AEye, Inc. Q4 FY2024 earnings call

• 2024 was transformative with Apollo's launch, including unveiling in China, field testing, and improvements. It showed 1 km long-range detection and behind-windshield feasibility. CES launch in the U.S. was positively received with live test drives proving feasibility. Secured growth capital extending cash runway to mid-2026. Manufacturing line with Tier 1 partner on track for Q1 2025 B samples. Partnership with NVIDIA helps access OEMs. Apollo is being explored in non-automotive sectors like security, rail, and intelligent traffic systems.

AEye's key segment is the Apollo compact software-defined LiDAR sensor. Apollo was unveiled in June 2024, underwent OEM evaluations, and saw field testing. It demonstrated 1 kilometer long-range detection and can be implemented behind a windshield for automotive ADAS. Revenue contribution isn't detailed by segment percentage, but Apollo is central to the company's progress with its unique attributes offering an alternative to roof-mounted LiDAR systems.

• Expected cash burn for full year 2025 is $25 million, slightly up from 2024 due to ramping Apollo. Sequential increase in costs in Q1 2025 related to seasonal factors (one-time payroll), but cash burn expected to improve each quarter thereafter.

Forward-looking statements are subject to inherent risks, uncertainties, and changes in circumstances. Actual results may differ materially from those contemplated by forward-looking statements. Risks, uncertainties, and other factors are detailed in reports filed with the Securities and Exchange Commission.

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

A: Apollo's incredible range, high resolution, and small form factor make it suitable for non-automotive sectors like security (perimeter security, airport safety), rail, and intelligent transportation systems. It's being field tested in China, U.S., and EU. Apollo's software adjustability allows quick turnaround for different OEMs.

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

A: Yes, liquidity and the capital-light model help OEMs feel confident in the company's resources to reach high volume production. The company has $22.3 million in cash, cash equivalents, and marketable securities, with additional capital raised, and a low cash burn rate which stretches funds further.

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

A: High volume in automotive is tens of thousands+ units. Working with a Tier 1 partner with experience in scaling to 100,000+ units annually gives an advantage. Apollo was built with manufacturability in mind for high volume production.

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

A: Many OEMs have Level 3 programs on their roadmaps including LiDAR. NVIDIA's Hyperion platform drives demand for 300m range LiDAR, which is key for high-speed driving in Level 3 applications.

Q: Do non-personal car markets offer exciting opportunities for Apollo?

A: Yes, Apollo is applicable to trucking, buses, RoboTaxi. It's software adjustable for quick turnaround on proof of concept and integration for different markets.

Q: What do you think for passenger cars, sort of like the unit count and total revenue opportunity per vehicle?

A: Apollo's small form factor and performance may reduce the number of LiDARs per vehicle, but higher volumes are expected in passenger vehicles due to its behind-windshield feasibility and performance.

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

A: R&D spend is roughly half of overall OpEx. Q1 2025 has one-time payroll costs due to seasonal factors. Future focus is on go-to-market activities and customer integration work.

Q: How geographically fluid is AEye?

A: AEye is geographically fluid through partnerships. It has a global Tier 1 partner with manufacturing capabilities in multiple regions and local partners in China and EU for engineering, enabling presence in significant regions.

Q: Where do you see pricing landing in negotiations with OEMs for LiDAR?

A: Pricing is expected to be well below $1,000, depending on volumes. The Tier 1 partnership provides cost leverage, making AEye competitive price-wise.

Q: What's the timing from ramp of the Apollo B shipments to commercialization with personal auto models?

A: The automotive development cycle from contract award is 2-3 years.