MicroVision(MVIS) - 2024 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - For Q4 2024, the company reported revenue of $1.7 million, up from$0.5 million year-over-year, primarily driven by industrial vertical customers [26][27] - The company experienced a cash burn that remains one of the lowest in the marketplace, with a cash balance of $75 million at year-end [24][29] - The company has extended its cash runway into 2026 due to successful financing activities, including a$90 million investment from a strategic partner [24][30] Business Line Data and Key Metrics Changes - The company is focusing on automotive OEM programs with seven RFQs and several custom development proposals, while also engaging in industrial opportunities such as Automated Guided Vehicles (AGVs) and Autonomous Mobile Robots (AMRs) [6][8][10] - The total addressable market (TAM) for industrial applications is lower than automotive, but the company expects faster revenue realization from multi-year programs [11][12] Market Data and Key Metrics Changes - The company noted that automotive OEMs are adjusting their product launch timelines, which has affected revenue expectations [9][21] - The company is actively pursuing opportunities in the defense sector, anticipating increased defense spending under the current administration [14][22] Company Strategy and Development Direction - The company aims to expand its focus on near-term revenue opportunities in industrial and defense sectors while continuing to engage with automotive OEMs [21][24] - The new CTO, Glenn De Vos, emphasizes the importance of delivering a complete perception system and advanced features suitable for various markets, including automotive and defense [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting the potential for significant revenue growth in industrial and defense sectors [24][32] - The company acknowledges the challenges posed by delays in automotive RFQs but remains engaged with customers to navigate these changes [55][56] Other Important Information - The company has secured production commitments from its manufacturing partner, ZedF, to meet anticipated demand in the next 12 to 18 months, estimating demand between $30 million to$50 million [31][50] - The company is exploring strategic opportunities for growth through potential acquisitions in complementary technologies [66] Q&A Session Summary Question: How much of the 1.7 million revenue in Q4 was from commercial shipments versus R&D work? - The 1.7 million was primarily from sensor sales to multiple customers, with minimal NRE expected to be pushed to 2025 [34][35] Question: Are the defense opportunities related to ground-based or aerial objects? - The focus is on ground-based applications, with the company looking to leverage its existing technology for military programs [38][39] Question: What factors delayed the signing of the industrial deal? - The qualification process for industrial customers takes longer due to the complexity of integrating new technology into existing systems [70][72] Question: How does MicroVision plan to compete with FMCW LiDAR technology? - The company believes that while FMCW technology has its advantages, the cost and integration challenges will limit its widespread adoption compared to time-of-flight systems [88][90]