Luminar (LAZR) 6 May 222022 Q1 Earnings call transcript

[Call Starts Abruptly] that accompany this call at luminartech.com/quarterly review. In a moment, you'll hear brief remarks followed by Q&A. But ahead of that, we're going to take five minutes so that you can watch our next installment in the path to series production video series. The URL for that video is on the screen right now.

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joining, chance taking path to production just give minutes to are video. a you watch you we few are to series If our new

will have questions there find questions our The great, questions. I everyone. of us. shareholder upload that and continuously we ask will this started. enjoyed some comment quarter, by top can will your our URL we In the can our followed One you in find implemented right outreach, with addressing hope video. platform a we at You screen been minutes. this be the questions. today, hope where and shareholders and end We the useful analyst shareholders improving engage before be the prepared avenue of Alright the back five remarks of verified on the SAY get to spirit

that information risks the and business introduce Luminar's more press Austin uncertainties, specific CEO, please Russel. release, Q&A, call, materially. it. and everyone Today's include presentation on we such, remarks remind forward-looking statements results see as for risk that I'd begin refer our update to the GAAP actual does like to and to could factors to differ as let that, refer based cause environment, the and on we during non-GAAP With also may contains currently prepared the And Founder discussion Before measures. we and

live. going That's see hear Okay. everybody and okay? me Hey,

Yes, absolutely.

All right. Awesome.

our Board Alec in. California. Gores we're from to reportedly The Today our just and Group live jump everyone Member right of office business Okay, Trey, Thanks, with in welcome and well, Gores the update. Investor

as business beat milestones. in for quarter on I'm to beginning the our our proud right is for public the year. each to four at say and the the start our XXXX And forward. remain Luminar, incredible as was And a we jumping we of an we remain take first that of outlined execution intensive focused to that, year or look key business only on-track the accelerating meet milestones we So,

So time, our look at Mercedes our expanding capacity, volume the far and we are video, series ramping as regards Freedom of technology on same time, and Photonics. have the with roadmap few manufacturing partners. to with streak optical increased this have wind significant in as made saw our advancements over as indications production with year, series acquisition you industrialization new planning and production months Fabrinet At we Nissan advancement, the same partner continued the well our at past and live from the program so we as

our on and that, areas key I'll jump milestones the it been detail business to tracking Tom, have into to before with our to So review some handing we how more of off financials.

with XXX years. all a at taking next major making XXX and I'm is starts XXX-year the outlined, step and save So of had it and year statement opportunity XXX to the the of a have CES a and vision the at we the is to vision our vision back, that, what towards new Nissan the time, And our lives goal. moves lives vision saving partner that that on the are with trillion a to road million proud and of hours and over say aligned beginning

vehicle to into and demonstrating new increased its safety. So, technology dramatically Nissan integration Luminar's accidents now assistance announced and reduce is of designed driver its system

while collision us generation the next performance dramatically to towards vehicles, of improve avoidance Our the enables autonomy. capabilities advancing

new excited the introduce XXXX. Luminar's of able year. ahead. complete put the million expect major market on on win to on and and as decade and vehicle system commercial by with the To X around We for models initial well This produces technology as we're Nissan mid perspective, a it every automaker to is by mass development into deploy be first into vehicles vehicle that what's every the Japan virtually foray

the win talked XXXX last two our year. also series major halfway Landmark on goal achieving are the for production we major with now with to wins, Mercedes-Benz, our call, we for And our So, additional commercial these about growth start which to wins. supercharge

ensure series given to capacity, the successfully from demand OEM was increased our from partners. noted indications So, as volume also scale increasing series partners, meet now heightened to needed levels production our will we production be can these to we

end significant the standpoint, production that's all series that's by is underway readiness currently the ready So, Luminar. industrialization that from a probably about and year. most It Iris's at effort series of sure production the making

has in to bring and beginning see we the saw you for the as undertaking intensive as labor today's been Fabrinet the video, our this of we're milestone. fruits now ramp So an team, up and meet Luminar

So as key the for responsible assembling is Celestica, our Fabrinet two our and of partners a production level chip manufacturing reminder, in technologies one is and product. series alongside optical specialized

engine, our it's that, for week-by-week, as the the forward. efforts pressing say push And LiDAR. industrialization big are make our we to say could so You

a data our from development quarterly by for are focus release while software So efforts the year-end. also software not this on-track call, it's standpoint, for essential

more systems we software month, will future. have alongside all to capacity proactive ad-hoc safety out quantitative too our opportunity distant more there. live prove showing in independent Iris for forward last Luminar's the not benchmark looking our step those demos, independent versus best-in-class in improvement of safety results in and that today's will delivered the benchmark This assisted a to latest but Just that function testing in we are the driving really sharing

we to execute near-term, acquired the And after and product ensuring our associated roadmap. with well the So we Photonics, from since capabilities the have the accelerate performance diode bringing their chip strengthen also a such. with as technology, a Freedom in-house, technology multiyear partnership leadership, are able standpoint and in are laser Company, as high we while technology we that,

able three full the LiDAR level with components, last the remaining processor component and was which to pillar enable Freedom and the now is performance is the this of and and accelerating the innovation So receiver, to the integration critical laser, and across to integration achieving further target. Engineering, core video to absolutely level economics long-term guys this vertical what and be Black between with development, you the the and reducing Forest Freedom were the And materials ability substantially aligned dollars to widening of in seeing is XXX bill Optogration all competitive costs the mode Photonics. achieve

year. and the conclusion, of vision are already in delivering So we has I'm getting started. incredibly on And accomplished Luminar our requires execution relentless proud long-term innovation, continuous this just what and team

stand. that, provide our where on an with to to financials Tom, I'd and the it XXXX over QX like more update milestones and So we about hand details discuss business

you, Great. Austin. Thank

our by towards milestones that Let's we year. our four beginning key progress the the XXXX outlined have reviewing at start of

Our is year. first series this readiness achieve to goal production

goal. have on-track We to remained achieve this

Fabrinet series video our our critical production is manufacturing and ramping up on crucial most saw step the sub-component process. the complex in a of is you As This our laser update, transceiver.

release we of is third-party front, our for safety point achieving by reputable beta proactive testing the safety ADAS This today's performed being third-party progressed and to remained systems. end. development year validation. software On to experts now the the is ready testing of on-track system goal system We've improvements to have the Sentinel our our relative by for where it quantify

wind by cumulative major to least our commercial XX%. third at Our milestone total grow is

requested on-track or this putting far on-track us our order and meet from year. beat in wins So two major well as from come as higher we target milestone XX% volume are new finally, growth have to both year, book. new this meet And customers. to growth this our we This wins Nissan, forward-looking beat or customer Mercedes-Benz will existing

our a conservatism significant book view order or customers reminder, haircut take of in we and and win have on a with oftentimes conservative building. include a and only include As we business we programs, major where level commercial a the

our financial QX. year-over-year. Revenue QX series comprised as up million, the our deals part for majority review of Let's revenue. highlights $X.X production was revenue one Program XX% of

milestones lower business update new up can completion as series In As this the in QX, I on non-linear approached rolling from QX lumpy development and the was still Because contracts series on, contract. than production. our be we year-over-year. upon QX program lumpy XXXX, and work first work type revenue quarter, of level production revenue our stated we sequentially XXXX performed, but completed of dynamic, of quarter revenue to and depending the call, development last

part to We hiring this to sequentially revenue expect in program QX due revenue be lumpiness.

and non-GAAP at For for a series overhead was million as $XX the bill in material analysis our series standpoint, on and this as of cross production. quarter, COGS Of revenue. From economic expenses inflate we million $XX non-GAAP our gross targets we In plan this gross we R&D and approach and production COGS we to fixed $XX reported loss we production, disclosure production full for preparation manufacturing, future, the to million and BOM, series profit. COGS factors our launch, provide of loss our development conversion series of $X or our program associated associated meet reported These a with frontload scaled track series year approximately million. for majority from near more first stage substantial with costs cost the of production. remain of unit adjusted

purchases. QX Our million excluding was share $XX spend cash

authorization, QX in approximately repurchased I we update last year capital of of to due $XXX including marketable shares. approximately December convert last in $XX January for the buyback. the in million cash the rate was payments this that cash in announcing in had $XXX million of call, than our on have the Since We increases In current occurred XXXX run we've mentioned customer remaining million spend quarter with working ended As December, securities. instead higher year.

little XXXX provide guidance. our a color Let year now me financial more on full

$XX track of We XXXX guidance least revenue achieve our to million. are on at

growth fact $XXX be year implied XX% year's the guidance total We growth higher higher somewhat our will for at to our loss full than our for net guidance than our higher cash cash than of guidance. last is the of our annual spend XX% rate In operating in be spend. our year We maintain maintain moderately million. annual

few for We production. for be operating issued for than the we year Freedom quarters and expect maintain QX acquisition. in next to $XXX be end recently guidance our share count higher our We operating XXXX the continued loss shares our series to loss, to we invest range somewhat our quarterly including prepare the million as mid

some closing Before to we hand for Trey hand remarks. Austin to to for Q&A, it it like over I'd over

Well Tom. for good on and thanks Thanks, some insight there. giving everything perspective

So and to proxy. we've you the in be for as Luminar to trajectory we important a had where And to example share. board's able where and dollar that reaches come discussing want that point spirit and greater to that'll the packages any would I had put illustrate long term not take. had just I one think out when to compensation as CEO, thing mouth an And of for the that per example, is waived so everything of ahead. part single that your when actually never of our say conviction around to money In financial we times business your in say, there's compensation stock one have for have until normal is price make that compensation taking $XX of CEO sure package I favor is illustrated

critical be milestone as well towards hundred trajectory in and a I'm successful success, as as long-term our it a amazing do of able as accelerate be we So said, percent here. series for make know all to can that we business operation it this all as to to production, a but

that, let's it to So Trey give with Q&A. back for

of start the And the SAY to Q&A move with questions. going We're questions to couple analyst that we'll the platform. received a Austin. then on Thanks

that wins top-three software, So, give focused the on a a I'll topic voted SAY me bit detail, more little monetization. both -- our all were all similar in around shares questions three were those let in questions offerings, terms on but a the design our of of read little the more platform vein.

about pricing that and what question A back third expand won on we've and Sentinel Austin, deals, And I'll kind that providing of any we of the Sentinel shape if Nissan kick and can really to answer any where around think Sentinel the then software monetizing three. elements we're on how the of one So, involves the So with second is development? you software in software let software was stack? you And those software one around Sentinel? elements was we one whether general.

Yes.

to say is But a critical software software make this a a And this say important think end a company, absolutely the system the critical what's system the I'd that realize absolutely top. critical the even be and have of and able that from you a the done of the So solutions else transition. you anything. of be up, I the at LIDAR to overall the able LIDAR, out company, enable to actual that make most solution layers LIDAR even And day, a components at -- stack is we've it's to a of we everything to core you business. of on from transition part the car, could have really, a as component is all goes like able way to in be do to much alone for LIDAR to to automakers won't the different

there and Obviously, In the off you with to of critical aspects are for realizing certain this the enable complimentary are needed won't really this. end can been the the there folks fact, user key successful of but is to at or end until that and started why this are do point make truly videos the development, we've this anything where in like to it able some functionality actually Mercedes all able all, happen terms consumer. of this be and Volvos software required the on world be and that that of in make are the have Nissans functionality. And

one part all two really key the the is is we're functionality on aspects we other And as autonomy call is which on generation for highway proactive safety systems of it, vehicles. and this next So, dramatically capabilities. safety in improving

of these the of with like this. we're think for generally software specific Nissan, they've proud So can there for element actually this. very case that's don't a relates it as components that's the any something there. In of -- that We details say that about publicly some is the discussed of progress I to deals, software plans the

some deals at probably comment stage. with you at associated I this of nearly can't forward move that to that the with could that majority or expect component we I software will have some So, But on it. say layer,

them the been doing year. for a for thing we've work for And I Nissan is work one with about would add them on development

program Now doing we their associated haven't they work side, we've software. plan to far been revenue not has have been so Austin as but going been And has yet and well only software that collecting LIDAR the that but shared development really been side. plan is said, we've the be their and in included series software as production, for what hardware for program as revenue been the work we've on doing, work doing with

and two similar of around got topic cars. will questions Luminar also LiDAR when folks we see One, the actually on production the roads

to ready vehicles? of were we One for going this question, but see technology LiDAR, other actually when go? the we questions Luminar fully using to on not The testing we vehicles just was, when purposes, see can

Yes.

actually able to So, there. it'll to be get stuff be this exciting out

up. to think able be have as to timelines the key continued excited be the have Irish But lead we of have kind I aggressiveness this. on standpoint. we the the we of get to not able relative think, to have partners to be to distant both, series there deploy what I very so be which acceleration will said, production these and China that able that two is wrap this. I see to in a part excited as to ready, a and future, is from SAIC of not to year of on our of lead our end as a this the that introduce see greater part are by partner, people basis as future too is similarly chance guys to be Volvo, too will be milestones, think distant able well what opportunity able But, in

stay the the Volvo specific automaker, answer So, when and for announced tune of in formally SAIC the is, I depends launch vehicles. it their on think

excited one, So, that'll to be to But exciting not distant in be an to here. come hands future in I but say. incredibly fruition can that's the OEMs able see say, certainly this too to

the SAY has who questions to submitted Thanks thanks Austin. everybody on And platform.

are with shareholder let's question increase with use a engagement call. first We this continue us. to that, And transition to the the on to to as platform going analyst

be is the call to analyst Northland. Kevin, Gus is Richard on going from so, the And first

question. Thanks. Thanks letting you me for ask

Just expect little in new they year? of are about real Do talk year? year later bit the you them you or a quickly, can this throughout proportionally cadence the wins the series

Yes.

completed from perspective here, Gus just So, sitting a we April. we are

in are We early May.

We when well. as work ready. are have our over already this we for each a made amount announced two, little puts our announcements the announcements predict. of Both us are make our halfway year. goal a them These to only last fair to of year year. with We We did customers difficult

year, going when difficult only announcement. to And to so, predict see the we as because to are think customers go are the an you we us I ready make exact it's about, for time throughout them but our talked

I a too, And announcement really almost Nissan like as customer Luminar all that here Nissan the announcement, announcement. importantly was that most much it's is was think of but that, cases it's in the an as case recently, making anything the

be announcements on ahead trumpeting But, it we likelihood will would increased growth we the beat existing on push. as are noted, volume as ones. goal new timelines accelerated in are they from sometimes coming what's vehicles and we indications seeing SAIC But out China Tom additional I be that, out and imply out for fantastic. greater four on-track we already as which introduce like we tech XX% also well. mean us, which to Although ads for to They people think feels also would mentioned, or meet for But OEMs, models Luminar said, that they is our up stuff. start are seeing, like over putting could people making other are which that the given WeChat putting

of course, for that, was that take ultimate said really that We modeled for the the everything X% is modeled end just we new out was attendances XXXX. per about it's like, X%. the X So, capability wins on like, to example again, just alone. able just the important when what modeled not for the a year, there, their first this vehicles be all and to it's the market by to penetration target of went vehicles just in and putting of technology perspective this decade. kind of perspective, And out scenario out of in which We Nissan the We we standardize million public.

So X% looking the in at order rate. forward billion revenue, billion to gets book X that X% X.X with XX EBITDA billion

So, able market penetration. just up that that alone can take level be of to

Now, trajectory And obviously meaningful is. this the would we're penetration that very it we it like gone if only not with that, X% just along the at a with and numbers, just that to stopping of other examples, frankly, just type with be how I names but you there. goes other to difference. tech of this, show and And the law the look large and market Mobilize the stuff had NVIDIAs take and disappointed makes all how have X%

a if what as of out looks and then follow a sort you laser could you you sort product how about it's of exactly in roadmap, acquisition that will, of little roadmap terms if to BOM going like. you capabilities and to up And help alluded bit recent talk a

to you When kinds of can XX different guys, vertically it's it us mean, three things. independently these able do it not different reduces a if like a to that it lot these all companies mode like a valid combine three are different One aspects. competitive there's and together all do no accelerates tech it's cost. and And brainer I things to probably a of wideness reasons is something product there very those roadmap this. there's So to few integrate. be for

specialized have just it's projects interesting for here. very, been these very specific off to like like time. developments one technology have You developers, see a at largely funded like government that niche And really these

Luminar to continue contracts of some them do years, for be often with those with core architecture. the to to exclusively with Luminar results be realized. critical to design, to is are being absolutely development with absolutely partnered we actually improve component to to improve able capabilities improve cost, these So them over everything. continue going And to at level performance, and the And exclusive continue leveraging able

trajectory that between the are it a to piece there and LIDAR core when able the ASIC, of laser comes missing this as that the the long puzzle that to it. was with now you last components to laser, to to are So receiver term needed the have ASIC, that receiver, all part BOM the get be this towards the $XXX

benefits careful Obviously, I for I see what's said, can like to future to off Iris not we this enable in since incredibly we're be come, after addition locked it's we but and But into say ground major automaker execution the but that for to to talking cost that cost, with in is be too the as to this, sure would going tick key us roadmap heads can for want have So with not acceleration. making there's also already well. critical important far that next the everything this our more Iris with we get have. we to about

question comes next Credit Dan Levy from The Suisse. of

good just Nissan evening. for came Maybe the about can questions. how taking give about with and a itself. you on the agreement agreement. the you Thank us little want start color I to Hey, this

market know a mass we Nissan of think is more generally brand. I

so the lower. vehicle means in that And costs the are price which are the points lower,

say imply than have, which or which for of So what in does premium you'd the would Volvo, types ASPs are Mercedes you what going are be that have probably more that of vehicles? different terms to

Yes. interesting. No it's

here, it over be. noticing be I going like $XXX like case. charges And think and to now of value That think thousand this to deep years obviously, to that's mass the I now, order and software providing start said comes is type cumulative opportunities the that value ask that than say other the you're capture they value the significant like not scale anybody -- we're even it's OEMs I price to for standardized the would going public was and more Nissan you significant on between the I with like like it into a too, trend longer-term leveraging but the Hey but obviously there's kinds aspects saying want think dollar truly get the, order for that or towards it ASPs more mean, these out of on now things and said, reality of from product what $XXX as if publicly also went in of it, yes, that's the The of obviously listen, actually for some value Luminar too a into now, software to and market. in It to potentially things. have progress arguably great hardware contributed a out able thousands second insurance could even over LIDAR makes type go in is lot I that when the sense a trajectories which, top when can other stuff. much and we're that, what of hope around itself, out the and a be ASPs you

make opportunity I to is to idea actually the specific someone models really no that behind to So statement certain bold as that the when to only and go luxury having now that. question to market. being is And wayside happen. the That an from going be this the really truly interesting first mass option by said, it's public comes it product, there's this that -- see down the able in think

it some XXX. goals development about critical to that be the that in that. target talked are that of XXX is initially BOM needed from there Freedom say, are we've hundred. take in a to achieve. need Dan, product have There's would in take one longer-term, to to our past We house. the is things in we to closer two that of to $XXX our kind The want we it is, I And know going a doing

including volume the the other of we is commercials Nissan. scale need economies with wins The major recent thing have, cost to you substantial and bring

for path a see that. do us now You to

luxury is that this costs gets continue us economies and and order what by customers of the It bring be the to to but the that that of as mass to have getting you're of down, so the volume cost kind right, we're to And really you the or market, roadmap self-fulfilling allows price initially premium to in segment. -- change our penetrate to that's charging you're scale, than bring innovate down. so, our the us always to going we need lighter in

And then your Austin you plan said is as stock the some be you proxy. follow-up, there's the that operational to compensation going or operational in are? what threshold. a just you alongside milestones released Could And updated noted elaborate those milestones

key launching fundamental the is mean, business now. that's that's point with production. I The there series inflection value

the as hardest relevant have, business as for, have is hit of a that to more but make now -- would was and share. of something of what I to the I the course be that we we have most everything ahead, said, I Of conviction value board place, part be $XX That's up obviously dollar. one and say -- said, that'd that the the good I'm wouldn't I in going put and couldn't per into but to what valuable think terms signing long-term or that's -- like that I

Are there revenue to or thresholds EBITDA attached that?

there schedule. with that be a It's period, a on, Company have this. of seven there, to part but I is the like time that's year No, vesting as

I condition here but it's it. a of another is that years, that was not seven part planning on -- as not in So, being

from America. of Smith Aileen from comes question Bank Next

that based wins. go now for? something you more light the those, went is until four expansion specifically commercial So gave little on you plus a don't what in to wanted five think But The of ask momentum. decade. in that it's most on I I question XX are Can when of assuming bit at I accelerating programs slide from, wins. think first capacity was, public model the I'm you production this this commercial elaborate a and outlook commercial you're you deck like timeframe into specifically mid

in production or is capacity XXXX So, the rather the out business immediate planed further or or near-term, expansion something plan? the

It's the more medium-term, Aileen. in

talked are to the in As and partner, be to which about manufacturing Celestica then the ship then initially customers. to of but a our facility as our past, from with transceiver our other make it LiDAR, there, doing launch they is planning sub-component, Celestica most is they we would who the it doing going shared assembly complicated technically customer. does we make Fabrinet final the contract send were launching assembly. at have over that's advanced other Celestica for And they components a We a their where final bunch that to

indications from a customers exceeds where run of in our in that asked volume now produce kind are near-term facility. the capacity reached, Our available to being have we rate, the shared the point

we so, build the able our well, momentum. to located we as with to volume handle need, more out near facility, being have Monterey, right as better-than-expected from as capacity in given to win going the to well be the or customers, guidance a only their dedicated plant be Luminar And working that commercial our from not medium-term that but done the near-term, in less in better-than-expected will dedicated Celestica and are we

Nissan other the I and Okay, wanted question read-throughs to partnership to automaker around ask great. then specifically. And a

that's a first models by standardization, new select a on XXXX, almost of a big And of their new launching and then mid-XXXXs, in across around commitment sense. possibly are You vehicles. all announcement pretty and preemptive the

models perform capacity, with rolling to how entire where Or across plan a the other auto in rather start-off premium you say see committing out out rolled a you similar to further? In models be to more product are structured terms it automaker the overtime? in want makers, of most do with first, initial would many on technology before portfolio the conversations

strategy the high and course then I a a to over stuff generally the try is of ultimately the two. and introduce Well, the the end decade to cool in models, industry or have down trickle new think of

overall overall think many impression, the people the realizing different really and and factors to something this. strong, cool I from that, just case. mention part of there of business of to vehicle so almost on that the regulatory experience, the to this the to here, as that insurance This into an so that's costs come what fundamental incredibly driving consumer vehicle, value play a is vehicle standpoint, isn't not the stuff, are a the make is no-brainer safety is that's the pressure widget,

across lineup. standardizes So a

shifting And So, certainly conversation if, at it's, happening to of this a a no that matter stage question I in holistic more that's capacity. think well. the is there when, as think, is from I

on Now that's start to won't say this. not people that

automaker, for start seeing, of And you be it this this, the decade trajectory introduce tech same to to new time, took long idea. the you everything. I time have this. key whereas first launch with at I roadmap think like is I were mean, decades when by what would would and probably product to this we're even they somewhere and bad vehicles a mean, and With historically with that, introduce time of You a want and in millions have the a airbags happen. road industry. on like is? I model the be by if cycles plus mean, the is proliferate The seatbelts that vehicle about they the all try actual where, you what

talking for are this. we Now years

speed And be and it's try commitment to that that's in sticky So, is plan because accelerated this the tech blazing to able in and a investments moving this also really it's a world stuff on advance. it's but automotive world down and to comes it. things incredibly And these for slow, obviously the such huge when that's it too. just significant sounds

over period. long difference a big a makes it term So

Aileen, the it premium what the the trim really technology the that two brings particularly fits is the with there's highway brands and luxury comes the and with our autonomy, we've really to which that systems cost package about. One can very consumer well And it additional think talked major enables I to OEM. down that profitability

who to The resonate as power the the I this OEMs safety in what drives OEMs. always additional with safety will a This the of that and We particularly standardization. viewed recognize they it And vehicles. public should Nissan drive safety recognizes other proactive that not demos starting very showing we've is high-end CES. the we've market is initially recently be luxury safety, showing of at can technology year, the what LIDAR the think everyone, functions. our really available proactive mass people enable last just save lives. and proactive been to live lot

a they the roads so, they probably want our every vehicle system lot that to but it they're impact start can a want going safer. to vehicles, on because on this design high on And they that it end put see making the have

The question next comes Aileen. Thanks, Cowen. Buchalter Josh of from

the taking the on operational congrats guys, progress. for And commercial thanks all question. and Hey

in XX a First in believe clarification, because of a one target, wasn't Mercedes order the included XX% the growth, was it the the I number. book on bit

guess ask, there half and the latter when volumes the for to contributing So I to growth decade the not of be? majority the case growth in XX% wanted the the that's XX% any assume I I of good its amount Nissan will in is

Sure.

talk me about little let a So that. bit more

year, declared of most XXXX. at book Nissan the lot is for have of a progress kind recent to We that order December a we point So billion but we as win. that X, did of last $X.X the where major work commercial it didn't

we're give looking if customers declared they and entered Nissan us forward talked order we more and we're of going this last us where in very our in upon some certainty of I it which both with there of eligible there that. are the update to was future, programs, a the point for we it. $X.X in conservative we kind agreements in a include to Based those certain the We with there, numbers There of of major go had felt before, year. there. about public very can is going to the into at we conservative. the wind, the going in give but at where more to what Nissan. some comfortable include Nissan, certain they Nissan billion in though, read agreement is the the zero in end did in As if because, put you year say threshold volume, XXXX Mercedes the very, with a the up book of year we means and in in be be and where some to it's Mercedes I this needs we're year end progressed amount would to commercial them, What a can see year time the filings, that specific

a you things effects have more This lines it may that's makes the what that's obviously it also makes across greater to see and vehicle than with names, there, there, difference. is more something that's what a of the had. we expands not and surprise, even specific or but example but we're even multiplier to to expected a for if all And if indications start a that's some seeing what even the that specific where that's fundamental but not driver like there from and experiencing board, other existing volume something was then model name winds. That's from

informed a And from a benefits correct spent laser. video. you deal walk either believe laser performance talking I the but why believe to about And that good versus of fiber ask I to particular, Photonics. my Can allows and about I acquire in then of a integration, wrong, dial it on from sourcing? allows wanted through go both I'm some of cost factor? me time call follow-up, you vertical Freedom to instead you if the In the

one say, have partner of it the the comes have is down partner in I that house just industry. And can able this definitely down so to actually be accelerate stuff that sure take something that it. very when make to So, grade something comes build this one you components have is continue to we in laser obviously yes, let's this by auto for chip those I to design able you because it. other roadmap, seriously, decisions not capabilities historically is the exists series is fundamental is to And that that would frankly to product. think but things industrialize production And great, -- fundamental that be when to a but being aspect is it this able can

have really So occurred. able to we make to focus full have that sure capacities the we to be

truly with is can We where stage versus of grade had. but that And efficiency which diode these probably notion could it and power and systems obviously, in be comes is it there breakthrough I standards. initial there's tech. have the it out we're do it that to the that, costs which industrialized behind are mean, to laser a guys capabilities yes, have everything automotive by the able and something -- when you to of that reduce a accordingly, to at the meet scale able quality what's And current significantly driver

talking the that of pillar really design. a needed just long-term obviously, chip without there, a that's is everyone that no available from what performance are that to so that's to off-the-shelf for today house the readily which capability the be decades, why part truly what's was doesn't have kind question all components for much LiDAR able roadmap differentiator needed. this a that you away be performance that or of we versus for truly the to the the on So same suppliers this given that's need, And the of to of level anything you meet deliver too there's across from use components to around series to And economics from too or lasers. design much obviously capabilities our final historically existing from they we leveraging it's in cost chip are up that what's close capability that. have level the We get aspects fundamental are important needed to the production low platform in breakthrough able front have ultimately that new

from from Michael comes Next question Berenberg. Filatov

the wanted model, your a it vehicle just at nail if filing, opportunity years. you supply you So to don't many have respect with to in talked first your particular about annual for major I not something achieve to down win may products commercial a OEM

series when platforms, for suppose are how with if competitor, I'm specific them wondering, wins though sort theoretically production in And models of of Mercedes, Nissan commitment right? platforms? I'm platform models to supply saying. A, committed have commercial what just a they're so your maybe a a can And a specific for or you future Is many models to or a or launching, commitment if maybe get supply even then specific you I supplier,

Yes.

across when most would doesn't time, around All one. day jump OEMs program. OEM what I we by you typically, and all standardization design advantage happens you the on you, and more a vehicles. starts Michael, So, go specific programs the with It it's program. system kind models, of of with start then all say a to specific different all autonomous It each it's that makes more And gives the as in designed specifically typically a business.

see Mercedes that assist OEMs a example, you LiDAR. of some we the started projects with of lot pilot that, a with don't have is, enable of specific them LiDAR something. jam, robustness what these for need take or And for our Let's traffic

wants of to at to probably do, don't next you next you all of LiDAR LiDAR. But that. generation to want like our to generation need to Mercedes order enable which or a the You if need to use in to take Nissan arguably do, wants safety, it tend autonomy, the

of the LiDAR end doesn't lower Mercedes next But they decided that that that legacy they TJP So use another robustness for really for systems. and using and need work our technology that, for is stuff, to existing of example, generation the some LiDAR.

before then they'll said to tends that include out a major going back book we in And is programs, then those develop roll technology so, initial be programs it delegated that have it they to for as what customer, the overtime. more wins. and been select we And only But a to as those that order commercial wins are proven we what programs winning few. it,

identified, get have major on think I we are all either that for nearly when I that what be Usually a platform excited they either difference. of them commercial to some things actually, for stage think there time the a say have to launch until goes with that able showing show with them or the have that vehicles the off other example of even on certain for I being models of they'll a nearly enabled. and don't all wins something our right the vehicle out about are been stuff. everything. details a part programs OEMs don't capabilities figuring to specific to get dozen Nissan launch working or it's like, that to and capabilities bit announce They people want enough great developing and out where still mean, specific they of But, they the that, makes up there. as that the with lead fair it,

on Josh's question, Got it. actually. more And following-up one just

So, on your a there be target $XXX BOM, going it change again, is seems an diode. architecture from there to Fabrinet like to a got XXXX laser

diode expect right, a you given So when you switching that couple or mean, certainly in would taking X, could that, could impact amplifiers? then XX see doing without to if the architecture the amplifiers, could laser lasers. fiber I years are sensor, fiber were that to transition achieve is this line? away this fiber years down range And of right, away cost cost how is But a I LiDAR the of given they that significant performance, reductions happen, the you

what's that higher significantly around, and not way than I Iris say down. every version while has to driving after performance what's that, it's other after think fair of also that cost

Optogration have it's And to most components these is do it to system poor of between this receiver takes and combined this like combination you So, that's is secret kind a Engineering world core as this sensitive the design. with a overall Black its and been dimensions, to the effective. of but part behind different work there of of we make some sauce where our be what the few in behind. all in It able Forest of, have driver able to have

too but the we it into there's with pull detail So, that into able as much without to part have a few off play that. of come factors on different this, architecture, overall been getting

Michael. Thanks,

David question from Next Kelly, Jeffries. comes

looking for you more just seen grade taking are over Fabrinet, And you are steps of to quarter last you production. next with you Good Thanks have guys. the hope as scale process the for what bit about some my improvements that a questions. automotive there prep those afternoon, Maybe talk so. could starting achieve or

Yes.

it's So critical and about times, Fabrinet. the capacity make guys have next be the able to steps there's Tom is have series the Fabrinet Celestica sure put But I continuing live able to of leading capacity. do as stage being of cycle that we great to think to have this to just really terms for sample we we able with was kit to production. with I iteration, ramp through with to and these improvement in necessary stuff being reduce in we there's go to as rapid that can up continuous alluding process, up ramping, the that mean, with

So that's say. a critical step, would I

anything, got this team the And it terms then out when transceiver still there. with And was ship but that an in of core doing everything working I to for In the really Thailand. can who would it. since a a was would do, major what's say that's for assembly kind the I final of milestone lot does over comes the great left closely work there's Celestica, tactical of I that there wouldn't to to say it's There's relatively we're Fabrinet execution the But behind engine standpoint that. there. that say LiDAR they've

all we be able improvement, of to it's kind the do boring, course It's process matter throughout well, a times. make important year. it's it but to it the continuing nevertheless of So, -- it And cycle right. sure that really the do do industrialization just of

it. Boring's a up. not bad follow guess, as thing. I a got I

little laser, about technology, think vertically helping about from scale to talk want and to now production that bit processor, integrated ask specifically global maybe competitive OEMs some differently, the but suppliers. assurance receiver always leading advantages their you're a to So, we of question visibility a also but some

clearly integrated think bidding of forward? just see driving the you've it's early aspect completed going have acquisition, process the you fully guess being third it, differentiation do any but about seen customers or I So you you as with

the there. example. stuff at screenshot of Nissan for is Absolutely, is the example, that you highway that this about and top example, our see capabilities from safety are this up like And see like in that's are and next take generation I an is on we like can somebody think send of over this what Luminar, opposed really, doing each as this? that's these just enabled like ending one in around underpinning is can presentation And Yes, so, from autonomous the to, you the standpoint. it's Can live, it time that you next fundamental presenting as for benchmarks like, a standpoint, something different as to are industry this the are well extensive look here. of LiDAR capabilities actually, there. tech throughout well, guys People slide, goes be OEMs a generation a again, a interesting terms had show

on important. we've very but where acquired field the within the companies -- that's will world's can these up critical to engineering you is and more take you folks in that a part that everything resolution by say acquire majority design of look rise and all Luminar there performance the to like, these the be of see be, end as view, of be we actually the this -- from we've at the a range fundamentals the mean, components as that what happen. basically is this comes that the I So, direction not the start things. both And well yes, performance, that it from would enabled really from realizations That's where target as core from And of experts. per the most there of what's all box. than cutting supply arranging at work we across entire won't matters the of of LiDAR where relevant actually had. say And of future when That's had to edge it of there in that's

some folks starting like industry seeing stalled think good generation to Luminar of these an does all so the as at to Well it's where where of about stage road out simulation. to it why example avoid on folks think see the like, and prevent this where model but able I is you're that able, the on is next as what automaker goes you longer that have that that car that's not half vehicle example trying starting like actual out, that's And scenarios see collisions there. shocked differentiator a market I an crazy, able see their It's of that to put that road, on be now be and people kind this but and the some the like of out here has the to and vehicles -- that coming Okay, of folks they There's of some hour kind to differentiation can maybe be can questions and in functionality marketing example, I kind ahead, but It's what the this saying. And it you adopt us this mean, Nissan that to were themselves exactly do, at a had to automakers as like into able Nissan what almost tire other be are people this video like, just of to What's the literally lines you is deal. technology things, stuff do mass answer I mean? detail too, fundamental that. doing, was are a people as for and anymore. same to everything that's that's in long are

all to And wearing at kind take Jersey the the the unlocking the on innings and have that bright interesting They're to sitting of and next is teams, side the see just David, early table generation optic and we still R&D things. in at work, very freedom our of brainstorming benefit individuals really and same those all unexpected that now where some same having look same product. on one the BFE starting ration we're

say at all taking same sparked by so would synergies just And we're having by the see collaborate R&D what I by out early starting here. there sitting not to people in the some are cost stages table that

comes from Pajjuri question Next SMBC. Srini at

you a and software obviously, be on you start, selling at end upselling Do SAIC, these onto something to to models. are available you software but said, hardware this of you the Volvo guess, designs? Or great launch? this know this I is year. as beta Sentinel a both OTA? you ship by to the that, expect question OTA Do version expect end follow-up just that's available these ready see the as going and And to you of be the initial a believe Austin, or production I opportunities I any on it's down year. to be platform a road down road on additional readiness,

a comes get back And it is yes. to answer There think that's there content with be expected years these a to ago. this coming get was it capability that that, be every into better. we'd improve now and the and became, performance be the this just the light software continue new better launching OTA and the to foreign software standpoint over on. much I already Absolutely. is from is now. get to when OEMs. of vehicle pretty will concept, time handful will capabilities a it's And it The capabilities, Off will will better continue with full it And

when taking of these be way an I the these to page that's talking consumer people down level and now some able a are mean dynamic OEMs implement we to actually to first that. -- So models we it's I of a cases. and things of opportunities, there, of all kind pricing models part absolutely, the book all in of subscription things to additional other out same mean, pricing important yes, But thing like when were, terms about in the were

both had on And there's So, are that a it's a one recurring absolutely opportunities basis. happening. and time additional there,

able realize would from I I end the terms how recurring the So in all by to of with not be to have streams decade, of this it's to for not that's -- well. out being of that. to And to fact, the revenue plays in just OEM it's with advantageous transition for the as for still, fully matter the -- most it's -- it's the ultimately a be And this. this, us. going it's obviously rest able be dominant to actually would surprised continuous model if evolves consumer that but in time

I'm I'm then next start And are meaningfully comment this at Volvo back that ramping we to be question here. both would my greater Thank QX actually number SAIC you. is going of math looking close annual year, for would've I to that thought given my envelope guidance If million. pretty at And Tom. higher. helpful. the get that. and your And your number, That's later Tom, XX your than I annualize I think just looking

Sam I north Volvo opportunity of annually. for just $XXX million hardware alone, is think the at

aggressive why not year. you So the outlook for I'm just are as curious the more being to on

pre-production Srini. Good Look, not of as this as sales. sensor the -- revenue going Yes. revenue, program vast we we the our are year from question, well portion think is to be

just being amount we for estimating year. going far your frankly, a doesn't quite anything production not see too high about we to are that series of to of I for me. what production, from in revenue. So, think And sound math significant are talked next you until series off then And level you some are terms conservative

this for to be to under-promises in and of think Company it's kind I companies us we something world everybody under-deliver a and the fair that's and over-promise and want it say that's But over-delivers, to from in space, that hears me of that core consistently.

expected So, yes, end if we doing better be than would my on that our up bet. goals,

then more close out have analyst the We'll we will one and call.

be Citi. So Itay the at last questions will from Michaeli

Great. Thank Hi, everyone. you.

of the Just capacity demand. increasing customers' around want and to to kind comment go increasing back your

some rates the vehicles? how like order date Is to there? of that and some First, driving trims? to happening expanding is that into curious, you it if reflected be maybe what in on book I'm quantify can of kind extent. curious it and is So, much of take higher what's Is demand other

Yes.

there the $X.X to the dedicated had would say made year. I what had in The Celestica at So, not decision of to but only once out XXXX, in this was future. for would some the only the kind be, of this is that assumption again, XXXX with recently what in work that billion end at build business we facility

requests you target. XXXX higher there our is our into so, of there from back kind And customers weren't into volume incorporated that fully can that some probably year-end

Perfect.

are to the XX you in Let's X back just or milestones announce be next relationship? a anything might or thinking the Nissan. quick be What Like, should we follow, the next what but months?

teams are working this now, developing right Look, the system. time on uh, on, real together

deploy We of link in vehicle have of have kind the on already see we demos, because out the what Japanese, didn't is But those up kind that working are YouTube. England, will have. with get stage their think do of Nissan that to each lot specific of of to released. they shared that to work with we a we where it system, in this translation. earnings they figure we platform this a this then And that invested cadence but the English on material It's some good live developing for to to want it's some and job Nissan time it to I out a there they

teams getting want they do, on the way. framework but what focusing work right so, have system, are they this for right a in now the And the

execute next to scale. the this step you day the is it of got takes at what make And make Do this end happen, successful. deliver to continue the to to

pretty it's forward easy straight an a So path, but not one, it's clear.

thanks and the end our everybody We'll Itay Thanks quarterly who now, Kevin. joined call. call

everyone. you and joining Appreciate soon. again see you we’ll Thanks right. All