indie Semiconductor, Inc. Q3 FY2024 earnings call

• During Q3 2024, revenue was $54 million, above guidance midpoint. Despite automotive industry challenges, indie showed resilience. • Business progress across sectors: ADAS vision processor family driving design wins, radar program on track, LiDAR photonics team securing programs, in-cabin user experience products progressing, smart connectivity lineup gaining engagements. • Strategic backlog increased to $7.1 billion, up over 12% from previous year. • Raja Bal appointed full-time CFO; focus on operational efficiency and expense management review.

In the third quarter of 2024, indie achieved total revenue of $54 million. Non-GAAP gross profit was $27.2 million, resulting in a 50.4% gross margin. Revenue was slightly above the midpoint of the outlook and up 3.1% sequentially. ADAS, in-cabin user experience, and electrification are key segments, with ADAS wins comprising over 72% of the strategic backlog.

• Q4 2024 revenue expected in range of $56 million to $60 million (midpoint $58 million), over 7% sequential growth. • Q4 gross margins roughly flat sequentially. • Anticipated OpEx of $43.5 million in Q4, with $33.5 million R&D and $10 million SG&A. • Anticipated net loss per share of $0.07 at revenue midpoint. • Intensifying focus on operational efficiency and expense management to pull forward profitability.

• Persisting unfavorable global macroeconomic environment and short-term challenges impacting the automotive industry. • Potential delays in program homologation and ramping. • Uncertainty in the automotive market despite long-term drivers like ADAS, safety, and electrification remaining strong.

Q: Could you give a sense of the large radar programs' initial looks into OEM programs and uptake, and explain 'customer homologation'?

A: The radar program is on track with small significant revenue in 2025. Homologation is a fancy word for qualification and approval in automotive.

Q: Can you talk about the specific benefits for indie in terms of product sets and timing of regulations like NHTSA and NCAP?

A: Cars are being designed into regulations for areas like automatic emergency braking and driver monitoring systems, which is a tailwind for indie's product base.

Q: Are there any product areas impacted by cost improvements, and what's the implied revenue run rate for breakeven?

A: No product areas are impacted. Consensus models have indie at roughly $80 million top line to breakeven, and they're comfortable with that for now.

Q: What's the geographic centricity of the backlog and any reduction in content for cheaper vehicles?

A: Backlog is mostly outside China (80%), and there's no current reduction in content for cheaper vehicles as they're deployed in safety-related and mandated applications.

Q: What are the bigger blocks taking us from next year's revenue to the $710 million in 2028?

A: A large percentage of the backlog is driven by ADAS products (vision and radar), with user experience business providing backup.

Q: Thoughts on potential pushouts or delays and use of ATM again?

A: Built in conservatism with no anticipated further use of ATM as they don't anticipate needing it again.