New customer win in Asia
expands Innoviz's geographic footprint and adds new leading
autonomous driving platform partner
Innoviz grew its forward-looking order book to $6.9 billion, upgraded production throughput,
shipped D-Sample units to customers, and accelerated its momentum
in non-automotive markets
TEL
AVIV, Israel, Nov. 9, 2022
/PRNewswire/ -- Innoviz Technologies Ltd. (NASDAQ: INVZ)
(the "Company" or "Innoviz"), a Tier-1 supplier of
high-performance, solid-state LiDAR sensors and perception
software, today provided updates on commercial progress, technology
leadership, and corporate developments and reported its financial
results for the third quarter ended September 30, 2022.
Management Commentary
"Our results in the third quarter underscore our ongoing
strategic execution and the substantial progress we are making to
strengthen our position as a Tier-1 supplier to the world's top car
makers, along with a rapidly growing list of non-automotive
customers," said Omer Keilaf, CEO of Innoviz. "We are proud
of our latest OEM program win in Asia and our recent customer momentum, having
posted a win in back-to-back quarters. We are encouraged by our
robust pipeline, which includes many of the world's largest OEMs,
in addition to the well-known names that are already in our order
book. We are excited with where Innoviz stands today, and as we
look ahead, we are confident in our ability to maintain our
position as a leader in our industry as we continue to deliver for
our customers."
Commercial Progress
As previously announced on September
8, 2022, an Asia-based, emerging global EV leader selected
Innoviz to serve as its direct LiDAR supplier for series production
passenger vehicles. Innoviz plans to supply the emerging EV leader
with the InnovizTwo LiDAR sensor for its production vehicles,
further strengthening the Company's leadership in L3 automation
around the world.
- The selection represents Innoviz's first win in Asia, fourth major design win and second
consecutive Tier 1 win for series production of passenger vehicles
as a direct LiDAR supplier, validating the Company's strategy to
become a direct supplier.
- We expect this new win, when combined with the two existing
production launches next year, will further support the Company's
ability to grow its revenues meaningfully in the coming years.
- From a geographic standpoint, the design-win expands Innoviz's
global reach and production footprint in Asia, marking an important step in the
Company's platform expansion efforts. We believe it also
strengthens Innoviz's position with other Asian OEM's currently in
the Company's pipeline.
- The deal also marks the Company's first production win with a
new technology partner. Innoviz now has production wins with two of
the industry's three major autonomous driving technology platform
partners, offering an important advantage over competitors in
upcoming customer decision making, as we increasingly become an
off-the-shelf solution for OEMs.
- Following the Company's recent quarterly business progress,
Innoviz is updating its forward-looking order book to $6.9 billion.
Innoviz is accelerating its production and design efforts and
positioning the business to continue growing and delivering for
customers across the automotive space.
- The Company made significant progress towards series production
for customers, moving to the D-sample stage, the final step before
the start of production.
- The Company currently works directly with OEMs representing
roughly 15% of the global market.
- In Q2 2022, Innoviz disclosed 12 programs in the RFI or RFQ
process. With the Company's new Asia-based OEM converted to a full production
customer, it now has 11 OEMs in the RFI and RFQ process and expects
an additional one to three new decisions by OEMs in the next six
months.
- Collectively, the 11 OEM's in the Company's pipeline produce
approximately 40 million vehicles per year, representing an
additional roughly 42% of the global market.
- The Company targeted 10 pre-production programs, one commercial
agreement and a 30% increase in its forward-looking order book in
2022. As of September 30, 2022, the
Company boasts 14 pre-production programs, two commercial
agreements and a 165% year to date increase in its forward-looking
order book.
Technology Leadership
Innoviz remains committed to investing in technology development
and perception software.
- The Company remains on track to introduce the all-new
Innoviz360 at CES in January 2023.
This breakthrough product is expected to unlock exceptional price
and performance metrics for a spinning LiDAR, opening new markets
in both the automotive and non-automotive segments.
Innoviz also remains focused on leveraging the maturity of
InnovizOne to benefit non-automotive segments, expanding its global
market reach further beyond the automotive industry. During the
quarter, Innoviz announced three new strategic projects with
existing and new non-automotive partners:
- Kudan, a 3D digital mapping solutions provider for a broad
range of applications including HD maps, robotics, construction,
surveying, and "digital twinning" and the "industrial
metaverse;"
- Sensagrate, a smart city technology provider that enables
real-time traffic, pedestrian and cyclist safety via intersection
monitoring and analysis; and
- HiRain Technologies, a leading technology solution provider for
the transportation market in China
that provides autonomous trucks and AGVs, as well as Vehicle to
Anything (V2X) applications, to improve operational efficiency,
mitigate risks and enhance worker safety.
Corporate Developments
To better position itself for long-term growth, Innoviz moved
its corporate headquarters to a new facility in Rosh Ha'ayin, Israel. The move included the
Company's Israel-based production
lines, and the resulting downtime and re-installation was used for
meaningful improvements in its systems. These upgrades have
resulted in substantially reduced cycle times and a significant
improvement in throughput for the calibration and testing
processes. The move has eliminated a key bottleneck in the overall
production process that will enable more InnovizOne units to be
sold into non-automotive markets beginning in the fourth quarter of
2022 and ramping into 2023.
Third Quarter 2022 Financial Results
Revenues in the third quarter of 2022 were $0.9 million, compared to $2.1 million in the third quarter of 2021, with
revenues impacted primarily by downtime from the Company's
headquarter move and related testing and calibration system
upgrades. The Company expects InnovizOne sales to normalize in the
fourth quarter of 2022.
Operating expenses in the third quarter of 2022 were
$31.3 million, compared to
$30.0 million in the third quarter of
2021. Operating expenses in the third quarter of 2022 included
$4.9 million of share-based
compensation compared to $8.2 million
of share-based compensation in the third quarter of 2021. The
increase in operating expenses in the third quarter of 2022
compared to the third quarter of 2021 was primarily due to an
increase in head count, partially offset by a decrease in
share-based compensation.
Research and development expenses in the third quarter of 2022
were $24.2 million, an increase from
$20.6 million in the third quarter of
2021. Research and development expenses in the third quarter of
2022 included $3.2 million
attributable to share-based compensation compared to $3.7 million in the third quarter of 2021.
Innoviz maintains a high liquidity level with approximately
$218 million in cash, short term
deposits, short term restricted cash and marketable securities as
of September 30, 2022.
Guidance
Innoviz reaffirms the following 2022 guidance it has previously
provided:
- The Company has achieved its stated goal of winning at least
one new series production award in 2022, and to date has delivered
two.
- The Company expects to increase its forward-looking order book
by more than 30% by the end of 2022 and has already delivered a
165% increase year to date.
- The Company has achieved its expected stated goal to secure 10
pre-production programs during 2022. To date, the Company has
participated in 14.
Conference Call
Innoviz management will hold a web conference today,
November 9, 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.
About Innoviz Technologies
Innoviz is a global leader in LiDAR technology, working towards
a future with safe autonomous vehicles on the world's roads.
Innoviz's LiDAR and perception software "see" better than a human
driver and reduce the possibility of error, meeting the automotive
industry's strictest expectations for performance and safety.
Operating across the U.S., Europe,
and Asia, Innoviz has been
selected by internationally recognized premium car brands for use
in consumer vehicles as well as by other commercial and industrial
leaders for a wide range of use cases. For more information, visit
www.innoviz-tech.com
Join the discussion: Facebook, LinkedIn, YouTube,
Twitter
Media Contact
Media@innoviz-tech.com
Investor Contact (US)
Investor Contact (Israel)
Rob Moffatt
Maya
Lustig
VP, Corporate Development & IR
Director, Investor Relations
Innoviz Technologies
Innoviz Technologies
+1 (203) 665-8644
+972 54 677 8100
Investors@innoviz-tech.com
Investors@innoviz-tech.com
Forward Looking Statements
This announcement contains certain forward-looking statements
within the meaning of the federal securities laws, including
statements regarding the services offered by Innoviz, the
anticipated technological capability of Innoviz's products, the
markets in which Innoviz operates, Innoviz's forward-looking order
book, and Innoviz's projected future results. These forward-looking
statements generally are identified by the words "believe,"
"project," "expect," "anticipate," "estimate," "intend,"
"strategy," "future," "opportunity," "plan," "may," "should,"
"will," "would," "will be," "will continue," "will likely result,"
and similar expressions. Forward-looking statements are
predictions, projections and other statements about future events
that are based on current expectations and assumptions and, as a
result, are subject to risks and uncertainties. "Forward-looking
order book" is the cumulative projected future sales of hardware
and perception software based on current estimates of volumes and
pricing relating to a project. Many factors could cause actual
future events, and, in the case of our forward-looking order book,
actual orders, to differ materially from the forward-looking
statements in this announcement including but not limited to, the
ability to implement business plans, forecasts, and other
expectations, the ability to convert design wins into definitive
orders and the magnitude of such orders, the ability to identify
and realize additional opportunities, and potential changes and
developments in the highly competitive LiDAR technology and related
industries. The foregoing list is not exhaustive. You should
carefully consider such risk and the other risks and uncertainties
described in Innoviz's annual report on Form 20-F filed with the
SEC on March 30, 2022 and other
documents filed by Innoviz from time to time with the SEC. These
filings identify and address other important risks and
uncertainties that could cause actual events and results to differ
materially from those contained in the forward-looking statements.
Forward-looking statements speak only as of the date they are made.
Readers are cautioned not to put undue reliance on forward-looking
statements, and Innoviz assumes no obligation and does not intend
to update or revise these forward-looking statements, whether as a
result of new information, future events, or otherwise. Innoviz
gives no assurance that it will achieve its expectations.
INNOVIZ TECHNOLOGIES
LTD. AND ITS SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
U.S. dollars in
thousands (except share and per share data)
|
|
|
|
Nine Months
Ended
|
|
Three Months
Ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
4,449
|
$
|
3,811
|
$
|
878
|
$
|
2,076
|
Cost of
revenues
|
|
(10,677)
|
|
(5,737)
|
|
(4,593)
|
|
(2,201)
|
|
|
|
|
|
|
|
|
|
Gross loss
|
|
(6,228)
|
|
(1,926)
|
|
(3,715)
|
|
(125)
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Research and
development
|
|
68,862
|
|
69,397
|
|
24,162
|
|
20,576
|
Selling and
marketing
|
|
7,875
|
|
20,834
|
|
2,494
|
|
3,652
|
General and
administrative
|
|
14,341
|
|
30,179
|
|
4,597
|
|
5,753
|
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
|
91,078
|
|
120,410
|
|
31,253
|
|
29,981
|
|
|
|
|
|
|
|
|
|
Operating
loss
|
|
(97,306)
|
|
(122,336)
|
|
(34,968)
|
|
(30,106)
|
|
|
|
|
|
|
|
|
|
Financial income,
net
|
|
4,852
|
|
2,827
|
|
812
|
|
3,735
|
|
|
|
|
|
|
|
|
|
Loss before taxes on
income
|
|
(92,454)
|
|
(119,509)
|
|
(34,156)
|
|
(26,371)
|
Taxes on
income
|
|
(97)
|
|
(132)
|
|
(49)
|
|
(60)
|
|
|
|
|
|
|
|
|
|
Net loss
|
$
|
(92,551)
|
$
|
(119,641)
|
$
|
(34,205)
|
$
|
(26,431)
|
|
|
|
|
|
|
|
|
|
Basic and diluted net
loss per ordinary share
|
$
|
(0.69)
|
$
|
(1.35)
|
$
|
(0.25)
|
$
|
(0.20)
|
|
|
|
|
|
|
|
|
|
Weighted average number
of ordinary shares used
in computing basic and diluted net loss
per ordinary share
|
|
134,939,362
|
|
92,115,826
|
|
135,602,409
|
|
133,430,689
|
|
INNOVIZ TECHNOLOGIES
LTD. AND ITS SUBSIDIARIES
|
CONSOLIDATED BALANCE
SHEETS
|
U.S. dollars in
thousands
|
|
|
|
September
30,
|
|
December
31,
|
|
|
|
2022
|
|
2021
|
|
ASSETS
|
|
(Unaudited)
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
32,593
|
$
|
23,640
|
|
Short term restricted
cash
|
|
723
|
|
901
|
|
Bank
deposits
|
|
135,546
|
|
230,483
|
|
Marketable
securities
|
|
34,602
|
|
11,607
|
|
Trade
receivables
|
|
778
|
|
513
|
|
Inventory
|
|
4,708
|
|
4,256
|
|
Prepaid expenses and
other current assets
|
|
3,254
|
|
3,029
|
|
Total current
assets
|
|
212,204
|
|
274,429
|
|
|
|
|
|
|
|
LONG-TERM
ASSETS:
|
|
|
|
|
|
Marketable
securities
|
|
14,450
|
|
38,289
|
|
Restricted
deposits
|
|
2,509
|
|
-
|
|
Property and
equipment, net
|
|
28,246
|
|
14,502
|
|
Operating lease
right-of-use assets, net
|
|
26,523
|
|
-
|
|
Total long-term
assets
|
|
71,728
|
|
52,791
|
|
Total
assets
|
$
|
283,932
|
$
|
327,220
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
Trade
payables
|
$
|
5,383
|
$
|
5,764
|
|
Advances from
customers and deferred revenues
|
|
1,243
|
|
196
|
|
Employees and payroll
accruals
|
|
9,879
|
|
8,997
|
|
Accrued expenses and
other current liabilities
|
|
8,969
|
|
6,708
|
|
Operating lease
liabilities
|
|
2,557
|
|
-
|
|
Total current
liabilities
|
|
28,031
|
|
21,665
|
|
|
|
|
|
|
|
LONG-TERM
LIABILITIES:
|
|
|
|
|
|
|
|
|
|
|
|
Advances from
customers and deferred revenues
|
|
3,804
|
|
4,517
|
|
Other
liabilities
|
|
-
|
|
597
|
|
Operating lease
liabilities
|
|
29,913
|
|
-
|
|
Warrants
liability
|
|
1,275
|
|
1,639
|
|
Total long-term
liabilities
|
|
34,992
|
|
6,753
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY:
|
|
|
|
|
|
Ordinary Shares of
no-par value
|
|
-
|
|
-
|
|
Additional paid-in
capital
|
|
698,422
|
|
683,764
|
|
Accumulated
deficit
|
|
(477,513)
|
|
(384,962)
|
|
Total
shareholders' equity
|
|
220,909
|
|
298,802
|
|
Total liabilities
and shareholders' equity
|
$
|
283,932
|
$
|
327,220
|
|
|
INNOVIZ TECHNOLOGIES
LTD. AND ITS SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
U.S. dollars in
thousands
|
|
|
|
Nine
Months
Ended
September
30,
|
|
Three
Months
Ended
September
30,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
(Unaudited)
|
|
(Unaudited)
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
$
|
(92,551)
|
$
|
(119,641)
|
$
|
(34,205)
|
$
|
(26,431)
|
|
|
|
|
|
|
|
|
|
Adjustments required
to reconcile net loss to net cash used in
operating activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
5,929
|
|
2,024
|
|
1,737
|
|
699
|
Remeasurement of
warrants liability
|
|
(335)
|
|
(2,744)
|
|
454
|
|
(3,589)
|
Increase in accrued
interest on bank deposits
|
|
(567)
|
|
-
|
|
(322)
|
|
-
|
Remeasurement of
marketable securities
|
|
844
|
|
-
|
|
137
|
|
-
|
Share-based
compensation
|
|
14,097
|
|
59,827
|
|
4,932
|
|
8,165
|
Foreign exchange loss
(gain), net
|
|
1,421
|
|
(137)
|
|
201
|
|
(80)
|
Decrease (increase) in
prepaid expenses and other assets
|
|
(289)
|
|
(1,136)
|
|
2,897
|
|
4,612
|
Decrease (increase) in
trade receivables
|
|
(265)
|
|
1,373
|
|
297
|
|
866
|
Increase in
inventory
|
|
(452)
|
|
(2,447)
|
|
(57)
|
|
(947)
|
Changes in operating
lease assets and liabilities, net
|
|
5,483
|
|
-
|
|
5,913
|
|
-
|
Decrease in trade
payables
|
|
(381)
|
|
(4,361)
|
|
(441)
|
|
(7,131)
|
Increase in accrued
expenses and other liabilities
|
|
283
|
|
1,344
|
|
1,468
|
|
474
|
Increase (decrease) in
employees and payroll accruals
|
|
882
|
|
2,143
|
|
1,440
|
|
(2,019)
|
Increase (decrease) in
advances from customers and deferred revenues
|
|
334
|
|
570
|
|
91
|
|
(968)
|
Net cash used in
operating activities
|
|
(65,567)
|
|
(63,185)
|
|
(15,458)
|
|
(26,349)
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
Purchase of property and equipment
|
|
(17,739)
|
|
(2,998)
|
|
(12,713)
|
|
(864)
|
Investment in bank
deposits
|
|
(79,500)
|
|
(215,000)
|
|
(29,500)
|
|
(20,000)
|
Withdrawal of bank
deposits
|
|
175,000
|
|
30,000
|
|
40,000
|
|
30,000
|
Decrease (increase) in
restricted deposits
|
|
(2,633)
|
|
56
|
|
(53)
|
|
55
|
Net cash provided by
(used in) investing activities
|
|
75,128
|
|
(187,942)
|
|
(2,266)
|
|
9,191
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
Cash received from
Transactions, net of issuance cost
|
|
-
|
|
122,728
|
|
-
|
|
-
|
Issuance of ordinary
shares, net of issuance cost
|
|
-
|
|
217,343
|
|
-
|
|
-
|
Proceeds from exercise
of options
|
|
507
|
|
690
|
|
214
|
|
222
|
Repayment of
loans
|
|
-
|
|
(179)
|
|
-
|
|
(46)
|
Net cash provided by
financing activities
|
|
507
|
|
340,582
|
|
214
|
|
176
|
Effect of exchange rate
changes on cash, cash equivalents and restricted cash
|
|
(1,293)
|
|
216
|
|
(171)
|
|
196
|
Increase (decrease) in
cash, cash equivalents and restricted cash
|
|
8,775
|
|
89,671
|
|
(17,681)
|
|
(16,786)
|
Cash, cash equivalents
and restricted cash at beginning of the period
|
|
24,541
|
|
50,766
|
|
50,997
|
|
157,223
|
Cash, cash equivalents
and restricted cash at end of the period
|
$
|
33,316
|
$
|
140,437
|
$
|
33,316
|
$
|
140,437
|
Logo -
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SOURCE Innoviz Technologies