Cepton (CPTN) 28 Mar 242023 Q4 Earnings call transcript

Greetings, and welcome to the Q4 and Full Year 2023 Cepton Business Update and Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Dennis Chang, Interim CFO. Thank you, Dennis.

You may begin.

to and Quarter Business welcome XXXX Full and Call Earnings Update. you, Cepton's and Fourth Year Thank With me today Executive Officer; are Jun Pei, Mitch Chief Co-Founder Hourtienne, Commercial Officer. and and Chief

unaudited accordance we like the regarding the would slides and remind financial refer expressed U.S. our call financial call. Actual our contained to Exchange with in uncertainties accompany a statements to are are call, to in earnings expected and statements presentation These filings forward-looking for current in measures results release. our periods. financial as of harbor be from future comments non-GAAP GAAP. with based performance described should in or may everyone those Securities including expectations the U.S. subject The non-GAAP that during relating number or and on statements in release a the During substitute differ earnings discussed operational to statements our safe those for future non-GAAP included due made the release. I Reconciliations that measures are or materially periods those may forward-looking GAAP for this earnings may release measures earnings other include in not factors, the risks, considered today's and or our of Commission. call to these the this and implied by in company's measures the conference for prepared forward-looking performance statements and superior to company's

by future to result law. events, required update as not these are statements of commitment We a any except undertaking as

earnings find replay accompany slides as that as this and call being As webcast recorded, a is presentation this quick and release this www.investors.cepton.com. the you well at call can of reminder, the call

turn over call to Jun. would I to like Now the

Quarter and afternoon, Year Thank Call. Fourth and Thank you for Cepton's you, Dennis, everyone. Full Earnings joining good XXXX

bit financial quite of industry the review and with these a news We months, results past and a within will business Cepton. update few you. There's our provide though regarding specifically

on guidance to FY us congratulate our revenue X These at at the record like the revenue and our forefront Cepton exceeding $XX.X our major 'XX with product, accomplishments First, XXXX. LiDAR growth Ultra a of I'd launch for team are that keeps CES new million in this preparing recorded of with industry. us

enables on at CES Ultra XX% or First, to Cepton at in world's demonstrated and represents detection At technology, Ultra-high-resolution impact. adaptive up the meters of with various enhance MagnoSteer, with imaging consumption. This blend chipset significantly to cloud and core, deliver for infrastructure alongside but an a reliability, applications. just cost, SoC adoption of our viable cost making solution marvel, not quality performance, technology, long-range slimmest LiDAR interest and appeal the is Cepton features point Ultra LiDAR. vehicle a leverages long its technological market a across being long-range our to next-generation and while latest a other distinction strategic automotive, boasting XXX designed Ultra product, maintaining This and into software regions LiDAR advanced various aerodynamic balance also power remarkable definable Pinnacle minimizing of reducing range Ultra of reflectivity. locations, mass optimal of XXXX. Cepton design a Ultra seamless esthetic proprietary smart footprint integration

partnerships government. by was implications the which to industry, LiDAR In opportunity U.S. has company military XXXXH This Chinese believed on a affiliated considerable be is the and defense tensions piece and this the significant national many of and U.S. significant for such concerns. security has in January military XX, Chinese a business mitigate partnerships firms XXXX, under opportunity to highlights transactions companies reassess on risks global that We has or the event aiming a supply significant prominent believe to company. engaging entities LiDAR a added geopolitical listed for American strategies associated designation, with with list corporations a with and prompted their Chinese development creates that underscored complexities our compliance, the sectors a category. This and with for catalyst and news associated Moving edge competitive chain to industry of to for growth risks Cepton. development

as for a commitment As Cepton away reinforces from in and sourcing technology XXXXH from a our a the uncertainties, to also potential supplier as operations and partner to secure our has industry stakeholders navigate the leader a seek adhering posed our the international but and position U.S. shift partners alternatives as list. on LiDAR by in highlights LiDAR. only and geopolitical trusted the safeguarding entities sector. not from company to risks This emerged regulations viable the

Our competitive avenues reliable challenging offer LiDAR advantage market supply times growth new collaboration. has these solidified our opened and presence further to amidst for and

indication that equipment that has production its offerings. And from to product briefly rescope the XX, all informed ADAS some Koito upon GM canceled. purchase a Koito Koito of shareholder, as our December orders the and X outstanding want on have in a the Lastly, series XXXX, were Koito, original to On us disclosed X-K. to series from both I awarded manufacturing, Tier decided and our in to touch award the details recent been manufacturer that relate letter result, news which award Form Series cancellation more partner production the company production

acquire program Cepton December the can Koito via assistance of definitive or currently interest with committee consummated. advisers. to indication of will Cepton strategic indication of a other of related with investment As owned Directors No interest delay the potential that recovery options by is shares Board transaction any among is cancellation proposal we any initiated to financial transaction XXX% have or Koito. be legal be project XXXX, cost currently special a and that Cepton's from of we given program. On a evaluating Koito's other changes, respect eventually assurance of not customary, existing to when announced secure received an XX, from outstanding actions an to automotive nonbinding

series in remains opportunities pursuing to have delivered we for in another are remains continuing automotive business and in and a over discussed the efforts it win position horizon. yet programs. in Mitch decisions turn production on good with With As award revenue. on customer prior for record with steadfast our to that, our to quarters, quarter setting build details sourcing I'll we additional Cepton

companies to attention Since call, Thank Chinese dramatic of has previously, of Cepton last you, Jun. macro against our industry. increase more In demonstration the earnings importantly, launch events part the Ultra received the LiDAR automotive but product. a and mentioned from new our due

with of RFQs. made top top a industry's have open we Previously automotive global significant XX is OEM. one strides Specifically, the mentioned

solution the automotive X using demonstrations an particular for the consider of other partner The for in solidify Cepton-Koito Koito technology. discussions the Ultra samples top with automotive Furthermore, LiDAR to our strategy in-depth collaboration winning have OEMs product mass is first automotive well automotive production a starting become solutions. titan other their top one game of recent driving B to go-to-market as obvious they of customers changer with and factors as sustainable an with our OEMs. accelerating launches become Our our Seton RFQ combination over has as been advancing this of supply competing as Tier Koito as

It's their new learning starts, incorporating LiDAR decisions. safely provides. rescoping ADAS going tremendous companies a clear have can just before launch to sustain of launch time car OEMs systems, sourcing advantages several is becoming the supplier, Having paramount LiDAR which that this curve OEM this Of that delays course, as some is false not refine seen and a away. is of But new adoption we matter it technology.

able filed to Cepton Koito soon the X-K, Next, we the on work of recently with production an OEM this any notification announcements. we're disclose details be more as together series an but the will of project disclosed outside Today, X-K OEM not they those and public disclosing award. forthcoming in

industrial made In addition highlight XXXX. major recent Nova our our vehicles significant a LiDAR, of we near-range progress pleased in I'm OEM QX automotive using to with to autonomous developments,

smart year to higher demand During XXXX. XXXX LiDAR With have in OEMs, interest with for the new our review will XXXX. and continued of decisive and milestone Ultra and near-range with automotive of point deepens with technology, passed share manufacturers capture key gate to XXXX our a in quarter, product including shuttle the now product, LiDAR of several for in this Koito, be in other hand greater project Cepton our a LiDAR are and advanced equipment and near-range in customers poised partnership with adopter adoption. landscape. preproduction we in we heavy expected adoption this this final infrastructure mass inflection OEMs, across the this Koito, With we've our market partnership phase production launch with early significant

it turn to over Now back I'll Dennis.

loss quarter and prior the revenue to Fourth quarter quarter. an compared fourth year you, loss quarter. share, $X.XX XX% a diluted. XXXX, Thank for negative was up increase was quarter million, of $X.X or loss and per share, contributed increase Starting net or revenue. $X.X $X.XX basic basic and diluted. was evenly Fourth adjusted $X.X million. per our loss non-GAAP Total quarter Fourth the the development was XXXX and XXXX net XXX% EBITDA product $X.X to by Mitch. our GAAP for million period million quarter previous The with compared was revenue

We year our XXXX quarter to million, to $XX.X year third XXXX provided full guidance year Total and release. revenue the XXXX increase compared results. on year of prior for of achieved in margin our full was XX% the Now full XX%. earnings an XXXX above gross revenue

stock-based nonrecurring and full impairment Our were $XX.X year million, of expenses operating loss and equipment. compensation on GAAP expenses property excluding

per Full was net $X.XX loss in and share, well loss basic Our year $XX.X negative our year non-GAAP adjusted full the were communicated $XX.X million basic expenses operating diluted. And loss and XXXX or million. diluted. million GAAP the release. $XX million was year non-GAAP $X.XX was net we quarter loss third EBITDA per $XX.X earnings a Full below share, or

December and $XX.X we in of million cash cash, XXXX, investments. approximately short-term had As XX, equivalents

time. not we're guidance this at XXXX offering Lastly,

QX an for expect the full our I'd provide We year call update on the up guidance earnings like at And call. with open questions. that, to to

you. Thank

a with Shadi Craig-Hallum. question now session. question-and-answer be line [Operator Our the will We Instructions] from conducting first of comes Mitwalli

Shadi an Mitwalli I round question This details XX or on with top exclusive you Richard give any final a this process? the Shannon. sourcing have OEM. whether competitive regarding is is of the for Can

process particular exclusive is still at competitive this It's Chief Mitch Commercial Basically, it Shadi, this Yes, for asking, you're a opportunity? point Hourtienne, that competitive? okay, is or Officer.

Did that of indication process? are you other companies how OEM what's in give that any many guide

any didn't No, us particular give number. no. They

is time Okay. a in an Makes question. past? one the then more announced line top the then just decision and OEM? And the OEM suppliers this for later the X And with What's has sense. that shipment

start the commercials the have coming LiDAR XXXX time lot the with various have of had past A industry XXXX the decade series the years. then lot supplier. a in just general, half can't LiDAR question, in to now of we are several -- previously the another RFQs line, was time have suppliers? RFQ automotive other OEM disclose they the in already in frame. And OEMs Yes, the The projects of with suppliers, the But of received. we LiDAR out your production second the part of this second working of right announced

you. Thank

Our comes Garrigan line from Kevin of the WestPark next with question Capital.

Congrats on the progress.

quick passenger RFP one, then are vehicles, The Just a mentioned for those correct, that both and you any for not final just first trucking? the the the sourcing, RFQs clarification.

That's correct.

on a has with have have some or kind LiDAR of kind accelerated waiting at your IOI of discussions and actually bigger some change the the caused X from -- a of Okay. then the sourcing now idea until Perfect. is of any the made Koito player Tier like some do the decision as to discussions? be final they all sidelines OEMs And

again. it's Mitch deep comes that topic obvious OEMs. Yes, is discussions definitely, Yes, Kevin. in final up, an the especially This with

the a I the think Koito. Cepton surface think many in that's it's and coming of There for as I OEMs. seen positive about LiDAR are a companies, for the longevity positive. overall, and to concerns for It's industry

And so of that proposed a customers. this letter the front definitely positive in we is received

of line Northland with Our Capital. question the Gus comes from next Richard

questions. A couple of

that? of you remunerations sort associated it guys kind when what size specific rescope, any just of goes you with one does financially? a through about How how numbers, they Just means can about that the thing, do not think industry to talk

Are ] Geon you asking the rescoping. about [

I am. Yes,

development, spent. industry what's rescope, you've it vendors like? just look from I'm magnitude? when there's on your does et the money So proportional to back -- it get a Is usually, wondering, the What cetera? practices, what spent money And

concrete something, number certainly money recover point, a it's We're a something there a not have trying we at it's nontrivial add Yes. lot intricacies this process. Mitch, you we of number. in spent in invested to program, all are to of out the the the can want but give certainly but

of but as company. pretty I That the not that our some announced public for can or it past was since think X of project. OpEx work it's proportion X we think you years information, Yes, a stream significant our

that's there asked significant So for. being were what's investments and

Got the you would it. the [ combination production? And go that into expect of then to trucking terms company, of when in ]

my question. of are awards in to I'll just Most to now the to Yes. 'XX right refer the back starting RFQs frame. and the time 'XX first answer production

So fall time it somewhere in that would frame.

Yes. refer as that's more now, filing, allowed we we're right But X-K press and more publish much releases back follow as information. information we'll again, up to I to our can as as with release

Where into will. me. [ are competitive and that you working any XX with? Chinese are going Last this been environment? ] a Is one is for folks? in of up the you've company the if this companies, the OEMs enough. against This you lists, seeing of entity that reduction you Okay. XXXXH these significant Where with -- sort Fair top on

can the for landscape, LiDAR any I'll are of but Yes, program number quite first -- Mitch LiDAR add and in start There see out companies as can there. more. competition you in a then

company So the any active. Chinese can as with competing as of you LiDAR that's are LiDAR expect always programs and other each us many in others this well

these list, number competing is at it places. the in So this fewer fair a yes, that is projects. and in situation there's many are many we've of And competitions put assumption on been one a XXXXH they current of

Mitch, So to you add do more? some want

think I add. don't to I anything have

That's... Yes. Yes.

That's good. Very me. it for Okay.

Our comes Galinko Group. of line next Matthew the question from with Maxim

the first tolling one guess I is smart on you've project about. talked

and could significant about the of tolling think the pretty [indiscernible] didn't the you today, business? length on where last a expansion rollout update just scope for general much over practice hoping but it us for couple of in in potential I stands hear, think -- I smart your and quarters. the I

did market Yes. This the numbers application. highlight Thanks, Yes, you're that we up U.S. support also operators We in necessarily And significant big in in the that for is product revenue shipments continue Good our we as to tolling Mitch. didn't question. some Matt. in opportunities. expand and those tolling bid the But U.S. QX they international continue right. the shows on today. both

that very So active we're much an that's market supporting.

you're X be just quarters revenue. if quarters around declines last or over you outlook, I on of wondering But the for us next year at next we least had you And if not give I OpEx? Got know an on it. on sense was not specifically the your directionally, GAAP. some could providing on particularly of least what thoughts expecting think kind the should X spending I at

of of it same So should at the you trajectory selections? of whether the we to rescoping given OEM kind on sort Or expect is GM? the get any these decision subject just final to

here. Chang Dennis It's

we're stage, this expecting at not OpEx the For any increase.

we'll than numbers. providing with XXXX I probably results, some less our So update. QX be guess it's our

at There questions this turn Pei over the you. to I'd no are for like Thank back closing time. Jun to floor comments. further

an It's XXXX. much. very you year been Thank exciting

we of much. forward another products, even with year updates productive very So further new tuned you XXXX and Thank look for Stay new from more technology, to Cepton. of projects course. new

This concludes teleconference. today's

this You your time. for may you at participation. disconnect lines Thank your