AEye (LIDR) 12 Nov 242024 Q3 Earnings call transcript

Thank you for standing by. My name is Janine, and I will be your conference operator for today. t this time, I would like to welcome everyone to the AEye Q3 2024 Earnings Conference Call. [Operator Instructions] I would now like to turn the conference over to [ Betsy Patterson ]. 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 website. be found the the Investor results copy its of this on today, the section XXXX. company's of can quarter A for release press Relations AEye announced third financial

on future and the United based States Today's discussion as current statements and of forward-looking our results defined in performance reference and assumptions. regulations statements to events, in and may include the operating or securities inherent circumstances. Any laws subject are expectations with changes risks, are forward-looking uncertainties to

Our actual by contemplated those differ results materially from these forward-looking statements. may

from more You new update The otherwise, by the intend and statements the statements with regardless are factors including does to time be Securities law. made any information not future of today and uncertainties Exchange Aye files the be risks, report. to about any required periodic forward-looking can as most recent Commission, and may time in information, find only, other in developments AEye the to as of except reports or

financial the business. presented we supplemental In be this performance which financial in information with and discussing should believe only information These a the financial assessing for are in considered measures addition, call, of substitute measures are relevant as on non-GAAP will we presented GAAP. be not accordance

most metrics the these reconciliations directly GAAP can You release. of the to measures comparable find within press

pass Now call the let over Matt. to me

would If there for underlying our for us on call. quarter thank today's be third XXXX theme all and earnings an you progress. joining Betsy, call, it Thanks, was today

of tools quarter. and closer AI advancing team proud the the quarter this I'm we the and strides production accomplishments and move us to significant made to place in putting in very partnership goals. achieved product the in milestones our team Our financial

Even distances size of detection with the On new high-resolution bar in announced the terms a at it that of the of delivered We that first factor accomplishment remarkably, believe form products. front, competing set this X our in we performance is we more peers. product half a is kilometer. object Apollo among

partners. Our technology, a in delivered to across customer announce also now have pleased our spike Apollo our architecture, samples of major design demonstrations months. in the delivered coupled And delivers advanced days with partners that line driven where reaping are or we what significant Apollo's a board. options thanks SmartScan as packaging, want. benefits variance Apollo such interest also weeks the software-defined instead LiDAR changes the are SKU of vehicle customers I'm superior to first vehicle solution, to configuration have and

incredibly showcased in-vehicle demonstrated also we by very combination an detection driving Hyperion that completing at with specifications, NVIDIA. challenging NVIDIA which we've Apollo quarter, demand Apollo high-resolution test of Notably, distances. long a the meets This major

into We be that forward milestone. met our this platform. of This are technology is integration will not expect the Hyperion step of any aware significant what has we other in the LiDAR a NVIDIA solution

integration deeper of This and paves ecosystem. achievement our the for way the with further technology strength validates NVIDIA the

Given its a expected solutions, AI-driven computing influence focus profound is automotive the markets. and on and NVIDIA high-performance ADAS autonomous to on have

global quarter. with we Tier Apollo LITEON. Apollo We in expect X deepen engaged manufacturing ramp are activities our first relationship to continue line partner, recently the multiple and this showcased We our Together, quoting attracting for automotive to OEM Germany. International and in from suppliers, Suppliers IZB is the years Wolfsburg, the visitors globe. world's every leading XX,XXX IZB trade Fair at around LITEON X shows one with over the of together is held later

in Apollo is and been to We've progress the with the potential to OEMs continue demonstrating invited LiDAR we Apollo customers. a sensors response recent our partners, now also want LITEON. its ATI million The turn to automotive to future and to in launch I XXXX to to currently global leading demonstrate as excellent industry ATI according of where Apollo view multiple China, at Chinese double and Chinese for reports. adoption. to the Suzhou this Show year number China LiDAR X We to eventual LiDAR ship indicator that in market June. in is make expected

most landscape. caught model investors, believe capital-light required the approach and the Apollo by the has has pipeline. industry, in We automotive to have to and which us attention the to has runway that financial evolving us LiDAR continues enabled to the that's navigate the support liquidity production tools efficient of the business build positioned well our AI multiyear

fact even transforming made are of year the remarkably a together to overall landscape. our AI proud not the more and our highly automotive forward be team of have seeing this done and team more by could we continuing structure. to work products impressive accomplishments that look talented Our goal reach to lean it with I

performance. With that, color Conor I will our over on financial more the turn call to to provide

multiple In we while management where we product across solid collaborations engagements cost made partner OEM quarter, fronts, strengthened expanded Thanks, third disciplined and Matt. progress the development, practices. maintaining advanced

measures took These to have prepared us accomplishments to key needed support our fully to achieve market. our liquidity opportunities runway that from in proactive milestones. we funding Additionally, evolving benefit the strengthened continue the to

global stronger their China, a integrating aggressively vehicles. on notably, include local Most capitalize we are which to where incredible in opportunities, position OEMs into LiDAR are the

productive LiDAR other and driving them have see are ADAS. and potential engagements for OEMs as to to technologies continue autonomous encouraged on We in solutions leaning with adopting

gives allow some key maintain does Slide with powerful we the can debt it This enables compared competitive a sheet us efficiencies X, industry. Not to very and you we unique well balance industry can in is our little LiDAR and As capital-light model on is a to cost product us a more only when at see to to lowest is OEMs. a in the leads price received differentiator it peers, engage greater the us less as selling our it structure as of with do point superior point. offer a

raise the financial tools earlier, to ability I $X.X should equity $XX us bring up As tools our and of facility. an needed additional to our through through continue to new Apollo capital These developing with multiple to million of design credit up technology, pursue market, provide and access line mentioned our at-the-market include the to facility secured liquidity we million the wins.

considering we new with investment are opportunities Additionally, partners. strategic always

Now turning say consecutive to our cash third quarter pleased we sixth our reduced to on that net the financial results X. quarter. am I have burn for Slide

million, cash financing, guidance down the new was of our the $X.X $X.X Excluding third quarter, from beating burn second quarter in million million. $X.X for our

existing by reserves. the line was margin nonautomotive Gross impacted increased by was Total Revenue with expectations. revenue product negatively which was warranty is driven consensus in to $XXX,XXX, an sales customer.

facility-related which GAAP quarter were with the includes compensation expense. associated of sequentially down higher noncash our adjustment in Third to space, $X.X a savings, second stock-based expenses quarter primarily operating office partially by million, million from due downsizing payroll and offset XXXX, $X.X

loss payroll XXXX. costs, increase above. net mainly million noted reported loss were per sequentially from $X.X a of per net the $X GAAP due or savings. The which share loss to and of third the second quarter million, Non-GAAP offset quarter were payroll in GAAP $X.X financing-related $X.XX GAAP quarter operating of a by was share in down partially $X.X XXXX, savings due million net expenses to $X.XX of facility-related in primarily facility-related second or as We million and versus

or ability $X.XX non-GAAP met compared non-GAAP quarter share per On we basis, million quarter $X.XX $X AI our a has the beat or to third line expectations, loss million in of to where was consecutive loss a either our or XXXX. This the per the in demonstrates quarter execute. was net share which second net $X.X of XXth consistently believe bottom

cash quarter of $X.X for marketable cash in with $X.X $XX.X closed million million Net cash, decreased equivalents quarter the third and third operating million quarter. the second used the We to securities. activities in from

Our $XX ELOC on potential which liquidity, approximately is facilities, hand, million. ATM cash includes and our

guidance Turning to XXXX XX. on Slide

are savings. initiatives trending tangible are facility-related guidance reduction and yielding XXXX of through outperforming expense million we towards ongoing continued still cash payroll burn and savings, cash our $XX Our

fronts, strategies. by a Apollo, our success, AI on made our product progress tools business we sustainable in raising in for team has capital are third the the continues place best recipe in that the the quarter the execute necessary We growth long-term model, marketplace. excited to multiple a and and

the look to excited progress and will XXXX we in for accomplish and reporting on continue are make what beyond. forward in XXXX we to We

With that, up. I'll pass it things back to to Matt wrap

Conor. Thanks,

terrific strength our strategic on progress interest the performance to reflected our of product financial to we advancements continue surpassing achievements, OEMs. goals sustained the internal The as and the the third drive raise from partners, well positioned coming and our From own stability product from engagement quarter bar to feel front.

with growth. building momentum team the financial to major put value success. place Most in milestones We're remains and our support. your motivated has needed and opportunities you committed, our we by equipped to our ahead, the importantly, Thank for secure to enabled tools forward to look Our energized and continued us for the pursue our stakeholders. next expertise the approach in

Our Brian of the Partners. first line question Kinstlinger Alliance from from comes Global

with Congratulations on and small the it's kilometer high-resolution form detection such at a the a factor, progress with impressive.

advances, about past the customers data on long pipeline to investors expect high of, of procurements? points well I the potential resolution active. should NVIDIA both And the these X RFQs X in end to this as these the where are a talked You've reacted have range? as How what believe, you with of as next some

this call and This is quarter. thanks. for the joining thank hey, Brian, Matt you

hearing, take in hearing. the couple on next OEMs. we're some as seeing quiet nomination a start this know, for to side what on what XXXX a year what we're we see we're me Let been we on just based one, Number has can parts. sourcing of year and decisions based think I And

a XXXX. than So in I we'll did action have more we bit think

response Apollo a has strong. talked that to into as product, very, and back to continue come expecting XXXX about positive. our here. it to engagements And last Taking get we quarter as Those I the mentioned, be very we to head been

But thing. look, the here's

it an that's the software. of bit that just there used software today in type integrating things, cameras. little getting into a into images or system key come autonomy integrated for is second, challenges new sensor getting consuming is really the of ADAS a out for One digesting a to the example, system And technical and all from an all

wide the of image, our our does out and is on seamless lot speaking. It the more very far. The digest field OEM the to makes is speak, a thing high makes interface data, Apollo And this view the it reduces LiDAR easier that OEM system resolution software coming because it and so that of a wide. shows shows very to relatively for friction

of we of from at a bottleneck is a many the there. it software device the OEMs know, for as is but our as a the integrate lowering friction out course, bonus, size to just Of device look perspective, those

mean, I however, -- was heard and landscape That see you that we Great. Can how you for talk talk about Can the about, this range. the you're helpful. facing competitive RFQs size you the year? these

somewhat industry. So familiar automotive I'm you're look, the assuming with

Forgive if want automotive that it But right? performance, look, always the comes industry to choice on cost. size leans and -- simply toward best be to the we one. having And when me choices,

a hip LiDAR X talked and Tier space, we've we is buying of are And think experience expertise is the at joined which I the another got us differentiator. but differentiates main there technical with supplier that tremendous have from key important and And power. the they size. that who's about they the others one out in things have already performance the the for optics, Cost is

be which cost very competitive the process, advantage force So perspective. consumer in is the And automotive, the but another this we're from that. space in during only key is great a market the LITEON leg about we the gives distinct to feeling in sourcing us, us well-known a here. not of most a help market our stool believe, cost

Great.

or change tariffs change Now imported does talking way this strategy? potentially, and President increased plan with in the your on Trump vehicles any about administration your

foresee any election. per now right changes don't We the

been I powertrains, vehicles think you mentioned another electric that combustion-based that topic versus up. question and the also that's comes

that the the of powertrain. is agnostic second point, technology to just all, on to First cover

and either doesn't combustion -- we engines meet of or to restrictions So and with a it it happy between chain really technology needs need mix report from up our impact OEMs that in changes, conversations our well the those supply vehicles either way. to plans positioned at things nor perspective, whether come to we're if look we're potential as electric differently that

questions at joining There Q&A concludes That conference Thank session. no call. you Instructions] are our this for [Operator time. the

disconnect. now may You