Luminar (LAZR) 9 May 232023 Q1 Earnings call transcript

Welcome, everyone, to Luminar's First Quarter of 2023 Business Update Call. My name is Amy Smith, and I am Luminar's Head of Investor Relations. With me today are Austin Russell, Founder and Chief Executive Officer; and Tom Fenimore, Chief Financial Officer.

As a quick reminder, this call is being recorded, and you can find the earnings release and the slides that accompany this call at investors.luminartech.com. In a moment, you'll hear brief remarks from Austin and Tom followed by Q&A. the and we spirit of remarks will questions online quarters our continuously the today, prior the submitted outreach, at questions. shareholder be via followed to by in our of the improving tough end analyst Similar of platform prepared Safe addressing some

have that note be of window our Should the there for time. through questions I would extended platform end also via better the during uploaded any that, we submission the SAFE call.

and remarks and during the prepared contains let me may Before to that specific the we based include non-GAAP environment differ information also such, and currently Q&A, business remind everyone Today's the and refer risk hit on begin we forward-looking presentation release statements does discussion we risks call, as on could financial for GAAP to factors and measures. more results Please cause actual refer that the uncertainties. as update materially. to press our

With and that, I'd like Russell Founder Austin CEO, to introduce Luminar's

right. . All And Amy. Well, thank you, everyone thanks,

awesome the a you yes, albeit many and on from coming team have face to maybe familiar sure I'm So to NVIDIA.

of you financials Q&A looking for that, some jumping then to in and handing thank off Tom afterwards. for forward before some to So right and the

a automakers the So map. road standpoint, start all with We're on our certainly scale. commercial at cylinders to working going firing success advance and global to a I manufacturing we're to overall off. both And on mean standpoint, great the year. to be product able

areas So it off I handing to before these of use Tom. touched on

series scale challenge that successfully the to to able an production from So industrialization fundamental standpoint, is wins. first, with these high-volume be really

the to our on volume. continues be year-to-date how to strong meet we these building can progress demands execute continue necessary show automaker to able So to growing definitely and capacity our

that, guys can a whatnot screen take Do we you look of what and for a So Awesome, do second. slides Awesome. you okay? that share if is see can some the maybe have can it

into And go this. Okay.

So highly and successful achieved QX, is Monterrey, build our of new high-volume first there. automated facility partner, this we in out in Celestica our And a manufacturing with bring up Mexico.

this out scale Luminar of new are to major us. this Luminar. vehicle guidance dedicated with QX first centers series now prepare global Iris And of at milestone Volvo achieved we launch the of already for So facility the we we production as the start ahead first shipping gave

on of lines So exciting if stuff, take that the room It's or of production a and massive room we a the in actually centers actual the even a all look and successfully you some build-out clean clean repo line. did environment.

see team So folks quickly you along can the you way. of example is you of an one all from alongside that on see come have to leadership that And there together our a can construction production. with some like the automakers of that's that's calibration very standpoint, this how from do

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came Apple with smartphone So and to that's multibillion-dollar and the leads automotive when around like for Tesla a including world, recent into iPhone this is them, sort the of out. it our tech up to they really for comes companies and TPK, partnership multi-touch supplier major us so when that the where built it modern display folks original combat what

to So driven with operate factory partner technologies rapidly in very to additional growing working Luminar for have familiar us with volume them higher new to advance Asia. that's way by even and in demand an able be

example, sensors to this XX,XXX initial capacity at to automakers Luminar of to batteries already the have programs up Mercedes. the time, will from support be for year per able the awarded So like,

primarily be to support to So in -- volume and Asia. able that's then

has to which So been off. that continuing take

Luminar those current ability end is So levels. just at be to demand the on beyond this as equipped Asia alone. capacity of vehicles number throughout we're ramps the expand expecting of the the the contracts seven-figure decade, a context, further to VII But Factor for

the in brings that a able to ever which XX Show and than sort that for about the So, standpoint. into, year did a we whatnot of And to And next for the safety product order clearer global had, that what the also a go that and next-generation all demand this the the the context this strong recently, was are investment the plus it's for but of those kind automakers, doing both million in. it when our with out are momentum, can majority will it commercial designed and Luminar on kind of when China the it’s which of than into. bit signing many of too, very think of ceremony it is But is we're about slated whole we there per are PK thing, were very, they're working production enable China sold China XX that more with talk from has models to Tom vehicle vehicles commerce comes from exciting. topic so of we so partners, is incredibly guys we're Shanghai guys at be I half limit Auto to market. more now autonomy It's when little there,

prominently time that Polestar the And train first good X out stage on with the see exciting off very Polestar the live. shown on of like Luminar to for you can and very therapy example that's see

great able do. So to that's of they're example a what

ADAS happening to an there, safety already too, long from the capability out live on So, with Obviously, production Illumina there already a so vehicle, with first you it integrated driven to also the the a that's autonomous exciting got enhancing China look and with detection out case systems what's perspective on season really Thomas the at -- and take that SAIC RX, in to experience there benefits the take are happening when there. capabilities a time gives for today range actually a

introduced Volvo when And was Volvo and it the next what XXX excellence. what's to then announced comes new also had is

this all and impressive is model, a derivative initially XXX I the X-seater of slated a for course, new very a of the around, is So China said, market. that's really, is just

to So automakers down how on us. double show are to continuing cost

we've couple other the this other course, wins Of weeks. new just but a of past some expanded one automakers, for sort is with announced of the of

on said in recent internal the terms just had call that projections the preorders most Luminar You were. take has all the what is bits even look vola earnings a news One Rowan at what impressive, with ambitious Jim interesting excellence. boldest EX so on of around and And recent had surpassed they and the of pretty XXX that CEO, for the company's sales it's the of the stage

out you're sold do going for they be and up that initial scaling So they'll run that then, exponentially. to obviously, that

brand, points their why a as would see there press on highly key of for guess of actually differentiate you where you So can the the kind conference, competitive. part featured buy Luminar market Volvo, is like the we of future fundamental even just how that and like of it's I one in

as their lineup. announced of that covered. Polestar earlier course, I across that in in QX, with models now to said, expand moving their we be continuing different So we we'll was This

be integration, be this the further So including will out to on to X after partnership foundation that able provides on this. LiDAR expanded the Polestar that collaborate

broad close their prior and new quarter associated production course, of a Iris+ mid-decade. of companies, too. years by this vehicle collaboration announced sensor of QX, two between Introduce across software range our lines after in our Then, next-generation Mercedes-Benz plans

when So to comes improving for course, it's capabilities with as to roadmap be really up there their future work vehicles well with of it great safety the to and possible what's all. them be set bond help leadership level auto of speed for the able to as

So Jensen is Huang, alongside to they're their own Markus. Nvidia as there guys awesome with around. health board, well across as CEO by on the event, be Those are investor which all great Southwest stage

one cloud So the sample perception their their and in point featuring of cars. then in Luminar --

we're But, this the on obviously this products. product execution, Day it. focus the product, them we industrialized and lead OEM so able Iris+ is Luminar continuing have of to samples development course, successfully not just but for been next-generation and current through with that over say one of Yeah. already production products, announced surge delivered And to

-- through host a cases XD the truly to ranging our it of go different it to to has this successful cases. to meters able largest or crazy sensing edge long Mercedes' see beach to be to make able the the You can test to lidar like knowledge, that and different an and XXX like use just over being make show by cover is example standards all facility of least at have case a

B sample that product a all we a to So delivery. on working year kickoff great, was proud but huge started the ago, to it little I'm the way the while Obviously, to say less than actually milestone. for customer it

cylinders again, firing with manufacturing and another form this the core showing along to things important process where milestone and make software that all engineering successful. a to ability way strong through all execute we're So and have the that the entire on

yeah, obviously, C-phase our Iris+ able on entering this to be achieve of So to as track we're -- we're of and part -- this the well goal year.

out and lidar what as question, -- talked we Seagate So announce else the well So our we formerly in are Argo Lidar whether what tech at was Luminar, map. welcoming accelerate that what are Luminar about road as India. as announced team team [indiscernible] to on the we the joining also today we Day Happy doing? of part team

Luminar as more of of to map kick the able then of how out in and they're existing the that's on map, on and And to there Princeton joining just about India high-performance part establishing with be again, continue Lightwave engineering a about great known with our partnering Argo, office is to case, So sort photodetector the accelerate to really formally a do which semiconductor technology an minds to starting, accelerating advance road in what's laser those this. we're resource continue our as case road our products. to for we on the rapidly. pieces, And start successfully how team,

great -- will to that to be this be So able do. be will

expand to continuing global at So scale.

that the -- echo the in the I with in have and photonics, respectively. for course, of and for not Luminar we'll and QX well last again, some system highlight the receiver, just chips, be the Black we ASICs Freedom as So electronics QX as between least, Forest want laser processing formed Optogration, to new semiconductor partners

be in to to powerhouse together able those very successful. have US an semiconductor combine internal make the be this to able here we to So

scale real specialized it's to can is course, to expanding key And a to even of But it successful the which unique product create be able such technologies do Luminar. there, able to for with beyond. to able leverage we've of that's when chips this at to And development those cost LiDAR. effectively high-performance it, technology for in And to very, a really contracts building being being engine world across had very critical other product. think I industries, and for too, comes scale down already the so

not we're stopping but -- So there.

and added what In have just those, this we're it. -- is actually our alone even exclusive terms what we ecosystem are -- of is about where like partners in talking around exclusivity that contractual four of We've QX.

from So one was about. TPK them what we talked of

up. Re. all So We've video. They're which insurance came all got Luminar exclusivity we they're that this Swiss XXX% with over on CEO, thing with that's the Luminar, Swiss partnership signed -- in they're Re is on have the up in

costs providing for speak significantly able ultimately, with providers to had well advantage insurance able help will we're from data cost date take Luminar lot of reduced provide already think to use vehicles solutions the to you worrying those how are and the that partnership to total be ourselves limit of to about as by as, to they're automakers the with the today. going have from I cost insurance ability Luminar coke for in and our to be ownership Swiss thinking the lower of that that I -- -- Re a of we things to insurance

our of LIDAR close is, Seagate, course, that exclusive their using part that we AI and that Scale Luminar Luminar a strategic as again, deal great engine, we're to know partner did. of then they're for and

possible was out and them all what promises. we show business, just build around to all on great progress goes our to the scale execute just of and it yes, continue So as

to off to So I'd remarks hand for it financials when -- comes with love milestones. be some it that, to able to the and Tom

our much, start going milestones. Well, thank progress very off Great. I'm All towards by XXXX Austin. our right. to reviewing X key you

is first scale. to The successfully

and our of to meet the requirements Our target is online this facility bring manufacturing by year. SOP automated high-volume Baldos end

to on in now we production end validation a to ramp focused weeks year. of the As up highly of completing the few and dedicated is team by up this running announced ago, schedule. this automated The necessary Mexico remaining facility test the ahead levels the is facility

is road milestone to map. our product technology and Our keep advancing second

this Specifically, Mercedes Lidar prototype milestone. remain Iris+ the year track our software to next-gen this support a Volvo and achieve for and targets C-phase, entering include building to We completing on SOPs.

Specifically, we to delivered several necessary samples to lead achieved our milestones customer software support Iris+ this BX quarter series and production.

to milestone is book. forward-looking third grow Our order our

We customers mentioned. as been vehicle Volvo new have Austin programs the already existing awarded that this Excellence such year, from EXXX

momentum potential addition, series We customers to billion forward-looking with new In production accelerating. on order least this is book our track at commercial grow year. by remain $X

sensor financial our QX. up was guidance, due primarily quarter the for XXX% revenue highlights higher for Let's ahead now sales. of $XX.X Revenue turn and million, program to and to year-over-year

$XX.X and significant loss improvement, non-GAAP we the million almost in on of reported from basis. gross QX our million a levels. a was half on basis GAAP quarter, cutting gross loss sequential For This $XX.X a

details A COGS and on our QX few margin. gross more

we quarter, as items the launch-related to launching and dedicated achieve approximately of advancements, facility COG inventory we and obsolescence’s adjustments write-offs, to incurred a like from expenses estimates. significantly cost expenses, product million we year NRE primarily These Mexico the of to expenses new During our expect progresses $XX consist of contract due successful which launch. decline

As these up, the facility non-GAAP turn gross a positive our basis should on down year. and end our launch-related wind this new by of margin expenses quarterly winds

$XXX We cash the equivalents. and ended with quarter in million

cushion capital liquidity reach mentioned us this at leaves plus Day, I a with As Luminar profitability. position sufficient to

which the quarter. from last improved cash free was slightly million, flow negative $XX QX Our

was In addition $XX of just we negative cash to free launch significant expenses the to during discussed, were other QX half of the during expect COG related I year. expenses there Of million that the improve second $XX the approximately in on and tooling mark-to-market investments other such flow, million expenses items like and losses on our another expenses, million security $X CapEx other cash was items, as new launch-related leases. on contractor deposits payments,

launch and we towards costs progress up discussed ramps facility demonstrate the expect and business As we Day. new goals solid profitability our to Luminar ramp down, our at

our the to improve approximately to run compared by year expect rate QX we end cash levels. Specifically, of flow free XX%

two and quarter, the our earlier strategic first put we activity Seagate equity acquisition year. we including in and executed acqui-hires the the earlier program down by million this from existing transactions, During small place this by financed highlighted M&A $XX several drawing Austin strategic

existing this year, put vendors, days, we we In a supplement consistent provide shelf the to plan coming with it outstanding. total our registration current the stock of will file in and certain place Luminar our to about X% expect instead last to of to shares strategic who prefer cash

Finally, whereby million with reinforce a to $XX with guidance All these up $XXX will have entered our of definitive outstanding. into year-end we partnership, million our Luminar. TPK, are actions into invest recent they to shares agreement XXX to consistent million

we to financial at want affirm guidance I discussed XXXX full day. Lastly, all year Luminar our of

gross in end million account the margin and liquidity million with positive $XXX least this non-GAAP million quarterly at Specifically, cash at XXX% year-end share a achieved and by $XXX year we least in $XXX expect the grow revenue to range. year, to and

the the another second for non-GAAP be of revenue incredible the once loss would XX loss For has broader million QX our million the team XX, of to this progress conclude, a on expect quarter $XX I operational similar basis. great to be the like again thank range to that's Luminar relatively the we and of to year, team $XX To and $X.XX to to in made. quarter that EPS

for it Q&A. over I to With will hand Amy that,

on the of questions. to analyst Great. few move questions start the Q&A going then with we platform, to we'll Tom. SAFE Thank our over and you, received We're the that a

when question plans be received Luminar our the profitable? are is, So And will to get what profitable? first we

Sure.

year, we track So be to gross this. reiterate on quarterly Day, expect for on a what basis. basis, By discussed Luminor this margin the at we're and to profitable of end on a we

to for and whole core quarterly company. be in our the next expect the We end XXXX, year business on a of profitable then by basis

and talk there we about profit kind let's of Now, get gross year. how this

million. $XX.X As our of about quarter that this that costs. gross $XX just million, $XX.X mentioned, launch-related was was Of loss I million

should as And be those reduced. costs so, launch significantly we

new them launches, clear our that revenue on would year. as structure milestone to trajectory units of able still be bring was a we because facility then And I will we're to already. better have wasn't, less or cost launching, we in If today, to process get this benchmark it year, the we're producing at and zero that reach more than this better into we'll where the that

Great.

uploaded similar Our second combines the platform. two on that were question ones

what implementation; have markets is of LiDAR to Luminar vehicle platform and vehicles? technology relatedly, expand outside outside into First, of two, considered you applications doing its

Yes. The focus you in those commercial our areas in is vehicle because while get significant primary the where can today scale answer launch are landscape, benefits. passenger is, trucking to the

adjacent about Airbus, past focused We markets. are on some the side. the doing on and aerospace of in defense the what We've we're with talked

of have Research We us players to in help other with the areas markets. like Robotic adjacent partnerships strategic

we focused focus time so vehicle And area passenger and trucking in the to focus the for that an are is but the for on these is the that initial landscape. primary Luminar being on, commercial launches

to an like say, that the levels already across to when And we adjacent LiDAR level, different programs, we from all I double-digit technologies the market have, it of leveraging number the level semiconductor applications, they're develop. with the will comes even core

we of say? business, the automotive trillion-dollar develop those but is for to good, course, It's the products, It’s things. new it's market So so don't high. other

analyst to and How LiDAR Okay. is going car on we Luminar seeing And our final question be production before technology on we when community. will move lots. the local

I them And Volvo. shipping We're the there. initial production the new at a see can end we today you're the gave But production coming to year. batches of said, the with an for as if on this already we China, plant we're planning online. with the launch you Well, think update in RX

all who continue We'll question. the Well, thank shareholder to a engagement us. with use submitted everyone, to increase that you, to investors a platform as

through queue would And Let's our getting initially via their just back zoom one limit in raise and transition the hop analysts then ask analyst to to questions and the follow-ups. hand many as to possible, again of analysts interest in time the questions. for as to function the or their

we're at start So with with Buchalter TD analyst to going questions Cowen. that, our Josh

questions my book Thanks manufacturing and guys. the for I about the billion all target. growth wanted ask congrats $X order on taking Hey, to progress.

a announcements with know the inked and this of Volvo line doesn't number timing Mercedes, they're made when year You the at others already end. the on up I announcement expansions of Polestar, always public back with actually

was help how need the much billion been hoping could you're has understand won So still the at you I the book us if already maybe wood there? that chop you open of is versus to still $X order

Yes, Josh, May. in we're

has number still tally do there's details into to of So $X That much how going the chop the I'm year. of wood as we that end billion. grown terms any some not the there. go at in to

the contracts Polestar those for What I are actually and this last of year. we Mercedes, is the earlier announcements year would say big made in end towards

the So of this of as are that new did we they There items XX. the are excellence, EXXX included some year. like which were in LA December kind

share chop of already at the year, in any some the do And kind that very end we going what info on percentage so the billion, $X But the confident we'll of the get tally terms we're there. wood I'm number. to at to not of least way of we so to saw

Thanks in Best of I’ll the hop back queue. luck. guys.

Josh. Thanks, Great.

Kevin from at going Our next come is WestPark question Capital. Garrigan to

Hey, Kevin.

and Luminar a know and Good on Hey, option thanks an the And SAIC afternoon. LiDAR Yes. Polestar. is I guys. question results. for congrats

give the of a you So I those of shaping kind can how kind of are wondering us if take high-level rates out for models? was view guys

Yes.

data So X haven't real really rates. Kevin, we seen on take any yet Polestar

on consistent We've mid- that we're So would really that. kind percentage we've It's nothing what there. take kind standard we're to been the rate. modeling something seen The say, there I in with of single-digit share of site. Volvo on to that is what is high --

you've so Volvo coming would terms around is that for of say something and preorders seen what And commentary some like I look the is of that the -- in that.

there, be about take to So of because we'll that XXX% EXXX we on don't the they rates produce. worry have

Thanks Okay. guys. Got it.

$XX,XXX a too, Probably you very if $XX,XXX significant cetera, take of difference of course. rate et a there on see like versus car a car, -- also in factor a you're a multiple

these course, the we I of off have bat -- when So we it Volvo off take with And conservatively that -- to where volume think standardization. try model very -- that's is kicks though, the exciting to it since right very very, the rates. comes but

makes That absolutely. of a Yes, ton sense.

Thanks Okay. guys.

Michaeli Our Itay going is from next question Citi. at to come

Hi Itay.

us perhaps now for can additional programs little with Tom, you're everybody. Great. you seeing you at just just Thanks. new on point a a seeing more I momentum demand you're the seeing you more basis, Austin's on a do whether you mentioned you're funnel. maybe curious, there if incremental some give regions what to was us expect accelerating. about bit before, what Hi fitment high-level, perhaps bit hoping, a standard customers source can to give

the Sure. it across regions. seeing three major We're all

China, well three which Japan we our If you be North are We much on announce at there, be it Asia and customers to into detail EMEA, announced Asia would to call said, that. it more as America go want wins major to What wins. I that Korea. when those could as as countries tend within the and looked Europe, don't ready

more garners also with that kind also The we Polestar foreshadow with as gun industrialization see we expand like get or to good get others job Mercedes, kind of other our the to the like Volvo helps do as to we as or RX We that and us as get try we news The closer anything launch that. there is, well. closer interest. OEMs business clearly of don't out Volvo,

on things as that we As into we in a making of these scale. much detail industrializing are lot and go path, to

so, in to to that that's another into them. inflection that and You once that off to point, get increasing the orders. really actually I risk point we're that converting table don't the discussion we be terms business Look, also existing customers actually dialogue in interest about with going new expanding all our and of with the think do and you take real

primarily the And well customers is publicly they're really existing which to there. SUV, The stuff, will guys. We for Volvo we'll the going share you announced when China with EXXX ready be market. announce discussion with

very helpful. you. That's Thank

key prove on the see we same there, global message. continuing think ourselves too, you OEMs and down the tamper successfully that way. I is to with, the as just along look execute that the major double at as customers, us continuing And we're all that's and working really down where same they're basically on to

things out why other And speaking like and Luminar even during that. they're Day

it's So automakers these Only a whatever in that volume is can in there's within to And book the go lot there, more part a small for the too. money still great overall even order a do. trend. of even of terms total

there be out very we all will get as that very it -- continuously. prove good, it's So, ourselves

That's very helpful. Thank you.

Itay. you, Thank

Natalia will question Winkler Marcos come Jefferies. on Our from next from [ph] at

Natalia. Hey

Hi. my taking Thanks questions. Hi. for

you I bring kind it to be about or boundary partnerships. TPK guys could of of there, would a there probably of any CapEx if are the that wanted have to sort So elaborate, Tom, ask would arrangement? requirement you typical kind

be put and going lower significantly new What spend have running. say in some Yeah. get capital what There to to to Mexico and running. line going we is, is than to up that be to up I to it's get we're going would

few that. there's reasons a for think I

a apply doing and from the going second first it lot efficiency a amount the when gains. be time, wanted lessons we to those significant to One, there's going to time we're of

dedicated Two facility. to room brand-new Celestica's existing of ran of We a is, out in build basically have we kind Mexico, plan. at

running, clean spending. room, you the of And that we've as kind what in all and so getting cheap that building a up from see been

existing It there. has TPK has capacity in an facility.

utilizing including existing we're So of clean a room. like benefits that, some the be to going

the The to built out doing going the equipment relative said, second first. to need And and be for improvements time as amount a the it some of not big the to year capital going kind it our significant share I spend guidance to there's next amount. as line, this new And of end actually is be part plans that some of of this year. share them, to year. details probably is XXXX the Most the going finalize like to we'll of we'll going as that's of be of what look towards we the with we'll

Thank you.

yesterday, as it. investment that where of just which alone majority It's doing. think, from covers I they it -- over like basically basically they approved, they're The their also what

So, they're a with great partner that.

next from is Mark Delaney to going question Sachs Goldman Our come at

Hey Mark.

the you Tom, on focused COGS. in reduction

year about was as you but the of anything those So better perhaps And you quarter. quarter balance COGS, all to more comment moving understand and the think to also fourth of puts R&D from takes pieces the moving And the the to give R&D? I different on well? could if was first there between color and hoping some on Maybe COGS? the a then can over us little how bit just and

which actually we we R&D it's I a you in program The the performed typically COGS of may expenses, engineering cost calls, up service move mirrors the I for past development customers would Yes. as line some as would from lines be program is. get -- for what typically I to to because would that do early production, providing revenue recall the say, wouldn't development number our series that say some of say we that, our our ready for that our revenue customers.

of doing make example, through runs there for they the stock-based of number that are Are people? comp to can depending say, There Orlando -- work, engineers and calculate because number, other and that of number mix compensation of to number. to one-time jurisdictions? that out each goes need engineers, some would our are, for And up have go and I we are rate adjustments providing that the, kind we actually periodically our that call down as upon down, work the up more they or it,

million. a But closer number and to to the kind ramping and down. relative some you're it Mark, same -- was are of kind into in up of kind as ramp of that we closer increased see, of improvement kind that into this the how benefit is translates get higher I that to as we're starting was That of launch, starting getting those launch quarter the bit $XX we're of QX, up time, And embedded as terms of little bottom-line. costs true when the then production, to to better revenue you that think line at the kind of the in

from Samik next is Chatterjee JPMorgan. come Our going question to at

Hi, thanks for taking my question.

seeing sort the you're of just more platforms. what So, question technology on on a

autonomous One announced competing internal working platform is been trying how technology many the investors large counter of driving side-by-side some run? platforms about with runs that Volkswagen had Volkswagen are and from camera-based is OEMs today probably to or carrier and that to partnership suppliers Pos, which on questions -- the

pipeline what are or really center more So, by when or it for you funnel geographies, global? terms your are and your or of you brand, sort like really you them develop -- Are from seeing at technology look platform discussions, bidding OEMs? more targeting you in is certain you. seeing of platforms by like Thank

so a parallel do almost I there that I'm sure on at or impossible table the else go really really -- day, to the think taking out a strategy something on why OEMs it's order see approach working try to end have like of not you in vast in completely up is the Tom's that to to all of that's of a is reality introduce at complementary great paths already giving it's are like thoughts to the you strategy. be sort But -- least basically multipath too. that mean and so have at be -- is given absolutely, question. effectively I much independent majority that you so there, No, a able one challenging the there, pretty

that capabilities see world will like enable driver basically we certain you with they're to course, almost are then like in of the a start partner have for end obviously case ours, great. this like out like. You facto safety levels you loop of platform things given mobilize continue driving of when think base exclusivity level assisted and has a the comes NextGen a would any up I and of still development there's this, when which But of technical to is of They're to de different capabilities stage. it too, a of

the think -- forward. part the we saying that obviously is is automates continuously that's shifting everything And world that

moving So reality the is I that's people realize is, and hard. I so think from. ultimately where very is think developing more it's But software more the that

center of globe the is have this. in we everything the best talent have. especially Valley, have that and and and And where Silicon where and across You AI on is team to the the also widest

into it So that protected But all it's dollars think for work make all-in clarity nevertheless, over I of it's billions single the to important. of we putting with, the path OEMs successful.

to for -- generally be But wouldn't if that's again I make surprised other some too, that surprised I good in trying So work. a people if instances be some to something were thing. happen of very that the if that wouldn't were were there,

add with reach flexible. would In their work we're I them Volvo thing be only with to we're the the is to a and working in-house team, Samik, software launch. to our case, hand-in-hand Zenseact, successful strategy going Yes. is

We Qualcomm, like also of Mobileye, integrator. with partner systems leading kind technology NVIDIA, the

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Thank you.

come Emmanuel will Our next from Bank. question Deutsche Rosner at

Hey, Emmanuel.

Thanks on Asia It's to results. to Emmanuel. on the we should question. I the how line facility rate is Congrats the hit just line the Conor Mexico thinking time my And about expected the XXX,XXX be what is? run ramp taking Walters to in with time for TPK? ask for wanted

Yeah.

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so Okay. very That's Thanks clear. much. Got it.

a Thanks lot.

Josh follow-up Cowen. from a Our from with come next Buchalter question will

get back in I'll queue. the

and So adding we've engagements, expanding lighter certain seen models not customers on examples their of other our models. on

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technology So is to down it I think to with the map. that product when and comes it has reality it, road the align overall

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Thanks, Austin.

come will at Jefferies. from follow-up next Natalia Winkler Our

you that you wanted providing something guys in kind actually of the thank that stack and the about I milestones software. you Thank about sophistication talking color -- for system. follow-up. talking where to talk that it software? But, more device -- level possibly also it the Volvo up sort goals, for please on software, sentinel? taking on Mercedes about mean we're when of you the you the there are the is trying some you you could could towards for technologically what the achieve? talking elaborate or my I XXXX confirm if going Are would be? And that of you to milestones? of elaborate that on of at those to Does kind kind are Are about about guys it's be step in feasible,

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or get over XXX primarily we team at have a stage, in Silicon have this we Valley. some So

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opportunities continue have the So I we think that capitalize will be to where on. additional to

Thank you.

will next Goldman Our from Sachs. Mark Delaney at follow-up come

missed I mean second a quarter. couple in you're for questions. some and Actually how those the of will start-up Yes, Tom, you follow-ups may the just production. Could for second on costs spoke about the I costs line thank XQ? look you start-up quarter. taking gave guidance what what follow-up assuming you you like the those for to talk decline EPS it,

my then was just you've around question team. some other engineering made your of to additions And the

engineers. Argo. Maybe maybe little what to did an relative capabilities in just of like a bit add just is to Argo, cost what was or And this there could adding you that acquisition more more talk that that around specific accelerates had? financial or to if a already Seagate, terms what paying, just did you Thanks. – You Luminar price you're

going development as the with team at Austin supplementing Princeton, team, you right? questions they're semiconductor. Luminar yes, that, So when the set around in Day we start and second business. mentioned, look Freedom to really be of at LSI in helping terms want the Argo I'll We laser team to Photonics Luminar Photonics the talked grow in there of Freedom do some the that the about particularly, helping of to out

out that India. at consulting look team in team our of year plans over over from the a Velodyne, now, contractor services engineering build in we're an India, to we of fair was in kind over it you using When India. in Right of this and took kind on amount

of us those help type they'll of costs. wean us So off

those say going M&A costs there And terms the would considering some I housing cetera. at deposits, Those there's least minimis, are but more those costs in et adding facilities, people, -- acqui-hire be security aren't of opportunities. to the

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in would second to the half as happen And launch you'd more see year to in see the in this costs to of I those opposed start improvement so, QX.

analysts questions. look the our that and have the call analyst with for forward thank to and marks joined like you would talking in who the participating have All to I for for and quarter. That other of the investors us. next folks end queue We right. the everybody questions

lot Thanks a everyone.

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