Innoviz updates 2023 targets due to expanded relationship
with a major existing customer along with other progress made
year-to-date
TEL
AVIV, Israel, May 17, 2023
/PRNewswire/ -- Innoviz Technologies Ltd. (NASDAQ: INVZ) (the
"Company" or "Innoviz"), a 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, 2023 and updated 2023
commercial and financial targets.
Innoviz today announced that a major existing global automotive
customer aims to expand its use of the InnovizTwo LiDAR to a new
light commercial vehicle program. With a mid-decade SOP target,
development of the program is on an accelerated track, pending
finalizing of technical requirements and commercial terms.
Potential financial contributions from this program are anticipated
to begin this year and played an important role in the decision to
update previously communicated 2023 commercial and financial
targets.
In addition, this collaboration includes an important
integration with a major compute platform that we believe could
lead to additional expansion opportunities in the future. Innoviz
believes that working with the top autonomy platform partners
should enable a faster time to market, accelerate the customer
evaluation process, allow more seamless integration with other
parts of the software stack, and position Innoviz well in its new
customer acquisition efforts.
"It was another fast-moving quarter at Innoviz, and today's news
marks a critical milestone in validating our strategy and
highlighting the value of our technology," said Omer Keilaf,
Innoviz Co-Founder and CEO. "An important part of our long-term
business plan has been to show that we can gain a foothold with a
large customer and earn the right to become their LiDAR vendor for
multiple vehicles in their lineup. This expected expansion of
business with one of our largest customers could achieve that,
while also offering a meaningful financial contribution for 2023
and beyond."
Keilaf further added, "We are extremely excited by the momentum
we have seen in our pipeline year-to-date and are encouraged by a
noticeable step-up in customer activity that further reinforces our
belief that LiDAR deployments are starting to accelerate."
Commercial and Strategic Updates
- Additional late-stage discussions with major existing
customers – In addition to the significant progress on the new
light commercial vehicle program, the Company is in late-stage
conversations for two additional program expansions with existing
major customers.
- Record levels of activity in the Company's pipeline –
Innoviz added an additional program to its pipeline, this time
bypassing the RFI stage and moving directly to the RFQ stage. The
Company also saw multiple programs advance from the RFI to the RFQ
stage during the quarter and has a record level of activity in the
RFQ stage, with more than five RFQ's currently in process.
- Potential displacement of a competitor – The Company
believes that part of the reason the Company's new light commercial
vehicle program is on an accelerated timeline is because it is
potentially displacing a development-stage competitor. Furthermore,
two of the Company's advancing RFQs would possibly also displace
the same development-stage competitor. Innoviz believes its 905nm
solution is structurally advantaged, both in terms of technology
and cost compared to 1550nm solutions.
- In discussions with NVIDIA for Hyperion platform –
Innoviz is in discussions with NVIDIA about integrating into series
production programs leveraging the Hyperion platform. The
conversations are running in parallel with several of the RFIs and
RFQs in the Company's pipeline and have the potential to bring
additional programs into the process.
- Innoviz is well-positioned towards 2023 Start of Production
(SOP) – The Company believes that it is well-positioned for
production launches of Innoviz's BMW and shuttle programs, with
volumes expected to increase in the second half of 2023.
- Innoviz moving up the software stack, quoting new Minimum
Risk Maneuver (MRM) system – MRM software and hardware acts as
a failsafe to the primary autonomy system within a vehicle. In the
event of a complication with the primary system and a failure of
the driver to take over steering control during a transition
period, the MRM system can assume control of the vehicle and
deliver it to safety, typically by exiting the road. Historically,
these have been camera-based systems. The Company is quoting both
the hardware and the software for the system, offering a higher
revenue and profit potential for vehicles that ultimately could
include the technology. The Company also believes that the systems
could be accretive to gross margins.
- Working with 8 of the top 10 global automakers – When
combined with Innoviz's existing customer order book, the Company
has existing awards or is in an active sourcing process with eight
out of the top ten global automakers.
First Quarter 2023 Financial Results
Revenues in Q1 2023 were $1.0
million, down 43% compared to revenues of $1.8 million in Q1 2022. The year-over-year
decline in revenues was driven primarily by the progress in the BMW
program as it approaches volume production at Magna, the Tier-1 on
the program. The transition includes a shift from selling full
LiDAR units to selling components to Magna at lower production
average sales prices.
The decline of BMW program revenues was partially offset by
meaningful growth in the volume of sales of InnovizTwo sample
units, which we expect will to continue to grow in the coming
quarters.
Operating expenses in Q1 2023 were $33.3 million, an increase of 7% compared to
operating expenses of $31.1 million
in Q1 2022. Operating expenses for Q1 2023 included $5.3 million of share-based compensation compared
to $4.7 million of share-based
compensation in Q1 2022. The year-over-year increase in operating
expense was driven primarily by higher R&D expense, which
increased to $26.1 million in Q1 2023
versus $22.8 million in Q1 2022 and
was partially offset by lower Sales and Marketing and General and
Administrative costs. The increase in R&D expense was driven
primarily by a year-over-year increase in headcount, leading to
higher personnel expenses and share-based compensation, with Q1
2023 share-based compensation of $3.5
million compared to $2.7
million in Q1 2022.
Liquidity in Q1 2023 was approximately $156.5 million in cash and cash equivalents,
short term deposits, short term restricted cash and marketable
securities as of March 31, 2023.
Updating 2023 Targets
The Company is providing the following updated
commercial targets for full year 2023:
- An additional one to three programs with existing customers,
increasing the Company's previously announced expectations of one
to two programs.
- Two series production awards with new customers.
- The new light commercial vehicle program coupled with progress
on other automotive programs and new RFQs offers increased
visibility into 2023 potential NRE bookings.
The Company is providing the following updated
financial outlook for full year 2023:
- Total new NRE bookings in the range of $20-40 million.
- 2023 revenues in the range of $12-15 million.
- 2023 Cash Collection from Customers of $20-30 million.
Conference Call
Innoviz management will hold a web conference today,
May 17, 2023, 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 ended
March 31, 2023 and 2023 operational
and financial 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 Technologies
Innoviz is a global leader in LiDAR technology, 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
www.innoviz-tech.com
Join the discussion: Facebook, LinkedIn, YouTube,
Twitter
Media Contact
Media@innoviz-tech.com
Investor Contact (US)
Rob
Moffatt
VP, Corporate Development & IR
Innoviz Technologies
+1 (203) 665-8644
Investors@innoviz-tech.com
Investor Contact (Israel)
Maya
Lustig
Director, Investor Relations
Innoviz Technologies
+972 54 677 8100
Investors@innoviz-tech.com
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, Innoviz's projected future
operational and financial results, including Cash Collection from
Customers, revenue and non-recurring engineering (NRE) bookings.
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. "Cash
Collection from Customers" is cash received by the Company from
revenues, advances and NRE bookings as described in the following
sentence. "NRE (Non-recurring Engineering) bookings" is booked
services that may be ordered from Innoviz usually as part of a
series production award or other program 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
initiation of the program 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 revenue, Cash Collection from
Customers, 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 series production awards or other programs 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, and potential
changes and developments in the highly competitive LiDAR technology
and related industries. 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
filed with the SEC on March 9, 2023
and 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)
|
|
|
|
Three Months
Ended
March
31,
|
|
|
2023
|
|
2022
|
|
|
(Unaudited)
|
|
|
|
|
|
Revenues
|
$
|
1,010
|
$
|
1,774
|
Cost of
revenues
|
|
(4,941)
|
|
(2,431)
|
|
|
|
|
|
Gross loss
|
|
(3,931)
|
|
(657)
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
Research and
development
|
|
26,102
|
|
22,761
|
Sales and
marketing
|
|
2,448
|
|
2,971
|
General and
administrative
|
|
4,735
|
|
5,329
|
|
|
|
|
|
Total operating
expenses
|
|
33,285
|
|
31,061
|
|
|
|
|
|
Operating
loss
|
|
(37,216)
|
|
(31,718)
|
|
|
|
|
|
Financial income,
net
|
|
2,776
|
|
1,510
|
|
|
|
|
|
Loss before taxes on
income
|
|
(34,440)
|
|
(30,208)
|
Taxes on
income
|
|
(360)
|
|
(20)
|
|
|
|
|
|
Net loss
|
$
|
(34,800)
|
$
|
(30,228)
|
|
|
|
|
|
Basic and diluted net
loss per ordinary share
|
$
|
(0.26)
|
$
|
(0.23)
|
|
|
|
|
|
Weighted average number
of ordinary shares used in
computing basic and diluted net loss per
ordinary share
|
|
136,358,385
|
|
134,224,876
|
|
|
|
|
|
INNOVIZ TECHNOLOGIES
LTD. AND ITS SUBSIDIARIES
|
|
CONSOLIDATED BALANCE
SHEETS
|
|
U.S. dollars in
thousands
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
|
|
2023
|
|
2022
|
|
ASSETS
|
|
(Unaudited)
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
113,381
|
$
|
55,718
|
|
Short term restricted
cash
|
|
53
|
|
236
|
|
Bank
deposits
|
|
-
|
|
80,684
|
|
Marketable
securities
|
|
35,187
|
|
41,681
|
|
Trade receivables,
net
|
|
2,054
|
|
1,762
|
|
Inventory
|
|
4,133
|
|
4,236
|
|
Prepaid expenses and
other current assets
|
|
2,976
|
|
3,236
|
|
Total current
assets
|
|
157,784
|
|
187,553
|
|
|
|
|
|
|
|
LONG-TERM
ASSETS:
|
|
|
|
|
|
Marketable
securities
|
|
7,898
|
|
7,840
|
|
Restricted
deposits
|
|
2,535
|
|
2,543
|
|
Property and
equipment, net
|
|
30,978
|
|
30,489
|
|
Operating lease
right-of-use assets
|
|
27,112
|
|
26,927
|
|
Other long-term
assets
|
|
83
|
|
81
|
|
Total long-term
assets
|
|
68,606
|
|
67,880
|
|
|
|
|
|
|
|
Total
assets
|
$
|
226,390
|
$
|
255,433
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
Trade
payables
|
$
|
6,476
|
$
|
8,367
|
|
Advances from
customers and deferred revenues
|
|
4,241
|
|
4,082
|
|
Employees and payroll
accruals
|
|
9,472
|
|
8,693
|
|
Accrued expenses and
other current liabilities
|
|
8,574
|
|
7,572
|
|
Operating lease
liabilities
|
|
4,744
|
|
3,720
|
|
Total current
liabilities
|
|
33,507
|
|
32,434
|
|
|
|
|
|
|
|
LONG-TERM
LIABILITIES:
|
|
|
|
|
|
Advances from
customers and deferred revenues
|
|
121
|
|
61
|
|
Operating lease
liabilities
|
|
29,395
|
|
30,201
|
|
Warrants
liability
|
|
712
|
|
720
|
|
Total long-term
liabilities
|
|
30,228
|
|
30,982
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY:
|
|
|
|
|
|
Ordinary Shares of
no-par value
|
|
-
|
|
-
|
|
Additional paid-in
capital
|
|
709,289
|
|
703,851
|
|
Accumulated
deficit
|
|
(546,634)
|
|
(511,834)
|
|
Total
shareholders' equity
|
|
162,655
|
|
192,017
|
|
|
|
|
|
|
|
Total liabilities
and shareholders' equity
|
$
|
226,390
|
$
|
255,433
|
|
|
|
|
|
|
|
INNOVIZ TECHNOLOGIES LTD. AND ITS
SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
U.S. dollars in
thousands
|
|
|
|
Three Months
Ended
March
31,
|
|
|
2023
|
|
2022
|
|
|
(Unaudited)
|
Cash flows from
operating activities:
|
|
|
|
|
Net
loss
|
$
|
(34,800)
|
$
|
(30,228)
|
Adjustments required
to reconcile net loss to net cash used in
operating activities:
|
|
|
|
|
Depreciation and
amortization
|
|
1,407
|
|
2,148
|
Remeasurement of
warrants liability
|
|
-
|
|
(938)
|
Change in accrued
interest on bank deposits
|
|
1,195
|
|
(327)
|
Change in marketable
securities
|
|
(294)
|
|
596
|
Share-based
compensation
|
|
5,300
|
|
4,708
|
Foreign exchange gain,
net
|
|
(89)
|
|
(3)
|
Change in prepaid
expenses and other assets
|
|
424
|
|
7
|
Change in trade
receivables, net
|
|
(292)
|
|
(591)
|
Changes in
inventory
|
|
103
|
|
(360)
|
Change in operating
lease assets and liabilities, net
|
|
33
|
|
222
|
Change in trade
payables
|
|
(1,346)
|
|
(390)
|
Change in accrued
expenses and other liabilities
|
|
762
|
|
(1,806)
|
Change in employees
and payroll accruals
|
|
779
|
|
170
|
Change in advances
from customers and deferred revenues
|
|
219
|
|
84
|
Net cash used
in operating activities
|
|
(26,599)
|
|
(26,708)
|
Cash flows from
investing activities:
|
|
|
|
|
Purchase
of property and equipment
|
|
(2,357)
|
|
(2,406)
|
Investment in bank
deposits
|
|
-
|
|
(5,000)
|
Withdrawal of bank
deposits
|
|
79,500
|
|
30,000
|
Increase
in restricted deposits
|
|
(40)
|
|
-
|
Investment in
marketable securities
|
|
(7,100)
|
|
(2,175)
|
Proceeds from sales
and maturities of marketable securities
|
|
13,830
|
|
2,175
|
Net cash
provided by investing activities
|
|
83,833
|
|
22,594
|
Cash flows from
financing activities:
|
|
|
|
|
Proceeds from exercise
of options
|
|
120
|
|
88
|
Net cash
provided by financing activities
|
|
120
|
|
88
|
Effect of exchange rate
changes on cash, cash equivalents and restricted cash
|
|
126
|
|
3
|
Increase (decrease) in
cash, cash equivalents and restricted cash
|
|
57,480
|
|
(4,023)
|
Cash, cash equivalents
and restricted cash at the beginning of the period
|
|
55,954
|
|
24,541
|
Cash, cash equivalents
and restricted cash at the end of the period
|
$
|
113,434
|
$
|
20,518
|
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