Innoviz Technologies Ltd. (Nasdaq: INVZ) today provided updates on commercial traction, technology leadership, and corporate development and reported its financial results for the second quarter ended June 30, 2022.
Management Commentary
"We are pleased with the team's execution on our strategic priorities, as we meet or exceed each one of our 2022 milestones. The most important of these milestones, and the foundation of our vision for Innoviz, was to become a Tier-1 supplier in the automotive market. We are proud to have achieved this through our selection as Volkswagen's CARIAD SE ("Volkswagen CARIAD") direct LiDAR supplier for automated vehicles within the Volkswagen brands. This is a testament to our premier products and innovative technology, aligned with our vision to be a world-wide, leading Tier-1 supplier for LiDARs and Perception Software in a fast changing and new automotive world," said Omer Keilaf, CEO and Co-Founder of Innoviz.
"In addition to the milestone Volkswagen CARIAD decision, I'm confident that our Tier-1 capabilities, including our ability to manage mass production manufacturability, automotive-grade quality, hardware validation, and computer vision validation will serve as a differentiating factor as other OEMs select their direct LiDAR supplier. Beyond the automotive industry, we have made important progress to expand our footprint in new geographies and use cases, and have further invested in our technology and perception software."
Commercial Progress
1. Selection by Volkswagen's CARIAD as its direct LiDAR supplier for automated vehicles within the Volkswagen brands.
- Pursuant to the terms of the agreement, Innoviz will provide InnovizTwo LiDAR sensors and perception software to several Volkswagen brands and integrate its perception software with CARIAD automated driving stack, serving the different brands. The new design win increased Innoviz's forward-looking order book to $6.6 billion from $2.6 billion.
- This nomination marks Innoviz's second deal of LiDAR and Perception Software for series production of passenger vehicles by a leading German carmaker; the first being BMW.
- Innoviz is now servicing two of the world's leading German carmakers which together represent 15% of the entire automotive market.
- This nomination is Innoviz's first deal as a Tier-1 supplier for a passenger vehicles program and Innoviz's first deal for its second-generation LiDAR, InnovizTwo.
2. Momentum on multiple world-wide opportunities in the automotive space:
- Expanding our reach to other regions in the world, Innoviz is currently managing 12 automotive RFIs and RFQs at different stages where almost all of them are for passenger vehicle programs, in regions such as US, Asia and EU. Innoviz is offering its solution as a direct Tier-1 supplier.
- Several yearlong opportunities are in discussion and Innoviz expects a decision by 2-3 OEM's in the next 6 months, with the rest to follow in the next 12 months.
3. Ecosystem events:
- Innoviz is hosting an event for partners, customers, and analysts on September 19, 2022. The event will include keynotes speakers, a tour of Innoviz's facilities, including InnovizTwo automated production and test lines, and driving demos. Keynote speakers will include:- Mr. Alejandaro Vukotich, VP of Automotive Product Management at Qualcomm. Qualcomm provides the SnapDragon Ride Platform which has been selected for use by several leading OEMs and Tier-1s.- Dr. Richard Rau, VP of Autonomous Driving, Sensors, Integration Platforms and Cooperations at BMW Group.
- Innoviz and Nvidia were selected to host a 3D perception workshop during the European Conference on Computer Vision (ECCV), a premier event that will run from October 23-27, 2022, in Tel Aviv. Innoviz and NVIDIA's workshop will discuss the unique challenges and advantages associated with the use of 3D data for autonomous driving and identify key requirements for perception software to process large, complex LiDAR datasets.
4. In the second quarter of 2022, Innoviz also expanded its global market share beyond the automotive industry:
- The Company entered into a cooperation with Joowon Industrial, a distributor and supplier of world-class testing equipment, for Joowon to serve as a distributor of a wide range of Innoviz applications across a number of industries, including industrial machinery and heavy equipment in the Korean and other markets.
- Japan Post, a special private company under the jurisdiction of the Japanese Ministry of Internal Affairs and Communications, selected InnovizOne LiDAR sensors to construct digital maps on postal delivery cars, paving the way for next-generation smart city services such as autonomous driving and unmanned delivery. The InnovizOne equipped delivery vehicles will generate detailed digital maps that gather information that include changes in roads and buildings along delivery routes.
Technology Leadership
Innoviz remains focused on investing in technology and perception software. This quarter, the Company made further improvements to its next-generation product, InnovizTwo.
- Innoviz is in process of ramping up the InnovizTwo B1 sample, which is designed to increase performance and volume production. Ramp up, allowing the availability of additional InnovizTwo B1 samples, is targeted for the beginning of 2023.
- Innoviz360 B sample integration is planned for the end of third quarter 2022, and Innoviz expects to demonstrate the first samples of Innoviz360 by the end of this year, as planned. Innoviz360 will help Innoviz expand its market outreach and its total addressable market (TAM).
Corporate Development
In the second quarter 2022, Innoviz announced a series of management team appointments to bolster its sales leadership experience and support its continued growth. The Company named Tali Chen as Chief Business Officer, Scott Craig as Country Manager, U.S., and Brijesh Shukla as Country Manager, Japan.
Second Quarter 2022 Financial Results
Revenues for the second quarter of 2022 were $1.8 million, compared to $1.0 million in the second quarter of 2021. The Company expects InnovizOne sales to continue to increase and it's also targeting to sell the first samples of InnovizTwo later this year.
Operating expenses for the second quarter of 2022 were $28.8 million, a decrease from $70.7 million in the second quarter of 2021. Operating expenses in the second quarter of 2022 included $4.4 million of share-based compensation compared to $49.9 million of share-based compensation in the second quarter of 2021. The decrease in operating expenses in the second quarter of 2022 compared to the second quarter of 2021 was primarily due to a decrease in share-based compensation, partially offset by an increase in headcount during the second quarter of 2022.
Research and development expenses for the second quarter of 2022 were $21.9 million, a decrease from $32.1 million in the second quarter of 2021. Research and development expenses in the second quarter of 2022 included $2.7 million attributable to share-based compensation compared to $17.6 million attributable to share-based compensation in the second quarter of 2021.
Innoviz maintains a high liquidity level with approximately $246 million in cash, short term deposits, restricted cash and marketable securities, as of June 30, 2022.
Guidance
Innoviz is reaffirming its 2022 guidance:
- The Company expects to increase its order book by more than 30% by the end of fiscal year 2022.
- The Company has achieved its expected stated goal to secure 10 pre-production programs during 2022. To date, the Company has participated in 12.
- The Company currently has 12 prospective customers in at different RFI and RFQ stages.
- The Company expects to drive material revenue by the end of 2023 from previously announced series wins with BMW and an L4 autonomous shuttle program, as well as from non-automotive end markets.
Conference Call
Innoviz management will hold a web conference today, August 10, 2022, at 9:00 a.m. Eastern time (6:00 a.m. Pacific time) to discuss these results. 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.