Innoviz Technologies Ltd. Q4 FY2023 earnings call

• Q4 2023 was a record quarter with nearly $15M in revenues, up 850% YOY and above quarterly guidance. Full year revenues were nearly $21M, up 246% YOY and above high end of guidance. - Positive customer developments include BMW and Volkswagen progress. BMW working on InnoVizz 1 deployment on 5 Series in China. Volkswagen unveiled ID.Bus program and progress on first award. - Strategic realignment: Concentrated investment on InnoViz two platform, reduced ~13% of headcount, integrated hardware and software R&D, and extended cash runway. - Strong cash performance with Q4 cash burn at $14.5M, a record low since becoming public, ending the year with ~$150M in cash and equivalents.

Full year 2023 revenues were nearly $21 million, up 246% year-over-year. Q4 2023 revenues were nearly $15 million, an increase of nearly 850% year-over-year. The strong revenue performance came from a combination of production revenues, robust sample shipments, and NREs. Full year revenues contributed 246% growth YOY, with Q4 contributing an 850% YOY increase.

• Rolling over 2023 targets into 2024, expecting 2-3 additional programs from existing and new customers. - Anticipate 20-70 million in new NRE bookings in 2024. - Target Q1 2024 revenue of $5-6 million, expecting back half weighted revenues based on seasonality and customer activity. - Focus on InnoViz two SOP, preparing production capacity for late 2025 shipments.

• Geopolitical risks: DoD placing LiDAR companies on 1260 list could affect US companies in Chinese market and vice versa. - Customer decision delays: Delays in new customer program decisions due to technical discussions, interface cybersecurity, and internal team changes.

Q: Comment on how the forward-looking order book has evolved and impact of slower EV sales using LiDAR A: Didn't update order book, main change is addition of ID buzz. LiDAR platform not correlated specifically to EVs as it works on combustion engines too Q: Thoughts on revenue progression over next 2-3 years and customer volume shifts A: Not getting feedback from customers on EV slowdown affecting volumes; LIDAR platform works for both EV and non-EV Q: Shape of 2024 revenue, is Q1 low point A: Expect second half to be more meaningful, but revenues are lumpy so can't specify exact quarters Q: Sense of when majority of $20-70M NRE bookings in 2024 will be recognized A: NRE booking recognized over program lifetime until SOP, difficult to specify exact timing and accounting treatment Q: Path to break even gross margins A: Saw trend of improving margins from Q1 2023 negative ~400% to Q4 2023 negative 15%, hoping trend continues Q: Future capital raising opportunities with $150M liquidity A: Liquidity ended year at $150M, started with $186M, collecting NRE helps balance expenses; several big opportunities ahead that could unlock future growth Q: Details on RFI/RFQ delays A: Delays due to technical discussions on interface cybersecurity requiring strong integration with compute platform, and internal team changes at some OEMs Q: Contract manufacturing strategy and thoughts on own facilities A: Contract manufacturing allows flexibility to support different OEMs in different locations, important for audits by top OEMs. Makes sense currently as building own facility would be less beneficial until volume reaches several million units per year; worked with multiple contract manufacturers, and they provide auditable facilities and flexibility