Innoviz Technologies Ltd. Q4 FY2024 earnings call

• Financial developments: 2024 revenue exceeded guidance, with cash used in operations and capital expenditures reduced.
• NRE payment plan: Expect $80 million in payments between 2025 and 2027, with bulk in 2025 and 2026, and over $40 million already in 2025.
• Partnership with Mobileye: Unveiled partnership with Mobileye has resulted in programs with several new OEMs, including vehicles like VW ID Buzz, Holon 'People Mover', Schaeffler public transportation shuttle, and Verne 2-seater luxury Robotaxi using InnovizTwo LiDARs.
• Integration with NVIDIA: Working closely with NVIDIA, with InnovizTwo incorporated into NVIDIA Hyperion 8.1 platform, and Perception software optimized for NVIDIA DRIVE AGX OrinPlatform.
• Operational optimization: Announced optimization of operations expected to deliver approximately $12 million in annualized savings.

In 2024, Innoviz achieved full-year revenues of $24.3 million, up from $20.1 million in 2023, exceeding the midpoint of the guidance range. Cash used in operations and capital expenditures decreased from $99.6 million in 2023 to $81.4 million in 2024. The company entered into an approximately $80 million NRE payments plan with key customers, ended 2024 with $68 million in cash and cash equivalents, and completed a $40 million registered direct offering in February 2024. Operational optimization is expected to deliver approximately $12 million in annualized savings.

• 2025 revenue is expected to be more than twofold increase to $50 million to $60 million with positive gross margin.
• 2025 NRE bookings targeted at $20 million to $50 million incremental to already announced.
• Confident in processing start of production (SOP) and ramping volumes in 2026 and 2027 with strengthened liquidity from NRE payments and the $40 million registered direct offering.

• Tariff implications on production and RFI/RFQ procedures.
• Potential delays in customer milestones affecting revenue recognition.

Q: Update on potential nomination with top auto OEM?

A: Passed legal discussions, waiting for customer final alignment.

Q: Cash flow and free cash flow expectation?

A: Continued reduction in cash burn, with NREs being positive contributors, and approximately $12 million annual savings from operational realignment.

Q: Tariff impact and RFI/RFQ?

A: No current impact on operations, and geopolitical neutrality is beneficial for U.S. RFIs/RFQs.

Q: NRE booking details?

A: NREs are recognized based on milestones, and the $80 million NRE payments plan is aligned with customer-defined milestones.

Q: Mobileye Drive platform LiDAR involvement?

A: Mobileye Drive uses InnovizTwo, but Mobileye may work with other LiDAR vendors, and Innoviz's LiDAR is critical in complex driving scenarios.

Q: VW ID Buzz SOP milestones?

A: Approaching C-sample, ramping up high volume manufacturing, and has met design freeze and point cloud freeze milestones.

Q: BMW China and competitive vs Chinese OEMs?

A: BMW Level 3 system with Innoviz LiDAR offers superior user experience compared to Level 2 systems.