Arbe Robotics Ltd. Q1 FY2025 earnings call

• During the first quarter, made progress in Europe with potential design wins with leading OEMs and secured radar systems orders for advanced data collection program.
• In China, HiRain's LRR615 production intent long range imaging radar system launched, highlighting platform industrial scalability.
• Tier 1 Sensrad placed significant order for over 1,000 imaging radar chips for diverse industrial use cases.
• Collaborated with NVIDIA, integrating high resolution imaging radar with NVIDIA DRIVE AGX platform, featured at CES 2025.
• Showcased advanced radar solution at premier automotive trade shows across multiple regions, setting new industry benchmark.
• Successfully raised $33 million in January 2025 and released $21.5 million from escrow account, strengthening balance sheet.

Revenue for Q1 2025 was $0.04 million compared to $0.1 million in Q1 2024. Backlog as of March 31, 2025 was $0.25 million. Gross profit for Q1 2025 was negative $0.3 million, unchanged from Q1 2024. Total operating expenses for Q1 2025 were $13.1 million compared to $12.5 million in Q1 2024. Operating loss for Q1 2025 was $13.4 million compared to a $12.8 million loss in Q1 2024. Adjusted EBITDA was a loss of $9.7 million in Q1 2025 compared to a loss of $8.5 million in Q1 2024. Net loss in Q1 2025 was $13.8 million compared to a net loss of $12.8 million in Q1 2024. As of March 31, 2025, Arbe held $36.7 million in cash and cash equivalents and short-term bank deposits and $35.2 million in long-term bank deposits.

• Arbe continues to engage closely with industry leaders, advancing through RFQ stages and aiming for four design-ins with automakers in 2025.
• 2025 annual revenue expected to be in the range of $2 million to $5 million, weighted toward end of year.
• Adjusted EBITDA for 2025 projected to be in the range of $29 million loss to $35 million loss.

• Macro economic shifts led to short-term delays in automakers' rollout of advanced driver assist systems, extending decision timelines.
• Tariff and manufacturing uncertainties caused delays in OEMs' decision processes.

Q: Can you outline in more detail the negotiations or discussions with OEMs and why you expect wins in the second half of this year?

A: Arbe sells to Magna who sells to OEMs. Working closely with leading OEMs in Europe, Magna delivered systems for data collection and is in final production phases with software support, chances to win are high.

Q: Which geographies are the OEMs headquartered in?

A: Europe.

Q: Any momentum in industrial applications?

A: Partnered with Sensrad for industrial applications as they handle sales with various low-volume applications per use case.

Q: Details on negotiations with OEMs and why delays?

A: Delays due to tariff and manufacturing uncertainties, but closer to agreement now.

Q: Partnerships in China with auto processor companies?

A: Working with Horizon Robotics and HiRain, HiRain using central process, radar, and cameras for full solution.

Q: Time frame for volume ramp in China?

A: Believed to start ramping up production in China end of this year.

Q: R&D burn and gross margin expectations?

A: OpEx burn for year about $32 million to $34 million, R&D about $25 million annually; gross margin in ramp-up years expected to be 50% to 60%, with SAFE launch causing margin to be 30% to 35% initially