Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
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| I I'm positive that we'll be able to reach to them |
| At CES we unveiled the ID.Bus light commercial vehicle program as our second program with the Volkswagen Group This represents an important development for three reasons first it shows our strength of our Relationship with Volkswagen, our progress towards SOP with our first program is tracking we'll, and they have confidence in our ability to bring a second program to the market within the same time frame |
| I believe that our experience, our customer base is giving us many advantages |
| We delivered Q4 2023 revenues of nearly $15 million an increase of nearly 850% year-over-year and also above the high end of our quarterly guidance range The strong revenue performance came from a combination of production revenues Robust sample shipments and NREs and it validates our three-pronged approach to growing future revenue streams |
| And for those OEMs, engaging with a lighter supplier while the wheels are already in motion to be ready for production in late 2025 is a significant advantage |
| We position the business for rapid transformational growth |
| The combination of strong revenues and disciplined cost management led to an impressive cash performance with our quarterly cash burn at just $14.5 million, a record low since InnoVizz became a Public Company, which allowed us to finish the year with approximately $150 million, in cash and equivalents, leaving us with a strong runway that we expect to last through the market share capture window |
| Needless to say, we were excited with this outcome and it demonstrates the impact that growing revenues coupled with cost management can have on the trajectory of cash line |
| Second the volumes from these programs are incremental to the award that we announced in 2022 supporting additional revenue growth and accelerating our path towards breakeven |
| But through the process, we have built a solid relationship with the customer and they appreciate and respect our technology and we are expecting the RFI process for the new global level three vehicles in the coming months |
| And while customer decision timelines which are out of outside of our control, didn't conclude before year end, I feel like the outperformance on the revenue line is a proof point of our desire to build a longer term track record of under promising and over delivering |
| This led to a full year 2023 revenue of $20.9 million, well ahead of the high end of our guidance re -- guidance range coming in at a very strong 245% year-over-year growth in revenues |
| All in I'm very excited with the progress we are making with this important customer Throughout 2023 we said we believe there are additional opportunities for us at Volkswagen Beyond the Series production award we secured in 2022 and with the ID buzz announcement at CES we delivered on that promise |
| On the revenue side, '23 was very strong |
| In conclusion, the financial performance in the fourth quarter and the full year of 2023 was stellar |
| For innovators integrating with these platforms establishes a meaningful competitive advantage that can reduce friction in the LiDAR selection process and increase our odds of winning additional business from OEMs |
| We also saw positive customer developments in the quarter with BMW and Volkswagen Unveiled a new shared program with Mobilite as the platform partner and unveiled a strategic realignment to maintain our cost discipline and extend our cash runway as |
| This is obviously important for our existing customers, but it also gives us a critical competitive advantage that is becoming a point of increasing focus in our conversations with new customers |
| We are in a great position heading into 2024, and I'm confident that we will be, that we will have a lot more to talk about in the coming quarters |
| A few final players will remain confident that we have a strong position in these RFQs and that we have a, we have good odds of converting them into production |
| And with that, let's segue into what I think is some very positive news out of China |
| In addition to locking up incremental market share volume from either source helps absorb our fixed cost and bring us closer to being breakeven and ultimately free cash flow positive 2023 was very productive in terms of growing our relationships with new customers |
| We are indifferent where the volumes come from, whether it's from an existing customer or a new customer, each brings its own benefits, additional volumes, and NRE service revenues with an existing customer can require less incremental work and relationship management, along with other synergies resulting in a stronger margin profile over time and volumes with new customers can offer entry points for new growth in additional vehicles and platforms down the road |
| Looking back at 2023, I'm proud to say that we have delivered on many accomplishments |
| The customer has impressed, was impressed, and with our solution, and we have continued to move forward in the bid process |
| Q4 was a record quarter for us There has been some important customer progress since the years and since the quarter has ended The first thing I want to highlight is the amazing revenue performance full year revenues of nearly $21 million |
| We've been spending a lot of effort and time in trying to bring those opportunities and unlock them, and I believe that Innova's position very strongly to make that a reality |
| So we're seeing in front of us several big opportunities that we are working on for quite a long time, and that can unlock opportunities for us for, I would say for the next two years |
| We also see a long runway for growth with Mobilite, as an autonomy platform partner as you've heard us talk about before There are three leading autonomous driving platforms in the automotive industry |
| Full year revenues of nearly $21 million were up 246% year-over-year |
| Statement |
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| On the competitive side, we are seeing a LIDAR players struggling with their technology and SOP timelines |
| As for the NRE booking, while we were able to secure only roughly $12 million of new booking, having the new customer programs decision move into 2024 made it difficult for us to hit our '23 targets |
| So QQ one was roughly almost 400 negative margins, and then Q4 was negative 15% margins |
| And, and one of them is risk related to doing something that someone else didn't do |
| On the cost side, operating expenses for Q4 2023 were $29.5 million, a decrease of 12% from $33.5 million in Q4 2022 and on a full year basis, 2023 operating expenses of $121 million came in roughly $4 million lower than the full year of 2022 for a 3% decline |
| They added a new team coming from another activity they, they, they stopped working on, and that team had to be integrated into the team, which kind of slowed down things towards the end of the year |
| It took some time to solve for, but ultimately there were several creative solutions that overcame the challenges |
| Just on the RFI and RFQ process, you know, you mentioned there are delays |
| Research and development expenses for Q4 2023 were $22.1 million, a decrease from $26.2 million in Q4 2022 |
| The cost of bringing a level three or level four program to the market is substantial and it'll be extremely expensive for OEMs to run duplicative tech stacks in different markets with different ciders vendors |
| If regulators there decide to embrace level three autonomy, it can be done in a very short audio and similar to the prior topic, this could have implications globally |
| If for any reason they learn they need to change something in the product on either side, whether it's the LiDAR on all the compute platform, it's, it's I would say it's a very expensive decision to make and therefore they're, they are cautious on kind of freezing the design and kicking off |
| Can you go into more details on what the delays are? Is it, is it the additional competition or OEMs just more cautious or you know, technical obstacles may maybe if just give some details on that |
| And while Chinese exports haven't found their way to the US market, they are starting to have an early impact in some parts of Europe and the rest of the world |
| So, so far we didn't get any communication around ev slow down related to the volumes that they expect |
| Even though OEM's decisions are moving, moving slower than planned, their SOP timelines mostly haven't changed |
| To start, I was hoping you could comment on how the Forward Looking order book has evolved, which at one point I think was estimated to be north of $6 billion, and to what extent the order book and future Revenue Pipeline is being impacted by slower projected customer sales of EVs using your LiDAR |
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