Mobileye Discloses First Quarter 2023 Results, Updates 2023 Guidance and Provides Business Update

We use such non-GAAP financial measures to make strategic decisions, establish business plans and forecasts, identify trends affecting our business, and evaluate performance. For example, we use these non-GAAP financial measures to assess our pricing and sourcing strategy, in the preparation of our annual operating budget, and as a measure of our operating performance. We believe that these non-GAAP financial measures, when taken collectively, may be helpful to investors because they allow for greater transparency into what measures our management uses in operating our business and measuring our performance, and enable comparison of financial trends and results between periods where items may vary independent of business performance. The non-GAAP financial measures are presented for supplemental informational purposes only, should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from similarly titled non-GAAP measures used by other companies. A reconciliation is provided below for each non-GAAP financial measure to the most directly comparable financial measure presented in accordance with GAAP. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures.

About Mobileye Global Inc.

Mobileye (Nasdaq: MBLY) leads the mobility revolution with its autonomous driving and driver-assistance technologies, harnessing world-renowned expertise in computer vision, artificial intelligence, mapping, and data analysis. Since its founding in 1999, Mobileye has pioneered such groundbreaking technologies as REM™ crowdsourced mapping, True Redundancy™ sensing, and Responsibility Sensitive Safety (RSS). These technologies are driving the ADAS and AV fields towards the future of mobility – enabling self-driving vehicles and mobility solutions, powering industry-leading advanced driver-assistance systems and delivering valuable intelligence to optimize mobility infrastructure. To date, more than 125 million vehicles worldwide have been built with Mobileye technology inside. In 2022 Mobileye listed as an independent company separate from Intel (Nasdaq: INTC), which retains majority ownership. For more information, visit https://www.mobileye.com.

“Mobileye,” the Mobileye logo and Mobileye product names are registered trademarks of Mobileye Global. All other marks are the property of their respective owners.

Forward-Looking Statements

Mobileye’s business outlook, guidance and other statements in this release that are not statements of historical fact, including statements about our beliefs and expectations, are forward-looking statements and should be evaluated as such. Forward-looking statements include information concerning possible or assumed future results of operations, including Mobileye’s 2023 full-year guidance, projected future revenue and descriptions of our business plan and strategies. These statements often include words such as “anticipate,” “expect,” “suggests,” “plan,” “believe,” “intend,” “estimates,” “targets,” “projects,” “should,” “could,” “would,” “may,” “will,” “forecast,” or the negative of these terms, and other similar expressions, although not all forward-looking statements contain these words. We base these forward-looking statements or projections, including Mobileye’s full-year guidance, on our current expectations, plans and assumptions that we have made in light of our experience in the industry, as well as our perceptions of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances and at such time. You should understand that these statements are not guarantees of performance or results. The forward-looking statements and projections are subject to and involve risks, uncertainties and assumptions and you should not place undue reliance on these forward-looking statements or projections. Although we believe that these forward-looking statements and projections are based on reasonable assumptions at the time they are made, you should be aware that many factors could affect our actual financial results or results of operations and could cause actual results to differ materially from those expressed in the forward-looking statements and projections.

Important factors that may materially affect such forward-looking statements and projections include the following: future business, social and environmental performance, goals and measures; our anticipated growth prospects and trends in markets and industries relevant to our business; business and investment plans; expectations about our ability to maintain or enhance our leadership position in the markets in which we participate; future consumer demand and behavior; future products and technology, and the expected availability and benefits of such products and technology; development of regulatory frameworks for current and future technology; projected cost and pricing trends; future production capacity and product supply; potential future benefits and competitive advantages associated with our technologies and architecture and the data we have accumulated; the future purchase, use and availability of products, components and services supplied by third parties, including third-party IP and manufacturing services; uncertain events or assumptions, including statements relating to our estimated vehicle production and market opportunity, potential production volumes associated with design wins and other characterizations of future events or circumstances; future responses to and effects of the COVID-19 pandemic; availability, uses, sufficiency and cost of capital and capital resources, including expected returns to stockholders such as dividends, and the expected timing of future dividends; tax- and accounting-related expectations.

The estimates included herein are based on projections of future production volumes that were provided by our current and prospective OEMs at the time of sourcing the design wins for the models related to those design wins. For the purpose of these estimates, we estimated sales prices based on our management’s estimates for the applicable product bundles and periods. Achieving design wins is not a guarantee of revenue, and our sales may not correlate with the achievement of additional design wins. Moreover, our pricing estimates are made at the time of a request for quotation by an OEM (in the case of estimates related to contracted customers), so that worsening market or other conditions between the time of a request for quotation and an order for our solutions may require us to sell our solutions for a lower price than we initial expected. These estimates may deviate from actual production volumes and sale prices (which may be higher or lower than the estimates) and the amounts included for prospective but uncontracted production volumes may never be achieved. Accordingly, these estimations are subject to and involve risks, uncertainties and assumptions and you should not place undue reliance on these forward-looking statements or projections.

Detailed information regarding these and other factors that could affect Mobileye’s business and results is included in Mobileye’s SEC filings, including the company’s Annual Report on Form 10-K for the year ended December 31, 2022, particularly in the section entitled “Item 1A. Risk Factors”. Copies of these filings may be obtained by visiting our Investor Relations website at ir.mobileye.com or the SEC’s website at www.sec.gov.

First Quarter 2023 Financial Results

 

Mobileye Global Inc.

Condensed Consolidated Statements of Operations (unaudited)

 

 

 

Three Months Ended

 

U.S. dollars in millions, except share and per share amounts

 

April 1,
2023

 

 

April 2,
2022

 

Revenue

 

$

458

 

 

$

394

 

Cost of revenue

 

 

251

 

 

 

218

 

Gross profit

 

 

207

 

 

 

176

 

Research and development, net

 

 

235

 

 

 

180

 

Sales and marketing

 

 

33

 

 

 

35

 

General and administrative

 

 

20

 

 

 

7

 

Total operating expenses

 

 

288

 

 

 

222

 

Operating income (loss)

 

 

(81

)

 

 

(46

)

Interest income with related party

 

 

 

 

 

1

 

Other financial income (expense), net

 

 

8

 

 

 

1

 

Income (loss) before income taxes

 

 

(73

)

 

 

(44

)

Benefit (provision) for income taxes

 

 

(6

)

 

 

(16

)

Net income (loss)

 

$

(79

)

 

$

(60

)

 

 

 

 

 

 

 

 

 

Earnings (loss) per share:

 

 

 

 

 

 

 

 

Basic and diluted

 

$

(0.10

)

 

$

(0.08

)

Weighted-average number of shares used in computation of earnings (loss) per share (in millions):

 

 

 

 

 

 

 

 

Basic and diluted

 

 

802

 

 

 

750

 

Mobileye Global Inc.

Condensed Consolidated Balance sheets (unaudited)

   

U.S. dollars in millions

 

April 1, 2023

 

December 31, 2022

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

1,161

 

$

1,024

Trade accounts receivable, net

 

 

239

 

 

269

Inventories

 

 

173

 

 

113

Other current assets

 

 

82

 

 

110

Total current assets

 

 

1,655

 

 

1,516

Non-current assets:

 

 

 

 

 

 

Property and equipment, net

 

 

401

 

 

384

Intangible assets, net

 

 

2,394

 

 

2,527

Goodwill

 

 

10,895

 

 

10,895

Other long-term assets

 

 

117

 

 

119

Total non-current assets

 

 

13,807

 

 

13,925

TOTAL ASSETS

 

$

15,462

 

$

15,441

Liabilities and Equity

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable and accrued expenses

 

$

208

 

$

189

Employee related accrued expenses

 

 

94

 

 

88

Related party payable

 

 

80

 

 

73

Other current liabilities

 

 

36

 

 

34

Total current liabilities

 

 

418

 

 

384

Non-current liabilities:

 

 

 

 

 

 

Long-term employee benefits

 

 

54

 

 

56

Deferred tax liabilities

 

 

159

 

 

162

Other long-term liabilities

 

 

44

 

 

45

Total non-current liabilities

 

 

257

 

 

263

TOTAL LIABILITIES

 

$

675

 

$

647

TOTAL EQUITY

 

 

14,787

 

 

14,794

TOTAL LIABILITIES AND EQUITY

 

$

15,462

 

$

15,441

Mobileye Global Inc.

Condensed Consolidated Cash Flows (unaudited)

 

 

 

Three Months Ended

 

U.S. dollars in millions

 

April 1,
2023

 

 

April 2,
2022

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

Net income (loss)

 

$

(79

)

 

$

(60

)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

 

 

 

 

 

 

 

 

Depreciation of property and equipment

 

 

7

 

 

 

5

 

Share-based compensation

 

 

72

 

 

 

40

 

Amortization of intangible assets

 

 

133

 

 

 

149

 

Exchange rate differences on cash and cash equivalents

 

 

4

 

 

 

 

Deferred income taxes

 

 

(3

)

 

 

(3

)

Interest with related party, net

 

 

16

 

 

 

(1

)

Other

 

 

 

 

 

(1

)

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Decrease (increase) in trade accounts receivable

 

 

30

 

 

 

(30

)

Decrease (increase) in other current assets

 

 

14

 

 

 

14

 

Decrease (increase) in inventories

 

 

(60

)

 

 

(13

)

Increase (decrease) in accounts payable, accrued expenses and related party payable

 

 

29

 

 

 

(21

)

Increase (decrease) in employee-related accrued expenses and long term benefits

 

 

4

 

 

 

(23

)

Increase (decrease) in other current liabilities

 

 

2

 

 

 

(1

)

Decrease (increase) in other long term assets

 

 

2

 

 

 

(1

)

Increase (decrease) in long-term liabilities

 

 

 

 

 

(3

)

Net cash provided by operating activities

 

 

171

 

 

 

51

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

Purchase of property and equipment

 

 

(26

)

 

 

(27

)

Repayment of loan due from related party

 

 

 

 

 

200

 

Net cash provided by (used in) investing activities

 

 

(26

)

 

 

173

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

Net transfers from Parent

 

 

 

 

 

102

 

Share-based compensation recharge

 

 

(3

)

 

 

(186

)

Deferred offering costs

 

 

 

 

 

(7

)

Net cash provided by (used in) financing activities

 

 

(3

)

 

 

(91

)

Effect of foreign exchange rate changes on cash and cash equivalents

 

 

(4

)

 

 

 

Increase in cash, cash equivalents and restricted cash

 

 

138

 

 

 

133

 

Balance of cash, cash equivalents and restricted cash, at beginning of year

 

 

1,035

 

 

 

625

 

Balance of cash, cash equivalents and restricted cash, at end of period

 

$

1,173

 

 

$

758

 

Mobileye Global Inc.

Reconciliation of GAAP Gross Profit and Margin to Non-GAAP Adjusted Gross Profit and Margin 3 (unaudited)

   

 

 

Three Months Ended

 

U.S. dollars in millions

 

April 1, 2023

 

 

April 2, 2022

 

 

 

Amount

 

% of Revenue

 

 

Amount

 

% of Revenue

 

Gross Profit

 

$

207

 

45

%

 

$

176

 

45

%

Add: Amortization of acquired intangible assets

 

 

116

 

25

%

 

 

125

 

32

%

Add: Share-based compensation expense

 

 

1

 

%

 

 

 

%

Adjusted Gross Profit

 

$

324

 

71

%

 

$

301

 

76

%

3 Adjusted gross margin is calculated as adjusted gross profit as a percentage of revenue

Mobileye Global Inc.

Reconciliation of GAAP Operating Income and Margin to Non-GAAP Adjusted Operating Income and Margin 4 (unaudited)

 

 

 

Three Months Ended

 

U.S. dollars in millions

 

April 1, 2023

 

 

April 2, 2022

 

 

 

Amount

 

 

% of Revenue

 

 

Amount

 

 

% of Revenue

 

Operating Income (Loss)

 

$

(81

)

 

 

(18

)%

 

$

(46

)

 

 

(12

)%

Add: Amortization of acquired intangible assets

 

 

133

 

 

 

29

%

 

 

149

 

 

 

38

%

Add: Share-based compensation expense

 

 

72

 

 

 

16

%

 

 

40

 

 

 

10

%

Adjusted Operating Income

 

$

124

 

 

 

27

%

 

$

143

 

 

 

36

%

4 Adjusted operating margin is calculated as adjusted operating income as a percentage of revenue

Mobileye Global Inc.

Reconciliation of GAAP Net Income to Non-GAAP Adjusted Net Income (unaudited)

 

 

 

Three Months Ended

 

U.S. dollars in millions

 

April 1, 2023

 

 

April 2, 2022

 

 

 

Amount

 

 

% of Revenue

 

 

Amount

 

 

% of Revenue

 

Net Income (Loss)

 

$

(79

)

 

 

(17

)%

 

$

(60

)

 

 

(15

)%

Add: Amortization of acquired intangible assets

 

 

133

 

 

 

29

%

 

 

149

 

 

 

38

%

Add: Share-based compensation expense

 

 

72

 

 

 

16

%

 

 

40

 

 

 

10

%

Less: Income tax effects

 

 

(11

)

 

 

(2

)%

 

 

(9

)

 

 

(2

)%

Adjusted Net Income

 

$

115

 

 

 

25

%

 

$

120

 

 

 

30

%

Supplemental Information - Average System Price (unaudited)

 

 

 

Q1 2022

 

Q2 2022

 

Q3 2022

 

Q4 2022

 

Q1 2023

EyeQ and SuperVision revenue (U.S. dollars in millions)

 

$

378

 

$

441

 

$

432

 

$

543

 

$

438

Number of systems shipped (in millions)

 

 

7.4

 

 

8.5

 

 

8.2

 

 

9.7

 

 

8.1

Average system price (U.S. dollars)

 

$

51.0

 

$

52.0

 

$

53.0

 

$

56.2

 

$

53.9


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