Innoviz announces $12 million cost cuts to hasten profitability

TEL AVIV - Innoviz Technologies Ltd. (NASDAQ:INVZ), a prominent supplier of LiDAR sensors and perception software for the automotive industry, disclosed plans to streamline its operations with the aim of hastening its journey toward profitability and positive cash flow. According to InvestingPro data, the company maintains a strong balance sheet with more cash than debt, despite burning through cash rapidly. The company, which is set to begin production for customers in 2026, is looking to reduce its workforce by around 9% as part of a strategic realignment.

This initiative is expected to deliver cost savings of about $12 million annually, starting from the first quarter of 2025, with full run-rate savings anticipated by the end of the second quarter. The company stated that the cash costs associated with these changes would be minimal. With current revenue of $33.2 million and a gross profit margin of -12%, these cost reductions could significantly impact the company’s path to profitability.

Omer Keilaf, Co-Founder and CEO of Innoviz, commented on the decision, stating, "Our recently announced collaborations with Mobileye, Nvidia (NASDAQ:NVDA) and others highlight the progress we have made in developing and maturing solutions designed to meet the stringent requirements of OEMs worldwide now and in the future." He further emphasized that the realignment is a response to the evolution of the company’s development efforts to better align with customer needs and to streamline costs. For detailed analysis of Innoviz’s financial health and growth prospects, investors can access comprehensive research reports and additional insights through InvestingPro, which offers exclusive access to over 10 key financial metrics and expert analysis for this emerging tech company.

Innoviz serves as a Tier-1 supplier to leading automotive manufacturers and is recognized for its advanced LiDAR technology that aims to enhance vehicle safety by outperforming human vision capabilities. The company operates internationally, with a presence in the U.S., Europe, and Asia, and has been selected by globally recognized car brands for consumer vehicles as well as by other commercial and industrial entities for various applications. Despite recent market volatility, the stock has shown strong momentum with a 107% gain over the past six months, though it remains below its 52-week high of $3.14.

The information provided in this article is based on a press release statement from Innoviz Technologies.

In other recent news, Innoviz Technologies Ltd. posted a revenue of $4.5 million for Q3 2024, surpassing their guidance and marking a significant year-over-year improvement. The company also announced a reduction in operational cash burn and the initiation of new OEM programs. Innoviz recently showcased its latest LiDAR sensors and perception software at CES 2025, highlighting its compatibility with the NVIDIA DRIVE AGX Orin platform, which aims to enhance autonomous driving systems.

In terms of analyst feedback, Rosenblatt Securities upgraded Innoviz’s stock from Neutral to Buy, citing relationships with major OEMs and cost-effective LiDAR technology. However, Cantor Fitzgerald downgraded Innoviz’s stock from Overweight to Neutral, following Innoviz’s recent third-quarter earnings call, citing tempered revenue forecasts and a slower-than-anticipated increase in product shipments.

Innoviz also regained compliance with the Nasdaq Stock Market’s minimum bid price requirement, as confirmed by the Nasdaq Listing Qualifications Staff. These recent developments highlight Innoviz’s continued efforts to advance its technology and solidify its position in the automotive LiDAR market.

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