Innoviz Technologies (INVZ) 2 Aug 232023 Q2 Earnings call transcript

Good morning. This is Rob Moffatt, Vice President of Corporate Development and Investor Relations at Innoviz. And I want to welcome you to our earnings conference call.

Joining us today are Omer Keilaf, Chief Executive Officer; and Eldar Cegla, Chief Financial Officer.

Following their opening remarks, we will open the call to your questions. remind be this Relations available our at to recorded is section like website will and on ir.innoviz.tech. would everyone call that being of I the Investor

our like are results that to could Innoviz. those the risks to from remind would future forward-looking relating subject I anticipated uncertainties differ forward-looking events begin, will include materially we you Before statements. in Actual that future discussion and financial today statements of to the and performance

to our undertake only as Forward-looking of publicly we statements speak made and expectations no update today today or to obligation revise them.

SEC of important Factors March results Risk forward-looking some of discussion XX, cause from please could statements, factors section actual of For XXXX. differ any on materially the the risk our the that XX-F see to with filed

now to go the Omer. will turn over Please call ahead. I

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a to road determined of be believe Given share years, the these XX X-XX in next that industry’s months. will for of XX to going market be portion major most is the the we the programs fact that on

that, the to with will over turn And Eldar. call I

bank cash good QX quarter, largely expense cash during Thank our and operating you, on with Omer, budget. sheet. our with with marketable XXXX our ended structure cash and cost stable mature, balance mostly approximately flat morning, roughly Starting cash, the the being $XXX everyone. XXXX in-line and we cash, with securities, remained short-term in operating quarter-over-quarter, million restricted outlays With deposits,

QX of basis, came On who That the to at shipped. we in it was million XXXX our BMW, is to was pivot first XXXX theTier revenues QX BMW the million increase with a revenue since second revenues sequential statement, which components Moving to transitioned SOP units growth just XXXX total revenue of the XXXX, from nicely the on delivering for our in income cadence QX quarter-over-quarter impacted $X quarter-over-quarter to the selling and by $X.X a compared XX% $X.X Magna, of program. revenues with LiDAR step-down compared to the increase. million, of towards XX% year-over-year quarter, supported has evident XXXX most in by as a weighed year and then in XX% quarter-over-quarter QX accelerated sample X in selling units half

revenue As the with a the high the to coupled quarter, of quarter we for NRE approximately by about versus additional third in service combination second growth. cadence revenues driven the we think double volume year, expect unit revenues

we fact, for the into surpassing only third revenues the weeks QX and the orders we in in have In secured the quarter. five already quarter are

meaningful improving to revenue-based we to production fourth increased forward NRE’s revenues, samples even and expect tailwinds from sequential volumes, looking And an more step-up quarter, with new in programs. the shipments

statement. Moving further down the income

and compensation QX $XX.X QX side, QX cost were share-based facilities million expenses operating the included expenses expenses QX InnovizTwo operating primarily general expenses On million R&D million, compared $XX.X XXXX. on in share-based an million $X count cost. for $X.X to increase in in XXXX higher compensation QX XXXX. increase XXXX from a costs, of due the quarterly year operating compared expenses increase to mainly The in to was associated last operating head

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are the QX a the was conclusion, in sight QX into cadence we we quarter-over-quarter year. growth strong approximately XXX% on QX in growth very trough; delivered coming XXXX In and delivering we and of a the line quarter-over-quarter to growth have outlaid that QX. XX%

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finish with continued very We year momentum a and strong the XXXX for on note, expect beyond. to

that, with the Omer. call to turn And I back will

I Thanks news, Eldar. more guidance. our which up good some wanted to wrap with is

Eldar to As in sight XX% quarter, results third noted, quarter in have we we growth the delivered double in sequentially and deliver quarter-over-quarter second our even revenues fourth. of line stronger the the and

with million. revenue taking forecast that mind, driven kind $XX in it are higher, a of $XX to This raising million And $XX NRE’s. we our and both volumes by million from to is $XX million trajectory

drivers, and new program. the are from to secured fueled and vehicle volumes programs, our first light shipments trough new shuttle BMW unit the quarter SOP accelerating including commercial Our by launches, our two

as increasing New also this it NRE of in raising a million these from our made RFQ that the $XX to year. we increased million result and million, year-to-date, program our $XX levels the increased of to our programs as convert to on are $XX well, Additionally, of guidance some activity in program we $XX based million have confidence expansions, to progress Bookings likelihood mid-point and range

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first of of given the Given discount the from the timing customers, decisions the range, the to we can’t year, of is in set the are that but the in the since target to control dollars the felt front competing fact beginning set us. increase feel that need the the of we we we need that on the amount we the total communicate opportunity by

customer our the On side, same. the remain targets

to towards XXXX. ambitious production target in with continue additional to expect two are adding them goals, continue fast progress existing These reality making at series We a and X-X are from new least making and customers. programs moving awards but customers we solid

months Before to to the In I turning to It’s for you quarter important major expansion, a the later vehicle few year we we the at remarks. into Coming company roadmap on. Volkswagen. the this delivered customer hinted share that new wanted program at final and with hinted always we over announcement. OEM the delivered offer we call light commercial next us Q&A, a is a XXXX, and

were going work new we MRM an offering BMW SOP shared what we very them say confident want on AI to said a on us we’ve we with track lot we BMW, are working solution quarter say the are additional few investors units production do, the this on been to delivering and ago. call, were we am happen. the to MRM we quarter we on consistently executing year for we we make of that module. began hard shipping continue last to Last and for XXXX a record expanded of the and weeks we milestones And announced pointing compute to There are I to that We our just recognize that for today’s we customer, and do. with and things a deliver-on a can our going

the to over please Q&A With that operator, turn it

today Mark of question Goldman of ahead. go first the Sachs. comes from Delaney Our Please line Instructions] [Operator

of on production milestone which taking I is big Congratulations a you much for with the the thank Yes, X for BMW the very realize the for Series, questions. start company.

of and terms revenue that to variables as understand opportunity are hoping quickly of the the may you better may ramp your understand cadence and that SOP, it determine what up you're at size in I'm how that key Now ramp. own that

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smooth launch ramping at We up that. the beginning following expect a and

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into update share were you NVIDIA any progress to be in can with the series Is you programs discussions there production on mentioned leveraging platform. there? You Hyperion integrated

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should some to be is lot BMW. the that. an comes but is it control. this of synergy, stage that is development tailored there say There a integration when vehicle I this to itself early to of to expect related really Some the

comments? further any Mark,

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for bookings. Wonderful. excellent. us little I increase more the taking there give Congratulations can wondering our question. the in is quarter on Obviously color a and targets if on the thanks perhaps NRE was you the

wondering this if you expense. terms contract maybe have recognized more or of whether revenue visibility into in Just any be will either

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significant be for I already NRE even be the definitely And and QX recognized next so in will more there year. also a Some of in will QX. think impact

$XXX Thanks, just liquidity total it. on then Eldar. in Got now million And with, maybe roughly liquidity.

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side, do revenues On our in in, the the flow. other these to coming addition that cash we supporting are NREs expect

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recognize the be able this are our a to gross contribution margins. as NREs, to So, will we great

half that be second year. of So, the I optimistic stronger am the the that will even towards now seeing you're trend

pass And quarter the much, congratulations so I'll guys. you again. Thank it. on it on. Got

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Kevin Cassidy from go ahead. today line of the Our Please comes next question Rosenblatt of Securities.

GPU and said that Thanks custom congratulations merchant for the the on Very a you've SOP Yes. you supply ASIC there are that, those inside system? my also, InnovizCore. starting. designed Is and for or is that that CPU question taking interesting this

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who disclosed yet haven't We the is. powder

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I hardware speaking, say we obviously the hardware and software, on. and testing team on different this the roughly testing, and hardware point of the labs headcount, would the spending also So, so the it's are itself not only XX% XX% the on at

little less So, is cost-consuming. the bit a software

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total the referring No, it joint the is last end light the were commercial this expected announced get towards launch vehicle purpose program, production, more actually the to this The quarter. of were the year. time. of BMW we development program mature, We off the architecture this was actually was series of that to kicking

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of final of Please Kevin today go comes question Our the Garrigan ahead. WestPark line from Capital.

today. good congrats morning, Omar let announcements me on and my Yes, hey, echo Eldar, the

first stack, the for difficult agreement area guys kind you in that LiDAR of a move guys you MRM, LiDAR kind the with competition software you're area. company increased knew of having finding kind production OEMs conversation there's the this you of are more this but As for in are than up more I and

solution this we a on the product. would MRM allowing say the BMW them perception OEMs. than requirement many software and Other to and for the the introduced was is definition I the six we've working This the the that MLM more not again, different doing months. gone that out might as So using been to which then understand potential lead the first does part we're the and This a Solution believe since this the other of This them. business the of last RFQs up has we side is come comes education additional discussion new of are a from from customers introducing with customers was that it. than yet of pro of part always in on been to

about a OEM that in R&D the BMW it X. Asian then other sense. you there? just based know in sense recently was China doing to there makes China And you of got Can doing over any capture give announcement an guys us guys level beyond I production for Okay, what words are

are limitations perception when you know probably validating generally and the it to say extract from you software so do from as your the Since want area China. you you're need comes I to Sure, your there in data which would to system. data that the based ability on operate targets

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Yes.

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the InnovizTwo I about to to decision integrate So on a if work about than I company not time extend regards InnovizOne, is of sort more on I'm bit just extension late the action models why in guess but BMW how you you're why you association market the generation of the a it program follow-up. for is really I extend sort is jumped rather I market can of or of and to or the to to have thinking time with the InnovizOne, wait a it of older the on ask have one, a wait taking new a more constraint? product wondering

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of of of if other it seem extending and then well parts a of software the customization How the in you support that drive. as that need okay, those more if box were now compute terms of lot additional are just OEMs you given overall more how about headcount, entails OpEx about need more to it probably people just sort extend ladder opportunity module stripping a great sort of the the right. customization resources you with thinking stack do as you're like need also the sort sort of like you Okay, that sounds relationship you more that the BMW well to and that only does on to OEMs here but thinking sort the then we then with to

an have, it. version we activity already to for regards early that would time. some actually say, We that's on the model of Compute I an Yes, so working Innoviz are in

the effort In terms are effort, doing. of of very Most one. is the we software, which it's perception the already a [Indiscernible] into R&D extensive not

model compute the other offering are to customer. We

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Okay, it and you. Thanks Bye. sorry earlier. Thank I'll leave there. about

Thank you.

proceed. We have further questions, no please

everyone. time with that appreciate us. you you the I Okay. spent Thank

very the give this and and progress our you make fruits with We say very Volkswagen work. we more much. such as from to working very have our -- you of Thank are customers to out BMW we expecting are bye. Bye,