Mobileye Global, Inc. Q3 FY2024 earnings call

• Q3 results aligned with expectations, revenue up 11% QoQ, indicating inventory normalization at customers.
• Operating expenses annualized over $1B in Q3, with adjusted operating expenses expected below Q3 level in 2025.
• Strategic objectives include securing ADAS position, deploying EyeQ5 SuperVision in China, launching EyeQ6 products, deepening customer relationships, and maintaining profitability.
• Showcased detailed technology on YouTube, with Capital Markets Day in Dec featuring real-world demos of EyeQ5 SuperVision and Robotaxi vehicles, and deep dives into EyeQ6 High technologies.

Q3 revenue was up 11% sequentially, with a year-over-year revenue decline fully accounted for by a 9% reduction in EyeQ volumes. Shipments to top 10 customers were down ~4% globally vs. their ~9% production decline in Q3, while volume to top 10 outside China was down ~50%. China OEMs are now a smaller part of the business. In Q3, shipments of EyeQ and SuperVision units into China represented about 20% of overall revenue, excluding SuperVision units for vehicles sold outside China, split as EyeQ to local China OEMs (~3%), EyeQ to non-Chinese OEMs producing in China (12%), and SuperVision for vehicles sold in China (~5%). Q4 China is expected to represent a similar revenue percentage, with SuperVision units for China sales at ~2%.

• Maintained revenue and adjusted operating income guidance at midpoint, narrowing the range. GAAP operating income lower due to goodwill impairment.
• 2024 EyeQ volumes expected 28.4-28.8 million units, SuperVision 110,000-120,000 units. Q4 SuperVision volume ~15,000 units.
• Operating cash flow expected similar in Q4 to Q3. Non-GAAP effective tax rate 18%-20% for 2024.

• Unforeseen headwinds impacting 2024-2025 market expectations.
• Volatility in global auto forecasts affecting 2025 volumes.
• China OEMs remaining a volatile part of the business.
• Competitive pressures in lower-level ADAS and challenges in meeting regulatory/safety standards for higher autonomy levels.

Q: Thoughts on Waymo achieving 150,000 rides per week?

A: Encouraging, but focus on economies of scale and teleoperation to achieve cost efficiency.

Q: EU tariffs on Chinese OEMs?

A: Already reflected in current metrics.

Q: ASP drop in EyeQ?

A: No significant near-term changes, mix volatility due to inventory fluctuations.

Q: Progress on advanced solutions?

A: No material delays, continuing engagements with OEMs with no decisions against Mobileye in past 90 days.

Q: SuperVision volumes in 3Q?

A: ~30,000 units