Valens Semiconductor Reports Third Quarter 2024 Results
Valens Semiconductor (NYSE: VLN) reported Q3 2024 results exceeding guidance across all metrics. Revenue reached $16.0 million, with audio-video segment contributing 60% ($9.4M) and automotive segment 40% ($6.6M). The company secured three automotive design wins from European OEMs for VA7000 MIPI A-PHY chipsets, expected to be integrated into vehicles starting 2026. GAAP gross margin was 56.4%, while GAAP net loss was $(10.4) million. The company maintains a strong balance sheet with $133.1 million in cash and no debt. Q4 2024 revenue guidance is between $16.0-16.3 million.
Valens Semiconductor (NYSE: VLN) ha riportato risultati per il terzo trimestre 2024 che superano le previsioni in tutti i parametri. I ricavi hanno raggiunto 16,0 milioni di dollari, con il segmento audio-video che ha contribuito per il 60% (9,4 milioni di dollari) e il segmento automobilistico per il 40% (6,6 milioni di dollari). L'azienda ha ottenuto tre vittorie progettuali nel settore automobilistico da OEM europei per i chipset VA7000 MIPI A-PHY, che si prevede saranno integrati nei veicoli a partire dal 2026. Il margine lordo GAAP è stato del 56,4%, mentre la perdita netta GAAP è stata di $(10,4) milioni di dollari. L'azienda mantiene un solido bilancio con 133,1 milioni di dollari in contanti e senza debito. Le previsioni di ricavi per il quarto trimestre 2024 sono comprese tra 16,0-16,3 milioni di dollari.
Valens Semiconductor (NYSE: VLN) reportó resultados del tercer trimestre de 2024 que superan las expectativas en todos los indicadores. Los ingresos alcanzaron 16,0 millones de dólares, con el segmento de audio y video contribuyendo con el 60% (9,4 millones de dólares) y el segmento automotriz con el 40% (6,6 millones de dólares). La empresa aseguró tres victorias de diseño automotriz de OEM europeos para los chipsets VA7000 MIPI A-PHY, que se espera se integren en vehículos a partir de 2026. El margen bruto GAAP fue del 56,4%, mientras que la pérdida neta GAAP fue de $(10,4) millones de dólares. La compañía mantiene un sólido balance con 133,1 millones de dólares en efectivo y sin deudas. La guía de ingresos para el cuarto trimestre de 2024 se encuentra entre 16,0-16,3 millones de dólares.
발렌스 반도체 (NYSE: VLN)는 2024년 3분기 실적이 모든 지표에서 예상치를 초과했다고 보고했습니다. 매출은 1,600만 달러에 달했으며, 오디오-비디오 부문이 60% (940만 달러), 자동차 부문이 40% (660만 달러)를 차지했습니다. 이 회사는 2026년부터 차량에 통합될 것으로 예상되는 VA7000 MIPI A-PHY 칩셋을 위해 유럽 OEM으로부터 세 개의 자동차 디자인 승인을 확보했습니다. GAAP 총 이익률은 56.4%였으며, GAAP 순손실은 $(1,040만) 달러였습니다. 회사는 1억 3,310만 달러의 현금을 보유하고 있으며 부채가 없습니다. 2024년 4분기 매출 전망은 1,600만-1,630만 달러 사이입니다.
Valens Semiconductor (NYSE: VLN) a annoncé des résultats pour le troisième trimestre 2024 dépassant les attentes sur tous les indicateurs. Les revenus ont atteint 16,0 millions de dollars, avec le segment audio-vidéo contribuant à 60% (9,4 millions de dollars) et le segment automobile à 40% (6,6 millions de dollars). L'entreprise a sécurisé trois victoires en matière de conception automobile auprès de fabricants européens pour les chipsets VA7000 MIPI A-PHY, qui devraient être intégrés dans des véhicules à partir de 2026. La marge brute GAAP était de 56,4%, tandis que la perte nette GAAP s'élevait à $(10,4) millions de dollars. L'entreprise maintient une solide situation financière avec 133,1 millions de dollars en liquidités et sans dettes. Les prévisions de revenus pour le quatrième trimestre 2024 se situent entre 16,0 et 16,3 millions de dollars.
Valens Semiconductor (NYSE: VLN) hat Ergebnisse für das dritte Quartal 2024 vorgelegt, die die Erwartungen in allen Bereichen übertreffen. Der Umsatz belief sich auf 16,0 Millionen US-Dollar, wobei das Audio-Video-Segment 60% (9,4 Millionen US-Dollar) und das Automobilsegment 40% (6,6 Millionen US-Dollar) ausmachte. Das Unternehmen sicherte sich drei Designgewinne von europäischen OEMs für die VA7000 MIPI A-PHY-Chipsätze, die voraussichtlich ab 2026 in Fahrzeuge integriert werden. Die GAAP-Bruttomarge betrug 56,4%, während der GAAP-Nettoverlust $(10,4) Millionen US-Dollar betrug. Das Unternehmen verfügt über eine starke Bilanz mit 133,1 Millionen US-Dollar in bar und ohne Schulden. Die Umsatzprognose für das vierte Quartal 2024 liegt zwischen 16,0 und 16,3 Millionen US-Dollar.
- Revenue exceeded guidance at $16.0M, up from $13.6M in Q2 2024
- Secured three automotive design wins from European OEMs
- Strong balance sheet with $133.1M cash and no debt
- Over 50 customers developing VS6320-based products
- Automotive gross margin improved to 37.0% from 21.6% YoY
- GAAP net loss increased to $(10.4M) from $(8.9M) in Q2 2024
- Audio-video gross margin declined to 70.2% from 75.4% QoQ
- Adjusted EBITDA loss of $(5.1M)
- Cash position decreased from $142.0M in Dec 2023 to $133.1M
Insights
The Q3 results show mixed signals. While revenue of
The balance sheet remains solid with
The strategic pivot toward machine vision and industrial automation through the VS6320 and VA7000 chipsets positions Valens well in high-growth markets. The organizational restructuring to create a Cross Industry Business Unit demonstrates commitment to diversification beyond traditional audio-video markets. With 50+ customers developing VS6320-based products and positive feedback from the VISION tradeshow, market validation is strong.
The Acroname acquisition is already exceeding expectations, contributing
Reports beats on all guidance metrics
Awarded three automotive design wins from leading European OEMs for VA7000 MIPI A-PHY chipsets
Announces organizational changes and leadership transitions
Will host Investor Day on November 12, 2024
HOD HASHARON,
"We delivered solid third quarter results, reflecting the growth in the demand for our high-performance connectivity solutions," said Gideon Ben-Zvi, CEO of Valens Semiconductor. "We surpassed the top end of our guidance on all metrics this quarter, driven by the growing demand for our technology from customers adopting our chipsets to create cutting-edge products.
"We are especially excited about our three new automotive design wins from leading European OEMs this quarter. We expect our VA7000 chipsets to be integrated into certain vehicle models starting in 2026 with accelerated adoption in 2027 and 2028. Additionally, now that leading OEMs have validated our technology, we are poised to expand our opportunity set with other OEMS and Tier-1 automotive suppliers looking to adopt the MIPI A-PHY standard.
"In our audio-video market, we are excited to see a high rate of adoption of our VS6320 chips with more than 50 customers now developing new products using them. We believe this reflects growing market demand for reliable, streamlined, and affordable connectivity and validates our groundbreaking technology. We expect the VS6320 to power a record number of customer products and are planning a robust lineup of new product launches over the next 12 months. We anticipate initial sales from the VS6320 before the end of the year with a continued ramp towards the end of 2025.
"We are seeing new opportunities for both our VA7000 and VS6320 technology in the dynamic machine vision vertical where growth is being driven by factory and warehouse automation, as well as more demanding inspection regulations. In this vertical, several camera module manufacturers are already integrating our chipsets into their cutting-edge products. We also received outstanding feedback from prospective customers on our technology at the recent VISION tradeshow.
"We are pleased with our progress in the third quarter and the momentum we are seeing in our business. Given the continued validation of our industry-leading technology and our fortress balance sheet, we are well positioned to capitalize on exciting growth opportunities in both existing industries and new ones," concluded Ben-Zvi.
Recent Business Highlights
- Achieved three design wins with European automotive OEMs for the VA7000 MIPI A-PHY compliant chipset, validating Valens' position as a key supplier of ADAS connectivity solutions.
- Progressed with the integration of Acroname, expanding Valens' position in the industrial market with a holistic USB-focused offering.
- Showcased VA7000 and VA6320 chipsets at VISION trade show and engaged with leading camera module manufacturers (Teledyne e2v, FRAMOS, Leopard Imaging, and others) in industrial machine vision.
- Unveiled the breakthrough USB3 and industrial grade extender solution which eliminates the need for multiple cables and accelerates time to market for industrial vendors.
- More than 50 customers are developing VS6320 based products for the audio-video market.
Key Financial Highlights
- Third quarter 2024 revenues reached
, exceeding our guidance of between$16.0 million to$14.7 million dollars . This compared to$15.4 million dollars in the second quarter of 2024 and compared to$13.6 million in the third quarter of 2023.$14.2 million
- Audio-video revenues accounted for approximately60% of total revenues at compared to$9.4 million in the second quarter of 2024 and compared to$8.1 million dollars in the third quarter of 2023.$9.7 million
- Acroname contributed revenues of in its first full quarter following the acquisition in May, exceeding the guidance of$1.6 million . Acroname's results are included in the Audio-Video segment results.$1.2 -1.4 million
- Automotive revenues accounted for approximately40% of total revenues at , compared to$6.6 million $5.5 million dollars in the second quarter of 2024 and compared to$4.5 million in the third quarter of 2023. - GAAP gross margin was
56.4% for the third quarter of 2024, above guidance of between52% and53% (non-GAAP gross margin was60.7% ). This compared to GAAP gross margin of61.4% in the second quarter of 2024 (non-GAAP gross margin of64.5% ) and58.9% for the third quarter of 2023 (non-GAAP gross margin of61.1% ).
- On a segment basis, audio-video gross margin was70.2% and automotive gross margin was37.0% compared to75.4% and40.9% , respectively, in the second quarter of 2024 and compared to75.8% and21.6% , respectively, in the third quarter of 2023. The increase in automotive gross margin compared to the third quarter of 2023 was due to improvement in our chip costs. The decrease in Audio Video gross margin was due to product mix shift and lower fixed cost absorption. - GAAP net loss was
in the third quarter of 2024, compared to a GAAP net loss of$(10.4) million in the second quarter of 2024 and compared to$(8.9) million in the third quarter of 2023.$(12.5) million - Adjusted EBITDA loss in the third quarter of 2024 was
, beating the guidance range of a loss between$(5.1) million and$(6.8) million . This compared to Adjusted EBITDA loss of$(6.3) million in the second quarter of 2024 and compared to$(5.2) million in the third quarter of 2023.$(8.8) million - Strong balance sheet of
in cash, cash equivalents and short-term deposits, and no debt, as of September 30, 2024, compared to$133.1 million on June 30, 2024, and$130.6 million on Dec 31, 2023.$142.0 million - Inventory balance of
on September 30, 2024, down compared to$11.7 million on June 30, 2024, and$14.1 million as of Dec 31, 2023.$13.8 million
Financial Outlook
"Looking ahead, we remain confident in our growth potential for the medium and long term," said Guy Nathanzon, CFO of Valens Semiconductor. "We are committed to pushing the boundaries of connectivity with our advanced chipsets that empower customers to bring disruptive products to both established and emerging markets."
"Our fourth quarter 2024 revenues are expected to range between
Disclaimer: Valens Semiconductor does not provide GAAP net profit (loss) guidance as certain elements of net profit (loss), including share-based compensation expenses and warrant valuations, are not predictable due to the high variability and difficulty of making accurate forecasts. Adjusted EBITDA is a non-GAAP measure. See the tables below for additional information regarding this and other non-GAAP metrics used in this release.
Organizational Changes and Leadership Transitions
To address new opportunities across verticals, the Company is implementing organizational changes within the Audio-Video Business Unit. Valens' Audio-Video Business Unit will now be named Cross Industry Business Unit, encompassing verticals including Audio-Video, Industrial, Machine Vision, and Medical. To facilitate the Company's growth strategy, the Cross Industry Business Unit will also include a change in leadership. Valens is confident that these changes will enable the Company to achieve its goals in these new high-growth markets.
Gideon Ben-Zvi said, "After over a decade, Gabi Shriki will be stepping down as SVP, Head of Valens' Audio-Video Business Unit. Gabi has been instrumental in establishing and growing the Audio-Video Business and has played a pivotal role in positioning Valens as the unrivaled leader in Professional Audio-Video connectivity. On behalf of the Valens team, I would like to thank Gabi for his outstanding dedication and vast contributions to the Company," concluded Ben-Zvi. The new Head of Cross Industry Business Unit, whose name will be disclosed at a later date, will join Valens starting February 16, 2025. Gabi will remain at Valens to facilitate a seamless transition.
The Company has announced that Gideon Kedem, SVP, Head of Valens' Automotive Business will be retiring at the end of the year and Adar Segal has been appointed to the role of SVP, Head of Automotive Sales and Business Development, effective January 1, 2025. Gideon Kedem will remain at Valens to facilitate a seamless transition.
Gideon Ben-Zvi said, "Gideon Kedem's tenure at Valens has been marked by his exceptional leadership, dedication, and an unwavering focus on advancing our automotive business. I would like to thank Gideon Kedem for postponing his personal retirement plans until he achieved his goal of securing new design wins for Valens. After laying the foundation for future success, he is now ready to pass on the leadership of the Automotive Business. We thank Gideon Kedem for his many contributions to Valens and wish him all the best in his retirement."
Adar Segal joins Valens with over 20 years of expertise in technology-driven sales, complex deal structures, and partnerships across multiple high-tech industries. In his most recent roles, Adar led strategic growth at companies such as TriEye and Cadence Design Systems.
Ben-Zvi added, "Adar is a seasoned executive in our industry. His extensive background, track record, and industry relationships make him the ideal leader for the next phase of our success in our automotive business. In this role, he will focus on automotive sales and business development as we continue to pursue OEM design wins and expand our market reach. We are excited to welcome Adar into the Valens team and look forward to the vision he brings to advance our strategic goals."
Investor Day
Valens Semiconductor will host an Investor Day on Tuesday, November 12, 2024, at 12 p.m. Eastern Time (ET) in
Conference Call Information
Valens Semiconductor will host a conference call today, Wednesday, November 6, 2024, at 8:30 a.m. ET to discuss its third quarter 2024 financial results and business outlook. To access this call, dial (at least 10 minutes before the scheduled time) +1 (888) 281-1167 (
Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "estimate," "plan," "project," "forecast," "intend," "will," "expect," "anticipate," "believe," "seek," "target" or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding our anticipated future results, including financial results, currency exchange rates, and contract wins, and future economic and market conditions. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of Valens Semiconductor's ("Valens") management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as and must not be relied on by any investor as a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of Valens Semiconductor. These forward-looking statements are subject to a number of risks and uncertainties, including the cyclicality of the semiconductor industry; the effect of inflation and a rising interest rate environment on our customers and industry; the ability of our customers to absorb inventory; competition in the semiconductor industry, and the failure to introduce new technologies and products in a timely manner to compete successfully against competitors; if Valens fails to adjust its supply chain volume due to changing market conditions or fails to estimate its customers' demand; disruptions in relationships with any one of Valens' key customers; any difficulty selling Valens' products if customers do not design its products into their product offerings; Valens' dependence on winning selection processes; even if Valens succeeds in winning selection processes for its products, Valens may not generate timely or sufficient net sales or margins from those wins; sustained yield problems or other delays or quality events in the manufacturing process of products; our ability to effectively manage, invest in, grow, and retain our sales force, research and development capabilities, marketing team and other key personnel; our ability to timely adjust product prices to customers following price increase by the supply chain; our ability to adjust our inventory level due to reduction in demand due to inventory buffers accrued by customers; our expectations regarding the outcome of any future litigation in which we are named as a party; our ability to adequately protect and defend our intellectual property and other proprietary rights; our ability to successfully integrate or otherwise achieve anticipated benefits from acquired businesses; the market price and trading volume of the Valens ordinary shares may be volatile and could decline significantly; political, economic, governmental and tax consequences associated with our incorporation and location in
About Valens Semiconductor
Valens Semiconductor is a leader in high-performance connectivity, enabling customers to transform the digital experiences of people worldwide. Valens' chipsets are integrated into countless devices from leading customers, powering state-of-the-art audio-video installations, next-generation videoconferencing, and enabling the evolution of ADAS and autonomous driving. Pushing the boundaries of connectivity, Valens sets the standard everywhere it operates, and its technology forms the basis for the leading industry standards such as HDBaseT® and MIPI A-PHY. For more information, visit https://www.valens.com.
VALENS SEMICONDUCTOR LTD.
SUMMARY OF FINANCIAL RESULTS
(
Three Months Ended September 30, |
Nine Months Ended September 30, | ||||
2024 | 2023 | 2024 | 2023 | ||
Revenues | 16,038 | 14,166 | 41,194 | 62,221 | |
Gross Profit | 9,045 | 8,338 | 24,204 | 39,065 | |
Gross Margin | 56.4 % | 58.9 % | 58.8 % | 62.8 % | |
Net loss | (10,355) | (12,492) | (29,266) | (22,451) | |
Working Capital[1] | 136,146 | 152,560 | 136,146 | 152,560 | |
Cash, cash equivalents and short-term deposits[2] | 133,098 | 142,696 | 133,098 | 142,696 | |
Net cash provided by (used in) operating activities | 2,964 | 6,088 | 1,349 | (2,223) | |
Non-GAAP Financial Data | |||||
Non-GAAP Gross Margin[3] | 60.7 % | 61.1 % | 62.3 % | 64.2 % | |
Adjusted EBITDA Loss[4] | (5,137) | (8,831) | (17,374) | (12,471) | |
Non-GAAP Loss per share (in |
VALENS SEMICONDUCTOR LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(
Three Months Ended |
Nine Months Ended | ||||||
2024 | 2023 | 2024 | 2023 | ||||
REVENUES | 16,038 | 14,166 | 41,194 | 62,221 | |||
COST OF REVENUES | (6,993) | (5,828) | (16,990) | (23,156) | |||
GROSS PROFIT |
9,045 |
8,338 |
24,204 |
39,065 | |||
OPERATING EXPENSES: | |||||||
Research and development expenses | (10,309) | (13,419) | (30,415) | (39,540) | |||
Sales and marketing expenses | (4,880) | (4,015) | (13,636) | (13,330) | |||
General and administrative expenses | (5,825) | (3,843) | (12,793) | (11,376) | |||
Change in earnout liability |
(264) |
- |
(292) |
- | |||
TOTAL OPERATING EXPENSES |
(21,278) |
(21,277) |
(57,136) |
(64,246) | |||
OPERATING LOSS | (12,233) | (12,939) | (32,932) | (25,181) | |||
Change in fair value of Forfeiture Shares | 3 | 89 | 38 | 1,618 | |||
Financial income, net | 1,885 | 368 | 3,659 | 1,160 | |||
LOSS BEFORE INCOME TAXES | (10,345) | (12,482) | (29,235) | (22,403) | |||
INCOME TAXES | (14) | (16) | (52) | (61) | |||
LOSS AFTER INCOME TAXES | (10,359) | (12,498) | (29,287) | (22,464) | |||
Equity in earnings of investee | 4 | 6 | 21 | 13 | |||
NET LOSS | (10,355) | (12,492) | (29,266) | (22,451) | |||
EARNINGS PER SHARE DATA:
BASIC AND DILUTED NET LOSS PER ORDINARY | |||||||
WEIGHTED AVERAGE NUMBER OF SHARES AND IN COMPUTING NET LOSS PER ORDINARY | 106,098,703 | 102,216,654 |
105,075,212 | 101,659,653 |
VALENS SEMICONDUCTOR LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
(
ASSETS | September 30, | December 31, | ||||
CURRENT ASSETS Cash and cash equivalents | 35,443 | 17,261 | ||||
Short-term deposits | 97,655 | 124,759 | ||||
Trade accounts receivable | 7,217 | 14,642 | ||||
Inventories | 11,737 | 13,836 | ||||
Prepaid expenses and other current assets | 3,000 | 4,196 | ||||
TOTAL CURRENT ASSETS | 155,052 | 174,694 | ||||
LONG-TERM ASSETS: | ||||||
Property and equipment, net | 2,889 | 2,954 | ||||
Operating lease right-of-use assets | 6,460 | 2,202 | ||||
Intangible assets | 4,937 | - | ||||
Goodwill | 1,847 | - | ||||
Other assets | 702 | 708 | ||||
TOTAL LONG-TERM ASSETS | 16,835 | 5,864 | ||||
TOTAL ASSETS | 171,887 | 180,558 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES | 18,906 | 15,931 | ||||
LONG-TERM LIABILITIES | ||||||
Forfeiture Shares | - | 38 | ||||
Non-current operating leases liabilities | 3,598 | 190 | ||||
Earnout liability | 2,328 | - | ||||
Other long-term liabilities | 66 | 95 | ||||
TOTAL LONG-TERM LIABILITIES | 5,992 | 323 | ||||
TOTAL LIABILITIES | 24,898 | 16,254 | ||||
TOTAL SHAREHOLDERS' EQUITY | 146,989 | 164,304 | ||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 171,887 | 180,558 | ||||
VALENS SEMICONDUCTOR LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(
Three Months Ended September 30, | Nine Months Ended September 30, | |||||
2024 | 2023 | 2024 | 2023 | |||
CASH FLOW FROM OPERATING ACTIVITIES | ||||||
Net loss for the period | (10,355) | (12,492) | (29,266) | (22,451) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||
Income and expense items not involving cash flows: | ||||||
Depreciation and amortization | 823 | 400 | 1,758 | 1,193 | ||
Stock-based compensation | 3,760 | 3,708 | 11,259 | 11,517 | ||
Exchange rate differences | 87 | 1,379 | 1,353 | 3,652 | ||
Interest on short-term deposits | (312) | 22 | 605 | (367) | ||
Change in fair value of forfeiture shares | (3) | (89) | (38) | (1,618) | ||
Change in earnout liability | 264 | - | 292 | - | ||
Reduction in the carrying amount of ROU assets | 896 | 478 | 1,619 | 1,464 | ||
Equity in earnings of investee, net of dividend received | 4 | 6 | 21 | 13 | ||
Changes in operating assets and liabilities, net of effects of | ||||||
Trade accounts receivable | 2,804 | 8,429 | 7,719 | 3,854 | ||
Prepaid expenses and other current assets | 977 | 643 | 1,285 | 1,046 | ||
Inventories | 2,274 | 2,115 | 4,675 | 6,914 | ||
Long-term assets | (73) | (40) | (7) | (6) | ||
Current Liabilities | 2,692 | 1,916 | 1,590 | (6,256) | ||
Change in operating lease liabilities | (865) | (392) | (1,487) | (1,251) | ||
Other long-term liabilities | (9) | 5 | (29) | 73 | ||
Net cash provided by (used in) operating activities | 2,964 | 6,088 | 1,349 | (2,223) | ||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||
Investment in short-term deposits | (16,443) | (64,189) | (103,662) | (173,342) | ||
Maturities of short-term deposits | 25,380 | 47,803 | 129,418 | 166,757 | ||
Purchase of property and equipment | (722) | (180) | (987) | (1,099) | ||
Cash paid for business combination, net of cash acquired | - | - | (7,800) | - | ||
Net cash provided by (used in) investing activities | 8,215 | (16,566) | 16,969 | (7,684) | ||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||
Exercise of stock options | 56 | 279 | 692 | 1,265 | ||
Net cash provided by financing activities | 56 | 279 | 692 | 1,265 | ||
Effect of exchange rate changes on cash and cash equivalents | (498) | (25) | (828) | (196) | ||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 10,737 | (10,224) | 18,182 | (8,838) | ||
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD | 24,706 | 21,410 | 17,261 | 20,024 | ||
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD | 35,443 | 11,186 | 35,443 | 11,186 | ||
SUPPLEMENT DISCLOSURE OF CASH FLOW INFORMATION | ||||||
Cash paid for taxes | 39 | 10 | 102 | 262 | ||
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING | ||||||
Trade accounts payable on account of property and equipment | 309 | - | 309 | 125 | ||
Fair value of earnout liability assumed in business combination | - | - | 2,036 | - | ||
Operating lease liabilities arising from obtaining operating right-of-use assets | 579 | 33 | 5,412 | 469 |
VALENS SEMICONDUCTOR LTD.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(
The following table provides a reconciliation of Net loss to Adjusted EBITDA, a non-GAAP measure. Adjusted EBITDA is defined as Net profit (loss) before financial income (expense), net, income taxes, equity in earnings of investee and depreciation and amortization, further adjusted to exclude share-based compensation, certain batch production incident expenses and change in fair value of Forfeiture Shares and earnout liability, which may vary from period-to-period. We caution investors that amounts presented in accordance with our definition of Adjusted EBITDA may not be comparable to similar measures disclosed by other issuers, because not all issuers calculate Adjusted EBITDA in the same manner. Adjusted EBITDA should not be considered as an alternative to Net loss or any other performance measures derived in accordance with GAAP or as an alternative to cash flows from operating activities as a measure of our liquidity.
Although we provide guidance for Adjusted EBITDA, we are not able to provide guidance for projected Net profit (loss), the most directly comparable GAAP measures. Certain elements of Net profit (loss), including share-based compensation expenses and warrant valuations, are not predictable due to the high variability and difficulty of making accurate forecasts. As a result, it is impractical for us to provide guidance on Net profit (loss) or to reconcile our Adjusted EBITDA guidance without unreasonable efforts. Consequently, no disclosure of projected Net profit (loss) is included. For the same reasons, we are unable to address the probable significance of the unavailable information.
Three Months Ended September 30, | Nine Months Ended September 30, | |||||
2024 | 2023 | 2024 | 2023 | |||
Net Loss | (10,355) | (12,492) |
(29,266) |
(22,451) | ||
Adjusted to exclude the following: | ||||||
Change in fair value of Forfeiture Shares | (3) | (89) |
(38) |
(1,618) | ||
Change in earnout liability | 264 | - |
292 |
- | ||
Certain batch production incident expenses | 2,249 | - | 2,249 |
- | ||
Financial income, net | (1,885) | (368) |
(3,659) |
(1,160) | ||
Income taxes | 14 | 16 |
52 |
61 | ||
Equity in earnings of investee | (4) | (6) |
(21) |
(13) | ||
Depreciation and amortization | 823 | 400 |
1,758 |
1,193 | ||
Stock-based compensation expenses | 3,760 | 3,708 |
11,259 |
11,517 | ||
Adjusted EBITDA Loss | (5,137) | (8,831) |
(17,374) |
(12,471) |
VALENS SEMICONDUCTOR LTD.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(
The following tables provide a calculation of the GAAP Loss per share and reconciliation to Non-GAAP Loss per share.
Three Months Ended September 30, | Nine Months Ended September 30, | ||||
GAAP Loss per Share | 2024 | 2023 | 2024 | 2023 | |
GAAP Net Loss used for computing Loss per Share | (10,355) | (12,492) |
(29,266) |
(22,451) | |
Earnings Per Share Data: | |||||
GAAP Loss per Share (in |
|
| |||
Weighted average number of shares and vested RSUs used | 106,098,703 | 102,216,654 |
105,075,212 |
101,659,653 | |
Three Months Ended |
Nine Months Ended | ||||
Non-GAAP Loss per Share[7] | 2024 | 2023 | 2024 | 2023 | |
GAAP Net Loss | (10,355) | (12,492) |
(29,266) |
(22,451) | |
Adjusted to exclude the following: | |||||
Stock based compensation | 3,760 | 3,708 |
11,259 |
11,517 | |
Depreciation and amortization | 823 | 400 |
1,758 |
1,193 | |
Certain batch production incident expenses | 2,249 | - |
2,249 |
- | |
Change in earnout liability | 264 | - |
292 |
- | |
Change in fair value of Forfeiture Shares | (3) | (89) |
(38) |
(1,618) | |
Total Non-GAAP Loss used for computing Loss per Share | (3,262) | (8,473) |
(13,746) |
(11,359) | |
Earnings Per Share Data: | |||||
Non-GAAP (Loss) per Share (in |
|
| |||
Weighted average number of shares and vested RSUs used | 106,098,703 | 102,216,654 |
105,075,212 |
101,659,653 | |
1. Working Capital is calculated as Total Current Assets, less Total Current Liabilities, as of the last day of the period.
2. As of the last day of the period.
3. GAAP Gross Profit excluding share-based compensation, depreciation and amortization expenses, divided by revenue. For the three months ended September 30, 2024, and 2023, share-based compensation, depreciation and amortization expenses were
4. Adjusted EBITDA is defined as Net profit (loss) before financial income (expense), net, income taxes, equity in earnings of investee and depreciation and amortization, further adjusted to exclude share-based compensation, certain batch production incident expenses and change in fair value of Forfeiture Shares and earnout liability, which may vary from period-to-period. We caution investors that amounts presented in accordance with our definition of Adjusted EBITDA may not be comparable to similar measures disclosed by other issuers, because not all issuers calculate Adjusted EBITDA in the same manner. Adjusted EBITDA should not be considered as an alternative to Net loss or any other performance measures derived in accordance with GAAP or as an alternative to cash flows from operating activities as a measure of our liquidity. Please refer to the appendix at the end of this press release for a reconciliation to the most directly comparable measure in accordance with GAAP.
5. See reconciliation of GAAP to non-GAAP financial measures.
6. See note 5.
7. The company calculates its non-GAAP Loss per Share as GAAP Net Loss adjusted to exclude the following: Stock-based compensation, depreciation and amortization, certain batch production incident expenses and the change in fair value of Forfeiture Share and earnout liability divided by the weighted average number of shares used in calculation of net loss per share.
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For more information, please contact:
Investor Contacts:
Michal Ben Ari
Investor Relations Manager
Valens Semiconductor Ltd.
michal.benari@valens.com
Lisa Fortuna
Financial Profiles, Inc.
valens@finprofiles.com
Media Contact:
Yoni Dayan
Head of Communications
Valens Semiconductor Ltd.
yoni.dayan@valens.com
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SOURCE Valens Semiconductor
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