Mobileye Global (MBLY) 25 Jan 242023 Q4 Earnings call transcript

Greetings, and welcome to the Mobileye Q4 '23 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Dan Galves. Thank you. Mr. begin. may you Galves,

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

Additionally, Shemesh, the GAAP earnings on measures reconciliation to today to the Shashua, Maron call turn Mobileye's Also this call, and over posted we Business Strategy Nehushtan, Nimrod are financial I'll us release.Joining will of and Amnon. President; Q&A refer is both today is Vice non-GAAP our Thanks, Amnon Mobileye's call A for non-GAAP in President on Executive of provided the figures. to Development. Professor GAAP and and joining CFO. now session and CEO Mobileye's

with no everyone, in high strong and results operating earnings prior QX Starting on our and call. growth thanks we with in Xth joining quarter so a of was press adjusted for income our provided January and Hello, of terms XX%. in guide, XX% release that with the surprises were QX growth here.At Dan. line a the level, Thanks, revenue of

the cost the of impacting captures than correction we we issues, well first in SuperVision expenses, which that and operating the call publicized. should transitory outlook has in that inventory the benefit term.Looking structure from but We significantly is to provided today provided product also also growth some ahead, efficiencies expected I XXXX, is early relates in expect year see The were are that XXXX. unchanged attention continued been which we of January. over which guidance of we the pleased long the with growth to lower in volumes, to much excellent our half in sequential what our

not year, we believe out this the did until issue we arms late and learn buildup clear While of we our this around plan. have in the

We have this we the how remind of XXXX. XXXX progress close as demand, back strategy and the us in gears, it's implemented and some versus out we our assess high-level CES, provide monitor color.Switching and of to into believe additional closely out visibility to Moran you will to to and normalized come shipments have good processes a good we behind back additional more put get half revenue of made. time

is strategy Our very simple.

ADAS would is very Our global and large high Software picked many rear-end This to single generate product. by pay very efficiency and exactly Chauffer ZEEKR hands-free XXXX revenue the not surround We'll in driven where was products change at systems running camera and to cost a these to that valuable Drive prices corresponds ADAS. ever underappreciated and self-driving that that makes focus only new XX% like really in can significant percentage safety. the of point. generation developing coming time, back more issues these in positioned is this more years average were model we capital be car in SuperVision the annual in our and that China programmatic the automakers. two, for time-to-market our These is market. propositions can At has technology autonomous our revenue cost can see portfolio. with consumer If which turning The as core cost gave vehicles more is the that of avoid market three market.On the of all a are equipped pushing a cars is XX% clear drive support by open Number system pace products, in demand business owner. products are much highest average invasive unlocks an Events on to Mobileye can in three with available turn in the higher rose. productivity enable as offer for was auto into important those or and driver. the vehicle, we car red a innovation into addition with and growth lower We to XXXX of in collision Level drivers.We large per bigger expect launched grow that that offer of vehicles to in vehicles to This a automotive the to light.Number the evidence Number or level our time high TAM. same driving-assist are bigger very lowest to to some like about continue technology.But mile the domain related the percentage is believe a perfectly the production a step and eye Industry best there itself, proof for generate convenience drive in us operational confidence higher advantages.At a much value pressure find were a lane to of safety, advanced much performance, products. praise, ADAS XXXX the portfolio the our our progress and hands-free on like trends support would must align SuperVision, and value on avoid cameras of OEMs an our perception than that are will SuperVision us than in platform. direction. advanced our XX% products merging and a limit than of win per support level, segment maneuvers X+ driving, OEM the customers And and Current is higher or product for meaningful to like XXX-degree time, next options systems performing, that systems distinct both most into to accidents one don't fully the highly of operating seen able industry It driver improvement the is Chauffer need our view up we the ability cost advanced scalable on utilized the lower value design owner. systems resources. a high propositions

enables today. basis, a brought revenue look DXP sweet Finding enables we the design the agreements to OEMs ASP to row. weeks second a XXXX year control was our for recently ago. Chauffer XXXX compares projected on XXXX. our in control of supervision design the that wins was $XX automaker billion. of Finally, plus system. the XXXX, the compared mid-$XX million years to to $X last in framework two that collaboration revenue experience the the to based driving our two $XXX called the core $XXX million associated compares of critical customers with $X Future is $XX announced objective the billion in XXXX volume of for spots paying to of of of aspects our in and on but a feel design all $XX.The This of system, ASP rely customers.On wins already in XXXX these ASP and our the This actual wins value more specific revenue for is CES Implied technologies with the at and we dividends safety

Beyond year the opportunity the important XXXX of wins, and design an expansion customer acquisition was set. execution, for in OEMs

awarded capable delivered believe vehicles. challenging is full beginning SuperVision selling XX design global domain restrictions, at the a We highly ourselves the more X what proves at the all the FAW, on now the expanded SuperVision proving XXX,XXX unique included for to in We and that software is have system only are XXXX. scale our our number in data than design Western that proving wins Our the Mobileye, is and as cities models Mahindra it's The system to given with now from X major over that models point Porsche, September. we compared in in August, of course were and to of most XX models environment of be back wins and XXXX. OEM projected design underappreciated.We highway

types. XX wins with now similar start we in on urgency know of a XXXX development XX% given representing serves based systems strategy as product than to terms late bring number results OEMs systems portfolio, many and want landmark to into the inventory and bridge expect the ADAS previously, pipeline the PID endorsement I a models align OEM take in we a It and with leverage other during do OEM. of a proven correction. all this leg design production in wins And significantly high in platform design of mirroring will forward to from OEMs production described deals.We actual them the It's competitor programs markets compared our and intelligent of during Moran. the price to breadth in of the AV to moving Chauffer western now and Our increased turn portfolio. was with be has the confidence production sense We or multiple XXXX.In spans major to poster a ADAS business behind the vehicle Navigate XXXX of electric most in XXXX to a as OEM powertrain multi-brand the in automaker closing not first all to as in industry where development We their doubles vehicles in high-level for as of for trends be marketplace Overall, shared earlier, mostly mostly Chinese call that space to western the a I'll especially discussions OEMs, future over driving XXXX expect diverse we that complete successful financial of across our out But design win FAW OEMs as and are more to in of summary, all growth X% our of the Chauffer representing no XXXX. has to the of business product production programs the have of the automakers. on value [ph] our where catalyst [ph] X as is global groundwork toward terms visibility OEMs were being additional diversified the funnel powertrain and we and be major advanced plan solutions. our important set entire SuperVision the our portfolio next industry types.The have of story. leap we production set points awarded

Amnon and for you call everyone. thanks Thank joining the

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

We half employees were about we revenue of units two also wereXX,XXX main The XX,XXX about on adjusted quarter meaningfully and half. the exclude some some ethics in up Payroll reserve second results, to up the in expectations, be always units was were up this magnitude. due SuperVision units higher income duty. year-over-year, had reimbursement XX areas, first did the and expenses another XXXXX XX,XXX for operating Starting XX% each same with QX XX% with again volumes There below significantly from million the expenses than military will favorable Operating QX, quarter. margin adjusted in XX%. at QX. we in operating good compensation. very

engineering reimbursement The expected other OEMs. activities factor higher was pre-design with for than certain

XX% XXXX. revenue cash operating of we it to significantly cash safety sequentially of should possible, XXX important give revenue million Obviously, know we course in million balance higher. year sheet. leverage in And our the expenses. EyeQ flow and fiscal XXX operating drive backward invested Chauffeur is a operating On the own XX% investors once the buffer around volumes generated to almost a that chips basis, more margin on on rebuilding operating flows some Over rose looking it's from to of our meaningful and consistent SuperVision higher XXXX, of and sense this start

of XXXX. year million line level Capital consistent for a inventory expenditure, maintain we're the balance to sheet XXX just prior our below in expect We comments. with in

XXXX. decision expected of build items The for OEMs you're The to inventory inventory learn excess supply the production category well our QX aware customers scheduled is to shortages ahead, due the to customers. XXXX X million remainder orders SuperVision units as certain the reflects during normal part in ever. basic We EyeQ we a Looking as that of understand X lower at of base that related and inventory inventory than XXXX, to constraints much avoid as process chips to chain QX in as desire all the there of and is that excess business XXXX, situation parts the as in of inventory this of and setting only. ADAS is by

noted XXX million. press X-K, on Xth we As QX around XX% our we revenue January to be down to release in expect approximately

expect volumes in We units QX. around EyeQ million to X.X be

We in XX,XXX expect the reflecting low to in range seasonality unit provision China. normal

will volume, this. in to result which million the revenues million, our likely will quickly existing is to no The specific process to but Given and demand. There is use back Due believe see is OEMs are. outlook the have be production we can bit no There subtracting specific a for a that on or is income for other inventory. loss portion gross needed the fairly who The be in nature and unusually the adjusted to to inventory inventory chips QX $XX EyeQ QX, have good there no this be of of $XX for operating snapping shipping the recent for margin XXX stop customers of and is and satisfy of discounting the we used, a revenue. platforms. economic SuperVision a visibility clear revenue simply alternative the to business, uncertainty our inventory mid-XX specific which very customer product regarding volume action clear and our vehicle vehicle operating of the is expenses, all will low in higher than range, larger

As we schedule, QX units the prospective X can compare be we approximately million cleared remainder in of majority and with shipments production vehicle believe in our vast the QX.

a XX and preliminary it provided is in In has guidance in terms From perspective, assuming EyeQ from outlook unchanged improved to volume shipments several year million the weeks. XXXX. to last of our Xth, the XXX,XXX we are full over January visibility and shipments we XXX,XXX our SuperVision XX

in in assuming EyeQ We the expect to believe of second the guidance XXX% an cadence the versus We and of year. QX, be QX, cadence balance QX million unit in in system our analysis of based rate that increase total of be of of XXXX X.X around of and compared price to majority a discussion vast result revenue. with due customers to as as the half the to excess of least on midpoint middle XXXX.We of should by to cleared the [ph] this the the in SuperVision inventory then shipments at ever increase expect increase percentage XXXX, an

at work In terms on a we basis. look product-by-product of margin, it

along our On we the One, slight in went as the customers. beginning a chips XXXX. reasons. downtick cost passed from know, ADAS of year you at the for two of side, this supplier We our EyeQ up margin that to expect gross

normalization purchase crisis. a there very chain revenue some rich However, the continued a XXXX were used mix assuming headwind generated production-mix of but units this in of year.We're prices, during decent That's XXXX, supply chip where number in costs. a minor we XXXX also at after

higher two these by and expect REM volume to partially be [ph] cloudiness headwinds We revenue. ADAS recurring offset

XX% the gross to XX% now low is to a meaningfully as be our XXXX. a SuperVision, meaningfully expect last and at ASP compared that portion up of customers. lower production. cost This be QX domain low compared a are but Regarding down bit margin we as will XXXX to we optimized in controller to comes with to in mid year, sharing of

based profit on amortization addition, will trials assuming XX% With and of there the the pay the revenue we this we Mobileye. an intangible OpEx more a XXXX final are over licensing of chooses are impact expect SuperVision making respect discussion. operating that year, once adjusted consumer in revenue over. QX Zeekr to excluding would incremental feature free level expenses, based to for bit stock after increase drive free a The assets the to of begin trial, for In Any number an basis, compensation. is software some and

our service Our related original XXXX transitory Much in what too forecast XXXX. our near the The we is exchange, ago, far and of OEMs, from scale structurally reimbursement more to a a of with and including way system originally costs leads we it we engineering Certain to our the expected on on and to delayed structurally moving military SuperVision a believe of opportunity. some believe envisioned. forecast year GXP our mobility be employees months than costs, reimbursement costs operating refinement as adjustments don't term projected is efficiently lower structural. we campus. like we on reduction that for news in Good should as means the to the the lower new payroll for the foreign reserve, but expenses not supplying unchanged things and can Chauffeur programs we line Bottom ago. focus certain long is for lower several more to do strategy of in than and but above collaborate XXXX of some self-driving

continue growth XXXX and lower this beyond be significantly believe than We to XXXX. in OpEx in percentage should

of will assuming Lastly, a XX% XXXX XXXX.Thank you rate, in now take we tax terms XX% and in with effective now are your XX% rate non-GAAP of comparison tax questions. and in we between to

question you queue. Thank Please Q&A follow compile could and Thank could questions limit you. one Kat, your you you, if one analysts Moran. the up. if main to

Please Mark Our from instructions] from proceed. Goldman [Operator comes Sachs. Delaney first question

hoping more Yes, OEMs engagements thanks with Chauffeur. the and of SuperVision the like much update the morning, with your advanced start solutions very on and taking to for I was good question. an some with

OEMs. XQ advanced of were with you booked either you I think as said call, XX discussions the in or

were color there you at discussions of preliminary of and OEMs OEMs, go more still now how that's you're underway. general are where X there maybe like to progress on discussions well another or direction sense do XX give you with and set was going, today said I those you positioned more another Can deciding Amnon, believe any think was customers? feel any I then that your

Well SV and complex Chauffeur are systems.

they due early need process. So diligence a lengthy adopters,

of of know, almost due that on winning you a we thousands before Europe in miles public I year. facing phase. law diffusion the would But SuperVision SuperVision a and into diligence example, where underwent took of effects of with support due that the this For US in Porsche, the we're means of diligence shorter the which now call more OEMs buy roadways innovation

after So and second China is I a And we the of shorter of half in I the wins in the due be will believe XXXX. much western western big wins, foresee and winning number year. that the that phase getting diligence OEM, design during both believe in announcements those of design the

That's a tough one.

current One on and and at on at the of more CES. was receptivity is is platform. potential this around your OEMs a of an to the DXP part you Maybe you? customers with different update maybe things Cap, your share DXP year. I CES the and imagine was number speech a of how of met was DXP looking from presentation big and for a It you how touch thank little bit auto EyeQ can impactful DXP I

the that think how of I the problem the OEM in own very efficient manner. driving the a experience really solves DXP can

to MCU. chip. not do They With it code they chip EyeQX our on our code policy. microprocessor. very, come level cost create write write that to or And on take two EyeQX your say, of DXP, resources, dollars EyeQX use the the writing look, they to any do code for clashes OEMs chip.Now, the that and us write would important. would is code code would chips, the high your sorts we'll would So say on hundreds economical is cost need and add previously they write strong of and so code They separate their before all because system additional on they means and our of that DXP, microprocessor, policy our the microprocessor our need on prefer to not a very scalability we put and driving driving a infrastructure on and your want add code, another we fighting microprocessor come to this writing higher

So the the materials to the the the platforms; the you Maybe and another differences to don't Mobileye it scale chip are things. EyeQX faster, Nimrod does the much the all two because in because all it of bill code all It add more-or-less to allows chip MCU. the written reduces of system, on same is need something. for wants add

industry work time the driving operating driver task for sweet experience to cost of to driving flexibility We product. able unique to at this really of like had meetings the interested a not market, spot to between OEMs, experience time in that crafting was the new the the where is their the performance reception last generation this the on are multiple influence and customer full and by kind being more the base.And sense DXP it craft really in although dozens expense in which market this cost, of now offering year who experience what's performance driving the present to this to user and pragmatic in in to OEMs and OEMs is new comes of find own in focus experiences best concept user very come user have missing the compelling does now opportunity perceived owning simplifying OEMs autonomous solution their system, and and as is considerations in and system in for and

you. Thank

Next question please?

proceed. from Rosner from Please Our next comes question Deutsche Bank. Emmanuel

issue first of you ago. line very in situation few you resolved being the reiterated over how magnitude with confidence around My became of you maybe Can and around much. Thank is please? the weeks you aware it what flagged so of it; do go chip just destocking the timing you you question how today a get that the or back

our after the the industry the the secure That when question atmosphere the started in from also urgency desire to learned all then changed. three chip, every go addition, related of and actually period COVID customers. the issue activity.In production believe we I dramatically and ordering stocking was inventory ago and years as and suppliers about so led also sense from script, we XXXX was XXXX, to and course, actually process that buildup for some that the in Yeah, to our us down of production the mentioned with went your

to So chief supplier. commitment we needed to our make full year

asked the over, crisis but would holding but commitments, kept still back [indiscernible] largely they held be customers same and impossible both year. were might reason XXXX, levels, do to pre-COVID normal was normal the period.So when was less to quantity. commitment unclear through the make they to side adjust such we we to year was purchases again their our again, we year that XXXX inventory the and which full So in the for that it led did these years, from and course supply XXXX, also In weren't it in ability know adjusting, informed actually of pre-COVID production to They get and demand obligated was the the through chain quantities XXXX. which to of

of of orders. believe XXXX, year, were ending got commitments when then you the grew of that overall production normal majority customers we course of market terms ADAS the of terms make our growing now the the know core customers, our towards the of top back end Over in which and in the XXXX, to we versus and for they underperformed X% our X% customers, in

the not other of of the that beginning we this period. and it reason to quarterly we think So during timing towards the at customers XXXX year can the up the orders quarterly or have end the some adjust came and

in SuperVision, expectations few And so helpful. as ago, is that I of Understood. just units a tweaked weeks quick for or you guess one update also part then a down on SuperVision XXXX. this

maybe it around ago. XXXX so in or have year CES you exercise like obviously, launches that, us around later about Could trajectory know, provide like? you type an happen at expected like a little de-risking a I of Beyond think bit of -- than launches. part what timing the looks generally was similar like de-risking

few investor make are initially sure XXXX that expectations So for just in of to sort properly only initial calibrated the want beyond when have customers? a what's you ramp-up

for models At in forecast we which turned in we our OEM a have number to to to have beginning on XX small rely China accurate we what models base Today be production, of difficult two had car we the out car our to models it's and forecast. always forecasts. and XXXX, XXXX of improve we optimistic. numbers that had can But car make

Now we the of models coming of XXXX, between of out XXXX. production XX SuperVision know that X to most we'll in is By have SuperVision.

group, and then to models the Star, FAW. from the Pole X X Volvo between car from Now X from Smart, X ZEEKR, from X from X X from models JD the

models, So that's -- western the XXXX. we car with the we XXXX, OEM and and Mahindra. have and production And Porche have then XX in have in XXXX we have big the we

you. calibrated to to we the well as CES reasonable achievable of document as And analysts provided just look updated at one terms estimate and the estimates calibration that own follow in leading and have models up edge from these their analysis, me, Dan, that Thank this is their for tracking us.

question? Next

from Our Please next question from comes proceed. Barclays. Dan Levy

to want on of struggles automaker American is very example their the that there. pulling own is given a plans, to advanced with about the a start you this scale narrative just engagements said, North and technology, the comments you. Hi OEMs, wanted there's there to I taking XX afternoon with it's to of tying your challenge to there difficult some some I for automakers good broadly questions. out more you is that, Thank been do like ADAS think notable but back

extent the way to come really because come to the to seeing to scale. that despite engagement but To So to are are seeing to you fastest with more and you realization they coming easiest that, extent are the have what automakers the no technology, you? you desire own what automakers to you around choice are

it. I'll Yeah take

so more are it that by these seeing few to sense, becoming is be offer OEM's to OEMs growingly that still create they quality that clock and OEMs product. the of dynamics ticking to the few this realization driving, shortest they had and free shortest we are off rise see we path maybe feature they there, to path get already is market for the invest, gives the outside the for hands ability some products, today. looking urgency at a going have happening sense ago, for the driving, to domino already become this what heavily it performance one in longer growing high to time in is important now was industry they a the amongst that with technology in And perception influenced it think it's them China this I very can and to So and take effect a next time stack, while the offer they eyes to years China best going the years compete. is And are And for what still consumers. of is can owning can

on ADAS traction towards they a product. and see path do to to find who have that next past the more we So maybe de-risk were the least inside OEMs from parallel who the to bullish their activity generation technology realization owning at in company more need more the stack come of

activities have past portion are I significantly invested certain our can the in that. of in a who OEMs say So in-house with engagements

it's really that say could flywheel a effect. I Yeah

was a reference Now a autopilot and the only system ago, to such years few Tesla, the FSD.

are models with and exported to of and west, those systems. Chinese you are the automakers have Chinese mobilized setup similar a also being automakers those the some Now are systems of

Now that western the introduce going are they also systems. these to and know big OEMs Porche

cater of as a flywheel an So to you intelligence competition effect, terms rise it OEM, creates in to need rising. in the and

Mobileye of in incentive So their or on instead these their in-house to development, products, this creates more part and more with in-house whether development. of working start advanced

Great, thank you.

As market competitive are landscape just us data China an China. some within know maybe update with follow the there's related, China, but SuperVision China provide with we based the earlier rapid is appreciate of also up where you that on somewhat the development there barriers the now most you've a right could are in and had also on that engagements cycle,

China in you what are you are rates talk share trends So you maybe the competitive China to what as can West? are extent or and to about in you, in extent win as

really bear to Okay, answer, so a complicated me. lengthy It's actually, it's be with so landscape. a going

start I'll So West. with

you X the today, the this XX OEMs not given in true design all true about share biggest Actually, is current design foreseeable western growing. This wins, share have only we the future. OEMs. is all but the of the market today, XX% for With know, wins out given our is

have we Now about who a in some XX% where local we like XX% some also are relationship and local Chevy, around share there yet. some a do including OEMs we number OEMs have OEMs China, of there not with which have are market

zero. at XX% So for and Changan we with example, we have share, market have BYD,

Chinese OEMs than OEMs and or BYD, So Chinese growth market growing very fast. faster growth, our Changan are is share

the of supplier competition, have of the at some we terms very at there's end ADAS, OEMs. end. low end competing high the development low and very we solution and low end, end high in the very Now cost, At in-house low the low solutions, have end

performance large like systems autonomous end, suffer braking features competing of emergency regulator. never any for very gap western performance low basic a the So the from pass will example, at the

are systems proof to there pressure still add developed economic ADAS.For scalability significant more is tell to more enhance enhanced and our reduce in-house a will by in adding For axis, low ADAS creating will geographic to will which just scalability, cloud solution announced competitors Moreover, be on Chevy system X are that need would camera REM scalability. are target a car up, them points mobilize they expensive two along we have will provide months that end you launched. single there moving their system pass. those competitive performance the and OEMs, by models the to high I'll to for catch This end offering. cloud some

regulation. urban, So OEMs do from Performance a of on Mobileye performance Mobileye is there in to off. level. step Economical Mobileye REM, there. wise, focus performance from This more goal the on up safety. an expensive is has reach to advantage in-house systems are an urban. to this not a outside big because this high highway this geographic a geographic is sensors eyes significant provided to has maps systems wise, move wise, there. China has has done eyes manually, challenge wise, advantage and a more to Mobileye reasonable export by require are and advantage want and is there. meet advantage. mapmakers Also, is definition big scale to move

hope to And doing soon. market is up our and there. the the Chinese of market market we're than most faster of market And share I interesting the think I our think Chinese, catch growth the well I So date. we'll dynamic share but growth very will market grow, and the is

you. Thank

Thank you, Dan.

question, Next please.

Citi. from Michaeli Itay from comes proceed. question Please next Our

just Thanks, me everybody. questions Good quick pipeline. on from the two afternoon,

And have of can just First, combined, looking maybe you the CES, recently? OEMs Chauffeur conversations, you've mention SuperVision increase described including the the second is at you seen both and activity question, an seen I'm you momentum portion hoping in wave big the Chauffeur the with last the in at call? in keeping what pipeline since earnings announcement second

take will it. Nimrod Yeah,

OEM. a we the have, both In have different to where the parallel want for different the of the cars. in in price they for first the levels interested case SuperVision depends. segments with we are car the regarding it This So have and maybe few different engagements of some same question, market, Chauffeur offerings OEMs models, engagements which is in

Chauffeur of hand, considerations in OEMs might and have. specific, on a who other maybe offering start for product of whatever the hands cars some more interested their On to from be specific to are off or kind focus they there because

our we I regarding mixed see in good general, a And say can question a in what we please? pipeline of So have in and second think Chauffeur our of your engagement. SuperVision engagements both mixture bag -- was we

[indiscernible] increase second the activity any wave? Assistance, and in engagement, CES

of focus of working how CES, it is think three first a to since on weeks the start with time, after our feeling know, are promotion have they outcomes very it pipeline start, technically we And of Yeah, that we CES want to the announced just specifically tools, start influence weeks just after promising have, so we that a to on this process couple is you I is we a DXP couple already experimenting DXP seeing executing. the can have experience. start the to so this interesting driving to engagements that for that had, on, over I think within of hands one evaluating actually

That's very Thank helpful. you.

Thank you, Itay.

Next question, please.

Our from UBS. from Joe proceed. next Spak comes question Please

Thanks, everyone.

or wondering see of get progress the implementation or are you I get on for mentioned really levels maybe with on about do need you you features customers, was you to pay? and to Like if You could light Amnon, convinced as like how Chauffer, they adoption take how to programs these talked think more on -- of a like can about features shed higher higher-end a bit SuperVision significantly features sort those program are the have that rates? they conversations those lot they time -- back, that wins. charge when willingness to where of see we you

and the In reference have This in West the a why system we is have so to cost it's important carmaker [indiscernible]. very the cost economical, to a very that low of pricing. flexibility allow

Mobileye is with $X,XXX. than sensor a less system Now

FSD the the pricing, this that gives end So the considering to $XX,XXX flexibility Tesla is in lots of OEM customers.

car. system every most where take is recalculation, our of the on the not so So fit, engagements, but it's it they comes standard

is this the right situation now. So

second you doing the year this the sell occurred, respect of make you place also you past and you're inventory really implementing full about some years, track you thank better commitment. went mentioned that to talk Can sure procedures more to there or the through. that is in then you're what Okay mentioned a build that one, just keep couple just, you to you over to with put little bit just

part So that full of on pulled commitments? back procedure? sort Is have that you year of

Yeah I'll it. so take

the of have XX before must customers ordering period, plus done years course, a the the that all, say good of as very in first we our job I demand. experienced So never situation all through

and of we course, in history aid capabilities the issue inventory recent versus to monitoring to taking demand. several shipment action the our are fronts Given,

you So longer order commitments is back process is so thing the that now first to months mentioned, relevant. for the XX no yeah, normal,

a only is commitment the So quarter ahead.

month the what mention. commitment in no month don't again, we supplier would do XX important a future, COVID.We try but get commitment with in to have to customers we it longer that industry say is inventory we XX that be it something not the on our as that forecast, relevant some level, also we so expect so to that So receive visibility input to, is forecast, same but it from relevant our the XXXX and specific to also and the the not thing it's was will it's just

both established so detailed process and looking match taking have of shipments internally, forward. to terms actions production, a vehicle we're we backwards In regular to

the based weight rate forecast and but always used we We another forecasts that and this production and We updated market market provided other it are putting more on put focus incorporate as to input have forecasts. the compared trends. ship OEM will on the of more customer now

and headcount working consider we but vendors that, incorporate with steps model forecasts data that's statistical to also the external to macro will level support are We that build taking. additional some to

Okay, thank much. you very

in January from changed clear other that it the so Xth. Dan my mentioned, guidance And wasn't clarification hasn't script, XXXX the for full

of thank [Indiscernible] we're a EyeQ XX down line shipment. auto for bit, XX million the you. units anticipating So to was

Thank you, Moran.

please. question, Next

question securities, proceed. comes from Mizuho next Our please Vijay from Rakesh

are on share? been talk seeing that? driving doing performance thoughts you company concerns price to but that? to as Can is -- I what Mobileye quick yeah a you're or and that very again, the especially in seeing and I hemisphere -- just with landscape think potentially OEMs question well, some gaining China western GM NVDIA in any Just think, Is there's [indiscernible] diversify? on problems obviously the What's Cruise well on having trying Any you there?

China, significant those mentioned the said in scalability, about think development I house performance in in I economic [indiscernible] and systems, have scalability, as undergo to still they China geographic scalability.

way system. On side, expensive the economical our systems more than these are

[ they ] O'Neill not side. very the ] ], the they And performance them. [ is level have four on ] For and Urban chips. This SuperVision. chip on of reaching reaching example, X [ level for is of is ladders [ and even have the performance expensive have the the economical urban they

maps it's None urban, scaling to economical, now claim to the developments big HD be is in those On going highway maps urban, side, using high from not that in-house not urban. of the will are they geographical is definition game scalable.

Some for them good maples, luck are they'll go claiming of them.

normal Some that outside only commute they a say of Mobileye provide on want and there's where record performance has sorts you'll to commute your Mobileye you And them good export regulations very at. of route. get only REM. also of all they'll feature, China, very, is that

discounts, this safety So performance, that's geographic the of the you advantage.So off paramount. just an all grail is There is feel perfect. off, comfortable, system driver there, an is to In all responsible. but are issues to you to system. the of know, you you We eyes eyes off go system, no of provide also holy have eyes be there safety you have because can a know, that want cannot sorts

advantage to also this Mobileye. has Now an

all are China competitive-wise, So which And in-house is technology. thing, a options and I doing fast with moving that I development, think open. that very think now much. good forward the is We keeping OEMs very dynamic, the very very think I like their

an with they So for development example, Mobileye. are Zeekr, in they house have working also and

We have with ZEEKR. of continuation the long visibility work to

there as through you're I can as ramp outlook ‘XX-‘XX, SuperVision look number you out on guess, either to the build on side? of embedding what kind unit question on of or it. you SuperVision, And very the on but conservatism side the obviously, that just talk OEM OEMs on you Got the good

previously. that mentioned I So

we where XXXX XXXX, we're ]group, Volvo in car all the models India, end would [ fit. from to cases the added. jump FAW of Mahindra western X Porsche, Smart, And talking two the of of of there the OEM car going are we in [indiscernible]. car in X And JD models and XXXX, have So be and beginning in standard ZEEKR, XXXX, Polestar have be XX X, to models, all big models big is the have the and then we about of then

so you Thank much. it. Got

be to Yeah, the OEM, reasonable of of analysts this up, tracking of dates, a make you and and for models, achievable. Vijay. provided right is kind own adjusted number just the their we and up a before, like this why estimates So with conservative, their follow as more years launch know, follow want said just that we those to a we to document to we for and more the forecasts, in these analysts calibrated see have a

you. thank So

Next Kat, there are question, please. additional questions? other

Please next proceed. Baird. Junk Our from from Luke comes question

afternoon. taking for the question. Thanks Good

you stated First in in remarks recent the question that EyeQ improved prepared weeks. has visibility

can January? expand you better what late sitting hoping is Just on understood here in

Yes. Yes. Yes.

research all, and I levels so mean, based have specific schedule based on for first from our the yes, shipment own inventory on of the customers' So XXXX we that and also input. information on

mentioned, of the ADAS-[indiscernible] provide, day, excess of on to a fully by be to what most we production of levels we the again, majority and cleared this we, the account need QX.Of taking year-end. in of understand order of QX, But a to end we year, lower by projection, believe At production OEM true end the issue. meet per the will review play our production that's expect production customers of again, course, as excess forecast. So in the of that of role. into inventory the we clearing the And will cleared rate inventory the course, will very detailed should course, of, OEM per actual rest inventory based analysis the had be we -- OEM

we better have visibility. So

least at QX. we've also said XXX% course, we that mentioned be we than QX, of also, We to have QX some visibility will higher

got production So we expectation the rest and with that's the year, yes, we think the again, and going our line to what in from we're customers, land. where for analysis and of

with up been closely. we've things I'll because very just obviously looking of a Thanks, follow couple Moran.

improved we what volume We for the visibility going the have to QX. generally since be know is the So what in has commitments Xth January because -- QX.

visibility starting to have commitments. We adjust in more into of terms QX

market-based half, at as be these we in to the forecast So we're that kind from least than Tier well. Xs then that confidence indications of that's the looking have with say have up the the we why at and QX.And the of of QX back terms higher match kind will XXX%

to will -- level elimination visibility excess the and of of a or completely million of shipments then units inventory half. the of volume feel and in that level back the we bit towards XXXX that middle by in with the about of potentially the kind little will that, overall, of result year good So almost left the the EyeQ XX in XX production million

Understood. then certainly focus facets the Thanks And on the hoping an on XXXX. some driving for development. been facets you there's policy comment in particular, of And growth that could my follow-up anticipated AI-related Dan. increasing key expense question, in the of of

is be clarifying year. how Mobileye it generative in think understand this incrementally would I investing AI tools you. just Thank to

that converging in devoted of growth to execute continue western forward. the Porsche, XXXX many are ZEEKR, our the OpEx [ course, to those SuperVision, these desire Our all mostly are with is supporting of going programs OEM, on ] to OTAs all

to from Porsche more a western with move as the to this the a we're OEM, and acting X Tier are X Tier supplier. In Tier good resources Our some we in support this acting all cases, Tier a X other very of requires But at way. X.X.

some Tier from using Tier this manpower coming growth. -- that does existing few with need up not that and our models activity in This this As are more that a It so supporting is many production we moving requires AI, next X to car have. X in of growth. is is the years the normal

Yes.

our terms our XXXX. we in and and to headcount the more tens growth employees maybe of increases number approximately depreciation of few Of again, the higher we also approach of course, I that, cost raises $XX also salary related are facilities million savings a that also million mean, the we the growth and radar also, we some EyeQX besides had EyeQ XXXX. happen for LiDAR the necessarily military that, domain, shekel The Israeli ILS service effect platform, is XXXX, so campus. have XXXX. product in some few also of into in a We as in there we Besides reimbursement effect need moving recall to facilities. to had XXXX. will have Also, in update millions, significant tens of the And EyeQX, in in we new this didn't higher, QX, enhanced

you. Thank

Luke. Thanks,

please? Next question

Chris Our Evercore. Please from proceed. from next McNally question comes

Thanks, much, so Thanks team. Amnon.

TAM. quick cleanup here on the ADAS maybe batting So just some math

penetration. has Mobileye for I previously, slightly think or moving pushed XX% So This now, XX% at the industry in looking out mid-XX% something the XX%, to or about ‘XX-‘XX. penetration discussed like ‘XX XX%, low seems

could adoption then or talk to And China So on share, to lower XX% on some XX% this Is share historical second, about the below. we discussed XX% kind share high-level in new really ADAS? kind to first, decade can would of the us So maybe maybe industry sort it of effect helpful. market move domestics on of provide your around Amnon, of share fair that couple see math you XX%, global base of XX% be that maybe the you mix on next later chips of industry any over years?

our based I the all market OEMs, grow is in that on just on think continuing XXXX design the share had western we XXXX. to wins and

share. are We growing market our

OEMs growth the the Chinese of X growth China, of biggest have our we OEMs, XX% I As faster more than said market XX before, With market share. the share. is than of the

So our naturally. market share reducing is there

very, As have we with have fast. and I China China -- very very going we is BYD fast, and relationship mentioned before, growing zero is no

BYD. end the the both to SuperVision. design with share wins But market are like XX% only have get ADAS and continuing We low-end high we and ADAS

truly So an fast. we the will is share play because unstable market position in very, out few growing the now market will the China years. next But it's in how very see

market on I disclosed the levels closer that a a the period inventory add, refer inventory to correction is that I accumulated share three if than years. were we a longer time have over levels, you likely to based think may If think to the calculation year, that of really that we

$X So accounts disclosed, effect have for annual will more on the if reduction we regulation about which average, try it's you of in had X% X% volumes that what compound be the past. share for that the a the maybe market kind we've of year million to or per

indicates change share on So a market we our in this for forecast don't the global significant think level. that

can fit, outside to been penetration back make market. have industry Toyota, on slow when of can penetration? Amnon some what hit sort any sort a players about industry is those on go will global Maybe to basis, view being adoption, a that western All we obviously, the Obviously, XX% of think we of ballpark around standard of makes year but pretty if explanation XX%. on we on sense ADAS

of share being right? the From external going to sources, projected reason the till that's no have believe number this is XX% is decade, end to the We market ADAS, change. of this

well there. is an possibly I above I think where But which like in penetrated, mean I area maybe see there's India but in some XX%, western And higher. successful. penetration, think the Even couple of on fairly been so markets that lot the a that but have growth. still years a probably systems India, the have road of extremely growth we ADAS are market is been single-digit the production last

trying to So a now of very position have and we catch good there. is everybody up, kind

the be market a years. share going that, for our of adoption ADAS So next well over that's I to good as think as couple

did as emerging in start South bodies like we -- mentioned. adoption markets the do to in of so we add, If year, India, beta see Dan growing regulatory systems see order from see promoting we last a of do -- markets kind I pull America, start in may new the to in

Europe addition, GSR, which feature, bonus cars. is towards for not In vehicle just is United the it's just This move order recently a sell production. mandating in and or a in systems started in with States, to there mandate safety a Europe

will So what industry think few years. higher forces rates these we the driving next adoption push two the towards are within

Thank you.

Chris. Thanks,

the session. floor comments. back This closing concludes over I would to to for like turn our Galves question-and-answer Dan

Mobileye, call. everyone thanks for team next Kat, Thank Thanks managing the to quarter. to and you, management to We'll joining. for the you Thank talk you. of