Arbe Robotics .(ARBE)2024-11-27 14:50Financial Data and Key Metrics Changes - Total revenue for Q3 2024 was 0.5 million in Q3 2023 [13] - Backlog as of September 30 was 0.3 million compared to a positive gross margin of 12.4 million, an increase from 12.6 million compared to a net loss of 8.2 million, compared to a loss of 19.1 million [17] Business Line Data and Key Metrics Changes - The company is working with 16 OEMs, with 12 moving to advanced stages and 8 entering advanced perception projects [5] - A leading European truck manufacturer plans to integrate the company's radar into its next-generation sensor suite [6] - HiRain is developing a radar-based ADAS system for a Chinese OEM, with mass production anticipated to begin in Q4 2025 [7] - Sensrad has entered a formal agreement to provide 4D imaging radar powered by the company's chipset to Tianyi Transportation Technology in China [8] Market Data and Key Metrics Changes - Increased interest in radar technology is noted in various new markets, including infrastructure, surveillance, and transportation sectors [9] - The company is expanding its total addressable market within new verticals, driving innovation across multiple industries [10] Company Strategy and Development Direction - The company aims to achieve four design-ins with automakers and is focused on getting its chipset into production [17] - The 2024 annual revenue is expected to be in line with 2023, followed by revenue growth in 2025 [18] - The company successfully completed a public offering of up to $49 million to support production ramp-up in 2025 [11] Management's Comments on Operating Environment and Future Outlook - Management believes that the timeline for some projects has been longer than expected but sees growth opportunities in the coming quarters [6] - The company expects to start shipping engineering samples of its chipset by the end of December 2024, with revenue ramp-up anticipated in the second half of 2025 [31] - Regulatory actions in the U.S. and Europe are pushing for long-range radar imaging for ADAS, which is seen as a major driver for OEM adoption [24] Other Important Information - The executive team will be meeting with investors at CES from January 7 to January 10, showcasing real-time AI-based space mapping [12] Q&A Session Summary Question: Can you give your perspective on the adoption of imaging radar given the delays in ADAS or EV models? - Management noted that the ADAS market has faced delays but is back on track with major production timelines and programs in place [21] Question: Are there any regulatory actions pushing OEMs to adopt imaging radar? - Management highlighted regulations in the U.S. and Europe that are driving the adoption of long-range radar for emergency braking [24] Question: Can you discuss the sales cycle and time to unit revenues in the non-auto market? - Management indicated that while the sales cycle is similar to auto, the time to production is much shorter, with revenues expected in 2025 and 2026 [27] Question: Are you still on track for full production in 2024? - Management confirmed they are on track to start shipping engineering samples by the end of December 2024, with revenue ramp-up expected in late 2025 [31] Question: How dependent are your auto sales on EV vehicles versus traditional combustion engine vehicles? - Management stated that imaging radar can be used in any vehicle, and the decision on ADAS features will depend on OEM plans [32]