Mobileye Global Q1 2025 Earnings Call Transcript

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April 24, 2025
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Operator

Greetings, and welcome to the Mobileye First Quarter twenty twenty five Earnings Call. At this time, all participants are in a listen only mode. A brief question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Dan Gauff.

Operator

Mr. Gauff, you may begin.

Dan Galves
Dan Galves
Chief Communications Officer at Mobileye Global

Thanks, Stacy. Hello, everyone, and welcome to Mobilize first quarter twenty twenty five earnings conference call for the period ending 03/29/2025. Please note that today's discussion contains forward looking statements based on the business environment as we currently see it. Such statements involve risks and uncertainties. Please refer to the accompanying press release, which includes additional information on the specific factors that could cause actual results to differ materially.

Dan Galves
Dan Galves
Chief Communications Officer at Mobileye Global

Additionally, on this call, we will refer to both GAAP and non GAAP figures. A reconciliation of GAAP to non GAAP financial measures is provided in our posted earnings release. Joining us on the call today are Professor Amnon Shashua, Mobileye's CEO and President and Moran Shamesh, Mobileye's CFO. Also joining today for the Q and A session is Dimrod Nipuchthan, Mobileye's EVP of Business Development and Strategy. Thanks, and now I'll turn the call over to Anon.

Amnon Shashua
Amnon Shashua
CEO and President at Mobileye Global

Hello, everyone, and thanks for joining our earnings call. Starting with the results, Q1 was closely aligned with our expectations. Revenue was up 83% year over year compared to the unusually low Q1 of last year due to the meaningfully tough growth of inventory in Q1 twenty twenty. Operating margins recovered sharply on a year over year basis due to the higher revenue. Operating expense growth, 14% in Q1, should moderate to middle single digits on average in the balance of the year as the current R and D infrastructure is sufficient to execute all the advanced products and programs that will come online over the next set of years.

Amnon Shashua
Amnon Shashua
CEO and President at Mobileye Global

Operating cash flow was again a highlight at $109,000,000 in Q1. Business trends for our core single chip front camera driving assistance systems were fundamentally strong in Q1, both in terms of current supply demand and design wins for future programs. Volume in Q1 was 8,500,000 units, and we expect Q2 volume to be about 7% higher and for Q2 revenue to be up approximately 7% year over year. After a volatile 2024, Q1 volumes and Q2 orders have been quite stable, with some upward variance from China OEMs compared to our original expectations. Turning to the macro environment, clearly global light vehicle production in 2025 has become significantly more uncertain as the industry grapples with new trade frictions that change frequency.

Amnon Shashua
Amnon Shashua
CEO and President at Mobileye Global

We are fortunate that the simplicity of our supply chain, in which our customers are the importers of our product, means that we should not directly incur any material tariff cost. Nevertheless, we'll be affected by any negative impact to global production volumes and consumer spending resulting from these trade tensions. What we know today is that Q1 results were solid, Q2 order flow is above original expectation and consistent for the last couple of months, and we have seen no deterioration in forward production schedules from our customers. We also know that our original outlook included the level of conservatism that was intended to reflect the risk of macro deterioration in the second half of twenty twenty five. Given expected first half volumes, our own analysis of the direct impact of current tariffs on our customers and analysis by third parties like S and P Global, we continue to see a strong potential to perform within the guidance range for full year 2025.

Amnon Shashua
Amnon Shashua
CEO and President at Mobileye Global

Of course, there is potential for price elasticity and other economic effects on auto consumers, but this is beyond our ability to analyze at this time. Turning to the longer term, design win activity was very brisk in this quarter. This trends this tends to be bumpy, but if we compare to the projected future volumes achieved from design wins in all of 2024, the design wins in Q1 are already at around 85% of what we achieved last year. Additionally, we are seeing potential for an inflection point in the value per unit of mass market driving. RIM is now included in in Ford BlueCruise, and this cloud enhanced functionality will also be adopted by a Korean OEM in future programs based on a large program we won in Q1.

Amnon Shashua
Amnon Shashua
CEO and President at Mobileye Global

A potentially bigger tailwind for Mobileye is the trend towards multi camera setup going mainstream in the coming years due to more stringent future safety requirements, and also the need to provide highway hands free driving on mass market vehicles for OEMs to remain competitive. BYD boosted their trend with their God's Eye announcement, which was a clear message to the industry that highway hands free driving will likely be another feature on mainstream vehicles in the coming years. Mobilize Surround ADAS through the IQ six high is the perfect solution for that space, and we announced our first design win with Volkswagen during the quarter. Technology functionality and efficiency are just as important as prior year, and we have only and we have the only offering that can support all perception, mapping, driving policy, and driving function from a single SoC on a single ECU, fully upgradable over the air. And this shares a common technology backbone with our more advanced product, which supports cost efficient modular product portfolio for OEMs across all vehicle segments.

Amnon Shashua
Amnon Shashua
CEO and President at Mobileye Global

Mobilize a true one stop shop, and this really aligns with OEM software defined vehicles and architecture consolidation goals. We're also seeing substantial opportunities from new customers. During the quarter, we achieved our first design win in about eight years with a particular European OEM. We're also seeing traction from our imaging radar product, where the first design win outside of the DRIVE product line is imminent with another European OEM. This OEM is expected to choose our imaging radar as an enabler of high speed highway level three solutions, which is a testament to the differentiation of this sensor and the big vote of confidence towards Chafford and DRIVE products in general.

Amnon Shashua
Amnon Shashua
CEO and President at Mobileye Global

OEM decision making for supervision and chauffeur remains slower than we would like, but we continue to make progress with a number of OEMs, including two new top 10 global OEMs prospects in the past few months. Execution on the Porsche and Audi programs remain on track, and we're looking forward to provide first prototype demos of these systems in the second half of twenty twenty five. That will be the first opportunity for external audiences to experience the new IG6 high based software, software and hardware in a production intensive vehicle. Our Mobileye Drive self driving system for robot active business continues to accelerate. We announced the next step with Lyft during the quarter, announcing Dynasys as the geography for initial operation, Marubeni as the owner operator and Lyft as the demand platform.

Amnon Shashua
Amnon Shashua
CEO and President at Mobileye Global

We expect to choose and announce the vehicle OEM in the coming months. In a completely fresh development, simultaneous to the beginning of this earnings call, Volkswagen and Uber issued a joint release announcing the two companies have agreed to integrate MobilEye drive enabled ID Buzz robotaxis onto the Uber ride hailing network in Los Angeles starting in 2026. This is an excellent example of the ecosystem approach we are taking in this business, which we believe has significant scale benefit. As we have discussed before, we are working with Volkswagen to integrate the Mobilize Drive self driving system into Volkswagen ID. Was produced on the same assembly line as normal vehicles and that's able to be scaled up or down rapidly.

Amnon Shashua
Amnon Shashua
CEO and President at Mobileye Global

In this agreement, Volkswagen's mobility arm, Moya, will act as the fleet management system provider of the vehicles and Uber and the Uber network will be the demand generating platform. Our ecosystem approach is capital light for us, and it puts the responsibility for each layer of this business into actors that have relevant competencies and the ability to add value. On the technology front, our low cost sensor set, efficient compute, and generalizable AI software is expected to enable rapid scaling across geographies, and that's a compelling price point for development. Finally, we congratulate another of our Robotaxis production partners, Holland, for booking an order from Jacksonville Transit Authority to purchase the Holland Urban Autonomous Shuttle, which is enabled by Mobilize Ride. Thanks, and I will turn the call over to Moran.

Moran Shemesh Rojansky
Moran Shemesh Rojansky
CFO at Mobileye Global

Thank you, Amun, and thanks for joining the call, everyone. Before I begin, please be aware that all my comments on profitability will refer to non GAAP measurements. The primary exclusion in Mobilize non GAAP numbers is amortization of intangible assets, which is mainly related to Intel's acquisition of Mobilize in 2017. We also exclude stock based compensation. Our Q1 results slightly exceeded the color we provided on the Q4 twenty twenty four earnings call in January, primarily due to modestly higher volume from Chinese OEMs and lower than expected operating expenses due to efficiencies in facilities and operations, along with some timing related items.

Moran Shemesh Rojansky
Moran Shemesh Rojansky
CFO at Mobileye Global

Revenue was up 83% year over year with a high level of growth due to normalized volume in Q1 twenty twenty five compared to Q1 of twenty twenty four, which was impacted by meaningful inventory digestion by our Tier one customer. Year over year comparisons will be more relevant going forward as we believe supply and demand will well align in the back half of twenty twenty four. On a sequential basis, Q1 gross margin was up slightly versus Q4 twenty twenty four on a lower percentage of supervision revenue, while IQ gross margin were largely unchanged. Operating expenses were up some out versus Q4 as expected. This is related to some higher payroll expenses due to lower reserve duty refunds in Q1 and slight headcount growth, higher spending on Robotexi projects, higher marketing spend due to participation in industry events and other items that are largely timing related.

Moran Shemesh Rojansky
Moran Shemesh Rojansky
CFO at Mobileye Global

We continue to expect approximately 7% year over year growth in adjusted operating expenses in 2025 compared to $926,000,000 in 2024. We'd expect Q2 to be slightly higher than Q1 and for Q3 likely be the highest quarter of the year. We don't expect global macro issues to impact our operating expenses materially as the majority is focused on development of technology that supports our advanced product. We will continue to look for opportunities for efficiencies as we always do. As it relates to tariffs, we are fortunate that our supply chain is pretty simple.

Moran Shemesh Rojansky
Moran Shemesh Rojansky
CFO at Mobileye Global

IQ chips for vehicle production in The US are imported by our customers, not by Mobilize. Therefore, we should experience no direct P and L impact from tariff payments. We also have no material currency exposure on our revenue, and our cost exposure to the new Israeli shekel is largely hedged at this point. A bit more detail on our geographic exposure. We believe a very significant portion of our chips supply to Europe and Asia Pacific are used for local consumption rather than for export to The US.

Moran Shemesh Rojansky
Moran Shemesh Rojansky
CFO at Mobileye Global

Approximately 25% of our chips are shipped by our customers directly to The US and are currently exempt from import tariffs, and 20% to China where we believe it is used for local production. Although tariffs on auto components are not directly favored by us, we will fully cooperate with our customers in the next few months to optimize their production needs and potentially make minor changes to logistical infrastructures to mitigate the overall cost. While there is no direct impact, we, of course, will be exposed to any negative impact to vehicle production volume driven by supply impacts related to tariff costs on vehicles and components imported to The US, as well as potential consumer demand impact from higher vehicle pricing or general weakening in economic conditions. S and P IHS published a new forecast last week that implies global production deterioration of around 2% in the balance of 2025. For specific customer exposures, this would translate to a bit below 1,000,000 lower IQ units in the balance of 2025.

Moran Shemesh Rojansky
Moran Shemesh Rojansky
CFO at Mobileye Global

But this is just one data point. We have independently been reviewing the sector tariffs that apply to the automotive industry, vehicles and auto parts to map the potential risks. Our baseline view is that a scenario incorporating production shutdowns of imported vehicles that are unprofitable under the new tariff regime, in combination with demand related impact from higher vehicle pricing in general, could potentially drive 3% to 7% reduction in the volumes of our top 10 customers, which translates to about 1.1 to 2,200,000 units annualized. This is, of course, very difficult to predict as the mix of sales in terms of OEMs and brands might change dramatically because of tariffs, and the potential for shifts in production sites and regions could mitigate the initial impact. Bottom line is that prior to recent tariff related development, our regional outlook already assumed a more conservative view of twenty twenty five production customers than than our customers and S and P Global.

Moran Shemesh Rojansky
Moran Shemesh Rojansky
CFO at Mobileye Global

Even after the most recent forecast reduction by S and P to reflect the current tariff regime or our own somewhat more negative analysis, our original expectation remains valid. We will continue to monitor the situation closely given the current complete vehicle tariffs, vehicle components tariffs scheduled to begin on May 3 and potential for reciprocal tariffs after the ninety day policy. Turning to Q2, we expect to deliver approximately 8,700,000 to 9,300,000 IQ units and for our revenue to be up approximately 7% year over year at the midpoint of the range. We expect gross margin to be at or slightly below the Q1 level and for operating expenses to be seasonally higher in Q2 versus Q1, in line with our previous expectation. Thank you, and we will now take your questions.

Operator

Thank you. We will now be conducting a question and answer session. Your first question comes from Joe Spak with UBS. Please go ahead.

Joseph Spak
Joseph Spak
Managing Director at UBS Group

Thank you. Good morning everyone. I guess a couple of things. Maybe just to start with the VW Uber announcement. I know it's early days, but how do you envision that working?

Joseph Spak
Joseph Spak
Managing Director at UBS Group

Is that you sort of selling a system? Do you think you is there sort of an ongoing potential payment from you for rides? Or how should we think about that evolving?

Nimrod Nehushtan
Nimrod Nehushtan
Executive VP of Business Development & Strategy at Mobileye Global

So the business model is such that Mobilize delivering the self driving system, which includes the ECU, the hardware, the software for the self driving software, and the radar sensors. So there's a one time payment per car on these components. And in addition, is a recurring license fee that is a derivative of the overall utilization of the fleet. So the more the fleet is driving, the more we're generating. In addition to the one time payment for the system.

Nimrod Nehushtan
Nimrod Nehushtan
Executive VP of Business Development & Strategy at Mobileye Global

The Volkswagen role is to provide reduce the self driving cars with mobilized drive system installed in the manufacturing line. And Uber are the demand generator that can offer self driving service through their application to the consumer audience. Basically, the advantages that we have in this business model is the fact that we have a very geographically scalable technology as well as economically scalable technology. We come from a very cost efficient design to begin with that can be easily scaled not just within Los Angeles, which is the first market mentioned in this announcement, but also of course afterwards continued expansion to additional locations. And Volkswagen who are a very high volume vehicle manufacturer can quickly scale the amount of robotaxis they produce in the manufacturing line as demand, you know, increases over So overall, we think that there and of course, Uber is a very well renowned demand generator, probably the leading one in The US and globally.

Nimrod Nehushtan
Nimrod Nehushtan
Executive VP of Business Development & Strategy at Mobileye Global

So we have we think the key ingredients necessary to become a very competitive and leading car driving service in The US in the next couple of years.

Joseph Spak
Joseph Spak
Managing Director at UBS Group

Great. Thanks. And then just maybe one more near term, just on the 2Q outlook and the units you just indicated. I think it's stronger certainly than where the Street was. I think it's above 1Q levels as well.

Joseph Spak
Joseph Spak
Managing Director at UBS Group

Do you I know you sort of talked about some of your own checks and work to sort of get comfortable with where orders are and production and inventory. But do you get the sense that there's a little bit of ordering ahead of maybe some uncertainty and that they're willing to carry a little bit more inventory in the channel?

Moran Shemesh Rojansky
Moran Shemesh Rojansky
CFO at Mobileye Global

Yeah. So I must say we cannot indicate anything specific for Q2 of sense of urgency as these orders have been pretty stable as of February. And even at the beginning of this year, we kind of in our forecast we predicted around 8,500,000 Q1. So it's 8.5 to 9,000,000 units per quarter. That's what we're also seeing in the last three quarters.

Moran Shemesh Rojansky
Moran Shemesh Rojansky
CFO at Mobileye Global

So also the second half of twenty twenty four was between 8.59. So this is something pretty normal for now. When we started the year, we kind of based our focus again on demand, which that indicates no inventory or excess inventory at our customers. So we see orders aligned with that. We have more visibility maybe towards the end of the quarter, but there's nothing specific we can indicate.

Dan Galves
Dan Galves
Chief Communications Officer at Mobileye Global

Yes, so just to summarize, if there is any pull ahead in this number, it hasn't really nothing's really changed since February, and it wouldn't be very material versus kind of what we're seeing in kind of end user demand.

Joseph Spak
Joseph Spak
Managing Director at UBS Group

Thanks for that. Appreciate it.

Dan Galves
Dan Galves
Chief Communications Officer at Mobileye Global

Thanks, Joe. Next question, please.

Operator

Joshua Buchelter with TD Cowen. Please go ahead.

Joshua Buchalter
Director - Equity Research at TD Cowen

Hey, guys. Thank you for taking my question and congrats on the stellar results. Yes, I wanted to maybe follow-up on that previous one. I mean, the back half guide implies a pretty sub seasonal end of the year. I guess, any way you could walk us through how much of that is conservatism on unit versus share loss by your engaged customers and maybe any sort of hair cutting that you guys are doing to account for the uncertainty?

Joshua Buchalter
Director - Equity Research at TD Cowen

Thank you.

Dan Galves
Dan Galves
Chief Communications Officer at Mobileye Global

Thanks, Josh. This is Dan. I can take that one. So, yeah, I mean, kind of the way our business works is we have kind of full visibility three months ahead, something like that, and then we for the couple of quarters beyond that. That can really change at any time.

Dan Galves
Dan Galves
Chief Communications Officer at Mobileye Global

We haven't seen any change in the back half. We but obviously kind of uncertainty has risen, so we don't want to get ahead of our skis. But yeah, the fact that we're going to do kind of more than 50% of the guide, the full year guide in the first half is certainly a good sign, and we have no reason to think necessarily that demand is going to fall in the back half. But just given the current environment, we didn't really want to get ahead of ourselves.

Amnon Shashua
Amnon Shashua
CEO and President at Mobileye Global

Totally, we took provisions we took provisions that demand will go down, right? Because we started our guide in the beginning of the year in a very conservative manner. So even if demand falls, so far we feel that we meet the range of

Amnon Shashua
Amnon Shashua
CEO and President at Mobileye Global

the guidance.

Dan Galves
Dan Galves
Chief Communications Officer at Mobileye Global

But we're not getting any clear indication that it will fall. That's kind of the point.

Joshua Buchalter
Director - Equity Research at TD Cowen

Got it. No, thank you. That's been pragmatic and makes a lot of sense. I guess a follow-up, guess, how would you characterize your customers' engagements in design activity? I mean, you mentioned I think you had 85% of last year's design wins in the first half.

Joshua Buchalter
Director - Equity Research at TD Cowen

I mean, your OEM customers have been, I think slower than we all expected to move in particular with advanced ADAS products. Like how do you see the current environment impacting their appetite to invest in new technology? Because I can see it going either way. And any more color you could provide within the 85% your design wins year to date, any sort of directional indicators across base ADAS versus surround supervision chauffeur? Thank you.

Nimrod Nehushtan
Nimrod Nehushtan
Executive VP of Business Development & Strategy at Mobileye Global

Yeah, I can take that. So, what we're seeing so far is a very strong, continued strong demand from our customers to source our products for future generations. That comprises the majority of the 85% or the volumes that we won during Q1. And it's a mixture of surround ADAS and basic ADAS products. We are pretty much in a position of solidifying our position with our top 10 customers for years to come after these design wins.

Nimrod Nehushtan
Nimrod Nehushtan
Executive VP of Business Development & Strategy at Mobileye Global

When it comes to sourcing advanced product, I think it makes sense that the previous couple of months have created maybe somewhat of a delay in some of the decision making because of urgent matters that they need to address regarding tariffs, and I think it makes sense. What did not change is that their understanding of the necessity of having advanced products in the future. And competition is moving forward for each OEM and just recently Tesla continued to double down on their commitment to long term autonomous driving in their product and again stressing the significance of self driving technologies in the future, in the near future. And that of course continues to apply a lot of pressure on OEMs to move forward. During this quarter, have had two engagements with two of our top 10 customers that started with Teradata and now we're expanding to Level three and Level two plus plus to show for a supervision evaluation that are that have kind of moved through the pipeline to more advanced stages of evaluation and we're reaching convergence with a couple of other opportunities.

Nimrod Nehushtan
Nimrod Nehushtan
Executive VP of Business Development & Strategy at Mobileye Global

So we still see movement in the right direction and we're seeing also more and more interest in specifically level three eyes off driving targeting end of twenty twenty seven roughly speaking with big OEMs, so that is also an encouraging sign that even though the uncertain times, they are still committed to the long term prospect of intelligent driving in the future for them and they're working with us to make progress in that front.

Joshua Buchalter
Director - Equity Research at TD Cowen

Thank you.

Operator

Next question, Luke Schuch with Baird.

Luke Junk
Senior Research Analyst at Robert W. Baird & Co

Good morning. Thanks for taking the questions. First, maybe if we could just talk about what's going on in China right now and the fact that things have been trending relatively better the last couple of quarters. I know you haven't read into that too much today, but now it's just an accumulation of data points. Are you better able to tease out what's going on with those customers?

Amnon Shashua
Amnon Shashua
CEO and President at Mobileye Global

I think that our focus now in China is supporting our Chinese OEMs on the global exports and also on the local on the local market. And then we are outperforming our initial expectation. So roughly 20% to 30% market share is quite stable. On the advanced product, we see opportunities after we start rebuilding our second generation product, which is going to be based on IQ six. So this is sometimes closer to the end of the year and not now.

Amnon Shashua
Amnon Shashua
CEO and President at Mobileye Global

So our business development on our advanced product is more focused on on western customers and and not in China. China, are focused on ADAS and also supporting our western OEMs, Porsche and Audi, in their launch of Supervision and Chauffeur also in China End Of Twenty Twenty Six and 2020

Moran Shemesh Rojansky
Moran Shemesh Rojansky
CFO at Mobileye Global

Just to give some sense on the numbers for China, so we started 2024 with relatively low numbers, so we sold approximately 400,000 units. And then from the second half of twenty twenty four, we're seeing increased volume. So in the second half, '1 point '2 million units. We were still conservative at the beginning of the year with the guidance. So we were aiming approximately 500,000 units a quarter.

Moran Shemesh Rojansky
Moran Shemesh Rojansky
CFO at Mobileye Global

And we are seeing demand more than that in the first and also the second quarter. So in terms of the guidance versus the beginning of the year, it's some source of upside.

Luke Junk
Senior Research Analyst at Robert W. Baird & Co

All very helpful. Thank you. And then just a quick one. The imaging radar award that you believe is imminent, are you implying that that is a potential chauffeur award as well?

Amnon Shashua
Amnon Shashua
CEO and President at Mobileye Global

No, this particular award is just for the sensor itself. We have additional opportunities of the imaging radar bundled with the chauffeur product, but that is separate.

Luke Junk
Senior Research Analyst at Robert W. Baird & Co

Understood. Thank you.

Amnon Shashua
Amnon Shashua
CEO and President at Mobileye Global

Thanks, Luke.

Operator

Next question, Shreya Sattil with Wolfe Research. Please go ahead.

Shreyas Patil
Vice President - Equity Research at Wolfe Research, LLC

Hey, thanks so much for taking the question. Maybe just back on 2025 guidance. I think previously you had talked about an expectation of share gains or ADAS penetration increase embedded in the 2025 guide. And I'm wondering if that if you're still seeing that at the moment, I understand that overall the production expectations that you've embedded are still consistent with what we're seeing in production, but I'm just wondering if you're also seeing ADAP penetration increases or share gains as well.

Moran Shemesh Rojansky
Moran Shemesh Rojansky
CFO at Mobileye Global

Yes. So as you mentioned about the global production, at the midpoint of our guidance, we kind of now aligned with third party forecast, forecast of approximately 7%,

Moran Shemesh Rojansky
Moran Shemesh Rojansky
CFO at Mobileye Global

our

Moran Shemesh Rojansky
Moran Shemesh Rojansky
CFO at Mobileye Global

top 10 customers. As for the incremental units from new launches and mobilized share gains within our top customers, in January, we are expecting 1,400,000 units. That looks in line with expectation and maybe even ramping up a bit faster than expected. So we're still we this is still a source of additional units. And also the China expectations which were more conservative at the beginning of the year and we're seeing an upside also for China OEM.

Shreyas Patil
Vice President - Equity Research at Wolfe Research, LLC

Okay. Great. And then maybe on just trying to think through the opportunity that you see here in Mobileye Drive. The deal that was announced today with Uber just comes off the heels of a similar program with Lyft. So I'm wondering if we should see this as an indication of momentum accelerating in Robotaxi deployment broadly.

Shreyas Patil
Vice President - Equity Research at Wolfe Research, LLC

And if that's the case, obviously Uber and Lyft are the two largest players in The U. S, but I'm wondering if there are other opportunities in the pipeline as well, maybe in other markets.

Nimrod Nehushtan
Nimrod Nehushtan
Executive VP of Business Development & Strategy at Mobileye Global

Yeah, so definitely we're seeing accelerated momentum and increased interest and demand that seems a broader realization in the industry that robotaxi and self driving services are here. It's not a question of if, it's a question of when and how much. And we are a very attractive partner

Nimrod Nehushtan
Nimrod Nehushtan
Executive VP of Business Development & Strategy at Mobileye Global

in the

Nimrod Nehushtan
Nimrod Nehushtan
Executive VP of Business Development & Strategy at Mobileye Global

sense that our products are scalable, cost efficient, can be deployed globally in all major markets in the near future. So Volkswagen is our kind of leading partner, strategic partner for producing robotaxi cars from assembly lines in scale that can be quickly ramped up according to demand. Partnering with Lyft and Uber, the two biggest mobility operators in The US is very, very important to quickly reach the pockets of millions of consumers as probably you can imagine. But in addition to this, we're also working on launching in Europe beyond just The US in similar timeframe. Again, with Volkswagen, a very strong European OEM allows us to be very one of the earliest, if not the first to launch in Europe.

Nimrod Nehushtan
Nimrod Nehushtan
Executive VP of Business Development & Strategy at Mobileye Global

Partnering with Holland gives us another angle of transportation in different, maybe slightly different use cases. And beyond all of those, we're still we're also working with additional OEMs that are very interested in this business model, car manufacturers to produce level four cars in their manufacturing lines, partnering with Mobileye self driving technology with Mobileye Drive. And then once Mobileye can bring to the table the mobility operators, it really opens the door for more OEMs that are interested in similar model. And if we think about making a revolution of robotaxis, it's about scale. That's the next big thing.

Nimrod Nehushtan
Nimrod Nehushtan
Executive VP of Business Development & Strategy at Mobileye Global

And the scale is not just a few hundreds of cars, it's thousands and then tens of thousands, hundreds of thousands of cars in Europe and US. And to get there, we are partnering with the most scalable OEMs on the planet. So that's kind of our strategy and we do see very, very accelerated momentum in the past three to six months, I would say.

Shreyas Patil
Vice President - Equity Research at Wolfe Research, LLC

Great, thanks.

Adam Jonas
Adam Jonas
Analyst at Morgan Stanley

I might have to get on the call for a second real quick.

Operator

Next question, Adam Jonas with Morgan Stanley.

Adam Jonas
Adam Jonas
Analyst at Morgan Stanley

Hey, everybody. Just a couple questions. First is a bit of a maybe this might sound oddball, quirky technical, but we're hearing from some that the, Gen AI has helped possibly increase the value of dashcam, video capture that could be really relevant, to the ability for, an Uber and Lyft fleet or other fleets to capture data. Obviously, it's not the same fidelity and and in the same sensor modality and connected to the computers the way your systems is very sophisticated way are. But I was I was curious if if you really if you subscribe to that, that at least at some level, the coefficient of value that you might apply this aftermarket dashcam video capturing footage from around the vehicle who's driving around might might have some improved value given given the AI, Gen AI revolution going on?

Adam Jonas
Adam Jonas
Analyst at Morgan Stanley

That's the first question. Thanks.

Amnon Shashua
Amnon Shashua
CEO and President at Mobileye Global

But in terms of data collection from from vehicles, we have what call REM one point o, which is sending images to the cloud, sending some condensed data to the cloud. We have been developing a new generation of REM which we call Suprem, Supreme REM, which is based on sending pictures, still very low bandwidth, but sending pictures to the cloud. And we'll have much to talk about in the coming months or years about this new technology. So there's quite a lot of progress in terms of what kind of data, at what frequency of data, volume of data you can start extracting from vehicles and still meet also regulatory approvals. There's privacy concerns and all sorts of issues there.

Amnon Shashua
Amnon Shashua
CEO and President at Mobileye Global

And and and we're really on it with the new technologies and the new approaches, and all of that will meet our twenty twenty seven launches of Chafford and Drive and and so on.

Adam Jonas
Adam Jonas
Analyst at Morgan Stanley

Okay. So I'm not just wait. Basically, it's not a bullshit question is what you're saying?

Amnon Shashua
Amnon Shashua
CEO and President at Mobileye Global

No. No. No. You never have those questions.

Adam Jonas
Adam Jonas
Analyst at Morgan Stanley

No. I disagree. Okay. And a follow-up. I'm just curious.

Adam Jonas
Adam Jonas
Analyst at Morgan Stanley

Given given so much other activity in other sectors outside of automotive in in terms of data capture, I think you'd agree with the with the belief that anything that any machine that can be automated will be automated and cars are just one modality of of many many thousands potentially of other modalities. I'm just I'd be interested if Mobileye is allocating or there's any change to allocation even even if it's a small level of your r and d and advanced development work on markets outside of automotive at this time? Thank you.

Amnon Shashua
Amnon Shashua
CEO and President at Mobileye Global

Yes. I I would say yes, but I cannot expand further. We are exploring, but we're still at the exploration stage of looking at additional growth engines in the physical AI space.

Dan Galves
Dan Galves
Chief Communications Officer at Mobileye Global

Thank you, Adam.

Operator

Next question, Anton Cheiband with New Street Research. Please go ahead.

Antoine Chkaiban
Equity Research Analyst - Technology Infrastructure at New Street Research

Hi, good afternoon. Thanks for taking my question. I'd like to follow-up on the announcement with Lyft to reboot mobile power door taxes in Dallas in 2026. I was wondering how do you expect the rollout to play out? It seems that the goal is to eventually deploy thousands of vehicles across multiple cities.

Antoine Chkaiban
Equity Research Analyst - Technology Infrastructure at New Street Research

So any color you can provide on the economics of the deal and the pace of deployment, shape of the ramp would be very helpful. Thank you.

Nimrod Nehushtan
Nimrod Nehushtan
Executive VP of Business Development & Strategy at Mobileye Global

Yeah, maybe I would address the general roll up of our Robotaxi fleets without addressing the specific project. There is only so much we can expand on this project at this stage. Generally, we are working in few stages. We start with the development and testing stages in which we deploy dozens of vehicles driving around the designated area repeatedly. And of course, there's a combination of offline and online validation processes that are necessary to make sure that the quality of service is at the right the highest level possible, of course, making sure that we can meet the safety standards, the meet time between interventions in this designated area.

Nimrod Nehushtan
Nimrod Nehushtan
Executive VP of Business Development & Strategy at Mobileye Global

Afterwards, is a certain stage of pilot programs in which we're using the safety drivers at the start, but still opening the doors for users to experience the service and getting feedback from that. That's still the magnitude is still in the dozens, then it gradually expands to maybe small hundreds of vehicles. After that, there is a early stage of driverless activities and then it becomes a full commercial service. And this process can take a few months or it can take maybe a year or so of walking through the different stages of this activity. We are already we have been working in The US in certain cities in the past two years for early testing, and 2025 is a really important year for us in the robotaxis development because we are expanding the scale significantly of Mobileye Drive systems driving in The US in different cities and really becoming seeing more statistic data for more statistic analysis of our performance and seeing very impressive results and improvement towards the goal in getting to these launches.

Dan Galves
Dan Galves
Chief Communications Officer at Mobileye Global

And we talked about the economic refresh

Nimrod Nehushtan
Nimrod Nehushtan
Executive VP of Business Development & Strategy at Mobileye Global

and kind And then when it comes to the economics, again, just to make sure it's clear, Mobilize product is the ECU and the ECU is the hardware and the software. We get a payment one time for that per car. And then there is a recurring license fee for the operation of each and every robotaxi vehicle according to its availability and usage. So the more you can think of it as a percentage of every dollar per mile that consumers pay for a self driving system with mobilized that is enabled by mobilized drive.

Antoine Chkaiban
Equity Research Analyst - Technology Infrastructure at New Street Research

Great. Thanks a lot for the detailed answer. Maybe as a quick follow-up, so on the Cloud Enhanced ADAS announcement with the Korean OEM, can you maybe provide some color on volumes this could represent, the timing and shape of the ramp, and may you remind us the overall design win status for Cloud Enhanced?

Nimrod Nehushtan
Nimrod Nehushtan
Executive VP of Business Development & Strategy at Mobileye Global

Yeah, so, normally Cloud Enhanced ADAS is integrated within high volume projects. So, it's a front camera based system that is now uploading data and downloading data from our RAN database. And that is very important for us because the RAN database uses is using us not just to improve the quality of our base data's product, but also to as kind of the backbone for our advanced product. So supervision, surround data supervision, chauffeur and drive. So our strategy is to have an ecosystem of OEMs that are contributing data and benefiting from the data of multiple OEMs and that then having a very good coverage and refresh rate globally that all of the OEMs that are in this ecosystem can enjoy for the different products.

Nimrod Nehushtan
Nimrod Nehushtan
Executive VP of Business Development & Strategy at Mobileye Global

So adding more high volume OEMs to this ecosystem is essential of course to these purposes And the rollout is within the near future, let's say, if not go beyond that.

Dan Galves
Dan Galves
Chief Communications Officer at Mobileye Global

Thank you, Antoine.

Operator

Next question, Mark Delaney, Goldman Sachs.

Mark Delaney
Mark Delaney
Analyst at Goldman Sachs

Yes. Thank you very much for taking my questions. For Mobileye Drive, I think both the Uber and Lyft agreements target operations beginning in 2026. Can you speak to how development is going to meet that time frame? And taking a step back and thinking about Drive more holistically, it's been a small contributor to the company's revenue.

Mark Delaney
Mark Delaney
Analyst at Goldman Sachs

But as you think out to 2026 and 2027, do you think Mobileye Drive revenue is going to become a meaningful part of Mobileye's overall financials?

Amnon Shashua
Amnon Shashua
CEO and President at Mobileye Global

Yes. In terms of development, we are we have shifted all the hardware to I. 65 a few months ago, ECU called the Drive 64. And it's meeting all our targets for end of twenty twenty six launch of driverless robotaxis. So we are on target there with the statistics, with driving.

Amnon Shashua
Amnon Shashua
CEO and President at Mobileye Global

We have been driving in Europe and in Austin, Texas, and we are gradually expanding testing and with many dozens of vehicles in multiple sites. In terms of revenue, the contract we have talk about tens of thousands of vehicles, spread over till the end of the decade. So we are talking about a meaningful revenue coming out of this business. And in the last few months, the potential for more than what we have contracted. So it could be somewhere around 5 figure or 6 figure in terms of volume of cars till the end of the decade.

Amnon Shashua
Amnon Shashua
CEO and President at Mobileye Global

So it could be very meaningful in terms of revenue to the company.

Dan Galves
Dan Galves
Chief Communications Officer at Mobileye Global

Given the upfront pricing. Yes,

Amnon Shashua
Amnon Shashua
CEO and President at Mobileye Global

and also the license fee for you.

Nimrod Nehushtan
Nimrod Nehushtan
Executive VP of Business Development & Strategy at Mobileye Global

Just to clarify that we're expecting the meaningful revenue per year to start from '27 onwards and not in '26. And when we are when we think about the potential, so today there is only a small fraction of the percent of miles driven by people in The U. S. That is autonomous. And although it becomes more and more pervasive in more cities, and others that are claiming to launch the services, we're still scratching the surface.

Nimrod Nehushtan
Nimrod Nehushtan
Executive VP of Business Development & Strategy at Mobileye Global

As we envision the next few years towards the end of the decade, we believe this number will significantly grow and we believe that we'll be one of the maybe two or three enablers for that, but realistic to have only two or three and not 20 or 30 in that stage and the volumes to facilitate for the demand in The US and Europe for mobility services is in the tens of thousands, hundreds of thousands, potentially millions of vehicles. This is why partnering with OEMs at KinScale is so important.

Mark Delaney
Mark Delaney
Analyst at Goldman Sachs

It's very helpful. Thanks. My other question was on the consumer vehicle part of the business. You mentioned in the prepared comments that potential new awards with Supervision and Chauffeur, I think you said are going somewhat slower than you'd have liked. Why do you think that is?

Mark Delaney
Mark Delaney
Analyst at Goldman Sachs

And maybe help us better understand as you think about the opportunity set with Supervision and Chauffeur. You talked about five OEMs being in more advanced stages of evaluation at your last Investor Day. Are those five all still active? Or have there been any changes there? Thank you.

Nimrod Nehushtan
Nimrod Nehushtan
Executive VP of Business Development & Strategy at Mobileye Global

Yes. So, I think there are some macro events that are obviously contributing to the delays or to the longer decision making process than originally expected. The past two to three months have been very turbulent for the industry in general. That probably served a significant role in taking more time to make these decisions. We still have a lot of confidence in the engagements we have.

Nimrod Nehushtan
Nimrod Nehushtan
Executive VP of Business Development & Strategy at Mobileye Global

We see progress made. We're moving through the ropes of, you know, the different stages and getting to concrete stages, receiving official RFQs and getting to negotiation statuses. We're getting closer to convergence with several of these opportunities that we mentioned in the IR day. So, I think overall, we still have firm confidence we have in supervision as we refer remains as high as it's been. We just need to be patient and make sure that we're doing the right things with the OEMs and, you know, many things can happen in the next week.

Nimrod Nehushtan
Nimrod Nehushtan
Executive VP of Business Development & Strategy at Mobileye Global

We don't think we should be predicting when things will happen, but it's realistic to converge. And I

Amnon Shashua
Amnon Shashua
CEO and President at Mobileye Global

think in the last couple of months, there have been two new engagements that we did not anticipate at the Capital Markets Day back in December. And, you know, they are very meaningful in terms of breadth, both supervision and chauffeur. So I think 2025 is going to be a good year for those advanced products.

Dan Galves
Dan Galves
Chief Communications Officer at Mobileye Global

Thank you, Mark.

Operator

Next question, Aaron Rakers with Wells Fargo.

Aaron Rakers
Aaron Rakers
Analyst at Wells Fargo

Yes, thanks for taking the question. Kind of building off that last question, thinking about that slide that you had given at the Analyst Day, thinking about chauffeur and supervision, I think in total there were seven kind of moving possibly to the right. I guess just to be clear, those seven still exist. Maybe it's taking a little bit longer and now you would add two new OEMs to that list? Just kind of thinking about that progression of those OEM opportunities.

Aaron Rakers
Aaron Rakers
Analyst at Wells Fargo

Is that fair?

Nimrod Nehushtan
Nimrod Nehushtan
Executive VP of Business Development & Strategy at Mobileye Global

Yeah. So I think that what has changed is that the nature of the discussion might change. The flags are still there. So in some cases, it's been expanding the discussion from a single product line to multiple product lines that have been in three of these engagements. I think the most consistent trend is that there is a growing interest in Level three eyes off product that are targeting end of twenty seven, early '20 '8 SOPs.

Nimrod Nehushtan
Nimrod Nehushtan
Executive VP of Business Development & Strategy at Mobileye Global

It seems to be now a very, very strategic product for several big OEMs. That was maybe not as evident in our discussions in the IR day. And in some cases maybe there are we have moved from a high flame to low flame discussion, maybe in one particular case. But in general, we still have the same long term confidence that this business is building. Our focus right now is partnering with OEMs that will allow us to scale our next gen product based on IP6, which we are now developing, and then we have a lot of a lot of confidence in our ability to do so.

Aaron Rakers
Aaron Rakers
Analyst at Wells Fargo

Perfect. And then as a quick follow-up, thinking about the Uber and Lyft relationship and the onetime payment, I I also know back at the Analyst Day, you you highlighted kind of a chart that showed, blended ASP going from $55 to upwards of $200 by the end of, call it, late decade. How do we kind of cross that relative to the Uber and Lyft opportunity versus that $200 Any context of that one time, you know, ASP opportunity with those engagements?

Nimrod Nehushtan
Nimrod Nehushtan
Executive VP of Business Development & Strategy at Mobileye Global

Yeah. I I think that chart that you referred to is does not take into account the the commercial potential of the mobile edge driver partnership with Lyft, Uber that we just announced and we it's pure upside to that. So I think that in most of the analysis we showed about future revenue growth, we took an extremely conservative assessment of drive progression. So in previous numbers that we shared it was not reflected. Sorry, I just to just add a comment.

Nimrod Nehushtan
Nimrod Nehushtan
Executive VP of Business Development & Strategy at Mobileye Global

This chart was focused on how will a consumer car passenger car look like to today $55 that is what the chart said. But today for that OEM, a passenger car is worth roughly $55 for Mobileye and with a gradual adoption of our advanced products that are designed for passenger cars, that number can grow from 55 to roughly $200 plus.

Amnon Shashua
Amnon Shashua
CEO and President at Mobileye Global

It did not reflect any robotaxi business.

Dan Galves
Dan Galves
Chief Communications Officer at Mobileye Global

What we said about the robotaxi business in the past is kind of the upfront cost is in the 5 figures plus, you know, like

Nimrod Nehushtan
Nimrod Nehushtan
Executive VP of Business Development & Strategy at Mobileye Global

With healthy margins.

Dan Galves
Dan Galves
Chief Communications Officer at Mobileye Global

With healthy margins. So it's a completely different business model because you're talking about generating revenue per mile across hundreds of thousands of miles per vehicle. So that and you're talking about replacing, you know, a human driver, which can cost, you know, dollars 80,000, 90 thousand a year if you think about two shifts of drivers. So it's kind of a different business model and it's just a completely different revenue per unit.

Aaron Rakers
Aaron Rakers
Analyst at Wells Fargo

Yes. Thank you.

Dan Galves
Dan Galves
Chief Communications Officer at Mobileye Global

Thank you, Aaron.

Operator

Next question, Gary Mobley with Loop Capital. Please go ahead.

Gary Mobley
Managing Director & Senior Equity Analyst at Loop Capital

Thanks for sneaking in my question. The European OEM that you mentioned in your press release that you haven't done business with since 2016, what drove that reengagement? And is this a redundant application for their internal chip? Or just any sort of color you can give on that.

Nimrod Nehushtan
Nimrod Nehushtan
Executive VP of Business Development & Strategy at Mobileye Global

Yeah. So going as detailed as possible, given the nature of this business, it is not a redundant product. It is to practically source Mobilize solution as their ADAS solution in future projects. So, it's basically going back to a Mobilize solution after almost nine years of not having mutual design wins, which we see as another testament of our product advantages and position in the market as a market leader in this segment. And we don't know all the details, but we can assume that it's mostly about the performance versus cost superiority that we have.

Gary Mobley
Managing Director & Senior Equity Analyst at Loop Capital

That's helpful. Just a quick follow-up. Are you reaffirming your non GAAP gross margin for fiscal year twenty twenty five of 150 basis point improvement over the prior year?

Moran Shemesh Rojansky
Moran Shemesh Rojansky
CFO at Mobileye Global

Yes. So we are still anticipating an increasing gross margin. The mix of supervision and IQ is different in 2025. So we're still expecting an upside of approximately 100 basis points in 2025 versus 2024.

Dan Galves
Dan Galves
Chief Communications Officer at Mobileye Global

Yeah, think China volumes are a little bit lower margin for us. So as the China volumes kind of outperform a bit, that leads to like a little bit less upside than or increase than we were expecting, but very, very small.

Gary Mobley
Managing Director & Senior Equity Analyst at Loop Capital

You very much.

Operator

Next question, Edison Yu with Deutsche Bank. Please go ahead.

Edison Yu
Edison Yu
Analyst at Deutsche Bank

Hey. Thank you for taking our question. Wanted to come back on on Robotaxi. How do you think about the the performance threshold for for drive in in these US deployments? Obviously, now you have Uber as well.

Edison Yu
Edison Yu
Analyst at Deutsche Bank

Is

Edison Yu
Edison Yu
Analyst at Deutsche Bank

there

Edison Yu
Edison Yu
Analyst at Deutsche Bank

some level where you need to kind of prove or or they need to feel comfortable with that it'll or achieve before you can really get these deployments ramping up?

Amnon Shashua
Amnon Shashua
CEO and President at Mobileye Global

Well, we have a clear metrics with our customers that show superior to a human level performance. And we are on track to meeting those metrics.

Nimrod Nehushtan
Nimrod Nehushtan
Executive VP of Business Development & Strategy at Mobileye Global

And there is a constant mutual evaluation of the performance per mouse in the development stage. And we're seeing, let's say, very strong progression towards this target. And this is the basis of having taking the decision to take the next step and go into the commercial deployment stage.

Edison Yu
Edison Yu
Analyst at Deutsche Bank

Gotcha. And is it the same threshold for both the the two deployments, or are there actually nuances depending on who you're working with, Uber or Lyft?

Nimrod Nehushtan
Nimrod Nehushtan
Executive VP of Business Development & Strategy at Mobileye Global

No. That's the same threshold.

Edison Yu
Edison Yu
Analyst at Deutsche Bank

Okay. And just one quick one. From a liability perspective, has that been kind of hashed out who is kind of liable for or yeah. Who who is sort of liable if anything kind of if there's an accident or something? Is that is that been hashed out already or is that TBD?

Nimrod Nehushtan
Nimrod Nehushtan
Executive VP of Business Development & Strategy at Mobileye Global

So that's these aspects are are behind us without going into the deep.

Edison Yu
Edison Yu
Analyst at Deutsche Bank

Okay, thank you.

Dan Galves
Dan Galves
Chief Communications Officer at Mobileye Global

Thanks, Edison.

Operator

Next question, Tom Narayan with RBC. Please go ahead.

Tom Narayan
Tom Narayan
Lead Equity Analyst at RBC Capital Markets

Hi, thanks for taking the question. The first one has to do with Surround ADAS versus supervision. It looks like we have, yes, Surround ADAS with the VW mass market brands, supervision for the VW's premium brands. But obviously we noticed some of the premium OEMs, Mercedes, BMW trying to develop their own autonomy. Just how do we think about supervision going forward given this potential headwind?

Tom Narayan
Tom Narayan
Lead Equity Analyst at RBC Capital Markets

Is it that maybe we should be contemplating Surround ADAS being the kind of bigger category winner for you guys as opposed to supervision? Or do you just see a migration as the mass market players over time kind of migrate towards supervision from surround ADAS?

Amnon Shashua
Amnon Shashua
CEO and President at Mobileye Global

We see surround ADAS as the next level of ADAS. So the migration is from front facing camera to Surround ADAS. And this is driven by increased regulatory requirement on future ADAS systems, both in Europe and in The US. The 2028 '20 '20 '9 regimes are very challenging and require multiple cameras, and a front facing camera would not be enough. So the surround ADAS is really the new ADAS going forward.

Amnon Shashua
Amnon Shashua
CEO and President at Mobileye Global

Supervision has the same, shares the same sensor set in terms of cameras with the chauffeur and drive. So supervision is the next step going from eyes on to eyes off in a hands free driving that can drive everywhere, urban and highway. Supervision has also added advantage of generating data. So because it's the same sensor set, you can start with a supervision system, use that as a data generator, for example, uploading events, uploading, you write all sorts of probe functions, and you upload the data, and you use that data to go further and develop the level three and level four. So there is a space for supervision, and the holy grail is the level three.

Amnon Shashua
Amnon Shashua
CEO and President at Mobileye Global

Chauffeur is really the if you look at where things should converge to in terms of consumer cars, it's level three, and then later expanding the LDD to level four.

Tom Narayan
Tom Narayan
Lead Equity Analyst at RBC Capital Markets

Okay, just to clarify, so you're not seeing a change in how you guys see the adoption being maybe more towards surrounding DAS versus supervision rather it's just the migration?

Nimrod Nehushtan
Nimrod Nehushtan
Executive VP of Business Development & Strategy at Mobileye Global

No, and the way we analyze this is by evaluating the vehicle models and different with different price points for each product category. So it's practically different segments of the vehicle lines that are targeting surround ADAS and supervision or so forth.

Tom Narayan
Tom Narayan
Lead Equity Analyst at RBC Capital Markets

Okay. And my follow-up had to do with, I guess, the commentary on the Tesla earnings call earlier this week on general AI versus kind of sensor based mapping. I know you guys have talked a lot about this. We heard a lot about this at the Investor Day, but they referenced specifically their FSD rollout in China and how it has progressed in their words very quickly without knowing the country specific dynamics, driving dynamics, habits, etcetera. Just curious to how you think about maybe their commentary on the general AI approach camera versus alternative?

Tom Narayan
Tom Narayan
Lead Equity Analyst at RBC Capital Markets

Thanks.

Amnon Shashua
Amnon Shashua
CEO and President at Mobileye Global

Well, we're all using AI now that I think we should stop all this hyping. Everyone is using AI, everyone is using Gen AI, so all these hypes, I think we should stop there. But to the point, there's a lot that simulators can add. So for example, in our launch in China, traffic lights are completely different than what you see in the West. Is a traffic lights are digital where you have a at every place, and we cannot send data from China outside of China, but we replicated this in a simulator.

Amnon Shashua
Amnon Shashua
CEO and President at Mobileye Global

And then we used the simulators in order to train our system. And we use simulators a lot to compensate, to mitigate the fact that we cannot use data in China. And this is kind of standard techniques. Everyone is using it. I think we should hyping things really.

Dan Galves
Dan Galves
Chief Communications Officer at Mobileye Global

Thank you, Tom.

Operator

Thank you. I would like to turn the floor over to Dan for closing remarks.

Dan Galves
Dan Galves
Chief Communications Officer at Mobileye Global

We've run out of time. Thanks, everyone, for joining the call, and we will talk to you again next quarter. Thanks very much.

Operator

Ladies and gentlemen, thank you for your participation. This does conclude today's teleconference. You may disconnect

Operator

your

Operator

lines

Operator

at

Operator

this time.

Executives
    • Dan Galves
      Dan Galves
      Chief Communications Officer
    • Amnon Shashua
      Amnon Shashua
      CEO and President
    • Moran Shemesh Rojansky
      Moran Shemesh Rojansky
      CFO
    • Nimrod Nehushtan
      Nimrod Nehushtan
      Executive VP of Business Development & Strategy
Analysts
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Key Takeaways

  • Mobileye delivered 83% year-over-year revenue growth in Q1 with 8.5 million camera units shipped, sharp operating margin recovery, $109 million in operating cash flow, and expects Q2 volumes and revenue to rise ~7% year over year.
  • Despite rising trade tensions, Mobileye’s simple supply chain means no direct tariff costs, though it remains exposed to potential global production and consumer-spending headwinds; full-year 2025 guidance remains intact with built-in conservatism.
  • Design-win momentum was brisk in Q1—reaching ~85% of 2024’s award volumes—including a first Volkswagen Surround ADAS IQ6H win and a new European OEM engagement, while multi-camera setups and cloud-enhanced features gain traction.
  • Mobileye Drive for robotaxis accelerated with a Lyft/Dynasys/Marubeni agreement and a Volkswagen-Uber deal launching ID Buzz robotaxis in Los Angeles in 2026, using an upfront system fee plus recurring usage-based licenses in a capital-light ecosystem.
  • On profitability, Mobileye expects non-GAAP operating expense growth to moderate to mid-single digits in 2025, gross margins to improve ~100 basis points versus 2024, and Q2 expenses to be seasonally higher.
A.I. generated. May contain errors.
Earnings Conference Call
Mobileye Global Q1 2025
00:00 / 00:00

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