Innoviz Reports Fourth Quarter and Full Year 2023 Results, Exceeding Revenue Guidance
- Innoviz Technologies exceeded revenue guidance in 2023 with approximately $21 million, reflecting a remarkable 246% year-over-year growth.
- Q4 2023 revenues of approximately $15 million surpassed guidance, demonstrating an impressive 328% growth quarter-over-quarter and an exceptional 846% growth year-over-year.
- The company achieved strong revenue growth in 2023 alongside disciplined cost management, resulting in the lowest quarterly cash burn of $14.5 million since going public, with a year-end cash balance of around $150 million.
- Innoviz provided strategic updates on collaborations with BMW and Volkswagen, showcasing the launch of BMW i7 with InnovizOne and the Volkswagen ID. Buzz program at CES.
- Financially, operating expenses for 2023 decreased by 3% compared to the previous year, while revenues soared by 246%, driven by a mix of NRE services, production units, and sample shipments.
- The company outlined ambitious 2024 targets, aiming to secure 2-3 additional customer programs and $20-70 million in new NRE bookings, with Q1 2024 revenues expected to range between $5-6 million.
- Innoviz emphasized a shift towards quarterly revenue targets for better predictability and accuracy in revenue projections, considering various influencing factors throughout the year.
- Investors were invited to a web conference to discuss commercial updates, financial results, and 2024 targets, showcasing a commitment to transparency and stakeholder engagement.
- None.
Insights
The reported financial results from Innoviz Technologies Ltd. demonstrate a robust year-over-year revenue growth of 246% for the full year and an even more striking 846% growth for Q4 year-over-year. This performance is particularly notable as it surpasses the company's own guidance, indicating a strong market demand for their LiDAR sensors and perception software. The company's strategic focus on cost management has also resulted in a record low quarterly cash burn since its public debut, an important factor for investor confidence.
From a financial perspective, the liquidity position with $150 million in cash and equivalents provides a solid runway for future operations and investments. However, the relatively high share-based compensation, which has increased year-over-year, could be a point of concern for shareholders due to potential dilution effects. Investors will be interested in how the new strategic alignments and focus on the InnovizTwo sensor will impact future R&D expenses and whether the anticipated reduction in cash outlays will materialize.
Given the competitive nature of the LiDAR market, Innoviz's announcement of securing additional customer programs in 2024 and the unveiling of the Volkswagen ID. Buzz program at CES are significant. The mention of a 'winner takes most' industry suggests that Innoviz is positioning itself as a leading player in the LiDAR space, which could have a profound impact on its market share and valuation. The collaboration with Mobileye and the ongoing RFQ progress indicate a strategic alignment with major players in the autonomous vehicle sector.
The new slim profile design for InnovizTwo caters to the evolving needs of LiDAR integration into vehicles, potentially opening up new market opportunities. The company's focus on quarterly revenue targets instead of full-year guidance reflects a more adaptive and responsive approach in a rapidly changing market, which may be well-received by investors who are looking for agility and precision in forecasting.
The integration of Innoviz's LiDAR technology in models such as the BMW i7 and the Volkswagen ID. Buzz is a testament to the company's technological capabilities and its alignment with the automotive industry's shift towards higher levels of vehicle autonomy. The Level 3 and Level 4 autonomous programs mentioned are indicative of advanced driver-assistance systems (ADAS) that require high-performance sensors like LiDAR for navigation and safety. As the industry trends toward electrification and autonomy, Innoviz's partnerships with leading OEMs such as BMW and Volkswagen could significantly bolster its position in the market.
The strategic realignment to concentrate future investments on the InnovizTwo sensor and software platform is a forward-looking move that suggests a focus on next-generation technology. This may enhance the company's competitive edge as the industry moves towards integrating ADAS features in a wider range of vehicles, including light commercial vehicles like the ID. Buzz, which are expected to play a crucial role in the future mobility ecosystem.
- Full year 2023 revenues of approximately
$21M 246% - Q4 2023 revenues of approximately
$15M 328% growth quarter-over-quarter and846% growth year-over-year - Strong revenue growth coupled with disciplined cost management led to the lowest quarterly cash burn since becoming a public company, finishing the year with approximately
$150 million
"I am pleased with our strong finish to 2023, delivering revenues that were above the high end of both our quarterly and annual guidance range," said Innoviz CEO, Omer Keilaf. "The combination of strong revenues and disciplined cost management led to an impressive cash performance with our quarterly cash burn at just
Keilaf added, "So far in 2024 we have shared exciting news on the customer front, unveiling our second Volkswagen program with the ID. Buzz at CES, and today's news that we are working on an additional InnovizOne deployment with BMW on the 5 Series in
Commercial and Strategic Updates
- BMW i7 with InnovizOne available for sale now with deliveries planned March 2024 – The BMW i7 with the InnovizOne powered Personal Pilot L3 package is currently available for sale in
Germany with deliveries expected to begin in March 2024. - Developing InnovizOne for new vehicle and geography with BMW – Innoviz has begun supporting software development specific to the Chinese market for a new deployment of the InnovizOne on BMW 5 Series vehicles in
China working towards a commercial launch at a future date. - Unveiled Volkswagen ID. Buzz light commercial vehicle program at CES – Innoviz unveiled the new ID. Buzz light commercial vehicle program at CES in January, marking the company's second program with the Volkswagen Group. Volumes from this program are incremental to the original series production award announced in 2022. The ID. Buzz is a light commercial vehicle aimed at the mobility market and will be a Level 4 program with multiple LiDAR per vehicle. A test fleet of vehicles is already on the road in
Austin, Texas , and we expect the program will become increasingly visible as it progresses towards a planned 2026 commercial launch. - Collaborating with Mobileye on the Volkswagen ID. Buzz – Innoviz and Mobileye both displayed the new ID. Buzz light commercial vehicle program at CES, with both companies working together on the Level 4 technology. Innoviz is supplying the InnovizTwo long-range LiDAR, while Mobileye is working with Volkswagen as the autonomy platform partner, integrating the broader sensor suite and software stack. Innoviz views Mobileye as a strong partner and hopes to find additional opportunities to work with them on new platforms.
- Working towards additional growth opportunities with Volkswagen Group – Innoviz continues to work to secure additional vehicles and platforms within the Volkswagen Group, in addition to its initial 2022 series production award and the recently announced ID. Buzz program.
- Customer decisions expected for late 2023 continue to progress in 2024 – Several of the Company's RFQs that were in the later stages and were expected to be completed by the end of 2023 continue to make progress, despite decision timelines having been pushed into 2024.
- Strategic realignment – In late January 2024, Innoviz announced a strategic realignment that refocused the cost structure of the InnovizOne program after its transition into series production. The Company also announced a concentration of future investments on the InnovizTwo sensor and software platform and used the realignment as an opportunity to integrate its hardware and software development units into a combined R&D department. These realignment actions are expected to be completed during the first quarter of 2024 and to reduce planned cash outlays by
$22 -24 million - New slim profile design for InnovizTwo – Innoviz unveiled a new, slimmer profile design for the InnovizTwo that can reduce the height of the sensor from 45mm to as small as 25mm. The new design was created for a pipeline customer and can be particularly useful for customers exploring behind the windshield and rooftop LiDAR deployments.
Fourth Quarter 2023 Financial Results
Revenues in Q4 2023 were
Operating expenses in Q4 2023 were
Full Year 2023 Financial Results
Revenues in 2023 were
Operating expenses in 2023 were
Liquidity as of December 31, 2023 consisted of approximately
2024 Financial and Operational Targets
The Company is establishing initial targets for Q1 2024 and FY 2024:
- Secure 2-3 additional customer programs in 2024
- Secure
$20 -70 million - Q1 2024 revenues are expected to be in the range of
$5 -6 million-494% YoY)
After initially guiding 2023 revenue targets too cautiously, Innoviz is shifting to quarterly revenue targets. There are many factors that can influence full year numbers that can be difficult to predict this early in the year, and the Company believes quarterly guidance will ultimately be a more prudent and accurate way to approach revenue targets at this point in the Company's growth curve.
Conference Call
Innoviz management will hold a web conference today, February 28, 2024, at 9:00 a.m. Eastern time (6:00 a.m. Pacific time) to discuss commercial and strategic updates, financial results for the fourth quarter and full year 2023 and 2024 financial and operational 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
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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 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. "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 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
INNOVIZ TECHNOLOGIES LTD. AND ITS SUBSIDIARIES | ||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
(Unaudited) | ||||||||
Year Ended December 31, | Three Months Ended December 31, | |||||||
2023 | 2022 | 2023 | 2022 | |||||
Revenues | $ | 20,876 | $ | 6,026 | $ | 14,917 | $ | 1,577 |
Cost of revenues | (32,490) | (14,790) | (17,197) | (4,113) | ||||
Gross loss | (11,614) | (8,764) | (2,280) | (2,536) | ||||
Operating expenses: | ||||||||
Research and development | 92,676 | 95,107 | 22,107 | 26,245 | ||||
Sales and marketing | 8,777 | 10,300 | 1,999 | 2,425 | ||||
General and administrative | 19,535 | 19,178 | 5,412 | 4,837 | ||||
Total operating expenses | 120,988 | 124,585 | 29,518 | 33,507 | ||||
Operating loss | (132,602) | (133,349) | (31,798) | (36,043) | ||||
Financial income, net | 9,790 | 6,802 | 1,469 | 1,950 | ||||
Loss before taxes on income | (122,812) | (126,547) | (30,329) | (34,093) | ||||
Taxes on income | (642) | (325) | (122) | (228) | ||||
Net loss | $ | (123,454) | $ | (126,872) | $ | (30,451) | $ | (34,321) |
Basic and diluted net loss per ordinary share | $ | (0.84) | $ | (0.94) | $ | (0.18) | $ | (0.25) |
Weighted average number of ordinary shares used in computing basic and diluted net loss per ordinary share |
147,480,521 | 135,224,312 |
165,121,766 |
136,059,472 | ||||
INNOVIZ TECHNOLOGIES LTD. AND ITS SUBSIDIARIES | |||||
CONSOLIDATED BALANCE SHEETS | |||||
(Unaudited) | |||||
December 31, | December 31, | ||||
2023 | 2022 | ||||
ASSETS | |||||
CURRENT ASSETS: | |||||
Cash and cash equivalents | $ | 26,283 | $ | 55,718 | |
Short term restricted cash | 53 | 236 | |||
Bank deposits | 105,750 | 80,684 | |||
Marketable securities | 13,335 | 41,681 | |||
Trade receivables, net | 7,395 | 1,762 | |||
Inventory | 1,868 | 4,236 | |||
Prepaid expenses and other current assets | 5,774 | 3,236 | |||
Total current assets | 160,458 | 187,553 | |||
LONG-TERM ASSETS: | |||||
Marketable securities | 4,813 | 7,840 | |||
Restricted deposits | 2,623 | 2,543 | |||
Property and equipment, net | 25,770 | 30,489 | |||
Operating lease right-of-use assets, net | 25,486 | 26,927 | |||
Other long-term assets | 84 | 81 | |||
Total long-term assets | 58,776 | 67,880 | |||
Total assets | $ | 219,234 | $ | 255,433 | |
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||
CURRENT LIABILITIES: | |||||
Trade payables | $ | 8,036 | $ | 8,367 | |
Deferred revenues | 6,949 | 4,082 | |||
Employees and payroll accruals | 9,468 | 8,693 | |||
Accrued expenses and other current liabilities | 8,743 | 7,572 | |||
Operating lease liabilities | 4,034 | 3,720 | |||
Total current liabilities | 37,230 | 32,434 | |||
LONG-TERM LIABILITIES: | |||||
Deferred revenues | - | 61 | |||
Operating lease liabilities | 28,475 | 30,201 | |||
Warrants liability | 240 | 720 | |||
Total long-term liabilities | 28,715 | 30,982 | |||
SHAREHOLDERS' EQUITY: | |||||
Ordinary Shares of no-par value | - | - | |||
Additional paid-in capital | 788,577 | 703,851 | |||
Accumulated deficit | (635,288) | (511,834) | |||
Total shareholders' equity | 153,289 | 192,017 | |||
Total liabilities and shareholders' equity | $ | 219,234 | $ | 255,433 | |
INNOVIZ TECHNOLOGIES LTD. AND ITS SUBSIDIARIES | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Unaudited) | ||||||||
Year Ended | Three Months Ended | |||||||
2023 | 2022 | 2023 | 2022 | |||||
Cash flows from operating activities: | ||||||||
Net loss | $ | (123,454) | $ | (126,872) | $ | (30,451) | $ | (34,321) |
Adjustments required to reconcile net loss to net cash used in operating activities: | ||||||||
Depreciation and amortization | 9,192 | 7,472 | 3,947 | 1,543 | ||||
Remeasurement of warrants liability | (472) | (890) | (128) | (555) | ||||
Change in accrued interest on bank deposits | (1,051) | (705) | (709) | (138) | ||||
Change in marketable securities | (409) | 375 | - | (469) | ||||
Share-based compensation | 22,320 | 19,449 | 6,494 | 5,352 | ||||
Capital gain, net | - | (44) | - | (44) | ||||
Foreign exchange loss (gain), net | (470) | 1,233 | (917) | (188) | ||||
Change in prepaid expenses and other assets | (782) | (377) | (341) | (88) | ||||
Change in trade receivables, net | (5,633) | (1,249) | (2,523) | (984) | ||||
Change in inventory | 2,368 | 20 | 2,970 | 472 | ||||
Changes in operating lease assets and liabilities, net | 29 | 6,530 | 1,592 | 1,047 | ||||
Change in trade payables | 424 | 1,082 | 368 | 1,463 | ||||
Change in accrued expenses and other liabilities | 2,578 | 607 | 3,122 | 324 | ||||
Change in employees and payroll accruals | 333 | (304) | 1,156 | (1,186) | ||||
Change in deferred revenues | 1,974 | 262 | 1,400 | (72) | ||||
Net cash used in operating activities | (93,053) | (93,411) | (14,020) | (27,844) | ||||
Cash flows from investing activities: | ||||||||
Purchase of property and equipment | (6,579) | (22,567) | (481) | (4,828) | ||||
Proceeds from sales of property and equipment | - | 54 | - | 54 | ||||
Investment in bank deposits | (165,600) | (79,500) | (23,000) | - | ||||
Withdrawal of bank deposits | 141,500 | 230,000 | 29,000 | 55,000 | ||||
Investment in restricted deposits | (40) | (2,633) | - | - | ||||
Investment in marketable securities | (51,678) | (30,103) | (16,885) | (8,508) | ||||
Proceeds from sales and maturities of marketable securities | 83,461 | 30,103 | 21,586 | 8,508 | ||||
Net cash provided by investing activities | 1,064 | 125,354 | 10,220 | 50,226 | ||||
Cash flows from financing activities: | ||||||||
Issuance of ordinary shares, net of issuance cost | 61,400 | - | (534) | - | ||||
Proceeds from exercise of options | 456 | 609 | 50 | 102 | ||||
Net cash provided by (used in) financing activities | 61,856 | 609 | (484) | 102 | ||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 515 |
(1,139) |
787 |
154 | ||||
Increase (decrease) in cash, cash equivalents and restricted cash | (29,618) | 31,413 | (3,497) | 22,638 | ||||
Cash, cash equivalents and restricted cash at the beginning of the period | 55,954 | 24,541 | 29,833 | 33,316 | ||||
Cash, cash equivalents and restricted cash at the end of the period | $ | 26,336 | $ | 55,954 |
$ | 26,336 |
$ | 55,954 |
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SOURCE Innoviz Technologies
FAQ
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