Mobileye Global (MBLY) 25 Apr 242024 Q1 Earnings call transcript

Greetings and welcome to Mobileye's First Quarter 2024 Earnings Call. [Operator Instructions]As a reminder, this conference is being recorded.It is now my pleasure to introduce your host, Dan Galves, Chief Communication Officer. Please, you may begin

Thanks, Maria. Hello, everyone, and welcome to Mobileye's first quarter 2024 earnings conference call for the period ending March 30, 2024.Please note that today's discussion contains forward-looking statements based on the business environment as we currently see it. and risks involve statements uncertainties. Such the Please additional results release includes press on refer to the materially. actual to information cause specific which could accompanying factors differ that

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

revenue to outlook perspective, or generally across to and with business Based the growth believe information we product level of everyone, including fully Drive.Starting from cloud-enhanced to that, portfolio, ADAS aligned growth This X meaningful on and provided hands-off with was and development our is mid progress with our excess advanced we what single our customers well refer and inventory business and extends XX% Adjusting SuperVision, as throughout very and our portfolio. we income I'm last QX on of in digits analysis, in Tier starts base ADAS Hello, for systems consumption / make eyes-on the year, call.From inventory terms as ADAS. our Chauffeur, was hands-off some thanks in would and executing our pleased eyes-on/ as the year. QX QX expected. strategy, which current January. the solid volume joining core that have continue as we of environment.In for been this performance our XX% in And our of inventory tracking that is consumed a we own earnings in

we incremental this regulatory maintain hardware consumer was to convenience rating this hands on/ size and customer safety supports about system Initially, business the cost Chauffeur while purpose-built growth. will constantly the unit growth overall through in SuperVision. has a features to free to consistent future XXXX.From OEMs accelerate manner. QX, begin always this this chip, safety customer systems production navigation Drive advanced cloud-enhanced the and requirements, believe annualize high volume the our base Design the activity, In XXX,XXX that has off, and success vehicles, power key the product next should we of many million ADAS a projected a providing meaningful for to position expanding elevated pilot over across our and design And regulatory a quarter any to so network for see automaker. years production inventory did driverless you win believe question been in or in have predecessor, but region. address whether This roadmap meet units packaging the This all price open processing many our but growth.It per and of ratings of sustained generating volume in and in many features We to its Mobileye.Turning wins each waves continued now X.Xx geographic increase revenue of shouldn't and generation believe design can we to owned production had Our scale opportunities on leveraging future for Progressing our increase win NCAP XX this these development, accomplished we wins portfolio, significant volume next Lite. aligned the some series of cost any have system start road half are eyes into are and number safety not. global chip we to on X the that of on with EyeQX perspective, was weakening ADAS the Mobileye's on is for the EyeQX packs still of the best-ever with for that indicated excess driver key products scaling few deployed come. scale and and vehicles without towards eyes material incremental more years. than next imply wins our

in products projected those only this projected $X.X of was future Approximately wins by for our from X% Chauffeur, and For revenue the XX% billion. future XX% example, by combined accounted SuperVision XXXX accounted of volume. revenue was yet design for future

brands. of a have seen to the of months, XX since on/ rest new beyond.What's must broad year competitive and we the diffusion consensus a of have interest start a an hands is operational the free last automakers have mainstream the observed eyes is decade the across be domain from over primarily to cost brands feature among that increasing premium more Over we that this

significant have fully working with our multiple the during for XXXX very to development elaborate continue and design large and of the factors.#X, with to that to on revenue categories We SuperVision XX% house also Chauffeur, with and intervention, these now and wins terms billion XXXX.We XX in was both at XXXX more half in conviction been product execute. are from OEMs RFQs XX forward is $X.X all the or this to prospects public generated advanced Mobileye to of endorsement pipeline mid industry I'll OEMs due There mature products a industry as by Chauffeur the production In X moving on representing design these wins. of was their the of several and alignment expansion in their whether reasons converting of for additional global prospects. XXXX. with of aggregate, in of our representing end of We collaboration Group reach second out a driving betting current ability with We've interest, have and the approximately the make Volkswagen representing the of in XX% Drive announcement seen important, in discussions now Mobileye competitors. then with number SuperVision, challenges to late since a progress of compared see steady production likelihood OEM capability our on

generation for to next generation approaches requiring end in to low state built end is art As on performance expected, competing ECUs the are of announcement other in that with fraction OEMs. to high of cost.Our purpose mid the led somewhat has run to running silicon despite these actuation believe we systems, intelligence incremental optimal cost end running SoC on software delivering utilize late testing. and we SoCs. an to include advantages networks #X, SoC of significant stage novel traction in balance Mobileye cost including perception readiness a and unique and XXXX, eyes The performance on/ comes And quality. proven EyeQX in is now REM and at class, Overall, High parallel, low in hands fewer record SuperVision. stack artificial very competition.#X, as able than SoC of powering a the Moreover, of geographic scalability cost. with best our and current the of off importantly, samples software redundancy our end sensors to end production for production very our stack ECU with validated many full enables

that highway without eyes we for have true on the compute. is and decision built and and show a But testing efficient on those how are plan the one our throwing Overall, to off integration on far for no purpose driver perception long other strength between as perception we've of camera the as hours with safety experience, imaging areas redundant down an customers every can few are more have roads including assets.#X, X,XXX call and targets.I adds impact performance boost of progress look reaching seen seen OEMs a driving These one We is true the to hundreds every perception which based system mention believe with of path a with the domain, also the of Redundancy turn market of the in layers, underappreciated and to FSD industry unique from clear be and they that thousands subsystem offerings, crowdsourced -- year view and boosts hours intervention to mean-time performance, OEMs by concepts, off target initial is building the our the system provide leading #X, an that already Mobileye's competitive now many offering bridge to pleased of certain technology that SuperVision RSS, to on a robotaxi to very through forward are are everything eyes also requirements other hand, legacy for where across True from Moran. introduce to to I mapping methodology would seemingly leading intervention Our term. OEMs a who business double vertical I'm to right those achieving on are that our considerable has positive our driving area large Tesla's OEMs. really failure wide intelligent our radar quite but hours.Mobileye by a targets systems. an mean-time support intervention at utilize between group. to updates over for which desire seen by believe public value a expected we to validated eyes

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

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

more impacted into stock-based in severe then the outlook with provide key exclude also compensation.Starting back in we with were bit was They exclusively by get the inventory almost isolated brief correction. the QX decline I'll The metrics and a a summary provided to volumes, We were which aligned results. EyeQ year-on-year QX January. detail. closely

the EyeQ million chips. During X.X delivered we quarter,

million to customers new shipments, the the for profit. satisfy of all quarter.The gross significant converted decline, which inventory for In at addition year-over-year our in to reduction high during X.X use amount products margin gross demand the EyeQ approximately, the our substantially counting units essentially these

decline, expenses, some by modest with correlated timing. R&D expectation, was variable. is expenses ago was delivered due minor year-over-year of component driven and in our and in This in in The in and period. our SuperVision ASP not relatively the to flex with decline fixed units was but was operating revenue.Beyond operating is very saw was balance cost of minimal. execution above term some is pretty to to mix. related margin compared also We year EyeQ impacted gross the in XX,XXX the fluctuations short quarter. volume decline we XX,XXX spending units nearly strong this strategy this but advanced not product operating by the as is revenue, the Our do all growth The income

the to year. with XX% half with We fact of overall first the the XX continue control.On our units, that expectations, normal gross XX,XXX gross than QX SuperVision margin expected, but in initial be our slightly of in revenue related SuperVision somehow The meaningful the of with X% and to see than QX, in was the new into will higher line XXX% QX average an expected low-cost totaling deliveries XXXX in improved both year-over-year. low lower lower. as sequentially compared around QX is in to domain basis, close slightly around calendar range more volume increase margin an percentage QX to blended was

Despite quarter, to in sequentially. EyeQ more is of the item here rose note reduction This grew was normalized the our in cash so will volumes quarter.One the the return balance that inventory QX in operating which nothing TX While SuperVision to and flow do modestly in the mix positive the year-over-year, even loss, volumes with exaggerated SuperVision operating at the more back inventory temporary to in half. has was sheet customers. level by

to modestly we the course balance uncertainty on balance on projecting timing regarding in process consumption units, shipments late not inventory volume compared unusual XXXX, comfortable may this the EyeQ is maintain with our we Our that inventory analysis more back approximately customers, chips of binding ahead, it this of and and cadence quarter would to we of are our is much of levels be the inventory QX we quarterly the to as we purchasing over given There sheet due purchase that Based quarter customers By give consistent will the based worthwhile. the the specification some quite year-end up At end somehow lower be of XXX% of on expect is at QX. customers. normal in as majority million we X.X of sheet around that unit inventory our believe point, from track. is on the expect our need the orders rose volume vast than end but from Tier own shipments, level continue steady figure.Looking year. but XXXX think X QX.Please year, to of our by information to note outlook, the

outlook terms XXX,XXX it assuming XX. provided guidance, million XX SuperVision in From perspective, on XX We steadily of expectation revenue a million expect unchanged move on around Overall, operating to are the grow and expenses adjusted January to for volume year QX and we and in higher to gross shipments EyeQ we operating basis. XX% consensus.In aligned to the with continue our to margin analyst to income a sequential XXX,XXX full well XXXX. from current the is are shipments for

guidance the true vehicles supported mix in updated modest This is in portion stable providing ADAS but On overall by of the average rich and tailwind analysis for customers, to consistent a half. the as we price This us units cloud-enhanced months.And the are automotive we the million annual production is been material not own meaningful single in around on XXXX our are an in total and view OEM of that mix other If midpoint we EyeQ based to payments base implies view system our weakening of indication side, to it not XXXX. REM-related somehow the with cloud-enhanced do couple XXXX last a regularly which compared still on volume continue back down in business, constraints.Higher-priced the us quite it half January. XXXX to reflective this continue offset, paying very of of in XX over our for very chip vehicle of be demand is the level expect expected in in saw production programs we a of EyeQ appears advanced basis, our build. year-over-year due be license The back also of have in as from slightly XXXX the to XXXX isolate impacted to ADAS chips and XXXX industry forecast.

that XXXX a the rise currently which has a $XX SuperVision side, total $XX SuperVision the in Europe we more from precisely half increase Polestar continued in scaling based which XXXX on additional #X X these growth. XXX, are of the XXXX price ZEEKR XXX incremental #X, approximately EV volumes in difficult EMXX with ZEEKR can mid-cycle versus all #X, U.S. volumes.On volumes of features. in On system volumes by that we only expect half be refresh the XXX enhanced in several average are volatility.The ZEEKR deliveries And significant period X to Europe. the to of predict second caused #X, supported half. the space, an models the given first in second uptick ramping is demand. recent of factors, including: been a of in in of the start XXXX Volvo of of #X, and on company in to the in smart version basis, in #X,

EyeQ We revenue. of XX% for and the year SuperVision range expect XX% remainder on gross the based to mix the of in for range margin current expectations of the

we years.And basis in continue SuperVision, We our grow and we substantial product expenses in launches to operating percentage we long continue in lower growth our that And than on advanced be and upcoming should of in a expect 'XX numbers in beyond preparation than approximately Drive Chauffeur XXXX. as on year lower should term of significantly be to year-over-year OpEx ago. the as expected believe XX% adjusted product for that and a structurally portfolio operating expenses execute to near

now and we rate, tax a XX% XXXX to XXXX.Thank comparison rate of XX% in to terms we non-GAAP in of you, and effective XX% will Lastly, questions. continue for assume your in take tax

Instructions] comes BNP James Paribas. with Our [Operator Picariello question first from

the on margin just gross guide. So

number a XX% year declared was gross through full the it it's to or margins? was XX% the of So range that year for that remainder as the

Yes. of This lower the XX%. course, mix to due year remainder was believe But year. for approximately also SuperVision. the was of I I full quarter, that it's of the mentioned, this

mentioned, SuperVision XX%. I was As

a not it's margin. gross representative So

So it, through just year-over-year can missed the my drives I year of OpEx get the for then the the material to the if apologies XX% the the can you side and remainder somewhat follow-on up shipment to confirm question, you number walk growth? in quarter? just on And -- the OpEx what SuperVision first OpEx, step through

Yes.

we XX,XXX XX,XXX for And again, deliver first the our half. units of said also rest first expected delivered with I SuperVision track on we is units. in guidance. and the So the to the are for year, quarter,

is so for increase As for the the bucket main OpEx, headcount.

our EyeQX, new approximately of to headcount again, the R&D hardware. element and programs other design related that's headcount support LiDAR, related the radar So EyeQX, program, is wins growth our support to compensation advanced new the and to headcount, software also activities, advanced programs building design and $XXX inflation.The some to million

R&D also So $XX or maybe that higher amount. new million, around to this all offset some million NRE related Drive, to of but these mainly with reimbursement $XX offset and related programs our some

depreciation. occupancy, $XX campus $XX million as approximately and of result or million a have sites, the also We new including other

these drivers XXXX. OpEx the increase are So cost main and for in our increase

TD question & comes with from Company. next Joshua Our Buchalter Cowen

advanced added whether most one, XX mix, advanced importantly, engagements? incremental most For on and any on details and my that geographic you the the X the to updates drivetrain any particular, time first perhaps in quarter, conversion you by -- more engagements can in provide for lines the

this. take I'll

And the also we're convergence between to in to commercial X.X the to X get second technical of a been The in us as years to to all to there. to geographies, front mix fronts: and year. I partnership, in progress to and So still progress year to shorter in Asia. from mentioned, our to in making expect and that X the is half took see European, make of increase also agreements so make the comes addressed, in Volkswagen a are half activities, engagements.But to we and within the general, we steady a aspects order legal we of with I and which on more on maybe American front, making continue sure related conclude, the have fronts these that good be want just to convergence year second see -- point time do the existing start frames think will refer time --

for And what follow-up, on initial -- able given chip. to, was I guess part? change design ASP spend I about from my ASP a good that Do X-nanometer features some customers mentioned you you the much. also, extract about are are Obviously, win assume to can XL? bit And use Because the wanted on or a you're ask to incremental that metrics XX-nanometer there. X the the from guess, I just talking I EyeQXL. maybe moving I doesn't all minute how the that surprised

should of that So amount uplift. for a good allow performance

part over becomes be -- some about hear mix I'd in curious time. as ADAS meaningful the of EyeQXL on there details the So a engagements core to more just more

programs also increasing is ASP expansion. and Many include of and that win by due expansion cloud-enhanced. also The regulatory The process -- these functional the Okay. programs NCAP bundles rating also are not we chip. of the the driven bundle to node

we comes and a right ASP. increase big Any bundles, ASP higher is the would generation, QX portfolio, but the jump to base the the ADAS the see existing incremental. product which But So increase advanced in a from towards SuperVision, have Drive. Chauffeur ASP that we won now, programs drive really ASP in the do similar

Our -- next question comes

I just one to sorry, -- follow-up And Maria. want make

ahead. Go

the follow regulatory NCAP price. the to I to really requirements features just to and to kind that, changing is the without reinforce, want up that to is historically, OEMs make meet each provide generation, just allow one incremental of goal

what which our incremental same of drive the But performance kind of but can kind and higher higher features. trying been to strategy ASP. increased provide bundles, each the is time. we're gives for really pricing generation has over do this keep potential successive Obviously, keep So general, in the cost you for

Patil question Shreyas next comes with Research. Our from Wolfe

and indicating think the Maybe low I is a the closer just I SuperVision target you're XX%. XX% profitability, long-term by firstly, we as about to second margin gross think quarter, believe,

So the the about that over how towards beyond? progression should target we or next even think few long-term quarters

No.

We increasing are the on of track gross margin.

domain controller, are increases with considerably. we'll second-generation road. And X that controller, generation the production gross margin in in which the also margin have approaching on We of EyeQX now with And and is gross of domain completely the months, target few the designed the replace products future the a XX%. and our

are So we converging.

cost to have I'm a the of automakers question. automakers the of and China. a with willing systems And more scaling of before those longer-term internal the then see working as willing software some approaches, try curious potentially as expensive in you is automakers automakers seemingly outside or markets of inside think guess, we expensive to maybe but you pursue invest deploy in similar on see way? Do of I China, can this more data I'm own a SuperVision what and other But to about of you see that you at some in see trends -- know albeit if example, a well talked will China are that about those deliver.And if risk I you've a kind systems curious bit in-house. regions develop like do to the challenges how in quite the terms for

China in historically OEMs. those with We is Our solutions. those demand In-house hand competition view creates is that with because good for hand more work exists. high-end it development also

some are in-house have development. models car they So

out models there Mobileye models the are car are systems. you Some on eyes equipped. all But see

for about Now of the cost higher at day system cost of end competing the on SuperVision systems. same with performance. is what wins the systems, Mobileye's XX% cost eyes is pay versus performance.No of the will one

systems any our It's have LiDAR. a in have without LiDAR LiDARs, Some X not to have necessary SuperVision we SuperVision those system. of

eyes it enable expansion is in So needs cost. and China of is when look settings. hands-free not a performance you is system, to first advantage an and driving cost also it our advantage there.Another in it for great urban performance move at And asymptotically, REM. have on This we we to have then rapid allows

because We across that concrete and are or is to areas. off only on if scale supplier a get experience, very this company and plan drive and to Audi, together, the this none programs also the a of we an competitors not something we then launch China have the starting of engagement have XXX,XXX which company, production OEMs weeks on see competition it's think developments on the Many next only a the that going kinds technology very, difficult to definition especially The over that, eyes declining of OEMs We advantage you think, kind also we quickly.And one; deploy generation, of off and credibility.So advanced comes so next is adopting to do multiple these taken the be are China in-house the on leading a in, And that to not I quite China, step in-house in back. be is that our forth. production urban is don't have high outside is maps I to Crowdsource Mobileye Shanghai, the like deployed in is eyes-off an which made outside putting only how announcement to everything in SuperVision on currently first pressure serious to a with as of have system. the not urban can considerably. programs, going industry-leading see month throughout other all And then see are vehicles we of going only puts development systems. which generates X that next it volume, road. risk. And expand has China this really eyes to

is us product. and the dynamics to that evidence competitive what's a them that in differentiation, think this to important ensure an may have I aspect seek when most for in OEMs If follow of is for invest autonomy up, China I important that for they it's kind

towards earnings made call going some thing supported world that says systems OEMs the who are still capital, this kind Tesla earlier lean While from for to future believe that of autonomy be OEMs that challenges the of also to next kind this their was differentiator they will with be the ruling for the in investing them.And by that week today is this and in-house it statements recently key seek in price China. development the significant that in kind of big escape expensive

years. short So next the this had we development most in as with that increase at we that now point to amount best competitive believe the it the have this couple suit behind we see what time.So this the know of market this performance. is a quarter. they within solidifies last competitive of stands time we've think will need And in compete And need to And and the product perspective. long-term because in engagements our towards I best-in-class products expect lean very important with we we OEMs cost with the

with from comes question Tom next Our Narayan RBC.

The first of one high kind is level.

proof distant concept, a guess when towards this announcement FSD a them, Level for some a Level like this X.As movement road, week reason the they X isn't view But things the consumer of bit, driver far there's I as Maybe robotaxi, there's guess do or you effect of forward on pulled engage and that a them catalyst potentially the or to see that it X recent Level -- animals? could big these Plus. Certainly, seems pivot is, it you talking think robotaxis the I you towards completely Tesla X a in little now, the the maybe X thing? proof weeks the this potentially the Level halo Plus X to XX. that more, sees Level a side with reluctance on things But believe with some in a is it's separate for it's concept their a more mentioned general. of be from autonomy maybe that is is the of do that, then to question You question robotaxi version in be agree do a on front. seems

FSD They X FSD this Plus. a Tesla's but Plus. Level now is it X Well, Level call is Supervised

in all accelerating robotaxi the favor have coming robotaxi Volkswagen are we plans Tesla the ID. out in with because We XXXX. in of Buzz on also production

an for So in uplift for also uplift the any us. demand is robotaxi

Level very and off eyes and for accelerated. next X see Chauffeur robotaxi, eye robotaxi off calling of product no, see believe Level be introduce. and Plus Eyes wrong overtake every our terms line that this know off introduce selected as terms it only -- system, something for don't be we'll eyes sensors; decade decade. proposition. using It's in volume would not with we type has that road; whether but introduce road. Maybe could Plus, next the we a terms that the robotaxi scaling call of rather decade still what Now they'll we And not skeptical, in time, believe off active they because to that value. on autonomously this volume, you they're overtaking additional type in than will great cameras, X on kind of a systems, can only of the of something going off is we But eye camera.We we even be of ramp.SuperVision let's are this great have also proven systems to value happy which but it to drive in that necessarily means the is a

new you're kind And of lite obviously X obviously, the talking there's my and SuperVision OEMs ones. the won. XX SuperVision. you've There's already you've them there's won, And quick SuperVision, obviously of -- where to, there's regular of follow-up. version X more The

curious do SuperVision SuperVision a those Just OEMs to those, XX of if of of of Lite that different talking on varieties, of ones already those think kind majority regular won, the distribution? that How the or the you outside kind kind are you've you're about of product?

I we potentially the answer and will but in the just would are kind lines. camera, a for on actually And to SuperVision SuperVision future other instead base kind lowest is for. offer is possible say. demand their which SuperVision, what diverge today, maybe will continue controllable the the that in parallel only, really mix And in functions lives ADAS very Lite such advanced next with Chauffeur an And SuperVision type looking because then to with a to both. have are a this improve vehicle kind the or One ADAS which think this base their What be will -- all, a And lines into cost has car front say.So That's and of this see the the to and we will will for costs.And Well, that us, of of see changes OEMs base ADAS generation And low of coexists we the in see the to to next camera like cameras kind consumers, radars what mix, it's meet just it we're to X or of very SuperVision. as bulk of it's Chauffeur, we build in addition will growing and the of engagements X SuperVision segment, let's that, to is X SuperVision extension propositions OEMs. it's have volumes of Chauffeur a some Lite. regulation. for vehicle of be looking trying full compared system, front balanced which or streams. X the lines to kind first still will this we will offers end, But have competitiveness our cameras have and of low-cost at for cars, value way we is, the radars. the new Lite X between it

to are Yes. engagements clarify, majority just around just of And of the right, of vast including design the discussions Group multiple the products, Volkswagen win? -- the these engagements most like

Yes.

Barclays. with Our next Dan question from Levy comes

with on that's Volkswagen now a known. start more question that to Wanted publicly

could what's using eventually VW bridge functionality your us stickiness how think the would a versus the this enabled, components, extent domain the What's be little of the the maybe So I much hardware you a that? split? release, of I regional of just program, maybe that's more of you going the to is parameters controller. give some your software on the actually at Maybe for point, commentary was And some solutions. then guess, comment agreement use in with or the on, just that there is in-house them could this solution

of of Group, with is Mobileye position terms parameters in a the X supplier. of Tier the the Volkswagen deal in So the

and parking working for we end-to-end for us, responsible the the for other X hardware, example, have suppliers we're with Tier systems. So

we this be perception DXP And are entire a a the in us control, X brand. Tier fine -- for system the for full supplier. full and So programs. a Tier additional customize don't software, the terms that a to includes we supplier.So suppliers perception, many driving driving component to of full policy, But in the we X are responsible X I expect Tier the program, each tune the experience to end. there's end to are

that very of that are the reach of performance that eyes-off experienced able to for industry deliver, moving at point, the of validation but believe I about validation to systems required on beyond many, far. has in-house division is still In deliver the was years. have division anything at and system are for of comment full software that strong. our be table think of the they're an They very The force.And will The operation software in that's the called in kind stickiness development, terms the levels that CARIAD many enormous. point, -- a some maybe is to high required we them they SuperVision the we what so very, some

something to So have stickiness very you I add? believe the is strong.Do

a more Yes. little I may add color. bit

today going announced brands, deploy this the many of Drive, for addresses plan Amnon kind all, years just to with car the brands to is the on. that partnership and the still product models, mature. case maybe on, in are the with series cars, different It mentioned, many or includes other Porsche, in -- it's it Group, for will overall Volkswagen of and things Volkswagen they're SuperVision, it Chauffeur are partnership once a will indeed start that Audi, architecture launch after to of in some replace live many to architecture some production. of so existing onwards.And It for our it's many, will that XXXX First product aspect, maybe plan be stickiness that of years deployed and Their there this will most in the point models in the terms different production. as that working case Lamborghini architecture in we sharpen but includes car in-house But it in a in allocated not it come to is will exists the activity the production, future specific this there be many future a today next-generation time the mature. part in includes that premium stickiness, after the architecture in materialize.So reaches Bentley, XX and are it in will deployed that cars

SuperVision. sense maybe what ago, the there highway could and any in rate of of take throughout confidence you to free the wanted lineup if a could a I commentary, I something some ZEEKR be don't future know to follow-up, offering be fairly rate that this high the I think of your or or some Is was have a a ZEEKR get to of where you take go as But going this you feedback. trial way China just XX-month provide any XXX? even is functionality? is then fit time this And ZEEKR standard to that noted

really would discussions in take it I that will are a standard rather China. be rate of fit to the a We type functionality standard make in be with rising competition fit. convergence of it ZEEKR than because believe the

comes Samik question JPMorgan. next Chatterjee Our with from

Cardoso Joe for follow-up myself. a on on Maybe the OEM engagements is Samik. This

moving You a X now, to guys OEMs versus X% covering progress production have XX% from now ago. shown XX good year

you the And Just relative of after, a characterize think change to views like you ceiling given it? X months let's to, that developments now headroom call least in in how XX% a you're engagements the ecosystem curious, your kind you it, to your year left ago, approaching the of you would already relative that have go ago when X, that or have has the peripherals? even under of production, at and

Yes.

of of very and we hands-off we differentiators outside even in we terms in there the build of time is our builds XX world.So as that are also today, we are in #X, business the more today done product us year in one after kind competition of to negotiation in cars. we a kind of seeing moving have the more where China support increase. the as we secure Amnon have multiple and more these this the OEM, that beginning. year-long early, of think these and them. the the with to are the the us flywheel to more what with of these be I this partnerships biggest think these in is in know activities which what out today, frame, is announcements And available hands-off stands credibility in reinforce to companies the parallel, is supporting middle prepared market about launch capacity adoption I And to this effect on and mentioned, order today And support on more car OEMs capacity in the is the and engagements, will just at position towards pack kind last we're interesting, next type of working leaders announce the not our factors laid for shows happened with which Dan more that this.What as 'XX-'XX than the terms our that we kind let's of development it in more what's credibility, products of the this have and helps of engagements front. that our think OEMs engagements behind a needs this also, amount with innovators the we become also curve advanced as I China engagements this majority OEMs, the say, line. #X, of

follow-up. quick a just Then maybe

Just rather. one second question my or --

of at your on changes situation. you've improve they're made processes tracking the you your Just that wanted and customers put just how to today? into Can It have place maybe destocking you like to sounds progress. around talk working touch some great the inventory visibility or to or

Yes.

that in So we a think last situation experienced discussed haven't call is we the this actually it before. I that

in did place. we put some processes So

inventory in per this For actual year, actually and between what the we OEM, we've what QX, shipped expect based production, I production production and say, global on rates can would actually QX actually analyzed fitment we ADAS for gap we of the full the to year-over-year see the to kind growth the exercise did that the issue.And at comfort us ship if and year. makes same it We that sense. we looked, course, of for also didn't gives have

full the for again, global pretty expected taking year, which good. So the volume, looks

our it's top increasing customers. for So

versus QX indications Looking that that orders and similar order to for aspect.So the get to QX, analysis at indications. it's is the QX, in customers' QX, a compared numbers, step-down our outcome approximately we encouraging get we which

visibility that with from But get some but full verification or down, top actually to the indication, In of we terms customers, data visibility the process make -- receiving them, data we that. have received again, some between X comparison are aligned we our and for have don't not something to verify can, sure a only with the we we have in expectations. we place for the

next with Baruah Loop question Ananda Our from Markets. Capital comes

quick could. two me, clarifications I if Just for

have you or the the given into well. the mid-single-digit SuperVision then half the different of quick mix guess, as year. And it SuperVision was second a to commented guys follow-up it first something back of The expecting clarification will I And I look is ramp? sort on normalize clarification is, to

that the we is issue inventory I not to SuperVision. related with think have

Yes.

is track. EyeQs. SuperVision the to related It's on

full the half year, we about volume have beginning for but shipped believe the guidance XX,XXX, year. we follow first we it the we above our the second year guidance the expectation, would the which the the number of the was quarter, at half guidance, of the according remaining XX,XXX. that to of And is This is gave

I heard or -- the comment is for heard XXXX ASP. thought But completely. $XX, I for what down this around was ASP year-over-year. ASP mishearing one be then I the clarification and second me And being just from said then I being not also another on heard up about And may XXXX hearing XXXX. hand,

So -- just

Yes.

versus into the and account $XX, mix SuperVision that EyeQ. So the takes $XX of

ASP for of vendor also as we course, higher with the the a are So SuperVision hardware.

normal ASP $XX of total in segment.As SuperVision as the higher. mix is the higher So the significantly again, $XX much revenue percentage Again, is for XXXX, mainly driven of or a ASP the ASP EyeQ ASP overall EyeQ ASP, this for in QX, the of only And was by revenue. million it's my a believe and this comment, in represents -- ASP this was don't shipped year. the that X.X for lower we chips. specifically. is QX We And

is obviously mix the -- has So changed.

ASP million For example lower. this for higher a -- the so in example, then percentage some if out of China chips, programs low-cost became X.X of the is

X.X million it's quarter only such deliver we very a when in chips. volatile So

So EyeQ.It's in or $X.X. ASP do about QX expect and we an increase $X.X of for QX the

the XXXX. compared EyeQ and total $X.XX expect and we the as to it level $X.X, as down that approximately rich we XXXX year, normalization ASP year-on-year, XXXX in continuing go very mix did yes, of in had to a the On

impact XXXX, impact XXXX a in the similar and this modest So we a had in for expect year. full

Our from comes Jonas Stanley. next Morgan with question Adam

programs. and situation Amnon, the Well, Israel full to Mobileye Am share today, to same necessary adopt the and nor you to Amnon? train on months full way my that community still team first, AI Chai. sufficient LinkedIn during self-driving I'm I of Tesla's to want self-driving ago, generative feel ongoing approach people Do the thoughts just networks an decision and posted you X the Yisrael neural end-to-end quoting, for was, to neither

indeed. Yes,

we my the contradict the perception and sole have the we're mentioned Tesla is in that that to on that I remarks, does prepared and EyeQX, made. Now not end-to-end end-to-end going technology. actuation both point The

there's does you look on is is a top reliance be of networks, can and regulatory that neural that engines like on experience the engine to at strong the you multiple what it decomposable modifiable. system they Our the is that our view explainable explainable, body, for you a be data-driven end-to-end a language competitors customize end the in the some one order explain at needs of can and that is driving networks, And to it the if very Waymo, to that same day, modifiable, system have of to very, designed models.But create just OEM. that

So we're not against end-to-end.

end-to-end are for the being system. engine We the against sole

I on X, perception right, actuation. end-to-end So how engine, ago this we at also months what a call January. and an few the presented includes build which multi have to back engine, another perception I'm also end-to-end Mobileye's running the the power by EyeQX.And I in is of the CES engine,

going a videos complex this a actuation So end-to-end, a more an it's from subsystem It's component. of is to but as system.

your of Or And internal this know architectures. for just skeptical I call SuperVision. follow-up, as And there's -- as you've would include whether internal are people combustion on might vehicles. be combustion design your that a have some wins also little customers some a to said OEM software-defined

So fitment I visibility would SuperVision you in on you your based is, while internal on expect, actually -- architecture theoretically a possible, when vehicle? production when combustion my guess question would of -- see to practically and today

in models there of encapsulated going ADAS vehicle. system is X win, ECU. doesn't a them to models, just Group combustion our It's of be the Volkswagen system. it software-defined combustion It's were right, engine. like the are engine XX% so So be really And models, a is to have XX

very software-defined contained. a is the all And our self So over-the-air it through ECU.So everything be have doesn't to vehicle. update is done

as year vehicles EVs changed percentage future follow years still they future that future or their the the of terms versus decade. in on this, that going that of If for has technologies. last is leading more to their engines EVs plans aligning cars a maybe may What EVs are are opposed balanced powertrain the terms be on up all EV the the in today for may under more towards architecture, and will for hybrid, plans in combustion their that be based of a powertrain means few assumption some bit half on the I in of will some said a think to ago, back moderate OEMs I the that become the in OEMs this little way but kind architectures software-defined

We one can more Maria. question, take

with comes Chris ISI. Our from McNally last question Evercore

the hopefully second RFPs, or not kind least, bid where it OEM in into of the deployment we old would this RFP the on we in out SuperVision the the of of the legacy could half. time but thousands at I led by approach wins the if wins can the of Is per vehicles broader maybe fleet Audi details love maybe i.e., some past model-by-model potential sort of dive of DXP OEMs or to type with Last, sort RFPs. deployment to for seen we the for we've know frame? look has hundreds 'XX-plus potential have Porsche a wide the

Yes.

specific opposed kind launching and vehicle vehicle it's is but a have for more what we -- see plans what to So models. is the to OEMs platform question as of we normally, for models, specific in do

-- and a by include kind one rigorous when and and announcement, one will launched on kind car forth. cars will a so can vary models in deal, with models It's platform a normally, of it had of the the course. covered as a few all we car to that XX vehicle include can so a brands their with which plans. each OEM. car we're going not be So and be volumes with of multiple with one can of we to and according multiple But models, And according OEM, bundle models with process we it Group, geographies Volkswagen have then

eyes Adam's past, for now I follow-up. this performance, in like miles on least when SuperVision side. for the to you maybe we Amnon, to could XXx Mobileye sticking And think question has If and follow something for the it at like autonomous evolution something Supervised disengagement to we better discussed topic hoping of to compare the full self-driving. per on were from

how up Any on the think lot stacks competitive XX. I statistics SuperVision, as how again, system, Version were today? think Supervised a on those you of a comments eyes thought pre

generation the every time, over-the-air with are No, all targeting improving EyeQX. We or so. right? we It's update current the X months have

subsystem, intervention mean-time system, intervention.On are prepared or on hours achieving highways, just it's remarks, the in X,XXX of close less hours camera the between about mentioned but urban, X X XXX so a of intervention hour my on it's I mean-time between We more to between as than in highways. mean-time for EyeQX

Tesla's terms the these on but anyone is kind what don't mean-time that between in of know we how intervention things that, don't I Now we on of the measure progress. know if I measured Version XX. are KPIs

turn There further no time. this over questions at for Galves to the back closing Dan would comments. I like floor to are now

Thanks, talk we everyone, you. will you thanks and for the for Mobileye your team the time, for Thank quarter, and to next session.

This concludes today's teleconference.

your you this You may Thank lines your disconnect for at participation. time.