Mobileye Global (MBLY) 31 Oct 242024 Q3 Earnings call transcript

Greetings, and welcome to the Mobileye Third Quarter 2024 Earnings Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Dan Galves. Mr. begin. may you Galves,

based Such everyone, Call see to September for differ that forward-looking release, Please could press involve Please risks Hello, includes environment XXXX XX, Third 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 Paul. statements business currently Mobileye's welcome specific results Quarter accompanying XXXX. on which Thanks, period uncertainties. on ending the

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

Also Nehushtan, Thanks. And Professor Business us Shashua, over Moran and Strategy. Mobileye's joining the Mobileye's Development Q&A and turn President I'll CFO. to and for is session EVP Amnon. today Joining the on of Nimrod are call the Amnon CEO; now Mobileye's call Shemesh,

to China XX%. the in top those OEMs production domestic sequential the everyone, dig X% our increase XX% and was shipments been X% of for earnings with automakers overall accounted with We a joining decline On about X% has as by deeper, We closely outside in for top overall OEMs our reduction our Hello, were revenue as Starting thanks Volume were believe This outperformance customers expectations, QX the volumes shipment the fully in view mainly outlook volumes. second year-over-year results. is the stable. aligned around EyeQ, has QX. half If QX QX our basis, and we down in with was versus normalized. decline end that inventory market to XX globally. another in consistent down QX our was an sign revenue demand. at a customers about XX, compared to call.

believe action business. taken, of a that much China area Operating easier later get actions now the part in-house below quite future be cash and the over half in are the in million be at as compares QX. of Operating well $X discontinue slightly in level as flow strong in smaller over expenses QX. XXXX. on OEMs in flow cash our expenses billion was of This total similar as million to our Comparisons efficiency development $XXX other annualized first performance in adjusted I will QX QX to in in operating can annualized Based of XXXX. the operating should $XX

like established reflecting spend Turning objectives to on ago that markets. Mobileye's minutes return public Phase to strategic X future. to to a would of few the I the we the several years guide

with customers Deploy our integration Our relationships in point objectives our and Develop portfolio, new proof and a securing based for our core are supervision advanced look design beachhead product to position deepen our to with Chauffeur advanced opportunities into with products EyeQ-based and secure including when long-term a X SuperVision, the ADAS as product and present follows: our customers launch themselves. core wins customers Drive. stack, software as time on China cutting-edge of quality global customers AI expand as and the on technology by including, growth. EyeQ and

a level maintain high profitability. Lastly, of

progress. major to and terms operating XXXX in and up unforeseen XXXX experienced in clearly made have strategic substantial for But we the expectations. us have we top believe of set Now headwinds we growth up line and XXXX intended that market have impacted beyond, objective, leverage

top of ADAS, XX customers of volume represent XX% terms our auto of more our global current than in and XX% production. First, approximately

we the all of The these with our these no us ADAS of early wins we projects from new have challenge XXXX, OEMs emerge vast existing to majority China, for follow-on design into these competitors extend customers. through XXXX across or seen look we automakers. have business XXXXs. of these Outside If achieved

testing data challenging performance continued with of the We unexpected tailwinds ASP additional such additional adding benefits protocols, believe opportunities and creating a very for of surround leader from processing ADAS is scenarios expansion regulatory sensors. to ADAS. higher us required that environment technology the and as Second, end-of-decade as require are analysis systems provide expected

design or and so The an X point as in with the engagements ability It wins, customers successful as critical advanced top other led engagements important production a to interest turn OEMs. launch Volkswagen China at was from proof catalyst surround time have with X. Including programs the global our XX and customers. in top of the of now of other Volkswagen terms our for X we we SuperVision Tier of IPO, win Group, the the that forth. XX of X of out advanced was our our a system as number in a the on SuperVision products Group On well note, which had predesign ADAS, with

engagements wins production the agreements half major predesign of these expect second acceleration growth of XXXX lead for Beginning set critical Mobileye. of we Converting where advanced a us to the is to for strategy. in to up phase the second into our products

of commitment. While remain by the believe conversion we to that to is strong we these signals in difficult engagements exact and given timing C-suite OEMs confident predict, many endorsement actions

increasingly hardware confident terms the we cost and stack, are of high ECU AI-driven the in of between in by and software performance our measured meantime of best Finally, the providing execution, intervention. globally critical combination in EyeQ X terms

design performance progress this the scenarios wins. demonstrate of customers EyeQ using world to X in a been ability hardware has continued The driver to towards key

technology, we believe terms It's detailed technology ever. I deepest commitment, the our exposure of our reported of what hours some so In matters constrained. AI general approach is representing and to methodology approach, precision right and Shai content, month, the and in most where recently problem we which earlier compute take it specific and like self-driving but this is most myself out X solve requires AI is that tailor our posted presentations believe lays to compound revolution edge the it a of

accessed link. be to Mobileye's send page out or can just he'll you It YouTube and reach on Dan, a

eyes Day with, line analysts current sight We'll Volkswagen have EyeQ to significant host can and used latest our you on are X specific at on the in of investors way. Capital included improvements current we to December. Markets Finally, excited end to the an we're Group scalable IT a demonstrate importantly, robotaxi and our even supports of sense in and driving to in production technology. in we the a vehicles to rate deep system intervention where go be real-world demonstrations products, we give the Munich SuperVision X-based are advanced that of global will generation high product that technologies Then plan other engaged more OEMs eyes by of but that

are that needs and driven massive edge. architectures reduce of improvements across power innovative change transformer-based step ways end-to-end by integration processing techniques database and our approaches stack, meaningful at These utilizing our of unique the

we'll which on our be customers. Chauffeur can for Additionally, SuperVision, production we learnings -- and Group the of which updates the provide can Volkswagen of progress Drive programs with for leveraged other

the when over value product I the we'll of now Finally, and market a come. to of wins they call provide how comprehensive to landscape turn will and Thanks, design our advanced framework Moran. the overview

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

intangible exclusion acquisition impairment all aware mainly my is and Mobileye non-GAAP Intel's begin, in exclude amortization on non-GAAP of which also in the to in please related will assets, numbers profitability the I the comments earnings Mobileye's measurements to XXXX. stock-based refer be goodwill is Before primary compensation of that referenced -- release.

was August. down Revenue outlook slightly the color back Our we X% QX QX in provided exceeded results year-over-year.

related per mix well higher combination XX As EyeQ Gross more Amnon was fairly margin production to was of the factor largely with slightly was XX%. X mainly EyeQ But of and decline margin. in our This the China supervision This bigger expenses in sold. ASPs was down different lower partially gross mentioned, which down top unit offset expected generation our OEM, point. expectations. in higher COGS given significantly were particularly line global was customers. the EyeQ-related for down volume significant by than as Operating was as to the a quarter,

to on development driven approaching Chauffeur spike Mobility operations, XXXX. -- Group expenses increases support year-over-year depreciation, have SuperVision radar, VW imaging Higher headcount a as the technologies and program customer throughout production and spending related higher Service, testing program, and significantly

LIDAR about restructuring of associated accrued million also QX. expenses in the closure $X unit with We

than Looking ahead on which should spend operating QX some somehow QX. drive OpEx, margin. modest improvement in we in less expect to

level expectations, on around launch More dedicated headcount average importantly, non-GAAP due OpEx QX low yet XXXX, relatively to or be operating the either are LIDAR quarterly unit we are at expect in closure of to volumes or products the expenses at below to that to hold our are million $XXX able today. and stable to

much of level. larger that means this company, capable our of scalability of a the OpEx level is the supporting current Given revenue

and Turning income at goodwill a income is million revenue total and units. adjusted to narrowed GAAP XXXX the impairment. to based the XX.X between SuperVision XX.X is guidance XXX,XXX operating range. and to XXX,XXX operating between and maintained midpoint million on guidance. the guidance lower volumes The We EyeQ revenue units due the

rate assumed. portion all expected the prior appears are than is XX,XXX -- of lower to likely The you our now As September take incorporated is This with around units, coming somewhat as X. that but aware, half volume QX SuperVision guidance, of from. in SuperVision a only of was be to

on time the spent call. China We a lot on of prior earnings

size the bit a dust business. we thought the to it would that Now helpful settled be has

about revenue. in in a percentage the vehicles units about outside to SuperVision OEMs units at overall whole In China as excluding sold for represent IQ terms SuperVision IQ in was EyeQ our SuperVision for about expect China OEMs but shipments units revenue, revenue, X%. and to QX or results, units XX% similar vehicles vehicles to -- into XX% units a China. at China This China QX, to The of of China at represent and X% for non-Chinese between split our of of sold about of producing China our we local represented sold in SuperVision X%.

because note Please are and won't disclosure. units quarterly in the shipped quarterly currently revenue that sold these SuperVision China geographic that the in to exactly the filing domestically all vehicles in the region or are numbers with Whether disclosure exported. included match

dynamic Turning cash working to generated expect the the which quarter. $XXX net was we this approximate even $XX in in adjust million if for continue flow. fourth adjusted capital, we we higher quarter, The in million was operating income to QX of benefit an than

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

[Operator Instructions] question Joshua Cowen. TD is from Our first with Buchalter

parts units appreciate you Chauffeur thinking and you're recognizing how and about, but the of moving Chauffeur, I and of regards gave maybe uncertainty SuperVision and around for to just a asking particular, talk I there's apologize China. in SuperVision out about given with all and lot that more, in for on could details China all you volumes, the XXXX

resolution for Thanks, benefit first than early the Josh, XXXX. XXXX XXXX. It's half the our the specifically digestion the half high-level run to in point for in customers words, question. still orders units We'd of some terms other in a to of around comments. to happened Dan. talk but is shipments can second million understand volume that next I year, expected of XX rate working too starting make from This the of actual XXXX. inventory with is In expect better We're EyeQ about

headwinds volume. to all customers, be customers. our Then for kind XXXX, to facing think XXXX. in that production whatever it's Many And growth or of of top XX that would our on of but also in the those in it's affect are focus in decline included that we in production expected expect continue customers expectations China these important have OEMs those to been the reasonable

to outperform within from the continue as those expect the customers. mid-single-digit benefit of ADAS those adoption and in we'd some growing Next, customers to range growth of production we share

more outperformed We bit we X see than China points. QX, in also local could example, headwinds For by from OEMs. a

million XXXX However, around forecasted our units. total shipments in at are X.X

any declines here So would material. not very be

any forecast auto we'd we the last still have been incorporating volumes on materiality the that potentially say or volatility near-term Day years a to Finally, the really this with reduction SuperVision, risk the lead third-party get buffer much visibility time, the to lower expected also suggest with some revenue impossible has reflect to has the we're macro We'll this of could understand again, on side, so the is by in over kind On time to than in the customers in us it orders for XXXX. to at been. at to working Investor December today EyeQ global to good it's 'XX, volatile X XXXX on also that. have specificity for January more

give either both to ASPs can about from a color for like really normalized with West. Western a all in ADAS. have for ongoing is in normalized sort are follow-up, China China? core bifurcating now feel things Recognize the going there's stabilized particular, And seems ADAS -- again, this growth curious, it things what from you like And us like certainly you be core again, Maybe guess your market how and to have look that, it feels of and thinking I in versus I'd inventory growth share west there. the also perspective, appreciate units customers, core for be better specifically the specifically ADAS an or could what at unit I is there. stabilized new get a that my volatile, dynamics into

Yes.

growth it customers my has XX production right? in in continue of outgrow been. would their of think expect because digits ADAS any already it's mid-single would would by answer, have which of reductions within to they we of I there because share kind adoption kind those than first that kind and our in it's China, customers, think smaller Like global significantly that growing of bake top within to I

term, the can these over next comments, have start And which won as I we today, next so mentioned the which levels, X with years, comes past happening add also, year. not well these business our to win the customers, -- Amnon created within have of term, normal near position in majority opportunities decade. OEMs we by our into -- inventory Longer business core going ADAS customers expect customers. we from back to vast the to that opened more existing are secures our tailwind

So not that existing our from will ADAS OEMs our longer-term are winning growth our market share today new increase with continuing with as in to customer well as volumes come business in customers base. in

to that OEMs or enables Our maybe us create new were deals that diverse types OEMs. of not of circle product portfolio previously are attracting closer

answers to good from set more push next In to with sophisticated also ADAS be increase for more the regulation addition requires in ADAS mentioned, regulation. sophisticated ASP it all the and This this, to sensor as to question. few Western compliant content is in a in the Hopefully, tailwind Amnon continue software the our also years.

Delaney Mark Our Sachs. next question Goldman is from with

Yes.

your detail more Were into days went SuperVision the you solutions. solutions, that First, Mobileye there ago. And your and on been any meaningfully on engagements having around could was with I hoping have share more you provide advanced for against decisions XXXX more Chauffeur. with or the progress customer engagements specifically advanced color you're XX these delayed compared can to

this. take I'll Yes,

the the there no we've more that win in our -- And make and next the more to to see answer position Mobileye launched in we has been past in question. OEM is evidence these probably the suited product So days advanced products of also continue years and all towards few competitive XX are be engagements made that progress we'll decision to best against deciding the our majority your and of with first opportunities. to partners had and

example, the components For our are OEMs have of and some process sensors the system in necessary already solutions. securing other for advanced initiated that

not now the into in seen the decision, are have next and delay rounds and the we of negotiation towards commercial OEMs evaluation the a final stages Other material final year. any

decisions the in time invest are progression dynamic, the OEMs launch. necessary not and to their secure and such decision-making lines are continued that next a we in our continuing it's make control, enable to product mentioned, a entirely and Amnon all to it's system elements we that see As do little bit but a towards

company understanding you was OEMs its at see volumes revenue continued little cyclical question talk Western you and guidance better weakness, for Maybe despite The inventory inventory that's just second the My year on how environment. And around more left guys Tier is the do check this you're a year. for much for next at to And unchanged. production Xs Dan, could bit from and heard, risk comments up your built you your inventory but closely inventory customers? how having I around tracking and/or you know of OEMs. see that levels? been want on any outgrowth there more year, at especially

Yes.

per the trend we're the by the encouraged of year. So se, much very

is modest in something QX increase kind it's a levels QX. inventory, belief half. demand. from that, to issue seeing QX to normalized So is of QX increase very Also our of again, reflects first significant XX% QX, from a from see the behind and believe expectation on or the we us inventory than set but the that QX we do reflects to market EyeQ,

QX and first the QX half are pretty the the aims of again for year. So which inventory similar,

for on decrease further happened. As production that your question

So between year forecast. OEMs mix we versus had some our change this in last

launches have So China, for the but better. that of year. some second been the used, part bit some product were we had OEMs OEMs in local a

was aligned So but there overall, change with some our in expectations. it's mix,

Our is Bank. with next Yu from question Edison Deutsche

very on for X there's obviously, timing the sort again we OEMs. the seen you the of preventing are big about big delays programs realize not First feeling program important specific, legacy any how comments we've the XXXX. the from made some you're inflection, about and rates? launching some take of is very but some Obviously, I growth

your level of those in launches. kind wondering confidence So

Yes.

with are far, So we the project on track milestones.

meet and all So we for major continue of to integration. the milestones execute

back good So have the in onwards half meeting XXXX from of launches. currently product the and confidence execution standpoint,

fronts, color the potentially have delays. in their Day this to this are we'll and us plans own reasons have intact December. we unrelated more we Of and Capital at course, directly. considerations all in to make and Market point, there continue can on our some lead progress due -- But could be OEMs changes on provide to to

AI to. on constant sort the the of those think, focus just at of thresholds. to as the you there's thinking thresholds then levels on there driving Can been disengagements, providing how more obviously, what just performance been kind lot there's time you're more of a and And terms autonomous road for interventions, late out reach the least guess, of of trying of, about remind who's of various on line especially you of of for that envision interventions us in Understood. side, metrics I or kind I map coming kind

look there intervention just in black complex the Well, failure. that is kind notion system. reproducible in much of failures identifiable of are it's we failures, you system, you believe the are classify the -- -- than when rate. when more There the about swans failures type

So looking have rate, when are a X you're you there intervention failures want intervention about certain rate. that to

or come a an For surface it. to you not is if error producible, have you're example, failure it to fix if want and again.

way now outlook very intervention is made comprehensive Day hours is so so. in in by Today's we'll at Market very hours of intervention publishing which and measured roughly or -- explicit XX our SuperVision a -- which Day would and the it are be of fusion how point measured way extensive safety and in about the sensors the Capital in December. rate talk our Capital We in

for hours for terms together is an rate another of when active and step have EyeQ rate, camera have put which a then eyes the X, radars the off line about of will intervention function system. X,XXX in intervention We just for on of generation Lidar you supervision the system front-facing sight sensors, the and crucial our next subsystem

the credible of hours and the be system a at off intervention should for with that. a Day it. It's published at are about which rate of to the presented also see or would of achieving to the of us Markets be in report, at intervention system thousands details rates driving. hard a tens off day, And track And safety more so. lower eyes would in month Now and Capital we the a than of least end on eyes be

from Dan Barclays. question next is Our Levy with

on Trevor Young today. is Dan This for

discussions question and interest. I had Just first, customer a around

post any the cite robotaxi the there's in any they associated we've day. from And changes changes advanced if competitive your where you've been Tesla? seen meaningful pressures seen, interest As potential products in if

Yes, I'll beta the about answer today.

the day together market Waymo's robotaxi as revival I think of the the equity startups. in reinforces the months, This at comes round, a we been the the world. have past with new cap high which promising seeing is Robotaxi investments big of vision are realistic what in of test end

robotaxi Verne, months Base Now OEMs few Volkswagen's on with activity mobilize production by is we platform, and -- and dissent the which a this on the have helps we announced pipeline. shine based ID in light ADMT more which VDL and own and like ago, Benteler Holo, our Ruter platform

So on bus well. and customer development AT&T is platform ID the leading the is moving the

of make goal the in affordable building advanced, Our demonstrations during a an is very Day power system we'll in dive and taxi self-driving for deep global IR December.

Day in focusing is that we kind SuperVision our activity Markets and in but far have very we'll we last and on active a Capital the December. robotaxi, the we more discourse something about year, so and of been Now on make lively this past our on it Chauffeur, year, much a have focus in of talk didn't

And follow of a implications on robotaxi. as Tesla's just other and up the to result OEMs

So step see today's similar the to realization be OEMs And OEMs is before that and systems Tesla technology quick today. generation. a system. leading companies, make technology capabilities that generation in amongst function towards this systems progress a to compared We from seen new next of appetite very, and also robotaxi driver-assist understand we've they like the performance Mobileye to going very improvement companies

to and our And result, their past it. them, it have them customers of to has as for maybe decades, understand kind of the looking they line It a identity ADAS continue of and performance. important top most X in it a for be to be within for been the will important as brand

to Now different incremental something than them completely from required be simple going a do to improvement.

functional these of design just and is project with really deadlines potentially some to think program our hardware the and design, years, with the software created to this engagements. also candidate and most in all you a us reputation, a involved want how similar robotaxi X for And as of relevant surface in helping with also out, this performance, robotaxi especially in and perceived angle everything that a way to being Amnon if in Volkswagen are us next we And execution solution robotaxi. meeting into the of SOP this cases, addition, laid about X OEMs in that play leading an to have opportunity chances

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helpful. very That's

noted including going where for from you or coming not as Pollstar Could from But if -- give a just XXXX. appreciate I for SuperVision the XXXX Just to numbers. outlook without a follow-up, you're from give trend you into to sense an XX,XXX getting the us X directional of the will ready that, volumes help incremental where a change sense specifics that that you as just half are as volumes of to XQ will. how maybe

Yes.

the run got the only some what I you've think for kind -- that half. that have current there are right, starting that is. to upside right potentials And point, in terms the second producing of there in think you rate So is of we were then

don't risk as XXXX well, and visibility OEMs have on downside Chinese but with some terms have then again, much as visibility of we terms you have difficult is also working do new very in You call. OEMs to of that we startups. well in you're customer But -- in Chinese

starting for looking at information run XXXX, but specific. good a we have So enough I really point now rate, current as right the think to get don't that

Stanley. Our next question is Adam with Jonas Morgan from

up your the customers this understand and you keep earnings buy view are and annuity So ADAS in existing but with stable, you your from maybe the next new that and of basically maybe the and have combined those can more -- Drive that last, enough something would really question. And support and renewing earnings strategic of -- that CapEx the R&D options customers customers falling, guess the Is power is would When see still quantum the longer-term the kind decade. the annuity that with visibility broadly required growing stream of your Chauffeur you're is capital with an today. it's XX% wins we in stepping sync I your I that growing to fund really, to that for that SuperVision, to a timing require it have on or stream you that, will people in stream outside core a annuity call spending thing it's get revenue and they development? partner? step of a up? think working essentially Would But

-- are OpEx. $X -- we're our million about we talking spending, $X if you of Look, analyze billion

of increase is of millions not increase we I think that for XXXX, we immaterial. than those get It's we'll headcount don't this in would win, we the sites Chauffeur tens more very programs, of something need dollars SuperVision budget. once some need and again, that. really There be in think specific certain design to local But customers.

expenditure, what and of the meet all let's terms repeat goals. in to we think have goals need I we the

surround production OpEx is future million and forward. investments support not X And The are in around in not that evolving $XXX it is SuperVision, this there Drive. OpEx current to is ADAS programs. on billion purely ADAS. this not we're is starting to we more just growth call related production AI and -- $X have our to simultaneously, the field. more support completely and One multiple to what things $X of supporting the ADAS, require going give and is sufficient to testing Chauffeur support area an to that maintain of out are color, -- and billion right? to in is supporting which And To It's fuel we to complex. becoming all sensors, that of Programs is support ongoing

numbers And So growth been very have. with inventory issue has Clearly, of the in give didn't well future revenue of expecting though normalized. I that the of for meeting the think XXXX, challenges just all are because are level even we that to XXXX equipped income we we we in terms

cash operating have. billion cash both of flow flow that to help a expect we us need cash our acquisitions have around growth XXXX. unexpected today chest and So the we'll be $X.X and in to to in war to Not XXXX the in than we that mention operating higher in

I what think we support growth. all we have need our to

Our Gianarikas next question from Canaccord Genuity. with George is

curious been whether the if you've emerging any there's potential your in just of that about the in you on market there, customers? Wondering discussed progress past any have made I'm you progress to any chipsets. as some update segment

lower if you you -- if solutions emerging I the markets, cost George, So for if understand to refer correctly?

Yes, that's correct.

Yes.

X track partners, some optimized, on is within Tier this cost to And of It's is to just for products on the a we specification production system. kind that are we lower delivered optimized ready markets with Tier that of to not working products all cost-optimized our and be necessary this. are necessary that price So our for really but we the on being been approving a well there with. year for are lower level entry point system X partners of by the also components track where are kind start with and have software emerging well

go And of ahead, sorry. a a I'm more follow-up maybe as technology --

as well the India, been of more leading global have similar to in preparations market we more RFQs important and how wanted fashion see add regulation to and be automotive as leading emerging coming are which up, just more prime that position are I X markets. the a specifically prominent a to Indian in in sentence markets towards future also in we we in ADAS few winning a X is we

to you've XXs, had envision FMCW, the vehicles road follow-up, still call over sets, sensor with years lot regard some XX do be next, a you replace from to a is have in as LiDAR. I'm you X it, you cameras, just X map, think optionality? the sensor where think radar going of to to as XX a imaging and sets to technology evolve XXs, your to announcements regarding Maybe of just imaging radar that what or your RADAR, trying Lidar the all perspective, these clear Lidar that do

to radar And anything have that we news about why the key. in imaging with coming much answer is is the building people can to radars. think give or and the months see it's on so interesting since is We -- area more a the developing. very an put But XXXX. our question. are you market I is feel that imaging a this speculative. I And else gap huge investment radar on imaging This we'll

B are spec year few samples operating of next a start ago production and theoretical to imagined track. the is the Our that on of we years

So really only is the to believe radar a that sensor I complement key cameras. imaging

and it's speculative. Whether the years, coming programs. -- which a at when a at moment, world least There In it's providing be the I our cameras just you talking a it's and can decades. drive you're front-facing Lidar multiple would about in But XXX the a will programs also are imaging Lidar saying there imagine coverage. Lidars radars. bladder need the

So at the how in moment, play coming we are will -- years. out sensors, using and this the see all we'll X how we

radars imaging of radars Just in our to it, our robotaxi our that mention integral part our activity, X an robotaxi activity. is imaging

up, us follow have a reached base strong in to who space the And I imaging of from has this are imaging in have not our today, interest or we've uniqueness in customer out competing but interest radar. and radar our specifically players attracted just for reveres think off to eyes seen

market uniqueness. signal in it's its So of kind just being how performance to perceived the in and

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

to in able of XX to measured in-house hours that? intervention achieve were critical they may through of there, compared the us mentioned their earlier SuperVision. what mentioned China. meantime hardware happened you you that started Can software its you in-house using -- the in NVIDIA earlier September, how be for as sold on performance in see -- system walk you for the between running So majority maybe How

as would But where it lower. there's Zika's that the higher is much the ours that I similar performance performance. costs in-house say it's as want twice don't something I system something where the nuances has similar. and you to into this strategic here. would get say is I and performance tells

development in-house early their about open on. very was Zika Now

think have the matter done, we in-house didn't time, replaced been so that have at by we the regardless now While realize what system would of we we eventually could costs. no

is be and a any for critical at to push cost. in there developed major China Now technologies locally top-down

from further benefits gained Nevertheless, we the relationship. see

consumers, of very our will Zika Zika improve a The globally. vehicles use to China, we have relationship RAM feedback as efficient on about that still and XXX,XXX us are the in G is generating important software continue as road from and to stack. build overall we First, that help want fleet which customers our that the global works system

be believe time. important of driver still that we And over can Chinese business an this OEMs to

in work us And sophisticated would working us is months. delivering system parking say. will on China automated -- coming the forward, very Zika collaboration parking and a very benefit I to globally. We this benefit are

as And follow-up. quick a maybe

regulatory a you in competitive you elaborate the China. on can gives challenges you the I and products you bit you and maybe that these So advanced faced offer elaborate this? challenges the you mentioned will practical in past, more what in that believe RAM And in hurdles China. on can confidence overcome building

that is We compliant we in been so, we standards, and and China continue this launch products of map do China in to the fully we local providers and since we've have working the sure technology is our will in with to meets started been make manage to all and how working compliant production. local

is Babcock next America. John Our Bank with from of question

ultimately, in in tags competitive a or I you as lot, what competition along my lower I a market X, as is what mean, terms each there is, go see mean But to over to potentially between wondering we've X the guess the isn't like I bit. in that to Level the guess less getting which view lot from a X X and competitive question partly but some -- started hopefully, gap a little at But not So autonomy, at the more eventually, maybe guess Level these more to competition a time? offerings. X you specific of one. of environment I'm level point question of maybe I there is, I Level level level recognizing last

competitive it and more sophisticated, X higher higher maybe and that Level market so gets advantage. level you expect do you Level the develops as as higher But X, that changes, to have aspects as environment competitive of a -- get you

of kind just could talk helpful. that, would that about be you If

demo just not I production is And are reach you on Well, not just very multiple separates go the they use. There's things system because a the a I autonomy, situation autonomy interventions. safety. validation. the word. that complicated there. from say, There It's high more a of operations in between this fill many are meantime There's precision. and need And would is nice as think areas safety of up more to stack you becomes the going so what

high is very aircraft see airplanes. in, on And many precision you don't so something products. it you say, in that see

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we about how both those, of and precision our in and terms talked day elaborated autonomy our what software AI to we stack X-hour at be at production this talk of the into a me bring Shai, Some level. goes efficiency

as the we not increase go because it's of decrease and stack, competition a think very, the should I very complex level up So endeavor.

the And which position still for follow leadership do still market We this to has but technology a able competing significant the been just a have the and because even things in and though issues over going, solutions decades. our execution entry X -- base more are been been a segment. maintain of systems. competitive about course that very in also coming a and OEMs because have up, ADAS, to they to of there might programs, capabilities safety even developed past the a articles in recalls segment is in of lot even past our it simpler there pressure And involved of advantages, about the product. that year, reputation selected that are few in launching needed our are of we just

more vast years, of the it's we past our evident the and I managed as So customers majority think in the being more realized have businesses X and to issued. win that core have

if AutoX also performance requirements, this, as was in time point this rating is base we want ever where the case given, right? it control a was to being say complex level in show in low able are those requirements system, looking to to So that system comes if task, you in performance point so NCAP a driving that first such talking rating at meeting ADAS, especially BYD's a the driving the low you very would case entry the if of a rating meet euro even this costs. are requirements recent about is countries, at an Yes. that least the I was Western

together you have probably us Like for think just competitive reduce system best levels that that the areas question, kind to good a I like are because where standards and of regulatory kind and I John. environment your our significantly tie it and things like it's requires the all mean precision. requirements, Yes. performance things of areas really high clear of where

for X Did And have supervision provide on I just missed an Right. it. you then quick update might one. volumes XQ?

around it was Yes, units. XX,XXX

next question Our with Nick & from is Doyle Company. Needham

for Nick Doyle Bolton. on Quinn

are per set yourself? Is that the completely you about rides Just you Did XXX,XXX -- the you just the achieving this any for thoughts first out different week. it on thinking of a Or news type one. guys in have way. goal

robotaxi of think kind a No, is encouraging. And the mentioned revival I Waymo Testa's creating said I of is think of very news robotaxis. that interest I success I day, when before, as in latest

data. is So this very think encouraging I

not the economies in autonomous is how to scale. rides next at bring the robotaxi think I the of the is challenge number

those system is example, cost for is office to there So that there. you back right? tailor in people there's question in many how order operation support issues drives, So the have

to more tailor technologies the would more a about operation time, talking get I'm over this activity reduced could the that economies when So technologies, bring if I believe level. off-line attractive advanced even using

now the interesting But industry trajectory. a on think is I very

new expectations is tariffs in the the is EyeQ that unit or the built that EU is X And to then other talking volume news SuperVision about -- on the OEMs, Chinese today? base, you're recent incremental prior

Yes.

were think expected the metrics we've and of tariffs the today. of kind European reflected kind I that reporting already in been have been

Aaron is Rakers with from Wells question Our next Fargo.

a within IQ additional Jake is how feature maybe about bit into was just drop heading Wilhem mix This little talk you little a could on you Aaron. give EyeQ. color And see bundles the from I you ASP wondering changing that XXXX? if saw on for the

Yes.

of anticipate in or any significant of very in within This of changes year volumes the inventory terms a the year, quarters. trajectory. don't -- in So had issues EyeQ terms we the mix the near-term the were different pretty we quantity, volatile between because the

term, we for trajectory some also significant within see XXXX the in quarter. saw changes. our and the we volatility So terms any But of near in don't

don't are we bundles China. Of moving positive, some But pressure course, versus -- pieces there some high like some overall, there. in anticipate feature pricing negative such

a wondering I supervision the was you color can rate right. powerful. for you shipments maybe as on Do give follow-up. see adoption EyeQ, in cannibalizing Obviously, little a just all? that if future the Maybe Okay. at not

segment for we steadily progressing advanced see segments customer X than where a direction. entry been We it's next-gen X-star tip do that ADAS and the and end, that base more and next-generation optimized of very not -- entry a consumption our to existing our ADAS very, and adopting for is do level entry EyeQ base it's different segment, are EyeQ all cost-optimized so power dynamics -- support cannibalization. very than higher is So see regulation, solutions in the encouraging the

hand this for questions Thank Dan you. are back at like to comments. the further no floor time. to I would There any Galves closing over

to you joining for call. team, and executive the talk we'll everyone Thanks to the Thanks Paul. lot, a Thanks next quarter. to

This today's concludes conference.

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