AEye (LIDR) 9 Nov 232023 Q3 Earnings call transcript

Good day, and thank you for standing by. Welcome to the AEye Third Quarter 2023 Financial Results Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to AEye's Communications Director, Jen Deitsch. Please go ahead.

you AEye's thank Earnings Quarter and Call. afternoon, for Third joining XXXX Good are Executive Fisch, Tierney, me Matt With today Chief Officer. Chief Officer; Financial Conor and Earlier the results our today, XXXX. quarter for we announced third financial at our of be our release A investors.aeye.ai. copy press found can on website

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

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

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

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

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

Now to pass let call the Matt. me over

out marketplace, our seeing joining and platform, intelligent LiDAR share progress sensing will news receiving product and we XSight on update to quoting relentlessly which today's rolled enter superior market Since we differentiated establishes major us. OEM focused price a trends solutions are AEye integrates and all we call, Jen, that a carries into respect On in with seamlessly recognition. in a is Thanks, the activities the May, I ADAS industry you for have that revised automotive some thank our our the an provide on on with been and strong we ensuring player. point as strategy

right Continental, other technology Based we on right our with share ongoing successfully space. LIDAR has compete of and our remain win the conversations and and model the partners, OEMs and in that to AEye work confident the business fair

by players, including Our has highway and for major detection NVIDIA, ability to technology, stands deliver been which endorsed out speeds. safety Continental at with long-range its

vendors well closely are competitive the to subsystem and working the that mark are ensure to our below most driving in market. Continental costs down with $X,XXX We continue our products the

binding still Continental partnership long-standing Our the a end year. this expected highly the OEM with of lead by with and target we phase in quote with are decision productive, our remains

the decision for XXXX. we discussed, of additional for some X although time running have We the the into RFQs have are opportunities still in out pushed those that been lines previously

decision size an ranging game-changing than billion, from million is to AEye. $X $XXX in for With typically more award opportunity RFQs a

market path the LiDAR best the is a battle best battle is landscape AEye it to shifting the highly commercialization. is technology that competitive, for from secret no the While a to believes for

capital pace We now. adding of technologies that cautious like more to spend their about seeing the OEMs being LiDAR are right are the and advanced now mix

slower just and it LiDAR than that is moving clear we're at a a getting adoption Although signal pace happen, forward OEMs expected. from will

and made and toward Given the structure cost quoting the we with around May. seeing announced that in our timelines, delays operations was we're commercialization OEM strategy automotive-first optimize slight the drive decision the to

to drive runway implemented and expense further steps reducing down will structure head helping burn, cash have count our details to shortly. out by our provide to go-forward additional extend costs on We XXXX. Conor

On I'm happy products. enabling for our scalable Reuters' of XSight last for vehicles. a the be generation our we continue next flexible, judges month, recognized the to innovative Automotive technology platform front, DRIVE for product prestigious that the with to excellence, next-generation Honors high-performing, report and Award XSight received critical calling

innovator automotive advanced opportunities for several features accelerating We and safety peers software beat recognized as in of OEMs. out being our that LiDAR an revenue is

XSight the provides XSight are factor, We This new announce LiDAR in design, flexibility to X/X OEMs bringing half the integration and product XSight design reference into giving compact, our windshield, a have design, Flex. of a released form grill. the in automotive high-performance power roof height also At first-generation safety or pleased low-power ultimate solutions this the we that, today, offers consumption small market. easy to

volume at We industry. Flex AEye's deliver anticipate lowest in in-cabin the XSight LiDAR the cost will

engaged highly key IP. advantage, with note also is superior positive, our have several an show, AEye's actively capabilities is our impressed Continental competitive. demonstrating OEMs the while enhancements that to reliability industry-leading feedback Customer underscoring in a road been weeks, been being thanks technology has software-defined customer past incredibly Over specifically architecture. the semiconductor that relationship potential, and we of by our performance OEM XSight our

summary of With hand a for performance. our Conor financial I'll off that, it to

everyone. Thanks, Welcome, Matt.

automotive AEye has As earlier, incredible and Matt innovative technology solutions discussed customers. for its

products are we OEMs and are production to and serve. the Our close so partners ready

investments. and the commercializing intend to market, our nonautomotive on our the in focus of Going automotive while forward, we market and back resources technology appropriately dialing our majority research development

we have In couple operating we significantly our of connection cover a are taking will plan, our I'll extending XXXX. out in reduce details realigned minutes, runway but all financial resources. the with actions the expenses to and our operational this

earlier I'm goal anticipated. XX% quarter, to quarter the cash our reducing X than of to turning achieved financial beginning the third year, Now since happy our that burn report our results. we quarter of during by the

$X.X We the quarter. net also reduced burn cash by our prior million from

team in key were $XXX,XXX, $XXX,XXX industrial efforts certain and focusing being their This milestones. to revenues the the automotive mainly for Third was prior pushed quarter. compared on the as to opportunities attributable timeline out customer quarter

quarter were expenses XX% reduction from $X.X cost million, $XX.X Non-GAAP sequentially million continued the quarter. primarily expenses due million, Third initiatives. our down last to down $XX.X were quarter operating operating from prior GAAP

loss part the to reported The our We to net quarter. a $XX versus million or mainly third inventory in quarter GAAP of GAAP share loss share write-downs GAAP On $X.XX loss $XX.X per outside per million a loss $X.XX operating reductions. transition ordinary non-GAAP with $X.X associated due net or to of last which the a operations net automotive of higher-grade share commercialization, was components non-GAAP increase our million $XX share net of $X.XX basis, by certain third as partially or $X.XX per the prior net was per of million in were compared or quarter. loss a quarter, offset expense in

third guidance we reason non-GAAP The quarter the quarter the in provided we loss by were our expense and were meet beat $X.XX. we EPS made able our to reductions EPS last loss main guidance GAAP

securities debt. million the activities We no manage in continue of quarter to third the cash marketable third with equivalents $XX.X to and million operating quarter $XX.X net closed the from our used quarter. and cash cash, We and second in decreased cash million $XX.X carefully for

As credit we our source of liquidity, additional have to access equity an facility. line of

seamless years. up to shelf statement the expenses $XXX and to to a healthy given pipeline said, we of X execution and a operating sheet cash have filed of that have burn, continued our also raise we we future RFQs, us the plans the to our we quarter, flexibility additional reduce registration allows next to million over have wanted capital Since balance the no the raise raise immediate have in wins. capital. support contract That to to During

for XXXX. guidance quarter our to fourth turning Now of the

that from to Continental's of model we automotive so beauty in need capital-light and other manufacturing, to don't development plan our chains and business and our partners research assemble, rely our supply scale on leverage shift our operating it marketing enables commercialization, of expenses. to business. to distribute sales invest part us our promote we products, As to is and The to

have and allows place. across us to rinse automotive model by our into then repeat we on and other and is royalties foundation licensing in move markets leveraging the Additionally, based and

dialing line scale be automotive, this largest existing we sufficient in and To product until discontinuing for have that end highest will industrial our market is our point, we which are support back priority and market.

the As and inventory $X.X a in result, to charge million, record $X.X range of we related principally onetime a of noncash charges. expect to write-down million the asset to impairment

million We in charge to incur of million the recently to force also $X.X related cash the reduction to announced. range expect $X in we a

measures of the in savings to result million these expect We $X in $X annualized million. will range

focus primarily on fourth quarter revenues will to less revenues. to anticipate turning due than automotive. our Now We $XXX,XXX, be

impairment asset some GAAP reflecting We align to $X.XX our this to decisions loss the non-GAAP reduction operating quarter evolving EPS to with cash We restructuring, costs of decrease termination made the our important charges into to fixed onetime related loss $X.XX, quarter our write-downs, runway to needs extend benefits to and to due business reduce and XXXX. operations inventory and workforce. be EPS expect to fourth

about the Matt with pass implementing the we bullish first future phase are to up. significant next wrap plan the We and opportunity I'll to of believe it our AEye that, partners. see With optimize OEM position things will to our automotive back

Conor. you, Thank

for from for term the point believe role the transition automotive as long earlier, technology the play steps industry with we to be battle important safety a an the navigate a believe inflection to battle well-positioned this As and in continues best I We best the reasons. improving taken, commercialization. to path LiDAR AI to said to we significant at over several for transition have is we a

healthy. First, be our to pipeline continues RFQ

and stronger down with our significant chain, the than our partnership Second, is LiDAR continue of Continental product. with supply their thanks to partnership cost And make we ever. to have with strides

quoting We are binding with lead in the phase OEM. our

allows and business cost OEM our forward. we us market. Third, meaningful chain, sales near the partners' it business scale sales for to to our In leverage leverage teams operating capital-light, up bring effectively and manufacturing, positions our ramp model us licensing-based to relationships our supply term, going unique as technology

expense has further to our rightsize Finally, our without XXXX enabled our capital-light additional model extend raising to runway to structure capital. us

day, In the partnership and our strategy and shareholders want operator for team collaborative AI your your call that, your thank to interest. turn I for our the to at work will for and for questions. our closing, Continental to dedication support back I every With hard executing

from question [Operator Water first Research. with Roy Instructions] Tower Our John comes

to more shift is going detail there about happening Matt, any commercial, Conor, focus guys your can so really affect first at? now that's really what's given where you're and how you automotive provide this from R&D to

Absolutely.

all, great you. of John, have to welcome First back,

the meeting what That's with done. that the requirements we okay? are of product, is in a So automotive about strong talking contender we're development about in feel the We're we industry. our R&D, And talk various foundation the complete of that. that there out we're

what's earnings the of So That need in award space. production to And the things talked next? is there's calls, done series some earlier get here. the we as we've X about automotive in

out scale integration, each with have at One low-risk the to OEM and the the Continental each part our vehicle is testing. for a table line needs reliable business. products. tie customer second through different high has of road That's ability And this stakes sub-suppliers confidence, that of automotive manufacture then vehicle we slightly, to from set is

software is say and engineering a talk activity. is what and We when part operations-driven This as this updates do heavily that product we and about have to improvements process. very of commercialization, we

focused as activity. XX% being market. going the we and So this it months next the of you XX, as forward, XX at about these X, operations company -- to drive look Think on can engineering

is next The XSight was of born. the to to other where on enhancements products, XX% whatnot Flex features, this is generation and our new and go working

shift, and that this from the market. the now will, So to operations you very focus if to product in foundation engineering of heavy developing was product bringing

Great.

about you a any going would that, but as of So talking Conti things to helpful. you are any maybe kind color well names, more at any color I'm Can were how more not name and of follow-on, be RFQs. give asking on kind us details? you

with relationship Continental To it stronger than I ever. up, is Absolutely. our sum believe

supplier, earlier top talked type quote. of the find is X step bottom binding the we This called a automotive a case, the chain in is contract about process. with make, It's serious and So actually this Tier your in have serious phase a supply nomination contract the to in to a OEM. very binding where script what vet Continental very the

first of the time history that is maturity level we've And automotive this in this in activity. quoting AEye's reached

it. So we've and tremendous by progress Continental about team our summer at driven over the partners spoken here, last the since

that's one. quote part, binding key So number

We're still RFQs. we about the those. The talked in of running second is X for all

out of of those as shifted We mentioned a bit. haven't potential some But earlier, have those lost any little nominations. I

I've in timing to some in are said activity Varying spoken them Europe it's own nominations Big the As a 'XX. with space. evidence every in major earlier, of lining times And LiDAR 'XX, and been firsthand summer, I part of some when also has with ADAS in And one that talking to in of over personal OEM LiDAR are be OEM news. are leaders program. the my Every just question Detroit has map. road X up going why out a this good seeing we've is given. we're on That's those the

with comes WestPark Kevin from question next Garrigan Our Capital.

little the more wondering color line I the on XSight for was if us Flex. can time give you a

XXXX. it's to the press in be in available noted think I release, you going

on color the timeline of kind wondering can give. of shipment any for samples you and other So just

right that. hear And you, samples get from chase to the good We Kevin, Great. next on to X cut year. to

any And Perfect. XSight Are of such give you as Continental? you using be X to on partner can Flex? the Okay. manufacturing us the Tier a going details

supply of in is the the our look, volumes. We model, existing allows I It and that's risk us important think one industry X is to point keeps plan scale customers Kevin. to to incredibly Tier our through economy also the automotive use important us to of partner. This and leverage and continue continued things that scale a And to leverage manageable really potential for chain.

but about degree reuse, next into we've of design. and this So some got improvements engineering use, high of going think whatnot much generation very

it. Got

that? a instead line? behind specific of makes looking of systems grill roof have you OEMs that any on just don't are you Yes, And just or lastly, car? the to because it And is ton putting Okay. seeing for mean lot a integrate sense. then the of the reason the guys LiDAR redesign windshield cheaper I to

tell from bag, and Flex Yes. mixed lines and are Look, bit of over of trips Look, is a OEMs we announced with summer. I make kind data it's need, reasons we you here anecdotal different a different design seeing vehicle the can choices. think I meetings today. own Because this the my OEMs, XSight the the one actually why of different

say, and off the Some are Others the with roof. that can do bump with higher okay the cars to the behind you want are grill on tuck up that, it ground.

It's there's number advantages a in of have is industry, And places beauties behind drove and is to much automotive that's a there to it easier ways. the are flexible variety. build windshield. in to And manage number this one well. the being and thermally able something lot as integrate of a more of This to the But technical of what the really depends. other windshield us so product a

to at questions like for now further time. it Matt turn no showing closing remarks. I'm this I'd back to Fisch

hesitate us to with any today, us not do Take months, coming for please and in out we reach care. joining you questions. to forward Thank the updating and you look to

today's participation concludes the conference. you for program. This your Thank in

now may You disconnect.