Arbe Robotics Ltd. Q4 FY2023 earnings call

• Focused on driving a radar revolution with industry-leading solutions in 2023, with high anticipation for customer wins in 2024. - Announced production version of Radar Processor supporting detailed point-cloud processing for Level 3+ autonomy. - Production intent chips in automotive qualification phase, with HiRain to mass produce 4D imaging radars by end 2023 and other OEMs selecting the chipset. - Targeting non-automotive market with Sensrad securing significant customer orders. - Initiating dual listing on Tel Aviv Stock Exchange and planning to issue bonds for working capital.

In the fourth quarter of 2023, total revenue was $0.35 million compared to $0.15 million in the fourth quarter of 2022. For the full-year of 2023, total revenue was $1.5 million compared to $3.5 million in 2022. Negative gross margin for Q4 2023 was 54.5% compared to 45.6% in Q4 2022. Gross margin for the full-year of 2023 decreased to negative 2.6% compared to a positive 63.5% in 2022. Backlog as of December 31, 2023 is $1 million and is expected to be recognized as revenue during 2024.

• Goal of four design-ins with automakers unchanged. - 2024 annual revenue expected in-line with 2023, followed by growth in 2025. - Adjusted EBITDA for 2024 projected to be in the range of $30 million loss to $36 million loss.

• OEMs have shifted decision timelines from late 2023 to 2024, causing delays. - Need for final OEM approvals and chip delivery for revenue recognition from preliminary orders.

Q: Gary Mobley asked about the workforce on military reserve and its effect on R&D activity.

A: Kobi Marenko said during Q4 around 20% of the team was on military reserve, most returned in January, now less than 5% on reserve, Q4 was less productive but back to near normal.

Q: Joshua Buchalter asked about drivers of slower adoption and implications for 2025/2026.

A: Kobi Marenko said industry shift in R&D efforts affecting ramp-ups, 2025 revenues mainly from China and non-automotive, 2026 to see major wins from current milestones.

Q: Suji Desilva asked about production intent chipset qualification.

A: Kobi Marenko said chips are in final stage of automotive qualification by GlobalFoundries, hope to start shipping full qualified production chips by end of Q2, revenues from preliminary orders expected in 2025.

Q: Jaime Perez asked about Western Truck Company order and non-automotive strategy.

A: Kobi Marenko said the order from Western Truck Company is for the main radar, non-automotive strategy sees Sensrad gaining traction with major revenues expected in 2024 and 2025.