Mobileye Global (MBLY) 27 Apr 232023 Q1 Earnings call transcript

Greetings and welcome to the Mobileye First Quarter 2023 Earnings Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

It is not my pleasure to introduce your host, Dan Galves, Chief Communications Officer. begin. may you Please,

involve it. business additional to Please periods quarter Please includes ending refer contains on and today's welcome call see note earnings actual materially. the on specific for accompanying discussion currently the based statements the that risks April release, results could differ the cause press uncertainties. forward-looking as Mobileye’s statements Such and which information we XXXX first conference to that environment risk Hello, factors X, to XXXX.

Additionally, call, non-GAAP provided this financial GAAP we on release. both will is GAAP figures. to refer and in measures of earnings to our posted A reconciliation non-GAAP

the on CEO and Mobileye's us and Joining President; Heller, today Shashua, are Prof. Amnon Anat Mobileye's call CFO.

call Amnon. the over Thanks. to And I'll now turn

thank the earnings quarter Hello, on development focus I'll full you going – to address three about our on comments a of year-over-year well was and the our briefly revenue production portfolio discuss then adjust for Expand to I'm business joining an year-over-year in QX, my industry completed. call. on areas. and business growth. year progress advanced guidance. macroenvironment, just everyone we against X% our volatile backdrop what up performed XX% still was around is In our and

year-over-year, EyeQ we related XX% off base. revenue was SuperVision and units, XX,XXX doubled a low up delivered more a than

provide capital a on $XX than to over cash X% and higher be to this expenditures and of year-over-year was generated robust. to continues million details $XX. will flow million We of up $XXX price quarter. rise income existing were operating that expected, bit very and continues flow more Our $XXX million we cash Operating

opportunities And are us large we of side, the to pursuing in future lines. XXXX. in the we're design $X.X than generated front all expecting are of themselves billion in we level, high the new opportunities product the the is XXXX present from higher progresses. as opportunities pipeline wins On already very business At a projected across more of business year

of advanced we're the carry half our and add where cloud a basic cloud Significantly per our Chauffeur, revenue front-facing products. more enhanced is the for content assist REM pursuing ADAS, driving higher On like than opportunity vehicle much than we map features enhanced base driving assist, system. which SuperVision camera products to

launch We have will one customer a that this production and second in today year.

still business following. We vehicles and are are more new expected quickly ramp the the those more positive but relatively low, based to see on up launched. as is technology cars, this in very Volumes signs offered

of each ADAS to vehicle percentage customers have far portfolio, their plan. original two bigger new decided so the First, incremental the recently offer on platforms enhanced adding to of cloud a

cloud-based services Euro to Second NCAP safety added for the ratings. safety XXXX has criteria

high and the safety that refreshing provide definition can believe that indicates maps major of we regulatory features we support This for advantage in area. a have types rapidly competitive

at least through economics XXXX. which of the recurring two upfront We expected high more than to higher generate represent $X double is upfront average the and the the on very margin, these system of generate Third, just pricing system software potential and drive the higher on revenue chip, revenue, business is OEMs from will billion revenue prices.

down ongoing funding earlier to begun we mentioned as Moving from OEM our serious European production on is regarding work large now development we in of development the QX nomination and call and serious SuperVision, a contract for to the number formalities. activities premium OEM have discussions as signing the on formal well January

of adopt brands expected this the technology platforms. carryover as are Additional on SuperVision group to shared

conclude is of second the U.S. in year. from funding the this development the OEM based half the engaged to expected also customer win in the with concept We're that phase, design with including

including emerging beyond China Zeekr see expansion the interest and Polestar a globe, reasonable and performance SuperVision Zeekr mentioned. continued pipeline OEMs wins promising several of one SuperVision’s based just for with high and design opportunities will combination I is to of markets. large across There with in announcements momentum. is X of We India. the We cost with term of of traction OEMs to near wins into design Europe delivery believed XXX continued over-the-air that software and lead gaining features

and testing of concept quarter, wins. respectively, followed design Chauffeur XXXX should in concluded we’re line. Chauffeur, late These early product OEMs On two with the announcement for likely by by phases midst development of the and summer be global fourth

business to Finally, on this revenue expect generate Mobileye our continue in to we Drive XXXX. first platform, in self-driving system

putting we’re self-driving XXXX. focused stack system integrate This validated that be deployments. scale requires are can for platforms purpose-built in together this to to pieces our homologated full and the on importantly, More and business volume starting pre-engineered

announced for details vehicles used and continuing. to with of European testing system leading more activities Israel, supplier with builder our share their XX Schaeffler have in Previously in activities vehicles we third be soon. And added have validation we a Europe will are to outfitted already and Holon a from of have platform and commercial and flight

in of outlook. in come reducing from OEMs comparison full deployment our anticipated a lower X.X% year initial expectations models of SuperVision about geographies. guidance related and the by purely single customer the across XX stages and XXXX our revenue By the at to for OEM of the SuperVision our broader midpoint. particular all diversified over this our projections This to is model This for to which Turning introduces for business, income early product. volumes during adjusted our volatility hundreds China. in from is operating naturally SuperVision. Most In

We much than SuperVision total where growth revenue drove XX overall saw company higher volumes revenue XXXX, X.X% on this points and upside ended volume. the less expectations of in than of of the

has value be for volatility Chauffeur it systems but of to the no higher even We’re business seeing and downside over it several Drive. the as impact this next customer and on years bridges like concentration to potential the we’re this transformative confident scales now,

this focused on fully over we’re Even after path year, our for the to and volatility volume clear will which diversification, and reduction, regional growth we still product time. SuperVision expect reduce

XXX the and As far during as first will the diversification course launched the – the ramp year. second quarter over XXX of up Zeekr vehicle,

have more of second in brands recently announced We launching X, will half first half vehicles in the China XXXX. the in other and the Polestar includes launch XXXX QX XXXX. globally which three from This early and in of Geely-related

SuperVision year. Finally, Zeekr the this launched will XXXX enter later first XXX, vehicle in November, that Europe

XXXX simply a more X Specifically bit another years. more first be launched with result level on on will that sell with in SuperVision. this to is a the the three great from balance traction quickly. of of business two beyond. important And will major really in system we compelling plan win regions, the equipped two we at at further one to moves is vehicle to the only a other internal as conquest win this plus Polestar than all main Polestar as three have OEM end than which This used look finally, about vehicles vehicles expect OEM. car a By and they two developed electric the the road feel customer their is we of in our first Overall, processor competitors. XXXX SuperVision

more to over in it now details. through outlook results I to Anat the and turn go

for the Amnon, call and joining Thank thanks everyone. you,

to is please is numbers in non-GAAP of which XXXX. in Mobileye’s measurement. to will begin, all primary aware my related non-GAAP intangible I The Intel’s Before comments Mobileye that be mainly assets, exclusion amortization of on refer acquisition profitability

stock-based We exclude compensation. also

percentage the last we year-over-year Starting as noted Revenue Gross through the expected. XX% increase EyeQ of that through in without are beginning expected XXXX. versus The any to modestly as EyeQ this were This gross with pass margin. same, SuperVision dilutes cost QX. but per took volume at up and place on of was unit our to that QX QX Tier-X the chip reduction quarter. related here increase passing margin. keeps pricing margins with cost both dynamic is than the is profit we better the customers The the

Operating for year. expectations for growth with the XX% in line approximately our XX% expenses were full up year-over-year

is report. capital in EyeQ chain this flow, with chips, during versus the view which nothing the with should be our year roughly down inventory our In was draw terms quarter to to of CapEx build of cash that unusual similar consistent desire did rebuild were the crisis. there that And We XXXX. buffer expenditures was to consistent some supply

Turning to XXXX guidance.

In terms are midpoint our the we expectations volume the range revenue, at of low same, tightened IT on bit and high the the but have related and a end.

North you volumes probably worse aware, general than bit in and been As in America expected but Europe, than a China. all auto expected better have are

business for the region. by balanced – consistent this we expect very is EyeQ core where Our with diverse outlook and what it to be is with year. Therefore,

points to very points focus about our believe X% production ADAS global growth four only adoption supported reasonable We by still and of are assumptions. growth five

Based out of have on Tier-Xs, half the volumes the cadence. indications QX into the seen of terms second the In year. and from latest quarterly of some of based movements we

expect QX. We be flat to up volumes versus EyeQ modestly to QX

the Regarding is and SuperVision, operating annual XXXX we of I’m as lower reducing driver guidance. noted, volumes, the revenue are income which

with compared QX SuperVision consistent that was due and additional with a from headwinds that purchase Zeekr, that have EV run customer, our dynamics. significant were of from rates, reducing with the Our with original forecast market number run main reductions volumes that to But in the guidance level was to the plus of earlier. led to launches volumes mentioned based view the consistent orders Amnon in China to including on had expectations conservative market rate volume we’re a QX current we

cadence, than volumes in were terms system. inventory which left In have lower sellout somewhat SuperVision some in of QX, the shipment,

are assuming we lower QX. QX versus So, volume in

Second for year and Mobileye chain this of customers all with supply SuperVision forecast. the behind two-thirds aligned half is full volume our the expectations about

couple additional on points A guidance.

down up in than if see XXXX than SuperVision lower volumes more originally versus be average increase modest the to expected system expected. SuperVision sequentially. make from revenue in modest than will EyeQ sequentially QX price expect lower offset volumes But growth XXXX. we QX, more For We slightly the still

XXXX. We are still expenses are in assuming about up XX% year-over-year operating

sequentially of fairly over QX expect and QX but the for the the modest QX. larger uptick with year, course for We to increases OpEx in to be grow

growth with meaningful up elevated is and to ramp productization many expenses, our investments prepare of year happening generation this R&D next products. for

finally, We several the generation seventh lidar samples component. in and EyeQ, and facilities integration world around FMCW SuperVision are growth. to sixth and And radar and launch areas, support teams, and image the of headcount investing of Chauffeur pre-production many

believe will advanced closer XXXX. growth to if us our portion the of continue become products a continues to that historical growth operating leverage substantial generating revenue. in enable OpEx begin of should to come down business meaningful XX% and levels more to grow That We core

take Thank will And now you. your we questions.

you. Thank

our ISI. a McNally Chris from session. conducting comes question Everscore be now will We with question-and-answer first Instructions] [Operator And

Thanks so much, team.

the at So jump in of through the just pass customer and on you're schedule. what want happened now mercy SuperVision to and

had that they on, production they component of far quick a have shortages, that to schedule can out, we I the of XX,XXX just figure really half two. this a I XXX,XXX bit to our So the calcs, is QX XXX,XXX. And know, been and weak talking whether meaning since year, just majority for are I or wanted you it about the you know looks like reducing were add year to was thus given full that it try XXX,XXX SuperVision light of second year, what think because down, review looking from maybe the at to is little sales schedule the the sales Zeekr that, one number don't

issues, also there the expecting, meaning, that's And second bigger the sales they this in is component wasn't that's reduce but to a the half. charges, a production that second ECU that potential were also half And problem. brought going the for ramp up,

purely through So if can about also whether second in half? a if there's ramp it's you sell or issue just talk

Chris. Hello

sales. purely it's Now

has end QX Although, purchase XXXX. produced expected, they reissue of we received, the car at XX,XXX. a number shipped we than order, the of what less. a in happened received XX,XXX. run QX we units of was is of We compliant But rate terms purchase SuperVision in And a with expected the XXXX, order the so which we of higher shipped we production,

obligation purchase optimistic them reissue cause that very Chinese material to to order the our it reflect issued looked and and then it market in change significantly lower in they purchase order So and our a then guidance. therefore, and the to

any weeks are that coming volatile I rate, to would back past of run run we make guidance but is substantial the few say run rate, it's the QX look that the there if indications rate change too to at the upwards.

next conservative in to sticking the upside we're how the change we few there wait but market reacts and guidance and to is the to Chinese So some months. it, see need

Chris, thing. one just clarify to

was close reduction the to starting very Your was higher. the the view point of numbers, but

volumes last would If double year you remember, we around said that from than year. XX,XXX this we more

there of higher starting point. a was a bit So little

clarify to Just wanted that.

et you the end Perfect. obviously rest the one, into because pretty has talk towards focused obviously the of just I mostly capacity about launching cetera. that the benign XDX XXXX still right about but about onwards, year. be thinking Because year year, the Zeekr the lot It but think, the side It's the going because of were the XXXX? for obviously actual Do into feel are think launching company, the from products then, shortage, numbers makes the good trajectory you end you think of that to somewhat so now. that of sense. volumes trajectory more the and significantly a I pretty obviously new ECU ramps for And the on cadence we about we're all Zeekr XXXX. Can can multiple

talking we're It's the talking on about additional track. OEMs we're XXX, Group. the about Geely X, there's So, Polestar Zeekr all in

no for XXXX change to there's So on reason new guidance those platforms.

there as indications as comes, still rate. So to guidance. that run stick back long are the Zeekr said as that before, to are XXXX I the to comes rate, run QX back XXX which I coming Zeekr

working SuperVision just could that have nomination sneak point, you upside Okay, still If this you the see is talk or XXXX? German that and XXXX production whether on OEM to Or is for in premium potentially about still that's actually Chauffeur, that volumes was that the so I win year. release, would to that in getting you're SuperVision that on seventh thought talk great. unclear it full one some Thanks the about at The coming the SuperVision be is – XXXX SuperVision much. launch? nice

German, really XXXX the imminent. received purchase going EU XXXX, volumes. say the And it's formal would It's affect didn't really in and down – NREs formalities. to nomination is the imminent. quarter. of not said We be SOP for really serious is development We we it's first orders This already it's so to it

not Yes. program. And said a that that's XXXX change Chris. we've from, always for Thanks,

please. Thank question, you. Next

Luke question next comes with Our Junk from Baird.

Thanks for questions. the Good taking morning.

costs, revenue line understand bottom impacts First want gross relates change guidance. and R&D considerations related mainly mix just if question, it launch to in to Thinking the any I the as or of impacts, supervision the of terms margin, in there's similar?

we in a is SuperVision mix, because that margin, had but this around our so things. the our OpEx, two previous So higher so savings margin regarding is is guidance, margin maintained the fact material. One of operating and also we the not bit some the that is gross the lowering

you the how the And ADAS? press track just discuss terms vehicle cloud of enhanced that. release is of engineering, ADAS original continue platforms in Thank the additional of cloud plan, the remarks scalability ramping And beyond can do that demand you quickly Should logistical in that? great. the mentioned second, two expanded? enhanced can considerations with to the the Okay, being to dynamics then well first higher the customers and you and particularly you requirements, your technology as prepared for

immediate. cloud It's is all scalability ADAS cloud-based. enhanced of REM It's software. basically the or almost It's

that throughout today revenue have in two this customers This and them the this phases. from potential Two is about from four customers time billion are This $X why are we're of We that revenue first we of north is those REM. big the mentioned launch of material. decade. mentioning

this So our from perspective. material is

immediate, logistics. So scalability of no issue REM is there's of

work is launch has, follow the specific timed our that one Luke, the right. to targeted is on that with programs up way system is the vehicle that the OEM cadence thing typically Just is a

the vehicle out, and another and coming spreads gets cloud it expand to to it system, cadence. a on So, decided vehicle another customers the new product the enhanced have vehicles. then more based is ADAS ADAS What's vehicle here to new happening

program or the or just They've here, three six the to So, that you other a get or two technology. plan year vehicles vehicles three as numbers would would up added maybe I'm year well. making launch maybe or over have two period seven

here. that's what's happening So really

leave there. that. for Okay, I'll it great. Thank you

Thank Luke. you,

please. question, Next

from with Our next question comes Barclays. Dan Levy

Hi. to you. Thank Good afternoon you.

quarterly start, come in First it is sources model talked volatility might a about sounds given OEM, modeling model there the you bit what's least wanted in western for to to for be, automaker just go-forward be in for at like of say to timing this know to that little years. the win more concentration might and It a results? the limited couple the I be more guess, we that about be have you a think another a the just as to XXXX. the so foreseeable wait less assessment? SuperVision, fair that some mean differently, said diversified future, it to different for the I maybe Is volatility? still European there fair I

I volatile There think volatility. is hundreds volatile, XXXX the of car should business, different which and of be compared XX over our OEMs normal better in EyeQ to models. still terms be more

things with car car So will there. one we had brands have we balanced that out six to so far. XXXX, to different compared brand close

only So but bit only ease X is this XXXX – additional It's we'll the OEMs car only not have market. not the EU launching. even global. better then Polestar be China, should should up maker. It's because not It'll OEMs, volatility. of Chinese Western be global a

additional in of are global OEMs. We stages OEMs, the final

the will our XXXX from at volatility So but I normal a even think EyeQ perspective, volatility of business. better be still not

terms out would things of taper in think XXXX in I volatility.

to needs be And that you or are remind assumption models take there just those models on have, you made? the on fit is standard that that you can us rate this, a

car I standard SuperVision. are think also others comes XXX Zeekr And So standard think fit. also Zeekr fit. X XXX is fit. produced being with Every fit, Polestar – the also is I XXX standard is the standard

think having I launches fit. we standard XXXX, the so all far, XXXX, are all

that the Yes, been it's forever, so may not that's right. sold. but way, stay every brand, far way With

Thank on hardware you. component component, and in are of which then know up, domain versus on produce the Are software provide but that would a still part discussions to ASP value a the there's ASPs. richer that's And of margins bit have I Maybe and full an can get Okay. software-only automakers just the of software/hardware. uptake a combined just proposition, how elevated update controller you you with included as a maybe SuperVision follow some with you us these more have where seeing your offerings? solutions,

We providing call it. is a to are All means with the margins It's software-only there so very, hardware you the very which EyeQ that are OEM. we opportunities driven far, small. the the agnostic it something that software that That and ECU, on the gave examples the what pursuing, of not because really to are material comes we are is we by the number functions additional are us. just

we agnostic really it. to So are

be with software-only revenue, will of higher there opportunities So, so lower course. the margins,

Understood. Thank you.

you, Thank Dan.

Next question, please.

Emmanuel next with Deutsche question comes from Bank. Rosner Our

much. you so Thank Hi.

just risk guidance. a this for currently First, so outlook of and can the volatility SuperVision this what's perhaps better unchanged year, just or for and sort could what's we a I final basically ongoing hoping was point in on year if the get you like next assessment put of embedded

it easy of ground, unchanged for and for just like competitive able just of happening essentially sort So do in on. sort a And like like is prices sort XXXX on like cutting to volume we terms the you at are essentially, softening is what so XXXX? of of this on like pressure versus a little maybe bit point feel what one of the market like the of quantify you extent and the sort assumption, what's

We during the of we're not through addressed go I on forecast forecast. of going kind the and think CES provided cadence already our views Amnon a to XXXX.

we think So, like those any of not said, changing I we’re forecasts.

to Assuming expectations been seen for year we, rate get question? us have your prudent What things reduce was that to kind look the volumes was this good. so Zeekr of back where to run XXX it can far. But second QX

China. EV the general in market about in It’s

asking about far environment the so year? so what EV in – mean, I been China, the in market what’s general are Yes, you this

share you’re it curious demand what I’m around Is some – versus dynamic from Yes, pressuring you do of your does to just sort which customers? have the pressure? seem are extent color the to of getting like schedule like EV like, dynamics, broader it market

yes. Yes, Yes.

I understand. So,

really headlines China I So think were factories the from is difficult is various so definitely, always wholesale dealers, you can production by ultimately shipments out, it’s to so you’re get. data what consumers. so most hard And because get wholesale, that’s levels actually or purchased data, many what usually how getting see you I mean, is, figure matters data. cars the to And of that’s data, – is in to

to look during sequentially lost market it were QX, look if QX, bit numbers were So, but from dealers what much. consumers, share a But sell-out the more not XX% the looked at sequentially, better, sell-in headline X%. to down don’t down what EV’s record those you in was China, if and be between EVs see you widened market the and is at to little overall levels QX. versus gap in you than to QX in that

well We subsidies known dropped were that reduced. early I significantly in it’s QX. that had major EV prices some the player think

that’s that, weakness, being improved in that economic is has that very and to further since in really somewhat to volumes attribute weak by the market April. looked their is Zeekr thing told we This what The a March flow in general be lot improving what In retail good conditions order we’re improved QX. consistent mid-March.

to effective and sell-out be but were saw us for encouraged reduce more to by getting better, that, to during the expectations the was where seem QX. it we things So,

then Can point second unit expected of And I economics you. us for I ADAS? color. you just the guess I progression the put and around a And revenues enhanced – topic. cloud remind for finer just pricing Great. appreciate the guess

get The EyeQ. cloud on ADAS enhanced, for car the ASP we kind the doubled the that of

the enhanced per software. $X the script as mentioned we of up with cloud in few revenue we And to car, billion it’s earnings decade. customers of north So dollars are per of the year end projected till on two this a tens

revenue. have think it some get the time. pays we long for whether it, And it But at make the vehicle. to the pays end user customer per based period some that that’s licensing you unit least – in on cases you So they the on assumptions whether how doubles of a on revenue long for for the

So represent twice revenue in as $X the for would get – the just upfront just billion representing the licensing as result that’s is we much EyeQ. for cost the licensing revenue.

Perfect. Thank you so much.

Emmanuel. Thanks,

please. Next question,

Michaeli Our next it from question comes Itay with Citi.

everybody. Great, thank you. Hi,

Just two me. questions for SuperVision

First, on like the year, some on look QX getting of the clarify for for the and are Just about your trying for software the effectively year? outlook purchase clarify so to should just Or of to latest forecast. the – just year? from you production the incremental are rest what rest you extrapolating customer the the schedules visibility demand orders exactly the

got reissuing on based it’s purchase based orders the think not we is Zeekr. change forecast, I on the from guidance

the we So is which of When rate look past that indications in rate getting the very at run weeks, of purchase to this good back there purely few a QX, we’re was orders. run volume. reissuing the

the what things reissue number we higher road. than it’s hope orders now two, prudent be we need down of better ago. a the weeks a prudent. to feel for upside three so optimistic they again, There we are and looked guiding. look more than And slightly be And was But purchase to to

SuperVision, was the us That’s up OTA I updates ODD just what you very some a on kind were this follow looks we on those? stand on update then to year. can you that know Maybe expecting implement helpful. there just And of where like?

insurance OTA there’s they out This NZP. fleet going There been and OTA highest another fleet be ranking and activated in the are So, the vehicles. receive suite we navigate Zeekr. meantime, to Automotive the be that’s OTAs be XXX,XXX more the entire of software by recorded the tested to with driving going pilot, In of to the they’re call highest Index than IHS. has has continuous with agencies there’s assist In is June, on American the full another Chinese with going capability in equivalent to received have ever scores the existing Safety with where which the hundred Insurance by which score, major to week few NZP.

So things soon and NOP entire including launched being the lead look everything, right driving with customers. for and the vehicles the be deployed [ph], full fleet, good quality activated of including of would assist in terms few being of REM that now is here really hundreds

That’s Perfect. you. Thank helpful. very

Itay. Thanks,

question, Next Priscilla, please.

with Our from next TD question Joshua Cowen. comes Buchalter

Hey guys, keep term near I clarify. for SuperVision my on sorry want down question. the drilling I’m but did to thanks taking to issue,

was it that shipped volumes So it working volume sounds that year. be into before that year. to you. the first would equal constrained that I like all It’s the math year want the material a last of cutting supposed to sell SuperVision just in precise, was in demand? essentially with this supply Thank given the you’re essentially the amount this already Zeekr early there by we low just half, XXX were to surprising for be due cut outlook be is this

think I mean, to can I that, this one. take so try Yes, I

that in purchase the continue launches from So, about had kind forecast we the from purchase basis think received that which a order order I customer we rate volume, was, the the customer, – run of the this rates the came QX assumed line, than market worse of it in run on yes, the a of coming down in And XXX,XXX in additional or the of vehicles QX. year. then would by XX% through bit rate the half second China rest contemplated that more

that kind was right positive. now. been that signs which QX would rate, the encouraging the said, towards be assuming saw Amnon run of we there’s moving to reduced in we’re rate based the order that it’s back As purchase selling level QX that on But

But new contemplate, worse track. still launch market conditions did are China, I in think on that the it So which vehicles, are than expected.

the really selling they So, bottom line. just that’s what was to the matter rate supply constraint, do really the it was anything of were vehicles have with didn’t that a it and

guess Okay. XXX still The of the was the on I launches of are question. crux track. non-Zeekr the that

right. That’s

Okay.

they’re. Yes,

called my about, And essentially the you – the the X, three? you why that follow SuperVision on versus Thank went talk four then Can the Mobileye vehicles prior versus guess out they competitor. for Polestar why with you. a a generation to I up, competitor with switched solution on this the in the and differences

it’s be considerably. itself but has I role think could proving shifted they Well, And switched. the to why one speculate technology I from can reason this SuperVision to speculate, not my they another, why been

Zeekr, to primarily connected Geely-related also they’re of the Polestar out doing lower of was the kind in and that XXXX, kind it XXXX see price what to three. that right than and point launched Zeekr the the I’d late is fit Polestar with a significantly and this early was X vehicle that they’re to X. cadence also, think I and in

it of performance So the as points SuperVision. the to affordability as well

Got it. you. Thank

Thanks, Josh.

next Antoine question with comes Our from Street New Research. Chkaiban

lot points would very to estimated meeting was had you. enhanced forecasting original for I, upside in install you I tell Thank our on Anything can units that the right the be plan. regarding announcements does Yes. based business I’d us ballpark base. around in Hi, to XXXX. I’m there cloud the momentum doubling REM taking number? questions. compared be the useful? and follow that could that provided today’s additional mean thanks whether your that And about on XXX,XXX that you to I you’re XXXX comment data number your of a had like in up on in

per any of for cloud disclosed haven’t so yes, forecast We enhanced really year. sort ADAS,

they’re seeing can’t question. answer for. to plan to we is, can So it are say the clearly accounted original platforms than All because value add customers the more we really choosing there, that

Okay. you expect software comment, much. of the maybe maybe Thank that recurring kind into the around you What represent a as of up baked double that licensing on very follow And assumption? is revenues your upfront will rate approximately EyeQ. take price

that of talking cloud enhanced we’re doubling the adopt EyeQ about No, the per price ADAS. car

assumes about gave – receive the of what our figure north we take rates one from So the billion that of customers. we that $X

first the pay three average three assume on years, it’s for because this basis the current annual of for let’s then to to – and we an customers the assuming end has And four the say. are years the technology. anyone From we’re continue and also, some an who has start customer paying. years customers, after the of requires user to covered

continue of that year into the kind that’s to licensing, $X the we billion. assuming weighted a what we’re goes would average get So four

Perfect. Thank you.

Thanks, Antoine.

Next question.

Our next Chatterjee Samik with question comes from JPMorgan.

terms coming can Hi through but the from sure orders of color the the any business, the full piece with thanks seen, is or and the we mentioned America but there, mentioned in sort you year was for sort would the Thank the of follow better, market in North XQ of a ones. dynamics think guide, China dynamics into particularly all the you of for. if meant dynamics we you. most back of some China, quick have the aside, maybe it reduction my because But start movement I taking talk questions. that seen excluding weakness upside or which also in the from of China aside half, can seems I just Couple that business like what the excluding China, almost if not geography have production drivers, underlying take if up? weakness, of you you’re we’ve business what are seeing Maybe which for

change. don’t Rest of the see any world we

in January. to our guidance commitment in trying to The that a about out contact back is and same unchanged yearly from continuous Tier-Xs customers. But according we the the balance quarter-to-quarter. with We’re gave

Okay.

great. Okay,

into a where SuperVision, some model be you digging are be in or as would sort where faster after solution? I the new consumer in here. quickly? an standard pays business the in Like wins discussed just of you. what of have then transition time, as the of a of is mean pipeline, And SuperVision faster the adopting Thank OEMs for of it you your pace just fits sold to mind, that and would to sort with SuperVision get probably option? these to hurdle is SuperVision as adopted sort still that Now, OEMs a at on all of being wins the period

I standard it’s Right it’s standard the But serious is But vehicle, far not again it’s adopt likely kind level focusing now, more standard basically fit. the The are and in whether on not SuperVision. fit. could be of in where or opportunities discussing opportunities premium we all fit. on not higher There to of optional of a mandatory. depends that we be optional the And number fit. vehicle. so SuperVision It the the are going the the of premium to the growth engagement we have level which we’re would that standard be is see to say OEMs all

Thank you.

Samik. you, Thank

question next Delaney comes Goldman Our Mark with Sachs. from

questions. for would U.S. do this the for is and do What OEM completed SuperVision to year. nomination production you happen on serious nomination to When and very press release begin? taking comments Thank potential think the half with think have be may the you a that of much second Yes. successful? The for based you

concept significant are with phase going of that testing well. we engagement are serious No, in a a very

will the and So conclude year. optimistic that half we in of it second hopeful towards are a the nomination

then SOP the like XXXX. is And

XXXX. is SOP the XXXX. And Yes, late

Okay. more happening That’s correctly then you referring little due Is issues to? Is what half. that context for to I timing that shipments schedules? on you’ve second that helpful. XQ more China global be the Thanks. be helpful. will the might been Any there? on EyeQ Thanks. commented, some some have Could that topic more been heard and of also into if production pushing the a elaborate about bit And may you a

Yes.

inventory is So level their information this the to versus do something And it’s that considerations have. and we probably about demand.

second very And of so year. half significant volume. the the to they It’s of kind not of the shifted part

is or two to quarters minimal. a than quite lumping in reach commitments in the quarterly in Xs trying our their change, basis, one are commitment we of we into our, on quarter-to-quarter But it good not rather a Tier successfully point the from which is very we have a to from towards really But end basis. discussions and And second Yes. year. the the balance quarter managed yearly

Thank you.

Vijay question from Rakesh next comes Our with Mizuho.

Yes. Hi, Professor Amnon and Anat.

I Just any fit, on is you getting impact seeing thoughts Polestar what you know competition? are mentioned guys – horizon like to thoughts any on your on but autonomous are the in those on of from two side? Like, are or Or on the are you level still Zeekr and there can that? perception SuperVision the standard they any side, more talk

where and a the see definition SuperVision making think to come definition to level talk about an admitting a others maps. is I to than build horizon more map time the crowd value wall are Competition on robotics haven’t of of the competition. high hit maps. point as But a with to seen are there. hard the They of having starting they the they’re high in map level the sourced, rather the advantage a solutions two. list I that ability there terms

a we failures in So that strengthens perception with in use has of OEMs high map that and company this to our position of very competitive the in get a the our meantime working pursuing OEMs from a I now the the between that only like systems. to making are years efficient been allows believe we’re get crowd at I looking response opportunities that position. good sourced us data create for data

half? you the look saw think spread see guess? ramp, of expect you when as you at I in XXXX, the mentioned Thanks. at but the six out, then at to And you maintain it. you kind guide, that start OEMs or Or I look OEMs SuperVision four XXXX the five additional units, you OEMs, XXX,XXX do first how do Got I in

intact. to XXXX rate. goes before, for of said good year in their I assuming – Our run back Zeekr we to the guidance back see as to their signs is that last seems XXXX XXX are run and rate, QX that the coming fact, for It’s guidance QX

SuperVision, point XXXX what feel Chinese the this for at time, confident the to we see in wait but we in need guidance and in happens So market.

the are launches set. customer set. customer launches And The are Yes.

we third a vehicle brand QX have Then of car quarter, then in a So, another XXXX. launching brand Geely-related we this first have Geely have Polestar quarter we the year. a second in in the launching X

really outlook. what’s that’s now, right supports and the in what place So that’s

a Got lot. Thanks it.

Vjay. Thanks,

Our Morgan Stanley. comes with from next question Adam Jonas

Hey, everybody.

think our any Just can on confirm all I just would XXX% for architectures you new would folks to basically call given, platform. it first platforms? confirm ICE EV coincide and that. software that be SuperVision be SuperVision that on assumption question, is wanted would I with architectures this that not be

far all why Yes. no far That are an cannot there’s it’s ICE platform. the we so EVs. reason so be opportunities so on [ph] EV it platforms, have on But

feel OEMs the we But Western we haven’t all booking. discussed good about about that, at

I just understood. follow there’s And up. a

numbers, call Tesla’s think and are then just and a what the course, to change what in wants in the which referring and you arbiter right other and car I the you auto in that on EV the Europe but China Thanks. price to of on things spread to kind OEM the cuts this I’m tell now, seeing into Sometimes what market? analysts could And the doesn’t thinking start spread China based production is specifically used regions. for sign not different business maybe willingness goes reasons. you’ve I run in of any of can guess what would what’s, schedule, maybe on seeing to loss, even a ultimately knows a the in customers to loss, for who you’re beyond addressed gives U.S. to, cash ways competitive what’s confidence that, your that going consumer this

lining the from approach, that FSD Tesla autopilot. money all they silver because approach the I to Tesla says make see a from in want their

value only this So shows the that, of increasing. SuperVision is proposition

the So, only push more to if argument, the you’ll the it’s, not the able from, would sophistication car, flip make SuperVision it that money the you can money brands of the make SuperVision. to adopt car fact you’ll from be

right interest that sure pipeline the going now revenue not strategy our goes or Tesla, I’m goes our against against So, forward.

Thanks. Amnon. Okay,

Adam. Thanks,

Our comes from question Tom Narayan next Capital RBC with Markets.

Yes, taking question. the Hi. for thanks

more on guidance. Sorry, I SuperVision the one got

in Polestar in Chinese XXXX, in the said you just you think that to Dan, know other I the be the I So is not China. market them X through but went going ones

relative on how is softness You the how ones could other better of or you those weeks, weeks in mentioned seeing? that and you’re recent Zeekr they kind to have tracking recent been faring have comment been

is which just right SuperVision other the which that ramp now, shipping only XXX is vehicle on mode. one in Yes, is really there’s

launched, it sometime think in February. I in

price vehicle of big So, better but that’s as a volumes seller, Zeekr we’ve that XXX. kind seen of that progressively won’t a there, be higher a

ones the last like. these can in as SuperVision, vehicle deeply, it’s I numbers, QX. mean came imagine, board not that’s you I consistent April have I and what volumes, month in yes, pretty thought the sequential started So uptick saw an you’ve to over see across think, looking models significant to that reductions in pretty but that into what then And we

happens. what see will we So,

We’re assuming that not signs. really continues, but encouraging

if lever something would And would pricing? play SuperVision in cutting deterioration not that China happen? market you there I in Okay. kind would that that, mean, that is Or a of that XXXX, would is is further a

cash think, value price the I of for Yes, increase SuperVision as generation in would a work. selling this car only

important pricing no to in there’s car. that most reduce value of the to reason a of So proposition element be something the going is

Yes. with, to do the We our don’t think the that has weakness anything of technology. pricing

cars through incremental was they’re expand would, over that that lead that we on. think incremental, In would demand that that as be Amnon to assume demand for talking like updates, the kind about, fact, would I of that, there features for the the

as be would that well. encouraging So

my Okay. the the last OEM U.S. for nomination. XXXX, European is, we OEM And SOP have then one

benefit I think you’re the SuperVision of scope with understanding folks the would from on OEMs. conversations other having

of, breadth sense could a know say to, like of of the of folks to I having. talking you’re give many scope how conversations just you maybe kind the that you’re Just don’t if a

we’re We in insurance Japan. in engagement

engagement EU more We engagements. are insurance in India and

throughout XXXX there’ll serious that believe nominations. I So, more the be

Thanks, to please. question, our Tom and Priscilla. This last is be going

Patil Our last question with comes from Wolfe Research. Shreyas

your as the a customers. for XXXX, with at you the, from And XXXX just, to back thinking have as as the with we’re looking launches enhanced Toyota. exit pivot couple much important mentioned of question. some including look you business, aid so could into additional XXXX, as about wins cloud thanks like coming it we’re I Hey, does maybe base I then taking specifically my of the thought

Just that we think incremental those uplift next year wondering that, if be us into wins. Thanks. looking about could the, you can at help from the

we disclosed. Yes, haven’t

that around, do there’s the, a, the think the is, think question challenging. we I is XXXX I is economically see, climate

volumes. and important to adoption every, of rates the close as uncertain think ADAS ramp, XXXX to as take enhanced look year at as do really, Tier-Xs an continues are, want We climb. I cloud ADAS a see, to continue

release EU ADAS. cloud-based we of the to protocols services, that, cloud the for include enhanced mentioned press the in in are which in the spot right safety is waiting safety I think, starting some sweet

the of that these we’re into encouraged should the and business, So, models, really XXXX, about future course, more diversification benefits. all of be SuperVision more

EyeQ a system. the development number kit inroads? the the helping terms quickly on, mention, just you conversations your help to software I’m you is then the with, extent of us And what in can role conversations OEMs making if maybe are we Great. of with Okay. having of and thinking really know larger in OEMs, to regards and number to with SuperVision ADAS you’re Obviously of a that automakers looking take

now enabler five It’s discussion Two with about three. closed a box other engaged black for EyeQ an them are different solution. is We the kit with OEMs. of

Okay. Great.

Shreyas. you, Thank

Thank you.

Okay. earnings our Thanks for joining call. everyone

to We you Thanks much. quarter. will next talk very

teleconference. today’s concludes This

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