Innoviz Technologies (INVZ) 9 Nov 222022 Q3 Earnings call transcript

Please go ahead.

Thank you, Ralph [ph], and welcome to the team. Good morning everyone and thank you for joining us. I am excited to provide another update on the meaningful progress we have been making at Innoviz. This has been another fast-moving quarter with new design wins, new technology partnerships, significant upgrades to our manufacturing throughput and a big step forward in our move into the non-automotive market.

with at off new most things win. customer start a our look recent Let’s announcement we make last had Volkswagen our After quarter, three the six OEMs in two said additional that decision could a next months. to we that announced word, yet award new to a that customer. production September we true we in Proving with Asia-based our secured another to signals only back momentum, a Tier as is second our win our one just this Not wins in it production our an also quarter and delivering acceleration fourth back production win exciting X, out.

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our move we standpoint, that and one part ramp-up closer we From last articulates of Innoviz will us. volumes production targets. bring deal Very deal higher closer and in this we important developing are as we bring footprint. an with revenues this and this win quarters Volkswagen for expected rapidly production strategy going margins. with long-term the rapidly has LiDAR additional progress funding each quarter automotive of to to toolings. time, hope that revenues and is new our increased Additionally, expansion begin with making growing targeting have us on drive Asia securing this efforts This incredible installation non-automotive contribution XXXX. deals recent lower, not win, lower in expanding are to turnaround side, a deals Over geographic with long-term first volume fast working with and been into will And our geography we large they our SOP, global pre-production Last deal progress have to front. a important the Combined for and the extremely customer. to our margin Innoviz’s will this is production and cost machinery of for deal are is unit do already important we And a currently on news platform more announced market an very highlights technology step is evolving reach there our quick in the increasingly like Asia, is two models, our each it but deal this share in well. to are NRE with least, economics coming the on partner the to and

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and the growth go in coming the said have financials. for non-automotive over As we market the overall will in foundation turn be important for success that, partnerships year building making we Eldar will years. before, it over our and to With to the I are in XXXX the progress an

Omer, continue security And liquidity as you, with in $XXX Starting cash, balance maintain structure sheet have has quarter already past, largely morning, cash, on of cash a good to in million our matured. with cost we as restricted level Thank everyone. approximately and and said short-term marketable the end. we deposits, high

mostly So our stable and XXXX our budget. the outlays line remained with operating cash were in quarter during

our the and headquarters, the million. QX upgrades our in at Sales of million, as impacted the of company during Moving in previously move made compared were by the Omer $X.X to quarters statement, discussed. to we came lines quarter XXXX in calibration income to test revenues $X.X revenues

the meaningful While the giving expected, upgrade was the took well investment worth for throughput. the longer than slightly in it, timing improvement

forward, to InnovizOne an deliveries these we going With our with changes expect us, cadence normalize behind unit uplift the coming revenue in to quarters.

current XXXX in In deliveries. XXXX our QX already delivery surpassed have fact, unit QX

included Omer. back in $XX.X benefits an The and and from XXXX. side, the an the $X.X the to in compensation, quarter the unit million while increase XXXX increase level right expenses by the and to million progress of to QX in cost million quarter year. And in segments. this XXXX. increase expenses in following and compensation. larger the in $XX.X $XX in forward million will our This further included to the offset production we series development increase XXXX the the full in turn operating BMW due was setback an share-based compensation, company, Research that, $X.X of $X.X headcount the we from in move primarily This to to non-automotive were $X.X quarters On volume of to million, third of during going million our marketplace million, was compared long-term were partially lower ability attributable market share-based the quarter automotive the in share-based the are with for XXXX. the slightly in quarter for quarter, programs third gain shuttle QX position expenses $XX.X XXXX. year-over-year and strengthens QX direction The compared our call conclusion, to share additional of million step QX improves I expected, In delivery both next expect than should the that a unlock it be and as for recovered meaningful operating

Thank you, Eldar.

where to remarks our to prepared I Before we XXXX with a wanted quick original of over turning the it wrap versus today review up our Q&A, stand goals.

slide, beginning this can ourselves the you have where and that of set stand side now. right-hand year the On we goals at the of see we the

left VW originally and with gain, now particular is we XX% the goal the the delivered and we in win have two terms pre-production win, We programs, already increase of billion, are book, to recent are we XX. blown we most thanks And targeted targeting two, order and the yet. we today deal the a over that to $X.X year and moving with year in of and more year. in our again, not one targeted into XXX% terms XX In months design at came through

make six in or decision In XX programs a our with terms to in next previously we disclosed the expected the three RFQ to pipeline, two of months. process, RFI

that have With in the XXXX. see XXXX and to at this we we have already slide, one to OEM When about new believe can I from come our announcement we make have six a Innoviz, XX a who on deal, momentum could months. for the of you now we XX in the XXXX to the is decision the lot talk Asian customers things goes delivered upcoming more and to deliver we and promised there three

call I the the said, over into that Q&A. to turn us With Okay. take to Operator the will

Delaney first Sachs. Our today Thank Instructions] you. [Operator Mark call Goldman from comes from

Yes. the taking questions. for much very Thank you

if made The elaborate OEM next am you on qualified those can a could months on first decisions Innoviz in wondering impactful two of one the bit doing that three how preliminary input you key has with the is, with the platforms and being to well one I give with decisions? is how been any be six can

Okay.

would I shortlist, stage So in and with are a position. that last RFQ, and we meaning we opportunities say the that at the generally, I those very already would the that of are strong say

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more couple half D-Sample you how said series but granularity can in first is programs, you or be when of a of give second was Thanks. and any an next My you on the That’s is think helpful. share, provide is for weighted? going question clarity can will it you the process more year there can update you more second hoping production, on more half company

Sure.

So in explain a last little maybe have done bit will about the quarter. I we what

finalize needs and is to validation. that product, production from D-Sample means C-sample, product design for the to all D-Sample related validation the the Moving The grade. C-sample the in automotive of

the D-Sample are to done. need the production all you when start So processes

processes meet to the had So the we in changes -- had through from order starting issues to to our of needed we we open the D-Sample, all production had before go that milestone. in

So production it means doing and of now year, the able beginning next start basically that we by we D-Sample our validation. D-Sample to year, customers. already we the be meet production of And the started are already shipping hopefully the will of

Thank you.

Okay.

go next call Please comes Berenberg. from from Our ahead. Jared Maymon

Hey. Good morning, guys.

all, no checks customers colleague feedback doubt and video you those there’s channel to from of see First on prospective a show my are the customers position. and guys great Michael our referencing the great in

press for as and question you me, it release well, talked the the First that but on about platform partner. new on on guys call

guys So of Nvidia yourselves Mobileye, Qualcomm, given to. your of hit or partnership existing with one great out, as those, either leaves kind of that to pointed that obviously, you kind

can you the So past competitive expand a competitor the out and can a process on has those procurement key that question you explain given and how platform I you? for bit your partners, guess changes partnerships positioning relationship is then with mechanics are what the of called

Sure.

sensor different of eventually they practicing that, their way way want decision source. data, is the and your the that maybe the doing on once specifically But the which it to removes differences. on there they it’s eventually, already works the platforms this and on would is it they customer like say, to would with the customers decision certain, overhead with lot with platform to eventually, again, work it’s are the a a So they is I using that of if want algorithms, they one, although, which overhead need to value might a lot there they these or pay use, sensor, collecting sensor support customer

customer new say, we would customer, I existing that I huge wouldn’t a lower. benefit or huge fact the cost the I a -- general, clear. the with need the platform it’s in and a because to this benefit, effort to going hope leverages on mean, future giving were program So awarded on us overall would maybe is program be

Definitely. Thanks, Yeah. Omer. No.

Yeah.

And then…

Great.

a so forward have the … to to how great better those the LiDAR book, update customer. question, of second on alongside on of order players sense we looking order are the book calculations just kind been the general, in top hear approaching trying get the

rates how doing? So and can considered better help at you your then estimates some are any in if take us like peers are there of understand what arrived like on wins are unconfirmed things

No.

measure us that of number only are across to those provided give the wins are and We design program. -- have to that referring different We the expected on scenarios RFQ. of were based that on are weight weighted be of some the part several given and we the are vehicles as based volumes years included to to the

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shuttle this volumes the that based Specifically on volumes no because on program, we itself, just from already. there are there out customer the got the is

me. it it. Got for Omer. Thanks, That’s

Sure.

Okay.

Our next go from Please comes Sheppard Andres Cantor. question from ahead.

A me. Eldar… Eldar. In question regards another Thanks to Hey, for from and few quarter. my congrats on questions Omer. revenue quick numbers, Hey, taking the

Yeah.

in finish explain that from like not a than you are was should just in little here and a primary wondering the Thanks. I on it you I XXXX, stronger headquarters QX downtime but know little to company’s QX, a QX the so am the year? … looks reason was, we can says that bit lower bit expect guiding move.

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Essentially.

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add I that, if to may. maybe to want I

automotive, As us our to D-Sample pursuing to as to requirements. with production commitment to requirements, the meet our a their customers such our company quality BMW to modify required follow processes moving their

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production add wins, important was, two is downtime to here is as recent would are maybe customers This related to launch NREs, also general, is so the Eldar significant to of as year. unavoidable. next recent there the said. the the win, the design And but One, design very are that But cost I revenues. say, customer funding to expecting said, tools, So it so in production. elements the to our we support Eldar

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a It’s No. question. good

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go thinking XXXX for maybe remind one needs Got if maybe you it. approach we are -- and one can we Fair I your capital raising Eldar, enough. And you could, as you, about as last just us on beyond? capital how needs,

Yeah.

BMW both expecting there that at launch. of we year are the inflow program, launch we expected are next revenues both we or generate the what basically programs terms sources. expect, final before, So the And are we in as I expect looking the to the NRE said will shuttle which and revenue of

Asia. We in new have additional from revenues coming client the

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on guys. on. Thank thanks taking you it I good Wonderful. quarter our Congrats very will very, questions. pass and for Thanks Again, much. another

you. Thank

Thank you.

next Our JPMorgan. Chatterjee from ahead. from comes call Samik Please go

hope I my and guess for together can and I couple Thanks side my taking Hi. from a hear as question you me. one. ask will them

even challenges you of the more more is software some software timeline or developed timeline, that this the more allowing geographic terms the underrepresented sort of the terms trying OEM between sort so? or geographies this to new the in that’s or months you. to of compressing customer that there of the are question LiDAR referenced. to mitigate a terms your and the are stack? any company series the OEM are they production pipeline, Thank your do of in there was you And I mean and it sort the trying as customer confident today as about of in pipeline the can company is the providing LiDAR to Firstly, a rest of production? safety, series towards What of split rush looks you feel are a sort the how in the much been had some with or or is production? the these pipeline Asian this is -- over to you then of and the you win that GOs of How compress mitigate where -- I about company sort as sort to trying versus of of you diversity you stack like OEMs XXXX, the second focus around next need balance trying to where invest safety in more XX how have the to to you rush talk rush one

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blind which first there mean, we automotive team are some question, say, OEMs, thank saw it blind would of I with of Asian Samik, of XX other we our market. I probably, Europe. Japan, I I in even say I are most we team, also say pursuing us. LiDAR But are R&D base but Germany geographically helpful spot that, in big think So, currently new there of a discussion, I the with that when the for -- would car of think is Starting not about. -- that a it’s that, also that than know definition spread the everywhere, I all, probably don’t we other is engaged. questions. customer, now you, now. But there first -- Germany, because started German within as our maker areas is have I something that think would is even spot, we the U.S. don’t we by those and is we don’t a

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Thank you. luck. of Best

pass Securities. Please Rosenblatt question I the to from ahead. over McClain Okay. next would go Culver like to

already RFQs on is you had McClain Thanks. follow started had and few automotive accumulating for different around a the Cassidy. Thank is This question. a and ups. the I me few you than for let market the InnovizXXX Have I the Hi. process Kevin questions ask RFQs.

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you. Thank

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you. pass I you Omer. much. today Thank would the conclude like to Thank over call back very Q&A That to shall for session and our

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