AEye Reports First Quarter 2024 Results
AEye (Nasdaq: LIDR) announced its Q1 2024 financial results, highlighting significant strategic progress and financial discipline. The company reported a GAAP net loss of $10.2 million or $1.61 per share, and a non-GAAP net loss of $7.2 million or $1.13 per share, both adjusted for a 1-for-30 reverse stock split effected in December 2023. Cash, cash equivalents, and marketable securities stood at $28.9 million as of March 31, 2024, extending their operational runway into 2025. AEye reduced its cash burn rate for the fourth consecutive quarter, distinguishing its capital-light model. Strategic milestones include the introduction of its 4Sight Flex product 'Apollo' and a new partnership with LITEON, which is expected to enhance both cost and performance. The company also initiated a key partnership to enter the Chinese market.
- Reduced cash burn rate for the fourth consecutive quarter.
- Cash and marketable securities totaled $28.9 million, extending operational runway into 2025.
- New partnership with LITEON expected to enhance cost and performance of products.
- Introduction of the 4Sight Flex product 'Apollo' passed key technical milestone.
- Strategic entry into the booming Chinese lidar market.
- GAAP net loss of $10.2 million or $1.61 per share.
- Non-GAAP net loss of $7.2 million or $1.13 per share.
- All financial data adjusted for a 1-for-30 reverse stock split, indicating potential previous financial strain.
Insights
AEye's latest financial results provide a multifaceted view of the company's current standing and future prospects. The fourth consecutive quarter of reducing cash burn is a significant milestone, demonstrating improved financial management and operational efficiency. With $28.9 million in cash and equivalents, their runway extends into 2025. This cash management, along with the strategic partnerships, notably with LITEON, indicates a potential steady path forward, albeit with clear challenges in achieving profitability as indicated by a significant GAAP net loss of $(10.2) million and non-GAAP net loss of $(7.2) million.
Investors should note the reverse stock split effected in December 2023, a typical move to boost the share price and maintain NASDAQ listing requirements. This maneuver, while sometimes signaling financial distress, also positions AEye better in the current market.
Short-term, the company's ability to sustain operations without needing additional fundraising is a positive sign. However, the long-term viability hinges on scaling product adoption and achieving cost reductions through partnerships like the one with LITEON. Investors should monitor upcoming quarters to see if these strategic initiatives convert into revenue growth and further cost efficiencies.
Entry into the booming Chinese lidar market could be a game-changer for AEye. China's commitment to smart infrastructure and autonomous driving technology presents a substantial market opportunity. The strategic partnership with LITEON aims to bolster product performance and cost efficiency, which is vital in a competitive landscape dominated by companies with significant R&D budgets.
Automotive OEMs' interest in AEye’s 4Sight Flex reference design product, Apollo, signifies that the product meets critical performance benchmarks. This could lead to future contracts and possibly, larger market share. However, competition remains fierce with established players like Velodyne and Luminar. Monitoring how AEye differentiates its offerings and executes this Chinese market entry will be important for investors.
The reduced cash burn rate is commendable, yet sustaining this trend while achieving market penetration and scaling production will be pivotal. Strategic execution in these areas will determine if AEye can ride out industry headwinds and leverage their technology's full potential.
AEye's advancements in lidar technology, particularly their 4Sight Flex reference design, Apollo, passing a significant technical performance milestone, stand out. This implies enhanced capabilities in adaptive sensing, important for applications in vehicle autonomy and advanced driver-assistance systems (ADAS). Their adaptive sensor-based operating system promises faster, more accurate and reliable information, which is a key selling point.
The partnership with LITEON could optimize production efficiency and product performance, potentially making AEye’s offering more competitive in terms of cost and functionality. However, the success of these initiatives heavily depends on actual adoption by automotive OEMs and the scalability of their technology to meet large-scale demand.
From a technical perspective, the progress in reducing cash burn indicates that AEye has likely optimized its R&D expenses, focusing on high-impact projects. While encouraging, the technology must continually evolve to stay ahead in a rapidly advancing field. Investors should keep an eye on product rollouts and client feedback to gauge the real-world applicability and market acceptance of AEye's innovations.
Kicked off key strategic partnership that will bring AEye’s lidar into the
Fourth consecutive quarter of cash burn reduction
Management Commentary
“AEye made incredible progress with our capital-light partnership model in the first quarter, including significantly expanding our strategic opportunities and opening the door to the booming lidar market in
Key Q1 2024 Financial Highlights
“We remain focused on cost discipline and have reduced our cash burn rate for the fourth consecutive quarter. With
In December 2023, the company effected a 1-for-30 reverse stock split and all the financial information disclosed has been adjusted to account for the revised share count numbers.
-
GAAP net loss was
$(10.2) million $(1.61) -
Non-GAAP net loss was
$(7.2) million $(1.13) -
Cash, cash equivalents, and marketable securities were
$28.9 million
Conference Call and Webcast Details
AEye management will hold a conference call today, May 14, 2024, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) to discuss these results. AEye CEO Matt Fisch and CFO Conor Tierney will host the call, followed by a question-and-answer session.
The webcast and accompanying slides will be accessible via the company’s website at https://investors.aeye.ai/.
Access is also available via:
Conference call: https://aeye.pub/3W7rZlg
Webcast: https://aeye.pub/3Uq2JW4
About AEye
AEye’s unique software-defined lidar solution enables advanced driver-assistance, vehicle autonomy, smart infrastructure, and logistics applications that save lives and propel the future of transportation and mobility. AEye’s 4Sight™ Intelligent Sensing Platform, with its adaptive sensor-based operating system, focuses on what matters most: delivering faster, more accurate, and reliable information. AEye’s 4Sight™ products, built on this platform, are ideal for dynamic applications which require precise measurement imaging to ensure safety and performance.
Non-GAAP Financial Measures
The non-GAAP measures provided in this press release should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with generally accepted accounting principles (GAAP) in
This press release includes non-GAAP financial measures, including:
- Non-GAAP net loss which is defined as GAAP net loss plus stock-based compensation, less change in fair value of convertible note and warrant liabilities, plus one-time termination benefits and other restructuring costs; and
- Adjusted EBITDA, defined as non-GAAP net loss plus depreciation and amortization expense, less interest expense and other, less interest income and other, plus provision for income tax expense.
Forward-Looking Statements
Certain statements included in this press release that are not historical facts are forward-looking statements within the meaning of the federal securities laws, including the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements are sometimes accompanied by words such as “believe,” “continue,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “predict,” “plan,” “may,” “should,” “will,” “would,” “potential,” “seem,” “seek,” “outlook,” and similar expressions that predict or indicate future events or trends, or that are not statements of historical matters. 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. Forward looking statements included in this press release include statements about AEye entering the lidar market in
Readers are cautioned not to put undue reliance on forward-looking statements; AEye 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. AEye gives no assurance that AEye will achieve any of its expectations.
AEYE, INC.
|
||||||
| March 31, 2024 | December 31, 2023 | |||||
| ASSETS | ||||||
| Current Assets: | ||||||
| Cash and cash equivalents | $ | 9,535 |
|
$ | 16,932 |
|
| Marketable securities | 19,374 |
|
19,591 |
|
||
| Accounts receivable, net | 67 |
|
131 |
|
||
| Inventories, net | 557 |
|
583 |
|
||
| Prepaid and other current assets | 1,745 |
|
2,517 |
|
||
| Total current assets | 31,278 |
|
39,754 |
|
||
| Right-of-use assets | 10,862 |
|
11,226 |
|
||
| Property and equipment, net | 339 |
|
281 |
|
||
| Restricted cash | 2,150 |
|
2,150 |
|
||
| Other noncurrent assets | 798 |
|
906 |
|
||
| Total assets | $ | 45,427 |
|
$ | 54,317 |
|
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
| Current Liabilities: | ||||||
| Accounts payable | $ | 3,751 |
|
$ | 3,442 |
|
| Accrued expenses and other current liabilities | 5,239 |
|
6,585 |
|
||
| Total current liabilities | 8,990 |
|
10,027 |
|
||
| Operating lease liabilities, noncurrent | 14,464 |
|
14,858 |
|
||
| Other noncurrent liabilities | 49 |
|
409 |
|
||
| Total liabilities | 23,503 |
|
25,294 |
|
||
| Stockholders' Equity: | ||||||
| Preferred stock | — |
|
— |
|
||
| Common stock | 1 |
|
1 |
|
||
| Additional paid-in capital | 369,781 |
|
366,647 |
|
||
| Accumulated other comprehensive (loss) income | (4 |
) |
10 |
|
||
| Accumulated deficit | (347,854 |
) |
(337,635 |
) |
||
| Total stockholders’ equity | 21,924 |
|
29,023 |
|
||
| Total liabilities and stockholders’ equity | $ | 45,427 |
|
$ | 54,317 |
|
AEYE, INC.
|
||||||
| Three months ended March 31, | ||||||
2024 |
|
2023 |
|
|||
| Revenue: | ||||||
| Prototype sales | $ | 20 |
|
$ | 125 |
|
| Development contracts | — |
|
511 |
|
||
| Total revenue | 20 |
|
636 |
|
||
| Cost of revenue | 263 |
|
2,261 |
|
||
| Gross loss | (243 |
) |
(1,625 |
) |
||
| Operating expenses: | ||||||
| Research and development | 4,532 |
|
9,442 |
|
||
| Sales and marketing | 341 |
|
6,268 |
|
||
| General and administrative | 5,615 |
|
8,554 |
|
||
| Total operating expenses | 10,488 |
|
24,264 |
|
||
| Loss from operations | (10,731 |
) |
(25,889 |
) |
||
| Other income (expense): | ||||||
| Change in fair value of convertible note and warrant liabilities | 2 |
|
(810 |
) |
||
| Interest income and other | 195 |
|
277 |
|
||
| Interest expense and other | 317 |
|
176 |
|
||
| Total other income (expense), net | 514 |
|
(357 |
) |
||
| Loss before income tax expense | (10,217 |
) |
(26,246 |
) |
||
| Provision for income tax expense | 2 |
|
19 |
|
||
| Net loss | $ | (10,219 |
) |
$ | (26,265 |
) |
| Per Share Data | ||||||
| Net loss per common share (basic and diluted) | $ | (1.61 |
) |
$ | (4.75 |
) |
| Weighted average common shares outstanding (basic and diluted) | 6,352,835 |
|
5,528,862 |
|
||
AEYE, INC.
|
||||||
| Three months ended March 31, | ||||||
2024 |
|
2023 |
|
|||
| Cash flows from operating activities: | ||||||
| Net loss | $ | (10,219 |
) |
$ | (26,265 |
) |
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||
| Depreciation and amortization | 29 |
|
330 |
|
||
| Gain on sale of property and equipment, net | — |
|
(53 |
) |
||
| Noncash lease expense relating to operating lease right-of-use assets | 364 |
|
350 |
|
||
| Inventory write-downs, net of scrapped inventory | 19 |
|
208 |
|
||
| Change in fair value of convertible note and warrant liabilities | (2 |
) |
810 |
|
||
| Stock-based compensation | 3,014 |
|
6,513 |
|
||
| Amortization of premiums and accretion of discounts on marketable securities, net of change in accrued interest | (252 |
) |
33 |
|
||
| Expected credit losses | 14 |
|
— |
|
||
| Changes in operating assets and liabilities: | ||||||
| Accounts receivable, net | 50 |
|
494 |
|
||
| Inventories, current and noncurrent, net | 18 |
|
(386 |
) |
||
| Prepaid and other current assets | 772 |
|
2,722 |
|
||
| Other noncurrent assets | 97 |
|
71 |
|
||
| Accounts payable | 309 |
|
(985 |
) |
||
| Accrued expenses and other current liabilities | (1,343 |
) |
(134 |
) |
||
| Operating lease liabilities | (397 |
) |
(392 |
) |
||
| Other noncurrent liabilities | (358 |
) |
— |
|
||
| Contract liabilities | — |
|
(511 |
) |
||
| Net cash used in operating activities | (7,885 |
) |
(17,195 |
) |
||
| Cash flows from investing activities: | ||||||
| Purchases of property and equipment | (87 |
) |
(599 |
) |
||
| Proceeds from sale of property and equipment | — |
|
76 |
|
||
| Purchases of marketable securities | (6,045 |
) |
— |
|
||
| Proceeds from redemptions and maturities of marketable securities | 6,500 |
|
22,000 |
|
||
| Net cash provided by investing activities | 368 |
|
21,477 |
|
||
| Cash flows from financing activities: | ||||||
| Proceeds from exercise of stock options | — |
|
323 |
|
||
| Payments for convertible note redemptions | — |
|
(2,300 |
) |
||
| Taxes paid related to the net share settlement of equity awards | (45 |
) |
(868 |
) |
||
| Proceeds from issuance of common stock under the Common Stock Purchase Agreement | 165 |
|
— |
|
||
| Net cash provided by (used in) financing activities | 120 |
|
(2,845 |
) |
||
| Net (decrease) increase in cash, cash equivalents and restricted cash | (7,397 |
) |
1,437 |
|
||
| Cash, cash equivalents and restricted cash at beginning of period | 19,082 |
|
21,214 |
|
||
| Cash, cash equivalents and restricted cash at end of period | $ | 11,685 |
|
$ | 22,651 |
|
AEYE, INC.
|
||||||
| Three months ended March 31, | ||||||
2024 |
|
2023 |
|
|||
| GAAP net loss | $ | (10,219 |
) |
$ | (26,265 |
) |
| Non-GAAP adjustments: | ||||||
| Stock-based compensation | 3,014 |
|
6,513 |
|
||
| Change in fair value of convertible note and warrant liabilities | (2 |
) |
810 |
|
||
| One-time termination benefits and other restructuring costs | — |
|
1,253 |
|
||
| Non-GAAP net loss | $ | (7,207 |
) |
$ | (17,689 |
) |
| Depreciation and amortization expense | 29 |
|
330 |
|
||
| Interest income and other | (195 |
) |
(277 |
) |
||
| Interest expense and other | (317 |
) |
(176 |
) |
||
| Provision for income tax expense | 2 |
|
19 |
|
||
| Adjusted EBITDA | $ | (7,688 |
) |
$ | (17,793 |
) |
| GAAP net loss per share attributable to common stockholders: | ||||||
| Basic and diluted | $ | (1.61 |
) |
$ | (4.75 |
) |
| Non-GAAP net loss per share attributable to common stockholders: | ||||||
| Basic and diluted | $ | (1.13 |
) |
$ | (3.20 |
) |
| Shares used in computing GAAP net loss per share attributable to common stockholders: | ||||||
| Basic and diluted | 6,352,835 |
|
5,528,862 |
|
||
| Shares used in computing Non-GAAP net loss per share attributable to common stockholders: | ||||||
| Basic and diluted | 6,352,835 |
|
5,528,862 |
|
||
View source version on businesswire.com: https://www.businesswire.com/news/home/20240514436358/en/
Leigh Bannister
AEye, Inc.
Lbannister@aeye.ai
925-400-4366
Evan Niu, CFA
Financial Profiles, Inc.
eniu@finprofiles.com
310-622-8243
Source: AEye, Inc.
FAQ
What were AEye's Q1 2024 earnings results?
How much cash did AEye have at the end of Q1 2024?
What strategic milestones did AEye achieve in Q1 2024?
What is the significance of AEye's partnership with LITEON?
How did AEye's reverse stock split affect its financial reporting?
What is AEye's market entry strategy for China?
