Innoviz Technologies Ltd. Q3 FY2025 earnings call

• Recently, a major commercial vehicle OEM selected Innoviz for level four autonomous truck sales production. Also, collaboration with VW and MOIA on level four ID.Buzz project and progress on level three programs.
• Production side: Ramp at Fabrinet with more LiDAR units shipped in Q3; labs achieved key automotive standard certification for LiDAR testing.
• Market consolidation: LiDAR market is consolidating with few competitors remaining that meet OEM performance requirements, positioning Innoviz well.
• Innoviz Smart: Gaining traction in non-automotive applications like perimeter security, with first perimeter security installation completed and more expected by year-end; testing showed Innoviz Smart outperforms leading solutions.
• Innoviz Three: Unveiled, based on time-of-flight technology, offering better performance, cost, and a 60% smaller form factor for easier integration.

Innoviz Technologies Ltd. generated $15.3 million in revenues during the third quarter. Year-to-date, total revenues amounted to $42.4 million, which is approximately 2.3 times the revenue of the same period in 2024. The company saw a ramp at Fabrinet with significantly more LiDAR units shipped in Q3 compared to Q2. Labs achieved key automotive standard certification for LiDAR testing, eliminating costly external testing.

• Revenues: Expect over a twofold increase in revenues year-over-year for 2025 to $50 to $60 million.
• NRE bookings: Increased NRE booking guidance for 2025 to $30 to $60 million, already within this range.
• Cash burn: Cash burn in Q3 was $14 million, expected to decline sequentially in line with guidance for declining year-over-year burn.

• Competitive landscape: Declining number of automotive LiDAR players, with few competitors remaining that can meet OEM performance requirements; geopolitical factors could impact business opportunities.
• Market dynamics: LiDAR market consolidation could affect competitive positioning and business growth.

Q: Update on L3 development program for top five auto OEMs.

A: Working on SODW, still in technical and commercial discussions before sales production, in a developed stage but timing hard to guess.

Q: Competitive environment.

A: Limited competitive offers due to geopolitical and other factors, automotive LiDAR competitive landscape very limited.

Q: Incremental investments in sensor fusion.

A: Split into automotive and non-automotive, different software components and business models; non-automotive has support and maintenance revenues.

Q: Innoviz Three performance improvements and production start.

A: Targets include 60% smaller form factor, power consumption reduction; first launch expected in 2027 for level three programs.

Q: Level four commercial OEM win details.

A: Expect to announce customer name in coming weeks, multiple sensors per vehicle, volume opportunity tied to deployment.

Q: 2026 guidance and strategic priorities.

A: Growth expected from level four vehicle deployments, Mobileye customer base growth, Innoviz Smart potential in non-automotive markets.