Velodyne Lidar (VLDR) 6 May 222022 Q1 Earnings call transcript

Hello, and welcome to the Velodyne Lidar First Quarter 2022 Financial Results Call. [Operator instructions]. Please also note, this event is being recorded. And I would now like to turn the conference over to Andrew Chan. Mr. ahead. go please Chan,

will and as results thank fiscal return QX and of joining and With will and accomplishments IR today, that the will outlook. one limit discuss the financial for during Velodyne’s the that and this Ted questions you summarize with of CFO. To Andrew the we strategy question. open XXXX call to me This financial request possible initial Chan, call call will to CEO Tewksbury, review Ted Head Drew for call, open first are Hamer, many and ensure the you and we question afternoon, as Velodyne’s us. On follow-up please the quarter for Velodyne’s is questions. on Drew year we Good review analyst Velodyne address Ted Lidar. one results.

to market its issued that I investor begin, you shortly remind presentation. we XXXX quarter first press the after also a results. financial would published Before Velodyne an Velodyne today, release like closed announcing

help and business financial and Velodyne’s making investors evaluate them operating with believes and management’s filings, press the and financial a and factors the non-GAAP a measures differ may that statements. and company’s budget-planning management in results our from metrics the financial the will refer evaluates section actual consistent You be of including our for forward-looking XX-K to non-GAAP how financial core performance to release non-GAAP remarks, materially trends. at performance GAAP as recent providing and velodynelidar.com. XX-Q forward-looking to it Management includes press relations investor SEC such Today’s referenced. operational financial access our to these and In most measures, discussion supplement discussion that for Please presentation because trends release statements. investors for provides purposes could and cause metrics these uses decisions

measures A these and business versus believes today. press core companies. In facilitate of and addition, comparisons description in is GAAP of these company’s measures financial the full reconciliation operating management results other the release issued trends and and included with competitors non-GAAP

CEO, Now, call I’d our new like turn Tewksbury. over Ted to the to

thank to new and to efficient world is in on and today. remind Velodyne the is all us a leading that Lidar planet We’d safer, greener. creates shipped for chains sensors Andrew, With like way. for date. more our welcome Thanks, smart over joining making our our supply XX,XXX investors you you the communities Velodyne Lidar any technology motion. and call lidar

guidance at was came first was in remain This offset cost Billings supply ability the the includes non-cash of $XX.X shortages in reflected for quarter one the Amazon headwinds. products counting million the end our impact significant at face Our of XXXX and of this of expectations. warrants of partially secure to our Revenue, execution treatment via range. the which end of first the our time Demand top chain high for quarter solid pricing. scarce strong. of of components

ability XXXX. our quarter highlights challenge in fulfill financial near-term several expect greater review I’d of warrant from Even in growth results some by well a as these begin accounting to as quarters. to reviewing first our with to revenue continue the will Drew the to detail like of XXXX. second moment. we the shortages demand component quarter sequential expect in this we However, for headwinds,

Demand automation. diverse were are about being driven applications, the our solutions uses. In infrastructure, industrial and of and robotics automotive our thirds robotics applications. our sales high infrastructure, increasing programs automation to performance deployed by three by for engagements across Approximately and robust an for continued lidar smart robo-taxis. sensors chain robotics, supply Progress sensors rotational target our intelligent warehouse, automotive of dominated two for and quarter industrial cities. intelligent continued be was automotive. all in to third port one number and were including sold for during of and customer of pilot see And We across the logistics of in markets, industrial

Intelligent or am that the very IIS by And Our Infrastructure create Smart Transportation to in was Main, SXSW Rüsselsheim Cities, IIS a the control. we Award for truck are Delivery won Innovation selected citywide system & XXXX Solution excited Germany passage category. our

QinetiQ, capabilities applications, their growth. and and with our five-year largely performance including a milestone, in agreement high to our program market, interest untapped laid our leading sales growing And requires Velodyne we this seeing also vehicle and sensors NVIDIA partners company that provides. surpassed defense military the security strategic ground year, automated unmanned portfolio. global pillars the revenue XXX I announced Velodyne which out our a accelerate Earlier are mapping perception profitable path for a QX, We like four Siemens. for to to brands with In provide

existing robotics early selling markets, including and into First, intelligent by industrial, products infrastructure. autonomous

Second, an sensor and ultra-low to price markets. in adoption sensitive other mass automotive platform by developing cost drive

has of to complete first and by of costs. points understand been of pain built processes This group their under organization engineering and solutions, of facilitate encompassing to manufacturing ensure Velodyne’s right at our Officer QX, volume specifications requirements and define President industry Gupta, significant with We development vision and products Product Third, Engineering high We we established quality. the a hardware system autonomous In highest lowest to Vice closely customer-centric Chief Anurag transforming software. our both powered agile group the culture the management software customers strategy. the the and oriented working by AI the order a to to leading execution right made enable vision expanding progress cost this fourth, Velodyne’s with solutions Executive in in and under Velodyne’s Dr. Vass. first product oversight the Sinclair features, solutions organization, successful and

while development product innovative an maximizing engine return end-to-end has develop our to Velodyne on investment. customers time, consistently to first and deliver our define, the For solutions

a releases we XXXX, commencing to product and two throughput expect to in year. least increase new per at As four new sensors result software

system introduce one least solution year. to stack full at plan also We every

XXXX, Looking sensors to industrial, for the rotational and in and we markets. full Puck our robotics demand experiencing are customer strong infrastructure Ultra year Puck

As we constrained this demand shortages has of FPGAs. our supply particularly to quarter, ability critical been last shared gate components, by or arrays programmable field semiconductor

operations are as Our in hand to period. us hand demand of and challenging this satisfy as engineering during teams much this working to possible allow

able increases. quantities scarce through have cost, been small procure price albeit at partially have we of components, recover We able to which the elevated to been

substitutes. our hardware and secure of and available which redesign of quarter. This improved developing expected completed been lower a have the we And using we finally, quantities sustainable cost we limited in requalification some early solution an family able FPGA. to Additionally, to generation requires Puck XXXX. to is This firmware, third be provide a are readily next components expect similar as in

In addition This to sales. additional our a not sensor is recently constrained Velarray the by component is currently major from drive we Pucks, and and demand MXXXX robotics shortages, solid to experiencing markets. campaign strong in sensor help state industrial customers marketing launched

we growth. improved beyond and XXXX revenue to Looking expect

XXXX our Velarray software will include solid and As introductions in services. platform. cost by next and anticipate low configurable XXXX, these followed we software Velabit generation state our new We sensor in sensors introduce sensors,

and few a markets. adoption mass are believe price systems we $XXX price will in point We drive driver that these sensitive designing just for assistance high sensors advanced a other to sell volume

anticipate Turning are for new we ease and trends. which we contribute lower track these sensor constraint. manufacturing ASPs directionally XXXX, to prices pattern which XXXX, more of supply In ASPs underlying cost to and now components. expect believe gross constraints margins of that price revert price and of products, a to as are improve supply margin are as to gross to to sensors introduced. mix. In key the normal abate low We the chain start will new Many designed

system and increasing sold. improvement efficiencies to plan includes materials and software of costs. higher initiatives, yields assembly And new dramatically developing launching volumes, down to margin and Our several reduce drive the value power, bill cost goods pricing of to our sensor architectures increase gross manufacturing solutions

we will significant turn revenue the and review to financial track our our Drew profitability. that quarter work over first to it still I’ll we’re that, confident With While we deliver to are results. accelerate vision have solutions to growth customers, believe ahead, we turnkey, intelligent right on which

Ted. Hello you, Thank speak with It’s everyone. today. you my pleasure to

our results QX review financial guidance XXXX. XXXX for of is QX a and for Here

The first accounting required primary cash that The impact revenues quarter Amazon the XXXX. by this the of on will accounting not impacted for of commencement XXXX from the warrants of marked the revenue X, which was diverge flow, February is the reported accounting. that is announced with associated agreement

by of to report customer. including billings expanding services the As the value and a the provided financial the on provide to period perspective performance the is will company’s Billings more dollar metric. underlying invoiced and result, current it business Velodyne information; a during products represents

decrease $X.X revenue before sensors million warrants $X.X The components For XXXX, million for associated that expectations. exceptional to guidance. of that revenue of operations report product build the by at offset to I also of help to procure in the implemented constraints the revenue just the are million portion Revenue, costs. top Ted recover million contra the impact end $X.X was to it details, team our product including of is was XXXX. This customers. and enabled proactively the accounting attributable to it was first more Providing was ASP at top discussed by chain previously in discussed our the of us to total increased changes was $XX.X our of QX compared the warranty billings million quarter that of work offset result pleased with partially supply we our our of $XX.X by

sensors X,XXX state. QX, we of more than sold more solid During were which than XXX

of result average ASP per quarter $X,XXX to first discussed earlier, largely mixed sold As product the discussed and selling to changes the in sensor quarter, fourth compared of a in the price changes the ASP above. the weighted increased result $X,XXX

to and QX, also in $X $X.X revenues million. XXXX. was We annual License of related revenue QX services approximately XXXX, Amazon true-up We million $X.X $X.X This compares range to a royalty included the million $X.X non-cash guided the of million to between an million. of and million. warrants vesting charge in $X.X recorded for which contra

in QX factors, reflect of almost XXXX, technology non-GAAP million flat result loss of was XXXX. to QX XXXX. QX expenses million Non-GAAP Both $X.X were to profit million in these periods million a our compared QX gross growth. $XX.X in XXXX, our operating strategy future to compared As in in $XX invest growth $X.X non-GAAP and

million revenue Our non-GAAP short quarter at the December end $XX with per the or $XXX.X XXXX, net per million share cash and share or $X.X million million XXXX. compared XXXX. to $XXX.X in million We investments including QX XX, $X.XX was $XX.X contra QX loss, $X.XX compared in term to in

to Turning information guidance, shipments. on demand based taken, reflecting expected in customer measures available and sensor currently

We and expect $XX to warrants to billings million of million revenues million. million, services million resulting revenue of the and $XX product non-cash $X.X contra $XX $XX million of $X.X million Amazon of total million license to $X in related to to revenue $XX

of selling call to product We quarter, mix. sensor based fluctuate customers and conditions expect to weighted turn the continue Ted. and market With each the prices number back average to needs, shifts upon I’ll that,

our you, In end entire the appreciation to express the I Thank for would Drew. helping guided team us of Velodyne closing, like achieve to my high range.

all of system across to be markets. integrating hardware company the provide vision early is accelerate are organizational the the now approach to intelligent scale and development to autonomous software of systems. solutions customer have still a customers engine with successfully in product our proving their stack stages solutions we We and engagements, competitive major our and advantage development infrastructure full Although

in-person Deutsche forward by virtually and investors team to Baird and Bank. in June conferences Needham, looks Our and at seeing held May Oppenheimer,

technology issued I operational will Finally, company, seasoned Drew likely and call scaling seen transitioning position to CFO years public be new experience strategic with more as release the earlier press Mark as Weinswig. companies, the as in well experience Mark you questions, before CFO to the have businesses. XX a of in is today, extensive open than

financial for us to service He his we growth. join position. like company Drew him now success Operator, next for I phase an ensuring have of to for by call thank to will questions. to set up our open excited are strong We would ongoing the the helped Velodyne.

first Rusch from Instructions] [Operator the with you. comes thank Oppenheimer. question Yes, Colin And

couple that you’re Thanks you about of Obviously easy the to so that talk you to could the revenue talking automotive shipping much customers? right about, number talk Within a pretty about guys. of if but diversity folks could now. there’s you’re that are identify,

do Sure. that Please, to Collin.

these came that very our some revenue one yes, of Also most robo-taxis, in from the as in applications. I mainstream, safety is well what automotive, So less working think from familiar applications that applications, remarks. third Motional, that GM these many you’re in than priority we’re from as segment. of closely with other the sensitive more are customers smaller came with with came prepared that as top robo-taxi We on of of you them. see mentioned they ADAS some and a And kinds of would revenue price

those getting traction we’re with customers. very good So,

revenue basis. And on We before, coming volumes industrial of changed expect from be early I’ve quarterly that to primarily fluctuate time the robotics. still our to terms will a said we in opinion volume, as that haven’t and

rather non-technical But to timing robo-taxi some revenue is go to that the by performance. timeframe and issues more other the expect that of in dictated and We volume really than beyond. XXXX regulatory

very those ADAS a fit and and level level programs. of shuttles type good market other autonomous an act, sensors We robo-taxi, product with five, into our four have

helpful. leverage that and and position some building the how customer start incredibly [indiscernible]? the and for sales with terms software multiple much for guys yourself getting high fronts. that That’s commercial in sticky of volume you on talk from mean, has are you. you’re these, you automotive programs of I software guys can lack relationships as these And then bandwidth about, of Thank been vehicles notable effort ecosystem around developing,

incredible total to software amount solution. of system adding The is value an the

could and to the in. robots. take be which provide environment need are to might systems, vehicles, look to comes where developing decisions those the environment but And and able time our in observing autonomous are they action customers make of analytics. at systems understand to able they’re might they be real to traffic software our then you or be all autonomous If that’s order intelligent be or autonomously what be doing, systems, regardless, They

And AI software, as term as sensors. of is autonomous as component, lidar our but for cases, types vision, an includes essential be vision and enormous other the those leading of of our powered in an long vision systems. the company So amount to provider also it well many include AIML

you so it levels. at of look our stack, three consists And if software

have second fusion with that layer to translates then that provides interface of is layer the core make analytics to provides user have raw the of and that does download tools cloud those use that own variety of layer, data diagnostics. things. interfaces Basically detection, into the and point the consists identification, top a We autonomous systems. cloud information measurements and portal the level actionable that, the on custom then and sitting can reads kinds sensors perception the those data we that point call autonomous users does we APIs their collision sensor the and time the can those And Vella of And develop what which object tracking, decisions.

our forms. we’ve Intelligent talked about entire that is length best tremendous previous the of that Solution, customers. So Infrastructure in probably is at stack And value providing example to which

question And comes Baird. the from Tristan Gerra next Thank with you.

is Tyler the or the Thanks lockdowns impact taking questions. to for you this talk any the you’re on seeing, customers? about directly for either Hi, Could of China you to if your Tristan.

We’re not from impact immediate China seeing any the lockdown.

profile impact doesn’t customer Most on expand have footprint right our continent. in We’ve not to to pull our got plan our customers a are North like would in China, it Our American be. the plan presence as actually of a as expand us. the together or is But EU a in it large I right in of China. in now now lot China to

Great.

markets, lidar be automotive, there for your to agnostic? does such on continue my rotational For on end as up, your approach end state end accelerating you were high that or solid focus lidars are focused specific follow are market

And market focus the on that our robotics. for predominantly really is is focused quite So, industrial simple. reason and

to that, intersect top the now we as that fit. a time to product to products soon do have need market possible. markets right with become as right Our company at priority the is volume And profitable high right as

in pillars about rolling strategy, our volume, waves. of which talked the three our doing we see call time out we but that, I’ve so four in terms And markets for strategy to

is that’s industrial the and and first which the supply robotics, by really chain. So occurring automation wave, being now of is driven right

demand tremendous rolling our And to Second, well as see talked also in sensors. automotive solid sensors why, real the But release will weather in rotational we kinds with an that see we’re clock then press expect prepared I degrees And they state fit it’s industrial traction, can any time with the intelligent the about out. later. really robotics, we infrastructure a about the ideal sometime markets. those come strong as getting remarks. rotational, intersections and condition. infrastructure In there. actually especially talked in And XXX of that intelligent There’s our because for round very for

say applications. cost, would see factor of size sensors street state a the So, rotational’s And and perfect a they the applications, form the the about urban degrees solid a we’re be the vehicle seeing, or would where If a AVS demand a rotationals important highway. passenger fit the think lidar environment of on suburban of of that. are kinds robo-taxi for increasing many but are in XXX kinds these seeing in vehicle less and say the an many also of the around I than we’re autonomous on an for continuing to they vehicle trend through need because towards of street driving lower

degree good of fit it’s revenue of very Most we’re robo-taxis, And a I range. getting the automotive. view us. long they that very is resolution, XXX for the very from why, talked high that’s So coming from about precisely third one of that that the provide the reason

state of robotics terms terms there’s intelligent in see both applications. or first for of segments in by first an happening but the automotive we’re not, those, market we solid by infrastructure, production followed favoring and So, commercialization of timing applications either rotational followed industrial in volume the

the And question from next you. Sam Capital with Craig-Hallum Thank comes Group. Peterman

I visibility curious units like into of guess were my they growth hike to seeing to for to quarter-over-quarter units your quarter-over-quarter, quarter-over-quarter growing the sales drive up Hi I how on sounds you guys. ask much you’re that supply that in that, growing – Thanks with, a wanted taking how because ASPs, it environment large the was question. quite bit guidance. just have

still quarter more guidance we’re out. not than So, a giving

limited Most the challenged visibility fact due of But on not very about. don’t have as all lack of We we talked side extremely supply the end see are demand. visibility. we demand plenty our We is across our the of products. markets for that to of I see

So it supply. to ability to really our down comes

we you in QX hit know, I do layered inflation get become the And that have can all and then meet that. have we confident beyond we to top we on of guided got interest think uncertainties into macroeconomic But things cloudy. of the Ukraine that also and you’ve as because backlog other of and demand. challenges geopolitical pretty course range, rates, QX do supply we’re

So result, we as guidance a are still QX. providing beyond not

Got it.

That’s helpful. Okay.

I towards solid more Second in state? ask so the chain state the decline looks sales by more is demand seeing supply question, like than solid state pretty those or I kind down driven of our shortages that substantially solid guess all, weighted you’re year-on-year. wanted at rather on rotational the to were in

can components in that was solid of state by which we question. rotationals quarter. strong for depending down very QX, a solid an demand We customers ability state. It’s into that supply demand was I to they was and did too our limited the interesting We on builds. supply limited much as indicated the fluctuations MXXXX actually see the quarter-to-quarter fact availability see the to on happen wouldn’t depending for read

It demand not product. is customers that of So happens building And not that supply much there year. one our see in that the were constrained. as we for is QX of so plenty the remainder just

question Sachs. the Thank next with Delaney And from you. comes Mark Goldman

of realize for speak – metric, Bruno on have an the about or you the Mark. you wins to awarded update is no company that talked can Thank longer this number $XXX The an long updating revenue taking commercial million company’s projects? through signed of but I previously an you not XXXX. the questions. on do for any Hi, recent

great for or agreements and was question, talked So IIS. that, Main, multiyear one two Mark. Germany QinetiQ One Rüsselsheim a it’s wins We about today. the am was

currently metrics. We on win reporting are design not the

for are a of previous We that we’re looking provide agreement competitive leading in indicator want balance that projects, to to that But to design Number the to could environment, disclosing the multiyear several – we a in, The new a we highly as was actually informed are future with I one go secondly, metric had confidential and reasons. such will our for that problematic the that’s growth. competitors was a in foremost metric production. help have I really will funnel investors not need information our keeping first active reason. projects revenue all

a don’t historical I agreement analysis yet those to those come so design rate the What of of you need of we probability is those out to the which conversion out that second And give data, to multi-year production? conversion wins information piece rate. that is can going only or of make And multi-year have. And sense you an numbers. agreements of for

sign piece. necessarily three best multi-year is metric metric to appropriate industrial while that’s second a use customers then not many segment, year And the of And whom multi-year in so that, for agreement. don’t third, agreement robotics want and for the the who the automotive

more we’re or So for LOIs looking be it’s SOWs would takes account into or metrics, design that them, appropriate. wins whether at metric other that some

the where finding a working is metric for we’re So, looking showing that you’re information our new without give gold burry. you will on customers the

hold are that. working new we until our that, before have we And CFO to board on disclose going on we so I’m off but

any cash helpful. Yes, balance Okay, shorter very just plans about thoughts How use strengthen sheet? term. that we the you think in have XQ? do to on great. And should be would And potential

since between We’ve $XX been million. held flat cash we’ve burn over million million, was It little carefully ever $XX but It we’re bit costs has been when you actually had rate board arrived. we balance sheet, I bit million holding QX was a worth and came little six that very So $XX of flat. strong in issues We I our got quarter down usage QX, as And in monitoring OpEx got historically very executing on $XX our we plan. quarters ensure no $XX saw. very and a managing even well to our a million cash. seven very quarters with to strong we have We’ve we’re if burn quarter, still a to cash that runway.

year We’re we’re rationalizing our like currently five company. any product our well completing and plan rationally roadmap and managed

for always and looking evaluating on our at all we M&A not And allocation But until as which anything opportunities do this board. CFO don’t at we after happen will our new as future time. have options financing. plans We’re capital well any includes our comes

Bank Thank America. to Aileen the with you. question next Smith And of comes

everyone. afternoon, Good

indicative the years your customer receptivity to a move talk establishing power? about more a on what lower going and And on input pricing can that follow-up increases, journey question few the you that past from customers, specifically, just solely your chain higher meaning a is function to costs perspective, to So of passing you’re on your effort? strategic around specifically, is wanted of on over I sensors. bit some for a price You’ve the ASPs the or working product to been of is this to supply

try does as with raise that your go customers you them? how to So conversation

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develop in priced order ADAS is And strategy our lidar why, sell for have to of prices aggressively the and mass sensitive pillar that very price down. to come new $XXX use adoption applications $XXX. can architecture of in or that’s that other cases, the to drive second a So we like

long bring down term So pricing. that is to the trend secular the

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fortunately, the same of seeing constraints. the Now, entire industry is supply kinds

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organizational there a focus early the to follow more past define kind the had of and where transformation. first? efforts on some up it. those model what of of? What that in turnover year Is initiatives be lidar markets you’ve two. around encompassed a And that? And got Or are on we to know should the quite I Okay, focused? then aggressive or internally executive are aware it just business pivoting in I comprehensive as press you release on is a wanted capturing the comment restructuring

there’s going get of So just broader whether sense on. a reorg trying to a

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together So Product we that organization Chief put under company’s Officer. first the

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We all trains processes in running supply enabled of yield under design, on COO. time, for cost so the Jim a for now very that’s that these Barnhart, us QX, headwinds. We’ve really execution have to test got are exceptional keeping the achieve strong manufacturability, operations what group disciplined robust our and despite and very

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Rajvindra And Gill you. is Company. & customer question the Needham Thank next with

nice luck and Yes. and Thanks welcome working best Drew, you, Mark. for taking questions, my with

roadmap the has cost built Puck we the get pricing what’s of respect to of the the looking improvements? operational mentioned XX% pricing. you roughly How is for while the Just time. in in the at had the production the said, wanting And sense pricing impediment with normalize, the of to biggest, Velarray and to to the for begins to because XXX, be down. past, are of when normalize to product you lines, of of the XX% a additional cost a over to are up across progress, follow be I we wait overtime know to off-shoring offshore in situation, pricing kind being the the environment to question kind below Alpha order lidar the get Thailand, side pricing biggest going on in adoption come as

important. crucially that’s So

Yes.

right. absolutely You’re

is which we you a very element XX% our is key as low Thailand, here. our already sensors manufacturing said, have fourth of which call to cost site. right this we now, of a So And pillar transferred strategy, the

a to but our transfer the need to us in get to design sell going all the completed innovation. – alone able a in some us cost we do way is not that, manufacturing a order the be year. to for that going that lidar of or need by have loan level efficiencies, will $XXX end we $XXX We enable that to XXX% also improve sensor That’s to that to the to do low

our that And so reduce architectures talked that about dramatically I components us allow which will simpler, we’re developing, the components, cost. new will to fewer cost lower be

architectures to products market building products the in these doing, thing us easier given processes. our reuse these that other we’re style already and a micro it for block we lidar The assembly which facilitating it we’re platform array easy agile, building and workers get methodologies, is in actually through to we multiple developing block design, based building also design very block sensors making doing very Thailand, on style can have because whereby time, to for assembly of making it making more

doing things reduce that some we’re are of those the So, costs. to

And to then in. design long-term

Yes.

segments of you. Thank in terms transitory, it hyper infrastructures? robotic would area I details up. intelligent helpful? side? most for just immediate third be really, be there a thirds it which appreciate. are on the the of the that and Is kind that big more Despite TAM of TAM could Is you of Any of thoughts robotics, kind of more to Two lot for specific guys. be that automotive seeing are follow industrial any kind up, within ASPs moving adoption? you one And my kind seems what

Sure.

So again, because to or infrastructure followed it be in can five two, segment. reason whereas upwards terms see design intelligent or infrastructure, an long product two months, very industrial intelligent months of time by and it’s that in years. is six design OEM to designed a And automotive. volume, into short in get we rather It X. an infrastructure a than takes robotics The cycle Tier is simply a the automotive, time of automotive number are intelligent the cycles by first followed out rolling

where to number quickest we have our path products strategy we product existing robotics is the That’s our sell market the are to existing markets. industrial revenue. So into and Those that’s highly one, have And where markets best diversified. fit.

about talk investing when we farther $XXX product we’re developing volumes of add starts in today as that fragmented customers we market with while ramp. market just lot $X.X a right I ASP specific lot that see intersect out, don’t to mentioned, the a billion a It’s In it So, to customers. a up to by XXXX. the automotive,

segments, like lidar. And important. Now where are all they businesses, business level and are higher are safety really vehicles. prices able others. above excellent be And since the companies getting autonomous in pay two customers various and to automotive, Motional five four value they to that the level else. There’s Those with we’re have traction there for that’s model

we’re technology the $XXX. can not And means ADAS still in they what traction is then it is it. many non-technical issues. with as way requirements. mandatory will and the if reason that because adopting the OEMs So, is to believe down lidar today. an regulatory sell Xs engagements $XXX, come that ADAS, and fairly It need is time that And vehicles ADAS, safety customers, those volume mentioned, the the with prices by however, suite very is adopt OEMs through good is getting that in for essential And because while sensor the we’ve they we the of to only of that more for Tier the out do learned far other

what’s the of vehicle. to the $XXX. that’s the can’t it And or so be need And price increase driving the $XXX MSRP for

we the make do regulations thing we’re require other work what ADAS sensor mandatory that to which the laws for will to ADAS put government exactly Now, place and to as in lidar is help help agencies, is lidar part them suite. with can doing of persuade to

that’s Safety So, order and in congressional as the Transportation ADAS lidar with a National but strong leaders government will Highway suite. part lidar require sensor place shines, also systems ADAS where where have cameras and the conditions And pun no of working agencies radar that we’re Administration, really advantage. and fail like with working low to and test in conditions intended, get dark light lidar in and really mandates to

that the we’re and intelligent doing those we industrial robotics that automotive, time in be feel going infrastructure. of the farther So the are to than some is but still things out and to volume is, the

Very closing does to the session. for you. the like this would turn floor I any management conclude And comments. good. to question-and-answer Thank

joining for And speaking we you the to look in to us weeks speaking Thank forward today. you – come. you to

conference The has now you. you Thank for Thank presentation. concluded. attending today’s

lines. Your now may your disconnect