Mobileye Releases Second Quarter 2024 Results, Updates Guidance and Provides Business Overview
Mobileye Global Inc. (MBLY) released Q2 2024 results, showing a 3% year-over-year revenue decrease to $439 million. However, revenue increased 84% from Q1 2024 due to reduced excess inventory consumption. The company reported a 110% increase in systems shipped compared to Q1 2024, leading to improved Operating Loss and Adjusted Operating Profit. Diluted EPS (GAAP) was $(0.11), while Adjusted Diluted EPS (Non-GAAP) was $0.09. Mobileye reduced expectations for H2 2024 volume and revenue, primarily due to China-related macro factors. The company remains optimistic about medium-term growth, citing progress in SuperVision/Chauffeur programs and an expanded relationship with Zeekr and Geely Group. Mobileye also noted emerging traction for high-ASP products in mid-priced, high-volume segments.
Mobileye Global Inc. (MBLY) ha pubblicato i risultati del secondo trimestre 2024, evidenziando una diminuzione del fatturato del 3% rispetto all’anno precedente, attestandosi a $439 milioni. Tuttavia, il fatturato è aumentato dell'84% rispetto al primo trimestre 2024 grazie a una riduzione del consumo di scorte in eccesso. L’azienda ha riportato un aumento del 110% nelle spedizioni di sistemi rispetto al primo trimestre 2024, portando a un miglioramento della perdita operativa e dell'utile operativo rettificato. L'EPS diluito (GAAP) è stato di $(0.11), mentre l'EPS diluito rettificato (Non-GAAP) è stato di $0.09. Mobileye ha ridotto le aspettative per i volumi e il fatturato del secondo semestre 2024, principalmente a causa di fattori macroeconomici legati alla Cina. Tuttavia, l'azienda rimane ottimista riguardo alla crescita a medio termine, citando i progressi nei programmi SuperVision/Chauffeur e un rapporto ampliato con Zeekr e Geely Group. Mobileye ha inoltre notato un crescente interesse per i prodotti ad alto ASP nei segmenti di prezzo medio e ad alto volume.
Mobileye Global Inc. (MBLY) publicó los resultados del segundo trimestre de 2024, mostrando una disminución del 3% en los ingresos en comparación con el año anterior, alcanzando $439 millones. Sin embargo, los ingresos aumentaron un 84% desde el primer trimestre de 2024 debido a una reducción en el consumo de inventario excedente. La compañía reportó un aumento del 110% en los sistemas enviados en comparación con el primer trimestre de 2024, lo que llevó a una mejora en la pérdida operativa y en el beneficio operativo ajustado. El EPS diluido (GAAP) fue de $(0.11), mientras que el EPS diluido ajustado (Non-GAAP) fue de $0.09. Mobileye redujo sus expectativas de volumen y ingresos para el segundo semestre de 2024, principalmente debido a factores macroeconómicos relacionados con China. Sin embargo, la compañía se mantiene optimista sobre el crecimiento a medio plazo, citando avances en los programas SuperVision/Chauffeur y una relación ampliada con Zeekr y Geely Group. Mobileye también señaló un creciente interés por los productos de alto ASP en segmentos de precio medio y volumen alto.
Mobileye Global Inc. (MBLY)은 2024년 2분기 실적을 발표하며 지난해 대비 3% 감소한 $439 백만의 매출을 기록했습니다. 그러나 과잉 재고 소비 감소로 인해 2024년 1분기 대비 84% 증가했습니다. 이 회사는 2024년 1분기와 비교하여 시스템 출하량이 110% 증가했다고 보고하였으며, 이는 운영 손실 및 조정된 운영 이익 개선으로 이어졌습니다. 희석된 EPS (GAAP)는 $(0.11)였고, 조정된 희석 EPS (Non-GAAP)는 $0.09였습니다. Mobileye는 중국 관련 거시적 요인으로 인해 2024년 하반기 물량과 매출에 대한 기대치를 낮췄습니다. 그럼에도 불구하고 회사는 SuperVision/Chauffeur 프로그램의 진행 상황과 Zeekr 및 Geely Group과의 관계 확대를 언급하며 중기 성장에 대해 낙관적인 입장을 유지하고 있습니다. Mobileye는 또한 중가, 고량 분야에서 고 ASP 제품에 대한 관심이 커지고 있다고 언급했습니다.
Mobileye Global Inc. (MBLY) a publié ses résultats du deuxième trimestre 2024, montrant une baisse de 3% de son chiffre d'affaires par rapport à l'année précédente, atteignant $439 millions. Cependant, le chiffre d'affaires a augmenté de 84% par rapport au premier trimestre 2024 grâce à une réduction de la consommation des stocks excédentaires. L'entreprise a rapporté une augmentation de 110% des systèmes expédiés par rapport au premier trimestre 2024, ce qui a conduit à une amélioration de la perte d'exploitation et du bénéfice d'exploitation ajusté. Le BPA dilué (GAAP) était de $(0.11), tandis que le BPA dilué ajusté (Non-GAAP) s'élevait à $0.09. Mobileye a réduit ses attentes pour le volume et le chiffre d'affaires du second semestre 2024, principalement en raison de facteurs macroéconomiques liés à la Chine. Néanmoins, l'entreprise reste optimiste quant à la croissance à moyen terme, citant des progrès dans les programmes SuperVision/Chauffeur et une relation élargie avec Zeekr et le groupe Geely. Mobileye a également noté un intérêt croissant pour les produits à ASP élevé dans les segments de prix moyen et de volume élevé.
Mobileye Global Inc. (MBLY) hat die Ergebnisse des 2. Quartals 2024 veröffentlicht und einen Rückgang der Einnahmen um 3% im Jahresvergleich auf $439 Millionen festgestellt. Im Gegensatz dazu stiegen die Einnahmen im Vergleich zum 1. Quartal 2024 um 84% aufgrund eines verringerten Verbrauchs an überschüssigen Beständen. Das Unternehmen berichtete von einem 110% Anstieg bei den ausgelieferten Systemen im Vergleich zum 1. Quartal 2024, was zu einer Verbesserung des Betriebverlusts und des angepassten Betriebsergebnisses führte. Der verwässerte EPS (GAAP) betrug $(0.11), während der angepasste verwässerte EPS (Non-GAAP) bei $0.09 lag. Mobileye senkte die Erwartungen an Volumen und Einnahmen für das 2. Halbjahr 2024 hauptsächlich aufgrund von makroökonomischen Faktoren in China. Das Unternehmen bleibt jedoch optimistisch hinsichtlich des mittel- bis langfristigen Wachstums und verweist auf Fortschritte bei den SuperVision/Chauffeur-Programmen sowie auf eine erweiterte Zusammenarbeit mit Zeekr und Geely Group. Mobileye stellte auch fest, dass Produkte mit hohem ASP in den Bereichen mittlerer Preis und hohem Volumen zunehmend an Interesse gewinnen.
- 84% revenue increase from Q1 2024
- 110% increase in systems shipped compared to Q1 2024
- Improved Operating Loss and Adjusted Operating Profit
- Expanded relationship with Zeekr and Geely Group
- Emerging traction for high-ASP products in mid-priced, high-volume segments
- 3% year-over-year revenue decrease to $439 million
- Reduced expectations for H2 2024 volume and revenue
- Challenges in China market affecting industry-wide business conditions
- Delay of a high-volume ADAS launch outside of China
- Reduced SuperVision volume expectations for 2024 due to new tariffs and market uncertainties
Insights
Mobileye's Q2 2024 results present a mixed picture with some concerning trends. Revenue decreased
The company's adjusted operating margin declined significantly from
While the excess inventory issue seems to be resolving, Mobileye has reduced its expectations for the second half of 2024 due to macro factors in China. This could signal ongoing challenges in a key market. The company's EyeQ volume expectation for H2 2024 has been reduced by approximately 3.5 million units, which is a significant adjustment.
On a positive note, Mobileye reports robust business development activities and is tracking towards similar projected future volume and higher projected future revenue from design wins compared to 2023. The company's focus on advanced ADAS systems for mid-priced, high-volume vehicle segments could be a significant growth driver if successful.
Investors should closely monitor Mobileye's ability to execute on its SuperVision/Chauffeur programs and convert its opportunity pipeline into production awards, as these will be important for future growth.
Mobileye's Q2 results highlight shifting dynamics in the automotive technology market. The company's focus on advanced driver assistance systems (ADAS) for mid-priced, high-volume vehicle segments is particularly noteworthy. This trend aligns with broader industry movements towards democratizing advanced safety features across vehicle classes.
The expanded collaboration with Zeekr and the Geely Group is a strategic move that could strengthen Mobileye's position in the important Chinese market. However, the recent softening of business conditions in China presents a significant challenge. The impact of new tariffs in the US and Europe on SuperVision-equipped vehicles underscores the growing influence of geopolitical factors on the automotive tech industry.
The company's upcoming Capital Markets Day in December 2024 will be a key event for investors to gauge Mobileye's technological progress, particularly in AI-based software developments integrated into the EyeQ6 High platform. This event could provide valuable insights into Mobileye's competitive positioning in the rapidly evolving autonomous driving technology landscape.
While near-term challenges are evident, Mobileye's long-term prospects remain intriguing. The company's ability to adapt to changing market conditions, particularly in China and successfully execute its advanced programs will be important in maintaining its industry leadership position.
-
Revenue decreased
3% year over year to in the second quarter. Revenue increased$439 million 84% versus the first quarter of 2024 due to reduced consumption of excess inventory at Tier 1 customers compared to the first quarter. -
More than
110% increase in number of systems shipped as compared to the first quarter of 2024 led to significant improvement in Operating Loss and Adjusted Operating Profit. -
While we believe inventory of EyeQTM chips at our Tier 1 customers has almost fully normalized as of the end of the second quarter of 2024, we have reduced our expectation for second half volume and revenue, primarily due to
China -related macro factors. - We remain optimistic on the medium-term growth environment given continued SuperVisionTM / ChauffeurTM progress, a broadened relationship with Zeekr and Geely Group, and emerging traction for a high-ASP product serving mid-priced, high-volume segments.
-
Diluted EPS (GAAP) was
and Adjusted Diluted EPS (Non-GAAP) was$(0.11) in the second quarter of 2024.$0.09
“We are glad to report that the excess inventory at Tier 1 customers that meaningfully impacted our business in the first half of 2024 appears to be almost fully behind us, but a more significant than anticipated softening of business conditions in
Second Quarter 2024 Business Highlights
- On the business development front, our activities remain robust and we are tracking towards similar projected future volume and higher projected future revenue from design wins as compared to 2023, based on year-to-date program wins and the current customer engagements we are pursuing. SuperVision / Chauffeur development programs have progressed and we believe we remain on-track for significant wins in the second half of 2024. 1
- In addition to SuperVision / Chauffeur traction for high-end vehicle segments, we have seen increased clarity on OEM plans for the next generation of Level 2+ ADAS systems for mid-priced, high-volume vehicle segments. The stated goal of this new category is to reduce complexity, drive cost-efficiency, and assure compliance with heightened future safety rating criteria. We believe that the versatility and compute-efficiency of our portfolio positions us well to serve this market with a multi-camera, multi-radar, REMTM mapping setup, processed by a single EyeQ6 High chip. We are now pursuing multiple high-volume RFQ’s in this area. We further believe that success would lead to a significant increase in visibility of ASP growth in the single-chip ADAS segment.
-
While the drivers of medium-term growth have continued to strengthen, the near-term environment has recently become more challenging, and according to our analysis, it is primarily related to
China . First, we’ve seen meaningful reductions to 2nd half 2024 production estimates for multiple global OEM customers which have factored into our own expectations. Second, a decline in orders for the 2nd half of 2024 from Chinese OEMs compared to what these customers were indicating as of our last update. Finally, the delay of a high-volume ADAS launch outside ofChina is an additional headwind. As a result of these factors, we have reduced by approximately 3.5 million units our EyeQ volume expectation for the 2nd half of 2024, which in turn is affecting our guidance for the remainder of 2024.
-
SuperVision volume expectations for 2024 have also been reduced, primarily as a result of new tariffs in the US and
Europe , which are expected to impact the delivery ramp-up of SuperVision-equipped vehicles into those markets, and reduced expectations for volume inChina itself due to uncertainties around market dynamics and reduced forecasts from our customers.
-
We are on-track with initiatives to bolster our medium- and long-term prospects in
China . In particular, the expanded collaboration with Zeekr announced today is expected to accelerate SuperVision enhancements and adaptation to theChina market through DXP, secure SuperVision on the next-generation of Zeekr models domestic and globally, and pave a path for Robotaxi collaboration, all of which we believe will accelerate deployments with other customers inChina .
-
We are announcing that Mobileye Capital Markets Day will take place on December 9th and 10th, 2024 in
Munich . We are looking forward to providing market landscape updates, illustrating new AI-based software developments integrated into the EyeQ6 High platform (as well as DXP), providing demonstration rides inside production vehicles, and more. Significant portions will be webcast on December 9th for investors and analysts who cannot attend in person.
Second Quarter 2024 Financial Summary and Key Highlights (Unaudited)
GAAP |
|
|
|
|
|
|
|||||
|
|
Q2 2024 |
|
Q2 2023 |
|
% Y/Y |
|||||
Revenue |
|
$ |
439 |
|
|
$ |
454 |
|
|
(3 |
%) |
Gross Profit |
|
$ |
209 |
|
|
$ |
224 |
|
|
(7 |
%) |
Gross Margin |
|
|
48 |
% |
|
|
49 |
% |
|
(173)bps |
|
Operating Income (Loss) |
|
$ |
(94 |
) |
|
$ |
(33 |
) |
|
(181 |
)% |
Operating Margin |
|
|
(21 |
)% |
|
|
(7 |
)% |
|
(1,406)bps |
|
Net Income (Loss) |
|
$ |
(86 |
) |
|
$ |
(28 |
) |
|
(203 |
)% |
EPS - Basic |
|
$ |
(0.11 |
) |
|
$ |
(0.04 |
) |
|
(202 |
)% |
EPS - Diluted |
|
$ |
(0.11 |
) |
|
$ |
(0.04 |
) |
|
(202 |
)% |
|
|
|
|
|
|
|
Non-GAAP |
|
|
|
|
|
|
|||||
|
|
Q2 2024 |
|
Q2 2023 |
|
% Y/Y |
|||||
Revenue |
|
$ |
439 |
|
|
$ |
454 |
|
|
(3 |
%) |
Adjusted Gross Profit |
|
$ |
304 |
|
|
$ |
326 |
|
|
(7 |
%) |
Adjusted Gross Margin |
|
|
69 |
% |
|
|
72 |
% |
|
(256)bps |
|
Adjusted Operating Income |
|
$ |
79 |
|
|
$ |
140 |
|
|
(44 |
)% |
Adjusted Operating Margin |
|
|
18 |
% |
|
|
31 |
% |
|
(1,284)bps |
|
Adjusted Net Income |
|
$ |
76 |
|
|
$ |
135 |
|
|
(44 |
%) |
Adjusted EPS - Basic |
|
$ |
0.09 |
|
|
$ |
0.17 |
|
|
(44 |
%) |
Adjusted EPS - Diluted |
|
$ |
0.09 |
|
|
$ |
0.17 |
|
|
(44 |
%) |
-
Revenue of
decreased by$439 million 3% compared to the second quarter of 2023, due to a10% decrease in EyeQ SoC-related revenue. This was primarily attributable to usage of the remaining excess inventory at our Tier 1 customers to satisfy demand in Q2 of 2024. Most of this decrease was offset by a significant increase in SuperVision related revenue on a year-over-year basis.
-
Average System Price2 was
in the second quarter of 2024 as compared to$54.4 in the prior year period primarily due to the higher percentage of SuperVision-related revenue as compared to the second quarter of 2023.$51.7
- Gross Margin declined by nearly 2 percentage points in the second quarter of 2024 as compared to the prior year period. The decrease was primarily due to the increase in percentage of revenue attributable to SuperVision, partially offset by the impact of the lower cost attributable to amortization of intangible assets as a percentage of revenue.
- Adjusted Gross Margin declined by nearly 3 percentage points in the second quarter of 2024 as compared to the prior year period. The decrease was primarily due to the increase in percentage of revenue attributable to SuperVision.
- Operating Margin declined by 14 percentage points in the second quarter of 2024 as compared to the prior year period. The decrease was primarily due to higher operating expenses in second quarter of 2024 on a similar revenue base, in addition to the lower Gross Margin.
- Adjusted Operating Margin declined by 13 percentage points in the second quarter of 2024 as compared to the prior year period. The decrease was primarily due to higher operating expenses on a similar revenue base, in addition to the lower Adjusted Gross Margin.
-
Operating cash flow for the six months ended June 29, 2024 was
. Cash used in purchases of property and equipment was$70 million for that same period.$46 million
1 Mobileye’s revenue for the periods presented represent estimated volumes based on projections of future production volumes that were provided by our current and prospective OEMs at the time of sourcing the design wins for the models related to those design wins. Further, achievement of a design win is subject to multiple factors, many of which are outside of Mobileye’s control. Any statement on the timing of design wins is an estimate only and subject to change. See the disclaimer under the heading “Forward-Looking Statements” below for important limitations applicable to these estimates.
2 Average System Price is calculated as the sum of revenue related to EyeQTM and SuperVision systems, divided by the number of systems shipped.
Updated Financial Guidance for the 2024 Fiscal Year
We are updating our guidance for the 2024 fiscal year that we last provided on April 25, 2024:
|
|
Updated Guidance Full Year 2024 |
|
Previous Guidance Full Year 2024 |
||||||
|
|
Low |
|
High |
|
Range |
||||
Revenue |
|
$ |
1,600 |
|
|
$ |
1,680 |
|
|
|
Operating Loss |
|
$ |
(580 |
) |
|
$ |
(531 |
) |
|
|
Amortization of acquired intangible assets |
|
$ |
444 |
|
|
$ |
444 |
|
|
|
Share-based compensation expense |
|
$ |
288 |
|
|
$ |
288 |
|
|
|
Adjusted Operating Income |
|
$ |
152 |
|
|
$ |
201 |
|
|
|
Our updated guidance reflects a
The following information reflects Mobileye’s expectations for Revenue, Operating Loss and Adjusted Operating Income results for the year ending December 28, 2024. We believe Adjusted Operating Income (a non-GAAP metric) is an appropriate metric as it excludes significant non-cash expenses including: 1) Amortization charges related to intangible assets consisting of developed technology, customer relationships, and brands as a result of Intel’s acquisition of Mobileye in 2017 and the acquisition of Moovit in 2020; and, 2) Share-based compensation expense. These statements represent forward-looking information and may not represent a financial outlook, and actual results may vary. Please see the risks and assumptions referred to in the Forward-Looking Statements section of this release.
Earnings Conference Call Webcast Information
Mobileye will host a conference call today, August 1, 2024, at 8:00am ET (3:00pm IT) to review its results and provide a general business update. The conference call will be accessible live via a webcast on Mobileye’s investor relations site, which can be found at ir.mobileye.com, and a replay of the webcast will be made available shortly after the event’s conclusion.
Non-GAAP Financial Measures
This press release contains Adjusted Gross Profit and Margin, Adjusted Operating Income and Margin, Adjusted Net Income and Adjusted EPS, which are financial measures not presented in accordance with GAAP. We define Adjusted Gross Profit as gross profit presented in accordance with GAAP, excluding amortization of acquisition related intangibles and share-based compensation expense. Adjusted Gross Margin is calculated as Adjusted Gross Profit divided by total revenue. We define Adjusted Operating Income (Loss) as operating loss presented in accordance with GAAP, adjusted to exclude amortization of acquisition related intangibles, share-based compensation expenses. Operating margin is calculated as Operating Income (Loss) divided by total revenue, and Adjusted Operating Margin is calculated as Adjusted Operating Income divided by total revenue. We define Adjusted Net Income as net loss presented in accordance with GAAP, adjusted to exclude amortization of acquisition related intangibles, share-based compensation expense, as well as the related income tax effects. Income tax effects have been calculated using the applicable statutory tax rate for each adjustment taking into consideration the associated valuation allowance impacts. The adjustment for income tax effects consists primarily of the deferred tax impact of the amortization of acquired intangible assets. Adjusted Basic EPS is calculated by dividing Adjusted Net Income for the period by the weighted-average number of common shares outstanding during the period. Adjusted Diluted EPS is calculated by dividing Adjusted Net Income (Loss) by the weighted-average number of common shares outstanding during the period, while giving effect to all potentially dilutive common shares to the extent they are dilutive.
We use such non-GAAP financial measures to make strategic decisions, establish business plans and forecasts, identify trends affecting our business, and evaluate performance. For example, we use these non-GAAP financial measures to assess our pricing and sourcing strategy, in the preparation of our annual operating budget, and as a measure of our operating performance. We believe that these non-GAAP financial measures, when taken collectively, may be helpful to investors because they allow for greater transparency into what measures our management uses in operating our business and measuring our performance, and enable comparison of financial trends and results between periods where items may vary independent of business performance. The non-GAAP financial measures are presented for supplemental informational purposes only, should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from similarly titled non-GAAP measures used by other companies. A reconciliation is provided below for each non-GAAP financial measure to the most directly comparable financial measure presented in accordance with GAAP. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures.
About Mobileye Global Inc.
Mobileye (Nasdaq: MBLY) leads the mobility revolution with its autonomous driving and driver-assistance technologies, harnessing world-renowned expertise in computer vision, artificial intelligence, mapping, and data analysis. Since its founding in 1999, Mobileye has pioneered such groundbreaking technologies as REM™ crowdsourced mapping, True Redundancy™ sensing, and Responsibility Sensitive Safety (RSS). These technologies are driving the ADAS and AV fields towards the future of mobility – enabling self-driving vehicles and mobility solutions, powering industry-leading advanced driver-assistance systems and delivering valuable intelligence to optimize mobility infrastructure. To date, approximately 180 million vehicles worldwide have been built with Mobileye technology inside. In 2022 Mobileye listed as an independent company separate from Intel (Nasdaq: INTC), which retains majority ownership. For more information, visit https://www.mobileye.com.
“Mobileye,” the Mobileye logo and Mobileye product names are registered trademarks of Mobileye Global. All other marks are the property of their respective owners.
Forward-Looking Statements
Mobileye’s business outlook, guidance and other statements in this release that are not statements of historical fact, including statements about our beliefs and expectations, are forward-looking statements and should be evaluated as such. Forward-looking statements include information concerning possible or assumed future results of operations, including Mobileye’s 2024 full-year guidance, projected future revenue and descriptions of our business plan and strategies. These statements often include words such as “anticipate,” “expect,” “suggests,” “plan,” “believe,” “intend,” “estimates,” “targets,” “projects,” “should,” “could,” “would,” “may,” “will,” “forecast,” or the negative of these terms, and other similar expressions, although not all forward-looking statements contain these words. We base these forward-looking statements or projections, including Mobileye’s full-year guidance, on our current expectations, plans and assumptions that we have made in light of our experience in the industry, as well as our perceptions of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances and at such time. You should understand that these statements are not guarantees of performance or results. The forward-looking statements and projections are subject to and involve risks, uncertainties and assumptions and you should not place undue reliance on these forward-looking statements or projections. Although we believe that these forward-looking statements and projections are based on reasonable assumptions at the time they are made, you should be aware that many factors could affect our actual financial results or results of operations and could cause actual results to differ materially from those expressed in the forward-looking statements and projections.
Important factors that may materially affect such forward-looking statements and projections include the following: future business, social and environmental performance, goals and measures; our anticipated growth prospects and trends in markets and industries relevant to our business; business and investment plans; expectations about our ability to maintain or enhance our leadership position in the markets in which we participate; future consumer demand and behavior, including expectations about excess inventory utilization by customers; our ability to effectively compete in the markets in which we operate; future products and technology, and the expected availability and benefits of such products and technology; development of regulatory frameworks for current and future technology; changes in regulation and trade policy, including increased tariffs, in regions in which we operate, including the US,
The estimates included herein are based on projections of future production volumes that were provided by our current and prospective OEMs at the time of sourcing the design wins for the models related to those design wins. For the purpose of these estimates, we estimated sales prices based on our management’s estimates for the applicable product bundles and periods. Achieving design wins is not a guarantee of revenue, and our sales may not correlate with the achievement of additional design wins. Moreover, our pricing estimates are made at the time of a request for quotation by an OEM (in the case of estimates related to contracted customers), so that worsening market or other conditions between the time of a request for quotation and an order for our solutions may require us to sell our solutions for a lower price than we initial expected. These estimates may deviate from actual production volumes and sale prices (which may be higher or lower than the estimates) and the amounts included for prospective but uncontracted production volumes may never be achieved. Accordingly, these estimations are subject to and involve risks, uncertainties and assumptions and you should not place undue reliance on these forward-looking statements or projections.
Detailed information regarding these and other factors that could affect Mobileye’s business and results is included in Mobileye’s SEC filings, including the company’s Annual Report on Form 10-K for the year ended December 30, 2023, particularly in the section entitled “Item 1A. Risk Factors”. Copies of these filings may be obtained by visiting our Investor Relations website at ir.mobileye.com or the SEC’s website at www.sec.gov.
Second Quarter 2024 Financial Results
Mobileye Global Inc.
Condensed Consolidated Statements of Operations (unaudited)
|
|
Three Months Ended |
|
Six months Ended |
||||||||||||
|
|
June 29, 2024 |
|
July 1, 2023 |
|
June 29, 2024 |
|
July 1, 2023 |
||||||||
Revenue |
|
$ |
439 |
|
|
$ |
454 |
|
|
$ |
678 |
|
|
$ |
912 |
|
Cost of revenue |
|
|
230 |
|
|
|
230 |
|
|
|
415 |
|
|
|
481 |
|
Gross profit |
|
|
209 |
|
|
|
224 |
|
|
|
263 |
|
|
|
431 |
|
Research and development, net |
|
|
256 |
|
|
|
211 |
|
|
|
499 |
|
|
|
446 |
|
Sales and marketing |
|
|
28 |
|
|
|
29 |
|
|
|
62 |
|
|
|
62 |
|
General and administrative |
|
|
19 |
|
|
|
17 |
|
|
|
34 |
|
|
|
37 |
|
Total operating expenses |
|
|
303 |
|
|
|
257 |
|
|
|
595 |
|
|
|
545 |
|
Operating income (loss) |
|
|
(94 |
) |
|
|
(33 |
) |
|
|
(332 |
) |
|
|
(114 |
) |
Other financial income (expense), net |
|
|
13 |
|
|
|
15 |
|
|
|
30 |
|
|
|
23 |
|
Income (loss) before income taxes |
|
|
(81 |
) |
|
|
(18 |
) |
|
|
(302 |
) |
|
|
(91 |
) |
Benefit (provision) for income taxes |
|
|
(5 |
) |
|
|
(10 |
) |
|
|
(2 |
) |
|
|
(16 |
) |
Net income (loss) |
|
$ |
(86 |
) |
|
$ |
(28 |
) |
|
$ |
(304 |
) |
|
$ |
(107 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Earnings (loss) per share: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
$ |
(0.11 |
) |
|
$ |
(0.04 |
) |
|
$ |
(0.38 |
) |
|
$ |
(0.13 |
) |
Diluted |
|
$ |
(0.11 |
) |
|
$ |
(0.04 |
) |
|
$ |
(0.38 |
) |
|
$ |
(0.13 |
) |
Weighted-average number of shares used in computation of earnings (loss) per share (in millions): |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
|
806 |
|
|
|
805 |
|
|
|
806 |
|
|
|
803 |
|
Diluted |
|
|
806 |
|
|
|
805 |
|
|
|
806 |
|
|
|
803 |
|
Mobileye Global Inc.
Condensed Consolidated Balance sheets (unaudited)
|
|
June 29, 2024 |
|
December 30, 2023 |
||
Assets |
|
|
|
|
||
Current assets: |
|
|
|
|
||
Cash and cash equivalents |
|
$ |
1,203 |
|
$ |
1,212 |
Trade accounts receivable, net |
|
|
204 |
|
|
357 |
Inventories |
|
|
485 |
|
|
391 |
Other current assets |
|
|
115 |
|
|
106 |
Total current assets |
|
|
2,007 |
|
|
2,066 |
Non-current assets: |
|
|
|
|
||
Property and equipment, net |
|
|
456 |
|
|
447 |
Intangible assets, net |
|
|
1,831 |
|
|
2,053 |
Goodwill |
|
|
10,895 |
|
|
10,895 |
Other long-term assets |
|
|
118 |
|
|
116 |
Total non-current assets |
|
|
13,300 |
|
|
13,511 |
TOTAL ASSETS |
|
$ |
15,307 |
|
$ |
15,577 |
Liabilities and Equity |
|
|
|
|
||
Current liabilities: |
|
|
|
|
||
Accounts payable and accrued expenses |
|
$ |
171 |
|
$ |
229 |
Employee related accrued expenses |
|
|
91 |
|
|
87 |
Related party payable |
|
|
53 |
|
|
39 |
Other current liabilities |
|
|
31 |
|
|
48 |
Total current liabilities |
|
|
346 |
|
|
403 |
Non-current liabilities: |
|
|
|
|
||
Long-term employee benefits |
|
|
55 |
|
|
56 |
Deferred tax liabilities |
|
|
137 |
|
|
148 |
Other long-term liabilities |
|
|
50 |
|
|
46 |
Total non-current liabilities |
|
|
242 |
|
|
250 |
TOTAL LIABILITIES |
|
$ |
588 |
|
$ |
653 |
TOTAL EQUITY |
|
|
14,719 |
|
|
14,924 |
TOTAL LIABILITIES AND EQUITY |
|
$ |
15,307 |
|
$ |
15,577 |
Mobileye Global Inc.
Condensed Consolidated Cash Flows (unaudited)
|
|
Six months Ended |
||||||
|
|
June 29, 2024 |
|
July 1, 2023 |
||||
|
|
|
|
|
||||
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
||||
Net income (loss) |
|
$ |
(304 |
) |
|
$ |
(107 |
) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|
|
|
|
||||
Depreciation of property and equipment |
|
|
30 |
|
|
|
15 |
|
Share-based compensation |
|
|
124 |
|
|
|
127 |
|
Amortization of intangible assets |
|
|
222 |
|
|
|
251 |
|
Exchange rate differences on cash and cash equivalents |
|
|
5 |
|
|
|
5 |
|
Deferred income taxes |
|
|
(11 |
) |
|
|
(10 |
) |
Interest with related party, net |
|
|
— |
|
|
|
16 |
|
(Gains) losses on equity and debt investments, net |
|
|
1 |
|
|
|
— |
|
Other |
|
|
(1 |
) |
|
|
— |
|
Changes in operating assets and liabilities: |
|
|
|
|
||||
Decrease (increase) in trade accounts receivable |
|
|
133 |
|
|
|
29 |
|
Decrease (increase) in other current assets |
|
|
8 |
|
|
|
21 |
|
Decrease (increase) in inventories |
|
|
(94 |
) |
|
|
(150 |
) |
Increase (decrease) in accounts payable, accrued expenses and related party payable |
|
|
(52 |
) |
|
|
3 |
|
Increase (decrease) in employee-related accrued expenses and long term benefits |
|
|
3 |
|
|
|
(2 |
) |
Increase (decrease) in other current liabilities |
|
|
5 |
|
|
|
(2 |
) |
Decrease (increase) in other long term assets |
|
|
(2 |
) |
|
|
1 |
|
Increase (decrease) in other long-term liabilities |
|
|
3 |
|
|
|
— |
|
Net cash provided by (used in) operating activities |
|
|
70 |
|
|
|
197 |
|
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
||||
Purchase of property and equipment |
|
|
(46 |
) |
|
|
(58 |
) |
Purchases of debt and equity investments |
|
|
(18 |
) |
|
|
— |
|
Net cash provided by (used in) investing activities |
|
|
(64 |
) |
|
|
(58 |
) |
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
||||
Share-based compensation recharge |
|
|
(11 |
) |
|
|
(12 |
) |
Net cash provided by (used in) financing activities |
|
|
(11 |
) |
|
|
(12 |
) |
Effect of foreign exchange rate changes on cash and cash equivalents |
|
|
(5 |
) |
|
|
(5 |
) |
Increase (decrease) in cash, cash equivalents and restricted cash |
|
|
(10 |
) |
|
|
122 |
|
Balance of cash, cash equivalents and restricted cash, at beginning of year |
|
|
1,226 |
|
|
|
1,035 |
|
Balance of cash, cash equivalents and restricted cash, at end of period |
|
$ |
1,216 |
|
|
$ |
1,157 |
|
Mobileye Global Inc.
Reconciliation of GAAP Gross Profit and Margin to Non-GAAP Adjusted Gross Profit and Margin3 (unaudited)
|
Three Months Ended |
|
Six months Ended |
||||||||||||||||
|
June 29, 2024 |
|
July 1, 2023 |
|
June 29, 2024 |
|
July 1, 2023 |
||||||||||||
|
Amount |
% of Revenue |
|
Amount |
% of Revenue |
|
Amount |
% of Revenue |
|
Amount |
% of Revenue |
||||||||
Gross Profit |
$ |
209 |
48 |
% |
|
$ |
224 |
49 |
% |
|
$ |
263 |
39 |
% |
|
$ |
431 |
47 |
% |
Add: Amortization of acquired intangible assets |
|
94 |
21 |
% |
|
|
101 |
22 |
% |
|
|
188 |
28 |
% |
|
|
217 |
24 |
% |
Add: Share-based compensation expense |
|
1 |
— |
% |
|
|
1 |
— |
% |
|
|
1 |
— |
% |
|
|
2 |
— |
% |
Adjusted Gross Profit |
$ |
304 |
69 |
% |
|
$ |
326 |
72 |
% |
|
$ |
452 |
67 |
% |
|
$ |
650 |
71 |
% |
3Adjusted gross margin is calculated as adjusted gross profit as a percentage of revenue
Mobileye Global Inc.
Reconciliation of GAAP Operating Income (loss) and Margin to Non-GAAP Adjusted Operating Income and Margin4 (unaudited)
|
Three Months Ended |
|
Six months Ended |
||||||||||||||||||||
|
June 29, 2024 |
|
July 1, 2023 |
|
June 29, 2024 |
|
July 1, 2023 |
||||||||||||||||
|
Amount |
% of Revenue |
|
Amount |
% of Revenue |
|
Amount |
% of Revenue |
|
Amount |
% of Revenue |
||||||||||||
Operating Income (Loss) |
$ |
(94 |
) |
(21 |
%) |
|
$ |
(33 |
) |
(7 |
%) |
|
$ |
(332 |
) |
(49 |
%) |
|
$ |
(114 |
) |
(13 |
%) |
Add: Amortization of acquired intangible assets |
|
111 |
|
25 |
% |
|
|
118 |
|
26 |
% |
|
|
222 |
|
33 |
% |
|
|
251 |
|
28 |
% |
Add: Share-based compensation expense |
|
62 |
|
14 |
% |
|
|
55 |
|
12 |
% |
|
|
124 |
|
18 |
% |
|
|
127 |
|
14 |
% |
Adjusted Operating Income |
$ |
79 |
|
18 |
% |
|
$ |
140 |
|
31 |
% |
|
$ |
14 |
|
2 |
% |
|
$ |
264 |
|
29 |
% |
4Adjusted operating margin is calculated as adjusted operating income as a percentage of revenue
Mobileye Global Inc.
Reconciliation of GAAP Net Income (loss) to Non-GAAP Adjusted Net Income (unaudited)
|
Three Months Ended |
|
Six months Ended |
||||||||||||||||||||
|
June 29, 2024 |
|
July 1, 2023 |
|
June 29, 2024 |
|
July 1, 2023 |
||||||||||||||||
|
Amount |
% of Revenue |
|
Amount |
% of Revenue |
|
Amount |
% of Revenue |
|
Amount |
% of Revenue |
||||||||||||
Net Income (Loss) |
$ |
(86 |
) |
(20 |
%) |
|
$ |
(28 |
) |
(6 |
%) |
|
$ |
(304 |
) |
(45 |
%) |
|
$ |
(107 |
) |
(12 |
%) |
Add: Amortization of acquired intangible assets |
|
111 |
|
25 |
% |
|
|
118 |
|
26 |
% |
|
|
222 |
|
33 |
% |
|
|
251 |
|
28 |
% |
Add: Share-based compensation expense |
|
62 |
|
14 |
% |
|
|
55 |
|
12 |
% |
|
|
124 |
|
18 |
% |
|
|
127 |
|
14 |
% |
Less: Income tax effects |
|
(11 |
) |
(2 |
%) |
|
|
(10 |
) |
(2 |
%) |
|
|
(21 |
) |
(3 |
%) |
|
|
(21 |
) |
(2 |
%) |
Adjusted Net Income |
$ |
76 |
|
17 |
% |
|
$ |
135 |
|
30 |
% |
|
$ |
21 |
|
3 |
% |
|
$ |
250 |
|
27 |
% |
Supplemental Information - Average System Price (unaudited)
|
Q2 2023 |
|
Q3 2023 |
|
Q4 2023 |
|
Q1 2024 |
|
Q2 2024 |
|||||
EyeQ and SuperVision revenue ( |
$ |
430 |
|
$ |
507 |
|
$ |
611 |
|
$ |
219 |
|
$ |
413 |
Number of systems shipped (in millions) |
|
8.3 |
|
|
9.4 |
|
|
11.6 |
|
|
3.6 |
|
|
7.6 |
Average system price ( |
$ |
51.7 |
|
$ |
53.8 |
|
$ |
52.7 |
|
$ |
61.0 |
|
$ |
54.4 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240801746829/en/
Dan Galves
Investor Relations
investors@mobileye.com
Justin Hyde
Media Relations
justin.hyde@mobileye.com
Source: Mobileye Global Inc.
FAQ
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