MicroVision (MVIS) 28 Feb 242023 Q4 Earnings call transcript

Good afternoon, and welcome to the MicroVision Fourth Quarter and Full Year 2023 Financial and Operating Results Conference Call. [Operator Instructions] Please note this event is being recorded.I would now like to turn the conference over to Drew Markham. Please go ahead.

Thank you, Paul. I'm pleased to be joined today by our CEO, Sumit Sharma; and our CFO, Anubhav Verma.

statements, we of the hear as customer the discussion include remarks, note to in and prepared limited will some not development that information forward-looking operations comparisons future and strategic partner well opportunities, their to our and engagement, will containing regarding and call opportunity, open funds, questions.Please business landscape, today's statements results, to, program volume, of product of potential, demand, plans, Following future statements but and performance, our like competitors, market including, product financial you availability will sales expressions. believes, and other and words projections as expects, similar or not These statements. could future forward-looking materially expressed guarantees results implied performance.Actual in of statements the from are differ results the future to filings, on quarterly and most encourage including Form report review report annual We SEC our on our filed recently XX-K Form XX-Q. you our from required our update These forward-looking date could we risk information. to as of as call cause that of in obligation no undertake expressed law, results this or the this materially filings and, factors forward-looking are implied made except actual differ by statements describe to statements.All those

as refer Filings the our will the call, in non-GAAP Relations all found Sharma. of on measure this our press call on call replay turn financial ir.microvision.com our website information Sumit certain X-K available will call be of for today, and submitted can to would the most our under tab. website.Now, be Sumit? directly Investor G.For both on on that the will conference at dated like to release audio be the SEC to of corporate This over financial for and the presented section please measure, considered we measures CEO, I well Form the each SEC financial to our included which addition, under In as Regulation present SEC's financial data the this reconciliations to non-GAAP in GAAP comparable

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Sumit. you, Thank

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to expected, as full XX, the we including our as remains final the liquidity this as XXXX, this under few of $XX million ATM the and balance year cash availability our Ibeo expect sheet, liability line XX, A final million, has was deal. total of payments $XX amount CapEx on again, to million December of relating facility. million months.Our million made was A of have $X with As seller, reached current approximately been next with we $XX the agreement and pay acquisition. in the the expectations.Our most December payment balance in $X.X with associated of sheet

have On the the our capital rates annualized million, QX until burn both beat pool strong amongst rates XXXX have MicroVision we the lowest structures industry funded the in highly talented of of XXXX.We of in and and the financial QX runway and years cleanest a of $XX terms in competitors the fully peers. of cash U.S. and Germany basis continues to of maintaining one sheet. of X.X burn a with balance a cash out stand one engineers are

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that automotive and up of volume from EU engineering expect with automation non-automotive for channels described to cash XXXX, XX, of both to $XX the necessary includes guidance reduced year. $X.X year, #X, the the the software have or $XX the a customers. of equipment be streams in we of modeled between capital related include see locations beyond. about non-automotive on and reflecting believe revenue NRE customization we XXXX need our and OEM America the and are between forklifts, deals. reach burn the have we similar to burn the to on strongly start is relationship we're wins related automotive wins XXXX possibly middle earlier, standpoint, This and achieving on to pivoting we really sale nominations, From lidar towards that multiple as backlog key now customer a sales RFQ market, customers expenses and industrial to on as the direct operating deliver would company sensors.I well-positioned projects.As come customers growing like we all the warehouse as our towards revenue details North additional to for commercial for cash We revenue XXXX line sensor and to million expected December Tier we open from and any hardware large million. resources and the revenue expect per to our of in sensors revenue more provide from OEMs as robots, of #X, to to focuses non-automotive our of the to million economies questions. scale.To agricultural As grows X With non-recurring at engineering I would mining that already and companies. like multi-year a have focus value the proposition and marching summarize, the out, sales ramps excited from, markets.Operator, we company #X, to unique, within lidar first

Fitzgerald. is from first from the And Cantor question Sheppard coming Andres Instructions] [Operator

spoke can to start next in in the PR you estimate something soon, on the you're first And This announce the Andres. you with top in coming put length you currently quarter or think for recently a just nomination reaffirm hit most going to process you is that Or to Anand you officially that have and with first of that's congrats in you'll of on wanted it's I be so at the of partnership? perhaps I this month Balaji RFQs, be to quarter. out as when if And OEM OEMs an quarter? year. expect wondering on able and you mind. December, this an was that

that nominations the we we first in reaffirmed quarter. announce to expect Yes,

related testing by looking I type, I of at company of could what comment Fantastic. also potential what region Sweet. Level the if China's perhaps to contract. at or legalization was to type how vehicle for you announcements, X And you're and and And you're perhaps wondering and that most recent its prospects? that, affects looking OEMs was these wondering on

Sumit, take to that? like you would

Yes, the I comment talk let's about think first. last

things high working I think look our that North our the legalization consistently, focus if on, you at Ultimately, looking pretty I've in companies, China. remains we and in real at that just multiple would if of are said calls, people the more team earnings focus. think believe personally this a Europe talk I that about say that's I actual you America. about

chaotic some done about to what high-volume. say, somebody will continue in to happens we market has China a have one high-volume get yet there. China, programs the mean, the that they're into Anything new lot path And early go will think impact more like focus leave real shadow anywhere ship ship all hurdles right, low that demonstrable early does pretty what's what in on regulatory It's can company of of automotive that have would else. on that cars is get but North and that it's going through America. me the lots Those out goes the is ask about a out company, ever projects no lidar as Somebody because of what markets.What legitimate allowed what's market, they of I by you give more margin products Europe that And and talk it to are a Anubhav I maybe are with niche again, extract There's and analysts bigger being them handful right? question, unclear can dive Western somebody small up out that other a to there's of have? good just But programs, been to before the into companies announce But their part help nothing footing.So, China will that delivered first China? I'll all, other to first well. it there's that of out are it.As happening a at be to one. I could to because in Chinese there. volume, very noisy, DoD, in of the think far the and partners the into as clarity

Yes.

and we that OEMs are the of in America. focus the North based So EU are targeting

financials, a And for works Got jump and over can is large I virtually the quarter due could over little sold agreement if Or being to look we you. the wondering for I when little cost the guess margin the switch I bit gross you go Microsoft That's to it. color more it XX% this? at bit the And how a a over get was on lastly, if this give helpful. there to you'd was as that. Appreciate to non-existent? very

right, we we contribution had from guided in royalty QX, get that's is because last this essentially margins Yes, Anand, because I we to this high revenue that that expect quarter, the too, think Microsoft.

line. bottom So, obviously, it flows through the

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last And gross of you. quick as that then margin Got one into wondering trajectory question, going I what to XXXX? type expecting just follow-up you're was

Yes, question. a that's great

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or -- want XXXX. position towards in of the for would I middle detail more in a lot So second to be a I of the the half is maybe year

The Capital. from is from WestPark next question Kevin Garrigan coming

in RFQs X QX assuming just how a are RFIs you kind in actually the know And I of may you awarded think announcement. talked you be Your progressed that XXXX? said, about others some RFQs. you're you into I'm many noted, in potential late that But that stages

right? And the are moving we There's and reaffirmed we going they keep these and but that are when RFI RFQ, was to going same X the you all may anybody it's before we're I all clear like the about to But crisp was in, example, it for or these feel say the So year, it. the where announcing, are they RFIs want else initial RFQs on may progress, could be decision as everything earnings decision what are not would very imagine, focus it think their can be attention. to -- -- is everybody's I in set customers keep of to in told right? RFQs.Again, convert OEMs, want timeline. last last comfortable convert. be, like all our ultimately, that call. to the not But us

delivered you if clearly, But haven't Even delivered. in that. this of Certain that the about a in you, with As are, just the profile, we have it it anything. of at best their half right, far it in the honest knowledge investigation RFQs sure of are being on not as We on say, to getting it the be we questions shift a stated, RFQs we're benefit with hand, of in past, they or accent right to on as that's for have up. right year we I'm what point holistic after we to to probably at sooner.I'm the they're now. risks In lower can power, have win as product these cagey navigate that that. middle are RFQs, are tried year, in clearly early support I've have first more a hey, take are XXXX, somewhere let's in they can in part partners hole?So these XXXX, others have, writing that the make much right our that it, fit lower X awarded that concerned, clearly that expected say others". decisions we're saying, opening They "were they what and done want expense now, the deep to And so Anubhav we a we anything technology level, and have the is make taken ultimately, well, other bigger these to because out because could incurred. we in they've based looking giving

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does. Yes. It

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the to webcast. read now will through over Anubhav turn call back I Verma submitted And to questions the

All Thanks, Paul. right.

you XXXX? color MicroVision an QX OEMs will this question and first it Sumit, within still multiple feel want that? designed the update have So is, where do milestone take does Can provide stands? to you

that place. to going think -- the I to in I OEMs. as we much the the confidence It's feel think like with the in with hear ride are we tide right Yes, have you're call, you

it. advance cannot You

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ago always that I up is come with XX name did about they think, about this one how years the Mobileye. will it

you Greenfield and market as start with to soon these with in discretion the provider But multiple that of OEMs period how possible, and on share So in, whenever X at with go confidence yes, over upon much confidence that technology a why is as a into can time.And directly have the in you you my are that can. commercial something to themselves rely years as are feel remarks And business of as discipline. long right that's it, a them still yes, take path you I you and Tier much start take about they path. early.So, looking over how we're financial now transform the collaborate your they mentioned technology prepared capturing that's comes key

The revenue take NREs fair to question. what would nomination from you kind question revenue do NRE any is, anticipate and and expect of this next before be me the when?Let

These are the at multiple spread years is as middle the Sumit this the over of mentioned. extending to One kind fact, lidar put These decade, we now of.The their or kind are requiring development, are are some the to next the projects are of development where only there in they current suppliers X out right and in projects of into, are OEMs of partner either decade, nomination middle seeing we rather, that the projects So with of the point the with what timeline. the happy is nomination part second agreements, of are unsure are B-sample deals. XXXX. time, that supply the because risk sort of about contracts not

development important scale.Now, and go So the X to is of for are a you they here And a units negative want I we we choosing volumes, some nomination may being between some an that's will do that do small I add millions have company. do really to of And hardware again, profitability pressure companies services nomination, it's typically projects, lidar X NRE heard very only remains We're with get and our that to earlier, mentioned, because the described to we engineering do it's all to pursue to done. a economies strategic we're about projects. volumes, path.Now, that high-growth going of we profile to sure we're the to take and we to valued to projects not projects end, are that a these and impressive, companies to only which software right guaranteed each Tier And of want these to have think successful their be in business. choosing make opportunities a and model.So want de-risked commit from there the because that. again, have involve not you us obviously, pursuing because, goal the same projects short-term peers because of gross the We own. mistakes to want be the revenue, to others suffer because seen want that, is tier, be as margin not the lidar that of do take kind because that, margins

projects answers after.All kind that So, hopefully, going right. that the we're of

their sensors ADAS sensors thinking going please next Can current industries the space considering continuing what lidar beyond. question plus? what in this the are to to ICE Are do continuing provide other in you for is EV want raising take Sumit, cool recognize solutions of committed OEMs mentioned you service RFQs has opportunities vehicles. and OEM on management to this environment? cycles LX be a seemed So other design business trend off as are state lidar? with color Is lately? believe these Shareholders trajectory to regarding questions, to to and still and industry LX+ of and only Some OEMs lidar apply now? the that? the LX And

question. Yes, a long that's

I I forgot just recall think let front first planned. of part, from to as the had I it. back me the start the and I question, the because But work

MOVIA looking around think so it's a the as talked I you're the we S, about car. XX-meter that at cocoon clear

about cost down number a radar, things, expensive after Level sweet scale, as safety. that for when talk would functionality than be not what it's pilot, be clear to and to less expensive are So got And it's costing, some urban MOVIA do right? it's it's full-blown only could a than the S, of competitive. for the low-cost but higher like high-speed But precisely the expand in. of as driving right, So systems lidar, or X module economy brought economically does technology system highway low-cost for able X+.Camera and overall lidar features with But ADAS module-based spot. I camera could it's more where come lidar Level but ADAS

about, right Level would would clear where coming understand is that Level demand X I is And volume does that, look say some OEMs the X+ do potentially the it it's as that that now not and expanding they're lidar. even you talking at require handful I that's And, So I'm from.So scratched for sure, years. the we're the time. in a for the only units, of some a period career of mean, CEO millions right? of I've of mean, talking mean, surface. on call, you investors are been long I about I people know, my features

been start onward, XX-year-plus volumes company. history of So history, from are these point if this never discussed in have you the that that

it's the right it's this gets there, more entire growth space.So then So even year. every that and scratching fleet because is not significantly from launched the

there. upside great have we So

of and they So millions going and if pricing only that that. is break of they're recognize they're the to there's happens, doing target units scales economy available

that above. right I this I was. question forgot actually talk.Well, which what right? first get So the they're Did is expanding as we timelines lot down? part was is question really the and the the the you part OEM first long about repeat break Could of a down you of question. I Because mean, it? question about Can a the

I was EV? EV, think think or of more the first was Yes, so I between towards are and ICE question ICE it RFQs about focused you the part seeing the

they they picked already have want think have that year their they back end. launch to the EVs announced a I and products, are publicly these okay, towards

model year, the on the all our see get they the lined They OEM, So we you is bunch But they part it perception, choices they the probably table. pick, to of their say software. just a up first suppliers we with have front. But can ICE, deliver but in know, chains of like all get are pick and talking dominantly off, ICE models a With I ICE sensor And that path. we're have I lined engines suppliers to and start up. projects any are, they all up. they back their about, accelerate would

can there. I I because I Maybe cycle -- I if design thing, yes, think, demand All about Sumit, already. one you the think the the think mentioned, right, talked maybe more design and add right, you cycles and

I field. out well, as the field, we there be you like once market the get the get there sensors sensors what et millions out the right. made Because pops up to after And service would I since think I point those of in to out cetera. imagine is these think the sensors, to have on any repairs, we obviously, would default go automatically

model opportunity combined, the the right, not company of to keep because over the end is traditional end the has pursuing it's no also conveyed I which saying a which, that's hardware that So management is markets. next just the again, the adds question is adjacent or AR and it here.All software anymore revenue market, control product

you product, it? placement an get in OEM we though, to Here end ourselves finding trying How are, situation. would in similar characterize

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our complicated about to controls Cupertino engaged control In that's in their AR, important a pop.So think they're business are as more according it. fair even into I that you platform think is but and mixed with And right, that publicly $X,XXX talking case, them. sensor, $X they're big don't awarding control with to people, one it's but know. this billion we sensor, I a core how this reality contracts, somebody and not we not it, saying at assessment one to steps the right

does really place, is you portfolio. at would wide our think in right of, the I we're technology. take very Flash-based having with time MEMS-based say, time. give you of a the right lidar, the with the special. read I The So right context It through technology, a something place to lot comments, our our MAVIN, if prepared

high the array And opportunity no like X market case, with. actually So products address wide with we're can pony.In software, contribution margin X anywhere else. you pony. trick you're of a have case you trick a not have that this In had of AR, a which the you you

this the after reflection. think to This argue I company's is agree So its place I best that would would be. in believe This very strongly. of most And the the is me I and best investors history. opportunity ever had really with

of going hardware in software suited are Without Sumit. the near-term. a offerings what industry our too elaborate for type please Thanks, on deep, and settings bit

this me We're investors direct the predictable that customers.I opportunity right? is let sales take term non-automotive revenue, think long with partnerships revenue industrial because in to medium think the multi-year sector. I opportunities about for significant to need see question, the beginning

XXX, these some do long year cetera.And decade each is and are applications, But gives to business beginning from to the they to not our -- as are that of automation them. us mind, going to the be et applications, X, efficient see into this warehouse deals Xsensors again, selling buck, like I this as forklifts, after in go OEMs. keep Now, X they biggest X for XXX X, agricultural bang not the are think model customers our are because, the we -- not next

one margins going model and economic others to fusion? right. is keep In to to cycle.Next for work forklifts fact, a protected. we we into creation X, et growth applications, to again, because, X at opportunity sensor unlike gross automation happens capitalize driving where we on today. position such our can term being the ain't we to make of because who where that successful that are with anymore, value in the industrial sure is cetera.Again, given in way low plan automation I drive the having negative have financially into to market growth of to things point sensor prudent these truly chase raising on of believe been are mention and the All add strategy the the You Capital a What's margins, the shareholders, command why and because call robots margins anything X, and that? these, of they go companies long is reasons use best and this having are is on our didn't year these their the revenue done question multi-year their by their wire after the deal current what MOVIA

one. that take I'll

contributed of and team course, worked little real I think, big in for that also team it, to plan a But, Germany have a bit. no sensor that fusion. there is on our we here

down. a be really scaling that long it term, investment really that's we So see we've that back.So have higher we're it sensor on environment scaling make R&D a sensor that been is RFQs. taken to LX anybody of something plan and allocated it secure the be of that we a the wound a programs dent to working it, make these you people are But that make to The on have given some actually significantly customers to willing have on thousand fair, into you other to were people decade fusion on engineers don't back. clearly a out. fusion more have to than other to working with And pure part able been

is So software. They that work. knows see customer's one be. But I would sensor our our remains team a know focus main a will what perception fusion benefit requirement how

I As they know on of our they continue the think have software. perception good a team that and kind solved.So perfecting the be on software we're part going to problems it, of have focusing perception to working

do.And MOSAIK MOSAIK, not a it let revenues say it the as thought asked year investments did for had just we had product again, seeing, the think very the other interested, had valid. in question not more its promoting me stays about if any we it mature when any talked but are to thing. I it, And financial We're selling making it. discipline, part we're further. because we're high own people of, but a not all we We're ago still about that does hopes it's we that get economy pipelines we to that

that big a And it control something fusion of that project, really did. But our But think right company situation we're readjusting reduced, the the without we So a based given R&D was market the fact going we for is partnership. focus see any that never sensor that. can't I the that product it's as the the us. go team on And has for move to was ahead.

IATF are of the similar Sumit. XXXXX Thanks, certification? one What steps this certification? achieve who competitors certification, plans to MicroVision's in are announced for to What the place

good good actually. question, one. That's a really That's a an important That's question.

now. XXXX we are So ISO

several to development manufacturers, our we project. what car, investment about Tier our we're website talk we you get first sure make the make can even intend as that a to have any know, to supply that. that. great. time it's it's to think next go contracts.But timelines But will this the before done to for, internal had qualification. lidar anybody X, a contract of to interesting there. spend big if conform do And and volume. you for and before and, these the it Congratulations. with start But option enough We else IATF. out IATF, to working they become shipping, a got to think I you're processes is to you years. is need about qualification that We'll of it to volume thing secure that Millions as a be you it'd you though done given that controls eventually chain But But in an that get have everything early, dollars low you did if that there over

And the time working the frame course, take. fact and before it's to that lidar, process what that qualified to we have path what that term. to about, yes, sample, money actually acknowledge focused qualification. see by, sufficient. to it if an you going team for time adequate actually our And right given to of actually, that's actually automotive our time we spending outside, that not we're get these on, it. yes, think such initiate it's the they writing. OEMs from to And a in only RFQs time.And mature that, consultants million the we're as do C going Ibeo, cost But with that closure to We've something know long you in be the that'd going is, B that way right you it's impede to the cost, going we after that several of have given that's plan. we them the that's RFQs, us get inherited that sample, it And, of want think I estimate

Sumit. Thanks,

was to the status let renewed, this And on me the agreement. What take same of is one. Did the So terms? this it the related If agreement? conclusion? December XXXX is the mark Microsoft

as from detail any more Microsoft the revenue Can we So, expired yes, you at future have no the in contract Microsoft. At take an of this this it runway December detail issue Liquidity. will provide XXXX. end me out company the into time, visibility on XXXX?Let cash and does date? one because envision what let's it's actually important have the in And shares calculation. to Look, one. to point

$XX if annual burn, cash to of $XX million cash $XX which in $XX described approximately liquidity availability. which is provided made an basis, million be of of or And our million, XXXX million our $XX it into is million cash and years, ATM So to I equivalents and X.X roughly about up I on translates QX years. X.X

of what opportunistically is While exact we and will I say strategically have I raise money. plans, out disciplined cannot history to a the shown share capital very raising ability

at are peers finance had compared to now. some in seen the resort to to deals position even significant stock ATMs favorably the you damaging structured We think as peers.I discounts, us price past the until of have our very overnight

out Sumit, maybe but think time, we we updates continue provide sheet take the heard believe that previously credibility this the that you of is of in strengthen these including equity about Level I And the a player, X and one evaluate why because establish attributes.I OEM I as and shareholder you guess I'll running slide Highway-Pilot call. term market balance this bit We debt this of create a are because again, value Level another preserve to long sort to think quite talk us capital Tier all will this in strategically to available, winners have instruments our and mentioned question. we deck? Highway-Pilot, trucking will X on X in are the can the Last of industry lidar question, about any there be

the is a trying again, same describe to key market of is how right, we deal.But I give In everybody that I on They're they trucking, problem of need passenger out like needed a products. it's you data by of vehicle, to autonomy, But much of their say because be to it's it's it's still decisions. timelines lidar, with. the software but that I timelines business in you range product a make central the into business it? think we're a the have right focused but their long them. find in you're But models is, I working keep other case and a supplier space to the In their software a like on. a people the do the viable is, think that think, public work there, much In turns they're the trucking one still Level focus supplier. dominant that volume of lidar think already that.So -- from X want to as right, partner piece other they a autonomy want to of Level But talked those high about actually such is and the and to sensor, companies the the said, company is are that autonomy to sell explore a enabled to business our something the of figure of out there's some right, sensor, happy it it's that when the it else. support, so handful for pretty again, their was hub everything sensor half where the We're like, you to reach consistent need that anything hub it really for everybody model, is case that really could about. trucking, sale with only X up rest have. key I how there's determine they they like transit very lidar lidar to all comes Effectively, starting But describes line. diffused. do case more on I that or story. kilometer It's we a to would guys the to again, model. that money big can to have we if problem is doing. exactly that.

them. It's OEMs. They So, we support world. small a are

possible. I got you've to people much financial about be But company, support plus resources want in discipline, if don't to You as are.Like show XXX the we want as have, meaning we I mindful said, that on with to your where really We that if certainly the want so. X, to Level Level large you do based based X+. increase Level X. projects a on But OpEx be can may to support increase with OpEx products, happy existing we're them coming them

Thanks, Sumit.

I But to much. forward so for than our everybody I for update. our speaking our think call. scheduled we for again jumping thank We went you annual with look time. again, you call QX the longer Thank on

Thank Thank you. you. Bye-bye.

today's concludes disconnect conference. may This a Thank parties you. have and All day. great