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Arbe Robotics .(ARBE) - 2024 Q4 - Earnings Call Transcript
ARBEArbe Robotics .(ARBE)2025-03-05 19:57
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Financial Data and Key Metrics Changes - Total revenue in Q4 2024 was 0.1million,downfrom0.1 million, down from 0.35 million in Q4 2023. For the full year 2024, total revenue was 0.8millioncomparedto0.8 million compared to 1.5 million in 2023 [17] - Gross margin loss for Q4 2024 was 0.2million,consistentwithQ42023.Thefullyeargrossmarginlossfor2024was0.2 million, consistent with Q4 2023. The full year gross margin loss for 2024 was 0.8 million compared to a break-even gross margin in 2023 [18] - Operating loss for Q4 2024 was 12.8million,comparedtoalossof12.8 million, compared to a loss of 12.1 million in Q4 2023. The full year operating loss totaled 49.7million,upfrom49.7 million, up from 46.9 million in 2023 [21] - Net loss in Q4 2024 was 12.2million,comparedtoanetlossof12.2 million, compared to a net loss of 9.3 million in Q4 2023. The full year net loss for 2024 was 49.3million,comparedtoalossof49.3 million, compared to a loss of 43.5 million in 2023 [21] Business Line Data and Key Metrics Changes - The company reported a backlog of 0.3 million as of December 31, 2024 [18] - R&D expenses for Q4 2024 were 9 million, up from 8.4 million in Q4 2023. Full year R&D expenses were 35.1 million compared to 34.1millionin2023[20]MarketDataandKeyMetricsChanges−Thecompanyhighlightedsignificantopportunitiesinthenon−automotivemarket,particularlythroughcollaborationswithcompanieslikeSensradandTianyiTransportationTechnology[12]−Thecompanyanticipatesshippingaround5millionimagingradarchipsetsby2030basedoncurrentengagements[13]CompanyStrategyandDevelopmentDirection−ThecompanyisfocusedonadvancingradartechnologyandhasestablishedcollaborationswithmajorplayerslikeNVIDIAandHiRainTechnologiestoenhancevehiclesafetyandautonomy[7][8]−Thecompanyaimstopursuefourdesign−inswithautomakersin2025,withprojectedannualrevenueexpectedtobebetween34.1 million in 2023 [20] Market Data and Key Metrics Changes - The company highlighted significant opportunities in the non-automotive market, particularly through collaborations with companies like Sensrad and Tianyi Transportation Technology [12] - The company anticipates shipping around 5 million imaging radar chipsets by 2030 based on current engagements [13] Company Strategy and Development Direction - The company is focused on advancing radar technology and has established collaborations with major players like NVIDIA and HiRain Technologies to enhance vehicle safety and autonomy [7][8] - The company aims to pursue four design-ins with automakers in 2025, with projected annual revenue expected to be between 2 million and 5million,weightedtowardstheendoftheyear[25]Management′sCommentsonOperatingEnvironmentandFutureOutlook−Managementnotedthatwhilebroadereconomicshiftshaveledtodelaysinautomakers′rolloutofadvanceddriverassistsystems,thetotaladdressablemarketcontinuestoexpand[24]−Thecompanyexpressedconfidenceinitsmarketpotential,supportedbyrecentfundraisinginitiativestotalingnearly5 million, weighted towards the end of the year [25] Management's Comments on Operating Environment and Future Outlook - Management noted that while broader economic shifts have led to delays in automakers' rollout of advanced driver assist systems, the total addressable market continues to expand [24] - The company expressed confidence in its market potential, supported by recent fundraising initiatives totaling nearly 17 million [15] Other Important Information - As of December 31, 2024, the company had 24.6millionincashandequivalents.Followingarecentfundraisinground,thecurrentcashbalanceisapproximately24.6 million in cash and equivalents. Following a recent fundraising round, the current cash balance is approximately 73 million [23][35] Q&A Session Summary Question: What programs are expected to drive 1million−plusrevenuequarterstowardstheendof2025?−Managementidentifiedthreeleadingprojectsinfinalstages:Tianyi(non−automotive),trucksinEurope,andaprojectwithHiRainforaChinesecarmanufacturer,expectingtostartshippingchipsuponfullproduction[31]Question:Whatisthecurrentcashbalanceandsharecountpost−fundraising?−Thecurrentcashbalanceisabove1 million-plus revenue quarters towards the end of 2025? - Management identified three leading projects in final stages: Tianyi (non-automotive), trucks in Europe, and a project with HiRain for a Chinese car manufacturer, expecting to start shipping chips upon full production [31] Question: What is the current cash balance and share count post-fundraising? - The current cash balance is above 70 million, approximately 73million,withasharecountof85.7million[35][38]Question:CanyouprovideanupdateontheChinaEVmarketopportunity?−ThecompanynotedthatChinesecarmanufacturersarefocusingonlaunchingself−drivingservicesandarelookingforradarsolutionstoenhancetheircapabilities[39]Question:WhatisthestatusofdiscussionswithOEMs?−ManagementindicatedthatevaluationswithOEMsareinfinalstages,withthecompanyshortlistedagainstoneortwocompetitors,highlightingadvantagesinperformanceandpricing[45]Question:Whatistheoutlookforoperatingexpensesoverthenextfewyears?−Thecompanyexpectsoperatingexpensestoremainsimilarinthenextcoupleofyears,withadditionalinvestmentsinnext−generationtechnologiesprojectedtoincreaseexpensesby73 million, with a share count of 85.7 million [35][38] Question: Can you provide an update on the China EV market opportunity? - The company noted that Chinese car manufacturers are focusing on launching self-driving services and are looking for radar solutions to enhance their capabilities [39] Question: What is the status of discussions with OEMs? - Management indicated that evaluations with OEMs are in final stages, with the company shortlisted against one or two competitors, highlighting advantages in performance and pricing [45] Question: What is the outlook for operating expenses over the next few years? - The company expects operating expenses to remain similar in the next couple of years, with additional investments in next-generation technologies projected to increase expenses by 5 million to $15 million [47]