Innoviz Technologies Ltd. Q1 FY2024 earnings call

Key Points:

• First quarter was a strong start with revenues above guidance range for the second consecutive quarter.
• Expanded relationships with key partners and customers, including BMW, Volkswagen, Mobileye, and NVIDIA.
• Made progress on strategic realignment, reducing investment in InnovizOne and reallocating to InnovizTwo development.
• Winter testing of InnovizTwo B-Sample completed, demonstrating robustness in harsh conditions.
• RFI and RFQ pipeline is active with ~50% in RFQ stage, mostly Level 3 passenger vehicles, and two promising Level 4 opportunities.
• U.S. NHTSA's new motor vehicle safety standard on automatic emergency braking highlights LiDAR's potential role.

In Q1 2024, Innoviz delivered revenues of $7.1 million, which is a significant increase from $1 million in Q1 2023. This revenue was above the guidance range of $5 million to $6 million previously provided. The revenue was driven by a combination of NREs, samples, and product shipments. There is no explicit breakdown of revenue contribution by product segment provided in the transcript.

Guidance:

• Expected Q2 2024 revenue in the range of $4 million to $5 million.
• Full-year 2024 revenues are back half weighted due to channel fill and customer activity.
• Continues to expect 2 to 3 additional programs from existing and new customers with $20 million to $70 million of new NRE bookings in 2024, confident in meeting targets.
• Cash burn decreased compared to Q1 2023 due to operational realignment.

Risks:

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

Q: Hoping for more details on RFQ opportunities and confidence in winning 2-3 programs this year, and if types of programs have shifted.

A: Most RFQ/RFI pipeline is focused on Level 3, with significant progress on Level 4 opportunities. Two to three opportunities include another VW program with Mobileye Level 3. Discussions with customers related to design and manufacturing ongoing.

Q: Expectations for cash use this year and impact of NRE bookings.

A: Completed realignment, expecting cash expenditure similar to current levels, disciplined with budget, and NREs from programs continuing to support work.

Q: Time line for OEM agreements, especially BMW, VW, and Robotaxis.

A: BMW launch in Germany, VW ID. Buzz program planned for 2026, no definite time lines disclosed for other programs.

Q: Impact of NHTSA ruling on existing cars (BMW, VW) and if ruling moves to other countries.

A: BMW and VW cars using Innoviz LiDAR qualify for the ruling. Expect trend of such rulings to continue globally as they aim to reduce accidents.

Q: Interest from OEMs after successful winter test of InnovizTwo.

A: Successful winter testing generated significant interest as it demonstrated robustness in extreme conditions, addressing challenges like blockages in harsh weather, which is a key competitive advantage.

Q: Breakdown of RFIs/RFQs between EVs and ICE platforms.

A: No clear majority between EVs and ICE platforms in the 10-15 RFIs/RFQs as the system is agnostic to vehicle type.