AEye, Inc. Q4 FY2024 earnings call

• 2024 was transformative for AEye with critical milestones like Apollo LiDAR launch, extended financial runway, and increased OEM engagement. Apollo, a compact software-defined LiDAR, has high resolution long-range detection, can work behind a windshield, and was launched in the US at CES with positive response. • Secured growth capital, extending cash runway to mid-2026. Manufacturing line with Tier 1 partner ramping, first units expected Q1 2025. • Partnership with NVIDIA helps access new OEMs. Apollo is being field tested in non-automotive sectors like security, rail, etc. • Disciplined cost management led to outperforming cash burn guidance for Q4 2024 and full year 2024, with low cash burn rate. Fourth quarter GAAP net loss decreased, non-GAAP net loss also improved.

No detailed financial performance for product segments provided in the transcript.

• Expect cash burn for full year 2025 to be $25 million, slightly up from 2024 due to increased investments for Apollo ramp. • Sequential increase in costs in Q1 2025 related to seasonal factors like one-time payroll, but cash burn expected to improve each quarter after Q1 2025.

Q: Could you speak a little bit more about the non-automotive opportunities that AEye is exploring?

A: Sure. Apollo has incredible range, can detect objects at very high resolution, and a small form factor. It has sparked interest in non-automotive sectors like security (seeing far in poor lighting, detecting small objects), rail, and intelligent transportation systems due to its performance and form factor.

Q: Does greater liquidity give you more confidence in meeting OEM financial due diligence requirements?

A: Hey Kevin, this is Conor. Yes, liquidity helps. We walked OEMs through projections and liquidity, and our $30 million in cash and cash equivalents plus $50 million in equity instruments, along with low capital burn rate, helps OEMs feel comfortable we have the resources for high volume production.

Q: Are you able to frame what high volume means?

A: In automotive, high volume means tens of thousands of units, starting with RFQs and production contracts. We work with a Tier 1 partner experienced in producing 100,000+ units annually, giving us an advantage when RFQs come. Our product is built with manufacturability in mind for high volume.

Q: What's your perception about the level of vehicle capabilities people are putting out bids for?

A: We're involved with several OEMs with Level 3 programs on the roadmap including LiDAR. NVIDIA's Hyperion platform ties to demand for high-performance LiDAR for highway driving, which is key for Level 3.

Q: What do you think for passenger cars, sort of like the unit count is?

A: In passenger vehicles, for Level 3, typically 1-2 LiDARs per vehicle. Apollo's small form factor and ability to work behind the windshield make it suitable, with lower per car cost and higher volumes expected.

Q: What's the cash spend in R&D roughly and future spend direction?

A: In Q4, R&D is roughly half of spend. Q1 may have higher cash due to timing of bonuses, but normalized spend is ~50% of OpEx. Future spend is heavily weighted on Apollo go-to-market activities and customer integration work.