Aeva (AEVA) 10 May 232023 Q1 Earnings call transcript

Good day, Ladies and gentlemen, and welcome. My name is Judith and I'll be your conference facilitator. I'd like to welcome everyone to Aeva Technologies' First Quarter of 2023 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

now call Relations. of ahead. the to Andrew, to go I'd turn Director over like Andrew Fung, please Investor

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

our refer on be press Co-Founder CEO, Relations Aeva's which release Investor Ahead this and and Soroush our found issued will CFO. and call, Aeva's presentation, call we investors.aeva.com. are to Sinha, first at Joining can the of Salehian, on today today and Saurabh quarter website we XXXX

of Please variety date. note to reflect making results not are subject to current risks which statements of to any that expectations. as on we subsequent statements will could as and be differ views subject views our this expectations forward-looking relied be call, today, upon cause a These uncertainties risks are representative and These of that of from actual on statements, materially uncertainties. only and based should as our assumptions,

discussion further risk and results, factors could our of material a XX-K. including XX-Q most For Form important recent filings financial refer to our Form affect please the and that SEC, our other with the

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

Soroush. turn that, let me to with over And call the

I the LiDAR-on-Chip share progress X. like this we and to are our team afternoon quarter, accomplishments the good I'm happy Aeva's which areas. number unique significant highlight on would and XD QX, Andrew, technology Aeva you, summarized for was made a notable advancing Slide focused on momentum In key of commercial in to that Thank everyone.

well. is with the going OEM Top-XX progress First,

is we long-range share enabling include our case Aeva's a resolution, unattainable Aeva of discussion OEM. to deepen XD in was joint recently also previously the feedback received instant LiDAR by software that that use are combination high key velocity. to perception unique excited and development. leveraging have We that relationship to safety am I

encouraging And Flight other to opportunities quite been precision in as with positive. LiDAR platform Second, for a well seeing joint a includes vehicle from looking we third, development progress our as for a are XD growing has This reception perception with passenger of Time automotive. advancing of measurement OEM, switch RFQs. number to distance engagement

with platform to in engaged leaders share Aeva's sensing multiple industrial use to perception more are this We and later hope year.

would developments. color Starting to X. provide more business recent like on now Slide on I

start mentioned their scalability. of that strong we standards are the perception Top-XX As off high earlier, with a meets providing solution a on and safety performance, OEM to

simultaneously Aeva integrating use been feedback vehicles that we development have OEM safety important for offers customer. of first XD was that key LiDAR resolution, and capability. we milestones unique including highway ToF high built driving previously from unachievable for XD enabled a that The and This FMCW with velocity possible LiDAR successfully long-range, achieved have case already the instant because Aeva's this technology was

and direct at driving an perception software of also software us help and speeds accelerate use This automated of in as the I'm the highway further and software, time with excited velocity stack ways looking share higher perception such object and where cases require that are particularly sensing detected the our we XD Aeva's reaction importance our use LiDAR is confidence the perception around in highlights in autonomous leveraging OEM gives the system. classified far road reliably greater fidelity. capability critical Aeva's developments. on with capabilities to important to discussion away. automation, This Together faster measurements to a around

move Let's X. to Slide now

As our engagements we color opportunities. and our to wanted making progress provide on shared, more we have ongoing have significant on been

for focus market. companies Our next-generation deployment we to programs interest perception from on automotive looking leading remains and bring strong large-scale to are and industrial seeing

This with the selected are measurement our increasingly in are now or some and LiDAR passenger perception our OEMs. for time-of-flight even we FMCW RFI the stage pilot have approach. deployments of automation, advantages progressing deploy opportunities in to companies of to for are generation next XD in vehicle to Many precision the the from experience RFQ for interested with of global Aeva in with currently discussions initial includes past multiple LiDAR industrial due And the vehicle who top and platform commercial distance our applications.

we not win While potential. meaningful each program offers revenue may every opportunity,

next the target vehicle have over months. six example, steady working opportunities award over expect between As year state units a programs the passenger decisions XXXX, we we XXXX XX on thousand and hundred are will These volumes production target approximately to program per at an and starter production.

This for the add assembly Fabrinet X, will new our perception and automation automotive support to LiDAR-on-chip both mine, Turning with interest to with to following similarly in manufacturing working module growing bring-up Slide ability mass capacity our industrial are expand manufacturing. expansion successful we our production. now final of the ramp platform to further for the

path further percent This that on will will the As will automate module costs production. part of steps. LiDAR-on-chip down we enable bring of the toward higher this, throughput assembly hundred

We expect line bring-up to by new complete year-end. of the

Saurabh, With more the will detail. over that, to me call financials let discuss in the who turn

you, Thank afternoon everyone. and Soroush, good

partners deliveries to new XX, LiDAR Aeries Slide results. Revenue to QX our driven capabilities. to turn financial existing Let's for XXXX was for unique quarter XD as customers discuss our well first by the million, as to II $X.X

as to capital reflecting was of and in we timing development plan. loss other million, consistent define our cash and operating we which cash $XX.X operating research flow strategically operating work was expenses capital. product $XX.X invest Non-GAAP less continue expenditure as initiatives million, use, working with and Gross

in shares equivalence, The marketable cash QX. average in $XXX.X million cash, securities. million we ended and weighted such, As $XXX.X was QX with outstanding

is our solid to support a up, position financial sum momentum. Aeva in To commercial it

take We key disciplined a are we objectives on to making strategic on continue progress approach XXXX plan. will and out good for our to and the laid execute we

I will remarks. Soroush to now back the for closing call turn

In by existing progress summary, I Aeva both on and feedback XX from LiDAR. prospective and the am excited customers

with program is FMCW leaders the we markets of technology differentiated increasingly our and on Our more resonating in converting to remains are priority commercial pursuing traction our wins.

our making that is mission markets. objectives well-positioned as execute our want laser-focused bring to I Aeva sheet ongoing continue to well stakeholders. LiDAR of acknowledge with is the as to of to and is our on unique of possible, especially this the of and on dedication support all the our our Aeva team delivering XX on all balance technology to

the we now that, With open will for questions. line-up

Thank [Operator Instructions]. you, sir.

of Rusch Oppenheimer. Our first comes question from Colin

guys appreciate time Thanks, and today. so you the taking much

going process now Thailand capacity Fabrinet it's and these sampling with the the how the your the is might automation, customer change With think balance the can and relationships? impact you with what when of of year, some right about over a talk bit to be little and

automate of are chip. to I steps Colin. as the further going the working Yes, automation to working Look, LiDAR to to because closely we up inside assembly mentioned is answer This Fabrinet Happy question. on XXX% now important, course, build the we line. obviously with be our the of are

that's additional us simplify scale series line This going is talked have system RFI all, ability we really production at the the to the about really has couple we also increasingly provide day, seeing as customers. different before. can OEM, assembly are we with our allows to This to have, both of capacity. advancements build to now right? Top-XX well demand us support And important we it's the help the that we as this the ramp. about as as of because end further on multiple we process that automotive, a are effects, First it needed responding the this support the have so RFQ to the us And talked of side with the engagement to on gives industrial from up

increase will we throughput. time This our also

production. achieving cost. quantity further also we can will satisfy targets And confidence keep So, the say demand us towards our us really gives in ability what we I track our as go is, to needs towards for on sufficiently our

just you have development. take pieces ecosystem going off guys. that? need you after line develop of each the a that super for gears different Can Thanks that of rest the the talk are little about I'll helpful. All then got software level the in to software shifting it you of and and out to end terms That's markets, the right. around of activity the bit different the And building

strengthen well ADAS applications, of value. software. And perception AV to LiDAR just the the gets first mentioned Look, as some are as also into seeing And Top-XX leverage help the industrial increasingly side, all, we that, software provides OEM, of or added are start our our Yes. call, the it excited and example, on as significant the see further deeper we're for to perception use looking Top-XX the of we our talking that's looking flywheel OEMs we relationship are our creating why start to -- capabilities. for them and the to to accelerate they're our the automotive I OEMs not the such engagement Stack to as value embedded we OEMs Stack. it AV with, see the XD but as there, software effect for Stack on this Sure. And and

top is for some obviously, capabilities Building to specific we them added us, tune and jointly and have it. help the data the that to this what hardware dimension products to also is have, those is going software applications. of to And of consists use the with on this hearing tuned are unique we able and important, And the their because system of is that's OEM the compared us of that differentiate really together for competition. a velocity, really that effectively their we their working

hopefully to really are these we the software over and start of that we're I engage on level seeing So, deeper types time, to think engagements more perception can going side. with a that of continue encouraged we by

Moore Morgan The from comes question Joseph next of Stanley.

about the there the had industrial still start going Is production a going deck slide production, of if to that Great. there's you could case? XXXX. into mention Thank XXXX. you. thought in I stuff XXXX talk Wonder some you through when was

automotive talked we've our on track on and customers we're as the Look, with industrial side. about,

side advancing new opportunities, stages, industrial talked multiple we side We we we automotive in are the especially RFQ. from on opportunities XXXX and on addition continue some to further of customers engaging on that and RFI What are today, are are really about that that be automotive. the XXXX including opportunities to call the to those targeting

on opportunities. provide obviously we engagements are with we that around some new track have these color and So, the more

QX. in the a of balance, million terms quarters the guide sheet, but obviously I eight burn have what revenue, give before to balance what to you the in over healthy guess say so of kind of then ramp you rate to or pretty happens you can And cash us next, balance? start cash a really the just $XX

Hey Joe, for Saurabh. that you. is I can answer this

as of cash, million So, of we we have the prepared and marketable a as gives strong a in our us strength $XXX sheet, lot I plan. balance execute That remarks, on mentioned securities.

at OpEx only In provide that FY cash and mentioned non-GAAP of was around to levels, XXXX that. our call the last expect terms on we guidance for track And And million. burn the a we indicator XXXX $XXX non-GAAP year. we similar the OpEx are good to what OpEx, which is for we

New of question next Ferragu The Pierre Street Research. from comes

question. my your Hi, for quick burn. taking cash guys. Thanks follow-up for A outlook on

almost of rate starting you XXX like start the if you production, like Because s production burn should additional for additional like in actually an that additional what consumption? burn is the any ramping contribution? means low to a expect on ramping like cash instant, top around there XXX slowly your when CapEx, like burn, element we bags? cash contribution -- an So, could notebooks additional immediate have cash drive OpEx, of yield bad cash Or

is Hey, Pierre. This true. think latter your Yes, is I Saurabh.

will there needs OpEx to are be the certain as that leveraging CMs. -- -- we that well will CapEx and are because the already activities completed expect R&D be steady given and CapEx light be as the We

Okay. That Thanks that. makes sense. for

Thank comes question you. from MKM. Roth The Desilva Suji of next

a that's on a just want partnerships. that at clarify have the the be so a good. feature different so low-lying how I'm to Hi, It to a it you Soroush. I be should was great. Hi, the just in you road competitors XD I'm object really feels LiDAR just you they like if just identifying it. Question deeper OEM. Saurabh nuance And kind It of sounds trying to can of companies’ progress on key can like what here. lot distance, couldn't Top-XX get handle? that this wondering differentiate have announced that, relationship. lidar one guys safety understand, sounds but the

Suji. Sure,

your first. answer one Let me second

working this detect obviously a So And road, cases have into some OEM quite and but they including the of with specifics Obviously, so, we I right? on to time, can't actually classify multiple driving objects those case, have on reliably the the use highway especially critical safety really from been go safety distance. for applications long use

So, what sets deliver us to dimension objects us two, sets apart, added And consistently right? high-resolution apart across to, detect ranges. that ability simultaneously of our and Our us long really is velocity one, help ranges.

points let's five say at on let's mentioned object. long get I've distances XD with, only few points, a LiDAR an a you as when example, points, few you say, So, before, have for

you you are distances. exactly object not the looking at When and to really are distance, have – that what you sure at dimension far only have of look those you you

velocity, can So, same keep highway looking. velocity measurement you added But, is to start And then overtime all of points the five those have you contribution. at speeds, aspect. is now have a critical as do time critical a that

you XX have same the all velocity, all per at moving hour. you they're if So, towards miles

better You road. on that that's a vehicle flying like object a or that the on something know

to something them safety the that's in this address by I provided And So a OEM case. near contributed low is of to think velocity the added significant this help mission confidence unique it I way, use us. for the achieve think that also

for So And is LiDAR deepen are use think clear your the to other worked now point in actually OEM XD also, I safety provider the the this first has past this from to just to before, right? feedback OEM And enable really be us. the with relationship, that us cases, from encouraging before. continue can that's and

the At and further are our of perception around capabilities we perception of your use to in point, our working relationship, there. software right, there our strengthen the software to add collaborate

course, able in can So able as of we to I what more, that's say do will share we And to that we the now. for -- future. were have

just vehicle up one a mean the or elatively trivial specific having easily my get may mentioned be I can LiDAR have test And this follow-up. that two you a in point. a mind, quick of did? quickly Aeva's about product because Just way is something vehicle running vendor equally and test and

OEM I scale made significant progress Yeah. our ability past around attention that's Look, here have provide -- product works over focus, and I to OEMs a the the put that ability has think years the quickly. our OEMs contributor we and maturity we at couple think think even enabling direct been where and for out in a box support to two months. directly our And the to our way move and of the to those, I

development. to And kind this to their is We're model, our them help looking of right? accelerate

also have sensors and road. implementing on the working they with that obviously with experience stack So, hardware

looking this rest. as them to to continue up the they been build we've support working pretty forward and So, closely supporting

next The Gerra of Baird. from Tristan question comes

Hi, afternoon. good

OEM provided for follow-up signed which on you've a what many production Just if for in actual to the how update the deals with a any, the that And question engagements of for with the thresholds? ramp? an pending timing are engagement those customer engagements, thresholds volume ramp are existing you volume

so, happy that. answer Yeah, Tristan, to

for programs, each programs we're and higher about multiple level market talking -- automation. The and passenger through So there's vehicle obviously, application. on includes these specific commercial three advancing programs we're end that our across are

talked You timing. about and scale

that car scale we there side, the on hundred per a be meaningful as the on see thousand over of and to these mentioned volumes target are passenger example, I see as the some we for vehicles year. programs call, So,

really So, these decisions also timeframes. this where see a months. to the the XX production is from standpoint what months and XX something is to timing that in is of next timing is around see we timeframes That's six important and XX happening we

with been flight as selected of I time these before, especially continued in the had really for next now So state deployment, engage and to initial these on. end they we've previously have that enable a with or working generation OEMs but some their And because potential time of of number us five are to as a maybe that's scalable increase CFMCW engagements, experience what of capability. solution mentioned

encouraged we're So, our activities to those by that. continue We're going folks. with

next of question Shannon Hallum. The comes from Richard Craig

for my thanks Well, guys question. taking

deck SOP starting are these slide that SOP at or in specifically, going advancing about first talking than on my in auto based your looking targeting XXXX your to would you're later that? programs about one's talking I the they automotive of XXXX in seven in think to opportunities any the XXXX here, programs industrial, be be

Yeah, absolutely. they Richard, ‘XX timeframe same the Yeah, to from ‘XX fit starting sum timeframe. auto in the programs are auto

count Okay. space automotive specifically? that And any way in of the the you'd kind number in

I programs, segments, I can are potential with they scale again, provide commercial, but that's numbers, right? once I passenger, exact It's see as not one different We -- And programs meaningful automotive, obvious. industrial. and cross those. production multiple reach offering mentioned, that so it's

ways to way you not could reasons are do Okay. you at any for engaged automotive into of that are what kind here. Fair can you them? the that question quick kind your landscape that? one is having the taking And enough. not or do picture with. you Is certain And OEMs just my months? with the out And here think of of -- What sufficient of maturity with lever it something looking levels there, the follow-up big way are

Yes. a question. good Actually, it's

it the on I'm currently have engagement stages. we RFI actually across now not any with advancing on. we had far, now are that to engagements not have are that aware think all RPQ of that tense the we so I we from

encouraging. really that's So

obviously, if the if our level I on which in supply building of have our want manufacturing, building look chain I up the Dew you we product, around look bringing product can been and it up time had to road. strengthening on the at around really been to like team the in maturization and that the past the way think, deployed house, the maturity, -- capabilities you towards, the at think working also Aeva

also, the even of samples of has that working time of from time OEMs is really happened the are So, the in working flight the folks what has our whole technology. in filling selected a scale. that focuses today the with the dabbled us production and And some flight at with fact around reason potential that towards that and that lot that increasingly sometimes have here to of qualify initially work not product release sea looking obviously, terms as at with believe they quite sufficient they gaps in of those FMCW is it the and or

we be what that's encouraged So continue to by.

taking questions for Thanks guys. Fair Okay. enough. my

final you. Kevin Thank The Capital. from question of comes Garrigan WestPark

ask letting question. Thanks guys. Hey, for a me

So, the companies at beginning expecting months first three the decisions the to LiDAR in automotive six of OEM were year, months. award some

on decisions in might award kind environment to you months. are we a of expectations or call any in where Kind a kind your role the XX like a of you us kind little seems they now with be little expecting focus said, macro bit? with some of of I it's playing shifting of their Is of you decisions, inline OEM think guys give and color timeline kind what's there bit on months had going on the but there? are this last delay can decisions the next OEM a months six of number

Yes.

I think answer that. Kevin, can I

us I expecting. is know, are we the for line timeline think I what in So, with

see timing as Now we we clarity stages five more onwards. advancing the have are from on We more the clarity of some our OEMs, decisions. that the

and the later. will happen Some is I is the some timing going happen right? control of we do OEM the Obviously, think decisions, to earlier not making

those on may kind that's what OEM how be there buffer on that, some based But decisions. in based says on knowing the our the of experience, we expectations estimate and

ADAS. I think sensors and activity the actually generally we deploying though around products increasing are in for seeing OEMs

what it's think, time they we But is I as going are really some the taking feeling think folks I -- for define yes, critical is of next order folks are do. to need these to months yes, that to, to their some I increasingly of these months them they to be make to for for hit going XX timelines, some mentioned, decisions. to six in

looking doing capabilities. important And a something relevant and to maybe their contributing And deploy to of I also that's the on vehicles. And that's we factor with in terms on that's engage also aims topic, obviously really that other, think all that. LiDAR the the planning are

now Ladies the gentlemen, of this for have you we you the session, and lines. Thank Thank today's and question and you. And may attending. conference. concludes end reached your also answer disconnect