SOP and expanded relationship with BMW Group combined with
additional year-to-date commercial momentum underlines the strength
of Innoviz's LiDAR sensor and software platform
TEL
AVIV, Israel , Aug. 2, 2023
/PRNewswire/ -- Innoviz Technologies Ltd. (Nasdaq: INVZ) (the
"Company" or "Innoviz"), a leading Tier-1 direct supplier of
high-performance, automotive grade LiDAR sensors and perception
software, today provided commercial and strategic updates on its
business, reported its financial results for the second quarter
ended June 30, 2023 and raised 2023
financial targets.
Innoviz has achieved Start of Production (SOP) with its first
generation BMW Group program. The first component shipments
intended for production vehicles were shipped in July 2023 and are expected to be installed on BMW
7 Series vehicles available later this year or early 2024.
Innoviz's second SOP launch for 2023 with its shuttle program also
continues to make progress, with production shipments planned for
the coming months.
Additionally, Innoviz today announced an important expansion in
its relationship with the BMW Group. Under a new development
agreement, following BMW Group's requirements, Innoviz will develop
B-samples for an enhanced solution portfolio, including the
InnovizTwo LiDAR, an all-new InnovizCore AI compute module, and a
suite of advanced AI-powered software solutions, which is expected
to include a LiDAR-based Minimum Risk Maneuver (MRM) system. The
B-sample phase of the program is expected to enable the BMW Group
to decide on a serial development agreement with Innoviz that is
anticipated to focus on bringing a new array of advanced automated
capabilities to a broader range of the BMW lineup. Innoviz is
developing the solution as a Tier-1 supplier and is targeting late
2023 or early 2024.
"The opportunity for Innoviz to evolve to a Tier-1 supplier with
another major OEM is an important development for Innoviz, and we
are excited to move to the B-sample stage of the second generation
LiDAR platform with the BMW Group," said Omer Keilaf, Innoviz
Co-Founder and CEO. "We are confident that we can bring a more
powerful solution with an InnovizTwo-based platform, and we are
thrilled to be working on an expanded software suite."
Commercial and Strategic Updates
- Series production unit shipments began in the third quarter
of 2023 – The Company began shipping production units to
the BMW Group's first generation program In July 2023, and the Company's second SOP with its
shuttle program also continues to make progress, with
production shipments planned for the coming months.
- Strong progress with BMW Group on multiple fronts:
- Developing B-samples of new LiDAR platform for second
generation BMW Group automated vehicles – With SOP of BMW's
first generation InnovizOne-based LiDAR platform underway, the
Company is expanding its focus to an all-new second generation
LiDAR platform for the BMW Group based on the InnovizTwo LiDAR. The
new platform is targeting a more robust and higher value software
suite and an expanded hardware lineup. Innoviz seeks to make the
solution available to a broader range and higher volume of
vehicles.
- Additional models and variants for the first generation
platform – The first generation InnovizOne LiDAR platform was
qualified on several vehicle models and variants, in addition to
the BMW 7 Series vehicles. Innoviz is currently working towards
bringing the technology to additional vehicles and markets in the
near-to-medium term.
- Innoviz is growing its software offerings and moving up the
stack:
- Began development of new Minimum Risk Maneuver system –
Innoviz has begun the development of its new MRM offering in
conjunction with the B-sample development program with the BMW
Group.
- More robust and higher value software suite for BMW Group
development phase program – In the second generation LiDAR
program for the BMW Group built around InnovizTwo, the Company will
develop a more robust and higher value perception software package
that can unlock expanded features and more advanced algorithms. We
believe this more powerful and expanded offering will be accretive
to our total dollar content per vehicle.
- New hardware component development can enable further
software growth and expand Innoviz's addressable content per
vehicle:
- New InnovizCore AI Compute Module intended to become a
platform for additional software growth – With the growing
functionality of our software suite, Innoviz is developing a new
compute module called InnovizCore. The product is designed to be a
dedicated AI compute module, capable of hosting larger workloads.
The increased compute power strengthens our newer software
offerings and will serve as a base for future growth. Having a
dedicated AI compute module with a direct connection to a vehicle's
operating system will provide Innoviz with a platform to
potentially do much more on the software side, including
integrating data from other sensors such as the radar or camera,
and integrating over-the-air (OTA) updates.
- New Inertial Measurement Unit (IMU) can improve localization
and offer more data to fuel software growth – In another
example of continued innovation and product development, Innoviz
has begun work to add an IMU to its LiDAR. The IMU is an electronic
device capable of measuring and reporting a vehicle's acceleration,
angular rate and orientation. The functionality enables specific
localization of a vehicle and can help predict the future speed and
trajectory of a vehicle. This data could add a new critical layer
of information for Innoviz's algorithms, including its advanced
Neural Networks and other artificial intelligence based tools that
Innoviz uses for software development.
- Upgraded version of custom ASIC unlocks
increased functionality in InnovizTwo – Innoviz has completed
the development and fabrication of the newest version of its custom
ASIC. The upgraded chip unlocks higher performance,
including potentially extending our LiDAR's maximum detection range
to over 450 meters and delivering a more detailed, higher
resolution point cloud. The first sample units with the new chip
are expected to ship to our light commercial vehicle program
customer in the third or fourth quarter of 2023, and following
automotive qualification of the component, should be approved for
mass production by mid- to late-2024. The upgraded chip enables new
levels of point accuracy and an increased total number of points in
the point cloud, increasing the amount of data available to feed
our AI and machine learning efforts. This can result in an even
stronger software product suite capable of unlocking new features
such as automated driving at higher speeds and in more complex
environments.
- Began shipping units to new light commercial vehicle
program – Innoviz previously announced a new light commercial
vehicle program customer in conjunction with the first quarter 2023
earnings announcement. Sample shipments to that customer began near
the end of the second quarter and are expected to increase in the
second half of 2023. The planned displacement of a development
stage competitor is expected to start in the third quarter of 2023,
and the program continues to track towards a mid-decade SOP.
- Ongoing strength in the Company's RFI/RFQ pipeline
– The total number of programs in the Company's RFI and RFQ
pipeline remains at the high end of the previously disclosed range
of 10-15 programs, with more than five of the programs in the more
advanced RFQ stage.
- Currently working with 8 of the top 10 global automakers
– When combined with Innoviz's existing customers, the Company has
existing awards or is in an active RFI or RFQ sourcing process with
eight out of the top ten global automakers.
Second Quarter 2023 Financial Results
Revenues in Q2 2023 were $1.5
million, up 45% compared to revenues of $1.0 million in Q1 2023 and down 18% compared to
revenues of $1.8 million in Q2
2022. The 45% quarter-over-quarter increase in revenues, was
primarily driven by increased unit sales, which grew 47%
sequentially. The year-over-year decline in revenues was driven
primarily by the progress in the BMW program as it transitioned to
volume production at Magna, the Tier-1 on the program. The
transition includes a shift from selling full LiDAR units to
selling components to Magna at lower production average sales
prices.
Operating expenses in Q2 2023 were $30.4 million, an increase of 6% compared to
operating expenses of $28.8 million
in Q2 2022. Operating expenses for Q2 2023 included $5.0 million of share-based compensation compared
to $4.4 million of share-based
compensation in Q2 2022. The year-over-year increase in operating
expense was driven primarily by higher research and development
expenses, which increased to $23.8
million in Q2 2023 versus $21.9
million in Q2 2022 and was partially offset by lower sales
and marketing expenses. The increase in research and development
expenses was driven primarily by a year-over-year increase in
headcount, leading to higher personnel expenses and share-based
compensation, with Q2 2023 share-based compensation of $3.4 million compared to $2.7 million in Q2 2022.
Liquidity as of June 30,
2023 consisted of approximately $129.6 million in cash and cash equivalents,
short term deposits, short term restricted cash and marketable
securities.
Updating 2023 Financial Targets
The Company is providing the following updated
financial outlook for full year 2023:
- 2023 revenues are now expected to be in the range of
$15-20 million, up from the
previously disclosed range of $12-15
million.
- Total new NRE bookings are now expected to be in the range of
$20-70 million, up from the
previously disclosed range of $20-40
million.
Conference Call
Innoviz management will hold a web conference today,
August 2, 2023, at 9:00 a.m. Eastern time (6:00 a.m. Pacific time) to discuss commercial and
strategic updates, financial results for the second quarter ended
June 30, 2023 and 2023 financial
targets. 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, serving as a
Tier 1 supplier to the world's leading automotive manufacturers and
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
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 projected future
operational and financial results, including Cash Collection from
Customers, revenue and non-recurring engineering (NRE) bookings.
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. "Cash
Collection from Customers" is cash received by the Company from
revenues, advances and NRE bookings as described in the following
sentence. "NRE (Non-recuring Engineering) bookings" is booked
services that may be ordered from Innoviz usually as part of a
program design win and includes, among other things, application
engineering, product adaptation services, testing and validation
services, standards and qualification work and change requests
(usually during the lifetime of a program). The commitment for a
certain NRE is usually provided around the design win and may be
paid based on milestones over the development phase of the project
which may take a few years.
Many factors could cause actual future events, and, in the
case of our forward-looking revenue, Cash Collection from
Customers, and NRE bookings, actual orders or actual payments, 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 possibility that NRE would be set off against
liabilities and indemnities, 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 U.S. Securities
and Exchange Commission ("SEC") on March 9,
2023 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)
|
|
|
|
Six Months
Ended
June
30,
|
|
Three Months
Ended
June
30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
2,476
|
$
|
3,571
|
$
|
1,466
|
$
|
1,797
|
Cost of
revenues
|
|
(9,572)
|
|
(6,084)
|
|
(4,631)
|
|
(3,653)
|
|
|
|
|
|
|
|
|
|
Gross loss
|
|
(7,096)
|
|
(2,513)
|
|
(3,165)
|
|
(1,856)
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Research and
development
|
|
49,888
|
|
44,700
|
|
23,786
|
|
21,939
|
Sales and
marketing
|
|
4,620
|
|
5,381
|
|
2,172
|
|
2,410
|
General and
administrative
|
|
9,169
|
|
9,744
|
|
4,434
|
|
4,415
|
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
|
63,677
|
|
59,825
|
|
30,392
|
|
28,764
|
|
|
|
|
|
|
|
|
|
Operating
loss
|
|
(70,773)
|
|
(62,338)
|
|
(33,557)
|
|
(30,620)
|
|
|
|
|
|
|
|
|
|
Financial income,
net
|
|
5,267
|
|
4,040
|
|
2,491
|
|
2,530
|
|
|
|
|
|
|
|
|
|
Loss before taxes on
income
|
|
(65,506)
|
|
(58,298)
|
|
(31,066)
|
|
(28,090)
|
Taxes on
income
|
|
(468)
|
|
(48)
|
|
(108)
|
|
(28)
|
|
|
|
|
|
|
|
|
|
Net loss
|
$
|
(65,974)
|
$
|
(58,346)
|
$
|
(31,174)
|
$
|
(28,118)
|
|
|
|
|
|
|
|
|
|
Basic and diluted net
loss per ordinary share
|
$
|
(0.48)
|
$
|
(0.43)
|
$
|
(0.23)
|
$
|
(0.21)
|
|
|
|
|
|
|
|
|
|
Weighted average number
of ordinary shares used in
computing basic and
diluted net loss per ordinary share
|
|
136,640,997
|
|
134,607,839
|
|
136,928,039
|
|
134,994,019
|
|
|
|
|
|
|
|
|
|
INNOVIZ
TECHNOLOGIES LTD. AND ITS SUBSIDIARIES
CONSOLIDATED
BALANCE SHEETS
|
|
U.S. dollars in
thousands
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
December
31,
|
|
|
|
2023
|
|
2022
|
|
ASSETS
|
|
(Unaudited)
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
34,331
|
$
|
55,718
|
|
Short term restricted
cash
|
|
52
|
|
236
|
|
Bank
deposits
|
|
62,710
|
|
80,684
|
|
Marketable
securities
|
|
24,639
|
|
41,681
|
|
Trade receivables,
net
|
|
2,382
|
|
1,762
|
|
Inventory
|
|
4,584
|
|
4,236
|
|
Prepaid expenses and
other current assets
|
|
2,400
|
|
3,236
|
|
Total current
assets
|
|
131,098
|
|
187,553
|
|
|
|
|
|
|
|
LONG-TERM
ASSETS:
|
|
|
|
|
|
Marketable
securities
|
|
7,838
|
|
7,840
|
|
Restricted
deposits
|
|
2,508
|
|
2,543
|
|
Property and
equipment, net
|
|
30,744
|
|
30,489
|
|
Operating lease
right-of-use assets, net
|
|
26,528
|
|
26,927
|
|
Other long-term
assets
|
|
83
|
|
81
|
|
Total long-term
assets
|
|
67,701
|
|
67,880
|
|
|
|
|
|
|
|
Total
assets
|
$
|
198,799
|
$
|
255,433
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
Trade
payables
|
$
|
6,993
|
$
|
8,367
|
|
Advances from
customers and deferred revenues
|
|
4,219
|
|
4,082
|
|
Employees and payroll
accruals
|
|
9,379
|
|
8,693
|
|
Accrued expenses and
other current liabilities
|
|
7,170
|
|
7,572
|
|
Operating lease
liabilities
|
|
5,602
|
|
3,720
|
|
Total current
liabilities
|
|
33,363
|
|
32,434
|
|
|
|
|
|
|
|
LONG-TERM
LIABILITIES:
|
|
|
|
|
|
Advances from
customers and deferred revenues
|
|
121
|
|
61
|
|
Operating lease
liabilities
|
|
28,122
|
|
30,201
|
|
Warrants
liability
|
|
467
|
|
720
|
|
Total long-term
liabilities
|
|
28,710
|
|
30,982
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY:
|
|
|
|
|
|
Ordinary Shares of
no-par value
|
|
-
|
|
-
|
|
Additional paid-in
capital
|
|
714,534
|
|
703,851
|
|
Accumulated
deficit
|
|
(577,808)
|
|
(511,834)
|
|
Total
shareholders' equity
|
|
136,726
|
|
192,017
|
|
|
|
|
|
|
|
Total liabilities
and shareholders' equity
|
$
|
198,799
|
$
|
255,433
|
|
|
|
|
|
|
|
INNOVIZ
TECHNOLOGIES LTD. AND ITS SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
U.S.
dollars in thousands
|
|
|
|
|
|
Six Months
Ended
June
30,
|
|
Three Months
Ended
June
30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
(Unaudited)
|
|
(Unaudited)
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
Net loss
|
$
|
(65,974)
|
$
|
(58,346)
|
$
|
(31,174)
|
$
|
(28,118)
|
Adjustments required
to reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
2,954
|
|
4,192
|
|
1,547
|
|
2,044
|
Remeasurement of
warrants liability
|
|
(245)
|
|
(789)
|
|
(245)
|
|
149
|
Change in accrued
interest on bank deposits
|
|
455
|
|
(245)
|
|
(740)
|
|
82
|
Change in marketable
securities
|
|
(237)
|
|
707
|
|
57
|
|
111
|
Share-based
compensation
|
|
10,443
|
|
9,165
|
|
5,143
|
|
4,457
|
Foreign exchange loss,
net
|
|
65
|
|
1,220
|
|
154
|
|
1,223
|
Change in prepaid
expenses and other assets
|
|
1,014
|
|
(3,186)
|
|
590
|
|
(3,193)
|
Change in trade
receivables, net
|
|
(620)
|
|
(562)
|
|
(328)
|
|
29
|
Change in
inventory
|
|
(348)
|
|
(395)
|
|
(451)
|
|
(35)
|
Changes in operating
lease assets and liabilities, net
|
|
202
|
|
(430)
|
|
169
|
|
(652)
|
Change in trade
payables
|
|
(134)
|
|
60
|
|
1,212
|
|
450
|
Change in accrued
expenses and other liabilities
|
|
110
|
|
(1,185)
|
|
(652)
|
|
621
|
Change in employees
and payroll accruals
|
|
686
|
|
(558)
|
|
(93)
|
|
(728)
|
Change in advances
from customers and deferred revenues
|
|
197
|
|
243
|
|
(22)
|
|
159
|
Net cash used in
operating activities
|
|
(51,432)
|
|
(50,109)
|
|
(24,833)
|
|
(23,401)
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
Purchase of property and equipment
|
|
(5,136)
|
|
(5,026)
|
|
(2,779)
|
|
(2,620)
|
Investment in bank
deposits
|
|
(62,000)
|
|
(50,000)
|
|
(62,000)
|
|
(45,000)
|
Withdrawal of bank
deposits
|
|
79,500
|
|
135,000
|
|
-
|
|
105,000
|
Increase in restricted
deposits
|
|
(40)
|
|
(2,580)
|
|
-
|
|
(2,580)
|
Investment in
marketable securities
|
|
(23,004)
|
|
(17,664)
|
|
(15,904)
|
|
(15,489)
|
Proceeds from sales
and maturities of marketable securities
|
|
40,285
|
|
17,664
|
|
26,455
|
|
15,489
|
Net cash provided by
(used in) investing activities
|
|
29,605
|
|
77,394
|
|
(54,228)
|
|
54,800
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
Proceeds from exercise
of options
|
|
227
|
|
293
|
|
107
|
|
205
|
Net cash provided by
financing activities
|
|
227
|
|
293
|
|
107
|
|
205
|
Effect of exchange rate
changes on cash, cash equivalents and restricted cash
|
|
29
|
|
(1,122)
|
|
(97)
|
|
(1,125)
|
Increase (decrease) in
cash, cash equivalents and restricted cash
|
|
(21,571)
|
|
26,456
|
|
(79,051)
|
|
30,479
|
Cash, cash equivalents
and restricted cash at the beginning of the period
|
|
55,954
|
|
24,541
|
|
113,434
|
|
20,518
|
Cash, cash equivalents
and restricted cash at the end of the period
|
$
|
34,383
|
$
|
50,997
|
$
|
34,383
|
$
|
50,997
|
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SOURCE Innoviz Technologies Ltd