Mobileye Global (MBLY) 26 Oct 232023 Q3 Earnings call transcript

Greetings, and welcome to the Mobileye Q3 '23 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Dan Galves, Chief Communications Officer. Thank you, sir.

You may begin.

everyone, Call to September for hello, XXXX Third XX, and Conference Earnings the Kyle, and Mobileye's welcome Quarter XXXX. Thanks, period ending on we that business note today's contains statements Please discussion environment see currently based as it. forward-looking the Such statements and risks involve uncertainties. press accompanying cause on could which includes results to differ the the to additional factors specific refer release, Please that actual information materially.

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

the Thanks, Joining Professor call Shashua, I'll on are us call Moran Amnon the Mobileye's today and President; Shemesh, turn over Amnon. CEO and and to Mobileye's CFO. now

thanks Dan. everyone, and earnings our for Thanks, call. Hello, joining

is our Before current few I'll The about twofold. now effects business on a Mobileye Israel make at commentary, going are war. the through comments Israel. situation in

First, employees roughly in to reserves, with currently longer teammates the compensate. IDF serving hours X% gladly working our their are of

more material Israel. in home. [ Second, production on facilities ] we Israel work our allowing not any does in customers on flexibility Mobileye or impact are have to no now see I operations.

Furthermore, test, there board. or business no has our our of meet perform result as objectives a activities ability to effect operations the on and been develop material

Okay.

the net and Turning line more was XX% a grew XX%. high year-over-year XX%. Moran another a grew to level, Adjusted grew income adjusted excellent will results top QX. detail, our we basis, QX in operating provide but at income quarter. On

maintain during chip basis our strategic inventory which Operating used we chips, has impacted rebuild steady the on to of cash been supply flow a to by crisis. year-to-date EyeQ investments had

Operating flow very also far grown XXXX. strongly now in largely investment If you has that adjust inventory, cash in so complete. which for is

like the driven by factors Another financial versus related and here planned highlight cost some consensus The is some was initiatives. efficiency beat to to costs, of macro primarily was currency, related XX% adjusted which third margin. operating quarter

product to our Turning portfolio.

XXXX, by us in year. put have future XXXX a far was which wins $X.X so on Our in CES bookings the more that billion of design record track far at January. from generated revenue outperform in on to details We'll we

having everything XXXX, diverse ADAS, of to Drive, time amount basic consistent our to portfolio. the supports Chauffeur, ADAS tremendous to early platform laid several out are ago. EyeQX-based success and EyeQX based with from The to launch SuperVision, product excited We a program the first we're we line in years Mobilize with

programs. of focus, add would While cloud-enhanced and SuperVision continue ADAS a major basic we that continues to note high very I be number to a

prices -- of expansion in improving are years, enhanced On these deals would data times typically agreement. This contribute the than the sharing coming data the sources. that OEMs cloud significantly in this and will the at REM-mapping include a refresh very and side, result reflect REM higher diversifying current math REM, ADAS, data meaningful

plans to addition, of In system is week, limited global chip, supports OEM, vehicles. this systems a equip design customer we win configuration that with highways. light The with cameras to reduced from a high hands-free added single a based a SuperVision high-volume EyeQX our large first on the on

Chauffeur year SuperVision the near-term relatively XXXX vehicles. a We in start-up late FAW in SuperVision that wins a production minute. with of and also on with had important as later, what of the a some More We Chauffeur for customer is QX. and vehicles, many date added design first first

imaging progressing towards radar. Chauffeur scale SOP various with are key XXXX. We and Polestar on side, components also our in Mobility program compute a software stack, late engine including EyeQX schedule, Mobility-as-a-Service Drive, the added The high-based the for the

to for as Volkswagen partner, our Hamburg vehicles the Hollow making also technology support their ], progress. shuttles this well our by strong goal XXXX. vehicle The transportation Vehicles, deploy demonstrated the Hamburg XX,XXX to on to to Transport. autonomous strategic in of with event improve as put roads Our Recently, are technology platform German indicated the up in efficiency, of partners Minister Commercial [

important highway update in to was the to late of SuperVision providing development the QX, proof an OEM But point XXX,XXX in owners delivery from over-the-air August, This was of Navigate our to what on I software, more vehicle front B. navigation critical was Zeekr extremely with hands-off point Autopilot believe point feature, most in than A customers. an

a Feedback of test eye thing outperformed fraction a has sensor content an one different to on the technology compute despite China competition, to product XXX,XXX media demonstrate hands-free with consistently outstanding, It's is consumers. that been completely power. of significantly noting in level vehicles, to fleet system deliver strong of and the on a it validation system Zeekr lower

Out buy of of X,XXX the than beta the before offering. users the Zeekr system said XX% system plan a to the use of months rollout, they that the XX-month trial couple more period is who them broad after

software been Mobileye in performance, over more more this so. that's cost for that China from and for pace develop the like the year time desire forces the and to driving. a pressure more industry competitive higher offer to in advantages opposed growth update a all to demand creates OEMs that demand This to This The a amplified enough developing noticed flywheel in on as hands-free of higher also emphasize products, systems, cost factors the behind. which among systems emphasis innovation time-to-market This generate for and performance. in-source. creates has clear among OEMs not significant but pressure fall can't I pragmatic over-the-air or higher market, dynamic to and of value to last take

competitive in receiving in serve XXX,XXX software and and clarified our to accolades ability component than ] deliver [ and most many market, consumer the more vehicles the as final the fly world's room. Deploying the

What is of prospects. I impact key clarity from urgency more progress FAW acceleration felt towards led mean programs. there customers by that an This an steps, next as time lines on deliverables, processes. towards win, is example, wins clear rollout with increased this the is production for reflected approval The to proof We and directly and acceleration converge to point design immediately. successful design the other of potential

While we number of news representing wins industry. moves the we in that representing had numbers been months. have rarely of stages OEMs, SuperVision number for production. more over in some XX for it. booked global go were on that XXXX, quarter, design XX% as the next we already we fast I'll the Chauffeur representing OEMs, X SuperVision put design Chauffeur That Last want, expect XX% now that design beginning either production. of automotive against X as process the would we'll advanced If or win and auto wins to we disclosed of back is X% X OEMs, with have

early-stage brands low-volume It's U.S. group broad not OEM, This any Asian start-ups X and OEMs. X European OEMs, does X geographically. and include it's OEMs X or Chinese

that the OEMs have XX% interest from meaningful auto wave We're we production. represent also received that incremental an very next encouraged of of global

the that advanced point work While initial call would the looks promising. not stages, these very we at

that with It's consumers is this turning Moran, team huge technology, road. on is with not in market knowledgeable demand ADAS it words to on hands-free and it. our an to close moving I the speed say key Premium putting about customers. to to over September extremely The systems FAW. a Before I'll about executive point China marketing is meet several traveled towards the with in few and at media exaggeration selling eyes China light a materials.

I sold for much is battle them. and now. want market They in There to potential the XX%, capability on to traffic from few China, battling this so traffic in it tired of cars congestion have for XX%, the can like a of cars are SuperVision consumers own. XX% years their see

winning. we So there it's very us win important for to and are

OEMs and Of China-based. X X before, JD significant mentioned I of other FAW XX are group the automakers. Group,

opportunities with near additional We successful, the have The customers. collaboration opportunities and leading Mobileye from has This significant very also Zeekr as ] the Group. other to could ] Geely add is volume brands to as expand [ Zeekr in vehicles, in existing future. for [ well been

non-China every also ambition is very well, starting OEMs. into cadence late broad a in FAW product key from going There stand-alone which government-owned volume in factor platform highly X. brands And sell in also SuperVision. level as relationship their technology resulting other very robust us. choosing launched model all of that next It's SuperVision. and is A the this program. The vehicle the would XXXX, strategic opportunity have to area a will include a validation is front on brands by car of increase partner on JV the is time in China the a FAW automaker for

turn you for the interest your over Mobileye. in time call Moran. to I'll Thank and

Thanks, Amnon.

call, everyone. Amnon, you, thank thanks and So joining the for

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

We also exclude stock-based compensation.

QX ASPs, results. small vehicles. had EyeQ of the shipped systems some with self-driving was with up adjusted related up related customers revenue and excellent volumes XX% test Starting We operating to the to and increased revenue quarter remainder higher SuperVision Overall, XX%, year-over-year. mobility income installation that growth XX% on and with service about to an for EyeQ as initial a

extent, shipments were a expectations. was Zeekr line and primarily units lesser units quarter, which with XX,XXX Zeekr were XXX SuperVision These for in the in to XXX.

SuperVision deliveries also margin the for on Smart we higher somehow gross to ] due as initial Although [indiscernible] improved the QX, overhead in to QX, [ had compared and volume. some unit per lower One

generation further margin supply second course expect our Number catalysts domain Looking meaningful X ahead, we to into to XXXX. savings. transition we QX gross are controller of will SuperVision plan to over collaboration QX. in introducing the late one, cost the the with in controller, chain, improvement drive and in result new expect this of which in the early We begin SuperVision we

gross prices, in beginning We by an our be expected result savings net but will to the modestly QX, average and improvement QX meaningfully, the of more to selling share with in margin lowering is XXXX. customers

Number SuperVision get a of pay will the Zeekr vehicles this software After a two, free of the whether utilize mentioned, to software. an XX the year, well. consumer as Zeekr August cost this this to new through features. or trial buyer need choose period, existing end Pilot continue very Any on to Navigate December will to rollout in to incremental to Amnon owner XX-month

chooses XXXX. that lead revenue should We to consumer an SuperVision gross any keep will back half for software This of in the to meaningful software. incremental margin the boost receive of

with operating our up expected combined in led XXXX. They of lower adjusted to robust on again payroll were XX%, the course, majority operating of due and half growth, a costs meaningful than QX, expenses. X QX driver, of of in about related to operating Turning lower-than-expected is employees expenses points significant versus which lower-than-expected were and the the strong being payroll shekel. expenses, Approximately, margin This revenue the costs depreciation again our a majority us driven to being related of by Israel. for the to

QX Payroll actually compared general expenses certain QX we efficiencies slightly remainder headcount. expenditures in costs, timing were lower-than-expected The than to despite primarily achieved. over related lower the of of to higher

of was largely and consumed cash compared In rebuilding a strategic quarter terms supply continue had to a the EyeQ but our to in QX, amount XXXX in during flow, which inventory invest of crisis. XXXX we chain significant strong chips,

inventory. end As our reached of approximately strategic have of of almost X target QX, the we months of

So next for in the significantly quarters. lower used should cash be restocking few

in remains for very year-to-date, unchanged for be the income calendar that flow cash adjusted operating conversion quarter in CapEx XXXX. high. a roughly percentage of cash to with expenditures as adjusting by consumed XXXX, inventory similar were XXXX consistent should Capital year our view net our the When

the Turning to guidance.

guidance. our QX, tracking At volumes XX% ahead As are are our more than levels, to with volumes QX the be of expected guidance, EyeQ prior line to in midpoint bit we look above this level EyeQ a with due importantly, be starting record for to mix. quarterly and volume of used note, estimated a would down EyeQ ASP just point the as sequentially should XXXX I volume. not bit a implies a

QX in rate some a dynamic XXXX, XXXX, growth to the that similar when lead apply high hangover consider first full encourage year and to the We thinking a XXXX. to look you about could the that QX, to effect quarter in of in and volume at

of fine-tuning XXXX is SuperVision. to for Implied units. the full guide XX,XXX year QX the based XXXX, is Turning on us which This should units midpoint us for towards bring volumes guidance. to XXX,XXX led the April of at around approximately XXX,XXX is our in call. to of time to the the adjust XXX,XXX revenue This of end the shipment guidance modestly we forecast our low the incorporated our earnings of XXXX what

QX. was XXX from shipment the of volume XXX growth supports Continuation levels well The for [ consumer demand QX. Zeekr Smart in ] in products XXX X aligned One and and shipments to with Zeekr motor new our this, for QX to Europe, plus incremental like volume

products new QX, up EMXX, the are fifth for growth in we up and XXXX. these a As vehicle set we continued Volvo add in ramp well sequential [ ]

on volume, consistent be Based expect ] we mix QX. with [ our QX assumption margin and to for gross

We XXXX, some as at expenses XXXX we'd to XX% to program. spending full be the a project In expected on higher related in normalization operating basis. and for rate, expenses to as a SuperVision the of value grow year-over-year expect year of currency, Chauffeur assuming new expect operating relative well Israeli the ramp-up about

take now the questions. we range continue terms and for tax of XX% expect Lastly, rate, rate in year. tax Thank you, will to in we the your effective an

PD Our first comes from with be We'll Buchalter Instructions] question question-and-answer conducting [Operator Joshua now Cowen. session. a

importantly, in you can how you Israel. time believe are it's the out safe start, mentioned those that have for you hope and the provide I explicitly and would on XXth doing everyone your any whether okay Can you please scope are U.S. thing timing also OEM, -- most And OEM. the the SuperVision, is called or ramp To or confirm same the into families and -- of you model? can I details not first a

Well, wins be as would will in the we And the believe next about. in are I say play out. mentioned remaining confidence, into script, OEMs of that much percentages XX% have design will much -- we months, more those I confidence talking OEM to from X the will the next think X on things -- which a turning range months, depending clarity. in we'll I I XX%

to I the China, mentioned, just the Asia it's as really from And global really Group of spend. ] kind ago, a from Geely a global, it's global now starting U.S., a [ spread year

just -- Dan. this Josh, is

the about in that Just U.S. of The and OEM. to good last U.S. to clarify, was and the incremental well, as OEM progress quarter as was group OEM continue not we feel customer. this

Or new it can us Has you're And full are new tick for XXXX? Was that's kind And the any then vehicle is out it. at -- Got driving drivers midpoint it the changing at XXX SuperVision what it in volumes revenue. guidance of anything about the down the you you called walk that? for changed through very how is year, model? thinking the modest of a -- was the things? with

The XXX, for new the vehicle is XXX volumes XXXX of Zeekr. expansion expansion Zeekr of of the

coming out. We X have Polestar

We have coming smart #X out.

coming Volvo have EM We the XX out.

we the of in And a another China also will probability there brand Towards that of out. launch think, end certain, end I OEM have high XXXX. will XXXX, is have SAW coming the that

Citi. comes Our from next question Itay from Michaeli

X Just for questions me.

operations of wave? advanced how for wave existing of you automakers And second are can First, expressing share many just new two, the in-house have what in sort that these X+. extent on automakers interest, one, maybe to automakers Level

share production question, the expected the award, start program. SuperVision for and that on could ASPs And hoping Light you of just second just

Okay.

with I'll revenue this of we second a light. the we When X that a compared won, a And we X. are are particular we hundreds start Tier SuperVision. about Tier are dollars When X, SuperVision The So XX% Tier to in it's with the few of program revenue. question.

the brand. like just new the only in would I of highway, the high capabilities relationship. premium, basis offers high-volume beyond you but Chauffeur also allows for it any highways, The stage. very the the So It's EyeQX level roads capabilities. be roads, chip limited and SuperVision we a our And in [indiscernible] only expand X a really the to be of urban later at supply a which hand-off to still global way intermediate kind Tier very, SuperVision think

and us very So this brands, win. medium to an this have allows car segment is to a models, entry point and low important car

really I the auto to OEMs. SuperVision. mentioned, As the to starting in the have they production comparable the the for global a notice are next X And that that they system anything And SuperVision-like next years. question, your way, premium this of is XX% coming don't it's about first

in believe I eventually every years. a product offer X, coming SuperVision-like the carmaker would X that

next with UBS. question Our comes Spak Joseph from

your there's do is, But know But opportunity we're hearing trajectory about I a on wins you as first whatnot it's guess at if of does a guess solution powertrain that next-generation not features, delays date. Or ADAS to all I there program change think question agnostic. is the in I is your an know existing your maybe to China, whether I technically EVs. of on cloud-enabled some are to where add lot or more programs? sort SuperVision? pushout,

ADAS cloud-enhanced is track. a progressing The separate on

already billion we the have few We in X responsible are which have revenue decade. in $X the mentioned to until that months. more pipeline signed we X of for quarter, ready next end And the last be the

production, So terms materially It stand that's for SuperVision, are weeks months. doesn't there revenue few a that delays, a in separate of or it's here. forecast track. change if of

get And becomes towards delayed one as or -- much, much wins, a particular of kind delay. that's design to we're susceptible such program not more weakness we not don't we our rely

change with are have delay car we program, here or then have the a only there XX we really or dependent delays. when more, But OEM then Obviously, we when one on revenue should a guidance. not

the Okay. then Perfect. just a SuperVision. around OEM And commentary maybe clarification on

earlier or also, X versus year. you the that then what I First said last light of provided include XX, all, some SuperVision the quarter in you even know comparisons does to customer? And the

X CES, I at mentioned you think brands.

XX year? does of sort how earlier compared that this of sort brand that OEMs to So the comment

Okay.

separate SuperVision is include not like. track. does a SuperVision So the XX OEMs Light

working track. SuperVision a for design We are getting towards we that that, is more win and separate for business have kind of one truck.

for XX OEMs those are So SuperVision.

same OEMs. others talked All really we met XXX really OEMs. separate it's XX Zeekr brands Zeekr brands, XXX as the of are time, terms when Last the about In X and we of brands, OEM.

the ones we that So announced Polestar, was Smart.

in are group rest we Porsche the are Volvo brands Now that and all not just within separate that separate China, all of and rest revealing are I mentioned. SAW the OEMs, OEMs

clarify. to Just

one clarifier, on that. Joe, Just

same right? this to Just OEM. have X as clear, Geely X one that within But we're Group the models. brands, considering OEMs, we within plan OEM, we're considering XX super We metric, X into what be So on of considering kind continue move methodology to the OEM. we to future, metric this along we're consistent basis, be try and a with very as to update regular an we'll the

So OEM is level trying parent effectively. some parent the level the metric. parent parent -- some the have X could product -- at be to effectively There developments, but levels this be level within different consistent we're

Our with next Chris question comes McNally from Evercore.

enhanced, really entire light? Other quickly should change the of would Procon to at that And also cost the reason have plus have over Amnon, [ of push this best I change the get with But the of level. the it high-level like wanted of an continue year. light questions for than enhance, just the SuperVision would RSM the base no million like into ] hear for time be OEM echo additional increased you to SuperVision units features the light. I to just love [ SuperVision sort one What to over, I think ] seems rather would about than program is, all that Mobileye about we you X.X just something family. the

cloud cost chip. SuperVision the an the X camera, Well, no, Light X domain to light. there's EyeQX has a to cameras, controller enhanced, without SuperVision on between a with about, OEM, or between and significant by to powered feeding a front-facing

front other ability front-facing camera our to A camera, On camera. racing There's domain adjusted no right? to add controller. is a the value a cloud-enhanced hand, front-facing

low the by to front-facing you camera. we very feature cost considerably camera, just a and can front-facing So is of adding the capabilities, software value enhance the the set, which OEM, have proposition

on don't alerts a example, light lanes running to so a and against see forth For do on or you we and traffic-light the so or red lane visible providing running and allow keeping -- against forth. when red providing information breaking -- light any

SuperVision, front-facing with are Chauffeur a in difference price big, enhanced, and terms Drive. without camera, of big significant between cloud or then is the SuperVision So These cost. light, steps

I'm ] lot you're for was of was example. [ Maybe on, a ENHANCE also amount of thought a -- the I Gen on that also RADAR, on programs, these significant there X there

the be be you if So or you'd light? to adding you the to total to remove may OEM, system with multiple have RADAR, of which able the SuperVision cost

has so many the not camera that of radar. Well, have radar. It's a not the front-facing program do front-facing ADAS every

camera is of lot a So our penetration There's vision radar. no only. front-facing

light, course. X are SuperVision cameras, the them it's With cameras, parking of the of including X

come particular radars this a sometimes and not. won, with Sometimes there's program that they radar. In they front-facing we

-- the sense. only And X have that's program of when had domain Okay. why limited operational Makes design the you'd Gen the will camera.

OEMs the to getting the of RSS on works, end for do about for and of existing meaning and get for vehicles, question, time they little and levels up system higher bit over could potentially second higher the to REM forms for platforms light, leads talk SuperVision would then to low to use Just how for them a those just more on how ability you sign the scale, them SuperVision. it SuperVision to upgrade see premium

If that you you have escalation year? a of through sort just go could upsell of that that could kind that

into buys cameras. OEM -- as because cannot more light, has they Supervision upscale less cameras an if as Well, Supervision more than sensors,

other the it Normally, goes way around.

from that is to OEM front-facing models, model an some to signed low-end light. upgrade a have camera wants now and a into of a the its low-end supervision supervision has We and in model

first So supervision And -- just OEM? win -- follow supervision right? Light light is new OEM, the that up, logic, they're the Supervision in could if is I win This taking. you that downsell was the this didn't specific the supervision

new part before. OEMs of win not Light with OEM. a mentioned with It's supervision we -- is that is design it new win the a the OEM. Well, It's

answer. Perfect. Appreciate follow-up detail. I'll the

Stanley. next with Adam Morgan from Our question Jonas comes

Mobileye the again, Israel. Amnon, compares you my thought atrocities ones with community, in loved following you in and

EV their adoption the in we OEMs. legacy will dialing investment My few on that If -- -- mind? SuperVision back is I categorically any we of does, does continue your them are next plans. it Many slower first continue. expect have over adoption on question impact the years

happening. they're is can and a very, opposite investments pushing in-source, those provide. because big dialing and ODD basically time-to-market When dialing very Mobileye performance the think back scaling them are back towards I are that investments, better

on with really all is engagements our So Supervision over. OEMs

Yes.

be Just [indiscernible] EV not It's to to is specific. agnostic an system. targeted powertrain.

So we see any from relative. don't impact

Okay. bring That my question of those Dan, the of second identified many then, are -- does for -- kind those how include of to those is hybrid? also of include or and XX architectures EV? ICE Do any

think none OEMs -- XX with these I of we're are win design EV-only and There's negotiations. And companies. that involved discussion

I that I FAW. wins Porsche announced Geely think we with is what with with design would have say

in are X a within models other around variety group. each of The negotiation

Anything to Amnon? add,

no. really train. agnostic No, the It's power to

though. offer, an a retrofitting very integrating operating relative But kind don't of have important advantages sorry, the architecture I our But fading or my powertrain, understanding off new say, of did done out to, an electrical if can and and an invasive logic thinking I was system, is was I the correct. agnosticism, almost operating I'm some of you know run with ICE see system architecture. for starting system I'm but that clean Yes. here. like technologies that kind or sheet existing

the closed the on where OEM driving new is think really that system, with wins, the cooperation policy. I Supervision with is system tuning there a the the

language. to driving decisions kind of allows language, new control system. language of our of OEMs ] a or As [ policy, operating of it top on call take really but tuning the the I which we all all We driving have it's our last within system behetero policy quarter, shaping mentioned

really or there have or whether new EV new no architecture, is different. a It's not So architecture an you agnostic.

comes Wolfe Research. with Shreyas next Our Patil from question

guess a we XXX,XXX for out to unit range years up look maybe I you've the ramping -- in Supervision low next next talked the few as year. over years, few about

XXXX ramp 'XX. would that a imply So pretty and in big

of can you you maybe, talk that little in ramp? how about bit like supporting So there have visibility, kind feel much the you a visibility

much that better goes getting or XXXX, is The visibility that and time them as right? XX% and the have, more us in earlier would our gives and naturally. in of XX% going design better I XXXX opportunities design or Well, better are close by all say visibility. a wins XXXX among to wins to launch we

of And we're revenue, ASP because of per EyeQ. revenue kind talking magnitude about order inflection than Supervision car of higher an in in point is our

difficult, pinpointing that confident we the point XXXX, is exactly time date we the with but are numbers XXXX inflection Now of the that frame, gave.

And clarify, just you secured, a light versus Great. Tier on X Okay. playing then Supervision so X. mentioned maybe award Tier you're to you that role this a in

about Is how Tier talk entails domain you maybe the what So providing more a can you? little it? a just bit about to role controller well. X for versus software it Is think as that

high and hundreds the it Tier chip. other The it's role and EyeQX is of the the all chip and software main, revenue few we provide In role software around the the the driving is in this functions. case, X this classic our the for EyeQX that our in terms almost all powers dollars. non-SuperVision programs And where of a

a me. quick Okay. Maybe one just for last

tracking XX% midpoint. towards was It for the It strong. QX is quite Just looks just at operating income shifting to like profitability.

But previously year. I may be lower. for OpEx think growth year, it you've like talked sounds a about it next coming little XX% this in bit

still we assume we should growth? Or be kind that So of higher? assuming something should

our depreciation on responsible our We still is not in moving Israeli in some operating like there were which new of most our of campuses. the expenses. control, late that to were for things Well, shekel, the was

changed. operating changing have But sales expenses. not we also investments, make have our of that. forward, those there's we're and plans So No, not on going big investments to

reduce nonrecurring add You mentioning to of on worth XXXX, the an issue just that would also reimbursements R&D. there's engineering that

Supervision much So to the for more like reimbursements more or see ADAS. what in Chauffeur, significant development than advanced we used NRE programs are

investments therefore, mobilize Of challenging to more and predict. tie course, we to

expected XXXX the higher to So the of savings assumption for part at be are XXXX. reimbursement than conservative for our this of beginning our That's also year.

based XX% XX% expect XXXX. we XXXX, XXXX, for to on forecast current see or growth for would And our in

of in even to the winning is, we and it everything, factor closer assuming we design but important Chauffeur, to we So XX% course, expect win with an be are what Supervision XXXX.

There mention our includes on was -- there that Supervision revenue a point I the line, also forgot point another was to [indiscernible].

Our Mark next with question comes from Sachs. Goldman Delaney

is and let think that with. to Do for question help time you, the the Mobileye support training Mobileye technology my for tech And me you road product will on the GPUs development family latest Amnon. accelerate lines. A Yes. add its dealing map AI everything

what may end-to-end the all about nets feedback topic best not tech curious you've or autonomy. on paper map, I'm road for be how approach of On the the had your

our end-to-end, is what this I repeat in paper, to the about of kind don't think it Well, wrote. that forum view put I we and

So out there it. a in some writing block. thought spent it's on We

to add not I'll that. So more

In than our the It is It infrastructure, efficient. GPUs. is compute power efficient. value have on what infrastructure to our is not performance us our It's a much to we terms customers, cost more more EyeQ. GPU. much much flexibility of driving, system big [indiscernible] can scaling, is tailored proposition we and needs. very kind in provides of compute And our that chip efficient cost be because this It's more

being new how more Supervision that for the driver margins to spoke Any about be about gross may 'XX. it. can terms course domain the over gross potential and a And you to a meaningful margins? Got in you of expand, that of share details impactful controller,

is there Supervision We're but where XX%. of out yet, for at aiming is we're margin going. gross this Our asset not

as gross the as in I to cost the now ECU sense yes, the reduction have mentioned, mentioned. I beginning significant next XXXX that One impact of figures of that And of X the mean the supposed is ECU will -- for QX. the margin generation a Yes. Supervision, for that's we

And will have the will of margin have half XXXX, more the effect meaningful software back in in for we bundle. also, gross but Supervision versus in again, That a XXXX. growth XXXX

next Our Aaron from comes with Wells question Fargo. Rakers

Yes. Mobileye current family And the situation. given as my your thoughts to well,

Obviously, wanted So Zeekr the term, should the I across about the the of longer how with attributes model monetizing think XXX,XXX-plus guess just data? about we vehicles. ask functionality I to cloud-enhanced

'XX. we Any we in, about metrics that? which that latter through, the you Just to me on how of help think of kicking can about how maybe share be walk in sounds kind should part think monetization,

few do I'll words want a say you and then Dan, to add?

the repeat you could Aaron, Sorry, question?

Dan, appreciate Yes. that. I

taking the enhanced ADAS. I'm about effect -- vehicles, the REM example, asking of I'm the full license Zeekr of functionality, So just for the the cloud monetization, the

the think Just 'XX? into that flowing about we through model look how as we

Yes.

think I'll more. then and maybe a start, talk Moran can maybe I little bit

[ has of the Group, ] So map. will of to Blue Those cloud-enhanced pretty So volume Volkswagen it start significantly ADAS a next just the was one, from ramp maintenance REM to cruise. generate still annual volumes small, because to Ford the their revenue relatively platforms couple are should the potential adding be really from recurring year.

a of But see difference. number and when the make want revenue you cars, function repeated recurring kind of to starts to up years cumulative big a building annual of is it that's

see the of we'll but effect the So meaningful in years. could year some next it recurring more that's get future -- revenue, much

value the from whether end in on consumers an consumer think that software going Supervision from these the rather experienced make from to China. for lot by we're day, really come there decision the functionality take is value of At we getting that's ever and because they it's obviously, to that perspective, really make before system it. to incremental free better that, of not. good system the the cost trial pay the a in the feedback or a I that the That's we're they've people and idea, than think bundle experience revenue, encouraged the why them was

users the is of penetration to to for the system, end really And they sign. going We XX% think just that that don't encouraging is high, a reiterate system. that up pay would that rate but thing it's of said the one beta

anything year. if and should the start in that don't happen has else to next second of half I Moran? Moran know

Yes.

yes, or growth ADAS So ASP But the so will on the and we to cloud ASP, made recurring impact some XXXX. to neither in the volumes in a trajectory year this RAM revenues tailwinds are XXXX. provide start modest revenue in material see

it's maybe Supervision, the [indiscernible] half for And only as back mentioned agenda. the after of in that XXXX

is be a hundreds NDP paying dollars the But range. for Zeekr, Mobileye. every That's concrete customer Yes. that is Supervision converted to more about with few to to of

bit Geely of that remarks think I Group there helpful. think in you in that you are very little the What it like in more? and could you Zeekr volume near context referring within kind us the sounds It appreciate said add help I was comment also significant the a then future. other within Yes, Geely? was to of the brands that And Can a there? prepared

Yes. Within Geely, it's more design wins.

the So we're working time platforms XXXX on beyond frame. more

Rosner from question Our Bank. with next Emmanuel Deutsche comes

Can Mobileye pretty to my of win [indiscernible] direction that in the horrible you -- it? then the us, the and models obviously of to the first wanted family is brand like encouraging what then terms expand? new support to expansion on be you current in the extremely vehicle around late and start And would the of just the potential scope or what time circumstances. ask in your perhaps First of in prayers I And all, relationship XXXX. current also line? I pretty customer and FAW is soon again, time the which in express frame would line for would

is wins end of So starting the Supervision XXXX. relationship on from design of

that it's vehicle. XXXX. Zeekr starting all same on the controller a FAW end it's running And domain EyeQX, for from So rollout not the brands of EyeQX. the is it's It's of

brands. X I more think than

based a year Then Chauffeur. the is later, EyeQX on

first customer, a they're So to X also customers. the be Polestar going FAW. also one but of is

eyes will [ imaging the one system On of EyeQX highway X radars. also Chauffeur off our ] a with of include Chauffeur

domain we'll controller, just sensors. not also providing also the it's So start but

relationship. the So of that's the scope

this needs time potential to sort is Then the venture in of the some what brands. would you also that to out? take expansion line play remarks, of decision? And your prepared How for Who that? alluded joint

W's difficult -- there moving it's the But know brands on believe successful catalysis probability joint don't I SuperVision the I it's venture Yes, rollout is speculation. on owned nothing wouldn't that to there. to well. a as it. if put would of concrete good start moment, at But to I a a a be brands

in following some of already your Understood. confidence this is latest addition next volumes little still bit of on is than launching of SuperVision up this mark-to-market understand with then, just the on more since your quickly guess I look since year. a curious launches. like XXXX, volumes And I track, higher is still late in XXXX XXXX. XXXX Supervision Obviously, your point doubling this the on FAW? for bulk could what about especially the year, with But helping

Yes.

I think a this is what a slightly have is XXXX, good but good doubling estimate estimate. in we more, this about

we the we Yes, did when the we made comment. as quarter last feel same

hear. to Great

with Research. Street question Ferragu comes Our from New ] [ next Pierre

about handful comments prepared you kind be like at you with SuperVision. hands who with more started have a would in It And provide same like a to the like up consumers of and your market you remarks. the think interesting like, I more ramping I So drivers at more similar made China must moment the interesting very features self-driving in pull say, market, guys than time, of like sensors, just on competitors, that compute service a of of camera. the but

And features? offering market about the all the on these been much very like in how competing Are emerging the I'd so that And systems the and -- user day, you've difference the experiences? they has of far? SuperVision feel assess the SuperVision to to a what differences alternative within road do end see similar love to Or it similar and rest significant put hear between like at you between able you of very able ground. been these how is experience

by to been benchmarks Zeekr XXX by with is parties The striking. Xpeng have detailed difference the stores Geely, comparing there comparing by to So auto. comparing NCP, us,

the measuring magnitude, rate to intervention takes was time point by say, let's go the intervention of of of tens terms to all how rate. to faster it B, Zeekr less XXX intervention, sort point A of to by In much mean time much, percent order

striking. Now really is difference the

on all mentioned doesn't systems the Some them Mobileye expensive the scale scale, conventional I that they they to of much those conventional It's more map, already high-definition think map. are And it. cannot relying a which of those queue are high-definition map, have high-definition too whether systems, expensive.

it's the than of them, have sometimes As front-facing labors. more more sensors, they and compute we you about what more mentioned, have many some transfacing radars, compute Lazars, XXx X

performance, in proposition So I confident we of of good scalability. cost, of very terms in think in terms value have terms we're a

conventional Our RAM would capabilities that scalability high-definition difficult allow it very compete. map maker to scalability, a find geographic

block Other kind approach -- the been behavior a have there when a that benchmarks plane. is when of zone, how conducted is you construction the

And intervention So it just the difference detailed really, a was very is benchmark. rates. striking. not It's

but to complete. sure back whole and thing want the a had just just I'm that, to And Great. I quick follow-up, to sorry come make I

the confidence assume. had is the on not additional between in then XX% just your converting that confidence represent which depending of and to what Is one X I have is market. talking I XX% X the one XX would of below terms you which say XX%, way of sentence? So of them into like we're confirmed XX%, you ratio, are that And announced you've about. wrap you're right all which of market, that XX% an on the you OEMs, that And like say, they yet,

within is of rest XX% than and The one them. them range a XX%, is it's say I'll one XX%. Yes. higher to XX% only of but the is XX%,

clarification Excellent. on Thank final that. you for the

Tyle, of Pierre. time. out we've you, Thank unfortunately, run

the next appreciate So you please. everyone, really We'll to for talk if interest. you joining call, could move quarter. Thanks, to us. I close the

Okay. Perfect. This concludes today's teleconference.

time. you may lines have You your great this your for at and participation, Thank disconnect a day.