Q1 2025 Aeva Technologies Inc Earnings Call

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Speaker Change: Please standby your program is about to begin if you need assistance during your conference today. Please press Star zero.

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Jess: My name is Jess, and I will be your conference facilitator.

Jess: Good day my name is Jess and I will be your conference facilitator.

Jess: I would like to welcome everyone to Aeva Technologies' first quarter 2025 earnings conference call.

Jess: Welcome everyone to the Technology's first quarter 2025 earnings conference call.

Jess: During the opening remarks, all participants will be in a listen-only mode.

Jess: During the opening remarks, all participants will be in a listen only mode.

Jess: Following the opening remarks, we will conduct a question and answer session.

Jess: Following the opening remarks, we will conduct a question excuse me following their remarks, we will conduct a question and answer session as a reminder.

Jess: As a reminder, today's conference call is being recorded and simultaneously with.

Jess: Today's conference call is being recorded and simultaneously webcast.

Andrew Fung: I would now like to turn the call over to Andrew Fung, Senior Director of Investor Relations and Corporate Development.

I would now like to turn the call over to Andrew Fung Senior director of Investor Relations and corporate development. Andrew. Please go ahead.

Andrew Fung: Andrew, please go ahead. Thank you and welcome everyone to Aeva's first quarter 2025 earnings conference call. Joining on the call today are Soroush Salahian, Aeva's co-founder and CEO, and Saurabh Sinha, Aeva's CFO.

Speaker Change: Thank you and welcome everyone to <unk> first quarter 2025 earnings conference call joining.

Speaker Change: Joining on the call today are serious.

Bryce: Hey, Bryce co founder and CEO and Suraj.

Suraj: <unk> CFO.

Andrew Fung: Ahead of this call, we issued our first quarter 2025 press release and presentation, which we will refer to today and can be found on our investor relations website at investors.eva.com. Please note that on this call, we will be making forward-looking statements based on current expectations and assumptions, which are subject to risks and uncertainty. These statements reflect our views only as of today and should not be relied upon as representative of our views as of any subsequent date. These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from expectations.

Speaker Change: Ahead of this call we issued our first quarter 2025 press release and presentation.

Speaker Change: We will refer to today and can be found on our Investor Relations website.

Speaker Change: <unk> got Abi Dot com.

Speaker Change: Please note that on this call we will be making forward looking statements based on current expectations and assumptions.

<unk> are subject to risks and uncertainties. These statements reflect our views only as of today and should not be relied upon as representative of our views as of any subsequent date.

Speaker Change: Statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from expectations.

Andrew Fung: For further discussion of the material risks and other important factors that could affect our financial results, please refer to our filings with the SEC, including our most recent Form 10-Q and Form 10-K.

Speaker Change: Further discussion of the material risks and other important factors that could affect our financial results. Please refer to our filings with the SEC, including our most recent Form 10-Q and Form 10-K.

Andrew Fung: In addition, during today's call, we will discuss non-GAAP financial measures, which we believe are useful as supplemental measures of AVA's performance. These non-GAAP measures should be considered in addition to, and not as a substitute for, or in isolation from, GAAP research.

Speaker Change: In addition, during today's call, we will discuss non-GAAP financial measures, which we believe are useful as supplemental measures of performance fees.

Speaker Change: These non-GAAP measures should be considered in addition to and not as a substitute for or in isolation from GAAP results.

Andrew Fung: The webcast replay of this call will be available on our company website under the Investor Relations And with that, let me turn the call over to Soroush.

Speaker Change: The webcast replay of this call will be available on our company website under the Investor Relations link.

Sue ish: And with that let me turn the call over to Sue ish.

Soroush Salahian: Thank you Andrew and good afternoon everyone. It continues to be an incredibly exciting time at Aeva with our commercial momentum accelerating across a larger range of applications. While we continue to make strong progress in automotive, including on the Diamond Truck Production Program as well as the Global Top 10 Passenger OEM Development Program, where we have already achieved the first key milestone, Aeva's mission from inception has been to build a core FMCW technology platform to bring perception to a broad range of applications beyond just automotive. And in Q1, we delivered a number of accomplishments that further realized that mission.

Sue ish: Thank you Andrew and good afternoon, everyone.

Andrew: It continues to be an incredibly exciting time at Eva with our commercial momentum accelerating across a larger range of applications. While we continue to make strong progress in automotive, including on the Daimler truck production program as well as the global top 10 passenger OEM development program, where we have already achieved.

Sue ish: The first key milestone.

Sue ish: Mission from inception has been to build a core FMC W technology platform to bring perception to a broad range of applications beyond just automotive.

Sue ish: And in Q1, we delivered a number of accomplishments that further realize that mission.

Soroush Salahian: In industrial automation, we unveiled the EVE-1 line of high-precision sensors. which we believe can have the potential to be a breakthrough for the $4 billion per year laser displacement sensor market. EVE-1 utilizes our CoreVision LiDAR on Chip module to deliver submicron precision that is more reliable and flexible at a lower cost and size than current solutions in the market. This level of precision enables Aeva to go beyond LiDAR, as the industry has known it until now, and provide an offering that can have the opportunity to accelerate our growth into new industrial automation markets because of our differentiated FMCW technology.

Sue ish: In industrial automation, we unveiled to the E. One line of high precision sensors, which we believe can have the potential to be breakthrough for the $4 billion per year laser displacement sensor market.

Sue ish: Ive one utilizes our core vision lidar on chip module to deliver sub micron precision that is more reliable and flexible at a lower cost and size than current solutions in the market.

Sue ish: This level of precision enables teva to go beyond Lidar as the industry has known until now and provide an offering that can have the opportunity to accelerate that growth into new industrial automation markets because of our differentiated SFC W technology.

Soroush Salahian: We are seeing strong commercial traction with EVE-1 already, including securing multiple industry-leading industrial automation companies as our first strategic customers, and with orders of over 1,000 sensors booked and planned to ship later this year. Aeva also entered into a new market, Intelligent Transportation System, or ITS, with Census Gatso, a leader in traffic enforcement solutions, selecting Aeva as its exclusive LiDAR supplier for its new mobile speed detection products in Australia. Aeva was selected because of 40 LiDAR's ability to provide accurate velocity measurement for speed verification. We are seeing increasing interest from other leaders in the ITS market as well as infrastructure monitoring segments, and we plan to respond to this market with our existing sensor suite but with fine-tuned perception software specific to this market segment.

Sue ish: We are seeing strong commercial traction with E. One already including securing multiple industry, leading industrial automation companies as our first strategic customers and with orders of over 1000 sensors booked and plan to ship later this year.

Sue ish: Yeah.

Sue ish: <unk> also entered into a new market intelligent transportation system, our Ats with Sensus Gatto, our leader in traffic enforcement solutions selecting Eva as its exclusive lidar supplier for its new mobile speed detection products in Australia.

Sue ish: <unk> was selected because of <unk> ability to provide accurate velocity measurement for speed verification.

Sue ish: We are seeing increasing interest from other leaders in the <unk> market as well as well as infrastructure monitoring segments, and we plan to respond to this market with our existing sensor suite, but with fine tuned perception software specific to this market segment.

Soroush Salahian: Importantly, our momentum is opening new strategic opportunities to Aeva that we believe further validates our technology platform and market-leading FMCW performance as we scale in existing market segments such as automotive and industrial and enter a new one.

Sue ish: Importantly, our momentum is opening new strategic opportunities to Eva that we believe further validates our technology platform and market, leading mcw performance as we scale in existing market segments, such as automotive and industrial and enter new ones.

Soroush Salahian: Earlier today, we announced a strategic collaboration with a global Fortune 500 company's technology subsidiary, who plans to invest up to $50 million in Aeva, and together partner to help expand Aeva's end markets and deliver advanced perception-sensing products across multiple market segments, including in consumer electronics, industrial, and automotive. This leading technology company sees significant growth potential for Ava's Perception Platform adoption across many applications and believes our FMCW solution provides a strong path to penetrating multiple market segments with mass deployment. We're also selecting this company as our Tier 2 Manufacturing Partner for the Top 10 Passenger OEM Program previously announced.

Sue ish: Earlier today, we announced a strategic collaboration with a global Fortune 500 companies technology subsidiary, who plans to invest up to $50 million and Eva and together partner to help expand <unk> end markets and deliver advanced perception sampling products across multiple market segments, including in consumer electronics.

Sue ish: <unk> industrial and automotive.

Sue ish: This leading technology company see significant growth potential for Avon protection platform adoption across many applications and believes our SME CW solution provides a strong path to penetrating multiple market segments with mass deployment.

Sue ish: We're also selecting this company as our tier two manufacturing partner for the top 10 passenger OEM program previously announced we.

Soroush Salahian: We believe this new partnership will help further enhance our position for the broader mass deployment across future generations with the Global Top 10 Passenger OEM Development Program.

Sue ish: We believe this new partnership will help further enhance our position for the broader mass deployment across future generations with a global top 10 passenger OEM development program.

Soroush Salahian: So, in summary, we have accomplished a lot in a short few months, and there is much more ahead for Aeva. We have never been in a stronger position to continue executing on this significant interest in Aeva's unique FMCW technology.

Sue ish: So in summary, we have accomplished a lot in a short few months and there is much more ahead for Eva.

Sue ish: We have never been in a stronger position to continue executing on this significant interest enables unique mcw technology.

Soroush Salahian: Let's now discuss in more detail our recent business development. I am excited about Aeva's major expansion in the precision sensing market with the EVE 1 line of high-precision laser displacement sensors. Like our automotive solutions, EVE1 is powered by Aeva's CoreVision LiDAR on-chip modules, but specifically designed for high-volume and inline industrial automation applications, such as factory and process automation.

Sue ish: Let's now discuss in more detail our recent business developments.

Sue ish: Hi, I'm excited about a major expansion in the precision sensing market with the <unk> line of high precision laser displacement sensors.

Sue ish: Like our automotive solutions. Each one is powered by a bus core vision later on chip modules, but specifically designed for high volume and end line industrial automation applications, such as factory and process automation.

Soroush Salahian: As the industry's first FMCW-based displacement sensor, we believe Aeva's EVE-1 represents a breakthrough for industrial sensors. It brings a number of major performance, size, and cost advantages versus current solutions that primarily use the laser triangulation approach. For example, EVE-1D sensors are designed to measure down to submicron precision and, due to the coaxial measurement, can operate across a wide range of target standoff distances all the way up to 20 meters, all within the same compact and all-in-one form factor that combines measurement and data processing. And because of FMCW's immunity to interference from other sources of light, our sensors can maintain this high level of precision in a wide range of operating conditions.

Sue ish: As the industry's first mcw based displacement sensor, we believe <unk> represents a breakthrough for industrial sensing.

Sue ish: It brings a number of major performance size and cost advantages versus current solutions that primarily use the laser triangulation approach.

Sue ish: Example, <unk> sensors are designed to measure it down to sub micron precision and due to the clock show measurement can operate across a wide range of target standup businesses, all the way up to 200 meters.

Sue ish: All within the same compact and all in one form factor that combines measurement and data processing.

Sue ish: And because of FMC w's immunity to interference from other sources slide our sensors can maintain this high level of precision and a wide range of operating conditions.

Soroush Salahian: These advantages allow for faster, more precise inspection, giving customers high levels of throughput, improved quality control, and better cost efficiency in the manufacturing process. We are very encouraged by the significant commercial momentum and positive feedback we are already receiving with leading industrial automation companies due to our sensors' ability to address many of the shortcomings of traditional triangulation solutions. We have already signed on multiple strategic customers, including SIG-AG and LMI Technologies. These customers are leaders with more than 15% of the market share and volumes close to over 300,000 units per year just for these high-precision sensors.

Sue ish: These advantages allow for faster more precise inspection, giving customers high levels of throughput improved quality control and better cost efficiency in the manufacturing processes.

Sue ish: We are very encouraged by the significant commercial momentum and positive feedback we are already receiving with leading industrial automation companies due to our sensors ability to address many of the shortcomings of traditional triangulation solutions.

Sue ish: We have already signed on multiple strategic customers, including sick AG and LMI technologies.

Sue ish: These customers are leaders with more than 15% of the market share and volumes close to over 300000 units per year just for these high precision sensors. Our first orders of over 1000 sensors are already booked.

Soroush Salahian: Our first orders of over 1,000 sensors are already booked, and our initial shipments to select customers have already started. Given the strong reception of the market, we're working on ramping up our capacity to meet the growing demand for our EVON sensors with our existing manufacturing partners. In addition to our strategic first customers, we are engaged with multiple other leaders in this large but concentrated marketplace, where the top five participants represent around 60% of the market. The overall addressable market for these laser displacement sensors is greater than $4 billion today, with annual volumes of more than $2 million.

Sue ish: And our initial shipments to select customers have already started.

Sue ish: Given the strong reception of the market, we are working on ramping up our capacity to meet the growing demand for our <unk> sensors with our existing manufacturing partners.

In addition to our strategic first customers. We are engaged with multiple other leaders in this large but concentrated marketplace, where the top five participants represent around 60% of the market.

Sue ish: The overall addressable market for these laser displacement sensors is greater than $4 billion today with annual volumes up more than 2 million sensors.

Soroush Salahian: It is projected to grow meaningfully as laser displacement sensors are redefining precision manufacturing and quality control in automated production environments across many industries. From positioning during manufacturing to inspection of a wide range of components and products such as PCBs, metal sheets, or tire threads, to even packaging, laser displacement sensors are increasingly utilized in numerous factory and process automation applications. And because of Aeva's ability to directly measure velocity, we believe our technology will open up new capabilities that bring the possibility to expand the use of Aeva sensors across the industrial precision market. We are already exploring with existing customers to leverage this capability.

Sue ish: It is projected to grow meaningfully as laser displacement sensors are redefining precision manufacturing and quality control and automated production environments across many industries.

Sue ish: From positioning dairy manufacturing to inspection of a wide range of components and products, such as pcbs metal sheets or tire threats to even packaging laser displacement sensors are increasingly utilized in numerous factory and process automation applications.

Sue ish: And because of <unk> ability to directly measure velocity, we believe our technology will open up new capabilities that bring the possibility to expand the use of paper sensors across the industrial precision market, we are already exploring with existing customers to leverage this capability.

Soroush Salahian: Aeva is uniquely positioned for the highest-precision sensing market due to FMCW's ability to achieve the needed micron-level precision that is not possible with time-of-flight LiDAR. From metrology applications with Nikon to displacement sensors with SIG-AG and others, we see significant opportunity to continue growing in the large industrial robotics and factory automation market, leveraging our core vision LiDAR-on-chip module and our proprietary precision algorithms for the industrial applications.

Sue ish: Teva is uniquely positioned with a high precision sensing market due to his mcw's ability to achieve the needed micron level of precision that is not possible with Tom a slide later.

Sue ish: From metrology applications with Nikon to displacement sensors sick AG and others, we see significant opportunity to continue growing in the large industrial robotics and factory automation market leveraging our core vision later on chip module and our proprietary precision algorithms for the industrial applications.

Soroush Salahian: Let's now move to an update on our progress with the Global Top 10 Passenger OEM. We have officially kicked off our development program with the OEM and have already achieved the first milestone centered around integration. As we announced back in March, this OEM has selected Aeva for a LiDAR development program for its next generation global production vehicle platform, where we are jointly working closely on development and integration of Aeva's Atlas Ultra 40 LiDAR for use across a broad range of OEMs, global line of passenger vehicles. This is effectively the first development phase of a serial production program.

Sue ish: Let's now move to an update on our progress with a global top 10 passenger OEM.

Sue ish: We have officially kicked off our development program with the OEM and have already achieved the first milestone centered around integration.

Sue ish: As we announced back in March this OEM has selected Eva for light our development program for its next generation global production vehicle platform, where we are jointly working closely on development and integration of Avon at less Ultra 40, lidar for use across a broad range of Oems global lineup.

Sue ish: Does your vehicles.

Sue ish: This is effectively the first development phase of a serial production program.

Soroush Salahian: As you may recall, in addition to the development program, we also secured a letter of intent from this OEM toward the Series Production Program Award. We expect that upon successful completion of the development program, which is expected later this year, the engagement will transition to a large-scale global production program opportunity for Aeva. We are highly encouraged by the strong start to the development program and believe the overall progress we continue to make positions us well for the OEM's Series Production Award.

Sue ish: As you May recall in addition to the development program. We also secured a letter of intent from this OEM toward the serious reduction program Award.

Sue ish: We expect that upon successful completion of the development program, which is expected later this year the engagement will transition to a large scale global production program opportunity for Eva.

Sue ish: We're highly encouraged by the strong start to the development program and believe the overall progress we continue to make positions us well for the Oems to serious production award.

Soroush Salahian: I would now like to discuss the new strategic collaboration that we announced earlier today. Our partner will invest up to $50 million in Aeva through a combination of $32.5 million in Aeva common stock and up to $17.5 million in new joint product development revenue, as well as capital investment to bring production capacity online for Aeva's next generation solutions across automotive, industrial, and consumer applications. As part of this, the partner will take an approximately 6% stake of equity in Aeva. With our strategic partner, we plan to accelerate Aeva's product roadmap in industrial and expand into new consumer applications and markets, utilizing our partner's global manufacturing expertise and electronics innovation.

Sue ish: I would now like to discuss the new strategic collaboration that we announced earlier today.

Our partner will invest up to $50 million in Eva through a combination of $32 5 million enabled common stock and up to $17 5 million in new joint product development revenue as well as capital investments to bring production capacity online for next generation solutions across automotive industrial and consumer.

Sue ish: Applications as part of this partner will taken approximately 6% stake of equity and Eva.

Sue ish: With our strategic partner, we plan to accelerate <unk> product roadmap and industrial and expand into new consumer applications and markets utilizing our partners global manufacturing expertise and electronics innovation.

Soroush Salahian: As part of the agreement, Aeva will also select this company as our Tier 2 Manufacturing Partner for the Global Top 10 Passenger OEM Program. The OEM has extensive experience working with our strategic partner, and our partner's decision to invest and partner with Aeva is a major vote of confidence in the performance, maturity, and scalability of our line art. We believe this further positions Aeva to successfully transition our development program with the OEM into the serious production phase.

Sue ish: As part of the agreement Eva will also select this company as our tier two manufacturing partner for the global top 10 passenger OEM program.

Sue ish: <unk> has extensive experience working with our strategic partner and our partner's decision to invest and partner with Teva is a major vote of confidence in the performance maturity and scalability of our lidar.

Sue ish: We believe this further positions Eva to successfully transition our development program with the OEM into the series production phase.

Soroush Salahian: More broadly, this strategic collaboration marks another significant validation from a highly respected technology and manufacturing leader that Aeva's differentiated FMCW tech is a future for the industry. The company sees significant potential for our LiDAR to bring new levels of perception across many applications. They have significant experience with LiDAR, as well as have extensively evaluated all other LiDAR solutions. The decision to invest in Aeva and partner on joint development was driven by a partner's view that a scalable, high-performance FMCW LiDAR is key to enabling broad deployments of perception solutions across multiple use cases and multiple end markets, not only automotive, but also industrial and across consumer markets as well.

Sue ish: More broadly this strategic collaboration marks another significant validation from a highly respected technology and manufacturing leader that Eva differentiate at FMC W. Tech is a future for the industry.

Sue ish: The company sees significant potential for our lidar to bring new levels of perception across many applications.

Sue ish: I have significant experience with lidar as well as have extensively evaluated all other lidar solutions.

Sue ish: The decision to invest in Eva and partner on joined development was driven by our partners view that a scalable high performance FMC W. Lidar is key to enabling broad deployments of perception solutions across multiple use cases in multiple end markets not only in automotive, but also industrial and of course consumer markets as well.

Soroush Salahian: We are incredibly excited about this new strategic collaboration.

Sue ish: We are incredibly excited about this new strategic collaboration in the coming months, we plan to named the partner and both companies plan to jointly provide more details about our new partnership.

Soroush Salahian: In the coming months, we plan to name the partner and both companies plan to jointly provide more details about our new partnership. We look forward to jointly leveraging our respective strengths and to accelerate the adoption of Aeva's technology across a broad range of markets and applications.

Sue ish: We look forward to journey, leveraging our respective strengths and to accelerate the adoption of <unk> technology across a broad range of markets and applications.

Soroush Salahian: Turning now to Aeva's recent entrance into a new market, Intelligent Transportation Systems, or ITS. This is an area where there has been growing adoption of LiDAR to enable safer and more efficient roadways and other modes of transport. SAMHSA's GATSO recently selected Aeva as the exclusive LiDAR provider for its new mobile speed detection product in Australia. Our 40 LiDARs velocity measurement will provide speed verification to help address speeding problems and improve road safety at high-risk locations. Census CASO is a global leader in traffic safety enforcement solutions. Besides Australia, the company's solutions are in 60 countries with more than 60,000 deployments globally.

Sue ish: Turning now to <unk> recent entrance into a new market intelligent transportation systems or Ics.

Sue ish: This is an area, where there has been growing adoption of lidar to enable a safer and more efficient roadways and other modes of transport.

Sue ish: Census, Gaslog recently selected Eva as the exclusive lidar provider for its new mobile speed detection products in Australia.

Sue ish: Our 40, <unk> velocity measurement will provide speed verification to help address speeding problems and improve road safety and high risk locations.

Sue ish: <unk> is a global leader in traffic safety enforcement solutions. Besides Australia. The company solutions are in 60 countries with more than 60000 deployments globally.

Soroush Salahian: Initial deployments of Aeva sensors in Australia have begun and we look forward to supporting additional deployments in that country and exploring with sensors on rollouts in additional markets. Aeva is also engaged on a number of other ITS opportunities besides Census Gatso and are making strong progress on expanding in this area.

Sue ish: Initial deployments of <unk> sensors, and Australia have begun and we look forward to supporting additional deployments in that country and exploring with sensors on rollouts in additional markets.

Sue ish: It was also engaged on a number of other ideas opportunities. Besides census gas, so and are making strong progress on our spending in this area.

Saurabh Sinha: With that, let me now turn the call over to Saurabh who will share our financial results.

Sue ish: With that let me now turn the call over to Rob who will share our financial results.

Saurabh Sinha: Thank you, Soroush, and good afternoon, everyone. I would now like to discuss Aeva's first quarter 2025 financial results. Revenue in Q1 was $3.4 million. While still early in our commercialization, this was a record product revenue in the quarter and reflects the continued growth in commercial traction from automotive and industrial customers. The NRE revenues are driven primarily by the Daimler truck program. Q1 non-gap operating loss was $25.9 million, which is 19% lower year-over-year. This is consistent with our plan to reduce non-gap operating expense by 10% to 20% on a full-year basis. Gross cash use was $31.3 million in the quarter, comprised of operating cash use of $30.8 million and capital expenditures of $0.5 million.

Rob: Thank you Ruth and good afternoon, everyone I would now like to discuss <unk> first.

First quarter 2025 financial results.

Rob: Revenue in Q1 was $3 4 million.

Rob: While it's still early in our commercialization. This was a record product revenue in the quarter and reflects the continued growth in commercial traction from automotive and industrial customers.

Rob: The NRT revenues are driven primarily by the Daimler truck program.

Rob: Q1, non-GAAP operating loss was $25 9 million, which is 19% lower year over year.

Rob: This is consistent with our plan to reduce non-GAAP operating expense by 10% to 20% on a full year basis.

Rob: Gross cash use was 31 3 million in the quarter comprised of operating cash use of $30 8 million and capital expenditures of zero point $5 million.

Saurabh Sinha: Typically, our Q1 cash use is higher compared to rest of the year driven by timing of payments and working capital. We finished Q1 with total available liquidity of $206 million, which includes $81 million in cash, cash equivalents, and marketable securities, and $125 million in undrawn facility that is fully available to draw at Aeva's sole discretion. This liquidity position does not reflect our new strategic collaboration with a global Fortune 500 company's technology subsidiary. We anticipate closing the $32.5 million equity investment portion in the coming months, pending regulatory review and satisfaction of customary closing conditions. As we demonstrated in Q1, we remain thoughtful in how we invest.

Rob: Typically our Q1 cash use is higher compared to rest of the year driven by timing of payments and working capital.

Rob: We finished Q1 with total available liquidity of $206 million, which includes $81 million in cash cash equivalents and marketable securities and $125 million in Undrawn facility that is fully available to draw at Ava solar discretion.

Rob: This liquidity position does not reflect our new strategic collaboration with a global Fortune 500 companies technology subsidiary.

Rob: We anticipate closing the $32 5 million equity investment portion in the coming months pending regulatory review and satisfaction of customary closing conditions.

Rob: As we demonstrated in Q1, we remain thoughtful and how we invest we believe we can scale manufacturing, while continuing to win additional business and lower total spend.

Saurabh Sinha: We believe we can scale manufacturing while continuing to win additional business and lower total spend. And with the increasing commercial momentum across the board, we now have added confidence to increase our revenue range to at least by 80% to 100% growth on a full-year basis compared to 2024.

Rob: And with the increase in commercial momentum across the board. We now have added confidence to increase our revenue range to at least by 80% to 100% growth on a full year basis.

Rob: 2024.

Saurabh Sinha: This does not yet incorporate the strategic collaboration announced today, and we look forward to provide an update at our Aeva Day, as Soroush will share later.

Rob: This does not yet incorporate the strategic collaboration announced today and we look forward to provide an update at our Eva as Bruce will share later.

Soroush Salahian: Now let me hand the call back to Soroush who will provide closing remarks.

Speaker Change: Now, let me hand, the call back to <unk>, who will provide closing remarks.

Soroush Salahian: Thank you, Saurabh. Aeva is off to a very strong start in 2025, and I'm pleased with our progress. We continue to believe that we are at an inflection in our commercial momentum as we make significant progress with the Global Top 10 Passenger OEM and secure major customers across an expanding list of applications, from automotive to industrial automation and most recently ITS.

Thank you Rob Ava is off to a very strong start in 2025 and I am pleased with our progress. We continue to believe that we are at an inflection in our commercial momentum as we make significant progress with a global top 10 passenger OEM and secure major customers across an expanding list of applications from automotive to industrial automation.

Speaker Change: And most recently the Ics.

Soroush Salahian: With our new strategic collaboration with a global Fortune 500 company, we are in an even stronger position to accelerate the adoption of a differentiated technology platform to global scale and enter a new market. There is indeed a ton going on at Aeva, and we are just getting started.

With our new strategic collaboration with a global Fortune 500 company. We are in an even stronger position to accelerate the adoption of our differentiated technology platform to global scale and enter new markets.

Speaker Change: There is indeed, a ton going on an Eva and we are just getting started I am pleased to share that later this summer on July 31, we plan to host an Eva day in New York City, where we will dive deeper into our unique technology commercial traction, including with our customers and partners and overall outlook for the company. Please.

Soroush Salahian: I am pleased to share that later this summer, on July 31st, we plan to host an Aeva Day in New York City, where we will dive deeper into our unique technology, commercial traction, including with our customers and partners, and overall outlook for the company.

Soroush Salahian: Please stay tuned for more details to be shared in the coming weeks.

Speaker Change: Stay tuned for more details to be shared in coming weeks.

Soroush Salahian: In closing, I'd like to thank the Aeva team for delivering our amazing accomplishments in this quarter, and to all of our stakeholders for their ongoing support.

Speaker Change: In closing I'd like to thank the <unk> team for delivering our amazing accomplishments in this quarter and to all of our stakeholders for their ongoing support.

Operator: And with that, we will now move on to Q&A.

Speaker Change: And with that we will now move on to Q&A.

Speaker Change: Thank you at this time I would like to ask a question. Please press star one on your telephone keypad, you may remove yourself from the queue at any time by pressing star Q.

Operator: At this time, if you would like to ask a question, please press star one on your telephone keypad.

Operator: You may remove yourself from the queue at any time by pressing star.

Operator: We ask that you limit yourself to one question so that we can take as many questions.

Speaker Change: Ask that you limit yourself to one question. So that we can take as many questions as possible.

Operator: Once again, that is star one to ask a question.

Speaker Change: Once again that is star one to ask a question, we'll pause for a moment to allow questions to queue.

Operator: We'll pause for a moment to allow questions.

Speaker Change: Okay.

Colin Rusch: We'll move first to Colin Rusch with op-ed. Thanks so much, guys, and congratulations on all the progress.

Speaker Change: And we'll move first to Colin Rusch with Oppenheimer.

Colin Rusch: Thanks, So much guys and congratulations on all the progress.

Soroush Salahian: So, with this new partner, I know you're going to be sharing details over time, but can you talk a little bit about which incremental target markets you may be able to address with this partner as part of your manufacturing process? Hey, Colin. Yeah, happy to answer that. So, first of all, we're very excited about this, this partnership and the strategic partner we announced earlier. You know, as you mentioned, the ink is dry, but I can tell you at a high level, this is a very critical and I think crucial partnership that we're forming. I think our target clearly is here is not just to continue delivering, let's say, on our automotive only products.

Speaker Change: With this new partner I know youre going to be sharing details over time, but can you talk a little bit about.

Speaker Change: Which incremental target markets, you may be able to address with this partner.

Speaker Change: Part of your manufacturing process.

Speaker Change: Hey, Colin Yes, happy to answer that so first of all we're very excited about this partnership and a strategic partner we announced earlier.

Speaker Change: As you mentioned the anchors as dry, but I can tell you at a high level.

Speaker Change: This is a very critical and I think crucial partnership that performing I think.

Our target clearly is here is not just to <unk>.

Speaker Change: Continued delivering let's say on our automotive only products. This is not the only piece is actually to expand into new markets. This includes the consumer market application.

Soroush Salahian: This is not the only piece. It's actually to expand into new markets. This includes the consumer market application, which this partner has considerable experience in. This includes working on joint products across that and for new markets, especially also accelerating in the industrial applications. And then on top of that, we are also working with this partner, given their existing experience. They're a well-known automotive tier qualified partner in the space. They're already a tier two in the space. So, and they have a number of relationships with key OEMs, including with the top 10 passenger OEM that we announced earlier.

Speaker Change: This partner has considerable experience and this includes working on joint products across that and four new markets, especially also accelerating in the industrial applications and then on top of that.

Speaker Change: We are also working with this partner given their existing experience there are well known.

Speaker Change: Automotive tier qualified partner in this space, they're already at your two in this space, so and they have a number of relationships with key Oems, including with the top 10 passenger OEM that we announced earlier. So we have also decided as part of this too.

Soroush Salahian: So, we have also decided as part of this to select them and partner with them as our tier two manufacturing partner. For the top 10 passenger OEM program, which gives us that even added vote of confidence in our position in the automotive space with that top 10 passenger OEM. But also, I think what we're really excited about is the opportunities with their scale. They're part of a global Fortune 500 company, and we are excited to leverage that scale to take us into the next chapter with those other applications.

Speaker Change: To select them and partner with them as our tier two manufacturer partner for the top 10 passenger OEM program, which gives us even added vote of confidence.

Speaker Change: And our position in the automotive space with that top down passenger OEM, but also I think what we're really excited about is the opportunities with their scale their parts of the global 500 fortune.

Speaker Change: Unfortunately, as a company and.

Speaker Change: We are excited to leverage that scale to take us into the next chapter with those other.

Soroush Salahian: So, obviously, that is also strengthened by their commitment, which is real and in the form of strategic investment into the company, the $250 million. So, we are excited to kick this off together.

Speaker Change: The application. So obviously that has also strengthened by their commitments, which is real and in the form of <unk>.

Speaker Change: Strategic investments into the company to $250 million so.

Speaker Change: Are they excited to kick this off together.

Soroush Salahian: And then the second question is really around the relationship with sick. opportunity not only with them but with metrology and other industrial sensors.

Speaker Change: And then the second question is really around the relationship with sick.

Speaker Change: Yes.

Speaker Change: Pretty substantial opportunity not only with them, but with metrology and other industrial sensors.

Soroush Salahian: I guess how are you thinking about that relationship starting to evolve um considering the range of products that they offer and kind of the foundational technology that you guys can bring to to that provider. Yeah, absolutely. Look, I think, as you can see, we are also very excited about that. I think this is, I would say, this area and this market, especially for Aeva, I think is one that I think can be easily overlooked. I think this is an opportunity in a market that is massive. We're talking here about 2 million units per year just for high-precision sensors, and it's kind of a market that's here and now.

Speaker Change: I guess, how are you thinking about that relationship starting to evolve.

Speaker Change: Considering the range of products that they offer and kind of a foundational technology that you guys can bring to that platform.

Speaker Change: Yeah, absolutely look I think as you can see we are also very excited about that I think this is I would say this area in this end market, especially for Eva I think is one that I think can be easily overlooked.

Speaker Change: I think this is an opportunity in a market that is massive we're talking here about two.

Speaker Change: 2 million units per year, just for high precision sensors and.

Speaker Change: It's kind of a consolidated market with some of the key leaders in this space. So it's a market that's here and now and as you mentioned with sick. For example, we have a long standing strategic partnership they're one of our first us customers in this space.

Soroush Salahian: And as you mentioned, with SICK, for example, we have a long-standing strategic partnership. They're one of our first strategic customers in this space. They are a great partner for us to bring this technology to the market. One that we see is going to be disruptive in this space, and one that SICK is really invested and committed to making happen. So SICK by themselves do about close to 15% of this market share they own, close to 300,000 units. So that is something that is quite significant, and we see the opportunity over time to transition across maybe a significant portion, if not majority of the portion, of that portfolio to FMCW-based technology, which should also tell you the confidence that I think SICK has also in FMCW.

Speaker Change: They are a great partner for us to bring this technology to the market one that we see is going to be disruptive in this space.

Speaker Change: And one that <unk> has really invested and committed to making happen so sick by itself by themselves do about.

Speaker Change: Close to 15% of this market share they own close to 300000 units. So that is something that is quite significant and we see the opportunity to over time to transition across.

Speaker Change: Maybe a significant portion if not majority of the portion of that portfolio to FMC W. Based technology. We should also tell you the confidence that I think <unk> has also an FMC W. So thats I think is important.

Soroush Salahian: So that, I think, is important. We have been talking about the flexibility and performance capability of our platform, our perception platform, for quite some time, and now Ava has been delivering on that. Working from Atlas to Atlas Ultra, then to these EVE-1 precision sensors, we now have a platform that same exact core vision chip module with our proprietary precision algorithms can achieve sub-micron precision, which is something that's really powerful, but in a way that is small, definitely lower in cost, and more repeatable. So that allows, I think, folks like SICK and others to then implement this and move on.

We have been talking about the flexibility and performance capability of our platform our perception platform for quite some time and now <unk>.

Speaker Change: Delivering on that.

Speaker Change: Working from adverse to address Ultra then to this ive one precision sensors. We now have a platform that same exact core vision chip module with our proprietary precision algorithms can achieve sub micron precision, which is something that is precision which is something that's really powerful but in a way that is small.

Speaker Change: Paul.

Speaker Change: Definitely lowering cost and and more repeatable.

Speaker Change: So that allows I think folks like <unk> and others to then implement this and move on so from in this short period of time, we announced the one we are now actually have since then.

Soroush Salahian: So from this short period of time, we announced EVE-1. We are now actually have, since then, past few weeks, recently announced two strategic partners, SICK as well as LMI Technologies, which is another player in this space, especially including the 3D sensing space. And we have also booked our first over 1,000 units orders just in the past few short weeks. So that's, I think, already is giving us a lot of strong signals and traction and momentum in the market. And on top of that, we've already started delivering the first unit. So we expect that this trend to continue.

Speaker Change: Past few weeks recently announced two strategic partners.

As well as the LMI technologies, there's another player in this space, especially including the <unk> sensing space.

Speaker Change: And we have also booked our first.

Speaker Change: Over 1000 units of orders.

Speaker Change: And this past few short weeks, so thats I think already is giving us a lot of strong signals and traction and momentum in the market.

Speaker Change: And on top of that we've already started delivering the first units. So we expect that this trend to continue.

Soroush Salahian: We see that this 1,000 units is going to transition to tens of 1,000 units in the near term. And then from there, we hope to expand that to 100,000. And we think that by itself is considerable.

Speaker Change: See that <unk> thousand units kind of transition to tens of thousands units in the near term and then from there we hope to expand under 100000.

Speaker Change: And we think that by itself is considerable just to give you a rough idea of the size of the market in terms of annual revenues is about $4 billion from here at $4 billion annually go into six.

Soroush Salahian: Just to give you a rough idea of the size of the market in terms of annual revenues is about $4 billion annually going to $6 billion. And just taking a small percentage of that, we think is going to be very key and crucial for our company.

Speaker Change: And just taking it.

A small percentage of that we think is going to be.

Speaker Change: Very.

Speaker Change: Key and.

Speaker Change: Crucial for our company.

Operator: Thank you so much, you guys.

Speaker Change: Great. Thank you so much you guys.

Joseph Moore: We'll go next to Joe Moore with Morgan. Yeah, I also wanted to ask about the laser displacement sensor opportunity if you know how long does it take you to ramp new customers you've been working with SICK for a number of years now and Nikon other industrial companies like as you proliferate the technology, is there going to be a shorter lead time to bring on new customers and just, you know, give us a sense for how quickly this market can evolve for you. Yeah, absolutely. I think, you know, I would say it's the usual way, right?

Joe Moore: We'll go next to Joe Moore with Morgan Stanley.

Joe Moore: Yes, I also wanted to ask about the laser displacement sensor opportunity.

Joe Moore: As long as it take you to ramp new customers, you've been working with sick for a number of years now an icon in other industrial companies like as you proliferate. The technology is there going to be a shorter lead time to bring on new customers and just give us a sense for how quickly this market can evolve for you.

Joe Moore: Yes, absolutely I think it's.

Joe Moore: I would say, it's the usual way right. The first one as it takes time and from there. We also work with that to define the key product and Thats, what we have been doing with <unk> as a strategic partner, which has been a fantastic relationship and from there you know for example, working with LMI has been a much much shorter timeframe and we have other engagements in the pipe.

Soroush Salahian: The first one is it takes time. And from there, you know, we also work with that to define the key product. And that's what we have been doing with SICK as our strategic partner, which has been a fantastic relationship. And from there, you know, for example, working with LMI has been a much, much shorter timeframe. And we have other engagements in the pipeline that we see in there. As I mentioned, you know, a handful of players in space make about 2 million sensors per year, and SICK by themselves represent 15%. So others, you know, also represent in significant chunks.

Joe Moore: <unk> that we see in there as I mentioned, a handful of players in the space I'll make about 2 million sensors per year in sick by themselves represent 15%. So others also to present in significant Johnson we have.

Soroush Salahian: And we have quite a bit of interest, as you can imagine, in the space already for this. So we don't expect that each new engagement is going to be in a matter of years from here. We think it's much shorter than that, hopefully in a matter of months. And most importantly, now that we have a product that we are planning on scaling throughout this year, with these first 1,000 plus units, we are already seeing additional orders coming in. And as a response to that, we're actually building up and ramping up our manufacturing capacity to build that up for this market.

Joe Moore: Quite a bit of.

Joe Moore: Interest as you can imagine in this space already for this so we don't expect that each new engagement is going to be in a matter of years from here. We think is much shorter than that hopefully in a matter of months and most importantly, now that we have a product that we are planning on scaling throughout this year with these first 1000 plus units.

Joe Moore: We're already seeing additional orders coming in and as a response to that we're actually building up and ramping up our manufacturing capacity to build that up for this market.

Soroush Salahian: And I think, of course, separately, the strategic investment and what we talked about with our partner there is going to be helpful overall for us as we install our manufacturing capacity. So that's what I would say for this.

Joe Moore: And I think of course separately, the strategic investment and while we talked about.

Joe Moore: With our partner there is going to be helpful. Overall for us as we manage.

Joe Moore: Manufacturing capacity, so that's what I would say for for this I just want to add something.

Soroush Salahian: I just want to add something on the manufacturing capacity side. We set the goal earlier at the beginning of the year, which was, I guess, just a month or two ago, as a target to install a manufacturing capacity of 100,000 units per year. And the team is executing on this. That's coming along very nicely with the first piece of equipment on the line and that being brought up. So we are on track for that. And we have now more confidence and more fire in the cylinder to be able to go build that up, given this momentum in this industrial automation.

Joe Moore: On the manufactured capacity side.

We set the goal earlier at the beginning of the year, which was I guess just my.

Joe Moore: A month or two ago.

Joe Moore: As a target to install and manufacturing capacity.

Joe Moore: On 1000 units per year and the team is executing on this that's coming along.

Joe Moore: Very nicely with the first kind of a piece of equipment on the line and that being brought up. So we are on track for that and we have now more confidence and more kind of fire in the cylinder.

Joe Moore: Able to build that up given this momentum and this industrial automation space.

Joe Moore: Great. Thank you.

Joe Moore: Yeah.

George Giancarri: We'll go next to George Giancarri, Psychotic Originuity.

Speaker Change: We'll go next to George Jane carries at Canaccord Genuity.

Joe Moore: Right.

George Giancarri: Thank you for taking my questions.

Speaker Change: Hi, everyone. Thank you for taking my questions.

George Giancarri: Can you maybe talk about a little bit of potential momentum you have with other passenger OEMs in addition to the LOI you signed very recently, any continued conversations there?

Joe Moore: Can you maybe talk about a little bit of.

Speaker Change: Potential momentum you have with other passenger Oems in addition to.

Speaker Change: LOI you signed very recently.

Speaker Change: Continued conversations there.

Speaker Change: Alright, thank you.

Soroush Salahian: Yeah, George, happy to answer that. So obviously, you know, it's important to highlight that. We are, you know, our vision from the beginning has been perception for everything. We are building a platform across multiple applications. We are delivering on that vision. We have now a strong kind of, a strong traction with an automotive starting with Diamond Truck. I comment on that a little bit. That is a global production program that's been ongoing for well over a year and a half now or so. And we are, you know, in a billion dollar program opportunity for us as we go forward.

Speaker Change: Yes, George happy to answer that so obviously, it's important to highlight that we are.

Speaker Change: Our vision from the beginning has been perception for everything we are building a platform across multiple applications. We are delivering on that vision. We have now a strong kind of strong traction with an automotive starting with on the truck.

Speaker Change: I would comment on that a little bit that is a global production program, that's been ongoing for well over a year and a half an hour or so.

Speaker Change: We are in $1 billion program opportunity for us as we go forward, we are delivering on track across the milestones there.

Soroush Salahian: We are delivering on track across the milestones there. And, you know, part of that Austin Sonic capacity is also of course important for the Diamond Truck production program. So the team has been really delivering well. And, you know, we're seeing, you know, our products on the road with the Diamond Truck and Torque vehicles actually operating on the road. So that's very helpful.

Speaker Change: And part of that all since on the capacity as is also of course important for the down the truck production program. So the team has been really delivering well in.

Speaker Change: We are seeing our products on the road with the Diamond trucking torque vehicles actually.

Speaker Change: Operating on the road. So that's very helpful and separately from that on the you mentioned the top 10 passenger OEM, we have already kicked off the development program is kicked off.

Soroush Salahian: And separately from that on the, you mentioned the top 10 passenger OEM. We have already kicked off the development program. We've kicked off the development phase and achieved actually the very first milestones in this past month and a half or so. So that's very encouraging and everything has gone on track for us to be able to transition this program later on to the production phase.

Speaker Change: The enrollment phase and.

Speaker Change: Achieved actually the very first milestones in this past month and a half or so so that's.

Speaker Change: Very encouraging and everything is going on track for us to be able to transition. This program. They are onto the production phase, but this is not everything beyond that we have number of other engagements across both commercial vehicles, where we see significant value. We are seeing some of the folks that are working with others in time of flight space.

Soroush Salahian: But this is not everything. Beyond that, we have number of other engagements across both commercial vehicles where we see significant value. We are seeing some of the folks that are working with, let's say others in time of flight space, looking to transition to FMCW for long range commercial vehicle space, obviously given our relationship with Daimler and our experience there, qualifying a product for the trucking space, which is no easy feat. This is something that we are investing in and we see good opportunities there across multiple programs. But we're also engaged in other top passenger OEMs, other OEM RFQs that have also advanced what we believe we are kind of converging on towards some decisions.

Speaker Change: Looking to transition to FMC W. Four.

Speaker Change: Long range commercial vehicle space, obviously, given our relationship with Daimler and in our experience. They are qualifying new products for the trucking space, which is no easy feat. This is something that we are.

Investing in and we see good opportunities there across multiple programs, but we're also engaged in other top passenger Oems other OEM RF skews that are also advanced where we believe we are kind of converging on towards some decisions.

Soroush Salahian: So there is a number of opportunities, including really reputable and top OEMs across both passenger and commercial vehicles. They're not only limited to full autonomy stack. There are also some ADAS programs in there, which is quite interesting, especially given the size of the volumes. So overall, I think the opportunity ahead of us is quite massive. And I think we're gonna be hopefully in a position to be able to select where we're headed and focus on the right programs that align strategically with our business objectives, as well as our kind of key focus across Thank you.

Speaker Change: So there is a number of opportunities, including really reputable and top Oems across both passenger and commercial vehicles.

Speaker Change: Theyre not only limited to.

Speaker Change: Full autonomy stack. There are also some adas programs in there, which is quite interesting, especially given the size of the volumes. So overall I think the opportunity ahead of us is quite massive and I think we're going to be hopefully in a position to be able to select where we're headed and focus on the right programs that align strategically.

Speaker Change: With our business objectives, as well as our kind of key focus across.

Speaker Change: The markets.

George Giancarri: And maybe as a follow up, you mentioned that you're increasing the guidance to 80 to 100% growth, I think.

Speaker Change: Thank you and maybe as a follow up.

Speaker Change: Mentioned that you're increasing the guidance to 81% growth.

Saurabh Sinha: Can you just maybe describe again where that strength is coming from that led you to that increase? Hey, George. I'm happy to take that question. This is Sourabh. So, yeah, I mean, we have, as you are seeing, that we are having increased momentum, both on industrial as well as automotive markets. And this added, upping the guidance is coming from primarily the product revenue piece. And as I mentioned in my previous remarks, we had a record product revenue this quarter, and we are super excited as we execute on this.

Speaker Change: Can you just maybe describe again, where that strength is coming from that led you to that increase thank you.

Speaker Change: Yeah, John I'm happy to take that question because there are so yes, I mean, we have as you are seeing that we are having increased momentum.

Speaker Change: On industrial as well as automotive markets and this.

Speaker Change: Added upping the guidance is coming from primarily the product revenue piece and as I mentioned in my prepared remarks, we had a record product revenue this quarter and we are super excited as we execute on this.

Operator: Keep in mind, this guidance does not bake into the strategic collaboration we announced earlier in the day, that we will discuss more at the Ava Day on July 31st in New York City.

Speaker Change: Keep in mind this guidance does not bake into the strategic collaboration we announced earlier in the day that we will discuss more on the Ava day on July 30, <unk> in New York City.

Speaker Change: Thank you.

Operator: Once again, it is star 1 if you had a question.

Speaker Change: Once again it is star one if you had a question we will go next to Richard Shannon with Craig Hallum.

Richard Shannon: We will go next to Richard Shannon with Craig Howe.

Tyler Ron: Hi, this is Tyler Ron for Richard Shannon. I was wondering, when you're talking about increasing the volumes in the industrial market by 10x and calendar 25, how do we think about the revenue contribution with that? And are the gross margins here better than the corporate average? Yeah.

Speaker Change: Hi, This is Tyler on for Richard Shannon I was wondering when you were talking about increasing the volumes in the industrial market Tenex in calendar 'twenty, how do we think about the revenue contribution.

Speaker Change: And are the gross margins here better than the corporate average.

Speaker Change: Yeah.

Soroush Salahian: Hey, Tyler, this is Soroush. Happy to take on that. Of course, yes, Saurabh can add. So, to answer your question, first of all, the growth from there is coming actually from key customers we talked about. Obviously, since we made the analysis of these, one, as I mentioned, we have now signed on two Suji customers with over 1,000 units. So, if you look at from maybe revenue, Saurabh can comment on that, but generally, these are not insignificant. So, we're talking about in the millions of dollars in terms of contributions here already, and if you think about this market and the opportunities, what I can tell you generally, ASPs for these types of sensors and the demand, given the performance, is actually quite considerable in the thousands of dollars, not something that is as small as, let's say, a mass-market automotive ASP.

Speaker Change: Yes.

Speaker Change: Sure happy to take out of that of course Yasir al can add so.

Speaker Change: So.

Speaker Change: To answer your question and first of all that.

Speaker Change: The growth from there is coming actually from key customers as we talked about obviously since we made the analysis of these one as I mentioned, we have now signed on two strategic customers with over 1000 units.

Speaker Change: So if you look at it from a from a maybe revenues or I can comment on that but generally.

Speaker Change: These are not.

Speaker Change: Insignificant so we're talking about in the millions of dollars in terms of contributions here already.

And if you think about this market and the opportunities what I can tell you generally.

Speaker Change: Speeds for these.

Speaker Change: Types of sensors and the demand given the performance is actually.

Speaker Change: Quite considerable in the thousands of dollars not something that is.

Speaker Change: As as small as let's say a mass market automotive.

Saurabh Sinha: So, that, I think, given both the strength in the volumes, the opportunity in the hundreds of thousands of units, as well as the ASPs that are being in the thousands of dollars per unit, we think it's something that's quite important and interesting for us to look at. Yeah, I think only thing I'll add, we are making continuous improvement in our cost to manufacture products. And as we scale, we expect to start having healthy margins. And until then, gross margins may fluctuate in the near term. Awesome, that makes sense.

Speaker Change: Asp's, so that I think given both the strength in the volumes opportunity is hundreds of thousands of units as well as the asp's out of being in the thousands of units thousands of dollars per unit. We think is something that's quite.

Speaker Change: Important and interesting for us to to contribute I think yes.

Speaker Change: Yes, I think the only thing I'll add that we are making continuous improvements in our cost of manufactured products and as we scale, we expect to start having the margins and until then gross margins may fluctuate in the near term.

Speaker Change: Awesome that makes sense and then over what time do you expect to finish the manufacturing capacity ramp.

Soroush Salahian: And then over what time do you expect to finish the manufacturing capacity ramp? You mean the installation of the manufacturing capacity? Yes, you had said you were installing a machine and getting everything going for that. Yeah, yeah. So, this is this year, right? This is our goal. It's clear this year to install manufacturing capacity of about 100,000 units, and the team is working on that. We're moving on track to that.

Speaker Change: You mean, the installation of the manufacturing capacity.

Speaker Change: Yes.

Speaker Change: We're installing a machine and getting everything going for that yeah. So this is this year right. This is our goal is clear this year to install manufacturing capacity.

Speaker Change: 100000 units and the team is working on that we are moving on track to that so which is important for us as I mentioned earlier going from just by the way just for this laser disbursement precision sensing market.

Soroush Salahian: So, which is important for us, as I mentioned earlier, going from just, by the way, just for this laser displacement precision sensing market, 1,000 units to 10,000 units, and then from there to 100,000 units, we need this kind of capacity, and we need it soon. So, that's where the team is focused on.

Speaker Change: The Venus tens of housing units and that's something that is one of the <unk> units, we need this kind of capacity and the needed soon so thats, where the team is focused on.

Soroush Salahian: So, and this does not include, of course, all the programs we talked about, the automotive Awesome.

Speaker Change: So this does not include of course.

Some of the.

Speaker Change: All the programs, we've talked about the automotive side so.

Operator: Thank you for taking my questions.

Speaker Change: Awesome. Thank you for taking my questions.

Okay.

Suji DeSilva: We'll move next to Suji DeSilva with Ross.

Speaker Change: Well move next to Suzhou Silva with Roth capital.

Suji DeSilva: Hi Soroush, hi Saurabh, congrats on the progress here. Can you just recap for us, Soroush, the remaining milestones for the Global Top 10 Passenger OEM now that you've achieved this milestone? Yeah, Suji, happy to do that. So, look, I think that's a good question. Overall, it is very important that the work that we've been doing is understood very clearly, right? So, first of all, we kicked off the program. We have achieved the first milestones around vehicle integration. And from here, our work involves a number of activities around packaging and making sure the design of our sensor from a packaging standpoint fits across the OEM's global production platform for their multiple vehicle model lines, right?

Suzhou Silva: Hi, Rob Congrats on the progress here can you just recap for us through the remaining milestones for the global top 10 passenger OEM now that you've achieved this milestone.

Yes. There is you have to do that so look I think.

Speaker Change: I think that's a good question overall it is very important that the work that we've been doing is is understood very clearly right. So.

Speaker Change: First of all we kicked off a program we have achieved the first milestones around.

Speaker Change: Vehicle integration and from here.

Our work involves a number of activities around packaging and making sure the design of our sensor from a packaging standpoint.

Speaker Change: It's across the Oems.

Speaker Change: Global production platform for their multiple vehicle model lines right. So thats importance, obviously each vehicle may have different trends are different.

Soroush Salahian: So, that's important. So, obviously, each vehicle may have different trims or different integration studies to make that happen. But it's important to know that doesn't mean that we're customizing our product for every single one of these. It's just more of an integration activity to make sure that the same product fits nicely and according to all the specs to that. So, and that is very clear. It has to work to be done between now and later this year. So, we are not relying on some sort of major innovation or some major kind of sample releases or something like that to get there, which also is why it gives us that added confidence as we continue to execute with this OEM.

Speaker Change: The integration studies to make that happen, but it's important to note that doesn't mean that we're customizing a product for every single one of these is just more of integration activity to make sure that the the same product fits nicely and according to the all the specs to that so and that is very clear. It is work to be done between now and later this.

Speaker Change: This year.

So we're not relying on some sort of major innovation or some major.

Speaker Change: Uh huh.

Speaker Change: Kind of sample releases or something like that to get there and which also why is why it gives us that added confidence as we continue to execute with this OEM.

Soroush Salahian: And importantly, as mentioned, we have this also production letter of intent, which is a key vote of confidence in how the OEM sees and plans to partner with us as we transition from the development phase to the production phase. And lastly, as I mentioned, now that we have this... Strategic, Fortune 500 company on board with us as our partner.

Speaker Change: And importantly, as mentioned were.

Speaker Change: This also production letter of intent which is.

Speaker Change: A key vote of confidence in how the Oems and plans to to partner with us as we transition from the development phase to the production phase.

Speaker Change: And lastly, as I mentioned now that we have this.

Speaker Change: Strategic.

Speaker Change: Fortunate 500 company onboard with us as a partner.

Soroush Salahian: Both their strong commitments, their strong capability, their large balance sheet, their massive resources, working alongside us as our Tier 2 manufacturing partner, having that existing relationship with the Top 10 Passenger OEM, being a well-known player in the space, all of that is, I think, was a strategic move that we have made to also ensure that we have a very clear and good path to closing this program out. Okay.

Speaker Change: Both their strong commitments, they're strong capability, they're large balance sheet, they're massive resources.

Working alongside us as our tier two manufacturing partner.

Having that existing relationship with a top 10 passenger OEM being a well known player in this space. All of that is I think was a strategic move that we've made.

Speaker Change: Two.

Speaker Change: Also.

Speaker Change: Ensure that we have a very clear path to closing this program out.

Soroush Salahian: It just sounds like, reading between the lines of what you just said, Souresh, that one of the reasons this OEM chose you is because of the flexibility and how relatively smooth this multi-vehicle fitting will go because of the FMCW technology and your flexible design versus probably time of flight, which might be a little more tricky for each of the vehicles. Is that a fair statement? Yeah. Yeah, absolutely. And I can tell you, as a matter of fact, we are already discussing with this OEM and others, and especially with this OEM, around how we can work together, not just for this initial generation, this first generation of production platform across these multiple model lines, but how we can work together around new perception sensor products across future model lines, across future generations, which would have even larger program volume opportunities as we go along.

Speaker Change: Okay and just.

Sounds like reading between the lines of what you just said that that the.

Speaker Change: One of the reasons. This OEM chose us because of the flexibility and how relatively smooth. This multi vehicle fitting will go because of the FMC W technology, and you're flexible design versus probably time of flight, which might be a little more.

Speaker Change: Ricky for each of the vehicles is that a fair statement, yeah, yeah, absolutely and I can tell you as a matter of fact.

Speaker Change: We are already discussing.

Speaker Change: With this OEM and others.

Speaker Change: And especially with this OEM around how we can work together not just for this initial generation. This first generation of production platform across these multiple outlines.

Speaker Change: How we can work together around.

Speaker Change: New perception sensor products.

Speaker Change: At cross future mono lines across future generations, which would have even.

Larger program volume opportunities as we go along so having that conversation and having those engagements also our thing is something thats.

Soroush Salahian: So having that conversation and having those engagements also I think is something that's pretty important for us and is It's something that we are...

Speaker Change: Pretty important for us and.

Speaker Change: <unk> is something that we are.

Soroush Salahian: Excited to be happy And actually, that was my last question. In the Fortune 500 announcement, you do mention next-gen perception-sensing products. I think you hinted at it there. Maybe can you give us some ways to think about what that means in terms of the roadmap versus the LIDAR product you've had? Yeah, absolutely. So, you know, as part of this investment from this Fortune 500 company, it's in kind of a few different areas. One is equity stake into the company, about 6%, as we mentioned on the press release earlier. The other piece is collaborating together around joint new product development and, you know, new product development revenue, what we expect for Aeva, to bring new products into new markets, including in the industrial market, as well as working together around Enabling Aeva to enter new markets such as consumer, which I mentioned earlier.

Speaker Change: Excited to be having.

Speaker Change: And actually that was my last question.

Speaker Change: And the fortunate 500 announcement, you do mentioned Nextgen perception sensing products I think you hinted at it is there maybe can you give us some ways to think about what that means in terms of roadmap versus the lighter product event.

Speaker Change: Yeah, absolutely so as part of this.

Speaker Change: Investments from this fortune 500 company.

Speaker Change: A few different areas one is equity stake into the company about 6% as we mentioned on the press release and earlier.

The other piece is collaborate together around.

Speaker Change: <unk> new product development.

Speaker Change: New product development revenue, what we expect for Eva.

Speaker Change: Two.

Speaker Change: Bringing new products into new markets, including in the industrial market.

As well as.

Speaker Change: Working together around.

Speaker Change: Enabling able to enter.

Speaker Change: New markets, such as consumer, which I mentioned earlier, so that's what I.

Soroush Salahian: So that's what, you know, I can share at this point. And then lastly, obviously, working together also around manufacturing as a Tier 2 partner for this top 10 OEM. So it's multiple levels, which is why it's a strategic collaboration. So, but I think overall, we think this is also showcases how a kind of well-known partner in the space who has been, you know, really one of the leaders in, of course, technology, sensors, manufacturing, been looking at a number of players across the space. And after evaluating, pretty much everybody, including other LIDAR sensor makers, decided to partner with us with a strong commitment.

I can share at this point and then lastly, obviously working together also.

Speaker Change: Around.

Speaker Change: Manufacturing is a tier two partner for this top 10, OEM so it's multiple levels.

Speaker Change: Which is why it's a strategic collaboration so.

Speaker Change: But I think overall, we think this is also showcases how a well known partner in the space who has been.

Speaker Change: Really.

Speaker Change: One of the leaders in of course.

Speaker Change: Technology sensors manufacturing.

Speaker Change: <unk> been looking at a number of players across the space and after evaluating pretty much everybody, including other lidar sensor makers decided to partner with us with a strong commitment. So we think all of that is.

Soroush Salahian: So we think all of that is positive, of course, for Aeva, but we think also positive development for the industry as investments are happening.

Speaker Change: Positive of course for Ava, but everything else is.

Speaker Change: Positive buildup for the industry has.

Speaker Change: Investments are happening in the space.

Operator: It appears that we have no further questions at this time.

Speaker Change: It appears that we have no further questions. At this time. This will conclude avid technology's first quarter 2025 earnings conference call.

Operator: This will conclude Aeva Technology's first quarter 2025 earnings conference call.

Operator: We thank you for your participation.

Thank you for your participation you may disconnect at any time.

Operator: You may disconnect at any time.

Speaker Change: Yeah.

Speaker Change: Uh huh.

Speaker Change: Yeah.

Speaker Change: Yeah.

Speaker Change: [music].

Good day, my name is Jess and I will be your conference facilitator.

Jess: Good day my name is Jess and I will be your conference facilitator I would like to welcome everyone to the Technology's first quarter 2025 earnings conference call.

I would like to welcome everyone to Aeva Technologies first quarter 2025 earnings conference call.

During the opening remarks, all participants will be in a listen-only mode.

Jess: During the opening remarks, all participants will be in a listen only mode.

Following the opening remarks, we will conduct a question and answer session.

Jess: Following the opening remarks, we will conduct a question excuse me following their remarks, we will conduct a question and answer session.

As a reminder, today's conference call is being recorded in simultaneously with.

Jess: As a reminder, today's conference call is being recorded and simultaneously webcast.

I would now like to turn the call over to Andrew Fung, Senior Director of Investor Relations and Corporate Development. Andrew, please go ahead. Thank you and welcome everyone to Aeva's first quarter 2025 earnings conference call. Joining on the call today are Soroush Salahian, Aeva's co-founder and CEO, and Saurabh Sinha, Aeva's CFO. Ahead of this call, we issued our first quarter 2025 press release and presentation, which we will refer to today and can be found on our investor relations website at investors.aeva.com.

Jess: I would now like to turn the call over to Andrew Fung Senior director of Investor Relations and corporate development. Andrew. Please go ahead.

Speaker Change: Thank you and welcome everyone to <unk> first quarter 2025 earnings conference call joined.

Jess: Joining on the call today are serious.

Bryce: Hey, Bryce co founder and CEO and Suraj.

Speaker Change: <unk> CFO.

Speaker Change: Ahead of this call we issued our first quarter 2025 press release and presentation, which we will refer to today and can be found on our investor relations website at investors <unk> com.

Please note that on this call, we will be making forward-looking statements based on current expectations and assumptions. which are subject to risk and uncertainty. These statements reflect our views only as of today and should not be relied upon as representative of our views as of any subsequent date. These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from expectations.

Speaker Change: Please note that on this call we will be making forward looking statements based on current expectations and assumptions, which are subject to risks and uncertainties. These statements reflect our views only as of today and should not be relied upon as representative of our views as of any subsequent date.

Speaker Change: Statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from expectations.

For further discussion of the material risks and other important factors that could affect our financial results, please refer to our filings with the SEC, including our most recent Form 10-Q and Form 10-K.

Speaker Change: For further discussion of the material risks and other important factors that could affect our financial results. Please refer to our filings with the SEC, including our most recent Form 10-Q and Form 10-K.

In addition, during today's call, we will discuss non-GAAP financial measures, which we believe are useful as supplemental measures of Ava's performance. These non-GAAP measures should be considered in addition to, and not as a substitute for, or in isolation from GAAP research.

In addition, during today's call, we will discuss non-GAAP financial measures, which we believe are useful as supplemental measures of <unk> performance.

These non-GAAP measures should be considered in addition to and not as a substitute for or in isolation from GAAP results.

The webcast replay of this call will be available on our company website under the Investor Relations And with that, let me turn the call over to Soroush.

Speaker Change: The webcast replay of this call will be available on our company website under the Investor Relations link.

Serge: And with that let me turn the call over to Serge.

Thank you, Andrew, and good afternoon, everyone. It continues to be an incredibly exciting time at Aeva, with our commercial momentum accelerating across a larger range of applications. While we continue to make strong progress in automotive, including on the Diamond Truck Production Program, as well as the Global Top 10 Passenger OEM Development Program, where we have already achieved the first key milestone, Aeva's mission from inception has been to build a core FMCW technology platform to bring perception to a broad range of applications beyond just automotive. And in Q1, we delivered a number of accomplishments that further realized that mission.

Serge: Thank you Andrew and good afternoon, everyone.

Serge: It continues to be an incredibly exciting time at Eva with our commercial momentum accelerating across a larger range of applications. While we continue to make strong progress in automotive, including on the Daimler truck production program as well as the global top 10 passenger OEM development program, where we have already achieved.

Serge: <unk> the first key milestone.

Serge: Was mission from inception has been to build a core FMC W technology platform to bring perception to a broad range of applications beyond just automotive.

Serge: And in Q1, we delivered a number of accomplishments that further realize that mission.

In industrial automation, we unveiled the EVE-1 line of high-precision sensors. which we believe can have the potential to be a breakthrough for the $4 billion per year laser displacement sensor market. EVE-1 utilizes our CoreVision LiDAR on Chip module to deliver submicron precision that is more reliable and flexible at a lower cost and size than current solutions in the market. This level of precision enables Aeva to go beyond LiDAR as the industry has known it until now and provide an offering that can have the opportunity to accelerate our growth into new industrial automation markets because of our differentiated FMCW technology.

Serge: In industrial automation, we unveiled to the E. One line of high precision sensors, which we believe can have the potential to be breakthrough for the $4 billion per year laser displacement sensor market.

Serge: <unk> utilizes our core vision lidar on chip module to deliver sub micron precision that is more reliable and flexible at a lower cost and size than current solutions in the market.

Serge: This level of precision enables teva to go beyond Lidar as the industry has noted until now and provide an offering that can have the opportunity to accelerate our growth into new industrial automation markets because of our differentiated <unk> technology.

We are seeing strong commercial traction with EVE 1 already, including securing multiple industry-leading industrial automation companies as our first strategic customers, and with orders of over 1,000 sensors booked and planned to ship later this year. Aeva also entered into a new market, Intelligent Transportation System, or ITS, with Census Gatso, a leader in traffic enforcement solutions, selecting Aeva as its exclusive LiDAR supplier for its new mobile speed detection products in Australia. Aeva was selected because of 40 lidar's ability to provide accurate velocity measurement for speed verification. We are seeing increasing interest from other leaders in the ITS market as well as infrastructure monitoring segments, and we plan to respond to this market with our existing sensor suite but with fine-tuned perception software specific to this market segment.

Serge: We are seeing strong commercial traction with <unk>, one already including securing multiple industry, leading industrial automation companies as our first strategic customers and with orders of over 1000 sensors booked and plan to ship later this year.

Serge: <unk> also entered into a new market intelligent transportation system or it.

Serge: With Sensus Gatto, a leader in traffic enforcement solutions selecting Eva as its exclusive provider supplier for its new mobile speed detection products in Australia.

Serge: <unk> was selected because of <unk> ability to provide accurate velocity measurement for speed verification.

Serge: We are seeing increasing interest from other leaders in the <unk> market as well as well as infrastructure monitoring segments, and we plan to respond to this market with our existing sensor suite, but with fine tuned perception software specific to this market segment.

Importantly, our momentum is opening new strategic opportunities to Aeva that we believe further validates our technology platform and market-leading FMCW performance as we scale in existing market segments such as automotive and industrial and enter a new one.

Serge: Importantly, our momentum is opening new strategic opportunities to Eva that we believe further validates our technology platform and market, leading FMC W performance as we scale in existing market segments, such as automotive and industrial and entering new ones.

Earlier today, we announced a strategic collaboration with a global Fortune 500 company's technology subsidiary, who plans to invest up to $50 million in Aeva and together partner to help expand Aeva's end markets and deliver advanced perception sensing products across multiple market segments, including in consumer electronics, industrial, and automotive. This leading technology company sees significant growth potential for Ava's Perception Platform adoption across many applications and believes our FMCW solution provides a strong path to penetrating multiple market segments with mass deployment. We're also selecting this company as our Tier 2 Manufacturing Partner for the Top 10 Passenger OEM Program previously announced.

Earlier today, we announced a strategic collaboration with a global Fortune 500 companies technology subsidiary, who plan to invest up to $50 million and Eva and together partner to help expand <unk> end markets and deliver advanced perception sampling products across multiple market segments, including in consumer electronics.

Serge: <unk> industrial and automotive.

Serge: This leading technology companies see significant growth potential for Avon protection platform adoption across many applications and believes our FMC W. Solution provides a strong path to penetrating multiple market segments with mass deployment.

Serge: We're also selecting this company as our tier two manufacturing partner for the top 10 passenger OEM program previously announced.

We believe this new partnership will help further enhance our position for the broader mass deployment across future generations with the Global Top 10 Passenger OEM Development Program.

Serge: We believe this new partnership will help further enhance our position for the broader mass deployment across future generations with a global top 10 passenger OEM development program.

So, in summary, we have accomplished a lot in a short few months, and there is much more ahead for Aeva. We have never been in a stronger position to continue executing on this significant interest in Ava's unique FMCW technology.

Serge: So in summary, we have accomplished a lot in a short few months and there is much more ahead for Eva.

Serge: We have never been in a stronger position to continue executing on this significant interest enables unique <unk> technology.

Let's now discuss in more detail our recent business development. I am excited about Aeva's major expansion in the precision sensing market with the EVE 1 line of high-precision laser displacement sensors. Like our automotive solutions, EVE1 is powered by Aeva's CoreVision LiDAR on-chip modules, but specifically designed for high-volume and inline industrial automation applications, such as factory and process automation. As the industry's first FMCW-based displacement sensor, we believe Aeva's EVE-1 represents a breakthrough for industrial sensors. It brings a number of major performance, size, and cost advantages versus current solutions that primarily use the laser triangulation approach. For example, EVE-1D sensors are designed to measure down to submicron precision and, due to the coaxial measurement, can operate across a wide range of target standoff distances all the way up to 20 meters, all within the same compact and all-in-one form factor that combines measurement and data processes.

Serge: Let's now discuss in more detail our recent business developments.

Serge: I am excited about <unk> major expansion in the precision sensing market with the <unk> line of high precision laser displacement sensors.

Serge: Like our automotive solutions <unk> is powered by <unk> core vision later on chip modules, but specifically designed for high volume and end line industrial automation applications, such as factory and process automation.

Serge: As the industry's first ssw based displacement sensor, we believe <unk> represents a breakthrough for industrial sensing.

Serge: It brings a number of major performance size and cost advantages versus current solutions that primarily use the laser triangulation approach.

Serge: For example, <unk> sensors are designed to measure down to sub micron precision and due to the clock show measurement can operate across a wide range of target standup businesses, all the way up to 200 meters all within the same compact and all in one form factor that combines measurement and data processing.

And because of FMCW's immunity to interference from other sources of light, our sensors can maintain this high level of precision in a wide range of operating conditions. These advantages allow for faster, more precise inspection, giving customers high levels of throughput, improved quality control, and better cost efficiency in the manufacturing process. We are very encouraged by the significant commercial momentum and positive feedback we are already receiving with leading industrial automation companies due to our sensors' ability to address many of the shortcomings of traditional triangulation solutions. We have already signed on multiple strategic customers, including SIG-AG and LMI Technologies.

And because of FMC w's immunity to interference from other sources slide our sensors can maintain this high level of precision and a wide range of operating conditions.

Serge: These advantages allow for faster more precise inspection, giving customers high levels of throughput improved quality control and better cost efficiency in our manufacturing processes.

We are very encouraged by the significant commercial momentum and positive feedback we are already receiving with leading industrial automation companies due to our centers ability to address many of the shortcomings of traditional triangulation solutions.

Serge: We have already signed on multiple strategic customers, including sick AG and LMI technologies.

These customers are leaders with more than 15% of the market share and volumes close to over 300,000 units per year just for these high-precision sensors. Our first orders of over 1,000 sensors are already booked, and our initial shipments to select customers have already started. Given the strong reception of the market, we're working on ramping up our capacity to meet the growing demand for our EVON sensors with our existing manufacturing partners. In addition to our strategic first customers, we are engaged with multiple other leaders in this large but concentrated marketplace, where the top five participants represent around 60% of the market.

Serge: These customers are leaders with more than 15% of the market share and volumes close to over 300000 units per year just for these high precision sensors. Our first orders of over 1000 sensors are already booked at our initial shipments to select customers have already started.

Serge: Given the strong reception of the market, we are working on ramping up our capacity to meet the growing demand for our <unk> sensors with our existing manufacturing partners.

Serge: In addition to our strategic first customers. We are engaged with multiple other leaders in this large but concentrated marketplace for the top five participants represent around 60% of the market.

The overall addressable market for these laser displacement sensors is greater than $4 billion today with annual volumes of more than 2 million sensors. It is projected to grow meaningfully as laser displacement sensors are redefining precision manufacturing and quality control in automated production environments across many industries. From positioning during manufacturing to inspection of a wide range of components and products such as PCBs, metal sheets, or tire threads, to even packaging, laser displacement sensors are increasingly utilized in numerous factory and process automation applications.

Serge: The overall addressable market for these laser displacement sensors is greater than $4 billion today with annual volumes of more than 2 million sensors.

Serge: It is projected to grow meaningfully has laser displacement sensors are redefining precision manufacturing and quality control and automated production environments across many industries.

Serge: From positioning dairy manufacturing to inspection of a wide range of components and products, such as pcbs metal sheets or tire threads to even packaging laser displacement sensors are increasingly utilized in numerous factory and process automation applications.

And because of Aeva's ability to directly measure velocity, we believe our technology will open up new capabilities that bring the possibility to expand the use of Aeva sensors across the industrial precision market. We are already exploring with existing customers to leverage this capability. Aeva is uniquely positioned for the high-precision sensing market due to FMCW's ability to achieve the needed micron-level precision that is not possible with time-affliged LiDAR. From metrology applications with Nikon to displacement sensors with SIG-AG and others, we see significant opportunity to continue growing in the large industrial robotics and factory automation market, leveraging our core vision LiDAR on-chip module and our proprietary precision algorithms for the industrial applications.

Serge: And because of <unk> ability to directly measure velocity, we believe our technology will open up new capabilities that bring the possibility to expand the use of paper sensors across the industrial precision market, we are already exploring with existing customers to leverage this capability.

Serge: Teva is uniquely positioned with a high precision sensing market due to his mcw's ability to achieve the needed micron level of precision that is not possible with Tom a slide later.

Serge: From metrology applications with Nikon to displacement sensors with <unk> AG and others, we see significant opportunity to continue growing in the large industrial robotics and factory automation market leveraging our core vision later on chip module and our proprietary precision algorithms for the industrial applications.

Let's now move to an update on our progress with the Global Top 10 Passenger OEM. We have officially kicked off our development program with the OEM and have already achieved the first milestone centered around integration. As we announced back in March, this OEM has selected Aeva for a LiDAR development program for its next-generation global production vehicle platform, where we are jointly working closely on development and integration of Aeva's Atlas Ultra 40 LiDAR for use across a broad range of OEMs' global line of passenger vehicles. This is effectively the first development phase of a serial production program.

Speaker Change: Let's now move to an update on our progress with a global top 10 passenger OEM.

Speaker Change: We have officially kicked off our development program with the OEM and have already achieved the first milestone centered around integration.

Speaker Change: As we announced back in March this OEM has selected Eva for light our development program for its next generation global production vehicle platform, where we are jointly working closely on development and integration of Avon at less Ultra 40, lidar for use across a broad range of Oems global lineup.

Speaker Change: Does your vehicles.

Speaker Change: This is effectively the first development phase of a serial production program.

As you may recall, in addition to the development program, we also secured a letter of intent from this OEM toward the Series Production Program Award. We expect that upon successful completion of the development program, which is expected later this year, the engagement will transition to a large-scale global production program opportunity for Aeva. We are highly encouraged by the strong start to the development program and believe the overall progress we continue to make positions us well for the OEM's Series Production Award.

Speaker Change: As you May recall in addition to the development program. We also secured a letter of intent from this OEM toward the series production Program Award.

Speaker Change: We expect that upon successful completion of the development program, which is expected later this year the engagement will transition to a large scale global production program opportunity for Eva.

Speaker Change: We're highly encouraged by the strong start to the development program and believe the overall progress we continued to make positions us well for the Oems serious production award.

I would now like to discuss the new strategic collaboration that we announced earlier today. Our partner will invest up to $50 million in Aeva through a combination of $32.5 million in Aeva common stock and up to $17.5 million in new joint product development revenue, as well as capital investments to bring production capacity online for Aeva's next-generation solutions across automotive, industrial, and consumer applications. As part of this, the partner will take an approximately 6% stake of equity in Aeva. With our strategic partner, we plan to accelerate Aeva's product roadmap in industrial and expand into new consumer application and markets, utilizing our partner's global manufacturing expertise and electronics innovation.

Speaker Change: I would now like to discuss the new strategic collaboration that we announced earlier today.

Speaker Change: Our partner, we will invest up to $50 million in Eva through a combination of $32 5 million enabled common stock and up to $17 5 million in new joint product development revenue as well as capital investments to bring production capacity online for Ava next generation solutions across automotive industrial and consumer.

Speaker Change: Applications as part of this partner will taken approximately 6% stake of equity and Eva.

Speaker Change: With our strategic partner, we plan to accelerate <unk> product roadmap and industrial and expand into new consumer applications and markets utilizing our partners global manufacturing expertise.

Speaker Change: Electronic innovation.

As part of the agreement, Aeva will also select this company as our Tier 2 Manufacturing Partner for the Global Top 10 Passenger OEM Program. The OEM has extensive experience working with our strategic partner, and our partner's decision to invest and partner with Aeva is a major vote of confidence in the performance, maturity, and scalability of our LiDAR. We believe this further positions Aeva to successfully transition our development program with the OEM into the serious production phase.

Speaker Change: As part of the agreements Eva will also select this company as our tier two manufacturing partner for the global top 10 passenger OEM program. The OEM has extensive experience working with our strategic partner and our partner's decision to invest and partner with Teva is a major vote of confidence in the performance maturity and scale.

Speaker Change: Ability of our Lidar.

Speaker Change: We believe this further positions Eva to successfully transition our development program with the OEM into the series production phase.

More broadly, this strategic collaboration marks another significant validation from a highly respected technology and manufacturing leader that Aeva's differentiated FMCW tech is a future for the industry. The company sees significant potential for our LiDAR to bring new levels of perception across many applications. They have significant experience with LiDAR, as well as have extensively evaluated all other LiDAR solutions. The decision to invest in Aeva and partner on joint development was driven by a partner's view that a scalable, high-performance FMCW LiDAR is key to enabling broad deployments of perception solutions across multiple use cases and multiple end markets, not only automotive but also industrial and across consumer markets as well.

Speaker Change: More broadly this strategic collaboration marks another significant validation from a highly respected technology and manufacturing leader that haver differentiated FMC <unk> Tec is a future for the industry.

The company see significant potential for our lidar to bring new levels of perception across many applications. They have significant experience with lidar as well as have been extensively evaluated all other lidar solutions.

The decision to invest in Eva and partner on joined development was driven by our partners view that a scalable high performance FMC W. Lidar is key to enabling broad deployments of perception solutions across multiple use cases in multiple end markets not only in automotive, but also industrial and of course consumer markets as well.

We are incredibly excited about this new strategic collaboration.

Speaker Change: We are incredibly excited about this new strategic elaboration in the coming months, we plan to named the partner and both companies plan to jointly provide more details about our new partnership.

In the coming months, we plan to name the partner, and both companies plan to jointly provide more details about our new partnership. We look forward to jointly leveraging our respective strengths and to accelerate the adoption of Aeva's technology across a broad range of markets and applications.

Speaker Change: We look forward to journey, leveraging our respective strengths and to accelerate the adoption of <unk> technology across a broad range of markets and applications.

Turning now to Aeva's recent entrance into a new market, Intelligent Transportation Systems, or ITS. This is an area where there has been growing adoption of LiDAR to enable safer and more efficient roadways and other modes of transport. Census Gatso recently selected Aeva as the exclusive LiDAR provider for its new mobile speed detection products in Australia. Our 40 LiDARs velocity measurement will provide speed verification to help address speeding problems and improve road safety at high-risk locations. Census CASO is a global leader in traffic safety enforcement solutions. Besides Australia, the company's solutions are in 60 countries with more than 60,000 deployments globally.

Speaker Change: Turning now to <unk> recent entrance into a new market intelligent transportation systems or Etfs.

Speaker Change: This is an area, where there has been growing adoption of lidar to enable a safer and more efficient roadways and other modes of transport.

Speaker Change: Census, Gaslog recently selected Eva as their exclusive <unk> provider for its new mobile speed detection products in Australia.

Speaker Change: Our 40, <unk> velocity measurement will provide speed verification to help address speeding problems and improve road safety and high risk locations.

<unk> is a global leader in traffic safety enforcement solutions. Besides Australia. The company solutions are in 60 countries with more than 60000 deployments globally.

Initial deployments of Aeva sensors in Australia have begun, and we look forward to supporting additional deployments in that country and exploring with sensors on rollouts in additional markets. Aeva is also engaged on a number of other ITS opportunities besides Census Gatso and are making strong progress on expanding in this area.

Speaker Change: The initial deployments of <unk> sensors, and Australia have begun and we look forward to supporting additional deployments in that country and exploring with sensors on rollouts in additional markets.

Speaker Change: It was also engaged on a number of other ideas opportunities. Besides <unk> and are making strong progress on our spending in this area.

With that, let me now turn the call over to Saurabh who will share our financial results.

Speaker Change: With that let me now turn the call over to <unk>, who will share our financial results.

Thank you, Soroush, and good afternoon, everyone. I would now like to discuss Aeva's first quarter 2025 financial results. Revenue in Q1 was $3.4 million. While still early in our commercialization, this was a record product revenue in the quarter and reflects the continued growth in commercial traction from automotive and industrial customers. The NRE revenues are driven primarily by the Daimler truck program. Q1 non-gap operating loss was $25.9 million, which is 19% lower year-over-year. This is consistent with our plan to reduce non-gap operating expense by 10% to 20% on a full-year basis. Gross cash use was $31.3 million in the quarter, comprised of operating cash use of $30.8 million and capital expenditures of $0.5 million.

Speaker Change: Tanker solution and good afternoon, everyone I would now like to discuss <unk> first quarter 2025 financial results.

Speaker Change: Revenue in Q1 was $3 4 million.

Speaker Change: While it's still early in our commercialization. This was a record product revenue in the quarter and reflects the continued growth in commercial traction from automotive and industrial customers.

Speaker Change: The NRT revenues are driven primarily by the Daimler truck program.

Speaker Change: Q1, non-GAAP operating loss was $25 9 million, which is 19% lower year over year. This is consistent with our plan to reduce non-GAAP operating expense by 10% to 20% on a full year basis.

Speaker Change: Gross cash use.

Speaker Change: 31, 3 million in the quarter comprised of operating cash use of $30 8 million and capital expenditures of zero point $5 million.

Typically, our Q1 cash use is higher compared to rest of the year driven by timing of payments and working capital. We finished Q1 with total available liquidity of $206 million, which includes $81 million in cash, cash equivalents, and marketable securities, and $125 million in undrawn facility that is fully available to draw at Aeva's sole discretion. This liquidity position does not reflect our new strategic collaboration with a global Fortune 500 company's technology subsidiary. We anticipate closing the $32.5 million equity investment portion in the coming months, pending regulatory review and satisfaction of customary closing conditions. As we demonstrated in Q1, we remain thoughtful in how we invest.

Speaker Change: Typically our Q1 cash use is higher compared to rest of the year driven by timing of payments and working capital.

Speaker Change: We finished Q1 with total available liquidity of $206 million, which includes $81 million in cash cash equivalents and marketable securities and $125 million in Undrawn facility that is fully available to draw at Ava solar discretion.

Speaker Change: This liquidity position does not reflect our new strategic collaboration with a global Fortune 500 companies technology subsidiary.

Speaker Change: We anticipate closing the $32 5 million equity investment portion in the coming months pending regulatory review and satisfaction of customary closing conditions.

Speaker Change: As we demonstrated in Q1, we remain thoughtful and how we invest we believe we can scale manufacturing, while continuing to win additional business and lower total spend.

We believe we can scale manufacturing while continuing to win additional business and lower total spend. And with the increasing commercial momentum across the board, we now have added confidence to increase our revenue range to at least by 80% to 100% growth on a full-year basis compared to 2024.

Speaker Change: With the increase in commercial momentum across the board. We now have added confidence to increase our revenue range to at least by 80% to 100% growth on a full year basis compared to 2024.

This does not yet incorporate the strategic collaboration announced today, and we look forward to provide an update at our Aeva Day, as Soroush will share later.

Speaker Change: It does not yet incorporate the strategic collaboration announced today and we look forward to provide an update at our Eva as solution will share later.

Now, let me hand the call back to Soroush, who will provide closing remarks.

Speaker Change: Now, let me hand, the call back to <unk>, who will provide closing remarks.

Thank you, Saurabh. Aeva is off to a very strong start in 2025, and I'm pleased with our progress. We continue to believe that we are at an inflection in our commercial momentum as we make significant progress with the Global Top 10 Passenger OEM and secure major customers across an expanding list of applications, from automotive to industrial automation, and most recently, ITS.

Speaker Change: Thank you Rob Ava is off to a very strong start in 225 and I am pleased with our progress. We continue to believe that we are at an inflection in our commercial momentum as we make significant progress with a global top 10 passenger OEM and secure major customers across an expanding list of applications from automotive to industrial automation.

Speaker Change: And most recently the Ics.

With our new strategic collaboration with a global Fortune 500 company, we are in an even stronger position to accelerate the adoption of a differentiated technology platform to global scale and enter new markets. There is indeed a ton going on at Aeva, and we are just getting started.

Speaker Change: With our new strategic collaboration with a global Fortune 500 company. We are in an even stronger position to accelerate the adoption of our differentiated technology platform to global scale and enter new markets.

Speaker Change: There is indeed, a ton going on an Eva and we are just getting started I am pleased to share that later this summer on July 31.

I am pleased to share that later this summer, on July 31st, we plan to host an Aeva Day in New York City, where we will dive deeper into our unique technology, commercial traction, including with our customers and partners, and overall outlook for the company.

Speaker Change: Plan to host an Eva day in New York City, where we will dive deeper into our unique technology commercial traction, including with our customers our partners and overall outlook for the company.

Please stay tuned for more details to be shared in the coming weeks.

Speaker Change: Please stay tuned for more details to be shared in coming weeks.

In closing, I'd like to thank the Aeva team for delivering our amazing accomplishments in this quarter, and to all of our stakeholders for their ongoing support.

Speaker Change: In closing I'd like to thank <unk> team for delivering our amazing accomplishments in this quarter and to all of our stakeholders for their ongoing support.

And with that, we will now move on to Q&A.

Speaker Change: And with that we will now move on to Q&A.

At this time, if you would like to ask a question, please press star one on your telephone keypad.

Speaker Change: Thank you at this time I would like to ask a question. Please press star one on your telephone keypad, you may remove yourself from the queue at any time by pressing star Q.

You may remove yourself from the queue at any time by pressing star.

We ask that you limit yourself to one question so that we can take as many questions.

Speaker Change: Ask that you limit yourself to one question. So that we can take as many questions as possible.

Once again, that is star one to ask a question.

Speaker Change: Once again that is star one to ask a question, we'll pause for a moment to allow questions to queue.

We'll pause for a moment to allow questions.

We'll move first to Colin Rusch with Oppenheimer. Thanks so much, guys, and congratulations on all the progress. So with this new partner, I know you're going to be sharing details over time, but can you talk a little bit about which incremental target markets you may be able to address with this partner as part of your manufacturing process?

Speaker Change: And we'll move first to Colin Rusch with Oppenheimer.

Colin Rusch: Thanks, So much guys and congratulations on all the progress so with this new partner I know youre going to be sharing details over time, but can you talk a little bit about <unk>.

Colin Rusch: Which incremental target markets, you may be able to address with this partner.

Colin Rusch: Part of your manufacturing process.

Hey, Colin. Yeah, happy to answer that. So, first of all, we are very excited about this, this partnership and the strategic partner we announced earlier. You know, as you mentioned, the Inc. is dry, but I can tell you at a high level, this is a very critical and I think crucial partnership that we're forming. I think our target clearly is here is not just to continue delivering, let's say, on our automotive-only products. This is not the only piece. It's actually to expand into new markets. This includes the consumer market application, which this partner has considerable experience in.

Colin Rusch: Hey, Colin Yeah happy to answer that so first of all we're very excited about this partnership and a strategic partner we announced earlier.

Colin Rusch: As you mentioned the anchors as dry, but I can tell you at a high level.

Colin Rusch: This is a very critical and crucial partnership that performing I think.

Colin Rusch: Our target clearly is here is not just to <unk>.

Colin Rusch: Continued delivering let's say on our automotive only products. This is not the only piece is actually to expand into new markets. This includes the consumer market application.

Colin Rusch: This partner has considerable experience and this includes working on joint products across that and four new markets, especially also accelerating in the industrial applications and then on top of that.

This includes working on joint products across that and for new markets, especially also accelerating in the industrial applications. And then on top of that, we are also working with this partner, given their existing experience. They're a well-known automotive tier-qualified partner in the space. They're already a Tier 2 in the space. So, and they have a number of relationships with key OEMs, including with the top 10 passenger OEM that we announced earlier. So, we have also decided as part of this to select them and partner with them as our Tier 2 manufacturing partner for the top 10 passenger OEM program, which gives us that even added vote of confidence in our position in the automotive space with that top 10 passenger OEM.

Colin Rusch: We are also working with this partner given their existing experience they are well known.

Colin Rusch: Automotive tier qualified partner in this space they are already a tier two in the space, So and they have a number of relationships with key Oems, including with the top 10 passenger OEM that we announced earlier. So we have also decided as part of this too to select them and partner with them as our.

Colin Rusch: Our tier two manufacturer partner for the top 10 passenger OEM program, which gives us even added more confidence.

Colin Rusch: And our position in the automotive space with that top down passenger OEM, but also I think what we're really excited about is the opportunities with their scale their parts of the global 500 fortune.

But also, I think what we're really excited about is the opportunities with their scale. They're part of a global Fortune 500 company. And we are excited to leverage that scale to take us into the next chapter with those other applications. So, obviously, that is also strengthened by their commitment, which is real and in the form of strategic investment into the company, the $250 million. So, we are excited to kick this off together.

Colin Rusch: Fortunately as a company and we are excited to leverage that scale to take us into the next chapter with those other applications. So obviously that has also strengthened by their commitments, which is real and in the form of.

Colin Rusch: Our strategic investments into the company to $250 million so.

Colin Rusch: We are excited to kick this off together.

And then the second question is really around the relationship with sick. Imageology and other industrial sensors.

Okay.

Colin Rusch: And then the second question is really around the relationship with sick.

Colin Rusch: Yes.

Colin Rusch: Pretty substantial opportunity not only with them, but with metrology and other industrial sensors.

How are you thinking about that relationship starting to evolve considering the range of products that they offer and the foundational technology that you guys could bring to that project. Yeah, absolutely. Look, I think, as you can see, we are also very excited about that. I think this is, I would say, this area and this market, especially for Aeva, I think is one that I think can be easily overlooked. I think this is an opportunity, a market that is massive. We're talking here about 2 million units per year just for high-precision sensors. And it's kind of a consolidated market with some of the key leaders in this space.

Colin Rusch: I guess, how are you thinking about that relationship starting to evolve.

Colin Rusch: The range of products that they offer and kind of a foundational technology that you guys confirm to to that platform.

Colin Rusch: Yeah, absolutely look I think as you can see we are also very excited about that I think this is I would say this area in this end market, especially for Eva I think is one that I think can be easily overlooked.

Colin Rusch: I think this is an opportunity in a market that is massive we're talking here about.

Colin Rusch: 2 million units per year, just for high precision sensors.

Colin Rusch: And it's kind of a consolidated market with some of the key leaders.

So it's a market that's here and now. And as you mentioned, with SICK, for example, we have a long-standing strategic partnership. They're one of our first strategic customers in this space. They are a great partner for us to bring this technology to the market. One that we see is going to be disruptive in this space, and one that SICK is really invested and committed to making happen. So SICK by itself, by themselves, do about close to 15% of this market share they own, the close to 300,000 units. So that is something that is quite significant.

Colin Rusch: In this space. So it's a market that's here and now and as you mentioned with sick. For example, we have a long standing strategic partnership they're one of our first us customers in this space.

Colin Rusch: They are a great partner for us to bring this technology to the market one that we see is going to be disruptive in this space.

Colin Rusch: One that <unk> has really invested and committed to making happen so sick by itself by themselves do about.

Colin Rusch: Close to 15% of this market share they own close to 300000 units. So that is something that is quite significant and we see the opportunity to over time to transition across.

And we see the opportunity to, over time, to transition across maybe a significant portion, if not majority of the portion of that portfolio, to FMCW-based technology, which should also tell you the confidence that I think SICK has also in FMCW. So that, I think, is important. We have been talking about the flexibility and performance capability of our platform, our perception platform, for quite some time. And now Ava has been delivering on that, working from Atlas to Atlas Ultra, then to the EVE-1 precision sensors. We now have a platform that same exact core vision chip module with our proprietary precision algorithms can achieve sub-micron precision, which is something that is really powerful.

Maybe a significant portion if not majority of the portion of that portfolio to FMC W. Based technology. We should also tell you the confidence that I think <unk> has also an FMC W.

Colin Rusch: I think is important.

Colin Rusch: We have been talking about the flexibility and performance capability of our platform our perception platform for quite some time and now deliver.

Colin Rusch: Delivering on that.

Working from Atlas to address Ultra then to this ive one precision sensors. We now have a platform that same exact core vision chip module with our proprietary precision algorithms can achieve sub micron precision, which is something that is precision which is something that's really powerful but in a way that is small.

But in a way that is small, definitely lower in cost and more repeatable. So that allows, I think, folks like SICK and others to then implement this and move on.

Colin Rusch: Paul.

Speaker Change: Definitely lowering cost and and more repeatable.

Speaker Change: So that allows I think folks like <unk> and others to then implement this and move on so from in this short period of time, we announced the one we are now actually have since then.

So from in this short period of time, we announced EVE-1. We are now actually have, since then, past few weeks, recently announced two strategic partners, SICK as well as LMI Technologies, which is another player in this space, especially including the 3D sensing space. And we have also booked our first over 1,000 units orders just in the past few short weeks. So that's, I think, already is giving us a lot of strong signals and traction and momentum in the market. And on top of that, we've already started delivering the first unit. So we expect that this trend to continue.

Speaker Change: Past few weeks recently announced two strategic partners.

Speaker Change: As well as the LMI technologies, there's another player in this space, especially including the <unk> sensing space.

Speaker Change: And we have also booked our first.

Over 1000 units of orders.

Speaker Change: And this past few short weeks. So thats I think already is giving us a lot of strong signal them and traction and momentum in the market.

Speaker Change: And on top of that we've already started delivering the first units. So we expect that this trend to continue.

We see that this 1,000 units is going to transition to tens of thousands of units in the near term. And then from there, we hope to expand that to 100,000. And we think that by is considerable.

Speaker Change: See that <unk> unit is going to transition to tens of thousands units in the near term and then from there we hope to expand under 100000.

Speaker Change: And we think that by itself is considerable just to give you a rough idea of the size of the market in terms of annual revenues is about $4 billion from here a $4 billion annually go into six.

Just to give you a rough idea of the size of the market in terms of annual revenues is about $4 billion from here, $4 billion annually going to six. And just taking a small percentage of that, we think is going to be very key and crucial for our company. Great.

Speaker Change: And just taking it.

Speaker Change: A small percentage of that we think is going to be.

Speaker Change: Very.

Speaker Change: Okay key and.

Speaker Change: Crucial for our company.

Thank you so much, you guys.

Speaker Change: Great. Thank you so much you guys.

We'll go next to Joe Moore with Morgan. Yeah, I also wanted to ask about the laser displacement sensor opportunity if you know how long does it take you to ramp new customers you've been working with SICK for a number of years now and Nikon and other industrial companies like as you proliferate the technology, is there going to be a shorter lead time to bring on new customers and just, you know, give us a sense for how quickly this market can evolve for you. Yeah, absolutely. I think, you know, it's, it's, I would say it's, it's the usual way, right?

Joe Moore: We'll go next to Joe Moore with Morgan Stanley.

Yes.

Joe Moore: I wanted to ask about the laser displacement sensor opportunity.

How long does it take you to ramp new customers, you've been working with <unk> for a number of years now an icon in other industrial companies like as you proliferate. The technology is there going to be a shorter lead time to bring on new customers and just give us a sense for how quickly this market can evolve for you.

Joe Moore: Yes, absolutely I think.

Joe Moore: <unk>.

Joe Moore: I would say, it's the usual way right. The first one as it takes time and from there. We also work with that to define the key product and Thats, what we have been doing with <unk> as a strategic partner.

The first one is, is it takes time. And from there, you know, we also work with that to define the key product. And that's what we have been doing with SICK as our strategic partner, which has been a fantastic relationship. And from there, you know, for example, working with LMI has been a much, much shorter timeframe. And we have other engagements in the pipeline that we see in there. As I mentioned, you know, handful of players in space make about 2 million sensors per year, and SICK by themselves represent 15%. So others, you know, also represent in significant chunks.

Joe Moore: <unk> has been a fantastic relationship and from there you know for example, working with LMI has been a much much shorter timeframe and we have other engagements in the pipeline that we see in there as I mentioned, a handful of players in the space.

Joe Moore: About 2 million sensors per year in sick by themselves represent 15%. So others also to present in significant Johnson we have.

And we have quite a bit of interest, as you can imagine, in the space already for this. So we don't expect that each new engagement is going to be in a matter of years from here, we think it's much shorter than that, hopefully in a matter of months. And most importantly, now that we have a product that we are planning on scaling throughout this year, with these first 1000 plus units, we are already seeing additional orders coming in. And as a response to that, we're actually building up and ramping up our manufacturing capacity to build that up for this market.

Joe Moore: Quite a bit of.

Joe Moore: Interest.

Joe Moore: As you can imagine in this space already for this so we don't expect that each new engagement is going to be in a matter of years from here. We think is much shorter than that of hopefully a matter of months and most importantly, now that we have a product that we are planning on scaling throughout this year with these first.

Joe Moore: Plus units.

Joe Moore: We're already seeing additional orders coming in and as a response to that we're actually building up and ramping up our manufacturing capacity to build that up for this market.

And I think, of course, separately, the strategic investment and what we talked about with our partner there is going to be helpful overall for us as we install our manufacturing capacity. So that's what I would say for this.

Joe Moore: And I think of course separately, the strategic investment and while we talked about.

Joe Moore: With our partner there is going to be helpful. Overall for us as we manage our manufacturing.

Joe Moore: Actually about so that's what I would say for for this I just want to add something on.

I just want to add something on the manufacturing capacity side. We set the goal earlier at the beginning of the year, which was, I guess... and the team is executing on this. That's coming along very nicely with the first piece of equipment on the line and that being brought up. We are on track for that, and we have now more confidence and more fire in the cylinder to be able to go build that up, given this momentum in this industrial automation.

Joe Moore: The manufacturer capacity side.

Joe Moore: We set the goal earlier at the beginning of the year, which was I guess just a.

Joe Moore: A month or two ago.

Joe Moore: As a target to install and manufacturing capacity.

Joe Moore: 100000 units per year and the team is executing on this that's coming along.

Joe Moore: Very nicely with the first kind of a piece of equipment on the line and that being brought up so we are on track for that.

Joe Moore: We have now more confidence.

Joe Moore: More kind of fire in the cylinder.

Joe Moore: Be able to build that up.

Joe Moore: Given this momentum and this industrial automation space.

Great. Thank you.

We'll go next to George Giancarri with Acanic Originuity.

Speaker Change: We'll go next to George Jane carries at Canaccord Genuity.

Joe Moore: Right.

Thank you for taking my questions.

George Jane: Hi, everyone. Thank you for taking my questions.

Can you maybe talk about a little bit of potential momentum you have with other passenger OEMs in addition to the LOI you signed very recently, any continued conversations there? Thank you. Yeah, George, happy to answer that. So obviously, you know, it's important to highlight that. We are, you know, our vision from the beginning has been perception for everything. We are building a platform across multiple applications. We are delivering on that vision. We have now a strong kind of, a strong traction with an automotive starting with Diamond Truck. I comment on that a little bit. That is a global production program that's been ongoing for well over a year and a half now or so, and we are, you know, in a billion dollar program opportunity for us as we go forward.

Joe Moore: Can you maybe talk about a little bit of.

Joe Moore: Potential momentum you have with other passenger Oems in addition to the.

Joe Moore: LOI you signed very recently.

Joe Moore: Continued conversations there.

Scott Thank you.

Joe Moore: Yes, George happy to answer that so obviously it is important to highlight that we have.

Joe Moore: Sure.

Joe Moore: Our vision from the beginning has been perception for everything we are building a platform across multiple applications. We are delivering on that vision. We have now a strong kind of strong traction with an automotive starting with on the truck.

Joe Moore: I can comment on that a little bit that is.

Global production program, that's been ongoing for well over a year and a half an hour or so and we are in $1 billion program opportunity for us as we go forward, we are delivering on tracking across the milestones there.

We are delivering on track across the milestones there. And, you know, part of that Austin's on the capacity is also of course important for the Diamond Truck production program. So the team has been really delivering well. And, you know, we're seeing, you know, our products on the road with the Diamond Truck and Torque vehicles actually operating on the road. So that's very helpful.

Joe Moore: And part of that all since on the capacity as is also of course important for the down the truck production program. So the team has been really delivering well in.

Joe Moore: We are seeing our products on the road with the Diamond trucking torque vehicles actually operating.

Joe Moore: On the road. So that's very helpful and separately from that on the you mentioned the top 10 passenger OEM, we have already kicked off the development program is kicked off the development phase and.

And separately from that on the, he mentioned the top 10 passenger OEM. We have already kicked off the development program. We've kicked off the development phase and achieved actually the very first milestones in this past month and a half or so. So that's very encouraging and everything has gone on track for us to be able to transition this program later on to the production phase.

Joe Moore: Achieved actually the very first milestones in this past month and a half or so so that's.

Joe Moore: Very encouraging and everything is going on track for us to be able to transition. This program. They are onto the production phase, but this is not everything beyond that we have number of other engagements across both commercial vehicles, where we see significant value. We are seeing some of the folks are working with others in time of flight space.

But this is not everything. Beyond that, we have number of other engagements across both commercial vehicles where we see significant value. We are seeing some of the folks that are working with, let's say others in time of flight space, looking to transition to FMCW for long range commercial vehicle space, obviously given our relationship with Daimler and our experience there, qualifying your product for the trucking space, which is no easy feat. This is something that we are investing in and we see good opportunities there across multiple programs. But we're also engaged in other top passenger OEMs, other OEM RFQs that are also advanced where we believe we are kind of converging towards some decisions.

Joe Moore: Looking to transition to FMC W. Four.

Joe Moore: Long range commercial vehicle space, obviously, given our relationship with Daimler and in our experience. They are qualifying new products for the trucking space, which is no easy feat. This is something that we are.

Joe Moore: Investing in and we see good opportunities there across multiple programs, but we're also engaged in other top passenger Oems other OEM RF skews that are also advanced.

I believe we are kind of converging towards some decisions.

So there is a number of opportunities, including really reputable and top OEMs across both the passenger and commercial vehicles. They're not only limited to full autonomy stack. There are also some ADAS programs in there, which is quite interesting, especially given the size of the volumes.

Joe Moore: So there is a number of opportunities, including really reputable and top Oems across both passenger and commercial vehicles.

Joe Moore: Theyre not only limited to.

Joe Moore: Full autonomy stack. There are also some adas programs in there, which is quite interesting, especially given the size of the volumes. So overall I think the opportunity ahead of us is quite massive and I think we're going to be hopefully in a position to be able to select where we're headed and focus on the right programs that align strategically.

So overall, I think the opportunity ahead of us is quite massive. And I think we're gonna be hopefully in a position to be able to select where we're headed and focus on the right programs that align strategically with our business objectives, as well as our kind of key focus across Thank you.

Speaker Change: With our business objectives.

Joe Moore: As well as our kind of key focus across.

Speaker Change: The markets.

And maybe as a follow up, you mentioned that you're increasing the guidance to 80 to 100% growth, I think. Could you just maybe describe again where that strength is coming from that led you to that increase? Hey, George. I'm happy to take that question. This is Sourabh. So, yeah, I mean, we have, as you are seeing, that we are having increased momentum, both on industrial as well as automotive markets. And this added, upping the guidance is coming from primarily the product revenue piece. And as I mentioned in my previous remarks, we had a record product revenue this quarter, and we are super excited as we execute on this.

Speaker Change: Thank you and maybe as a follow up.

Speaker Change: You mentioned that you're increasing the guidance to 81% growth.

Speaker Change: Can you just maybe describe again, where that strength is coming from that led you to that increase thank you.

Speaker Change: Yes, John I'm happy to take that question because there are so yes, I mean, we have as you are seeing that we are having increased momentum.

Speaker Change: Both on industrial as well as automotive markets and this.

Speaker Change: Added upping the guidance is coming from primarily the product revenue piece and as I mentioned in my prepared remarks, we had a record product revenue this quarter and we are super excited as we execute on that keep.

Keep in mind, this guidance does not bake into the strategic collaboration we announced earlier in the day, that we will discuss more at the AVA day on July 31st in New York City. Thank you.

Speaker Change: Keep in mind this.

Speaker Change: Guidance does not bake into the strategic collaboration we announced earlier in the day that we will discuss more at the EBA day on July 30, <unk> in New York City.

Speaker Change: Thank you.

Once again, it is star 1 if you had a question.

Speaker Change: Once again it is star one if you had a question we will go next to Richard Shannon with Craig Hallum.

We will go next to Richard Shannon with Greg.

Hi, this is Tyler Ron for Richard Shannon. I was wondering, when you're talking about increasing the volumes in the industrial market by 10x and calendar 25, how do we think about the revenue contribution with that? And are the gross margins here better than the corporate average? Yeah.

Speaker Change: Hi, This is Tyler on for Richard Shannon I was wondering when you were talking about increasing the volumes in the industrial market Tenex in calendar 'twenty five how do we think about the revenue contribution.

Speaker Change: Are the gross margins here better than the corporate average.

Speaker Change: Okay.

Hey, Tyler, this is Soroush. Happy to take on that. Of course, yes, Saurabh can add. So, to answer your question, first of all, the growth from there is coming actually from key customers we talked about. Obviously, since we made the announcement of these, one, as I mentioned, we have now signed on two Suji customers with over 1,000 units. So, if you look at from maybe revenue, Saurabh can comment on that, but generally, these are not insignificant. So, we're talking about in the millions of dollars in terms of contributions here already. And if you think about this market and opportunities, what I can tell you generally, ASPs for these types of sensors and the demand, given the performance, is actually quite considerable in the thousands of dollars, not something that is as small as, let's say, a mass-market automotive ASP.

Speaker Change: Yes.

Speaker Change: <unk> happy to take out of that of course Yasir al can add so.

Speaker Change: No.

Speaker Change: To answer your question and first of all.

Speaker Change: The growth from there is coming actually from key customers as we talked about obviously since we made the analysis of these one as I mentioned, we have now signed on two strategic customers with over 1000 units.

Speaker Change: So if you look at it from a from a maybe revenues or I can comment on that but generally.

Speaker Change: These are not.

Speaker Change: Insignificant so we're talking about in the millions of dollars in terms of contributions here already.

Speaker Change: And if you think about this market and the opportunities what I can tell you generally.

Speaker Change: Speeds for these.

Speaker Change: Types of sensors and the demand given the performance is actually.

Speaker Change: Quite considerable in the thousands of dollars not something that is.

As as small as let's say a mass market automotive.

So, that, I think, given both the strength in the volumes, opportunities, the hundreds of thousands of units, as well as the ASPs, that it being in the thousands of dollars per unit, we think it's something that's quite important and interesting for us to look at. Yeah, I think only thing I'll add, we are making continuous improvement in our cost to manufacture products. And as we scale, we expect to start having healthy margins. And until then, gross margins may fluctuate in the near term. Awesome, that makes sense.

Speaker Change: Asp's, so that I think given both the strength in the volumes opportunity is hundreds of thousands of units as well as the asp's that are being in the thousands of units thousands of dollars per unit. We think is something that's quite.

Speaker Change: Important and interesting for us to to contribute I think yes.

Speaker Change: Yes, I think the only thing I would add we are making continuous improvements in our cost of manufactured products and as we scale, we expect to start having the margins and until then gross margins may fluctuate in the near term.

Speaker Change: Awesome that makes sense and then over what time do you expect to finish the manufacturing capacity ramp.

And then over what time do you expect to finish the manufacturing capacity ramp? You mean the installation of the manufacturing capacity? Yes, you had said you were installing a machine and getting everything going for that. Yeah, yeah. So, this is this year, right? This is our goal. It's clear this year to install manufacturing capacity of about 100,000 units, and the team is working on that. We're moving on track to that.

Speaker Change: You mean, the installation of the manufacturing capacity.

Speaker Change: Yes.

Speaker Change: We're installing a machine and getting everything go into that yeah. So this is this year right. This is our goal is clear this year to install manufacturing capacity.

Speaker Change: 100000 units and the team is working on that we are moving on track to that so which is important for us as I mentioned earlier going from just by the way just for this laser disbursement precision sensing market.

So, which is important for us, as I mentioned earlier, going from just, by the way, just for this laser displacement precision sensing market, 1,000 units to tens of thousands of units, and then from there to hundreds of thousands of units, we need this capacity and we need it soon. So, that's where the team is focused on.

Speaker Change: <unk> units to tens of thousands of units and that's something that is one of the <unk> units, we need this kind of capacity and the needed soon so thats, where the team is focused on.

So, and this does not include, of course, some of the other programs we talked about, the automotive.

Speaker Change: So this does not include of course.

Speaker Change: Some of them.

Speaker Change: All the programs, we've talked about the automotive site. So.

Thank you for taking my questions.

Speaker Change: Awesome. Thank you for taking my questions.

Speaker Change: Okay.

We'll move next to Suji DeSilva with Ross.

Speaker Change: We'll move next to Suzhou Silva with Roth capital.

Hi Soroush, hi Saurabh, congrats on the progress here. Can you just recap for us, Soroush, the remaining milestones for the global top 10 passenger OEM now that you've achieved this milestone? Yeah, Suji, happy to do that. So, look, I think that's a good question. Overall, it is very important that the work that we've been doing is understood very clearly, right? So, first of all, we kicked off the program. We have achieved the first milestones around vehicle integration. And from here, our work involves a number of activities around packaging and making sure the design of our sensor from a packaging standpoint fits across the OEM's global production platform for their multiple vehicle model lines, right?

Speaker Change: Hi, Rob Congrats on the progress here can you just recap for us through the remaining milestones for the global top 10 passenger OEM now that you've achieved this milestone.

Speaker Change: Yes. There is you have to do that so look I think.

I think that's a good question overall it is very important that the work that we've been doing is is understood very clearly right. So.

Speaker Change: First of all we kicked off a program we have achieved the first milestones around.

Speaker Change: Vehicle integration and from here our work involves.

Number of activities around packaging and making sure the design of our sensor from a packaging standpoint fits.

Speaker Change: <unk> across the Oems.

Global production platform for their multiple vehicle model lines right. So thats importance, obviously each vehicle may have different trends are different.

So, that's important. So, obviously, each vehicle may have different trims or different integration studies to make that happen. But it's important to know that doesn't mean that we're customizing our product for every single one of these. It's just more of an integration activity to make sure that the same product fits nicely and according to all the specs to that. So, and that is very clear. It has to work to be done between now and later this year. So, we are not relying on some sort of major innovation or some major kind of sample releases or something like that to get there, which also is why it gives us that added confidence as we continue to execute with this OEM.

Speaker Change: The integration studies to make that happen, but it's important to note that doesn't mean that we're customizing a product for every single one of these is just more of integration activity to make sure that the the same product fits nicely and according to the all the specs to that so and that is very clear. It is to work to be done between now and later.

Speaker Change: This year.

Speaker Change: So we are not relying on some sort of.

Speaker Change: Major innovation or some major.

Speaker Change: Ah kind of sample releases or something like that to get there.

Speaker Change: Which also why is why it gives us that added confidence as we continue to execute with this OEM.

And importantly, as mentioned, we have this also production letter of intent, which is a key vote of confidence in how the OEM sees and plans to partner with us as we transition from the development phase to the production phase. And lastly, as I mentioned, now that we have this... Strategic Fortune 500 company on board with us as our partner. Both their strong commitments, their strong capability, their large balance sheet, their massive resources, working alongside us as our Tier 2 manufacturing partner, having that existing relationship with the Top 10 Passenger OEM, being a well-known player in the space, all of that is, I think, was a strategic move that we have made to also ensure that we have a very clear and good path to closing this program out.

Speaker Change: And importantly, as mentioned we are we have this also production letter of intent which is.

Speaker Change: A key vote of confidence in how the Oems and plans to to partner with us as we transition from the development phase to the production phase.

Speaker Change: And lastly, as I mentioned now that we have this.

Speaker Change: Strategic.

Speaker Change: Fortunate 500 company onboard with us as a partner.

Both their strong commitments, they're strong capability, there, they're large balance sheet, they're massive resources.

Speaker Change: Working alongside us as our tier two manufacturing partner.

Speaker Change: Having that existing relationship with the top 10 passenger OEM being a well known player in this space. All of that is I think was a strategic move that we have made.

Speaker Change: Two.

Speaker Change: Also.

Speaker Change: Ensure that we have a very clear and good path to closing this program out.

Okay. It just sounds like, reading between the lines of what you just said, Soroush, that one of the reasons this OEM chose you is because of the flexibility and how relatively smooth this multi-vehicle fitting will go because of the FMCW technology and your flexible design versus probably time of flight, which might be a little more tricky for each of the vehicles. Is that a fair statement? Yeah. Yeah, absolutely. And I can tell you, as a matter of fact, we are already discussing with this OEM and others, and especially with this OEM, around how we can work together, not just for this initial generation, this first generation of production platform across these multiple model lines, but how we can work together around new perception sensor products across future model lines, across future generations, which would have even larger program volume opportunities as we go along.

Speaker Change: Okay. It sounds like reading between the lines of what you just said that that the.

Speaker Change: One of the reasons. This OEM chose us because of the flexibility and how relatively smooth. This multi vehicle fitting will go because of the FMC W technology, and you're flexible design versus probably time of flight, which might be a little more.

Tricky for each of the vehicles is that a fair statement, yes, yes, absolutely and I can tell you as a matter of fact.

We are already discussing.

Speaker Change: With this OEM and others.

Speaker Change: And especially with this OEM around how we can work together and not just for this.

Speaker Change: Fuel generation. This first generation of production platform across multiple model lines, but how we can work together around.

Speaker Change: New perception sensor products.

Speaker Change: At cross future mono lines across future generations, which would have even.

Speaker Change: Larger program volume opportunities as we go along so having that conversation and having those engagements also I think is something thats.

So, having that conversation and having those engagements also, I think, is something that's pretty important for us and is something that we are Excited to be happy And actually, that was my last question, Soroush, in the Fortune 500 announcement, you do mention next-gen perception sensing products. I think you hinted at it there. Maybe can you give us some ways to think about what that means in terms of the roadmap versus the wider product you've got? Yeah, absolutely. So, you know, as part of this investment from this Fortune 500 company, it's in kind of a few different areas.

Pretty important for us and.

Speaker Change: As is.

Speaker Change: That we are.

Speaker Change: Excited to be having.

Speaker Change: And actually that was my last question.

Speaker Change: And the fortunate 500 announcement, you do mentioned Nextgen perception sensing products I think you hinted at it is there maybe can you give us some ways to think about what that means in terms of roadmap versus the lighter product you bet.

Speaker Change: Yeah, absolutely so as part of this.

Investments from this fortune 500 company.

Speaker Change: On a few different areas one is equity stake into the company.

One is equity stake into the about 6%, as we mentioned on the press release earlier. The other piece is collaborating together around joint new product development and, you know, new product development revenue, what we expect for Aeva to bring new products into new markets, including in the industrial market, as well as working together around Enabling Aeva to enter new markets such as consumer, which I mentioned earlier. So that's what, you know, I can share at this point. And then lastly, obviously, working together also around manufacturing as a Tier 2 partner for this top 10 OEM.

Speaker Change: <unk>, 6% as we mentioned on the press release and earlier.

Speaker Change: The other piece is collaborate together around.

Speaker Change: Joint New product development.

New product development revenue, what we expect for Eva.

Speaker Change: Two.

Bring new products into new markets, including in the industrial market.

Speaker Change: As well as.

Speaker Change: Working together around.

Speaker Change: Enabling able to enter.

Speaker Change: New markets, such as consumer, which I mentioned earlier, so that's what I.

Speaker Change: I can share at this point and then lastly, obviously working together also.

Speaker Change: Around.

Speaker Change: Manufacturing is a tier two partner for this top 10, OEM so it's multiple levels.

So it's multiple levels, which is why it's a strategic collaboration. So, but I think overall, we think this is also showcases how a kind of well-known partner in the space who has been, you know, really one of the leaders in, of course, technology, sensors, manufacturing, been looking at a number of players across the space. And after evaluating, pretty much everybody, including other LiDAR sensor makers, decided to partner with us with a strong commitment. So we think all of that is positive, of course, for Aeva, but we think also positive development for the industry as investments are happening.

Speaker Change: Which is why it's a strategic collaborations so.

Speaker Change: But I think overall, we think this is also <unk>.

Speaker Change: <unk>, how a well known partner in the space who has been.

Really.

One of the leaders in of course.

Speaker Change: Technology sensors manufacturing.

Speaker Change: <unk> been looking at a number of players across the space and after evaluating pretty much everybody, including other lidar sensor makers decided to partner with us with a strong commitment. So we think all of that is.

Speaker Change: Positive of course for Ava, but everything else is.

Speaker Change: Positive buildup for the industry has.

Speaker Change: Investments are happening in the space.

It appears that we have no further questions at this time.

Speaker Change: It appears that we have no further questions. At this time. This will conclude avid technology's first quarter 2025 earnings conference call.

This will conclude Aeva Technology's first quarter 2025 earnings conference call. We thank you for your participation.

You may disconnect at any time.

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