Mobileye Global Inc. (Nasdaq: MBLY) (“Mobileye”) today releases
preliminary FY2023 results and a preliminary financial outlook for
FY2024.
FY2023 and Q4 2023 Preliminary
Financial Results
The table below sets forth preliminary estimated financial
results for our fourth quarter and full year of 2023. We have not
yet finalized our financial results for the fourth quarter and our
actual results could differ from those set forth below as we
complete our financial close and our auditors complete their
audit.
Our preliminary results reflect revenue consistent with the
guidance provided on October 26, 2023 and Operating Income (Loss)
and Adjusted Operating Income that are moderately better than
expected.
Preliminary Results
Full Year 2023
Previous Guidance
Full Year 2023
U.S. dollars in millions
Low
High
Low
High
Revenue
$
2,076
$
2,080
$
2,065
$
2,090
Operating Loss
$
(39
)
$
(33
)
$
(79
)
$
(62
)
Amortization of acquired intangible
assets
$
474
$
474
$
474
$
474
Share-based compensation expense
$
252
$
252
$
253
$
253
Adjusted Operating Income
$
687
$
693
$
648
$
665
Preliminary Results
Q4 2023
Previous Implied
Guidance
Q4 2023
U.S. dollars in millions
Low
High
Low
High
Revenue
$
634
$
638
$
623
$
648
Operating Income
$
67
$
73
$
27
$
44
Amortization of acquired intangible
assets
$
112
$
112
$
112
$
112
Share-based compensation expense
$
62
$
62
$
63
$
63
Adjusted Operating Income
$
241
$
247
$
202
$
219
FY2024 Preliminary Financial
Outlook
As a result of our standard planning process for the upcoming
year, including discussions with our Tier 1 customers to determine
potential orders for 2024, we have become aware of excess inventory
at our customers, which we believe to be 6-7 million units of EyeQ®
SoCs. Based on our discussions, we understand that much of this
excess inventory reflects decisions by Tier 1 customers to build
inventory in the Basic ADAS category due to supply chain
constraints in 2021 and 2022 and a desire to avoid part shortages,
as well as lower than-expected production at certain OEM’s during
2023. As supply chain concerns have eased, we expect that our
customers will use the vast majority of this excess inventory in
the first quarter of the year. As a result, we expect that first
quarter 2024 revenue will be significantly below first quarter 2023
revenues and that we will see revenue normalized during the
remainder of 2024.
In FY2024 we expect total revenue in the range of $1,830 -
$1,960 million. This is underpinned by expected EyeQ® shipments of
31 – 33 million units (as compared to approximately 37m units in
2023) and SuperVision shipments of 175k – 195k units (as compared
to approximately 100k units in 2023).
We currently expect Q1 revenue to be down approximately 50%, as
compared to the $458 million revenue generated in the first quarter
of 2023. We also currently believe that revenue over the balance of
the year will be impacted by inventory drawdowns to a much lesser
extent. As a result, we expect revenue for Q2 through Q4 2024 on a
combined basis to be roughly flat to up mid single-digits as
compared to the same period in 2023, and we expect inventory at our
customers to be at normal levels by the end of 2024.
We anticipate that the lower-than-expected volumes in the EyeQ®
SoC business will have a temporary impact on our profitability.
Similar to revenue, we expect Q1 profit levels to be significantly
below the subsequent quarters. We expect Q1 2024 Operating Loss to
be in the range of $257 to $242 million. Excluding amortization of
intangible assets and stock-based compensation, we expect Adjusted
Operating Loss in the range of $80 to $65 million in the first
quarter of 2023.
We expect FY2024 Operating Loss to be in the range of $468 to
$378 million. We expect Adjusted Operating Income in the range of
$270 - $360 million.
FY 2024
U.S. dollars in millions
Low
High
Revenue
$
1,830
$
1,960
Operating Loss
$
(468
)
$
(378
)
Amortization of acquired intangible
assets
$
444
$
444
Share-based compensation expense
$
294
$
294
Adjusted Operating Income
$
270
$
360
Please see the risks and assumptions referred to in the
Forward-Looking Statements section of this release.
CES presentation and webcast January
9th, 2024
Mobileye will host a live and webcasted presentation by our CEO,
Professor Amnon Shashua, at CES 2024 in Las Vegas on January 9th,
2024 at 11:00 a.m. PT (2:00 p.m. ET). During this presentation we
will provide updates to our technology roadmap as well as discuss
the significant traction for our advanced product portfolio that we
achieved in 2023. The presentation will be accessible live via a
webcast on Mobileye’s investor relations site, which can be found
at ir.mobileye.com, and a replay of the webcast will be made
available shortly after the event’s conclusion.
Forward-Looking Statements
Mobileye’s business outlook, guidance and other statements in
this release that are not statements of historical fact, including
statements about our beliefs and expectations, are forward-looking
statements and should be evaluated as such. Forward-looking
statements include information concerning possible or assumed
future results of operations, including Mobileye’s 2024 preliminary
financial outlook and full-year and fourth quarter 2023 preliminary
financial results, projected future
revenue and descriptions of our business plan and strategies. These
statements often include words such as “anticipate,” “expect,”
“suggests,” “plan,” “believe,” “intend,” “estimates,” “targets,”
“projects,” “should,” “could,” “would,” “may,” “will,” “forecast,”
or the negative of these terms, and other similar expressions,
although not all forward-looking statements contain these words. We
base these forward-looking statements or projections, including
Mobileye’s full-year guidance, on our current expectations, plans
and assumptions that we have made in light of our experience in the
industry, as well as our perceptions of historical trends, current
conditions, expected future developments and other factors we
believe are appropriate under the circumstances and at such time.
You should understand that these statements are not guarantees of
performance or results. The forward-looking statements and
projections are subject to and involve risks, uncertainties and
assumptions and you should not place undue reliance on these
forward-looking statements or projections. Although we believe that
these forward-looking statements and projections are based on
reasonable assumptions at the time they are made, you should be
aware that many factors could affect our actual financial results
or results of operations and could cause actual results to differ
materially from those expressed in the forward-looking statements
and projections.
Important factors that may materially affect such
forward-looking statements and projections include the following:
our preliminary financial outlook and results are not yet finalized
and could differ from those set forth above and are subject to the
completion of its financial closing procedures and any adjustments
arising from the audit of its 2023 financial results; future
business, social and environmental performance, goals and measures;
our anticipated growth prospects and trends in markets and
industries relevant to our business; business and investment plans;
expectations about our ability to maintain or enhance our
leadership position in the markets in which we participate; future
consumer demand and behavior, including expectations about excess
inventory utilization by customers; future products and technology,
and the expected availability and benefits of such products and
technology; development of regulatory frameworks for current and
future technology; projected cost and pricing trends; future
production capacity and product supply; potential future benefits
and competitive advantages associated with our technologies and
architecture and the data we have accumulated; the future purchase,
use and availability of products, components and services supplied
by third parties, including third-party IP and manufacturing
services; uncertain events or assumptions, including statements
relating to our estimated vehicle production and market
opportunity, potential production volumes associated with design
wins and other characterizations of future events or circumstances;
future responses to and effects of the COVID-19 pandemic; adverse
conditions in Israel, including as a result of war and geopolitical
conflict, which may affect our operations and may limit our ability
to produce and sell our solutions; any disruption in our operations
by the obligations of our personnel to perform military service as
a result of current or future military actions involving Israel;
availability, uses, sufficiency and cost of capital and capital
resources, including expected returns to stockholders such as
dividends, and the expected timing of future dividends; tax- and
accounting-related expectations.
The estimates included herein are based on projections of future
production volumes that were provided by our current and
prospective OEMs at the time of sourcing the design wins for the
models related to those design wins. For the purpose of these
estimates, we estimated sales prices based on our management’s
estimates for the applicable product bundles and periods. Achieving
design wins is not a guarantee of revenue, and our sales may not
correlate with the achievement of additional design wins. Moreover,
our pricing estimates are made at the time of a request for
quotation by an OEM (in the case of estimates related to contracted
customers), so that worsening market or other conditions between
the time of a request for quotation and an order for our solutions
may require us to sell our solutions for a lower price than we
initial expected. These estimates may deviate from actual
production volumes and sale prices (which may be higher or lower
than the estimates) and the amounts included for prospective but
uncontracted production volumes may never be achieved. Accordingly,
these estimations are subject to and involve risks, uncertainties
and assumptions and you should not place undue reliance on these
forward-looking statements or projections.
Detailed information regarding these and other factors that
could affect Mobileye’s business and results is included in
Mobileye’s SEC filings, including the company’s Annual Report on
Form 10-K for the year ended December 31, 2022, particularly in the
section entitled “Item 1A. Risk Factors”. Copies of these filings
may be obtained by visiting our Investor Relations website at
ir.mobileye.com or the SEC’s website at www.sec.gov.
Non-GAAP Financial Measures
This press release contains Adjusted Operating Income, which is
a non-GAAP financial measure not presented in accordance with GAAP
and is calculated as Operating Loss less (i) Amortization charges
related to intangible assets consisting of developed technology,
customer relationships, and brands as a result of Intel’s
acquisition of Mobileye in 2017 and the acquisition of Moovit in
2020 and (ii) Share-based compensation expense. We use this
non-GAAP financial measure to make strategic decisions, establish
business plans and forecasts, identify trends affecting our
business, and evaluate performance. For example, we use this
non-GAAP financial measure to assess our pricing and sourcing
strategy, in the preparation of our annual operating budget, and as
a measure of our operating performance. We believe that this
non-GAAP financial measure may be helpful to investors because it
allows for greater transparency into what measures our management
uses in operating our business and measuring our performance, and
enables comparison of financial trends and results between periods
where items may vary independent of business performance. This
non-GAAP financial measure is presented for supplemental
informational purposes only, should not be considered a substitute
for financial information presented in accordance with GAAP, and
may be different from similarly titled non-GAAP measures used by
other companies. A reconciliation of Adjusted Operating Income to
the most directly comparable financial measure presented in
accordance with GAAP is provided above. Investors are encouraged to
review the related GAAP financial measure and the reconciliation of
this non-GAAP financial measure to its most directly comparable
GAAP financial measure.
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version on businesswire.com: https://www.businesswire.com/news/home/20240104756151/en/
Dan Galves Investor Relations investors@mobileye.com Justin Hyde
Media Relations justin.hyde@mobileye.com
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