Innoviz Technologies Q1 2025 Earnings Call Transcript

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Provided by Quartr
May 14, 2025

Key Takeaways

  • In Q1, Innoviz reported $17.4 million in revenues, up ~3× sequentially and ~2.5× year-over-year, with a record 40% gross margin.
  • The company extended its NRE payment plan to approximately $95 million, with most cash receipts expected in 2025 and 2026, underpinning its 2026–27 production ramps.
  • Innoviz formed a strategic partnership with Fabrinet to mass-produce its Innoviz Two LiDAR platform using automotive-grade factories, increasing capacity by an order of magnitude.
  • It is accelerating robotaxi deployments, supplying LiDARs for Volkswagen Autonomous Mobility’s ID.Buzz fleet and supporting Mobileye Drive partners Holland and Vernet for 2026 launches.
  • For full-year 2025, Innoviz forecasts revenues of $50–60 million (more than double 2024), with back-loaded timing, lumpy margins, and ongoing expense management to reduce cash burn.
AI Generated. May Contain Errors.
Earnings Conference Call
Innoviz Technologies Q1 2025
00:00 / 00:00

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Ada Menaker
Ada Menaker
VP - Corporate Development & Investor Relations at Innoviz Technologies

Good morning. I would like to welcome you to our Q1 twenty twenty five earnings conference call. Joining us today are Omar Khilaf, Chief Executive Officer and Eldar Zegla, Chief Financial Officer. I would like to remind everyone that this call is being recorded and will be available on the Investor Relations section of our website at ir.inoviz.tech. Before we begin, I would like to remind you that our discussion today will include forward looking statements that are subject to risks and uncertainties relating to future events and the future financial performance of Innovus.

Ada Menaker
Ada Menaker
VP - Corporate Development & Investor Relations at Innoviz Technologies

Actual results could differ materially from those anticipated in the forward looking statements. Forward looking statements made today speak only to our expectations as of today, and we undertake no obligation to publicly update or revise them. For a discussion of some important risk factors that could cause actual results to differ materially from any forward looking statements, please see the Risk Factors section of our Form 20 F filed with the SEC on 03/12/2025. Omar, please go ahead.

Omer David Keilaf
Omer David Keilaf
Co-Founder, CEO & Director at Innoviz Technologies

Thank you, Ada, and good morning to all of you joining us on this call. Today, we'll discuss our recent financial performance, tell you about some exciting new developments in our business and outline how these position us to achieve our long term goals. In the first quarter, Innoviz reported record revenues and gross margin. Q1 revenues were $17,400,000 up approximately three times sequentially and up approximately 2.5 times year over year. Gross margin was approximately 40%.

Omer David Keilaf
Omer David Keilaf
Co-Founder, CEO & Director at Innoviz Technologies

Both revenue and gross margin were the highest in our company's history, demonstrating our progress in meeting our full year targets and achieving our long term strategic and financial goals. As we discussed last quarter, in recent months, we've taken several significant steps to strengthen our financial position. In December, we entered into an approximately $80,000,000 NRE payment plan with our key customers. These NREs formed a significant portion of our revenues in the quarter. Just last week, we announced an extension of our NRE payment plan to approximately $95,000,000 with the bulk of cash payments expected in 2025 and 2026, a testament to our customers' continued commitment to our technology.

Omer David Keilaf
Omer David Keilaf
Co-Founder, CEO & Director at Innoviz Technologies

Our performance showcases the strength of our financial model. The recently expanded NLE payments plan, the registered direct offering and prudent cash management are expected to enable us to cross SOPs and ramp volumes in 2026 and 2027. We recently announced our strategic partnership with Fabrinet to launch the mass production of our Innovis2 platform ahead of our upcoming customer ramps. By working with Fabrinet, we will be able to efficiently scale production to volume with a partner that has automotive grade manufacturing capabilities around the world. Our existing level three and level four programs are on track.

Omer David Keilaf
Omer David Keilaf
Co-Founder, CEO & Director at Innoviz Technologies

We are delighted by the accelerating plans for robotaxi deployments. Yesterday, we announced that we are accelerating lighter shipments to Volkswagen autonomous mobility for the IDBAS on the Mobileye drive platform. Ahead of the deployments by Moya and Uber, Hundreds of ID bus shutters will be equipped with nine Innovis two lighters each in 2025 ahead of fleet launches in 2026 in Europe and The US. Holland and Vernet, other Innoviz customers through the Mobileye Drive platform are both expected to break ground on manufacturing facilities for their vehicles in The U. S.

Omer David Keilaf
Omer David Keilaf
Co-Founder, CEO & Director at Innoviz Technologies

And Europe. Elsewhere, we continue to make progress with new customers. We are excited about our expanding collaboration and growing momentum with NVIDIA on the Hyperion platform as well as our progress with a major OEM evaluating the solution. We're also seeing strong and growing traction in automotive where our auto grade technology could generate significant value for customers. We're in discussions with several integrators who are interested in deploying our ladders into their customers' applications, which targets smart city, ground truth and safety.

Omer David Keilaf
Omer David Keilaf
Co-Founder, CEO & Director at Innoviz Technologies

We are shipping samples and have developed especially tuned software and hardware kit for this market. All told, we are off to a very strong year. Before I dive into the details, I'd like to take a few minutes to talk about our mission. Following a record breaking financial quarter marked by several significant operational operational and business milestones, I believe now is an ideal moment to discuss Innoviz's origins and where we are headed. When we founded this company, we wanted to enable safe autonomous driving by creating the best battery in the market, and we delivered on that commitment.

Omer David Keilaf
Omer David Keilaf
Co-Founder, CEO & Director at Innoviz Technologies

With the Innovus one, we enabled BMW to offer safe autonomous driving in its I seven series vehicles. With the Innovus two, we are offering the market significantly improved performance and cost, and our customer engagements are a strong testament to the product's technical superiority. In order to truly deliver on our vision for safe autonomous driving four years ago, we set as our mission the ability to work directly with automotive OEMs as a tier one supplier. We have since achieved this goal. Now we partner directly with some of the world's largest automotive manufacturers as a trusted tier one, clearly demonstrating our ability to collaborate with them at the highest level.

Omer David Keilaf
Omer David Keilaf
Co-Founder, CEO & Director at Innoviz Technologies

We've now come to the next stage in our evolution as a company and are ready to write the next chapter chapter in the Innoviz story, becoming the world's premier large scale supplier of best in class lateral solution for autonomous driving and beyond. As we forge forward, we are taking the steps needed to achieve this goal. As you saw from our recent announcement, our partnership with Fabrinet should allow us to efficiently ramp up our designs to volume and meet customer demand for years to come. We have a proven record of delivering to our commitments and are excited about this next stage of our journey. Now let me begin by telling you more about our q one financial results.

Omer David Keilaf
Omer David Keilaf
Co-Founder, CEO & Director at Innoviz Technologies

We reported revenues of $17,400,000, which is an all time record for Innoviz. It's almost three times better than the last quarter and approximately 2.5 times better than Q1 of twenty twenty four. The revenues were driven by a combination of NRE payments under the approximately $80,000,000 payment plan that we initially announced in December and since expanding to approximately $95,000,000 As a reminder, the NRE payment plan is the outcome of development activities that Innoviz is performing for its key customers. NREs support our operations ahead of these customers' SOPs, and the bulk of cash payment from the plan is expected in 2025 and 2026. During the quarter, revenues also benefited from sales of LiDARs to new and existing customers.

Omer David Keilaf
Omer David Keilaf
Co-Founder, CEO & Director at Innoviz Technologies

We reported gross margin of 40%, supported by positive contributions from NREs. This gross margin level was also a record for the company. Going forward, we'll continue to manage our spending closely and maintain our focus on profitability. We grew our cash position ending this quarter with $85,400,000 in cash and cash equivalents. Our cash balance included the proceeds of the registered direct offering that we completed in February.

Omer David Keilaf
Omer David Keilaf
Co-Founder, CEO & Director at Innoviz Technologies

Bolstered by our strength balance sheet and ongoing customer engagements, we are well positioned to support the product ramps that we expect over the next two years and to pursue new opportunities. Turning now to our production capacity expansion. We believe our financial performance thus far in 2025, driven by a combination of NREs and lighter sales, is indicative of our customers' commitment to our products. We recently announced that to support our volume ramp, we selected Fabrinet as our manufacturing partner for the Innoviz two platform. Fabrinet will provide end to end manufacturing for both the Innoviz two long range and Innoviz two short to mid range lighters.

Omer David Keilaf
Omer David Keilaf
Co-Founder, CEO & Director at Innoviz Technologies

Fabrinet will use our production methods using the design and process flows that we developed here at Innoviz. Fabrinet's expertise in automotive grade manufacturing and its global footprint of manufacturing sites spread across The US and Asia will enable Innoviz to cost effectively scale production to volume and accelerate revenue generation. Our collaboration will allow us to meet the demands of our current and future customers for years to come while providing flexibility. Fabrinet's facilities have passed rigorous audits by several leading global OEMs under the German automotive VDA 6.3 standard, and our customers are very pleased with our choice of manufacturing partner. They are all familiar with Fabrinet and view this as a further assurance of our ability to meet their volume ramp requirements.

Omer David Keilaf
Omer David Keilaf
Co-Founder, CEO & Director at Innoviz Technologies

The Fabrinet team has been at our Israel site working alongside our staff to master our product and process. We expect our capacity to increase by an order of magnitude in 2025 and the production line to be fully ramped in 2026, enabling customer SOPs and volume ramps. Moving on to our programs. We continue to be deeply engaged with our Level three and Level four program partners. We are especially encouraged by the accelerating plans to deploy robotaxis around the world.

Omer David Keilaf
Omer David Keilaf
Co-Founder, CEO & Director at Innoviz Technologies

With production ramping at our fabled and facility, we'll be able to serve these deployments with our growing capacity. As you saw in our press release yesterday, we're accelerating the delivery of our newly designed LiDAR platform to Volkswagen autonomous mobility. We're tremendously pleased with this ramp in our collaboration with Volkswagen in support of Moya's planned expansion in multiple European and US cities starting in 2026. Ahead of the fleet launch, hundreds of ID bus shutters will be equipped with a newly designed suite of Innovus ladders in 2025. Additionally, Uber and Volkswagen announced their partnership to deploy a fleet of ID bus vehicles in Los Angeles in 2026 and more US cities down the line.

Omer David Keilaf
Omer David Keilaf
Co-Founder, CEO & Director at Innoviz Technologies

Recall that the ID Buzz, which is based on the Mobileye Drive platform, has nine Innovus two lighters per vehicle, three long range and six short to mid range. Other expanding robotaxis programs include Holland and Velma, which are customers we previously announced on the Mobileye Drive platform. Holland is breaking ground on a facility in The US to build its autonomous vehicles, which, like the ID Buzz, is planned to employ nine Innovus II ladders each. Production is slated for 2026. Vernice also started construction on a manufacturing facility for its autonomous vehicles in Europe, further highlighting the growing adoption of robotaxis around the world.

Omer David Keilaf
Omer David Keilaf
Co-Founder, CEO & Director at Innoviz Technologies

As we advance our programs with our existing level three and level four customers across the different platforms, we continue to see robust RFI and RFQ activity and are in various stages of sourcing process with several OEM. Last quarter, we told you about our relationship with NVIDIA. Since then, our collaboration has expanded. We are seeing growing momentum with the Hyperion platform. The benefits of partnering with a platform provider with NVIDIA's capabilities are clear as multiple OEMs are evaluating the Hyperion for integration into their vehicles.

Omer David Keilaf
Omer David Keilaf
Co-Founder, CEO & Director at Innoviz Technologies

We are extremely pleased by the recent progress we've made with major OEM on this platform. In addition to the continued traction we're seeing in the automotive space, we are now increasingly targeting nonautomotive applications as well. The expanding capacity that we'll have through Vabinet has the potential to allow us to grow our available market in a segment where we believe our LiDAR technology likely outpaces the existing competition. We view this as a great opportunity to generate better customer value through our short to mid range and long range solutions, which outperform the devices currently available to the non automotive market. Additionally, bringing auto grade products to this market gives customers a new level of reliability.

Omer David Keilaf
Omer David Keilaf
Co-Founder, CEO & Director at Innoviz Technologies

This has been a pain point. We are in a serious discussions with several integrators around specific projects in areas such as smart city, run through monitoring and safety. We are we have started shipping samples and launching a version of our products specifically tuned for these markets as well as software and hardware kit. Several of our partners are already showcasing products featuring InnovusLires to their customers. We are very optimistic about our opportunities for growth in this segment, given the strength of our solution and look forward to updating you as the year progresses.

Omer David Keilaf
Omer David Keilaf
Co-Founder, CEO & Director at Innoviz Technologies

I'd like now to take a few minutes to share some updates on our technological advances, which are underpinning the success we're seeing with customers. We've reached point cloud freeze and are building our first sea sample at Fabrinet. We have frozen the design of the Innovis two with specs that meet or exceed the requirements of the automotive OEMs. We've been able to demonstrate unprecedented performance compared to our previous products, such as range performance of 300 meters at 10% of activity under full sun conditions. This is a testament to our ability to continuously improve our product and maintain our technology leadership.

Omer David Keilaf
Omer David Keilaf
Co-Founder, CEO & Director at Innoviz Technologies

We are now on higher level KPIs related to image quality, uniformity, accuracy, reliability, always on availability and resilience that are required to enable mission critical performance in level three and level four applications. These are the KPIs that our customers are now targeting. And when we demonstrate our capabilities around these next level KPIs, customers are deeply impressed. As you know, we never stay put and are already making progress on our next generation slim design, the Innoviz three. We will share more with you later this year.

Omer David Keilaf
Omer David Keilaf
Co-Founder, CEO & Director at Innoviz Technologies

Now let's move on to our outlook. Driven by the NRE payments that we expect in 2025, combined with sales of LiDAR, we continue to expect more than twofold increase in our revenues year over year for 2025 at $50,000,000 to $60,000,000 For the full year, we expect revenues to be back end loaded due to the lumpiness of customer time lines. We also expect to see some fluctuations in margins. Our continued focus on tightly managing expenses as well as the actions we took in the first quarter is expected to drive down our cash burn over the course of the year. On the operational front, in 2025, we continue to target one to three new programs.

Omer David Keilaf
Omer David Keilaf
Co-Founder, CEO & Director at Innoviz Technologies

Last quarter, we noted that we expect 20,000,000 to $50,000,000 in additional NRE bookings. As you saw, we already locked in a nice portion of that. Before I turn it over to Edel, let me briefly touch on the subject of The U. S. Tariffs.

Omer David Keilaf
Omer David Keilaf
Co-Founder, CEO & Director at Innoviz Technologies

The situation remains very dynamic around how and when and even if the tariffs will be applied. What we can tell you is that at this time, we expect the tariffs impact to be limited. We are continuing to closely monitor the situation and have the flexibility to adapt as needed given the timing of ramps, our relationship with Fabrinet and their multiple manufacturing of options. And with that, I'll turn it over to Adal to talk about our financials.

Eldar Cegla
Eldar Cegla
Chief Financial Officer at Innoviz Technologies

Thank you, Omar, and good morning, everyone. As we noted last quarter, in the past several months, we have strengthened the financial foundation of our company and have made meaningful strides on our path to breakeven and profitability. The result we reported for the first quarter demonstrate the impact of the NRE payment plan on our revenues, and our balance sheet reflects the proceeds of the registered direct offering of our security that we closed in the first quarter. We ended Q1 with approximately $85,400,000 in cash, cash equivalents, short term deposit and marketable securities on the balance sheet. For Q2, we expect strong cash inflows reflecting robust trade receivables with cash expected in the single digits.

Eldar Cegla
Eldar Cegla
Chief Financial Officer at Innoviz Technologies

We look forward to continued balance sheet strength, further aided by the effects of our operational realignment in Q1. Gross margins in the quarter was approximately 40%, a dramatic improvement over 8.9% in the previous quarter. Going forward, we expect margins will continue to be rather lumpy. This is due to the product ramp time lines and NRE fluctuation based on our customers' milestone. For the full year, we continue to expect gross margins to be positive.

Eldar Cegla
Eldar Cegla
Chief Financial Officer at Innoviz Technologies

Looking into the remainder of 2025 and beyond, we remain confident in our ability to manage our expenses effectively and keep our burn rate down on the annualized basis. Now turning to the income statement. Our Q1 revenues of $17,400,000 set a record for the company, driven by the contribution of NREs as well as sales of Lidos. Our operating expenses for Q1 were approximately $21,000,000 a decrease of 34% from $31,700,000 in Q1 twenty twenty four. This quarter's operating expenses included $3,000,000 of share based compensation compared to $5,900,000 in Q1 twenty twenty four.

Eldar Cegla
Eldar Cegla
Chief Financial Officer at Innoviz Technologies

Research and development expenses for Q1 were $14,800,000 a decrease from $23,800,000 in Q1 twenty twenty four, largely related to the allocation of direct costs to COGS under the NRE payment plan. The quarter's R and D expenses included $1,900,000 of share based compensation compared to $3,800,000 in Q1 of twenty twenty four. To conclude, Q1 represents a record quarter of robust performance for both revenues and profitability perspective. We are encouraged by the ongoing strengths of our expense management and ability to consistently meet or exceed our revenue guidance. Looking into Q2, we are focusing on our future ramping Innovus II and securing additional design win as we reduce cash burn and maintain a strong balance sheet.

Eldar Cegla
Eldar Cegla
Chief Financial Officer at Innoviz Technologies

And with that, I'll turn the call back to Omar for a few closing remarks.

Omer David Keilaf
Omer David Keilaf
Co-Founder, CEO & Director at Innoviz Technologies

Thank you, Edaum. Before I wrap up the call and open for Q and A, I wanted to recap some of our recent developments. We reported a record financial quarter with revenues of $17,400,000 and gross margin of 40%. We announced our partnership with Fabunet, which should help us efficiently bring the Innovus two product platform to mass production. We extended our NRE payment plan with key customers from approximately $80,000,000 to approximately $95,000,000 with the majority of cash payments expected in 2025 and 2026.

Omer David Keilaf
Omer David Keilaf
Co-Founder, CEO & Director at Innoviz Technologies

We are pleased by the accelerating adoption of Robotekis powered by Innovus technologies around the world. We are accelerating delivery of our devices into the test leads as deployments ramp at a faster pace than we previously anticipated. Our collaboration with NVIDIA on the Ipirian platform is expanding, and multiple OEMs are evaluating it for integration. Our technology is gaining traction in automotive applications, offering customers significant value with our auto grade devices, and we are engaging with several integrators around specific projects. We continue to make excellent progress on the technological front and are enabling KPIs related to image quality, uniformity, accuracy, reliability, always on availability, and resilience that enable mission critical performance in level three and level four applications.

Omer David Keilaf
Omer David Keilaf
Co-Founder, CEO & Director at Innoviz Technologies

Having delivered on the goals we set for ourselves since our founding, we look forward to the next stage in our company's growth as we focus on becoming the world's premier large scale provider of best in class slider solutions for autonomous driving and beyond. With that, operator, let's open it up for q and a.

Operator

Thank you. In order to ask a question, please raise your hand using your mobile or desktop application and wait for your name to be announced. Once again, please raise your hand using your mobile or desktop application and wait for your name to be announced. Our first question today comes with comes from the line of Mark Delaney of Goldman Sachs. Please go ahead.

Mark Delaney
Mark Delaney
Analyst at Goldman Sachs

Yes. Thank you very much for taking the questions and congratulations on the good 1Q results. First question is on robotaxis. In addition to the VW announcement that uses Innovus LiDAR, Uber has announced robotaxi plans with Main Mobility, PonyAI, WeRide and Momenta for programs in The U. S, Europe and The Middle East.

Mark Delaney
Mark Delaney
Analyst at Goldman Sachs

When you think about the broader set of AVs that could be deployed globally, excluding China, what kind of share and market position do you think Innovus will have?

Omer David Keilaf
Omer David Keilaf
Co-Founder, CEO & Director at Innoviz Technologies

So right now, we are working with the, I I believe, the the strongest platform players in this area. You can see the way that Mobilize able, to gain more, partners other than Volkswagen through partners like, Holland and Vernet. I think that the relationship the new deal between Uber and Volkswagen, is expecting to allow Volkswagen to scale faster, having, since the Trump administration, basically removing, the barriers in terms of the amount of autonomous, taxes which are allowed on the road. It was, I think, increased from 2,000 a year to around 100,000 a year. In a way, it kind of started a race, meaning that up until a few months ago, many robotaxi companies were held from scaling because of that limitation.

Omer David Keilaf
Omer David Keilaf
Co-Founder, CEO & Director at Innoviz Technologies

Now that this limitation has been removed, you will start to see a race in which companies will try to take cities. There will be a point in time where companies, cities, that will be overpopulated with taxes services will not allow to new players to enter. I think the first mover advantage is super important. The fact that the first overtaxis that are going to be on the road are going to be equipped with Innovus riders will give us a tremendous advantage, and we expect to be a meaningful player in that area.

Mark Delaney
Mark Delaney
Analyst at Goldman Sachs

Thanks, Amir. My other question was on the financials. The gross margin, in particular, was very strong, much higher than we had been estimating. Hoping to better understand what type of gross margin and EBIT margin you think NRE programs will typically have on average maybe over the course of one to two years? And specifically, when you do see NRE revenue and with what you saw in the first quarter, was there anything unusual in 1Q in terms of when you saw costs compared to the timing of the revenue? Thanks.

Eldar Cegla
Eldar Cegla
Chief Financial Officer at Innoviz Technologies

Yes. So

Eldar Cegla
Eldar Cegla
Chief Financial Officer at Innoviz Technologies

Q4 gross margins, as said, was 8.9%. And indeed, this quarter, it's 40%. I think the NRE is always positively influencing the gross margin. So I don't think that over time, you will see such a high gross margins, but definitely very positive. And you can maybe not expect these levels, but you can definitely expect positive and relatively high once NRE is kicking in like we did this quarter.

Mark Delaney
Mark Delaney
Analyst at Goldman Sachs

And, Aldar, just to make sure I understand, what was unusual about the margin associated with the NRE revenue this quarter? I mean, I understand the timing will be lumpy of when you see NREs, but why the margin unevenness?

Eldar Cegla
Eldar Cegla
Chief Financial Officer at Innoviz Technologies

Because of the relative percentage of NRE versus units. So most of the revenues, the vast majority there was NREs, and that's why it pushed our gross margins up.

Operator

Our next call comes from the line of Jaish Patois of JPMorgan.

Jash Patwa
Jash Patwa
Equity Research Associate at JP Morgan

Hi, good morning and thanks for taking my questions. Congratulations on all the progress during the quarter. I'd like to start with a question on tariffs. I appreciate that you mentioned that tariffs are unlikely to have a material impact in the near term. But maybe if you could just clarify which category your test and series LiDAR shipments fall under.

Jash Patwa
Jash Patwa
Equity Research Associate at JP Morgan

Are they included within the HSN category subject to the auto specific 25% tariffs? Or are they affected by the reciprocal tariffs? Additionally, if you could just provide some insights into any preemptive actions the company has taken to mitigate the impact of these tariffs, that would be super helpful. And I have a follow-up.

Eldar Cegla
Eldar Cegla
Chief Financial Officer at Innoviz Technologies

So as far as we are concerned or too far as our knowledge and our analysis, we do not fall under this 25% tariff. We are an automotive component, which does not suffer from these kinds of or is not impacted by such tariffs. We are monitoring it. We believe that the impact will be minimal, hopefully, up to none. We still think these tariffs are in the making or it's not clear or the dust needs to settle settle in order to understand where it falls.

Eldar Cegla
Eldar Cegla
Chief Financial Officer at Innoviz Technologies

But, again, we think the impact is minimal to none.

Omer David Keilaf
Omer David Keilaf
Co-Founder, CEO & Director at Innoviz Technologies

But maybe just to add, Fabrinet has different facilities around the world, including in The US. By the way, they also have in Israel. And then, therefore, it gives us a very flexible and easy way to deal with, any future, issues in this manner.

Jash Patwa
Jash Patwa
Equity Research Associate at JP Morgan

Understood. That that's very helpful. Just as a follow-up, could you provide some more insights into your partnership with NVIDIA on the Hyperion platform? What factors have positioned Innoviz as a leader in this collaboration? And are there any development milestones or technological challenges that still need to be addressed?

Jash Patwa
Jash Patwa
Equity Research Associate at JP Morgan

Relatedly, curious if you are the reference LIDAR sensor for this platform as well. Thank you.

Omer David Keilaf
Omer David Keilaf
Co-Founder, CEO & Director at Innoviz Technologies

Happy to explain. I I'm asked about this topic many times, and I would be happy to actually provide more color. So, basically, there are two plot platforms that people are familiar with when it when it relates to NVIDIA. The more known, platform, which people kind of hear about it more a lot is the the NVIDIA drive. NVIDIA has, two business models.

Omer David Keilaf
Omer David Keilaf
Co-Founder, CEO & Director at Innoviz Technologies

One is when they are providing an open source platform where they seal they sell chips to different companies. And, you know, basically, any company who wants to develop their own software stack can use, the NVIDIA drive open source. And there are many LiDARs that are part of the drive, And you probably saw many announcement about LiDAR companies partnering with NVIDIA on the drive platform. It's very different than the Hyperion. The Hyperion platform is a full stack solution that NVIDIA is offering themselves to customers.

Omer David Keilaf
Omer David Keilaf
Co-Founder, CEO & Director at Innoviz Technologies

So whenever a customer wants to buy the full stack solution from NVIDIA, it is NVIDIA decision on which sensors are included in this platform. And in the cases where NVIDIA is offering Hyperion to customers outside of China, they are offering it based on Innovus Innovus two. And, therefore, we are in basically daily discussions with with NVIDIA and customers on the integration of the Innovus two into the platform and into these cars. So, basically, you can see this as a very important milestone for us in terms of our ability to scale, through partners. We have the same engagement with Mobileye.

Omer David Keilaf
Omer David Keilaf
Co-Founder, CEO & Director at Innoviz Technologies

As you, where we are part also of the Mobileye Drive. Same thing, but different platform, where Mobileye is winning, deals with the Mobileye Drive, and there's one platform that one customer that is that they are alluring to in the future. Every time where such a customer is picking, NVIDIA Mobileye Drive, we are part of it, and we expect that once one of these customers will, do the nomination of the platform, we'll be able to benefit from it. There's one specific customer which we are engaged for a very long time now, and there are several that are reviewing this, and we are expecting to con start these discussions as soon as well.

Jash Patwa
Jash Patwa
Equity Research Associate at JP Morgan

Understood. Thanks, Omar and Eldar. Good luck.

Operator

Thank you. Thank you. Our next question today comes from the line of Ryan Casey of Westpark Capital. Please go ahead.

Casey Ryan
Director of Research at West Park Capital

Hello, gentlemen. Great quarter. Great quarter. Your press release notes record revenues, and I know NREs are a big part of that. Would you care to comment about even if they're sample unit shipments, was it also a record quarter for product shipments using a broad definition of product shipments?

Eldar Cegla
Eldar Cegla
Chief Financial Officer at Innoviz Technologies

It I don't know if it was record, but it was a very nice number. We are expecting the to ramp up Fabrinet and have units out of Fabrinet. Fabrinet is basically increasing our capacity in order of magnitude. So this this will be very impactful as we go forward down this year and definitely next year.

Casey Ryan
Director of Research at West Park Capital

And when do you think, say, the first product unit shipment would come out of a Fabrinet facility? Would that be before the end of twenty twenty five? Or

Omer David Keilaf
Omer David Keilaf
Co-Founder, CEO & Director at Innoviz Technologies

It's, going to be in a month.

Casey Ryan
Director of Research at West Park Capital

In a month?

Omer David Keilaf
Omer David Keilaf
Co-Founder, CEO & Director at Innoviz Technologies

K.

Casey Ryan
Director of Research at West Park Capital

Excellent. We've touched on a lot of of of the bigger questions. In terms of your non auto efforts, I think we've discussed before that, you know, industry participants, people looking for solutions may be coming to Innoviz.

Casey Ryan
Director of Research at West Park Capital

Has that been the case with these new opportunities where people have come to you and, ask for the solution? Or are you starting to actively pursue opportunities on your own directly as well in terms of reaching out to those industries?

Omer David Keilaf
Omer David Keilaf
Co-Founder, CEO & Director at Innoviz Technologies

So, basically, the our go to market is through integrators and distributors that are approaching customers themselves. There is a a long list of applications which each one requires, specific, I would say, insights and, user experience. And, basically, we we are providing these companies. We support their needs in terms of integrating into the LiDAR, but they can they can they can benefit from the advantages of higher performance of the sensor to provide more value to their customers. As such, we we barely need to do or we don't need to do any specific tailoring to any specific application.

Omer David Keilaf
Omer David Keilaf
Co-Founder, CEO & Director at Innoviz Technologies

The LiDAR is highly flexible in terms of its ability to provide different configurations, and therefore, it doesn't require us any meaningful effort. In in many cases, with these kind of integrators, we are displacing existing solutions that are short in performance. And by using our sensor, they are able to provide a better value to their customers. So even in terms of educating them or training them to understand how to work with lighter, it's it's barely needed.

Casey Ryan
Director of Research at West Park Capital

Okay. Terrific. You know, that can be a sizable opportunity. And and when you say displacing existing technologies, I'm assuming you're talking about cameras and radar and things like that, not necessarily other LiDAR solutions today.

Omer David Keilaf
Omer David Keilaf
Co-Founder, CEO & Director at Innoviz Technologies

Actually, there are we found, I would say, different industries that are already well educated about the benefits of using Lidars, and some of them are already using Lidars.

Casey Ryan
Director of Research at West Park Capital

Okay.

Omer David Keilaf
Omer David Keilaf
Co-Founder, CEO & Director at Innoviz Technologies

But, with the product that we can offer them, they can achieve more, KPIs and and better products and, basically, better capabilities.

Casey Ryan
Director of Research at West Park Capital

Alright. Terrific. Thank you for clarifying and expanding on those points. It was a really terrific quarter and a great start to the year. Congratulations.

Omer David Keilaf
Omer David Keilaf
Co-Founder, CEO & Director at Innoviz Technologies

Thank you very much.

Operator

Thank you. Our next question comes from the line of Kevin Garrigan of Rosenblatt. Please go ahead.

Kevin Garrigan
Senior Research Analyst at Rosenblatt Securities

Hey, Omar. Hey, Eldar. Thanks for taking my questions and congrats on the progress. Hey, going off of Mark's earlier question, know, looking at your pipeline, are are you seeing a growing number of Robotaxi RFQs or programs kind of in the early stages? Or is a lot of your pipeline still geared toward L3 programs?

Omer David Keilaf
Omer David Keilaf
Co-Founder, CEO & Director at Innoviz Technologies

It's okay. I would describe it this way. You have, the traditional OEMs generally focusing on level three. And then you have, I would say, more of the technology companies who are trying to develop platforms, that could fit into different types of vehicles. It could be robotaxis.

Omer David Keilaf
Omer David Keilaf
Co-Founder, CEO & Director at Innoviz Technologies

It could be shuttles. It could be trucks, and it could be also off road vehicles. So I would say it's kind of fifty fifty. There are many that as you know, some of the programs that we are working on are expected to launch already next year, and we do feel that the kind of the race has started in the sense that, once those cities will be populated with robotaxis, that will create more tension and stress on some of the other players due to the congestion that might happen once they will start to scale. And, therefore, we do see, more and more level four players are, kind of looking for a solution that are automotive geopolitically kind of free, and providing them, I would say, there are some advantages related to our our sense of I think we talked about that in quarters about our ability to work in very challenging environments such as rain, contamination, and some of the fleets that you might see today are using sensors that are allowing them to work in clear sky situation.

Omer David Keilaf
Omer David Keilaf
Co-Founder, CEO & Director at Innoviz Technologies

And they understand that once they'll need to operate them in scale in more challenging environments, they need to find a solution that is much more robust. These are these are the new KPIs. Like, we're in a new stage where, where, you know, just talking about range and resolution is not enough. Customers are much more aware of industrialization, on quality, about resiliency. It sounds like buzzwords, but, you know, this is kind of like real life thing.

Omer David Keilaf
Omer David Keilaf
Co-Founder, CEO & Director at Innoviz Technologies

You know, eventually, the product needs to be super reliable, and they become much more aware of these topics than they were before. And I think this is kind of where we we shine, and we see opportunities to, display some of the sensors that were used so far for r and d purposes.

Kevin Garrigan
Senior Research Analyst at Rosenblatt Securities

Yeah. That makes a ton of sense. Okay. Great. And then on on the growing traction in smart applications, can you just talk more about, you know, how big you expect the market for for smart applications to become?

Kevin Garrigan
Senior Research Analyst at Rosenblatt Securities

And do you see Innoviz kind of spending more on on developing software capabilities in this space?

Omer David Keilaf
Omer David Keilaf
Co-Founder, CEO & Director at Innoviz Technologies

So there there are different layers of software when you talk about nonautomotive applications. As you know, in the automotive sector, we are developing the perception software, which is needed for object detection classification. We actually have a product running on the road today. You know? BMW is running their level three vehicles not only with our LiDAR.

Omer David Keilaf
Omer David Keilaf
Co-Founder, CEO & Director at Innoviz Technologies

They are actually driving autonomously using our perception software. You can imagine the level of effort and scrutiny that we had to pour in to get to automotive grade capabilities of such a software. And that gives us a big advantage when it comes to different other different applications that wants high reliability. And our our uniqueness comes in our ability to provide perception over our sensor. I would say we we try to be separated from the layers that are related to the specific KPIs that might be interesting for a very specific application as as, you know, bridge collision or logistics kind of maneuvering.

Omer David Keilaf
Omer David Keilaf
Co-Founder, CEO & Director at Innoviz Technologies

So this is these are where we are trying to to cut barriers between us and and the and the integrator, and we try to do something that is as scalable as possible. So I I do believe that our software will continue to evolve and providing more tools that we can offer our partners to use in their applications. So I I believe that our software is still going to be a very strong, I would say, offering to our partnering to our partners who eventually are doing the integration of their software to the to their customer environment.

Kevin Garrigan
Senior Research Analyst at Rosenblatt Securities

Perfect. Thanks, guys, congrats on the results.

Omer David Keilaf
Omer David Keilaf
Co-Founder, CEO & Director at Innoviz Technologies

Thank you very much.

Operator

Thank you. You have no further questions. Please proceed.

Omer David Keilaf
Omer David Keilaf
Co-Founder, CEO & Director at Innoviz Technologies

Okay. And with that, thanks again to everyone for joining us today. We look forward to updating you next quarter on the continued progress we are making here at Innobiz. We'll be participating in several investor events over the next month and look forward to speaking with many of you there. Thank you very much.

Eldar Cegla
Eldar Cegla
Chief Financial Officer at Innoviz Technologies

Thank you.

Executives
    • Ada Menaker
      Ada Menaker
      VP - Corporate Development & Investor Relations
    • Omer David Keilaf
      Omer David Keilaf
      Co-Founder, CEO & Director
    • Eldar Cegla
      Eldar Cegla
      Chief Financial Officer
Analysts
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