Innoviz Technologies Ltd. Q1 FY2025 earnings call

• Reported record revenues of $17.4 million and gross margin of 40% in Q1. - Entered into an extended $95 million NRE payment plan with key customers, with bulk cash payments expected in 2025 and 2026. - Partnered with Fabrinet for mass production of InnovizTwo platform, leveraging Fabrinet's automotive grade manufacturing capabilities. - Progress with Level 3 and Level 4 programs, including accelerating LiDAR shipments to Volkswagen autonomous mobility for ID. Buzz shuttles. - Expanding collaboration with NVIDIA on Hyperion platform and progress with major OEMs. - Strong traction in automotive and growing momentum in non-automotive applications like smart city ground truth and safety. - Technological advances with InnovizTwo having specs exceeding automotive OEM requirements and work on InnovizThree slim design.

In Q1, Innoviz reported record revenues of $17.4 million, which is approximately 3x sequentially and 2.5x year-over-year. Gross margin was approximately 40%, both at record highs. Revenues were driven by NRE payments from key customers, with an extended NRE payment plan to $95 million. The NREs formed a significant portion of Q1 revenues, and LiDAR sales to new and existing customers also contributed. Revenue contribution from NREs was substantial, and gross margin was boosted by positive contributions from these NREs.

• Expect more than twofold revenue increase in 2025 to $50 million to $60 million, back-end loaded due to customer timeline lumpiness. - Anticipate margin fluctuations. - Focus on managing cash burn, with continued efforts to reduce burn rate. - Target 1 to 3 new programs in 2025. - Previously noted expectation of $20 million to $50 million in additional NRE bookings, with a portion already locked in.

• U.S. tariffs situation is dynamic; impact is currently expected to be limited, but monitoring continues. The company has flexibility due to Fabrinet's multiple manufacturing locations globally.

Q: On robotaxis, what share and market position do you think Innoviz will have?

A: Omer Keilaf stated that working with strong platform players, first mover advantage with initial robotaxis equipped with Innoviz LiDAR gives an advantage, expecting to be a meaningful player.

Q: On financials, gross margin and NRE programs' margins?

A: Eldar Cegla said NREs positively influence gross margin, but not expecting such high margins over time, with Q1 gross margin high due to majority NRE revenues.

Q: On tariffs, which category LiDAR shipments fall under and preemptive actions?

A: Omer Keilaf said Innoviz doesn't fall under 25% auto tariffs, impact minimal, and Fabrinet's global facilities provide flexibility.

Q: On NVIDIA partnership, factors positioning Innoviz and milestones?

A: Eldar Cegla explained NVIDIA's Hyperion platform and Innoviz's inclusion in it, with daily discussions on integration, expecting benefits once customers nominate platforms.

Q: On product shipments from Fabrinet and non-auto efforts?

A: Omer Keilaf said first product unit shipments from Fabrinet in a month, non-auto efforts via integrators displacing existing solutions with higher performance.

Q: On robotaxi RFQs and smart applications market?

A: Omer Keilaf said pipeline is 50-50 between Level 3 OEMs and technology companies for robotaxis, and on smart applications, software will evolve to provide tools to partners, leveraging automotive-grade software capabilities.