TEL
AVIV, Israel, May 17, 2023
/PRNewswire/ -- Arbe Robotics Ltd. (NASDAQ: ARBE) ("Arbe"), a
global leader in perception radar solutions, today announced
financial results for its first quarter, which ended March 31, 2023.
Key Q1 and Recent Company Highlights:
This quarter, significant steps have been taken towards
production and revenue growth through collaboration with Tier 1s
and leading car manufacturers aiming to adopt Arbe's technology for
enhancing safety and autonomy in their next-generation
platforms.
- Arbe and Weifu Group, a leading Tier 1 supplier in China, announced strategic cooperation with
DiDi Global's autonomous freight company, KargoBot, to provide 4D
Imaging Radars based on the proprietary Arbe chipset. The three
parties agreed to jointly promote the R&D and commercial
applications of Imaging Radars in the field of autonomous driving,
marking a significant milestone in advancing safety and autonomy in
the logistics and freight field.
- Weifu Group has successfully developed its radar system B
sample, which represents the production configuration. Weifu has
also established a mass production line with a current capacity to
manufacture tens of thousands of units per year, with an automated
production line under development to enable the production of
hundreds of thousands of radars annually, that will utilize Arbe's
cutting-edge chipset.
- Veoneer, Valeo, Hirain, Sensrad, four Tier 1s who chose the
Arbe chipset for their radar systems are in the final stages of
developing B samples and constructing production lines.
- Arbe is actively engaged with the perception teams of leading
European and Asian premium car manufacturers to implement its radar
technology into their next-generation solutions. This collaborative
effort is designed to bridge the existing gap between current
driver assist systems and the desired advancements in safety and
autonomy.
- Sensrad, a spin-out venture from Qamcom Group, which develops
radar systems based on the Arbe chipset, has received a strategic
investment from Gapwaves. The companies announced that they will
join forces to supply radar systems to non-automotive industry
segments including infrastructure, heavy machinery, surveillance,
and autonomous mobility.
"We are proud of the progress that we made in the first quarter,
highlighted by the successful establishment of a production line
for radar systems based on our chipsets at Weifu," said
Kobi Marenko, Chief Executive
Officer. "Arbe and Weifu have signed a strategic agreement with
DiDi Global's autonomous freight company, KargoBot. This
cooperation platform aims to drive the development of cutting-edge
technological products and expedite the commercialization of
autonomous driving solutions within the logistics and freight
sector.
"Furthermore, we are thrilled by the significant milestones
achieved by the Tier 1 suppliers we work with in engaging potential
customers across Europe, the U.S.,
and Asia. These accomplishments
instill confidence in our strong position for sustained growth and
reaffirm our commitment to securing four OEM selections by the end
of 2023," concluded Marenko.
First Quarter 2023 Financial Highlights
Revenues for Q1 2023 were $0.4
million, a decrease from $0.9
million in Q1 2022. Revenue was in line with expectations
given Arbe's decision to shift focus to chips for
production. Backlog as of March 31,
2023, was $0.4 million, not
including the previously announced HiRain preliminary order.
Gross margin for Q1 2023 was 11%, compared to 56.1% in Q1 2022,
mainly related to economy of scale.
Operating expenses in Q1 2023 were $10.7
million, compared to $11.1
million in Q1 2022. The decrease in operating expenses was
primarily driven by a decrease in general and administrative
expenses from $2.1 million in Q1 2022
to $1.6 million in Q1 2023 and a
decrease in sales and marketing expenses from $1.2 million in Q1 2022 to $0.9 million in Q1 2023. The decrease was
primarily related to favorable exchange rate, and to a lesser
extent, due to labor cost.
The decrease was partially offset by an increase in research and
development expenses from $7.8
million in Q1 2022 to $8.1
million in Q1 2023. The increase resulted from our
continuing investment efforts as we progress toward production,
supported by favorable exchange rate impact. As a result, our
operating loss remained unchanged from Q1 2022 at $10.6 million.
Net loss in the first quarter of 2023 increased to $9.9 million, compared to a net loss of
$7.9 million in the first quarter of
2022. Net loss in Q1 2023 included $0.7
million of financial income, mainly related to favorable
exchange rates and interest from deposits. Net loss in Q1 2022
reflected financial income of $2.8
million, mainly related to warrant revaluations.
Adjusted EBITDA, a non-GAAP measurement which excludes financial
expense/income and expenses for non-cash share-based compensation
and for non-recurring public offering expenses, for Q1 2023,
yielded a loss of $8.4 million,
compared to a loss of $8.5 million in
the first quarter of 2022.
Balance Sheet & Liquidity
As of March 31, 2023, Arbe had
$44.9 million in cash and cash
equivalents with no debt.
Outlook
Management reiterated the full year outlook for the period
ending December 31, 2023. Based on
current estimates:
- Our goal for 2023 is to achieve 4 design-ins with
automakers.
- Revenues are expected to be in the range of $5 to $7 million,
implying approximately 71% growth over 2022 at the midpoint of the
range.
- Revenues will be heavily weighted towards the end of the year
as Arbe expects to start shipping production chips.
- Adjusted EBITDA is projected to be in the range of
($32 million) and ($35 million).
Conference Call & Webcast Details
Arbe will host a conference call and webcast today at
8:30 am ET. Speakers will include
Kobi Marenko, Chief Executive
Officer, Co-Founder and Director, and Karine Pinto-Flomenboim,
Chief Financial Officer. The Company encourages participants to
pre-register for the conference call here. Callers will
receive a unique dial-in upon registration, which enables immediate
access to the call. Participants may pre-register at any time,
including up to and after the call start time.
The live call may be accessed via:
U.S. Toll Free: (833)
316-0562
International: (412)
317-5736
Israel Toll Free:
(80) 921-2373
A telephonic replay of the conference call will be available
until May 31, 2023, following the end
of the conference call. To listen to the replay, please dial:
U.S. Toll Free: (877)
344-7529
International: (412) 317-0088
Access
ID: 6476189
A live webcast of the call can be accessed here or
from Arbe's Investor Relations website
at https://ir.arberobotics.com/news/ir-calendar. An
archived webcast of the conference call will also be made available
on the website following the call.
About Arbe
Arbe (Nasdaq: ARBE), a global leader in Perception Radar Chipset
Solutions, is spearheading a radar revolution, enabling truly safe
driver-assist systems today while paving the way to full
autonomous-driving. Arbe's imaging radar is 100 times more detailed
than any other radar on the market and is a mandatory sensor for
L2+ and higher autonomy. The company is empowering automakers,
tier-1 suppliers, delivery robots, commercial and industrial
vehicles, and a wide array of safety applications with advanced
sensing and paradigm-changing perception. Arbe is a leader in the
fast-growing automotive radar market that has a projected total
addressable market of $11 billion in
2025. Arbe is based in Tel Aviv,
Israel, and has an office in the
United States.
Cautionary Note Regarding Forward-Looking Statements
This press release and any statements made at the conference
call and webcast referred to in this press release, contains
"forward-looking statements" within the meaning of the Securities
Act of 1933 and the Securities Exchange Act of 1934, both as
amended by the Private Securities Litigation Reform Act of 1995.
The words "expect," "believe," "estimate," "intend," "plan,"
"anticipate," "may," "should," "strategy," "future," "will,"
"project," "potential" and similar expressions indicate
forward-looking statements. 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. These risks
and uncertainties include, but are not limited to: (i) our ability
to obtain design-ins during 2023; (ii) unanticipated delays or
difficulties in connection with the evaluation of Arbe's products
in evaluation and test programs; (iii) Arbe's ability to have
products manufactured for it by its third party supplier that meet
Arbe's and its customers quality standards and delivery
requirements; (iv) Arbe's ability to leverage its existing
relationships and secure orders resulting from the test programs;
(v) Arbe's ability to meet its projected revenue level and its
ability to operate profitably; (vi) Arbe's ability to meet its
timetable both to achieve full production and to meet the delivery
requirements of its customers; (vii) the development of safe
autonomous vehicles that include Arbe's radar systems; (viii)
Arbe's expectation that it will obtain orders from Tier 1 suppliers
and automakers that would build the radars based on its Chipset
solution; (ix) Arbe's belief that the Arbe Radar Chipset and Lynx
Surround Imaging Radar herald a breakthrough in radar technology
that provide Tier 1 suppliers and automakers with the ability to
replace the current radars with an advanced solution that meets the
safety requirements of Euro-NCAP and NHTSA for autonomous vehicles
at all levels of autonomous driving; (x) the ability of its Tier 1
customers to successfully market radar systems using Arbe's radar
to automobile manufacturers; (xi) Arbe's ability to develop and
market products based on its radar technology for uses outside of
the automotive industry; (xii) accidents or bad press resulting
from accidents involving autonomous driving vehicles, even those
using radar products from other companies or based on other
technology and the effect of any accidents with vehicles using
Arbe's radar system; (xiii) the effect of laws and changes in laws
that have an effect on the market for or the requirement for
autonomous vehicles; (xiv) Arbe's belief that an increased demand
for autonomous vehicles and the transition to mass production of
Level 2 and higher autonomous vehicles, requiring advanced systems
for automatically integrating vehicles in traffic and preventing
traffic accidents, are expected to increase the demand for products
in Arbe's field of activity; (xv) changes or inaccuracies in market
projections; and (xvi) the risk and uncertainties described in
"Cautionary Note Regarding Forward-Looking Statements," "Item 5.
Operating and Financial Review and Prospects" and Item 3. Key
Information –Risk Factors" in Amendment No. 1 to Arbe's Annual
Report on Form 20-F/A for the year ended December 31, 2022, which was filed with the
Securities and Exchange Commission on May 9,
2023 as well as other documents filed by Arbe with the SEC.
Accordingly, you are cautioned not to place undue reliance on these
forward-looking statements. Forward-looking statements relate only
to the date they were made, and Arbe does not undertake any
obligation to update forward-looking statements to reflect events
or circumstances after the date they were made except as required
by law or applicable regulation.
Information contained on, or that can be accessed through,
Arbe's website or any other website is expressly not incorporated
by reference into and is not a part of this press release.
CONSOLIDATED BALANCE
SHEETS
|
(U.S. dollars in
thousands)
|
|
|
|
|
|
|
March 31,
2023
|
|
December 31,
2022
|
Current
Assets:
|
|
(Unaudited)
|
|
(Unaudited)
|
Cash and cash
equivalents
|
|
44,903
|
|
54,171
|
Restricted
cash
|
|
135
|
|
144
|
Short term bank
deposits
|
|
-
|
|
400
|
Trade
receivable
|
|
2,088
|
|
2,202
|
Prepaid expenses and
other receivables
|
|
1,665
|
|
1,839
|
Total current
assets
|
|
48,791
|
|
58,756
|
|
|
|
|
|
Non-Current
Assets
|
|
|
|
|
Operating lease
right-of-use assets
|
|
453
|
|
465
|
Property and equipment,
net
|
|
1,573
|
|
1,609
|
Total non-current
assets
|
|
2,026
|
|
2,074
|
|
|
|
|
|
Total
assets
|
|
50,817
|
|
60,830
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Trade
payables
|
|
2,145
|
|
1,244
|
Operating lease
liabilities
|
|
328
|
|
364
|
Employees and payroll
accruals
|
|
2,268
|
|
2,861
|
Deferred
revenues
|
|
351
|
|
351
|
Accrued expenses and
other payables
|
|
2,402
|
|
5,609
|
Total current
liabilities
|
|
7,494
|
|
10,429
|
|
|
|
|
|
Long term
liabilities
|
|
|
|
|
Operating lease
liabilities
|
|
49
|
|
17
|
Warrant
liabilities
|
|
1,762
|
|
1,631
|
Total long-term
liabilities
|
|
1,811
|
|
1,648
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY:
|
|
|
|
|
Ordinary
Shares
|
|
*)
|
|
*)
|
Additional paid-in
capital
|
|
211,559
|
|
208,893
|
Accumulated
deficit
|
|
(170,047)
|
|
(160,140)
|
Total shareholders'
equity
|
|
41,512
|
|
48,753
|
|
|
|
|
|
Total liabilities
and shareholders' equity
|
|
50,817
|
|
60,830
|
|
|
|
|
|
*) Represents less than
$1.
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(U.S. dollars in
thousands, except share and per share data)
|
|
|
|
|
|
|
|
|
|
3 Months
Ended
|
|
3 Months
Ended
|
|
|
|
March 31,
2023
|
|
March 31,
2022
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
Revenues
|
|
355
|
|
876
|
|
Cost of
revenues
|
|
316
|
|
384
|
|
Gross
Profit
|
|
39
|
|
492
|
|
|
|
|
|
|
|
Operating
Expenses:
|
|
|
|
|
|
Research and
development, net
|
|
8,124
|
|
7,803
|
|
Sales and
marketing
|
|
924
|
|
1,182
|
|
General and
administrative
|
|
1,630
|
|
2,145
|
|
Total operating
expenses
|
|
10,678
|
|
11,130
|
|
|
|
|
|
|
|
Operating
loss
|
|
(10,639)
|
|
(10,638)
|
|
|
|
|
|
|
|
Financial income,
net
|
|
(732)
|
|
(2,782)
|
|
|
|
|
|
|
|
Net
loss
|
|
(9,907)
|
|
(7,856)
|
|
|
|
|
|
|
|
Basic net loss per
ordinary share
|
|
(0.15)
|
|
(0.12)
|
|
|
|
|
|
|
|
Weighted-average number
of
shares used in computing basic net
loss per ordinary share
|
|
64,671,688
|
|
63,034,545
|
|
|
|
|
|
|
|
Diluted net loss per
ordinary share
|
|
(0.17)
|
|
(0.12)
|
|
|
|
|
|
|
|
Weighted-average number
of
shares used in computing diluted
net loss per ordinary share
|
|
58,969,265
|
|
63,034,545
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(U.S. dollars in
thousands)
|
|
|
|
|
|
|
|
|
3 Months
Ended
|
|
3 Months
Ended
|
|
|
|
|
March 31,
2023
|
|
March 31,
2022
|
|
|
Cash flows from
operating activities:
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
Net
Loss
|
|
(9,907)
|
|
(7,856)
|
|
|
|
|
|
|
|
|
|
Adjustments to
reconcile loss to net cash used in operating activities:
|
|
|
|
|
|
|
Depreciation
|
|
137
|
|
105
|
|
|
Stock-based
compensation
|
|
2,008
|
|
1,790
|
|
|
Warrants to service
providers
|
|
97
|
|
69
|
|
|
Revaluation of warrants
and accretion
|
|
131
|
|
(3,135)
|
|
|
|
|
|
|
|
|
|
Change in operating
assets and liabilities:
|
|
|
|
|
|
|
Decrease (increase) in
trade receivable
|
|
114
|
|
(465)
|
|
|
Decrease (increase) in
prepaid expenses and other receivables
|
|
174
|
|
(339)
|
|
|
Operating lease ROU
assets and liabilities, net
|
|
8
|
|
(16)
|
|
|
Increase (decrease) in
trade payables
|
|
853
|
|
(668)
|
|
|
Increase (decrease) in
employees and payroll accruals
|
|
(593)
|
|
372
|
|
|
Increase (decrease) in
deferred revenue
|
|
-
|
|
5
|
|
|
decrease in accrued
expenses and other payables
|
|
(3,207)
|
|
(2,865)
|
|
|
|
|
|
|
|
|
|
Net cash used in
operating activities
|
|
(10,185)
|
|
(13,003)
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
Change in bank
deposits
|
|
400
|
|
(400)
|
|
|
Purchase of property
and equipment
|
|
(53)
|
|
(242)
|
|
|
|
|
|
|
|
|
|
Net cash provided by
(used in) investing activities
|
|
347
|
|
(642)
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
Proceeds from exercise
of options
|
|
561
|
|
96
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
financing activities
|
|
561
|
|
96
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate
fluctuations on cash and cash equivalent
|
|
509
|
|
65
|
|
|
|
|
|
|
|
|
|
Decrease (Increase) in
cash, cash equivalents and restricted cash
|
|
(9,786)
|
|
(13,614)
|
|
|
Cash, cash equivalents
and restricted cash at the beginning of
period
|
|
54,315
|
|
100,936
|
|
|
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash at the end of period
|
|
45,038
|
|
87,387
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF
GAAP NET LOSS TO NON-GAAP NET LOSS
|
|
(U.S. dollars in
thousands, except share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Months
Ended
|
|
3 Months
Ended
|
|
|
|
|
|
March 31,
2023
|
|
March 31,
2022
|
|
|
|
GAAP net loss
attributable to ordinary shareholders
|
|
(9,907)
|
|
(7,856)
|
|
|
|
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
Stock-based
compensation
|
|
2,008
|
|
1,790
|
|
|
|
Warrants to service
providers
|
|
97
|
|
69
|
|
|
|
Revaluation of warrants
and accretion
|
|
131
|
|
(3,135)
|
|
|
|
Non-recurring initial
public offering expenses
|
|
-
|
|
130
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net
loss
|
|
(7,671)
|
|
(9,002)
|
|
|
|
|
|
|
|
|
|
|
|
Basic Non-GAAP net loss
per ordinary share
|
|
(0.12)
|
|
(0.14)
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average number
of shares used in computing basic Non-GAAP net loss per ordinary
share
|
|
64,671,688
|
|
63,034,545
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Non-GAAP net
loss per ordinary share
|
|
(0.13)
|
|
(0.14)
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average number
of shares used in computing diluted Non-GAAP net loss per ordinary
share
|
|
58,969,265
|
|
63,034,545
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF
GAAP NET LOSS TO ADJUSTED EBITDA
|
|
(U.S. dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Months
Ended
|
|
3 Months
Ended
|
|
|
|
|
|
March 31,
2023
|
|
March 31,
2022
|
|
|
|
GAAP net loss
attributable to ordinary shareholders
|
|
(9,907)
|
|
(7,856)
|
|
|
|
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
Financial expenses
(income), net
|
|
(732)
|
|
(2,782)
|
|
|
|
Depreciation
|
|
137
|
|
105
|
|
|
|
Stock-based
compensation
|
|
2,008
|
|
1,790
|
|
|
|
Warrants to service
providers
|
|
97
|
|
69
|
|
|
|
Non-recurring initial
public offering expenses
|
|
-
|
|
130
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
(8,397)
|
|
(8,544)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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content:https://www.prnewswire.com/news-releases/arbe-announces-q1-2023-financial-results-301827164.html
SOURCE Arbe