- Delivers 171% Year-over-Year and 16% Sequential Revenue Growth
to a Record $22.0M
- Expands Non-GAAP Gross Margin to 47.4%, up 710 Basis Points
Year-over-Year and 110 Basis Points Sequentially
- Guides Q2 2022 to a ≥ $100M Annualized Revenue Run-rate with
Further Non-GAAP Gross Margin Expansion
indie Semiconductor, Inc. (Nasdaq: INDI), an Autotech solutions
innovator, today announced first quarter results for the period
ended March 31, 2022. First quarter revenue was up 171 percent from
the same period a year ago and 16 percent sequentially to a record
$22.0 million, at the high end of the Company’s prior guidance
range and exceeding analyst consensus estimates. Non-GAAP gross
margin expanded 710 basis points year-over-year and 110 basis
points sequentially to 47.4 percent, better than indie’s 47.0
percent guidance for the quarter. On a GAAP basis, first quarter
2022 operating loss was $34.3 million compared to $8.1 million in
the year ago timeframe. Non-GAAP operating loss for the first
quarter of 2022 was $16.5 million versus $7.6 million during the
same period last year, reflecting increasing customer-driven
R&D and marketing investments as well as incremental public
company infrastructure costs.
“indie is off to a great start in 2022, delivering record first
quarter revenue fueled by growing demand for our highly innovative
Autotech solutions,” said Donald McClymont, indie’s chief executive
officer. “Our outperformance versus the industry in the face of
continued supply chain headwinds reflects indie’s differentiated
product portfolio and our team’s ability to obtain committed
volumes from our strategic supply partners. At a higher level, we
are well positioned to capitalize on several powerful automotive
megatrends, including ADAS, enhanced user experience and
electrification. We believe our deeper R&D investments coupled
with successful acquisition integrations will leverage the indie
platform to accelerate growth, enable us to become the leading
provider of edge sensors across all key modalities and, in turn,
create shareholder value.”
Q1 Business Highlights
- Commenced sampling of Surya™, a highly integrated LiDAR SoC,
augmented by TeraXion’s world class lasers and sensors
- Expanded design win pipeline for wired and wireless charging
automotive solutions
- Captured user experience content at one of the leading US
automotive OEMs
- Extended global reach with the opening of sales and technical
support centers of excellence in Japan and South Korea
- Closed carve-out of Analog Devices’ Symeo radar product
development team and 140 related patents and applications
Q2 2022 Outlook
We provide earnings guidance on a non-GAAP basis only because
certain information necessary to reconcile such guidance to GAAP is
difficult to estimate and dependent on future events outside of our
control. Please refer to the attached Discussion Regarding the Use
of Non-GAAP Financial Measures in this press release for a further
discussion of our use of non-GAAP measures, including
quantification of known expected adjustment items.
“Given strong order visibility, set customer ramps and new
product launches, we plan to sustainably outpace indie’s
addressable markets over the forecast horizon,” said Thomas
Schiller, indie’s chief financial officer and executive vice
president of strategy. “Specifically, for the second quarter of
2022, we anticipate accelerating top-line growth on the order of
172 to 183 percent year-over-year with non-GAAP gross margin
expansion into the 48 percent range. At the mid-point of our
revenue guidance, indie will be on a greater than $100 million
annualized run-rate. Further, based on our design win momentum and
planned operating leverage, we remain on track to achieve
profitability in the second half of next year, representing another
key milestone toward our target model of 60 percent gross and 30
percent operating margins.”
indie’s Q1 2022 Conference Call
indie Semiconductor will host a conference call with analysts to
discuss its first quarter 2022 results and business outlook today
at 5:00 p.m. Eastern time. To listen to the conference call via the
Internet, please go to the Financials tab on the Investors page of
indie’s website. To listen to the conference call via telephone,
please call (877) 451-6152 (domestic) or (201) 389-0879
(international), Conference ID: 13728667.
A replay of the conference call will be available beginning at
9:00 p.m. Eastern time on May 12, 2022 until 9:00 p.m. Eastern time
on May 26, 2022 under the Financials tab on the Investors page of
indie’s website, or by calling (844) 512-2921 (domestic) or (412)
317-6671 (international), Conference ID: 13728667.
About indie
indie is empowering the Autotech revolution with next generation
automotive semiconductors and software platforms. We focus on edge
sensors spanning multiple modalities including LiDAR, radar,
ultrasound and vision for Advanced Driver Assistance Systems
(ADAS), autonomous vehicles, connected car, user experience and
electrification applications. These technologies represent the core
underpinnings of both electric and autonomous vehicles, while the
advanced user interfaces transform the in-cabin experience to
mirror and seamlessly connect to the mobile platforms we rely on
every day. We are an approved vendor to Tier 1 partners and our
solutions can be found in marquee automotive OEMs around the world.
Headquartered in Aliso Viejo, CA, indie has design centers and
sales offices in Austin, TX; Boston, MA; Detroit, MI; San Francisco
and San Jose, CA; Budapest, Hungary; Dresden and Munich, Germany;
Edinburgh, Scotland; Haifa, Israel; Quebec City, Canada; Tokyo,
Japan; Seoul, South Korea and several locations throughout
China.
Please visit us at www.indiesemi.com to learn more.
Safe Harbor Statement
This communication contains “forward-looking statements”
(including within the meaning of Section 21E of the United States
Securities Exchange Act of 1934, as amended, and Section 27A of the
Securities Act of 1933, as amended). Such statements include, but
are not limited to, statements regarding our future business and
financial performance and prospects, other statements identified by
words such as “will likely result,” “expect,” “anticipate,”
“estimate,” “believe,” “intend,” “plan,” “project,” “outlook,”
“should,” “could,” “may” or words of similar meaning, our ability
to substantially outpace our addressable markets and drive further
gross margin expansion, our guidance regarding top line growth and
non-GAAP gross margin, our belief that our deeper investments and
targeted acquisitions are setting the stage for accelerating growth
in 2022 and positioning indie to become the leading provider of
edge sensors spanning LiDAR, radar, ultrasound and vision
applications and our belief we are well positioned to capitalize on
several powerful automotive megatrends, including ADAS, enhanced
user experience and electrification. Such forward-looking
statements are based upon the current beliefs and expectations of
our management and are inherently subject to significant business,
economic and competitive uncertainties and contingencies, many of
which are difficult to predict and generally beyond our control.
The preliminary unaudited financial results for our first quarter
2022 included in this press release represent the most current
information available to management. Our actual results when
disclosed in the Form 10-Q may differ from these preliminary
results as a result of the completion of our financial closing
procedures; final adjustments; completion of the review by our
independent registered accounting firm; and other developments that
may arise between now and the disclosure of the final results. In
addition to the factors previously disclosed in our Annual Report
on Form 10-K for the fiscal year ended December 31, 2021 filed with
the SEC on April 11, 2022 and in our other public reports filed
with the SEC (including those identified under “Risk Factors”
therein), the following factors, among others, could cause actual
results and the timing of events to differ materially from the
anticipated results or other expectations expressed in the
forward-looking statements: the impact of the COVID-19 pandemic;
the impact of Russia’s invasion of Ukraine; our reliance on
contract manufacturing and outsourced supply chain and the
availability of semiconductors and manufacturing capacity;
competitive products and pricing pressures; our ability to win
competitive bid selection processes and achieve additional design
wins; the impact of any acquisitions we may make, including our
ability to successfully integrate acquired businesses and risks
that the anticipated benefits of any acquisitions may not be fully
realized or take longer to realize than expected; our ability to
develop, market and gain acceptance for new and enhanced products
and expand into new technologies and markets; trade restrictions
and trade tensions; and political or economic instability in our
target markets. All forward-looking statements in this press
release are expressly qualified in their entirety by the foregoing
cautionary statements.
Investors are cautioned not to place undue reliance on the
forward-looking statements in this press release, which information
set forth herein speaks only as of the date hereof. We do not
undertake, and we expressly disclaim, any intention or obligation
to update any forward-looking statements made in this announcement
or in our other public filings, whether as a result of new
information, future events or otherwise, except as required by
law.
INDIE SEMICONDUCTOR,
INC.
PRELIMINARY CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except
share and per share amounts)
(Unaudited)
Three Months Ended
March 31,
2022
2021
Revenue:
Product revenue
$
18,086
$
7,483
Contract revenue
3,913
631
Total revenue
21,999
8,114
Operating expenses:
Cost of goods sold
14,192
4,848
Research and development
29,499
8,677
Selling, general, and administrative
12,642
2,695
Total operating expenses
56,333
16,220
Loss from operations
(34,334
)
(8,106
)
Other income (expense), net:
Interest income
33
7
Interest expense
(58
)
(620
)
Gain (loss) from change in fair value of
SAFEs
—
19,100
Gain (loss) from change in fair value of
warrants
47,353
—
Gain (loss) from change in fair value of
earn-out liabilities
83
—
Other expense
(30
)
(7
)
Total other income, net
47,381
18,480
Net income before income taxes
13,047
10,374
Income tax benefit (provision)
659
(13
)
Net income
13,706
10,361
Less: Net income (loss) attributable to
noncontrolling interest
2,873
(454
)
Net income attributable to indie
Semiconductor, Inc.
$
10,833
$
10,815
Net income attributable to common shares —
basic
$
10,833
$
5,443
Net income (loss) attributable to common
shares — diluted
$
10,833
$
(13,657
)
Net income per share attributable to
common shares — basic
$
0.10
$
0.17
Net income (loss) per share attributable
to common shares — diluted
$
0.07
$
(0.35
)
Weighted average common shares outstanding
— basic (1)
111,189,340
32,284,863
Weighted average common shares outstanding
— diluted (1)
147,396,772
39,218,016
(1)
- Retroactively restated to give
effect to reverse recapitalization.
INDIE SEMICONDUCTOR,
INC.
PRELIMINARY CONDENSED
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
(Unaudited)
March 31, 2022
December 31,
2021
Assets
Current assets:
Cash and cash equivalents
$
192,979
$
219,081
Restricted cash
383
383
Accounts receivable, net
16,064
13,842
Inventory, net
10,835
9,080
Prepaid expenses and other current
assets
6,821
5,648
Total current assets
227,082
248,034
Property and equipment, net
12,093
11,090
Intangible assets, net
104,785
96,285
Goodwill
131,147
115,206
Operating lease right-of-use assets
12,553
—
Other assets and deposits
297
270
Total assets
$
487,957
$
470,885
Liabilities and stockholders' equity
Accounts payable
$
6,770
$
5,441
Accrued payroll liabilities
4,700
4,021
Accrued expenses and other current
liabilities
24,718
14,622
Intangible asset contract liability
5,705
5,516
Deferred revenue
2,845
1,840
Current debt obligations
12,262
2,275
Total current liabilities
57,000
33,715
Long-term debt, net of current portion
5,306
5,618
Warrant liability
53,114
100,467
Intangible asset contract liability, net
of current portion
11,306
12,452
Deferred tax liabilities, non-current
24,907
21,164
Operating lease liability, non-current
10,527
—
Other long-term liabilities
8,537
5,612
Total liabilities
$
170,697
$
179,028
Commitments and contingencies
Stockholders' equity
Preferred stock
$
—
$
—
Class A common stock
11
11
Class V common stock
3
3
Additional paid-in capital
523,972
514,891
Accumulated deficit
(189,583
)
(200,416
)
Accumulated other comprehensive loss
(580
)
(1,443
)
indie's stockholders' equity
333,823
313,046
Noncontrolling interest
(16,563
)
(21,189
)
Total stockholders' equity
317,260
291,857
Total liabilities and stockholders'
equity
$
487,957
$
470,885
INDIE SEMICONDUCTOR, INC. RECONCILIATION OF
PRELIMINARY NON-GAAP MEASURES TO GAAP (Unaudited)
GAAP refers to financial information presented in accordance
with U.S. Generally Accepted Accounting Principles. This
announcement includes historical non-GAAP financial measures, as
defined in Regulation G promulgated by the Securities and Exchange
Commission. We believe that our presentation of historical non-GAAP
financial measures provides useful supplementary information to
investors. The presentation of historical non-GAAP financial
measures is not meant to be considered in isolation from or as a
substitute for results prepared in accordance with GAAP.
The reconciliations of our preliminary GAAP basis financial data
to non-GAAP measures are as follows (in thousands, except share and
per share amounts):
Three Months Ended
March 31,
2022
2021
Computation of non-GAAP gross margin:
GAAP revenue
$
21,999
$
8,114
GAAP cost of goods sold
14,192
4,848
Acquisition-related expenses
(2,622
)
—
Non-GAAP gross profit
$
10,429
$
3,266
Non-GAAP gross margin
47.4
%
40.3
%
Three Months Ended
March 31,
2022
2021
Computation of non-GAAP operating
loss:
GAAP loss from operations
$
(34,334
)
$
(8,106
)
Acquisition-related expenses
5,451
526
Share-based compensation
12,415
—
Non-GAAP operating loss
$
(16,468
)
$
(7,580
)
Three Months Ended
March 31,
2022
2021
Computation of non-GAAP net loss:
GAAP Net income
$
13,706
$
10,361
Acquisition-related expenses
5,451
579
Share-based compensation
12,415
—
(Gain) loss from change in fair value of
SAFEs
—
(19,100
)
(Gain) loss from change in fair value of
warrants
(47,353
)
—
(Gain) loss from change in fair value of
earn-out liabilities
(83
)
—
Other expense
30
7
Non-cash interest expense
—
48
Income taxes (benefits) provision
(659
)
13
Non-GAAP net loss
$
(16,493
)
$
(8,092
)
Three Months Ended March 31,
2022
Computation of non-GAAP share count:
Issued and outstanding Class A common
stock
114,977,679
Escrow Shares
1,725,000
TeraXion Unexercised Options
1,299,292
ADK Minority Holders interests
30,119,812
Non-GAAP share count
148,121,783
Non-GAAP net loss
$
(16,493
)
Non-GAAP net loss per share
$
(0.11
)
Discussion Regarding the Use of Non-GAAP
Financial Measures
Our earnings release contains some or all of the following
financial measures that have not been calculated in accordance with
United States Generally Accepted Accounting Principles (“GAAP”):
(i) non-GAAP gross profit and gross margin, (ii) non-GAAP operating
loss, (iii) non-GAAP net income (loss), (iv) non-GAAP share count
and (v) non-GAAP net loss per share. As set forth in the “Unaudited
Reconciliations of Non-GAAP Financial Measures” table, we derive
such non-GAAP financial measures by excluding certain expenses and
other items from the respective GAAP financial measure that is most
directly comparable to each non-GAAP financial measure. Management
may use these non-GAAP financial measures to, amongst other things,
evaluate operating performance and compare it against past periods
or against peer companies, make operating decisions, forecast for
future periods and to determine payments under compensation
programs. These non-GAAP financial measures provide management with
additional means to understand and evaluate the operating results
and trends in our ongoing business by eliminating certain expenses
and other items that management believes might otherwise make
comparisons of our ongoing business with prior periods and
competitors more difficult, obscure trends in ongoing operations or
improve management’s ability to forecast future periods.
We provide investors with non-GAAP gross profit and gross
margin, non-GAAP operating loss, non-GAAP net income (loss) and
non-GAAP net income (loss) per share because we believe it is
important for investors to be able to closely monitor and
understand changes in our ability to generate income from ongoing
business operations. We believe these non-GAAP financial measures
give investors an additional method to evaluate historical
operating performance and identify trends, an additional means of
evaluating period-over-period operating performance and a method to
facilitate certain comparisons of our operating results to those of
our peer companies. We further believe these non-GAAP financial
measures allow investors to assess the overall financial
performance of our ongoing operations by eliminating the impact of
(i) acquisition-related expenses (including acquisition-related
professional fees and legal expenses, deemed compensation expense,
amortization of acquisition-related intangibles and expenses
recognized in relation to changes in contingent consideration
obligations), (ii) gains or losses recognized in relation to
changes in the fair value of the simple agreements for future
equity (“SAFEs”), warrants and contingent considerations issued by
indie, and unrealized gains or losses from currency hedging
contracts (iii) non-cash interest expenses related to the
amortization of debt discounts and issuance costs, (iv) share-based
compensation, (v) gains and losses from extinguishment of debt and
(vi) non-cash tax expenses. We believe that disclosing these
non-GAAP financial measures contributes to enhanced financial
reporting transparency and provides investors with added clarity
about complex financial performance measures.
We do not report a GAAP measure of gross profit or gross margin
because certain costs related to contract revenues are expensed as
incurred and included in research and development expenses, and not
in cost of sales, as it is not practicable for us to bifurcate
these expenses. We derive and reconcile non-GAAP gross profit from
the most relevant GAAP financial measures by subtracting cost of
sales, adjusted for acquisition-related expenses, from revenue. We
calculate non-GAAP operating loss by excluding from GAAP operating
loss, any (i) acquisition-related expenses (including
acquisition-related professional fees and legal expenses, deemed
compensation expense, amortization of acquisition-related
intangibles and expenses recognized in relation to changes in
contingent consideration obligations) and share-based compensation.
We calculate non-GAAP net income (loss) by excluding from GAAP net
income (loss), any (i) acquisition-related expenses (including
acquisition-related professional fees and legal expenses, deemed
compensation expense, and amortization of acquisition-related
intangibles and expenses recognized in relation to changes in
contingent consideration obligations), (ii) gains or losses
recognized in relation to change in the fair value of the simple
agreements for future equity (“SAFEs”), warrants and contingent
considerations issued by indie, (iii) non-cash interest expenses
related to the amortization of debt discounts and issuance costs,
(iv) share-based compensation, (v) gains and losses from the
extinguishment of debt, and (vi) non-cash tax expenses. We
calculate non-GAAP share count by adding to GAAP weighted average
common shares outstanding: (i) Escrow Shares and (ii) ADK Minority
Holders interest, which represents all shares issuable to vested
minority equity interests held in Ay Dee Kay LLC upon exchange for
indie Class A shares as described in the Form 10-Q. Non-GAAP net
income (loss) per share is calculated by non-GAAP income (loss)
divided by non-GAAP share count.
We exclude the items identified above from the respective
non-GAAP financial measure referenced above for the reasons set
forth with respect to each such excluded item below:
Acquisition-related expenses - including such items as, when
applicable, amortization of acquired intangible assets, fair value
adjustments to contingent consideration, fair value charges
incurred upon the sale of acquired inventory, and
acquisition-related professional fees and legal expenses because
they are not considered by management in making operating decisions
and we believe that such expenses do not have a direct correlation
to our future business operations and thereby including such
charges do not necessarily reflect the performance of our ongoing
operations for the period in which such charges or reversals are
incurred.
Share-based compensation - related to the non-cash compensation
expense associated with equity awards granted to our employees.
These expenses are not considered by management in making operating
decisions and such expenses do not have a direct correlation to our
future business operations.
Gain (loss) from change in fair values - because these
adjustments (1) are not considered by management in making
operating decisions, (2) are not directly controlled by management,
(3) do not necessarily reflect the performance of our ongoing
operations for the period in which such charges are recognized and
(4) can make comparisons between peer company performance less
reliable.
Non-cash interest expense - related to the amortization of debt
discounts, warrants, and issuance costs because (1) these expenses
are not considered by management in making decision with respect to
financing decisions, and (2) these generally reflect non-cash
costs.
Gain from extinguishment of debt - related to the gain from the
PPP loan forgiveness and partially offset by the one-time debt
termination fees and the acceleration of unamortized debt discounts
and issuance costs as a result of the payoff of debt obligations.
This net gain is not reflective of management’s operation decisions
and are not expected to recur.
Other income (expense) - primarily related to an unrealized gain
(loss) that represented the change in exchange rate between
contract issuance date and period-end for a currency forward
contract.
Income tax benefits (provisions) - because such benefits
(charges) do not result in a current period tax refunds
(payments).
The non-GAAP financial measures presented should not be
considered in isolation and are not an alternative for the
respective GAAP financial measure that is most directly comparable
to each such non-GAAP financial measure. Investors are cautioned
against placing undue reliance on these non-GAAP financial measures
and are urged to review and consider carefully the adjustments made
by management to the most directly comparable GAAP financial
measures to arrive at these non-GAAP financial measures. Non-GAAP
financial measures may have limited value as analytical tools
because they may exclude certain expenses that some investors
consider important in evaluating our operating performance or
ongoing business performance. Further, non-GAAP financial measures
are likely to have limited value for purposes of drawing
comparisons between companies as a result of different companies
potentially calculating similarly titled non-GAAP financial
measures in different ways because non-GAAP measures are not based
on any comprehensive set of accounting rules or principles.
To the extent our disclosures contain forward-looking estimates
of non-GAAP financial measures, these measures are provided to
investors on a prospective basis for the same reasons (set forth
above) we provide them to investors on a historical basis. We are
generally unable to provide a reconciliation of our forward-looking
non-GAAP measures because certain information needed to make a
reasonable forward-looking estimate of such non-GAAP measures are
difficult to predict and estimate and is often dependent on future
events that may be uncertain or outside of our control. Such events
may include unanticipated changes in our GAAP effective tax rate,
unanticipated one-time charges related to asset impairments (fixed
assets, inventory, intangibles, or goodwill), unanticipated
acquisition-related expenses, unanticipated settlements, gains,
losses and impairments and other unanticipated items not reflective
of ongoing operations. Our forward-looking estimates of both GAAP
and non-GAAP measures of our financial performance may differ
materially from our actual results and should not be relied upon as
statements of fact.
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