AEye (LIDR) 15 Mar 232022 Q4 Earnings call transcript

Thank you for standing by, and welcome to the AEye' Q4 2022 and Full Year 2022 Earnings Results Conference Call. [Operator Instructions] As a reminder, today's call is being recorded.

I would now like to turn the conference over to your host, Mr. Stephen Lambright, Chief Managing Officer. Please go ahead.

you earnings AEye's call. thank year quarter and XXXX end afternoon, for fourth joining and Good With Executive Brown, Officer; today and me are Bob Chief Matt Financial Fisch, Chief Officer. quarter our for we financial today, year XXXX. announced the Earlier fourth and full results release of on our be copy investors.aeye.ai. A can at found press our website

future Before to participants the results Securities today’s Laws operating Regulations would of discussion future defined may remind I we as the to include States in reference with United events, begin, like performance. financial that forward-looking statements, or and

statements based regarding are that are and and These Forward-looking are expectations uncertainties on and circumstances statements our other difficult our assumptions or forward-looking subject current risks, in industry to impossible inherent business, to the changes conditions. predict.

those caution any statements. these from Our contemplated forward-looking by you against on reliance actual We results of undue these placing statements. forward-looking differ therefore may materially

the as future find our do or information with our is time filed more of obligation from a intend XXXX, information can information, discussed Exchange XX, You of including uncertainties and not March and be about may as in law. factors report. and All reports recent period Securities Commission, time other to today risks, update by the we whether more new any and to undertake except forward-looking as otherwise, required statements, result no developments in

of financial release. certain in GAAP release purposes for our measures. directly These most to in financial measures to substitute presented measures information is reconciliation presented refer with to references non-GAAP comparable measures non-GAAP as supplemental in should only, non-GAAP directly and A In accordance to addition, not the include information reconciliations discussion should today's you are measures GAAP for be earnings of financial the will our GAAP. and a our measures press the considered most comparable available

to call Matt. me let over pass the Now

CEO. XXXX Fisch, call. you, Thank quarter I'm and and end fourth AEye's welcome our I on CFO, today the Good our call am Brown. year earnings by afternoon, Steve. joined Matt to Bob

introducing in on who AEye's sharing year, to on well insights some will by few fourth I'll from learned initial comments as begin call some first what for month quarter call the go we XXXX hand I've I call into the here. where myself, our Then then open review performance full financial the will job thoughts and and we the for as on Bob, XXXX outlook. questions. fiscal will a my

and bit you I'm Let me myself thrilled about by start telling why a be here. to

with I and supported have products of to the I the premier for my sensing have roles AEye Intel. a about technology am evolution product and the Over I the transformational provider. delivered XX leadership software opportunity that become and my I large extensive prior systems, this, as years, will rapid Harman leverage To automotive did do during past technology experience Gentherm, industries. excited at organizations, scaling

and created I market at to propositions a Under shift software. with to we that and new recently technologies. developer systems management products value led align the billion electrification the team innovative delivered of thermal leadership, the Gentherm, $X.X my industry automotive with technology

and power and software-definable our and and center systems infrastructure drive I safety the assistance to advanced and monetize in productize team driver is lidar efficiency, AEye, At industrial smart portfolio other lead AEye's will also of our this markets. product transformation. enhance, to greater of next productivity at platform generation the

that to create that career, have opportunities an the I've consistently didn't and world Throughout to This vision my pursued My is the more track and exist. My be a bringing has difference, revolutionary AEye's with comes presented to technologies a potential impact previously I have than thrive satisfaction to change greatest capacity technology passion. and to the shows the making record when success of market. and from succeed transformative. opportunities challenge

I I success. it the has all commercial joined AEye for because believe ingredients

team technology, and commercial unique business We have stellar pipeline, a business a healthy compelling partners model, exceptional like and a industry-leading Continental.

the Continental has stack automotive trucking a and proven assistance to advanced systems markets. to deliver ability full driver

over of Over across million world. lines, product they dozens delivered integrated the sensors the making solution leading them the XXX in of have years, providers ADAS one

portfolio. systems. advanced giving confidence is the regarding product receive market selected driver we me, assistance continue into fit powerful OEM have that that customers feedback B of the generation industry-leading For the most AEye's for ADAS to Continental's integration production market their intent productization positive me validation technology Continental great from and sample, we right for next product automotive And

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time underway, We this consideration. but takes and are careful well

to you executive accountable. that earnings me to my call you and in time come for with a to team hold will is May plan commitment which we the company line our My you the back be will and to able

for excited most our achievable promising that on a set opportunities align objectives its platform and of to XSight success define will the shareholders. will and AEye innovative We with focus I'm phase sharing talent, here. be vision technology look and May. the is at to this I exceptional next well our our for earnings forward call AEye AEye evolution and with of positioned

the last Brown and performance Bob? year. it turn financial last point, quarter over details this Bob At I review to to our of will

everyone. Welcome, Matt. Thanks,

the $X.X fourth the in up quarter third XX% quarter. Revenue million, from was

resources the our services on focus of We the fourth quarter from areas spending automotive the the million, stronger prior our $X.X due up development in Revenue contract our the year was year. continue revenue contract-specific in year Our full to progress carefully was we managed for impactful most business. business. XX% as our to throughout

in an million prior quarter, the quarter. fourth not that the fourth $XX item operating increase the in GAAP quarter from X.X% third due of were repeat the quarter a favorable to did expenses in

were Our from up third $XX in million quarter. non-GAAP expenses the fourth the in quarter, $XX.X million operating

Net EPS quarter. to quarter $X.XX, loss the was fourth Net to in million million non-GAAP loss flat a in on which slightly fourth loss a EPS a was $X.XX and a third in was third up the basis, net of was was basis in non-GAAP the flat relative prior $XX.X the the quarter, loss on loss GAAP quarter. quarter. which of per was non-GAAP GAAP the million from $XX.X share relative $XX.X quarter a of in fourth EPS

the beginning Non-GAAP expectations was to $XXX million, year for XXXX. $XX.X represented which net substantial at the improvement loss full non-GAAP for relative million of of net a loss a our initial

Net that strategy areas for fourth not The primarily quarter. quarter-over-quarter support was used improvement did manage in prepaid cash to cash that carefully, the in development. in continuing our by on especially quarter. cash capital the was which activities operating used million, we're very from insurance improved third our quarter We're third clearly fourth and this working the outlays quarter product annual critical $XX.X driven cash $XX.X for for the in recur in focusing and million costs our and environment,

on and believe climate year base sheet. as economic equivalents us to manufacturers the head at of very We in model expected like ended reflecting We light challenging and $XX.X the securities quarter unique cash, marketable Sanmina. with a support expenditures with our partnerships modest Continental $XXX,XXX, cash a and capital were business our XXXX. million capital into with in solid provides balance be what's this our Our our financial we to

questions in many over of our are which days about bank, cash account unaffected larger Valley exposure SVB. Bank, to cash, and marketable equivalents SVB's our vast or with a majority held was by received last We've issues. Silicon several the securities The much our

SVB While access we we as Monday SVB full also morning. our customer, regained of accounts were an to

to of funds. Turning external sources our

may monthly we recall that provided issued than million paid You required $XX have rather the cash the far, note which installments September, a under us convertible note in proceeds. we shares. of Thus in with

terms. to another conditions note right amount to the XXXX the same to same convertible the have the issue in and on investor same We subject in certain

of source not any facility additional issue have We equity quarter. also fourth line as the continue facility to that in access liquidity. did an We credit under shares of our to

address me outlook. near-term let our Now

We a maintaining are in the view cautious quarter. first on the business

first to in for quarter of $XXX,XXX. the be the expect to revenue range $XXX,XXX We

manufacturing have planned partner environment. of We and built temporarily second our our the QX industrial of in product in slowed XSight production production the as complete of the to the the production product of validation transfer complete we phase

in several expected are While proof-of-concept be market. volumes we in particularly the term, are with deployments the key near modest continuing of our ITS lidar to customers,

been managing have noted response the uncertain we spending to environment earlier, we In carefully. our

from However, XX% the projects. to we be quarter primarily our first development up XX% certain fourth based expenses quarter the on approximately expect operating timing of to

expect our of We be quarter. to a approximately $X.XX in EPS the non-GAAP loss first

me Continental's getting adoption remains impacts OEM Let while challenges for on markets backdrop automotive across through supply navigate very the secular production in near XX we well The encouraging. recession expect the a to positioned to saying we be the the this feedback customers by And and term, chain of continues lidar feel from to that B-sample compelling. we're industrial conclude and ongoing potential automotive period. are and

the line open With that, we'll Operator? for questions.

validation in QX, testing and as is production, that and related product. slowing we're doing on difficulty] said, this [technical to we really

So production bit on we've off here in held a QX.

So QX that's in you're seeing what impact. the

as to going that. here minor be QX volumes we very in it's through So work

good the very hardware is So shape. in

on So the an the we've software. but we performing been from field update feedback in those units getting good hardware the to how are field, are doing

formal out. to a want we've we start So into further revision got on as rock-solid before we we do roll that, of production. that that, a significant it software pretty And we've result got sure getting a want to make testing

So the give year. not full to for guidance we're going

when expect QX really again point, of reasons. Suji. just to production we we So is going light have we're be here But QX guiding QX more those there. do because to at in But to get this

don't and software how if on comment you the around to want that And doing know Matt, we're further production. I to the relates what side

Bob. Thanks, Yes.

a bit give color to to Just of little that.

between we're a operation the automotive One of requirement that and markets to does through required learning as the in this it exist we're form of of and some that an such XX/X that strong make manufacturing that's system differences going space. being not industrial whereas clear, in industrial just things automotive the the is very lidar in there requirements example are transition

redesign an having the that software doing because programmability product to automotive finding into markets. of that of is that's of other we're -- issues we're of is without And what these here are that address outside these our the news of able to essentially. this So platform, foundation the good transition and learnings example the as we're we're having

then Okay. maybe be question And Great. here. the could visibility on my next

You partner and of and the the with next pipeline, that there. Continental number into talked about the engagements maybe the weave steps

one. Yes, that I'll take

time line six insight good several the at get a in some sight clear point this we signals into based the that, feel of of clear going. for at automotive the years some been and before So I we're have those that Look, point have I've end on decisions of OEM And very are in on deals of these to business this confident for subset this into engagements. automotive year, sure. how very very going

and customers market, but think it's your since here. as is can from market coming perspective, I'd about product Matt. in Maybe for your you're talk gate crowded the lidar lidar out a you the to thoughts you've to you hearing last and compete, hear question from the Matt, you Great. love what come technology do the in, AEye of differentiation resonate going what Okay.

Absolutely.

validation design parts, testing clear is that's we key differentiation the foremost, minimizes hurdle going have autonomous actual is an distance road, automotive what advantage this objects, really first and I further into that's for And been the to a to detection be of the and mechanically really speaking, going a That's essential This as and piece and get key industry. higher of think the moving number distance testing driving. especially levels size also the us. reliability required we long be is design challenge for I've of of a really of really of which -- by best-in-class and impressed the of piece down everyone. product,

three is in you this our or we're scan as design, drove really the that to field. solid about having then say, the able me and at range can design, the patterns a and my would which for to company. that And Those In allows are earlier join close state deal choice us top with point. example, to it to of to stood get wide issues I being learnings change of the this out as flexibility is to the programmability

I think it's fantastic.

Matt. color, guys. Thanks. the Appreciate Thanks

Thanks, Suji.

Thank you. One moment, please.

Partners. comes line question from Osha of Joseph next the Our of Guggenheim

Your line is open.

Hello, me? hear can you

We can. Joe. Hi,

luck, go Hi, the blue, next course. venture of of with best Bob, and

Thank you, Joe.

million So, in money, burned of year about XXXX million. in a -- you cash, about lot which $XX finished the $XX and is you

much together. the like in need understanding, before money last begins So of out been plan feel run it's you the is business runway business operate that to How guys you you're going to if you Because year, the for running still really itself. course, XXXX. the support to coming do have like of

cash? for of about wondering just the I'm So give what how us sort thinking going to manage remaining signposts you you're company's can initial

question, the for Thanks absolutely. Yes, Joe.

$XX we said, you XX/XX. as yes, at million in cash So had

a today, sheet confident feel staying of we're year's today. we least worth the where from from we've cash at on got So balance

in more So that We perspective. raise future. the capital shape to good do reasonably in from intend we're

XX-K that is mentioned when So published you'll see in we that that shortly. our that here

But the as you know, balance, some cash flexibility timing. on do have we given

some do there's something, intend some to raise urgency although not So point capital to here. an at do we

this the we'll We're than further about going at not guide to future. that see So in that more moment.

what going company Given how Matt's I back analysis some the for days I Matt implies want to a and think his give forward take chance the come I about chair here. think May for thoughts only the in that cash. then XX we'll strategic in And to been with further we're finish to here,

into And just add I've the thing customer especially engagements. one to digging I'll been that.

I get my opportunity more we signals Over a from there's definitely days, That's earlier, the think key at and end. last focused. looking and XX for focus initiative I can really those that mentioned

Thank much. you very Okay.

please. you. Thank One moment

the line Davidson. comes Tom Our next of from Diffely D.A. question of

Your line is open.

Hi, can me? you hear

Yes.

welcome, on on of Davidson of your best questions. Tom next D.A. us with luck with behalf Diffely. Matt, Linda letting progress, ask is thank And This for and Congratulations your you Bob. steps, and

next question, chain on supply my So how if you could like year? chain bookings swift given last some add if XSight challenges expected remember on us then moment those growth you I was any supply throughout And provide if the could challenges. you give there some order and I update And the [indiscernible] to first the then at color wondering the round look correctly, trajectory longer.

Thank bet. you, Yes, you Linda.

those So the problems chain supply terms of some still are of in challenges, there.

still long parts. there classify key that So are parts some would we as of lead time types

some So place. to get are are also parts PPV normally where still there the longer where it's still supply if above challenges them not priced challenges were taking priced chain in see would those. There you

getting I'd better. say it's

I So those say we are still seeing would issues some but are lingering. improvement,

in this not production terms at it's much us So hurting of too point. the

As and key we this the testing is there doing said, for the QX, then just revision validation. issue and software

this of So year. will I limiter for in a don't terms think big that be production

prepared we will [technical spend this customers, of bit with closely and year. focusing focus as to working quite of remarks, said at time are a lot there are We difficulty] that a we're around area so we going in be the

know So further Matt, I far? the and from if you what terms to you've engagements in want don't of visibility seen customer so add

that's done, All those software we're right right. good things the it's critical path. and getting Bob. looking the it's really updates summary, think at a now, as No, And I on

last it? engagement are quarter, you And the any had wondering with Great. you you that? I sitting you're the successes seen at color. in looking appreciate And there? then was where I How tracking. moment, more at some mentioned Have

disclosing engagements we we have earlier. did of until release October agree But press think I in Right. the to you're partner the OEM identity reasons, And out alluded to, platform strategic for general specifically date. delay later last trucking a a referring for announcement, I in year. had the with did their and

October. came an So release can you that that press have refer out today, we don't update in that on to but

Sounds good. And then question. my last

this have So rate it, any the XQ? for transitions beyond of XQ, in year manufacturing could what missed provide like the run besides the for I impact may looks you revenue but context

opportunity you to got we're slow we've easy guidance. think We It's some Yes. year. won't right? start But starting, the this growth year see we terms in feel growth a an there's generate be where as the modest the of from modest That to for year. like this opportunity

So that's going the we're towards what to top on be working line.

it. Got Thank you. it. I appreciate

Thank you. One moment, please.

Tower comes Research. Our from next question Water of John of line Roy the

is line Your open.

echo. okay? Hi, I'm me an hearing can hear you

hear No John. can okay, our we echo end. Yes, on you,

Great.

us as wonder give are more related as there? going So play to customers? Matt, to And you're in a little how make And be could that experience new your the in color a corollary you might Are give out there how the going out. your forefront, you to thinking signals to what really can automotive that that, to your you on maybe I'm role, with also the I rain. from engage industry, seeing your background, and you is to curious, trying it if

a to the to that a game what in, problems understand key the of weighing that it's priority friction for team set part translating objectives and bringing and Why absolutely. of lot that right Getting what a Yes, Conti, second take customers to go-to-market this we're now That's the -- that with make of first given for or into our solve firsthand really plan saying, especially partnership especially out part those and the arrangements. booking and the are of the points, in background and don't trying are I question hearing here. the But company phase already the super travel various bit my on and back to the components a me my first. of important bit constraints focus. technical and customers perspective little of foremost, of and

as now new example, question, market a into X deep public with your one vehicles. Just worked the pretty Tier engagement their the space for now, new Gentherm. called we And category provider recently of product Motors to first getting of of an had a in that's General part back bringing automotive a with

will, So engaged Series success seeing a indicator if on in I've and what signals towards very us, a of been meaningful hi, is the of for three lines a customer those tell that parts really years you us on the are, moving front with way, last the the and production award. material leading that

just three most recent this new category I my assignment. with last years a that of and firsthand product experienced

I'm those AEye's with our making definitely with customers. going what's So connections to on engagements

So we're in the mix.

It sounds good.

had You be a guys going forward be putting more to you going more, the to into feel staff mentioned that software point that lot you is need terms like key of you little development. a up a software? in effort might given Do

has industry for in the this to that get think I been software to proposition. more believe It's woven on. you be deeply product be critical a if the We've pull a Certainly, I catalyst automotive hardware beyond value is as architecture priority driving, solution going concept, for early the So there is lidar company. the vehicle software-defined the will. got as lidar of a Look, the advancing autonomous vehicle. for always and a will pulling in into

about as start into to data soon data the in autonomous as that. can and of collection even involved huge software talking collection amount analysis feed a So driving begin we

investing staffing and it we're So and on appropriately.

congratulations, much. And you Bob, to soon. Thank you talk and so Matt. we'll Great,

Thanks Appreciate it. very Great. much, John.

I'd any this the questions at further Thank turn for like showing Fisch, call CEO, you. remarks. Matt to over I'm to closing back time. no

is your earnings and to I call of for In want phase call. for I thank exceptional talent positioned forward next everybody and in joining the May AEye vision AEye's technology, our evolution to closing, our partners, well I believe with today. look

for does Thank conference. all and conclude participating. you. today's gentlemen, Thank Ladies this you

disconnect. now a day. Have may You great