AEye, Inc. Q2 FY2025 earnings call

• New wins include being certified as an NVIDIA DRIVE AGX partner, selection for GM-backed WinTOR project, and a $30 million opportunity with a top global transportation OEM. • Launched OPTIS, a next-generation platform deployed to multiple customers with open architecture, AI-driven analytics, and adaptability. • Sales funnel grew exponentially with 30 new potentially high-value customer engagements, 6 revenue-generating contracts, and clear line of sight to additional orders. • Supply chain ready with manufacturing line with LITEON primed to scale. • Partnership with NVIDIA advanced, with Apollo positioned to integrate into NVIDIA's Hyperion platform. • Positive momentum in verticals like defense, smart infrastructure, rail, trucking, aviation, and security. • Capital-light financial strategy with reduced cash burn despite onetime expenses, and disciplined capital allocation.

No specific product segment financial performance with absolute terms and revenue contribution % provided in the transcript.

• Full year 2025 cash burn is expected to be at the high end of the previously communicated range of $27 million to $29 million. • Factors influencing this include a recent lease settlement, convertible note payments, onetime professional service fees, and anticipated investments in product development to support upcoming customer programs.

• Forward-looking statements are subject to inherent risks, uncertainties, and changes in circumstances difficult to predict. • Early phase of customer contracts with smaller initial scopes may impact short-term revenue growth as they lay groundwork for larger follow-on orders over time.

Q: Could you tell me more about the NVIDIA integration?

A: AEye Apollo LiDAR is top of the list on NVIDIA's DRIVE website for performance. Special status with NVIDIA gives access to sales and marketing channels, accelerates conversation with OEMs, and paves path for integration into NVIDIA's Hyperion platform. Also gets support from NVIDIA outside automotive via OPTIS.

Q: Could you give more details on OPTIS and how it fits into the broader strategy?

A: OPTIS is a full stack flexible LiDAR solution integrated into NVIDIA ecosystem, opening platform to third parties for tailored AI solutions, expanding market opportunity and supporting growth in various verticals.

Q: Are there additional deliverables with the $30 million opportunity with the transportation OEM?

A: We're on the customer timeline, integrating and deploying the sensor, with more details to come in coming weeks.

Q: Can you give more color on the tripling of new business wins from 2 to 6?

A: Traction in smart infrastructure, security, defense sectors, with confidentiality agreements in place, and line of sight to thousands of orders, ramping up over next 6-12 months.

Q: Where are sales and marketing expenses being spent?

A: Reallocation of dollars from G&A and R&D, with some incremental spend but mostly reallocation.

Q: Is there an inflection point in momentum with multiple deals closing per quarter?

A: 100+ customers engaged, 30 in advanced negotiation, with opportunities in various industries, and some similar to the $30 million opportunity, with customers pleased with results leading to additional work.

Q: Is the $30 million opportunity annual or over multiple years?

A: Expected to play out over the next 2 to 3 years.

Q: How does physical AI relate to the business?

A: Physical AI refers to interaction of AI with the real world, with NVIDIA active in this space, and Apollo's capabilities bringing in business independently and via partnerships.

Q: Do you need to partner with defense contractors for access?

A: Have multipronged approach, working with integrators, small defense players, and directly with DoDs, with OPTIS enabling bundled solutions for market entry.

Q: Can you break down liquidity?

A: Wait for Q filing on specific breakdown, but finished quarter with ~$19.2 million in cash, and capital raised since then has tripled that, aiding in scaling customer opportunities.

Q: Is the $30 million contract exclusive of the top 5 OEM discussion?

A: Yes, the $30 million contract is separate, and there's advanced discussion with a top 5 global OEM related to NVIDIA partnership.