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Innoviz Reports Second-Quarter 2023 Results and Increases 2023 Financial Targets Following Continued Commercial Momentum

TEL AVIV, Israel, Aug. 2, 2023 — (PRNewswire) —   Innoviz Technologies Ltd. (Nasdaq: INVZ) (the "Company" or "Innoviz"), a leading Tier-1 direct supplier of high-performance, automotive grade LiDAR sensors and perception software, today provided commercial and strategic updates on its business, reported its financial results for the second quarter ended June 30, 2023 and raised 2023 financial targets.

Innoviz Technologies Logo

Innoviz has achieved Start of Production (SOP) with its first generation BMW Group program. The first component shipments intended for production vehicles were shipped in July 2023 and are expected to be installed on BMW 7 Series vehicles available later this year or early 2024. Innoviz's second SOP launch for 2023 with its shuttle program also continues to make progress, with production shipments planned for the coming months. 

Additionally, Innoviz today announced an important expansion in its relationship with the BMW Group. Under a new development agreement, following BMW Group's requirements, Innoviz will develop B-samples for an enhanced solution portfolio, including the InnovizTwo LiDAR, an all-new InnovizCore AI compute module, and a suite of advanced AI-powered software solutions, which is expected to include a LiDAR-based Minimum Risk Maneuver (MRM) system. The B-sample phase of the program is expected to enable the BMW Group to decide on a serial development agreement with Innoviz that is anticipated to focus on bringing a new array of advanced automated capabilities to a broader range of the BMW lineup. Innoviz is developing the solution as a Tier-1 supplier and is targeting late 2023 or early 2024.

"The opportunity for Innoviz to evolve to a Tier-1 supplier with another major OEM is an important development for Innoviz, and we are excited to move to the B-sample stage of the second generation LiDAR platform with the BMW Group," said Omer Keilaf, Innoviz Co-Founder and CEO. "We are confident that we can bring a more powerful solution with an InnovizTwo-based platform, and we are thrilled to be working on an expanded software suite."

Commercial and Strategic Updates

- Series production unit shipments began in the third quarter of 2023 – The Company began shipping production units to the BMW Group's first generation program In July 2023, and the Company's second SOP with its shuttle program  also continues to make progress, with production shipments planned for the coming months.

- Strong progress with BMW Group on multiple fronts:

- Innoviz is growing its software offerings and moving up the stack:

- New hardware component development can enable further software growth and expand Innoviz's addressable content per vehicle:

- Began shipping units to new light commercial vehicle program – Innoviz previously announced a new light commercial vehicle program customer in conjunction with the first quarter 2023 earnings announcement. Sample shipments to that customer began near the end of the second quarter and are expected to increase in the second half of 2023. The planned displacement of a development stage competitor is expected to start in the third quarter of 2023, and the program continues to track towards a mid-decade SOP.

- Ongoing strength in the Company's RFI/RFQ pipeline – The total number of programs in the Company's RFI and RFQ pipeline remains at the high end of the previously disclosed range of 10-15 programs, with more than five of the programs in the more advanced RFQ stage.

Second Quarter 2023 Financial Results

Revenues in Q2 2023 were $1.5 million, up 45% compared to revenues of $1.0 million in Q1 2023 and down 18% compared to revenues of $1.8 million in Q2 2022.  The 45% quarter-over-quarter increase in revenues, was primarily driven by increased unit sales, which grew 47% sequentially. The year-over-year decline in revenues was driven primarily by the progress in the BMW program as it transitioned to volume production at Magna, the Tier-1 on the program. The transition includes a shift from selling full LiDAR units to selling components to Magna at lower production average sales prices.

Operating expenses in Q2 2023 were $30.4 million, an increase of 6% compared to operating expenses of $28.8 million in Q2 2022. Operating expenses for Q2 2023 included $5.0 million of share-based compensation compared to $4.4 million of share-based compensation in Q2 2022. The year-over-year increase in operating expense was driven primarily by higher research and development expenses, which increased to $23.8 million in Q2 2023 versus $21.9 million in Q2 2022 and was partially offset by lower sales and marketing expenses. The increase in research and development expenses was driven primarily by a year-over-year increase in headcount, leading to higher personnel expenses and share-based compensation, with Q2 2023 share-based compensation of $3.4 million compared to $2.7 million in Q2 2022.

Liquidity as of June 30, 2023 consisted of approximately $129.6 million in cash and cash equivalents, short term deposits, short term restricted cash and marketable securities.

Updating 2023 Financial Targets

The Company is providing the following updated financial outlook for full year 2023:

Conference Call

Innoviz management will hold a web conference today, August 2, 2023, at 9:00 a.m. Eastern time (6:00 a.m. Pacific time) to discuss commercial and strategic updates, financial results for the second quarter ended June 30, 2023 and 2023 financial targets. Innoviz CEO Omer Keilaf and CFO Eldar Cegla will host the call, followed by a question-and-answer session.

Investors are invited to attend by registering in advance here. All relevant information will be sent upon registration.

A replay of the webinar will also be available shortly after the call in the  Investors section of Innoviz's website for 90 days.

About Innoviz Technologies 

Innoviz is a global leader in LiDAR technology, serving as a Tier 1 supplier to the world's leading automotive manufacturers and working towards a future with safe autonomous vehicles on the world's roads. Innoviz's LiDAR and perception software "see" better than a human driver and reduce the possibility of error, meeting the automotive industry's strictest expectations for performance and safety. Operating across the U.S., Europe, and Asia, Innoviz has been selected by internationally recognized premium car brands for use in consumer vehicles as well as by other commercial and industrial leaders for a wide range of use cases. For more information, visit innoviz-tech.com.

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Investor Contact (US)                                                                  Investor Contact (Israel)

Rob Moffatt                                                                                 Maya Lustig
VP, Corporate Development & IR                                               Director, Investor Relations
Innoviz Technologies                                                                  Innoviz Technologies
+1 (203) 665-8644                                                                       +972 54 677 8100
Email Contact                                                      Email Contact

Forward Looking Statements

This announcement contains certain forward-looking statements within the meaning of the federal securities laws, including statements regarding the services offered by Innoviz, the anticipated technological capability of Innoviz's products, the markets in which Innoviz operates, Innoviz's projected future operational and financial results, including Cash Collection from Customers, revenue and non-recurring engineering (NRE) bookings. These forward-looking statements generally are identified by the words "believe," "project," "expect," "anticipate," "estimate," "intend," "strategy," "future," "opportunity," "plan," "may," "should," "will," "would," "will be," "will continue," "will likely result," and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. "Cash Collection from Customers" is cash received by the Company from revenues, advances and NRE bookings as described in the following sentence. "NRE (Non-recuring Engineering) bookings" is booked services that may be ordered from Innoviz usually as part of a program design win and includes, among other things, application engineering, product adaptation services, testing and validation services, standards and qualification work and change requests (usually during the lifetime of a program). The commitment for a certain NRE is usually provided around the design win and may be paid based on milestones over the development phase of the project which may take a few years. 

Many factors could cause actual future events, and, in the case of our forward-looking revenue, Cash Collection from Customers, and NRE bookings, actual orders or actual payments, to differ materially from the forward-looking statements in this announcement including but not limited to, the ability to implement business plans, forecasts, and other expectations, the ability to convert design wins into definitive orders and the magnitude of such orders, the possibility that NRE would be set off against liabilities and indemnities, the ability to identify and realize additional opportunities, and potential changes and developments in the highly competitive LiDAR technology and related industries. The foregoing list is not exhaustive. You should carefully consider such risk and the other risks and uncertainties described in Innoviz's annual report on Form 20-F filed with the U.S. Securities and Exchange Commission ("SEC") on March 9, 2023 and other documents filed by Innoviz from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Innoviz assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. Innoviz gives no assurance that it will achieve its expectations.

 

 

INNOVIZ TECHNOLOGIES LTD. AND ITS SUBSIDIARIES 

CONSOLIDATED STATEMENTS OF OPERATIONS

 

U.S. dollars in thousands (except share and per share data)

 




Six Months Ended

June 30,


Three Months Ended

June 30,



2023


2022


2023


2022



(Unaudited)


(Unaudited)


(Unaudited)


(Unaudited)










Revenues

$

2,476

$

3,571

$

1,466

$

1,797

Cost of revenues


(9,572)


(6,084)


(4,631)


(3,653)










Gross loss


(7,096)


(2,513)


(3,165)


(1,856)










Operating expenses:









Research and development


49,888


44,700


23,786


21,939

Sales and marketing


4,620


5,381


2,172


2,410

General and administrative


9,169


9,744


4,434


4,415










Total operating expenses


63,677


59,825


30,392


28,764










Operating loss


(70,773)


(62,338)


(33,557)


(30,620)










Financial income, net


5,267


4,040


2,491


2,530










Loss before taxes on income


(65,506)


(58,298)


(31,066)


(28,090)

Taxes on income


(468)


(48)


(108)


(28)










Net loss

$

(65,974)

$

(58,346)

$

(31,174)

$

(28,118)










Basic and diluted net loss per ordinary share

$

(0.48)

$

(0.43)

$

(0.23)

$

(0.21)










Weighted average number of ordinary shares used in

computing basic and diluted net loss per ordinary share


136,640,997


134,607,839


136,928,039


134,994,019










 

INNOVIZ TECHNOLOGIES LTD. AND ITS SUBSIDIARIES

 CONSOLIDATED BALANCE SHEETS

 


U.S. dollars in thousands










June 30,


December 31,




2023


2022


ASSETS


(Unaudited)




 CURRENT ASSETS:






Cash and cash equivalents

$

34,331

$

55,718


Short term restricted cash


52


236


Bank deposits


62,710


80,684


Marketable securities


24,639


41,681


Trade receivables, net


2,382


1,762


Inventory


4,584


4,236


Prepaid expenses and other current assets


2,400


3,236


 Total current assets


131,098


187,553








 LONG-TERM ASSETS:






Marketable securities


7,838


7,840


Restricted deposits


2,508


2,543


Property and equipment, net


30,744


30,489


Operating lease right-of-use assets, net


26,528


26,927


Other long-term assets


83


81


 Total long-term assets


67,701


67,880








 Total assets

$

198,799

$

255,433














     LIABILITIES AND SHAREHOLDERS' EQUITY






 CURRENT LIABILITIES:






Trade payables

$

6,993

$

8,367


Advances from customers and deferred revenues


4,219


4,082


Employees and payroll accruals


9,379


8,693


Accrued expenses and other current liabilities


7,170


7,572


Operating lease liabilities


5,602


3,720


 Total current liabilities


33,363


32,434








 LONG-TERM LIABILITIES:






Advances from customers and deferred revenues


121


61


Operating lease liabilities


28,122


30,201


Warrants liability


467


720


 Total long-term liabilities


28,710


30,982








 SHAREHOLDERS' EQUITY:






Ordinary Shares of no-par value


-


-


Additional paid-in capital


714,534


703,851


Accumulated deficit


(577,808)


(511,834)


 Total shareholders' equity


136,726


192,017








 Total liabilities and shareholders' equity

$

198,799

$

255,433








 

 

 

INNOVIZ TECHNOLOGIES LTD. AND ITS SUBSIDIARIES

 CONSOLIDATED STATEMENTS OF CASH FLOWS

 U.S. dollars in thousands

 






Six Months Ended 

June 30,


Three Months Ended

June 30,



2023


2022


2023


2022



(Unaudited)


(Unaudited)

Cash flows from operating activities:









Net loss

$

(65,974)

$

(58,346)

$

(31,174)

$

(28,118)

Adjustments required to reconcile net loss to net cash used in operating activities:









Depreciation and amortization


2,954


4,192


1,547


2,044

Remeasurement of warrants liability


(245)


(789)


(245)


149

Change in accrued interest on bank deposits


455


(245)


(740)


82

Change in marketable securities


(237)


707


57


111

Share-based compensation 


10,443


9,165


5,143


4,457

Foreign exchange loss, net


65


1,220


154


1,223

Change in prepaid expenses and other assets


1,014


(3,186)


590


(3,193)

Change in trade receivables, net 


(620)


(562)


(328)


29

Change in inventory


(348)


(395)


(451)


(35)

Changes in operating lease assets and liabilities, net


202


(430)


169


(652)

Change in trade payables


(134)


60


1,212


450

Change in accrued expenses and other liabilities


110


(1,185)


(652)


621

Change in employees and payroll accruals


686


(558)


(93)


(728)

Change in advances from customers and deferred revenues


197


243


(22)


159

Net cash used in operating activities


(51,432)


(50,109)


(24,833)


(23,401)

Cash flows from investing activities:









    Purchase of property and equipment


(5,136)


(5,026)


(2,779)


(2,620)

Investment in bank deposits


(62,000)


(50,000)


(62,000)


(45,000)

Withdrawal of bank deposits


79,500


135,000


-


105,000

Increase in restricted deposits


(40)


(2,580)


-


(2,580)

Investment in marketable securities


(23,004)


(17,664)


(15,904)


(15,489)

Proceeds from sales and maturities of marketable securities


40,285


17,664


26,455


15,489

Net cash provided by (used in) investing activities


29,605


77,394


(54,228)


54,800

Cash flows from financing activities:









Proceeds from exercise of options


227


293


107


205

Net cash provided by financing activities


227


293


107


205

Effect of exchange rate changes on cash, cash equivalents and restricted cash


29


(1,122)


(97)


(1,125)

Increase (decrease) in cash, cash equivalents and restricted cash


(21,571)


26,456


(79,051)


30,479

Cash, cash equivalents and restricted cash at the beginning of the period


55,954


24,541


113,434


20,518

Cash, cash equivalents and restricted cash at the end of the period

$

34,383

$

50,997

$

34,383

$

50,997

 

 

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