MicroVision(MVIS) - 2024 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company reported revenue of $0.2 million for Q3 2024, which was lower than expectations due to a delay in sensor delivery from an existing customer [16] - Operating expenses (OpEx) for Q3 were approximately$15 million, including $2.4 million in non-cash stock-based compensation and$1.4 million in depreciation and amortization [17] - Cash used in operating activities decreased by 25% quarter-over-quarter, aligning with expectations [17] - The company has a total liquidity of $234 million, comprising$81 million in cash, $122.6 million available under its ATM facility, and$30 million in convertible note commitments [19][20] Business Line Data and Key Metrics Changes - The industrial segment is seen as a strong opportunity for establishing annual recurring revenue (ARR) streams, with multiple potential customers in various tranches [6][8] - The company is engaged in seven RFQs with automotive OEMs for passenger vehicles, focusing on integrated hardware and software solutions [9] Market Data and Key Metrics Changes - The company expects ASPs for industrial applications to be in the $1,000 to$2,000 range, driven by software offerings [24] - The anticipated unit TAM for 2025 is estimated to be between 10,000 to 30,000 units [24] Company Strategy and Development Direction - The company aims to diversify revenue streams by pursuing significant partnerships in non-automotive industrial channels while waiting for automotive production revenues to ramp up later in the decade [11][48] - The strategy includes scaling down some ASIC programs and focusing on industrial revenue to improve cash flow break-even timelines [17][48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to achieve cash flow break-even faster than peers due to a strong balance sheet and low cash burn rate [21] - The company is optimistic about 2025 and beyond, with expected revenue from LIDAR sensors and NRE projects [21] Other Important Information - The company has secured a two-year $75 million fixed convertible note facility, with the first tranche of$45 million funded at a closing price of $1.33 [13] - The new annual OpEx run rate is expected to be between$48 million and 50 million for 2025 [20] Q&A Session Summary Question: Do ASPs need to change to get the market moving? - Management believes ASPs will be in the 1,000 to $2,000 range, driven by software offerings [24] Question: What is the reasonable unit TAM for 2025? - The estimated range is between 10,000 to 30,000 units [24] Question: What is the pacing of revenues from non-automotive opportunities? - Management indicated a potential ramp in revenue recognition dependent on customer deployment timelines [27] Question: How many players are there in the non-automotive market? - There are multiple potential customers across different tranches, with varying volumes [30] Question: What is the current production capacity? - The current capacity is approximately 45,000 units per year, with the ability to ramp up production if needed [33] Question: What are the main use cases for MicroVision's products in industrial applications? - The products address safety and efficiency issues in environments like warehouses and agriculture [39] Question: How does MicroVision balance pursuing automotive contracts with generating near-term revenue? - The company is focused on industrial applications to reduce cash burn while pursuing automotive opportunities [48] Question: What is the strategy for navigating the Tier 1 supplier landscape? - The company is open to collaborating with Tier 1 suppliers as directed by OEMs, while focusing on providing competitive solutions [50]