Innoviz Technologies Ltd. Q3 FY2024 earnings call

• Announced two new OEM programs with a leading Level 4 platform partner, expected SOP in 2026, with Innoviz providing a bundle of nine InnovizTwo LiDARs per vehicle.
• Progressed with Volkswagen programs, including Level 3 platforms and the ID. Buzz light commercial vehicle program.
• Pipeline has over 15 programs, ~50% in RFQ stage; a potential Level 3 program with a top-10 OEM is in late RFQ stage with near nomination decision.
• Technological breakthroughs: improved InnovizTwo with 0.05 by 0.05 degrees resolution, IR imaging capability, blockage resilience, and short-range offering.
• Cost realignment: combined R&D units, leveraging technological similarities between InnovizOne and InnovizTwo, reducing cash burn.

Revenues for the quarter were $4.5 million, above the midpoint of the guidance range of $3.5 million to $5 million. Cash used in operations and capital expenditures decreased from $28.6 million in Q3 2023 by approximately 38% to $17.7 million this quarter. Revenue contribution is from various programs including new OEMs, Volkswagen programs, and pipeline opportunities.

• Full-year 2024 revenue guidance: $23.5 million to $25 million.
• Already met target of adding 2-3 new programs in 2024.
• Confident in achieving $20 million to $70 million in NRE bookings in 2024.
• Expect acceleration in revenue streams in 2025 as more customers adopt technology.

• Forward-looking statements subject to risks and uncertainties relating to future events and financial performance.
• Actual results could differ materially from forward-looking statements. See Risk Factors in Form 20-F filed with SEC on March 12, 2024.

Q: About details on Level 4 commercial agreements and volumes A: The platform partner has around 5 customers deploying vehicles from 2026 onwards. Each program has volumes ranging from high tens of thousands to hundreds of thousands of vehicles, with 9 LiDARs per vehicle generating meaningful revenue per customer Q: Granularity of 2024 revenue guidance (NRE vs product shipments) A: Q4 mix of product sales to BMW launched vehicles and NRE components from 2024 programs like the short-range program Q: Details on top-10 OEM program, legal arrangements, competitors, SOP, volumes A: Competing with another LiDAR player, mid-decade SOP expected, meaningful volumes; two legal points being negotiated in the RFQ process Q: Financial profile, cash burn sustainability, capital raising A: Confident in sustaining lower cash burn, new OEMs and NREs will contribute to revenues, 2026 launches expected to drive significant revenue growth Q: NRE revenue opportunity for new programs with L4 platform partner, 2025 revenue/gross profit guidance A: NREs are preproduction revenue; 2025 to be meaningful with additional programs, 2026 launches for significant revenue growth Q: Infrared imaging feature, feedback from OEMs, bridging gaps with traditional cameras A: IR imaging allows synchronization, helps in low-level fusion, provides features cameras alone can't, outperforming standalone sensors for perception