In This Article:
Release Date: November 12, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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AEye Inc (NASDAQ:LIDR) made significant progress in advancing product and partnership milestones, particularly with their Apollo product.
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Apollo demonstrated high-resolution object detection at distances of one kilometer, a first among peers, and in a form factor half the size of competing products.
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The company completed a major in-vehicle driving test with NVIDIA, meeting the NVIDIA Hyperion specifications, which could lead to deeper integration with NVIDIA's ecosystem.
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AEye Inc (NASDAQ:LIDR) has a capital-light business model, allowing for a low-cost structure and efficient operations, which is well-received by OEMs.
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The company has reduced its net cash burn for the sixth consecutive quarter, demonstrating disciplined cost management and financial stability.
Negative Points
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Total revenue for the third quarter was only $104,000, driven by non-automotive product sales, indicating limited revenue streams.
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Gross margin was negatively impacted by increased warranty reserves, affecting profitability.
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The company reported a GAAP net loss of $8.7 million, an increase from the previous quarter, primarily due to financing-related costs.
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Despite progress, 2024 has been a quiet year for OEM nominations, with expectations for more action only in 2025.
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The competitive landscape remains challenging, with the need to maintain cost advantages and performance superiority to secure OEM partnerships.
Q & A Highlights
Q: You've talked in the past about a pipeline of 4 to 5 RFQs where you are active. How have these potential end customers reacted to the advances both with NVIDIA as well as the high resolution at this long range? What should investors expect as the next data points on some of these procurements? A: Matt Fish, CEO: The response has been very positive. The engagements continue to be strong, and we expect them to come to a head as we get into 2025. One key challenge is integrating a new sensor into an autonomy system, which Apollo addresses by making the interface more seamless and reducing friction for OEMs. This is due to Apollo's wide field of view and high resolution, which makes it easier for OEM software to digest our data.
Q: Can you talk about the competitive landscape for these RFQs that you're facing this year? A: Matt Fish, CEO: The automotive industry leans toward having choices, and we aim to be the best choice in terms of performance, size, and cost. We have a distinct cost advantage due to our partnership with a tier-one supplier with expertise in optics, which gives us a competitive edge in the sourcing process.