• Revenue: $6.7 million, above the guidance range of $4 million to $5 million.

• Cash and Cash Equivalents: Approximately $106.4 million at the end of Q2 2024.

• Cash Burn: $21.6 million in Q2 2024, down from $27.6 million in Q2 2023.

• Operating Expenses: $23.3 million in Q2 2024, a decrease of 23% from $30.4 million in Q2 2023.

• Research and Development Expenses: $16.8 million in Q2 2024, down from $23.8 million in Q2 2023.

• Share-Based Compensation: $3.8 million in Q2 2024, compared to $5 million in Q2 2023.

• Guidance for Q3 2024 Revenue: Expected to be in the range of $3.5 million to $5 million.

• Warning! GuruFocus has detected 2 Warning Signs with INVZ.

Release Date: August 07, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Innoviz Technologies Ltd (NASDAQ:INVZ) reported Q2 2024 revenues of $6.7 million, surpassing the guidance range of $4 million to $5 million.

• The company secured an important agreement with a major platform partner to supply LiDAR technology for Level 4 autonomous driving platforms, potentially accelerating business growth.

• Innoviz announced a partnership with The Indoor Lab to supply InnovizTwo LiDARs for airport analytics, expanding their non-automotive market presence.

• The company has made significant progress in reducing cash burn, with a decrease in operational and capital expenditure from $27.6 million in Q2 2023 to $21.6 million in Q2 2024.

• Innoviz continues to enhance its technology, including upgrading its AI perception software, which has received positive feedback from leading OEMs.

Negative Points

• Despite revenue growth, Innoviz's Q3 2024 revenue guidance is lower, ranging from $3.5 million to $5 million, compared to $6.7 million in Q2 2024.

• The company's gross margins remain volatile due to fluctuations in unit volumes and NRE revenues.

• Innoviz faces competitive pressures in pricing, particularly in the short-range LiDAR market.

• The company is still in the process of completing changes to its production processes, which could impact timelines and operational efficiency.

• Innoviz's financial performance is heavily reliant on NRE revenues, which can be inconsistent and affect overall financial stability.

Q & A Highlights

Q: With the L4 platform award announced today, can you help us understand if there are new firm series production awards you're planning to add to your backlog? A: Omer Keilaf, CEO: The programs awarded to the platform will use our LiDARs, and several customers have already opted in. The number of LiDARs per vehicle can vary between 6 to 12, making this a very meaningful addition to our order book, similar to our previous VW announcement.