indie Semiconductor Exceeds Third Quarter 2024 Growth Expectations, Guides Accelerating Fourth Quarter
indie Semiconductor (INDI) reported Q3 2024 revenue of $54.0M, up 3.1% sequentially, with Non-GAAP gross margin of 50.4%. The company expanded its strategic backlog to $7.1B, up from $6.3B last year, driven by ADAS design-win momentum. Vision and radar solutions now comprise over 72% of the strategic backlog. Q3 GAAP operating loss was $49.9M, with Non-GAAP operating loss at $16.8M. The company expects Q4 2024 revenue to increase by more than 7% sequentially to $58.0M at mid-point, anticipating return to industry-leading growth trajectory in 2025.
indie Semiconductor (INDI) ha riportato un fatturato per il terzo trimestre del 2024 di 54,0 milioni di dollari, in aumento del 3,1% rispetto al trimestre precedente, con un margine lordo Non-GAAP del 50,4%. L'azienda ha ampliato il proprio portafoglio strategico a 7,1 miliardi di dollari, in crescita rispetto ai 6,3 miliardi dell'anno scorso, sostenuta dal slancio nei design ADAS. Le soluzioni di visione e radar ora costituiscono oltre il 72% del portafoglio strategico. La perdita operativa GAAP per il terzo trimestre è stata di 49,9 milioni di dollari, con una perdita operativa Non-GAAP di 16,8 milioni di dollari. L'azienda prevede che il fatturato del quarto trimestre del 2024 aumenterà di oltre il 7% rispetto al trimestre precedente, raggiungendo un valore medio di 58,0 milioni di dollari, anticipando un ritorno a una traiettoria di crescita leader nel settore nel 2025.
indie Semiconductor (INDI) reportó ingresos de 54,0 millones de dólares en el tercer trimestre de 2024, un aumento del 3,1% secuencialmente, con un margen bruto Non-GAAP del 50,4%. La empresa amplió su cartera estratégica a 7,1 mil millones de dólares, en comparación con 6,3 mil millones del año pasado, impulsada por el impulso en los diseños de ADAS. Las soluciones de visión y radar ahora comprenden más del 72% de la cartera estratégica. La pérdida operativa GAAP del tercer trimestre fue de 49,9 millones de dólares, con una pérdida operativa Non-GAAP de 16,8 millones de dólares. La empresa espera que los ingresos del cuarto trimestre de 2024 aumenten más del 7% secuencialmente, alcanzando un punto medio de 58,0 millones de dólares, anticipando un regreso a una trayectoria de crecimiento líder en la industria en 2025.
인디 반도체 (INDI)는 2024년 3분기 수익이 5,400만 달러로 직전 분기 대비 3.1% 증가했으며, 비 GAAP 총 마진은 50.4%라고 보고했습니다. 회사는 ADAS 디자인 승리에 힘입어 전략적 백록을 71억 달러로 확대했으며, 이는 작년 63억 달러에서 증가한 수치입니다. 현재 비전 및 레이더 솔루션은 전략적 백록의 72% 이상을 차지하고 있습니다. 3분기 GAAP 운영 손실은 4,990만 달러였으며, 비 GAAP 운영 손실은 1,680만 달러였습니다. 회사는 2024년 4분기 수익이 이전 분기 대비 7% 이상 증가하여 중간 지점에서 5,800만 달러에 이를 것으로 예상하고 있으며, 2025년에는 업계 선도적인 성장 궤도로 돌아갈 것으로 예상하고 있습니다.
indie Semiconductor (INDI) a annoncé un chiffre d'affaires au troisième trimestre 2024 de 54,0 millions de dollars, en hausse de 3,1% par rapport au trimestre précédent, avec une marge brute Non-GAAP de 50,4%. La société a élargi son carnet de commandes stratégique à 7,1 milliards de dollars, contre 6,3 milliards de dollars l'année dernière, soutenue par un élan dans les conceptions ADAS. Les solutions de vision et de radar représentent désormais plus de 72% du carnet de commandes stratégique. La perte d'exploitation GAAP pour le troisième trimestre s'élevait à 49,9 millions de dollars, tandis que la perte d'exploitation Non-GAAP était de 16,8 millions de dollars. L'entreprise s'attend à ce que le chiffre d'affaires du quatrième trimestre 2024 augmente de plus de 7% par rapport au trimestre précédent, atteignant un point central de 58,0 millions de dollars, anticipant un retour à une trajectoire de croissance leader dans l'industrie en 2025.
indie Semiconductor (INDI) meldete für das dritte Quartal 2024 Einnahmen von 54,0 Millionen Dollar, was einem Anstieg von 3,1% im Vergleich zum Vorquartal entspricht, mit einer Non-GAAP-Bruttomarge von 50,4%. Das Unternehmen hat sein strategisches Auftragsbuch auf 7,1 Milliarden Dollar ausgeweitet, im Vergleich zu 6,3 Milliarden Dollar im Vorjahr, angetrieben von der Dynamik bei den ADAS-Designgewinnen. Vision- und Radarlösungen machen nun über 72% des strategischen Auftragsbuchs aus. Der GAAP-Betriebsverlust im dritten Quartal betrug 49,9 Millionen Dollar, während der Non-GAAP-Betriebsverlust 16,8 Millionen Dollar betrug. Das Unternehmen erwartet, dass die Einnahmen im vierten Quartal 2024 sequenziell um mehr als 7% auf einen Mittelwert von 58,0 Millionen Dollar steigen, und rechnet mit einer Rückkehr zu einem markführenden Wachstumspfad im Jahr 2025.
- Revenue increased 3.1% sequentially to $54.0M
- Non-GAAP gross margin improved to 50.4%
- Strategic backlog grew 12% YoY to $7.1B
- Vision and radar solutions represent 72% of backlog
- Projected Q4 revenue growth of 7% sequentially
- GAAP operating loss of $49.9M in Q3
- Non-GAAP operating loss increased to $16.8M from $13.0M YoY
- GAAP loss per share of $0.28
- Non-GAAP loss per share of $0.09
Insights
indie Semiconductor delivered a mixed Q3 2024 performance with some concerning metrics. While revenue grew
The strategic backlog growth to
The design wins across multiple EV manufacturers and the expansion in ADAS programs signal strong market positioning in high-growth automotive segments. Notable wins with Chinese EV makers Xiaomi, Avatr, BYD and Li Auto, plus a North American EV maker, demonstrate broad market penetration. The focus on vision processing, LiDAR and radar aligns with critical automotive technology trends.
However, the reference to "persisting near-term challenges impacting the automotive industry" suggests ongoing headwinds. The 2025 timeline for volume shipments of flagship ADAS programs indicates a significant gap between design wins and revenue realization. The transition from backlog to revenue will be important for validating the company's market strategy.
-
Delivers Q3 2024 Revenue of
, up$54.0M 3.1% Sequentially, with Non-GAAP Gross Margin of50.4%
-
Guides Q4 2024 Revenue up more than
7% Sequentially at the Mid-point of$58.0M
-
Expands Strategic Backlog to
, up from$7.1B last year, driven by strong ADAS design-win momentum$6.3B
“indie exceeded consensus revenue forecasts in Q3, despite the persisting near-term challenges impacting the automotive industry," said Donald McClymont, indie's co-founder and chief executive officer. “Crucially, the market for indie’s innovative portfolio remains strong, driven by the long-term catalysts of advanced driver-assistance systems (ADAS), in-cabin user experience and electrification, consistent with the
Business Highlights
-
Expanded strategic backlog to
, driven by new ADAS program wins$7.1 billion
- Flagship ADAS programs in customer homologation, are on track for 2025 volume shipments
- Secured design-win for LiDAR optical engine and photonics module program
- Captured design-win for Vision processor in Avatr12 EV, a leading Chinese OEM
-
Extended ambient lighting design-wins in
China , across Xiaomi, Avatr, BYD & Li Auto models
- Secured multiple wins for a large North American EV maker with high-performance custom networking solutions
Q4 2024 Outlook
We provide guidance on a non-GAAP basis only because certain information necessary to reconcile such results and guidance to GAAP is difficult to estimate and dependent on future events outside of our control and, therefore, is not available without unreasonable efforts. Please refer to the header captioned “Discussion Regarding the Use of Non-GAAP Financial Measures” in this release for a further discussion of our use of non-GAAP measures.
“For the fourth quarter of 2024, we expect indie’s revenue to increase by more than 7 percent sequentially at the mid-point, once again outpacing the industry,” said Raja Bal, indie’s chief financial officer. “Based upon the continuing strong design-win activity for indie’s new radar and vision products, we anticipate a return to our industry-leading growth trajectory in 2025 and beyond.”
indie’s Q3 2024 Conference Call
indie Semiconductor will host a conference call with analysts to discuss its third quarter 2024 results and business outlook today at 5:00 p.m. Eastern time. To listen to the conference call via the Internet, please go to the Financials tab on the Investors page of indie’s website. To listen to the conference call via telephone, please call 1-(877) 451-6152 (domestic) or (201) 389-0879 (international), Conference ID: 13747703.
A replay of the conference call will be available beginning at 9:00 p.m. Eastern time on November 7, 2024 until 11:59 p.m. Eastern time on November 21, 2024 under the Financials tab on the Investors page of indie’s website, or by calling (844) 512-2921 (domestic) or (412) 317-6671 (international), Replay Pin Number: 13747703.
About indie
Headquartered in
Please visit us at www.indiesemi.com to learn more.
Safe Harbor Statement
This communication contains “forward-looking statements” (including within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended). Such statements can be identified by words such as “will likely result,” “expect,” “anticipate,” “estimate,” “believe,” “intend,” “plan,” “project,” “outlook,” “should,” “could,” “may” or words of similar meaning and include, but are not limited to, statements regarding our future business and financial performance and prospects, including expectations regarding our strategic backlog and design win momentum, conditions of the automotive industry and our belief regarding the market for our product portfolio, expectations regarding our guidance for top line growth and our belief that we are on track to return to industry-leading growth trajectory in 2025 and beyond. Such forward-looking statements are based upon the current beliefs and expectations of our management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are difficult to predict and generally beyond our control. Actual results and the timing of events may differ materially from the results included in such forward-looking statements. In addition to the factors previously disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 filed with the SEC on February 29, 2024 and in our other public reports filed with the SEC (including those identified under “Risk Factors” therein), the following factors, among others, could cause actual results and the timing of events to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: macroeconomic conditions, including inflation, rising interest rates and volatility in the credit and financial markets; the impacts of the ongoing conflicts in
Investors are cautioned not to place undue reliance on the forward-looking statements in this press release, which information set forth herein speaks only as of the date hereof. We do not undertake, and we expressly disclaim, any intention or obligation to update any forward-looking statements made in this announcement or in our other public filings, whether as a result of new information, future events or otherwise, except as required by law.
In addition, our strategic backlog estimate included herein represents the revenue we expect to recognize from product orders within the next ten years. The estimate of our strategic backlog requires substantial judgment and is based on a number of assumptions, including management’s current assessment of customer and third-party contracts that exist as of the date the estimate is made, as well as revenues from expected contract renewals and/or expected design wins, to the extent that we believe that recognition of the related revenue will be realizable within the next ten years. Although we believe the assumptions underlying our strategic backlog estimate are reasonable, they are not guarantees and we can give no assurance that we will be able to recognize the revenues reflected in the strategic backlog estimate. A number of factors could result in actual revenues being less than the amounts reflected in strategic backlog. Our customers or third-party partners may attempt to renegotiate or terminate their contracts for a number of reasons, including mergers, changes in their financial condition, changes to their products or development cycles unrelated to our technology, or general changes in economic conditions within their industries or geographic locations, we may experience delays in the development or delivery of products or services specified in customer contracts, or we may be unable to win competitive bid selection processes or achieve additional design wins on the timeline currently anticipated or at all. Accordingly, there can be no assurance that contracts, renewals or expected design wins included in strategic backlog will actually generate the specified revenues. Additionally, because strategic backlog estimates are operating metrics, the estimates are not required to be subject to the same level of internal review or controls as a
#indieSemi_Earnings
INDIE SEMICONDUCTOR, INC. PRELIMINARY CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in thousands, except share and per share amounts) (Unaudited) |
|||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
||||||||
Revenue: |
|
|
|
|
|
|
|
||||||||
Product revenue |
|
51,285 |
|
|
|
53,363 |
|
|
|
148,872 |
|
|
|
132,471 |
|
Contract revenue |
|
2,680 |
|
|
|
7,113 |
|
|
|
9,801 |
|
|
|
20,565 |
|
Total revenue |
|
53,965 |
|
|
|
60,476 |
|
|
|
158,673 |
|
|
|
153,036 |
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
Cost of goods sold |
|
32,730 |
|
|
|
35,187 |
|
|
|
93,060 |
|
|
|
91,370 |
|
Research and development |
|
45,968 |
|
|
|
41,594 |
|
|
|
136,858 |
|
|
|
120,226 |
|
Selling, general, and administrative |
|
20,848 |
|
|
|
19,841 |
|
|
|
60,617 |
|
|
|
55,292 |
|
Restructuring costs |
|
4,322 |
|
|
|
— |
|
|
|
4,322 |
|
|
|
— |
|
Total operating expenses |
|
103,868 |
|
|
|
96,622 |
|
|
|
294,857 |
|
|
|
266,888 |
|
Loss from operations |
|
(49,903 |
) |
|
|
(36,146 |
) |
|
|
(136,184 |
) |
|
|
(113,852 |
) |
Other income (expense), net: |
|
|
|
|
|
|
|
||||||||
Interest income |
|
994 |
|
|
|
1,858 |
|
|
|
3,379 |
|
|
|
6,147 |
|
Interest expense |
|
(2,180 |
) |
|
|
(2,242 |
) |
|
|
(6,420 |
) |
|
|
(6,534 |
) |
Gain (loss) from change in fair value of warrants |
|
— |
|
|
|
15,660 |
|
|
|
— |
|
|
|
(6,626 |
) |
Gain (loss) from change in fair value of contingent considerations and acquisition-related holdbacks |
|
(4,523 |
) |
|
|
3,535 |
|
|
|
28,167 |
|
|
|
4,208 |
|
Other income (expense) |
|
702 |
|
|
|
(692 |
) |
|
|
(98 |
) |
|
|
(263 |
) |
Total other income (loss), net |
|
(5,007 |
) |
|
|
18,119 |
|
|
|
25,028 |
|
|
|
(3,068 |
) |
Net loss before income taxes |
|
(54,910 |
) |
|
|
(18,027 |
) |
|
|
(111,156 |
) |
|
|
(116,920 |
) |
Income tax benefit (provision) |
|
315 |
|
|
|
(650 |
) |
|
|
1,338 |
|
|
|
2,714 |
|
Net loss |
|
(54,595 |
) |
|
|
(18,677 |
) |
|
|
(109,818 |
) |
|
|
(114,206 |
) |
Less: Net loss attributable to noncontrolling interest |
|
(4,913 |
) |
|
|
(1,580 |
) |
|
|
(9,797 |
) |
|
|
(11,236 |
) |
Net loss attributable to indie Semiconductor, Inc. |
|
(49,682 |
) |
|
|
(17,097 |
) |
|
|
(100,021 |
) |
|
|
(102,970 |
) |
|
|
|
|
|
|
|
|
||||||||
Net loss attributable to common shares — basic |
|
(49,682 |
) |
|
|
(17,097 |
) |
|
|
(100,021 |
) |
|
|
(102,970 |
) |
Net loss attributable to common shares — diluted |
|
(49,682 |
) |
|
|
(17,097 |
) |
|
|
(100,021 |
) |
|
|
(102,970 |
) |
|
|
|
|
|
|
|
|
||||||||
Net loss per share attributable to common shares — basic |
$ |
(0.28 |
) |
|
$ |
(0.12 |
) |
|
$ |
(0.58 |
) |
|
$ |
(0.73 |
) |
Net loss per share attributable to common shares — diluted |
$ |
(0.28 |
) |
|
$ |
(0.12 |
) |
|
$ |
(0.58 |
) |
|
$ |
(0.73 |
) |
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding — basic |
|
179,491,349 |
|
|
|
146,962,717 |
|
|
|
171,449,437 |
|
|
|
140,198,899 |
|
Weighted average common shares outstanding — diluted |
|
179,491,349 |
|
|
|
146,962,717 |
|
|
|
171,449,437 |
|
|
|
140,198,899 |
|
INDIE SEMICONDUCTOR, INC. PRELIMINARY CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands) (Unaudited) |
|||||||
|
September 30, 2024 |
|
December 31, 2023 |
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
96,897 |
|
|
$ |
151,678 |
|
Restricted cash |
|
10,300 |
|
|
|
— |
|
Accounts receivable, net |
|
56,163 |
|
|
|
63,602 |
|
Inventory, net |
|
52,157 |
|
|
|
33,141 |
|
Prepaid expenses and other current assets |
|
25,300 |
|
|
|
23,399 |
|
Total current assets |
|
240,817 |
|
|
|
271,820 |
|
Property and equipment, net |
|
34,677 |
|
|
|
26,966 |
|
Intangible assets, net |
|
222,659 |
|
|
|
208,134 |
|
Goodwill |
|
275,417 |
|
|
|
295,096 |
|
Operating lease right-of-use assets |
|
16,902 |
|
|
|
13,790 |
|
Other assets and deposits |
|
6,989 |
|
|
|
3,070 |
|
Total assets |
$ |
797,461 |
|
|
$ |
818,876 |
|
|
|
|
|
||||
Liabilities and stockholders' equity |
|
|
|
||||
Accounts payable |
$ |
26,021 |
|
|
$ |
18,405 |
|
Accrued payroll liabilities |
|
7,656 |
|
|
|
6,621 |
|
Contingent considerations |
|
21,548 |
|
|
|
83,903 |
|
Accrued expenses and other current liabilities |
|
20,700 |
|
|
|
21,411 |
|
Intangible asset contract liability |
|
5,875 |
|
|
|
4,429 |
|
Current debt obligations |
|
19,081 |
|
|
|
4,106 |
|
Total current liabilities |
|
100,881 |
|
|
|
138,875 |
|
Long-term debt, net of current portion |
|
157,537 |
|
|
|
156,735 |
|
Intangible asset contract liability, net of current portion |
|
13,688 |
|
|
|
— |
|
Deferred tax liabilities, non-current |
|
17,052 |
|
|
|
13,696 |
|
Operating lease liability, non-current |
|
15,541 |
|
|
|
10,850 |
|
Other long-term liabilities |
|
3,959 |
|
|
|
21,695 |
|
Total liabilities |
$ |
308,658 |
|
|
$ |
341,851 |
|
Commitments and contingencies |
|
|
|
||||
Stockholders' equity |
|
|
|
||||
Preferred stock |
$ |
— |
|
|
$ |
— |
|
Class A common stock |
|
18 |
|
|
|
16 |
|
Class V common stock |
|
2 |
|
|
|
2 |
|
Additional paid-in capital |
|
928,552 |
|
|
|
813,742 |
|
Accumulated deficit |
|
(461,462 |
) |
|
|
(361,441 |
) |
Accumulated other comprehensive loss |
|
(8,546 |
) |
|
|
(6,170 |
) |
indie's stockholders' equity |
|
458,564 |
|
|
|
446,149 |
|
Noncontrolling interest |
|
30,239 |
|
|
|
30,876 |
|
Total stockholders' equity |
|
488,803 |
|
|
|
477,025 |
|
Total liabilities and stockholders' equity |
$ |
797,461 |
|
|
$ |
818,876 |
|
INDIE SEMICONDUCTOR, INC.
RECONCILIATION OF PRELIMINARY NON-GAAP MEASURES TO GAAP
(Unaudited)
GAAP refers to financial information presented in accordance with
The reconciliations of our preliminary GAAP to non-GAAP measures are as follows (in thousands, except share and per share amounts):
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Computation of non-GAAP gross margin: |
|
|
|
|
|
|
|
||||||||
GAAP revenue |
$ |
53,965 |
|
|
$ |
60,476 |
|
|
$ |
158,673 |
|
|
$ |
153,036 |
|
GAAP cost of goods sold |
|
32,730 |
|
|
|
35,187 |
|
|
|
93,060 |
|
|
|
91,370 |
|
Acquisition-related expenses |
|
(475 |
) |
|
|
(438 |
) |
|
|
(694 |
) |
|
|
(5,984 |
) |
Amortization of intangible assets |
|
(5,129 |
) |
|
|
(4,643 |
) |
|
|
(12,591 |
) |
|
|
(10,929 |
) |
Inventory cost realignments |
|
— |
|
|
|
(1,365 |
) |
|
|
(145 |
) |
|
|
(1,365 |
) |
Share-based compensation |
|
(360 |
) |
|
|
(113 |
) |
|
|
(848 |
) |
|
|
(249 |
) |
Non-GAAP gross profit |
$ |
27,199 |
|
|
$ |
31,848 |
|
|
$ |
79,891 |
|
|
$ |
80,193 |
|
Non-GAAP gross margin |
|
50.4 |
% |
|
|
52.7 |
% |
|
|
50.3 |
% |
|
|
52.4 |
% |
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Computation of non-GAAP operating loss: |
|
|
|
|
|
|
|
||||||||
GAAP loss from operations |
$ |
(49,903 |
) |
|
$ |
(36,146 |
) |
|
$ |
(136,184 |
) |
|
$ |
(113,852 |
) |
Acquisition-related and other non-recurring professional expenses |
|
2,195 |
|
|
|
(1,685 |
) |
|
|
3,948 |
|
|
|
10,879 |
|
Amortization of intangible assets |
|
8,118 |
|
|
|
10,633 |
|
|
|
19,859 |
|
|
|
17,732 |
|
Inventory cost realignments |
|
— |
|
|
|
1,365 |
|
|
|
145 |
|
|
|
1,365 |
|
Share-based compensation |
|
18,455 |
|
|
|
12,793 |
|
|
|
56,739 |
|
|
|
37,711 |
|
Restructuring costs |
|
4,322 |
|
|
|
— |
|
|
|
4,322 |
|
|
|
— |
|
Non-GAAP operating loss |
$ |
(16,813 |
) |
|
$ |
(13,040 |
) |
|
$ |
(51,171 |
) |
|
$ |
(46,165 |
) |
|
Three Months Ended
|
|
Nine Months Ended
|
||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
Computation of non-GAAP net loss: |
|
|
|
|
|
|
|
Net loss |
|
|
|
|
|
|
|
Acquisition-related and other non-recurring professional expenses |
2,195 |
|
(1,685) |
|
3,948 |
|
10,879 |
Amortization of intangible assets |
8,118 |
|
10,633 |
|
19,859 |
|
17,732 |
Inventory cost realignments |
— |
|
1,365 |
|
145 |
|
1,365 |
Share-based compensation |
18,455 |
|
12,793 |
|
56,739 |
|
37,711 |
Restructuring costs |
4,322 |
|
— |
|
4,322 |
|
— |
(Gain) loss from change in fair value of warrants |
— |
|
(15,660) |
|
— |
|
6,626 |
(Gain) loss from change in fair value of contingent considerations and acquisition-related holdbacks |
4,523 |
|
(3,535) |
|
(28,167) |
|
(4,208) |
Other income (expense) |
(702) |
|
692 |
|
98 |
|
263 |
Non-cash interest expense |
260 |
|
222 |
|
775 |
|
721 |
Income tax benefit (provision) |
(315) |
|
650 |
|
(1,338) |
|
(2,714) |
Non-GAAP net loss |
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Computation of Non-GAAP EBITDA: |
|
|
|
|
|
|
|
||||||||
Net loss |
$ |
(54,595 |
) |
|
$ |
(18,677 |
) |
|
$ |
(109,818 |
) |
|
$ |
(114,206 |
) |
Interest income |
|
(994 |
) |
|
|
(1,858 |
) |
|
|
(3,379 |
) |
|
|
(6,147 |
) |
Interest expense |
|
2,180 |
|
|
|
2,242 |
|
|
|
6,420 |
|
|
|
6,534 |
|
(Gain) loss from change in fair value of warrants |
|
— |
|
|
|
(15,660 |
) |
|
|
— |
|
|
|
6,626 |
|
(Gain) loss from change in fair value of contingent considerations and acquisition-related holdbacks |
|
4,523 |
|
|
|
(3,535 |
) |
|
|
(28,167 |
) |
|
|
(4,208 |
) |
Other (income) expenses |
|
(702 |
) |
|
|
692 |
|
|
|
98 |
|
|
|
263 |
|
Income tax benefit (provision) |
|
(315 |
) |
|
|
650 |
|
|
|
(1,338 |
) |
|
|
(2,714 |
) |
Depreciation and amortization |
|
10,117 |
|
|
|
957 |
|
|
|
24,816 |
|
|
|
11,478 |
|
Stock-based compensation |
|
18,455 |
|
|
|
12,793 |
|
|
|
56,739 |
|
|
|
37,711 |
|
Inventory cost realignments |
|
— |
|
|
|
1,365 |
|
|
|
145 |
|
|
|
1,365 |
|
Acquisition-related and other non-recurring professional expenses |
|
2,195 |
|
|
|
(1,685 |
) |
|
|
3,948 |
|
|
|
10,879 |
|
Restructuring costs |
|
4,322 |
|
|
|
— |
|
|
|
4,322 |
|
|
|
— |
|
Non-GAAP EBITDA |
$ |
(14,814 |
) |
|
$ |
(22,716 |
) |
|
$ |
(46,214 |
) |
|
$ |
(52,419 |
) |
|
Three Months Ended September 30, 2024 |
||
Computation of non-GAAP share count: |
|
||
Weighted Average Class A common stock - Basic |
|
179,491,349 |
|
Weighted Average Class V common stock - Basic |
|
18,044,328 |
|
Escrow Shares |
|
1,725,000 |
|
TeraXion Unexercised Options |
|
631,942 |
|
Non-GAAP share count |
|
199,892,619 |
|
|
|
||
Non-GAAP net loss |
$ |
(17,739 |
) |
Non-GAAP net loss per share |
$ |
(0.09 |
) |
Discussion Regarding the Use of Non-GAAP Financial Measures
Our earnings release contains some or all of the following financial measures that have not been calculated in accordance with United States Generally Accepted Accounting Principles (“GAAP”): (i) non-GAAP gross profit and gross margin, (ii) non-GAAP operating loss, (iii) non-GAAP net loss, (iv) non-GAAP EBITDA, (v) non-GAAP share count, (vi) non-GAAP net loss and (vii) non-GAAP net loss per share. As set forth in the tables above, we derive such non-GAAP financial measures by excluding certain expenses and other items from the respective GAAP financial measure that is most directly comparable to each non-GAAP financial measure. Management may use these non-GAAP financial measures to, amongst other things, evaluate operating performance and compare it against past periods or against peer companies, make operating decisions, forecast for future periods and to determine payments under compensation programs. These non-GAAP financial measures provide management with additional means to understand and evaluate the operating results and trends in our ongoing business by eliminating certain expenses and other items that management believes might otherwise make comparisons of our ongoing business with prior periods and competitors more difficult, obscure trends in ongoing operations or improve management’s ability to forecast future periods.
We provide investors with non-GAAP gross profit and gross margin, non-GAAP operating loss, non-GAAP net loss and non-GAAP net loss per share because we believe it is important for investors to be able to closely monitor and understand changes in our ability to generate income from ongoing business operations. We believe these non-GAAP financial measures give investors an additional method to evaluate historical operating performance and identify trends, an additional means of evaluating period-over-period operating performance and a method to facilitate certain comparisons of our operating results to those of our peer companies. We further believe these non-GAAP financial measures allow investors to assess the overall financial performance of our ongoing operations by eliminating the impact of (i) acquisition-related and other non-recurring professional expenses (including acquisition-related or other non-recurring professional fees and legal expenses, deemed compensation expense and expenses recognized in relation to changes in contingent consideration obligations), (ii) amortization of acquisition-related intangibles and certain license rights, (iii) inventory cost realignments, (iv) gains or losses recognized in relation to changes in the fair value of warrants, contingent considerations issued by indie, acquisition-related holdbacks and unrealized gains or losses from currency hedging contracts, (v) non-cash interest expenses related to the amortization of debt discounts and issuance costs, (vi) share-based compensation, and (vii) income tax benefit (expenses). We believe that disclosing these non-GAAP financial measures contributes to enhanced financial reporting transparency and provides investors with added clarity about complex financial performance measures.
We do not report a GAAP measure of gross profit or gross margin because certain costs related to contract revenues are expensed as incurred and included in research and development expenses, and not in cost of sales, as it is not practicable for us to bifurcate these expenses. We derive and reconcile non-GAAP gross profit from the most relevant GAAP financial measures by subtracting GAAP cost of sales, adjusted for acquisition-related and other non-recurring professional expenses and share-based compensation, from GAAP revenue. We calculate non-GAAP operating loss by excluding from GAAP operating loss, any (i) acquisition-related and other non-recurring professional expenses (including acquisition-related or other non-recurring professional fees and legal expenses, deemed compensation expense and expenses recognized in relation to changes in contingent consideration obligations), (ii) amortization of acquisition-related intangibles and certain license rights, (iii) inventory cost realignments and (iv) share-based compensation. We calculate non-GAAP net loss by excluding from GAAP net income (loss), any (i) acquisition-related and other non-recurring professional expenses (including acquisition-related or non-recurring professional fees and legal expenses, deemed compensation expense and expenses recognized in relation to changes in contingent consideration obligations), (ii) amortization of acquisition-related intangibles and certain license rights, (iii) inventory cost realignments, (iv) gains or losses recognized in relation to changes in the fair value of warrants, contingent considerations issued by indie, acquisition-related holdbacks and unrealized gains or losses from currency hedging contracts, (v) non-cash interest expenses related to the amortization of debt discounts and issuance costs, (vi) share-based compensation, and (vii) income tax benefit (expenses). We calculate non-GAAP EBITDA by excluding from GAAP net income (loss), any (i) acquisition-related and other non-recurring professional expenses (including acquisition-related or non-recurring professional fees and legal expenses, deemed compensation expense and expenses recognized in relation to changes in contingent consideration obligations), (ii) amortization of acquisition-related intangibles and certain license rights, (iii) depreciation of fixed assets, (iv)inventory cost realignments, (v) gains or losses recognized in relation to changes in the fair value of warrants, contingent considerations issued by indie, acquisition-related holdbacks and unrealized gains or losses from currency hedging contracts, (vi) non-cash interest expenses related to the amortization of debt discounts and issuance costs, (vii) share-based compensation, and (viii) income tax benefit (expenses). We calculate non-GAAP share count by adding (i) weighted average Class A common stock, (ii) weighted average Class V common stock held by minority shareholders, which are exchangeable into Class A common stock, (iii) Escrow Shares and (iv) vested but unexercised options issued as part of the TeraXion acquisition. Non-GAAP net loss per share is calculated by dividing non-GAAP net loss by non-GAAP share count.
We exclude the items identified above from the respective non-GAAP financial measure referenced above for the reasons set forth with respect to each such excluded item below:
Acquisition-related and other non-recurring professional expenses - including such items as, when applicable, fair value charges incurred upon the sale of acquired inventory, accounting impact to the cost of goods sold due to one-time inventory costing realignment with a specific supplier, acquisition-related professional fees and legal expenses and other professional fees that are non-recurring in nature because they are not considered by management in making operating decisions and we believe that such expenses do not have a direct correlation to our future business operations and thereby including such charges do not necessarily reflect the performance of our ongoing operations for the period in which such charges or reversals are incurred.
Amortization expenses - related to the amortization expense for acquired intangible assets and certain license rights.
Depreciation expenses - related to the depreciation expenses for all property and equipment on hand.
Inventory cost realignments - related to the supplier allocation premiums introduced during COVID that is currently incorporated in our inventory cost but have since been eliminated going forward. The impact of this premium is deemed non-recurring and therefore not considered by management in its evaluation of the ongoing performance of the business.
Share-based compensation - related to the non-cash compensation expense associated with equity awards granted to our employees (including those granted in lieu of cash compensation) and employer tax related to employee stock transactions. These expenses are not considered by management in making operating decisions and such expenses do not have a direct correlation to our future business operations.
Restructuring costs - related to the one-time expenses the Company incurs to reorganize its operations, which is primarily related to workforce reduction, facilities and other purchase commitment charges.
Gain (loss) from change in fair values - because these adjustments (1) are not considered by management in making operating decisions, (2) are not directly controlled by management, (3) do not necessarily reflect the performance of our ongoing operations for the period in which such charges are recognized and (4) cannot make comparisons between peer company performance less reliable.
Non-cash interest expense - related to the amortization of debt discounts and issuance costs because (1) these expenses are not considered by management in making decision with respect to financing decisions, and (2) these generally reflect non-cash costs.
Income tax benefit (expense) - related to the estimated income tax benefit (expense) that does not result in a current period tax refunds (payments).
The non-GAAP financial measures presented should not be considered in isolation and are not an alternative for the respective GAAP financial measure that is most directly comparable to each such non-GAAP financial measure. Investors are cautioned against placing undue reliance on these non-GAAP financial measures and are urged to review and consider carefully the adjustments made by management to the most directly comparable GAAP financial measures to arrive at these non-GAAP financial measures. Non-GAAP financial measures may have limited value as analytical tools because they may exclude certain expenses that some investors consider important in evaluating our operating performance or ongoing business performance. Further, non-GAAP financial measures are likely to have limited value for purposes of drawing comparisons between companies as a result of different companies potentially calculating similarly titled non-GAAP financial measures in different ways because non-GAAP measures are not based on any comprehensive set of accounting rules or principles.
Beginning in Q4 2023, management added non-GAAP EBITDA, which removes non-recurring, irregular and one-time items that may distort EBITDA, to the current non-GAAP financial measures. We will calculate non-GAAP EBITDA by excluding from GAAP net income (loss), any (i) acquisition-related and other non-recurring expenses (including acquisition-related or other non-recurring professional fees and legal expenses, deemed compensation expense and expenses recognized in relation to changes in contingent consideration obligations), (ii) amortization of acquisition-related intangibles and certain license rights, (iii) depreciation of property, plant and equipment, (iv) inventory cost realignments, (v) gains or losses recognized in relation to changes in the fair value of warrants, contingent considerations issued by indie, acquisition-related holdbacks and unrealized gains or losses from currency hedging contracts, (vi) non-cash interest expenses related to the amortization of debt discounts and issuance costs, (vii) share-based compensation, and (viii) income tax benefit (expenses).
To the extent our disclosures contain forward-looking estimates of non-GAAP financial measures, such as our forward-looking outlook for non-GAAP EBITDA, these measures are provided to investors on a prospective basis for the same reasons (set forth above) we provide them to investors on a historical basis. We are generally unable to provide a reconciliation of our forward-looking non-GAAP measures because certain information needed to make a reasonable forward-looking estimate of such non-GAAP measures are difficult to predict and estimate and is often dependent on future events that may be uncertain or outside of our control and, therefore, is not available without unreasonable efforts. Such events may include unanticipated changes in our GAAP effective tax rate, unanticipated one-time charges related to asset impairments (fixed assets, inventory, intangibles, or goodwill), unanticipated acquisition-related and other non-recurring professional expenses, unanticipated settlements, gains, losses and impairments and other unanticipated items not reflective of ongoing operations. Our forward-looking estimates of both GAAP and non-GAAP measures of our financial performance may differ materially from our actual results and should not be relied upon as statements of fact.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241107737798/en/
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Source: indie Semiconductor
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