Q3 2023 revenues exceeds guidance with 138% growth
quarter-over-quarter and 297% growth year-over-year
Innoviz reiterates full year 2023 commercial and financial
targets and expects another meaningful step-up in revenues in Q4
2023
TEL
AVIV, Israel, Nov. 8, 2023
/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 third quarter
ended September 30, 2023 and
reiterated 2023 commercial and financial targets.
"With our transition from SOP preparation to steady state
manufacturing advancing day by day, we are shifting even more of
our focus towards winning the next rounds of series production
awards," said Omer Keilaf, Innoviz Co-Founder and CEO. "We continue
to believe the LiDAR market will ultimately be a 'winner takes
most' industry, and that the next few deals could provide us with
additional momentum."
Keilaf added, "While the tragic events that have taken place in
Israel over the past month have
affected us all on a personal level, our global business has
continued to operate as planned. Our international manufacturing
operations in Germany, the U.S.
and Asia were unaffected, and
operations at our Israeli headquarters quickly normalized, aided by
detailed business continuity planning coupled with a tremendous
level of determination and commitment from the Innoviz team. It is
in these trying times that we lift our heads and persevere."
Commercial and Strategic Updates
- BMW Group series production unit shipments began in the
third quarter of 2023 – the Company began shipping production
units of its InnovizOne LiDAR sensor components to the BMW Group's
first generation program coupled with the final iteration of the
perception software.
- Shuttle program transitioned to six LiDAR configuration,
from four, and continues progress towards SOP – the
InnovizOne-based shuttle program has transitioned from a four-LiDAR
configuration, with a LiDAR in each corner, to a six-LiDAR
configuration, adding two side LiDARs capable of producing a wide
field of view. The change highlights the flexibility of the
platform and is expected to increase the total revenue content per
vehicle available to Innoviz. The program continues to progress
towards SOP.
- August capital raise strengthened positioning heading into
RFQ decision making – multiple RFQ programs progressed to
various levels of testing, audits, and certification during the
third quarter, with three programs moving to more advanced
financial and operational audits. The strategic decision to raise
capital strengthened the Company's positioning in these processes
and helped it progress towards the final stages for these programs.
The Company continues to target adding two new OEMs to its customer
lineup this year.
- Growing non-recurring engineering (NRE) revenue contribution
validates long-term strategy – incremental NRE revenue
contribution in the third quarter of 2023 validated the Company's
strategy to transition to a Tier 1 automotive supplier and to
pursue increasing amounts of pre-production NRE revenue. The
Company believes NRE revenue will become a growing contributor to
its medium-term financial profile.
- Upgraded version of InnovizTwo B-Sample with new custom
ASIC shipped to multiple customers and prospects –
the Company unveiled a second iteration of its InnovizTwo sensor
and software suite B-sample with its new and more powerful custom
ASIC integrated. This latest B2.0 version unlocks new
levels of accuracy, increased range, a broader field of view, and
higher resolution. The increased performance and functionality are
expected to further strengthen Innoviz's positioning within its RFQ
pipeline.
- New light commercial vehicle program remains on a rapid
development path – sample shipments for the new light
commercial vehicle program announced Q1 2023 continued to grow in
the quarter. The program remains on track for a mid-decade SOP and
we expect test vehicles with multiple InnovizTwo LiDAR installed to
be on public roads later this year.
- Working towards additional growth opportunities with
Volkswagen Group – the Company continues to work on securing
additional vehicles and platforms within the Volkswagen Group, in
addition to its initial 2022 series production award. The program
continues to track towards a mid-decade SOP.
- BMW Group Gen 2 program development continues –
development continued on the InnovizTwo-based second generation
LiDAR sensor and software suite for the BMW Group, including the
all-new InnovizCore AI compute module and Minimum Risk Maneuver
(MRM) software.
- Examples of Innoviz technology expected to be on display at
CES – Innoviz plans to display a Level 3 BMW 7 Series with an
integrated InnovizOne LiDAR at its booth at the Consumer
Electronics Show in Las Vegas this
January. Investors interested in coordinating a booth visit are
encouraged to reach out to Investors@innoviz-tech.com.
Third Quarter 2023 Financial Results
Revenues in Q3 2023 were $3.5
million, up 138% compared to revenues of $1.5 million in Q2 2023 and up 297% compared to
revenues of $0.9 million in Q3 2022.
The 138% quarter-over-quarter increase in revenues was driven by
strong growth in InnovizTwo unit sales, which increased 102%
sequentially, coupled with incremental NRE revenue. The
year-over-year growth in revenues was a combination of higher
sample shipments and higher NRE revenues, partially offset by
lower production-level component pricing for the BMW first
generation program.
Operating expenses in Q3 2023 were $27.8 million, a decrease of 11% compared to
operating expenses of $31.3 million
in Q3 2022. Operating expenses for Q3 2023 included $5.0 million of share-based compensation compared
to $4.9 million of share-based
compensation in Q3 2022. The year-over-year decrease in operating
expense was driven primarily by $2.9
million of deferred NRE expenses, which will be matched to
future NRE revenue and recognized as COGS.
Liquidity as of September 30,
2023 consisted of approximately $163.8 million in cash and cash equivalents,
short term deposits, short term restricted cash and marketable
securities.
2023 Financial Targets
The Company reiterated its outlook for full year 2023:
- +1-3 additional programs with existing customers
- +2 new series production awards with new customers
- 2023 revenues are expected to be in the range of $15-20 million (+150-230% YoY)
- Q4 2023 revenues are expected to be in the range of
$9-14 million (+470-790% YoY)
- 2023 Cash Collection from Customers is expected to be in the
range of $20-30 million (+295-490%
YoY)
- 2023 net new NRE bookings are expected to be in the range of
$20-70 million (+80-530% YoY)
Conference Call
Innoviz management will hold a web conference today,
November 8, 2023, at 9:00 a.m. Eastern time (6:00 a.m. Pacific time) to discuss commercial and
strategic updates, financial results for the third quarter ended
September 30, 2023 and 2023
commercial 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, 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.
Join the discussion: Facebook, LinkedIn, YouTube,
Twitter
Media Contact
Media@innoviz-tech.com
Investor Contact (US)
Rob Moffatt
VP, Corporate Development & IR
Innoviz Technologies
Investors@innoviz-tech.com
Investor Contact (Israel)
Maya
Lustig
Director, Investor Relations
Innoviz Technologies
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-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 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 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 filed with the U.S. Securities
and Exchange Commission ("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)
|
|
|
|
Nine
Months Ended
September
30,
|
|
Three Months
Ended
September
30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
5,959
|
$
|
4,449
|
$
|
3,483
|
$
|
878
|
Cost of
revenues
|
|
(15,293)
|
|
(10,677)
|
|
(5,721)
|
|
(4,593)
|
|
|
|
|
|
|
|
|
|
Gross loss
|
|
(9,334)
|
|
(6,228)
|
|
(2,238)
|
|
(3,715)
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Research and
development
|
|
70,569
|
|
68,862
|
|
20,681
|
|
24,162
|
Sales and
marketing
|
|
6,778
|
|
7,875
|
|
2,158
|
|
2,494
|
General and
administrative
|
|
14,123
|
|
14,341
|
|
4,954
|
|
4,597
|
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
|
91,470
|
|
91,078
|
|
27,793
|
|
31,253
|
|
|
|
|
|
|
|
|
|
Operating
loss
|
|
(100,804)
|
|
(97,306)
|
|
(30,031)
|
|
(34,968)
|
|
|
|
|
|
|
|
|
|
Financial income,
net
|
|
8,321
|
|
4,852
|
|
3,054
|
|
812
|
|
|
|
|
|
|
|
|
|
Loss before taxes on
income
|
|
(92,483)
|
|
(92,454)
|
|
(26,977)
|
|
(34,156)
|
Taxes on
income
|
|
(520)
|
|
(97)
|
|
(52)
|
|
(49)
|
|
|
|
|
|
|
|
|
|
Net loss
|
$
|
(93,003)
|
$
|
(92,551)
|
$
|
(27,029)
|
$
|
(34,205)
|
|
|
|
|
|
|
|
|
|
Basic and diluted net
loss per ordinary share
|
$
|
(0.66)
|
$
|
(0.69)
|
$
|
(0.18)
|
$
|
(0.25)
|
|
|
|
|
|
|
|
|
|
Weighted average number
of ordinary shares used in
computing basic and diluted net loss per ordinary
share
|
|
141,494,442
|
|
134,939,362
|
|
151,201,336
|
|
135,602,409
|
|
INNOVIZ TECHNOLOGIES
LTD. AND ITS SUBSIDIARIES
|
CONSOLIDATED BALANCE
SHEETS
|
U.S. dollars in
thousands
|
|
|
|
September
30,
|
|
December
31,
|
|
|
|
2023
|
|
2022
|
|
ASSETS
|
|
(Unaudited)
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
29,782
|
$
|
55,718
|
|
Short term restricted
cash
|
|
51
|
|
236
|
|
Bank
deposits
|
|
111,077
|
|
80,684
|
|
Marketable
securities
|
|
15,458
|
|
41,681
|
|
Trade receivables,
net
|
|
4,872
|
|
1,762
|
|
Inventory
|
|
4,838
|
|
4,236
|
|
Prepaid expenses and
other current assets
|
|
5,444
|
|
3,236
|
|
Total current
assets
|
|
171,522
|
|
187,553
|
|
|
|
|
|
|
|
LONG-TERM
ASSETS:
|
|
|
|
|
|
Marketable
securities
|
|
7,390
|
|
7,840
|
|
Restricted
deposits
|
|
2,457
|
|
2,543
|
|
Property and
equipment, net
|
|
29,080
|
|
30,489
|
|
Operating lease
right-of-use assets, net
|
|
26,069
|
|
26,927
|
|
Other long-term
assets
|
|
81
|
|
81
|
|
Total long-term
assets
|
|
65,077
|
|
67,880
|
|
|
|
|
|
|
|
Total
assets
|
$
|
236,599
|
$
|
255,433
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
Trade
payables
|
$
|
7,006
|
$
|
8,367
|
|
Advances from
customers and deferred revenues
|
|
4,596
|
|
4,082
|
|
Employees and payroll
accruals
|
|
8,717
|
|
8,693
|
|
Accrued expenses and
other current liabilities
|
|
6,971
|
|
7,572
|
|
Operating lease
liabilities
|
|
3,857
|
|
3,720
|
|
Total current
liabilities
|
|
31,147
|
|
32,434
|
|
|
|
|
|
|
|
LONG-TERM
LIABILITIES:
|
|
|
|
|
|
Advances from
customers and deferred revenues
|
|
121
|
|
61
|
|
Operating lease
liabilities
|
|
27,643
|
|
30,201
|
|
Warrants
liability
|
|
368
|
|
720
|
|
Total long-term
liabilities
|
|
28,132
|
|
30,982
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY:
|
|
|
|
|
|
Ordinary Shares of
no-par value
|
|
-
|
|
-
|
|
Additional paid-in
capital
|
|
782,157
|
|
703,851
|
|
Accumulated
deficit
|
|
(604,837)
|
|
(511,834)
|
|
Total
shareholders' equity
|
|
177,320
|
|
192,017
|
|
|
|
|
|
|
|
Total liabilities
and shareholders' equity
|
$
|
236,599
|
$
|
255,433
|
|
|
|
|
|
|
|
INNOVIZ TECHNOLOGIES
LTD. AND ITS SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
U.S. dollars in
thousands
|
|
|
|
Nine
Months Ended
September
30,
|
|
Three Months
Ended
September
30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
(Unaudited)
|
|
(Unaudited)
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
Net loss
|
$
|
(93,003)
|
$
|
(92,551)
|
$
|
(27,029)
|
$
|
(34,205)
|
Adjustments required
to reconcile net loss to net cash used in
operating activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
5,245
|
|
5,929
|
|
2,291
|
|
1,737
|
Remeasurement of
warrants liability
|
|
(344)
|
|
(335)
|
|
(99)
|
|
454
|
Change in accrued
interest on bank deposits
|
|
(342)
|
|
(567)
|
|
(797)
|
|
(322)
|
Change in marketable
securities
|
|
(409)
|
|
844
|
|
(172)
|
|
137
|
Share-based
compensation
|
|
15,826
|
|
14,097
|
|
5,383
|
|
4,932
|
Foreign exchange loss,
net
|
|
447
|
|
1,421
|
|
382
|
|
201
|
Change in prepaid
expenses and other assets
|
|
(441)
|
|
(289)
|
|
(1,455)
|
|
2,897
|
Change in trade
receivables, net
|
|
(3,110)
|
|
(265)
|
|
(2,490)
|
|
297
|
Change in
inventory
|
|
(602)
|
|
(452)
|
|
(254)
|
|
(57)
|
Changes in operating
lease assets and liabilities, net
|
|
(1,563)
|
|
5,483
|
|
(1,765)
|
|
5,913
|
Change in trade
payables
|
|
56
|
|
(381)
|
|
190
|
|
(441)
|
Change in accrued
expenses and other liabilities
|
|
(544)
|
|
283
|
|
(654)
|
|
1,468
|
Change in employees
and payroll accruals
|
|
(823)
|
|
882
|
|
(1,509)
|
|
1,440
|
Change in advances
from customers and deferred revenues
|
|
574
|
|
334
|
|
377
|
|
91
|
Net cash used in
operating activities
|
|
(79,033)
|
|
(65,567)
|
|
(27,601)
|
|
(15,458)
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
Purchase of property and equipment
|
|
(6,098)
|
|
(17,739)
|
|
(962)
|
|
(12,713)
|
Investment in bank
deposits
|
|
(142,600)
|
|
(79,500)
|
|
(80,600)
|
|
(29,500)
|
Withdrawal of bank
deposits
|
|
112,500
|
|
175,000
|
|
33,000
|
|
40,000
|
Increase in restricted
deposits
|
|
(40)
|
|
(2,633)
|
|
-
|
|
(53)
|
Investment in
marketable securities
|
|
(34,793)
|
|
(21,595)
|
|
(11,789)
|
|
(3,931)
|
Proceeds from sales
and maturities of marketable securities
|
|
61,875
|
|
21,595
|
|
21,590
|
|
3,931
|
Net cash provided by
(used in) investing activities
|
|
(9,156)
|
|
75,128
|
|
(38,761)
|
|
(2,266)
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
Issuance of ordinary
shares, net of issuance cost
|
|
61,934
|
|
-
|
|
61,934
|
|
-
|
Proceeds from exercise
of options
|
|
406
|
|
507
|
|
179
|
|
214
|
Net cash provided by
financing activities
|
|
62,340
|
|
507
|
|
62,113
|
|
214
|
Effect of exchange rate
changes on cash, cash equivalents and restricted cash
|
|
(272)
|
|
(1,293)
|
|
(301)
|
|
(171)
|
Increase (decrease) in
cash, cash equivalents and restricted cash
|
|
(26,121)
|
|
8,775
|
|
(4,550)
|
|
(17,681)
|
Cash, cash equivalents
and restricted cash at the beginning of the period
|
|
55,954
|
|
24,541
|
|
34,383
|
|
50,997
|
Cash, cash equivalents
and restricted cash at the end of the period
|
$
|
29,833
|
$
|
33,316
|
$
|
29,833
|
$
|
33,316
|
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content:https://www.prnewswire.com/news-releases/innoviz-reports-third-quarter-2023-results-delivering-strong-sequential-and-year-over-year-revenue-growth-301981405.html
SOURCE Innoviz Technologies