and ability to consistently meet or exceed our revenue guidance.
Omer Kilaf: Looking into Q2, we are focusing on our future ramping introduced two and securing additional design win as we reduce cash burn and maintain a strong balance sheet and with that I'll turn the call back to Omar or a few closing remarks.
Omer Kilaf: Thank you Adam.
Omer Kilaf: Okay.
Omer Kilaf: Before I wrap up the call and open for Q&A I wanted to recap some of the recent our recent developments.
Omer Kilaf: We reported a record financial quarter with revenues of $17 4 million and gross margin of 40%.
Omer Kilaf: Now to our partnership with <unk>, which should help us efficiently bring the interface to product platform to mass production.
Omer Kilaf: We extended our annual repayment plan with key customers from approximately $80 million to approximately $95 million.
Omer Kilaf: The majority of cash payments expected in 2025% of clinical visits we're.
Omer Kilaf: We are pleased by the accelerating adoption of robotics is powered by innovative technologies around the world. We're accelerating delivery of four devices into the test deployments ramp at a faster pace than we previously anticipated.
Omer Kilaf: Our collaboration with <unk> on the Purion platform is expanding in multiple Oems are evaluating it for integration.
Omer Kilaf: Our technology is gaining traction in automotive applications offering customers significant value with our auto grade devices.
Omer Kilaf: And we are engaging with several integrators around specific projects.
Omer Kilaf: We continue to make excellent progress on the technological strengths and are enabling kpis related to image quality uniformity accuracy and reliability always on availability and resilient that enable mission critical performance and level three and level four application.
Omer Kilaf: Having delivered on the goals, we set for ourselves since our founding.
Omer Kilaf: Look forward to the next stage in our company's growth as we focus on becoming the world's premier large scale provider of best in class Lidar solutions for autonomous driving and beyond.
Speaker Change: With that operator, let's open it up for Q&A.
Speaker Change: Thank you in order to ask a question. Please raise your hand, using your mobile or desktop applications and wait for your name to be announced.
Speaker Change: Once again, please raise your hand, using your mobile or desktop application and wait for your name to Vienna.
Speaker Change: Our first question today comes with it comes from the line of Mark Delaney with Goldman Sachs. Please go ahead.
Yes. Thank you very much for taking my question and congratulations on the good <unk> results.
Speaker Change: First question is on Robo Taxis and addition to the VW announcement that uses an advanced Lidar Uber has announced a robo taxi plans with my mobility Pone AI, we write and momentum for our programs in the U S Europe and the Middle East when you think about the broader set of evs that could be deployed globally, excluding China, what kind of share of market position do you think this will have.
Speaker Change: So right now we are working with the I believe the strongest platform players in this area.
Can see the way that mobilized able.
To gain more partners other than efforts through partners like.
Speaker Change: <unk> and <unk>.
Speaker Change: I think that the relationship is a new deal between Uber and fluids program.
Speaker Change: Is expecting to allow for selecting to scale faster.
Speaker Change: Had been since the Trump administration.
Speaker Change: Basically removing the barriers in terms of the amount of autonomous taxes, which I'll allowed on the road.
Speaker Change: It was I think increased from 2000, a year to around 100000 year in a way it's kind of.
Speaker Change: Standard of rate, meaning that up until a few months ago.
Many of the Robo taxi companies, where it helps.
Speaker Change: From scaling because of that limitation now that this limitation has been removed.
Speaker Change: Youll start to see a race in which companies will try to take cities.
Speaker Change: There will be a point in time, we're <unk>.
Speaker Change: Companies.
Speaker Change: This will be over populated with taxi services.
Speaker Change: We're not allowed to new.
Speaker Change: Players to enter I think the first mover advantage.
Speaker Change: Is super important the fact that the first.
Speaker Change: Over Texas that are going to be on the road are going to be equipped with.
Speaker Change: <unk> will give us tremendous advantage and we expect to be a meaningful player in that.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Thanks Samira My other question was on the financials, but the gross margin in particular was very strong much higher than we had been estimating I wanted to better understand what type of gross margin and EBIT margin you think at our re programs will typically have on average maybe over the course of one to two years.
Speaker Change: And specifically when you do see an RV revenue in and with what you saw in the first quarter was there.
Speaker Change: Anything unusual in <unk> in terms of when you saw costs.
Speaker Change: Compared to the timing of.
Speaker Change: Revenue thanks.
Speaker Change: Yeah, So Q4 gross margins.
Speaker Change: $8 nine and indeed this quarter at 40%.
Speaker Change: I think.
Speaker Change: <unk> always positively influencing our gross margin so.
Speaker Change: I don't think that.
Speaker Change: Over time, you will see such a high gross margins, but definitely very positive.
Speaker Change: You can maybe not expect this level, but.
Speaker Change: You can definitely expect positive end.
Speaker Change: And relatively high.
Speaker Change: Once <unk> kicking in.
Speaker Change: Like we did this quarter.
And although just to make sure I understood what was unusual about the margin associated with an RV revenue this quarter I understand the timing will be lumpy when you see R&R at our east, but why the margin.
Speaker Change: Thank goodness.
Speaker Change: Because of that.
Speaker Change: The relative percentage of NRI.
Speaker Change: Versus.
Speaker Change: Versus unit so most of the revenue the vast majority of it was the MRE.
Speaker Change: And Thats why it pushed out.
Speaker Change: Our gross margin.
Speaker Change: Okay. Thank you.
Speaker Change: Yeah.
Speaker Change: Thank you our next call comes from the line of Josh Crosswalk Jpmorgan. Please go ahead.
Josh Crosswalk: Hi, good morning, and thanks for taking my questions. Congratulations on all the progress during the quarter.
Josh Crosswalk: I'd like to start a question I'd like to start with a question on tariffs and I. Appreciate that you mentioned that tariffs are unlikely to have a material impact in the New Orleans, Joan but maybe if you could just clarify rich category.
Josh Crosswalk: Since Cvs Lidar shipments fall under.
Josh Crosswalk: Are they included within the HSN categories subject to the auto specific 25%.
Josh Crosswalk: To be effected by the rescue broker guidance.
Josh Crosswalk: Additionally, if you could just provide some insights into any preemptive actions. The company has taken to mitigate the impact of these tariffs that would be super helpful. Thanks, and I have a follow up.
Josh Crosswalk: So the funds we are concerned or to.
Our knowledge and our.
Josh Crosswalk: Analysis, we do not fall under the 25%.
Josh Crosswalk: We are an automotive component, which.
Josh Crosswalk: It does not suffer from these kinds of.
Josh Crosswalk: <unk> is not impacted by such titles, we are monitoring it we believe that.
Josh Crosswalk: The impact will be minimal hopefully.
Josh Crosswalk: After none.
Josh Crosswalk: We still think these targets.
Josh Crosswalk: In the making its not clear or did that needs subtle festival.
Josh Crosswalk: In order to understand where it falls, but again, we think the impact is.
Josh Crosswalk: Minimal to none, but maybe just to add.
Josh Crosswalk: <unk> has different facilities around the world.
Josh Crosswalk: Including in the U S by the way it also happened in Israel.
Josh Crosswalk: And then therefore, it gives us a very flexible and easy way to deal with any future.
Josh Crosswalk: In this manner.
Speaker Change: Understood. That's very helpful. Just as a follow up could you provide some more insights into your partnership with Nvidia on the Hyperion platform, what factors have positioned <unk> as a leader in this collaboration and are there any development milestone star technological challenges that still need to be addressed.
Speaker Change: Relatedly curious if you are to reference Lidar sensor for this platform as well.
Speaker Change: Happy to explain.
Speaker Change: I'm asked about this stopped it many times.
Speaker Change: I would be happy to actually provide more color. So basically there are two platforms that people are familiar with.
Speaker Change: When it relates to video.
Speaker Change: The more known.
Speaker Change: Platform.
Speaker Change: People kind of hear about it a lot.
Speaker Change: At the end.
Speaker Change: <unk> drive.
Speaker Change: Nvidia has two business models one is when they are providing an open source platform, where they feel they sell chips to different companies.
Speaker Change: <unk>.
Speaker Change: Basically any company, who wants to develop their own software stack can use the Nvidia drive open source and there are many lidar.
Speaker Change: Out of the drive and you probably saw many announcements about lateral companies partnering with Nvidia on the drive platform.
Speaker Change: It's very different than the period the purion platform.
Speaker Change: It is a full stack solution that Nvidia is offering themselves to customers so whenever a customer.
Speaker Change: Wants to buy the full stack solution from video it is Nvidia decision on which sense. Those are included in this plan.
Speaker Change: Paul.
Speaker Change: And.
Speaker Change: In the cases, where nvidia is offering a purion to customers outside of China. They are offering it's based on it will be still.
Speaker Change: And therefore, we are in basically daily discussions with <unk> and.
Speaker Change: <unk> and customers on the integration of the <unk> two into the platform and into these cuts.
Speaker Change: So basically you can see this is a very important milestone for us.
Speaker Change: In terms of our ability to scale through partners. We have the same engagement we've mobilized.
Speaker Change: As you are aware we are part also of the mobile like drive.
Speaker Change: A different platform.
Speaker Change: We're mobilized winning deals.
Speaker Change: Deal with demobilized drive.
Speaker Change: One platform that one customer.
Speaker Change: Is that they are alluring tool in the future.
Speaker Change: Every time, we are such a customer is speaking.
Speaker Change: Localized drive without a fleet and we expect that once.
Speaker Change: One of these customers will do the nomination of the platform.
Speaker Change: It will be able to benefit from.
Speaker Change: There was one specific customer, which we are engaged for a very long time now.
Speaker Change: Several that are doing this and we are expecting too.
Speaker Change: Stopped.
Speaker Change: The discussions as soon as well.
Speaker Change: Understood. Thanks, Omar another good luck.
Speaker Change: Thank you as a reminder, in order to ask a question raise your hand, using your mobile or desktop application and wait for your name to VNS.
Speaker Change: Our next question today comes from the line of Brian Casey with West Park Capital. Please go ahead.
Speaker Change: Sure.
Speaker Change: Hello, gentlemen, great quarter, great quarter.
Speaker Change: Jim.
Speaker Change: <unk> press release starts record revenues I know <unk> are a big part of that would you care to comment about even if their sample unit shipments was also a record quarter for product shipments using.
Speaker Change: Using a broad definition of properties.
Speaker Change: I don't know if it was record, but it was a very nice number.
Speaker Change: We are.
Speaker Change: Expecting the.
Speaker Change: To ramp up <unk> and have units also fiber.
Speaker Change: Basically.
Speaker Change: Increasing our capacity in order of magnitude.
Speaker Change: To be very impactful as we go.
Speaker Change: Forward.
Speaker Change: This year and definitely next year.
Speaker Change: Terrific.
Yes.
Speaker Change: When do you think.
Speaker Change: Let's say the first products unit shipment would come out of our fabric facility would that be before the end of 2025.
Speaker Change: It's going to be in the months.
Speaker Change: And a month okay.
Speaker Change: <unk>.
Speaker Change:
Speaker Change: We've touched on a lot of.
Speaker Change: Of the bigger questions in terms of your non auto efforts I think we've discussed before that.
Speaker Change: Industry participants people looking for solutions may be coming to end or has that been the case with these new opportunities where people have come to you and.
Speaker Change: As for the solution or are you starting to actively pursue opportunities on your own directly as well in terms of reaching out to those industries.
Speaker Change: Basically the our go to market is through integrators and distributors that are approaching customers themselves.
Speaker Change: There is a long list of applications, which each one requires.
Speaker Change: Specific but we'll see.
Speaker Change: The insights and user experience and basically we are providing these companies we.
Speaker Change: Support their needs in terms of.
Speaker Change: Integrating into the lighter, but they can they can you can benefit from the advantages of higher performance.
Speaker Change: The central to provide more value to their customers.
Speaker Change: As such we we barely needs to do or we don't need to do.
Speaker Change: Any specifics tailoring to any specific application.
Speaker Change: The latter is highly <unk>.
Speaker Change: Flexible in terms of its ability to provide different configurations.
Speaker Change: And therefore, it does not require us any meaningful effort in many cases.
Speaker Change: These kind of integrate tools.
Speaker Change: We are displacing existing solutions.
Speaker Change: So.
Speaker Change: In performance and by using our central they are able to provide a better value to the customer so even in terms of educating them or training them to understand how to work with library.
Speaker Change: Early needed.
Speaker Change: Okay terrific.
Yeah.
Speaker Change: That can be a sizeable opportunity and when you say displacing existing technologies I'm, assuming you're talking about cameras on our radar and things like that not necessarily other lidar solutions. Today actually there are we have found and I would say it's different industries that are already well educated about the benefits of using.
Speaker Change: Lighters and some of them are.
Are already using <unk>.
Speaker Change: Okay.
Speaker Change: With the products that we can also have them they can achieve more kpis and better products and basically better capabilities.
Speaker Change: Alright, perfect. Thank you for clarifying and expanding on those points. It was a really terrific quarter and a great start to the year congratulations.
Speaker Change: You very much.
Speaker Change: Thank you. Our next question comes from the line of Kevin Garrigan of Rosenblatt. Please go ahead.
Kevin Garrigan: Hey, Omar hail there thanks for taking my questions and congrats on the progress and going off of Mark's earlier question looking at your pipeline are you seeing a growing number of robo taxi RF skus or programs kind of in the early stages, whereas a lot of your pipeline is still geared toward our three programs.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Describe it this way you will have.
Speaker Change: The traditional Oems generally focusing on level three.
Speaker Change: And then you'll have.
Speaker Change: I would say more of the technology companies, who are trying to develop platforms.
Speaker Change: That could fit into different.
Speaker Change: So vehicles it could be <unk> it could be shuttles is could be trucks.
Speaker Change: And it could be also off road vehicles.
Speaker Change: So.
Speaker Change: Jim.
Speaker Change: I would say, it's kind of 50 50.
Speaker Change: There are many that.
Speaker Change: As you know some of the programs that we're working on are expected to launch already next year.
Speaker Change: And we do feel that the kind of the races started in the sense that.
Speaker Change: Once those cities will be populated with <unk> that will create more tension and stress.
Speaker Change: On some of the other players due to the congestion that might happen one they will start to scale.
Speaker Change: And therefore, we do see.
Speaker Change: <unk>.
Speaker Change: More and more level four players.
Speaker Change: No.
Speaker Change: Kind of looking for a solution that our automotive grade geopolitically kind of free.
Speaker Change: And providing them.
Speaker Change: I would say.
Speaker Change: Sure.
Speaker Change: There are some advantages related to our same store I think we talked about that in previous quarters about our ability to work in very challenging environments such as.
Speaker Change: Rain.
Animation.
Speaker Change: Some of the fleets that you might see today are using central allowing them to work in clear skies situation. They understand that once they will need to operate them at scale in more challenging environments. They need to find a solution that is much more robust.
Speaker Change: These are these are the new kpis that we're in a new stage, we're just talking about brands and the resolution is not enough.
Speaker Change: Customers are much more aware of industrialization.
Speaker Change: <unk>.
Speaker Change: Quality about resiliency.
Speaker Change: It sounds like buzzwords, but this is kind of like real life.
Speaker Change: I.
Speaker Change: I think eventually the product needs to be super reliable and they become much more aware of these topics than they were before and I think this is kind of where we shine and we see opportunities to.
Displace some of the sensors that are used so far for R&D purposes.
Speaker Change: Yes that makes a ton of sense, okay great.
Speaker Change: And then on on the growing traction in smart applications can you just talk more about how big you expect the market for smart applications to be comment.
Speaker Change: C introduced kind of spending more on developing software capabilities in this space.
Speaker Change: So there are different layers of software when you talk about non automotive applications.
Speaker Change: As you know in the automotive sector, we are developing the perception software which is needed for.
Speaker Change: Object detection and classification.
Speaker Change: Actually has a product running on the road today.
Speaker Change: BMW is running their level III, because not only with our lives are actually driving autonomously using our perception software you can imagine the level of <unk>.
Speaker Change: Therefore, excluding the theme that we had to get to.
Speaker Change: The automotive grade capabilities such as software.
Speaker Change: And that gives us a big advantage when it comes to disciplined other different applications that one high reliability.
Speaker Change: And our our uniqueness comes in our ability to provide perception.
Speaker Change: Over our sensor.
Speaker Change: Say, we tried to be.
Speaker Change: Separated form the layers that are related to the specific kpis that might be interesting for a very specific application is.
Speaker Change: Bridge collision or.
Speaker Change: Logistics kind of maneuvering. So this is these are where we are trying to cut barrier between us and the integrator and we tried to do something that is a.
Speaker Change: As scalable as possible.
Speaker Change: So I do believe that our software will continue to evolve and providing more tools that we can offer our partners use.
Speaker Change: In their applications.
Speaker Change: So I believe that our software is still going to be a very strong.
The offering to our partnering up to our partners who eventually.
Speaker Change: Doing the integration of their software to the to their customer environment.
Speaker Change: Perfect. Thanks, guys and congrats on the results.
Speaker Change: Thank you very much.
Speaker Change: You have no further questions. Please proceed.
Speaker Change: Hey.
Speaker Change: And with that thanks, again to everyone for joining us today.
Speaker Change: We look forward to updating you next quarter on the continued progress we are making here at <unk>.
Speaker Change: We will be participating in several investor events over the next months and look forward to speaking with many of you there.
Speaker Change: Thank you very much.
Speaker Change: Okay.