Aeva Technologies, Inc. Q1 FY2025 earnings call

• Automotive: Making progress in the Daimler Truck Production Program and the Global Top 10 Passenger OEM Development Program, having achieved the first key milestone in the latter.
• Industrial Automation: Unveiled the Eve 1 line of high precision sensors, which has secured multiple strategic industrial customers, with over 1,000 sensors booked and initial shipments starting. The addressable market for laser displacement sensors is over $4 billion, and Aeva is ramping up capacity to meet demand.
• Intelligent Transportation Systems (ITS): Selected by Sensys Gatso as the exclusive LiDAR provider for its new mobile speed detection products in Australia, with potential for further market expansion in ITS and infrastructure monitoring.
• Strategic Collaboration: Announced a partnership with a Global Fortune 500 company, involving up to $50 million investment, a 6% equity stake, joint product development, and selection as Tier 2 manufacturing partner for the top 10 passenger OEM program, validating Aeva's technology platform.

Revenue in Q1 was $3.4 million, a record product revenue quarter driven by automotive and industrial customers. NRE revenues are primarily from the Daimler Truck program. The absolute revenue for product sales was $3.4 million, with product revenue contributing significantly to the quarter's financials. In industrial automation, the Eve 1 line of sensors is gaining traction with over 1,000 sensors booked, indicating a growing revenue contribution from this segment.

• Increased full-year revenue guidance to at least 80%-100% growth compared to 2024, not incorporating the new strategic collaboration announced.
• Plan to host an Aeva Day on July 31 in New York City to provide more details on the company's technology, commercial traction, and outlook.

Q: Talk about which incremental target markets you may be able to address with the new partner as part of your manufacturing process?

A: Expansion into consumer market applications, joint products across new markets, acceleration in industrial applications, and leveraging the partner's global scale and automotive tier qualifications for the top 10 passenger OEM program.

Q: Relationship with SICK and industrial sensors?

A: Strong partnership with SICK, a key player in the industrial sensor market with significant market share, momentum in industrial automation, and plans to ramp up manufacturing capacity to address the large industrial sensor market.

Q: Laser displacement sensor ramp and market evolution?

A: Shorter lead times for new customers compared to previous engagements, with plans to ramp manufacturing capacity to 100,000 units per year to meet growing demand in the industrial automation space.

Q: Potential momentum with other passenger OEMs?

A: Ongoing engagements with multiple passenger OEMs, including the kicked-off development program with the top 10 passenger OEM, progress on ADAS and commercial vehicle opportunities, and converging on decisions with other OEM RFQs.

Q: Guidance increase and revenue contribution?

A: Growth from industrial market volumes (hundreds of thousands of units) and ASPs (thousands of dollars per unit), with continuous improvement in manufacturing costs expected to drive future margins.

Q: Manufacturing capacity ramp timeline?

A: Goal to finish installing manufacturing capacity of 100,000 units per year this year to meet demand in the industrial automation space.

Q: Remaining milestones for top 10 passenger OEM?

A: Packaging and integration work to fit the sensor across multiple vehicle model lines, transition from development phase to production phase, and potential for future product development across generations.

Q: Next gen perception sensing products with Fortune 500 partner?

A: Equity stake in Aeva, joint product development in industrial and consumer markets, leveraging the partner's expertise to enter new markets, and acting as Tier 2 manufacturing partner for the top 10 passenger OEM program.