Innoviz Reports First-Quarter 2024 Results, Exceeds Revenue Guidance for Second Consecutive Quarter and Expands Key Partner and Customer Relationships
Q1 2024 revenues of $7.1 million exceed previous guidance range of $5 -$6 million; reiterates full year 2024 operational targets
TEL AVIV, Israel, May 8, 2024 /PRNewswire/ -- Innoviz Technologies Ltd. (Nasdaq: INVZ) (the "Company" or "Innoviz"), a leading Tier-1 direct supplier of high-performance, automotive grade LiDAR sensors and perception software, today provided commercial and strategic updates on its business, reported its financial results for the first quarter ended March 31, 2024, provided guidance for the second quarter and reiterated its full year commercial and financial targets.
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"Innoviz is off to a terrific start this year. We achieved strong revenue growth, beating our expectations, once again expanded our relationships with key partners and customers, and continued to build our RFI and RFQ pipeline across multiple programs," said Omer Keilaf, CEO and Co-Founder of Innoviz. "With the BMW I7 launching in Germany, we believe we are the only pureplay LiDAR company to reach SOP with level 3, as there are vehicles currently on the road using our LiDARs and perception software. As part of expanding our relationships with our customers, we are collaborating with Volkswagen Group and Mobileye on an additional level 3 program. Overall, our pipeline is very active, with approximately half in the RFQ stage and more to come."
Keilaf added, "We remain very optimistic about the LiDAR sector as recent industry and regulatory activity reflects the continued adoption of LiDAR. We believe that as OEMs work to comply with new regulations, and as the automotive industry raises its standards, OEMs will move to implement new capabilities and features, many of which may be supported only by LiDAR. Looking ahead, we expect that Innoviz will have the runway necessary to cement our place as a leading LiDAR supplier during this important market capture phase."
Commercial and Strategic Updates
-- Continued supporting software development for InnovizOne deployment on
BMW 5 Series in China - Innoviz is working closely with the BMW and
Magna teams as they perform on-road testing and the Company is
supporting software development specific to the Chinese market for a new
deployment of the InnovizOne on BMW 5 Series vehicles in China.
-- Working on program expansion opportunities through collaboration with
Mobileye and Volkswagen Group - In addition to the level 3 Cariad
program, ID. Buzz long-range LiDAR, Innoviz is working on another level
3 program expansion through its collaboration with the Volkswagen Group
and Mobileye. In parallel, Innoviz continued commercial discussions with
the Volkswagen Group regarding additional opportunities.
-- Progressing collaborations with additional partners - Innoviz is working
with the Qualcomm platform for the Volkswagen Cariad level 3 program and
with the Mobileye platform for the ID. Buzz program and the additional
level 3 program. The Company continues to progress its collaboration
with Nvidia and is working with OEMs on several Nvidia based RFQs in its
pipeline.
-- Advancing pipeline opportunities with two leading level 4 platform
companies - The companies are in the trucking and ride hailing spaces
and are working with various OEMs.
-- Reached key milestone with successful winter test of InnovizTwo B-Sample
with Volkswagen - The InnovizTwo late-stage B-sample was strenuously
tested over 18 days of driving in harsh winter conditions across ten
countries. InnovizTwo showed resilience to different potential blockages
and weather conditions, which we believe may provide the Company with a
potential competitive advantage. The data and insights accumulated
during the testing are being used to improve Innoviz's proprietary
AI-backed software and hardware solutions.
-- Successfully implemented strategic realignment - The Company implemented
nearly all of the initiatives of its previously announced realignment
plan during the quarter.
First Quarter 2024 Financial Results
Revenues in Q1 2024 were $7.1 million, compared to revenues of $1.0 million in Q1 2023, driven by a combination of increases in NREs, production units and sample shipments.
Operating Expenses in Q1 2024 were $31.7 million, a decrease of 5% from $33.3 million in Q1 2023. Operating expenses for Q1 2024 included $5.9 million of share-based compensation compared to $5.2 million in Q1 2023.
Liquidity as of March 31, 2024 consisted of approximately $128.3 million in cash and cash equivalents, bank deposits, marketable securities and short-term restricted cash.
Second Quarter 2024 Financial Targets
The Company expects second quarter 2024 revenues in the range of $4 million to $5 million, compared to $1.5 million for Q2 2023.
FY 2024 Operational Targets
The Company reiterated its targets for FY 2024:
-- Secure 2-3 additional customer programs in 2024
-- Secure $20-70 million of new NRE bookings in 2024
Conference Call
Innoviz management will hold a web conference today, May 8, 2024, at 9:00 a.m. Eastern time (6:00 a.m. Pacific time) to discuss commercial and strategic updates, financial results for the first quarter of 2024 and 2024 financial and operational targets. Innoviz CEO Omer Keilaf and CFO Eldar Cegla will host the call, followed by a question-and-answer session.
Investors are invited to attend by registering in advance here. All relevant information will be sent upon registration.
A replay of the webinar will also be available shortly after the call in the Investors section of Innoviz's website for 90 days.
About Innoviz
Innoviz is a global leader in LiDAR technology, serving as a Tier 1 supplier to the world's leading automotive manufacturers and working towards a future with safe autonomous vehicles on the world's roads. Innoviz's LiDAR and perception software "see" better than a human driver and reduce the possibility of error, meeting the automotive industry's strictest expectations for performance and safety. Operating across the U.S., Europe, and Asia, Innoviz has been selected by internationally recognized premium car brands for use in consumer vehicles as well as by other commercial and industrial leaders for a wide range of use cases. For more information, visit innoviz.tech.com.
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Forward Looking Statements
This announcement contains certain forward-looking statements within the meaning of the federal securities laws, including statements regarding the services offered by Innoviz, the anticipated technological capability of Innoviz's products, the markets in which Innoviz operates, and Innoviz's projected future operational and financial results. These forward-looking statements generally are identified by the words "believe," "project," "expect," "anticipate," "estimate," "intend," "strategy," "future," "opportunity," "plan," "may," "should," "will," "would," "will be," "will continue," "will likely result," and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties.
"NRE (Non-recuring Engineering) bookings" is booked services that may be ordered from Innoviz usually as part of a program design win and includes, among other things, application engineering, product adaptation services, testing and validation services, standards and qualification work and change requests (usually during the lifetime of a program). The commitment for a certain NRE is usually provided around the design win and may be paid based on milestones over the development phase of the project which may take a few years.
Many factors could cause actual future events, and, in the case of our forward-looking revenues and NRE bookings, actual orders or actual payments, to differ materially from the forward-looking statements in this announcement including but not limited to, the ability to implement business plans, forecasts, and other expectations, the ability to convert design wins into definitive orders and the magnitude of such orders, the possibility that NRE would be set off against liabilities and indemnities, the ability to identify and realize additional opportunities, potential changes and developments in the highly competitive LiDAR technology and related industries, and our expectations regarding the impact of the evolving conflict in Israel to our ongoing operations. The foregoing list is not exhaustive. You should carefully consider such risk and the other risks and uncertainties described in Innoviz's annual report on Form 20-F for the year ended December 31, 2023 filed with the U.S. Securities and Exchange Commission ("SEC") on March 12, 2024 and in other documents filed by Innoviz from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Innoviz assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. Innoviz gives no assurance that it will achieve its expectations.
INNOVIZ TECHNOLOGIES LTD. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands (except share and per share data)
(Unaudited)
Three Months Ended
M
arch
31,
2024 2023
Revenues $
7,057 $
1,010
Cost of revenues (8,354) (4,941)
Gross loss (1,297) (3,931)
Operating expenses:
Research and development 23,845 26,102
Sales and marketing 2,400 2,448
General and administrative 5,444 4,735
Total
operating expenses 31,689 33,285
---
Operating loss (32,986) (37,216)
Financial income, net 2,901 2,776
Loss before taxes on income (30,085) (34,440)
Taxes on income (53) (360)
Net loss $
(30,138) $
(34,800)
Basic and diluted net loss per ordinary share $
(0.18) $
(0.26)
Weighted average number of ordinary shares used in computing basic
and diluted net loss per ordinary share
165,666,183 136,358,385
INNOVIZ TECHNOLOGIES LTD. AND ITS SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands
March 31, December 31,
2024 2023
(Unaudited) (Audited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $
14,271 $
26,283
Short term restricted cash 53 53
Bank deposits 95,633 105,750
Marketable securities 13,543 13,335
Trade receivables, net 337 7,395
Inventory 2,012 1,868
Prepaid expenses and other current assets 2,277 5,774
Total current assets 128,126 160,458
LONG-TERM ASSETS:
Marketable securities 4,806 4,813
Restricted deposits 2,566 2,623
Property and equipment, net 24,357 25,770
Operating lease right-of-use assets, net 24,926 25,486
Other long-term assets 82 84
Total long-term assets 56,737 58,776
Total assets $
184,863 $
219,234
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Trade payables $
5,043 $
8,036
Deferred revenues 582 6,949
Employees and payroll accruals 10,252 9,468
Accrued expenses and other current liabilities 8,192 8,743
Operating lease liabilities 4,054 4,034
Total current liabilities 28,123 37,230
LONG-TERM LIABILITIES:
Operating lease liabilities 27,315 28,475
Warrants liability 154 240
Total long-term liabilities 27,469 28,715
SHAREHOLDERS' EQUITY:
Ordinary Shares of no-par value
Additional paid-in capital 794,697 788,577
Accumulated deficit (665,426) (635,288)
Total shareholders' equity 129,271 153,289
Total liabilities and shareholders' equity $
184,863 $
219,234
INNOVIZ TECHNOLOGIES LTD. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands
(Unaudited)
Three Months Ended
March 31,
2024 2023
Cash flows from operating activities:
Net loss $
(30,138) $
(34,800)
Adjustments required to reconcile net loss to net cash used in operating activities:
Depreciation and amortization 2,495 1,407
Remeasurement of warrants liability (86)
Change
in accrued interest on bank deposits (787) 1,195
Change
in marketable securities (158) (294)
Share
-
based compensation 6,510 5,300
Foreign exchange gain, net (46) (89)
Change
in prepaid expenses and other assets 2,170 424
Change
in trade receivables, net 7,058 (292)
Change
in inventory (144) 103
Changes in operating lease assets and liabilities, net (580) 33
Change
in trade payables (2,067) (1,346)
Change
in accrued expenses and other liabilities (835) 762
Change
in employees and payroll accruals 1,106 779
Change
in deferred revenues (6,367) 219
Net cash used in operating activities (21,869) (26,599)
Cash flows from investing activities:
Purchase of property and equipment (1,149) (2,357)
Investment in bank deposits (14,000)
Withdrawal of bank deposits 25,000 79,500
Investment in restricted deposits (67) (40)
Investment in marketable securities (938) (7,100)
Proceeds from sales and maturities of marketable securities 895 13,830
Net cash provided by investing activities 9,741 83,833
Cash flows from financing activities:
Proceeds from exercise of options 42 120
Net cash provided by financing activities 42 120
Effect of exchange rate changes on cash, cash equivalents and restricted cash 74 126
Increase (decrease) in cash, cash equivalents and restricted cash (12,012) 57,480
Cash, cash equivalents and restricted cash at the beginning of the period 26,336 55,954
Cash, cash equivalents and restricted cash at the end of the period $
14,324 $
113,434
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SOURCE Innoviz Technologies
