Innoviz Technologies Ltd. Q3 FY2025 earnings call

• Recently, a major commercial vehicle OEM selected Innoviz for future sales production of level four autonomous trucks.
• Shipped significantly more LiDAR units in Q3 compared to Q2, with ramp at Fabrinet progressing well.
• Labs achieved key automotive standard certification for LiDAR testing.
• LiDAR market continues to consolidate, with few competitors remaining that meet OEM performance requirements.
• Progress in automotive programs including level three and level four, with winter testing in Northern Europe ongoing.
• Innoviz Smart gaining traction in non-automotive applications, with first perimeter security installation completed and more planned.
• Introduced Innoviz Three, which aims for better cost structure, smaller form factor, better performance, and lower power consumption.

In the third quarter, Innoviz Technologies Ltd. generated $15.3 million in revenues. Year-to-date, revenues totaled $42.4 million, which is approximately 2.3 times more than the same period in 2024. There are no explicit product segments with revenue contribution percentages provided in the transcript.

• Expect revenues for 2025 to be more than a twofold increase year-over-year, in the range of $50 to $60 million.
• NRE booking guidance for 2025 increased to $30 to $60 million, already within this range.
• Cash burn in Q3 was $14 million, expected to decline sequentially and year-over-year.

• Competitive dynamics in the automotive LiDAR space, with few competitors remaining and a winner-take-most scenario emerging.
• Geopolitical backdrop and financial pressure on some competitors could impact business opportunities.

Q: Update on L3 development program for consumer vehicles with top five auto OEM and timing to series production award.

A: Over the last quarter, worked on SODW based on previous signing, still in discussions with customer, pending next stage of their process, very developed stage but tough to guess exact timing.

Q: Competitive environment, recent changes and business opportunities.

A: Competitive landscape for automotive LiDAR solutions is very limited due to geopolitical and other solution constraints, expect it to continue.

Q: Incremental investments into sensor fusion and software element.

A: Split into automotive and non-automotive, different software components and business models, with support and maintenance revenues in non-automotive; security application shows underserved market and potential for development.

Q: Performance improvements and start of production for Innoviz Three.

A: Innoviz Three targets better cost, 60% smaller form factor, better performance, lower power consumption; details on start of production not specified but working on overcoming challenges of integrating behind windshield.

Q: Level four commercial OEM win SOP timeline, number of LiDARs per unit, and volume opportunity.

A: Expect to announce customer in several weeks, respectful of OEM, multiple sensors per vehicle but details to be shared later.

Q: Expectations into 2026 in terms of revenue and gross profit, strategic priority.

A: Growth expected with deployment of level four vehicles, including from Volkswagen and Mobileye customers, Innoviz Smart seen as unlocking opportunities, still in discussions with other OEMs and level four platforms.