Aeva (AEVA) 4 Aug 222022 Q2 Earnings call transcript

Good day. My name is Stacy, and I will be your conference facilitator. I would like to welcome everyone to Aeva Technologies Second Quarter 2022 Earnings Conference Call.

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

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

conference being today's webcast. and reminder, a call recorded is simultaneously As would over Investor call turn Andrew I the of to now Fung, Director Relations. ahead. go please Andrew,

Thank XXXX second you, to conference call. and quarter everyone, welcome, earnings Aeva's

CEO; upon website issued and the we on Relations will presentation our investors.aeva.com. Ahead Soroush Co-Founder Aeva's today Joining can quarter on uncertainties. representative note as views on any assumptions, These that and call, press that Investor me Sinha, based we as call Saurabh of of this which which today subsequent be and second our Please Salehian, of found refer statements actual are are uncertainties this from be and at Aeva's date. to and our reflect variety we call, to of could making and relied CFO. expectations. views release to a statements only forward-looking risks cause on should and subject will results as expectations statements materially risks and to of our are current today These subject be differ not

refer XX-Q For our SEC, March material discussion of please other with and factors filings XX, could for Form the further affect quarter financial including XXXX. results, risks our that the our a important the to ended

Investor With let call Soroush. replay on company will available be the isolation as in during our addition link. over of In in substitute useful Aeva's The from that, we the measures supplemental measures as measures this under or GAAP considered are call will not today's believe turn of should to call, These which webcast for results. addition, me discuss non-GAAP to we website financial be a performance. and non-GAAP Relations

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the LiDAR of today that a often for the game at believe the system approach, the costly components chip For fiber and targets. our to cost Integration results core of here, the onto optics approach use from prone system Aeva LiDARs removed lasers assembly base any removes manufacturing. yields the the to bring changer which simplified integration processes contracts, our and market to up and be component high-performance are level, much production our In on durability. system, final example, of that focus proprietary fiber cost platform reducing due and and reliability for and of alignment in automated a our highly lower all lowers on durability active we our for silicon the overall to From our complexity process. This core will need cost achieve CFMCW

XX. Slide to Moving

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let's Slide a into Now expansion new industrial solidifies highlights to XX, move that which automation. strategic collaboration Aeva's

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slide XX. to Turning

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same we chip for foundational have software the LiDAR deliver diverse automotive to specific worldwide. use the mix of on customers developed architectures with performance plan SICKs by that we adaptable to Importantly, required requirements

Let's now XXXX. provide for turn where slide I an will XX, key our to update objectives on

that have We of of I and for great the on each would one. first foundation lays more bit a the key to half believe have made we a objectives progress year to share our completed steps, achieve critical XXXX. like in number the

the of with our to customers. late on and beginning year. at began in Aeries consistent deployment plan qualification provided line units First, with QX the We II strategic customers that we on and shipping the time

we as bringing will qualification working well in closely up the be as second manufacturing. on of forward, Moving XXXX, half

converting on additional Second, of the was the one two towards two production, met with collaboration. SICK programs programs

with that, applications. automotive [ph] both and we non[automotive other in as interests engagements, progressing inbound as are Beyond well new receiving multiple

fourth, first Third, are expect drive applications, on our on year, schedule the with preparing SICK on on for momentum accelerating processes also these of platform supply industrial in further industrial and XXXX. the this deployment. on markets. with industrial of solidified we Nikon further Meanwhile, have perception automation in common remain the LiDAR we chip our non-automotive for launching we And development into a QX to product our complete of release track and we first by chain which automation, -collaboration, to commercial precision with expansion

manufacturing discuss the also And continue let closely work me will up towards that, We over the Saurabh, supply to call automotive continue to to efforts and chain scale turn on financials. and who with partners with working our space. certification

development second which and Non-GAAP on driven development milestones and everyone. investment. million quarter our review XX. customers' Soroush, which R&D on financial second you, of the slide loss ongoing in discipline the would $X.X I million was sales. product quarter capital Thank Aeva’s in results, quarter second in $XX.X reflects are product expenses was operating combination the progress afternoon, the for of like by good continued Revenue and our to

which gross $XX expenditures as we million. define cash capital quarter flow, cash was operating Second use, less

shares was result, we of end continue totaled a million second quarter cash, And average $XXX.X in As position, strong weighted lastly, the marketable which a second the securities cash $XXX.X at equivalent the million. to quarter. outstanding maintain and

invest to half remarks. execute And and to XD second continue So we to the to year, the on in plan for our the of Soroush plan commercial call on terms bring to to the LiDAR that, have and financial half XXXX aim year, I to closing of both back continue hand will our objectives. executed with we in the we believe first summarize, the well market. to In of resources product for

our a accomplishments to especially achieving QX team of bringing our the strategic production. proud partners. thank you, our on also II for and towards support. Aeries LiDAR Thank incredibly is all FMCW, customers and technology in and milestone Saurabh. major unique our chip congratulate like Aeva first am forward of I significant units This thank and want ongoing the delivering to of I their to step would stakeholders

we continue commercial ahead, our momentum growing see to Looking technology. for

ahead. Our example is another diverse SICK of with AG collaboration opportunities the and significant

scaling Perception everyone, work As next-generation beyond. in and to towards our to Thanks, today. the of partners Aeries and our we with look solutions, to your Perception and growing up forward we demand time responding automotive working for II enable

line now will up for questions. We open the

question from with [Operator Research. Street you. comes Instructions] Thank Antoine First Chkaiban New

particular, contract photo question. opportunity in expectations our deals ramp opportunities helpful. are very with number initial leaseback. be in versus line color taking timing or Congratulations -and in the your on relative to Any tracking non-photo for businesses Thanks SICK. automotive of ensure muster segment on your Thank see of any And of a of the you’ve each the how - and you. update And non-photo you ahead guys. size outside revenues? would announced Hi, on

for the question. Thanks Yes.

have So first earlier. win of SICK by with excited all, absolutely that we're the yes, announced we we

also board across but in So obviously, growing seeing demand in the auto, for we're non-automotive. a

inbound driven question by is matter fact, really lot your It of it a interest. about a non-automotive, accelerating. As as of is

SICK, we pull to forward with able of beginning As with establishing this solidifying we one by we're collaboration said, the Nikon, the now were and where further for with year also XXXX year that. that at and

which also production. So of targeting we XXXX same start are the

in lock to with Aeries be to encouraged additional on demand Aeries of momentum chip growing So II of the overall, course, lot’s we markets, with II to leverage development really now, highly we're number months. ability next continue the a those also and opportunity. looking and opportunities to in deployment, II of use growing forward the Aeries to Right additional and see our qualify and customers with program able we're

use And FMCW over provide can time on maybe quick it a any I'm chose core of you. details you talking as why bit a flight, follow-up, here? color SICK the on cases, Thank more Great. technology the about

Absolutely. Yeah.

obviously, strategic agreement give you So the standpoint, maybe bit that multiyear have. is SICK of a a SOCL. SOCL from on I'll little actually we

to we're opportunity This As trying a I meaningful XXXX. start in of mentioned, revenue for Aeva. offers production

of customers. XD with range the SICK in And global a which a like of and customers, and the scale already leverage general, LiDAR LiDAR major sales the is the of providing had XD efficiently size segment to $X.X we're So and billion of foremost XX,XXX employees our across for for in at one also large leader, sensors. the logistics, versus about automation SICK of to industries. is a plan this broad force, that accounts They opportunities And XD over as talking a we automation really in And logistic to dealers that rough supplier factory businesses. here already is opportunity. you scale, give idea to a

of they end up past with actually that and us because X at years, instant and to go LiDAR velocity been fact really and with voltage for they provides including which outdoor. we're So other with blooming of have advantages, deciding working measurements, XD II to with have FMCW technologies from looked to applications with on things outdoor Aeries initially And unique not pretty looking effect this have ability the like us number the it. on focused there, critical at go and to out work we're especially applications single much them. with bring ending retroreflector is a And [indiscernible] the

SIXCK further applications. we specifically industrial that just the also now the automotive, similarly solidify but seeing really seen in in is we – FMCW, a advantages So have has believer but are into of

That’s for Thanks super much Great. the helpful. color.

Next question with Arvind are Ramnani Piper Sandler.

progression? I mean, you're have of starting And of my call, question. we approach? on you the industry are revenue? pull as kind Hi. forward progress And continue just see wanted the the a I and - on of about move talk - a Thanks will sort difference to recognization to of deals. approach Is recognization ask, different And some big you there your bit you're like kind or your like forward sort see unique LiDAR. little a should should for broader taking from people talked an should you to recognizing Can with more your differentiated certainly able approach to we impact in some further about of earlier of overall forward - kind where see clients. additional pull have XD to

the Thanks question. for Yes. Sure.

been performance automation consensus to the of able LiDAR a chip in superior versus II. XD first that all, on we've because play mentioned of the So but Nextel Aeries the a integrate that the there will we growing FMCW before, LiDAR, key as is role fact in [ph] due enabling also to really now

the we've right? ability feedback already reduce also in since the the auto, been to the I So well We there II dramatically demonstrate phase as to to with able to of to expect that, with qualification. call, on units first on been quite So we OEMs, and them over as the development Aeries positive. shipping work mentioned the auto work and to as with costs samples, XX%, on started progress enable really has that, continue

an solidification we and also So to new auto continue number SICK example one bring non-abdication the the we So FMCW, for our drive interest scale both to continue manufacturing of for see around outspend, to this the and consensus drive the capitalize on wins, of that expansion over is expect expect we Aeries is to as [ph] with inbound we but recent growing that programs production customers, to and II additional to months. of

they a started this and on at production then Perfect. kind they follow And your that. are of couple more of kind some along, up? challenging be update approach? competitors follow-up to the on of of to back, of Will able a in you it where may far to of Certainly, sort catch done competitors, [indiscernible] sort for years you've just you approach. and to your be what Or too of some journey looking bit think the do sort your Perfect. a catch your little of quick

Yes. good question. a No, that's

[ph] company technology At fact So generally, evident able is we you achieve. with growing And stage really be progress to see make to time, performance else to able visible a that's obviously, have a sample consensus. provide digital and and actually technology it years a that yet. to with the a to of also the the significant the been know, not easy is FMCW, as that in public level past by only So and innovation trivial or we of it anybody aware that right? of that's our not Aeva is technology that get is same having knowledge, actually to maturity number B I'm able

So years of labor fruit of development. is that the is multiple by itself

of done. to the And is FMCW, And it takes. IP. go the different face. those to would has of some actually developed are have initially what we technologies certain that in validating address that cannot them developing is there bypass or on real-world the have with more it road scenarios core time do of you that components terms So the just things that doing tries you very been is And to the industry from and able in really customers anybody setting. who conventional second challenges around of the way and Aeva to technology that key all

IP have largest FMCW, we and basis. to a of regular with to ongoing relevant additional portfolio one patents that, the created of add on continue is on so we And

are obviously, said, now that publicly about are towards with folks move started talked FMCW, going the sensors, LiDAR there validation now XD and being going players technology. this we but some also for of including a that vision-based have the as largest that see important, So that to to

we sure will going So focus. with on us, focus making we that's planet that make FMCW be for our to and our on perception continue our approach, technology best the the

hope we -- So follow soon. and that others

Really you much. Thank very helpful.

with Next question, Richard Craig-Hallum. Shannon

LiDAR didn't getting a with hear your Well, exclusive Appreciate question. work of might be to able whether you're seems here. about areas use then it. Thanks to able of kind kind comments or in me partnership? I that is SICK players for potentially in Maybe that to you and that with arrangement other an guys. the the any relationship? of they're great, Nikon technology whether that in partnership. was follow-up ancillary products this on The an relevant beyond developing future And to queue question something

the question, for Thanks Yes. Richard.

of say. this first commercial go not into all, collaboration that we So we a would that us enable industrial have But I'm of going automation. strong details really expand to first the to believe is further

In the and of X-plus to the to space so the do again, XD looking terms XX many had to have been converge important. years application, that has on decided decided players XX to out from to portfolio of unable be at XD of SICK expand that, course, and in that’s the to

in precision differences measurement. already metrology for the in different collaboration, of the terms sense Nikon is have that in an Nikon, think industry it's obviously, between I we the

leverage inspection, sensing. module about area manufacturing including applications importantly, and go on is application now set different our for a we is whereas able for same reliable, inspection number to enable to very the and and requirements. performance be qualified a foundation SICK these to level achieve the honor perception software use actual outdoor don't micron as many So quality levels And of starting this other been different really includes applications. achieve the with with we to scale to LiDAR scanning But our assembly as capabilities, has SICK very in which manufacturing technology And the on make with able of to line, longer-range partnerships automotive we and optimizations application, which the focused real other have we're ability ability that. crucial there, of partner for to chip all all automotive many, channel really and and our the algorithms to and companies Nikons of to and with well applications, to smaller us different a address critical ability a be do to have precision as

answer So that's you question. an the gives

it's That's going year this than kind year. very be what great, wanted the toward is, said with helpful,. that what My some a language customer you would to important can time. more end thought really you follow-up the you Are I'm at do be means? process toward by we production. that named potentially by give release don't do the clarification, here a this of point ago I know you've question come of exactly of to moving since able used programs that press public even think I about or to in please. -- production wondering see if could a you more know I milestone with that provide Maybe not means.

Yes, absolutely. Sure.

So year to gross -- targeted -- production. for represents of we first one that I this our this towards production clarify want terms with of two in all, programs obviously, of target have

progress a opportunity with really production And I all is earlier starting targeted the of moment. at focus toward question, meaningful them make Aeries As towards now general, obviously, both in working this that phase customers, as really on as an that we're working and XXXX, said, continuing existing with man to to I mentioned, that. we're so good in engagements new for the

atoms their the of use to wins program to already unlock goal we're -- customers, number number a Aeries our next to to course, And continue and that. to And have going of is, to we continue continue to of if months. provided do even in this additional that. We operate II

again, But that's we're focused. where talked So the about. really that types from we of [indiscernible]

Thanks.

teleconference. today's concludes This

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