Innoviz Technologies Ltd. Q2 FY2025 earnings call

Financial results: Q2 revenue was $9.7 million, first half revenue $27.1 million, exceeding 2024 full-year revenue. Cash burn $7.3 million, consistent with guidance. Business accomplishments: Signed a statement of development agreement with a top 5 passenger automotive OEM for a Level 3 global production passenger vehicle program targeting 2027 SOP. Made progress with existing L3 and L4 programs, including partnerships with Mobileye and Volkswagen. Launched InnovizSMART for industrial and nonautomotive applications, with collaborations formed with companies like Cogniteam, Sparsh CCTV, and Cron AI. Production ramp: Started shipping units from Fabrinet's high-volume production line to support growing demand from customers across various applications.

In the second quarter, Innoviz reported revenues of $9.7 million, bringing the first half of 2025 to $27.1 million, which exceeded the revenue for all of 2024. Cash burn in the quarter was $7.3 million. Revenue was driven by a combination of LiDAR unit sales and NREs. The company is on track to meet its full-year revenue target of $50 million to $60 million.

Expect revenue for 2025 to be $50 million to $60 million, more than a twofold increase year-over-year. Raised NRE booking guidance for 2025 to $30 million to $60 million from $20 million to $50 million. Announced an at-the-market (ATM) program of $75 million for general business purposes, including R&D, operations, and supporting production efforts. Intend to use the ATM opportunistically to buffer lumpiness of NRE payments and maintain liquidity.

Actual results could differ materially from forward-looking statements due to risks and uncertainties related to future events and financial performance. See Risk Factors section of Form 20-F filed with the SEC on March 12, 2025.

Q: What do you think it would take for the development program with the top 5 auto OEM to become a series production win?

A: Need to converge contract details and work towards SOP in 2027.

Q: If the development program becomes a series production award, any clarity on annual volumes and standard fit?

A: Volume is high for the large OEM, and it's a standard fit.

Q: How quickly plans to use the $75 million ATM?

A: Will use opportunistically, buffering lumpiness of NRE payments and maintaining liquidity.

Q: Changes with the SOW agreement compared to typical RFI/RFQ process?

A: Beyond RFI/RFQ, OEM needed modifications, so started design changes while concluding contract details.

Q: Ability to tune LiDAR for industrial applications and SKUs?

A: InnovizSMART is same LiDAR as automotive, benefits from functional safety and higher performance.

Q: Strategy for selecting customers and managing engineering resources?

A: 95% focus on auto, ramping production to penetrate nonautomotive, using excess capacity, developing InnovizThree.

Q: Qualitative on commercial revenue and Q3 outlook?

A: Q3 expected to be peak in commercial revenue shipments, ramping production line.