Arbe Robotics Ltd. Q1 FY2025 earnings call

• During Q1, made progress in Europe with potential design wins with leading OEMs and secured radar systems orders for advanced data collection. - HiRain launched LRR615, a production intent long range imaging radar system in China. - Tier 1 Sensrad placed order for over 1,000 imaging radar chips. - Collaborated with NVIDIA, featuring integration at CES 2025. - Showcased advanced radar solution at premier automotive trade shows. - Raised $33 million in Jan 2025 via underwriting registered direct offering and $21.5 million released from escrow.

Revenue for Q1 2025 was $0.04 million compared to $0.1 million in Q1 2024. Backlog as of March 31, 2025 was $0.25 million. Gross profit for Q1 2025 was negative $0.3 million, unchanged from Q1 2024. Total operating expenses for Q1 2025 were $13.1 million compared to $12.5 million in Q1 2024. Operating loss for Q1 2025 was $13.4 million compared to $12.8 million in Q1 2024. Adjusted EBITDA loss was $9.7 million in Q1 2025 compared to $8.5 million in Q1 2024. Net loss in Q1 2025 was $13.8 million compared to $12.8 million in Q1 2024. As of March 31, 2025, Arbe held $36.7 million in cash and cash equivalents and short-term bank deposits and $35.2 million in long-term bank deposits.

• Arbe's radar technology remains a priority for automotive decision makers. - Recent cash infusion of $70 million underscores investor confidence. - Despite short-term delays in automakers' ADAS rollout, continue engaging with industry leaders. - Goal to pursue 4 design-ins with automakers in 2025. - 2025 revenue expected $2M-$5M weighted to end of year. - Adjusted EBITDA for 2025 projected $29M loss to $35M loss.

Short-term economic shifts have led to delays in automakers' rollout of advanced driver assist systems, extending decision timelines.

Q: Please outline in more detail negotiations with OEMs and why wins expected in second half of year?

A: Arbe works with Magna and OEMs in Europe, Magna delivered systems for data collection, solutions are final and ready for selection.

Q: Which geographies are OEMs headquartered in?

A: Europe.

Q: Momentum in industrial applications?

A: Partnered with Sensrad for industrial applications, they handle sales with low volume per application.

Q: Discussions with OEMs and delays?

A: Tariff issues caused delays, but closer to agreement now.

Q: China partnerships and auto processor companies?

A: Working with Horizon Robotics and HiRain, HiRain is the channel to robotaxis companies in China.

Q: Tape-out expense, R&D number, North America timeline, gross margin?

A: Tape-out expense in Q1, OpEx burn for year ~$32M-$34M, R&D ~$25M annually; North America revenue expected in 2028; gross margin in ramp-up ~30%-35% initially, ramping to 50%-60%.