Innoviz Bolsters Financial Position with Approx. $80M through Multi-Year NRE Payment Plan with Key Customers

Rhea-AI Summary

Innoviz Technologies (NASDAQ: INVZ), a Tier-1 supplier of automotive LiDAR sensors, has announced a multi-year Non-Recurring Engineering (NRE) services payment plan worth approximately $80 million with key existing customers. The payments are scheduled between 2025-2027, with over $40 million expected in 2025.

These NRE payments will be additional to revenues from ongoing LiDAR product sales and new programs. The company views this as strategic funding for operations and preparation for customer production starts in 2026. The financial details for 2024 and 2025 guidance will be disclosed during the Q4 2024 earnings call.

Positive

• Secured approximately $80M in NRE payments from key customers
• Over $40M expected in cash payments during 2025
• Additional revenue expected from ongoing LiDAR product sales
• Strategic funding secured for production starts in 2026

Negative

• NRE payments are spread over multiple years (2025-2027)
• Actual payment timeline and amounts beyond 2025 not specified

Insights

Financial Analyst

The secured $80M NRE payment plan represents a important financial milestone for Innoviz, strengthening its runway through 2025-2027. With $40M expected in 2025, this provides significant operational cushion for a company with a $193M market cap. The structured payment approach demonstrates strong customer commitment and validates Innoviz's technology roadmap. Most importantly, these NRE payments are supplementary to product revenues, creating a dual revenue stream that enhances financial stability. The timing aligns strategically with the 2026 production targets, providing capital during the critical scaling phase. For a LiDAR company in the current market, securing substantial NRE commitments from OEMs is particularly noteworthy, as it reduces cash burn risk and indicates customer confidence in Innoviz's ability to deliver production-ready solutions. This deal structure suggests the customers are likely major automotive OEMs with significant purchasing power, as they're willing to front development costs. The agreement effectively functions as interest-free working capital, allowing Innoviz to focus on execution rather than fundraising.

Automotive Technology Expert

The NRE commitment signals strong validation of Innoviz's LiDAR technology in the competitive automotive sensor market. Major OEMs typically only commit substantial NRE funding when they've thoroughly vetted the technology and see it as important to their autonomous vehicle roadmap. The multi-year payment structure suggests these are complex integration projects, likely involving customization of Innoviz's LiDAR for specific vehicle platforms targeting 2026 production. The timing of payments through 2027 aligns with typical automotive development cycles, indicating these are serious production programs rather than just pilot projects. This positions Innoviz favorably against competitors, as secured NRE funding often leads to volume production contracts. The emphasis on "key existing customers" suggests these are follow-on orders from established relationships, which is important as it demonstrates successful progression from initial testing to production intent. The automotive industry's shift toward LiDAR adoption is accelerating and this agreement reinforces Innoviz's position as a Tier-1 supplier in this growing market.

• Expects to receive NREs from existing programs in 2025-2027, with cash payment of more than $40 million expected in 2025
  
• Ongoing sales of LiDAR products and new programs expected to generate additional revenues throughout 2025

TEL AVIV, Israel, Dec. 23, 2024 /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 announced a multi-year NRE (Non-Recurring Engineering services) payment plan of approx. $80 million with key existing customers which is expected to bolster the Company's financial position. NREs are expected to be paid between 2025 and 2027, of which over $40 million are expected to be paid in 2025 with further amounts expected in 2026 and 2027. These payments will be incremental to revenues generated from ongoing sales of LiDAR products based on existing and new orders coming from new programs.

"We are excited to further bolster our position as a key partner for OEMs in the autonomous vehicle industry," said Omer Keilaf, CEO and Founder of Innoviz. "NREs are essential to strategically funding our operations and reaching the start of production for several customers in 2026, and with this plan with our key customers we are poised to start 2025 from a position of financial strength. We believe it is clear that our customers trust our ability to support the next generation of autonomous vehicles and meet their demands through Innoviz's superior technology and ability to bring LiDARs to production. The expected NRE payments announced today, taken together with customer programs entering production, strengthen the financial foundation of the Company and position Innoviz to deliver significant value in the years to come."

Innoviz will provide information regarding its full year 2024 financial performance and 2025 financial guidance on its fourth quarter 2024 earnings call.

About Innoviz

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.

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Media Contact
Media@innoviz-tech.com

Investor Contact
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, expected NRE payments and Innoviz's projected future results, including revenue and NREs. 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. "NRE (Non-recurring Engineering)" 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). NREs may be paid based on milestones over the development phase of the project which may take a few years.

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. Many factors could cause actual future events 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 ability to identify and realize additional opportunities, potential changes and developments in the highly competitive LiDAR technology and related industries, actual orders or actual payments, 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 SEC on March 12, 2024 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. There can be no assurances that the Company will enter into definitive agreements, orders or receive payments with respect to the NRE payment plan referenced in this announcement. 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.

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SOURCE Innoviz Technologies

FAQ

How much NRE funding has Innoviz (INVZ) secured from customers?

Innoviz has secured approximately $80 million in Non-Recurring Engineering (NRE) payments from key customers, to be paid between 2025 and 2027.

When will Innoviz (INVZ) receive the first major NRE payment?

Innoviz expects to receive over $40 million in NRE payments during 2025, with additional payments following in 2026 and 2027.

What is the purpose of the NRE payments for Innoviz (INVZ)?

The NRE payments are intended to strategically fund operations and support the start of production for several customers in 2026.

Will the NRE payments be Innoviz's (INVZ) only revenue source?

No, the NRE payments will be incremental to revenues generated from ongoing sales of LiDAR products and new program orders.

When will Innoviz (INVZ) provide 2025 financial guidance?

Innoviz will provide 2025 financial guidance during its fourth quarter 2024 earnings call.