• Revenue: $6.7 million, above the guidance range of $4 million to $5 million.
• Cash and Cash Equivalents: Approximately $106.4 million at the end of Q2 2024.
• Cash Burn: $21.6 million in Q2 2024, down from $27.6 million in Q2 2023.
• Operating Expenses: $23.3 million in Q2 2024, a decrease of 23% from $30.4 million in Q2 2023.
• Research and Development Expenses: $16.8 million in Q2 2024, down from $23.8 million in Q2 2023.
• Share-Based Compensation: $3.8 million in Q2 2024, compared to $5 million in Q2 2023.
• Guidance for Q3 2024 Revenue: Expected to be in the range of $3.5 million to $5 million.

• Warning! GuruFocus has detected 2 Warning Signs with INVZ.

Release Date: August 07, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Innoviz Technologies Ltd (NASDAQ:INVZ) reported Q2 2024 revenues of $6.7 million, surpassing the guidance range of $4 million to $5 million.
• The company secured an important agreement with a major platform partner to supply LiDAR technology for Level 4 autonomous driving platforms, potentially accelerating business growth.
• Innoviz announced a partnership with The Indoor Lab to supply InnovizTwo LiDARs for airport analytics, expanding their non-automotive market presence.
• The company has made significant progress in reducing cash burn, with a decrease in operational and capital expenditure from $27.6 million in Q2 2023 to $21.6 million in Q2 2024.
• Innoviz continues to enhance its technology, including upgrading its AI perception software, which has received positive feedback from leading OEMs.

Negative Points

• Despite revenue growth, Innoviz's Q3 2024 revenue guidance is lower, ranging from $3.5 million to $5 million, compared to $6.7 million in Q2 2024.
• The company's gross margins remain volatile due to fluctuations in unit volumes and NRE revenues.
• Innoviz faces competitive pressures in pricing, particularly in the short-range LiDAR market.
• The company is still in the process of completing changes to its production processes, which could impact timelines and operational efficiency.
• Innoviz's financial performance is heavily reliant on NRE revenues, which can be inconsistent and affect overall financial stability.

Q & A Highlights

Q: With the L4 platform award announced today, can you help us understand if there are new firm series production awards you're planning to add to your backlog? A: Omer Keilaf, CEO: The programs awarded to the platform will use our LiDARs, and several customers have already opted in. The number of LiDARs per vehicle can vary between 6 to 12, making this a very meaningful addition to our order book, similar to our previous VW announcement.

Q: Is the new platform partner award connected with the OEM award announced in June? A: Omer Keilaf, CEO: The June announcement was about a customer using our short-range LiDAR. Today's agreement allows the same for other customers within the platform, adding incrementally to our backlog.

Q: Can you provide details on the Indoor Lab LLC program and expected delivery volumes? A: Omer Keilaf, CEO: We will start delivering units to equip airports by the end of this year. Indoor Labs is working with new airports to expand their offering, and we expect more airports to be added to the program.

Q: How does the pricing strategy differ for automotive versus non-automotive markets, especially for short-range LiDAR? A: Omer Keilaf, CEO: Pricing is determined by the competitive landscape and the value generated for customers. We see a huge demand in the short-range space and will continue to explore attractive markets. Non-automotive pricing is based on the value provided in specific applications.

Q: Are there any changes needed for InnovizTwo for the Indoor Lab agreement or non-automotive markets? A: Omer Keilaf, CEO: No changes are needed. We use the same automotive-grade product for non-automotive applications, benefiting from our production line's capacity and system availability.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.