Arbe Robotics Ltd (ARBE) 2024 Q3 法說會逐字稿

Good morning, and welcome to the Arbe Robotics third-quarter 2024 financial results conference call.

早安，歡迎參加 Arbe Robotics 2024 年第三季財務業績電話會議。

(Operator Instructions) Please note this event is being recorded.

（操作員說明）請注意此事件正在被記錄。

I would now like to turn the conference over to Miri Segal of MS-IR.

我現在想將會議轉交給 MS-IR 的 Miri Segal。

Please go ahead.

請繼續。

Thank you, operator, and everyone, for joining us today.

感謝運營商和大家今天加入我們。

Welcome to Arbe's third-quarter 2024 financial results conference call.

歡迎參加 Arbe 2024 年第三季財務業績電話會議。

Before we begin, I would like to remind our listeners that certain information provided on this call may contain forward-looking statements and the Safe Harbor statement outlined in today's press release also applies to this call.

在我們開始之前，我想提醒我們的聽眾，本次電話會議中提供的某些資訊可能包含前瞻性陳述，並且今天新聞稿中概述的安全港聲明也適用於本次電話會議。

If you have not received a copy of the release, view in the Investor Relations section of the company's website.

如果您尚未收到新聞稿副本，請查看公司網站的投資者關係部分。

Today, we are joined by Kobi Marenko, Arbe's Co-Founder and CEO, who will begin the call with the business update.

今天，Arbe 聯合創始人兼執行長 Kobi Marenko 也加入了我們的行列，他將首先介紹業務最新情況。

Then we will turn the call over to Karine Pinto-Flomenboim, CFO, who will review the financials in more detail.

然後我們將電話轉給財務長 Karine Pinto-Flomenboim，她將更詳細地審查財務狀況。

Finally, we will open the call for the question-and-answer session.

最後，我們將開始問答環節。

With that, I'd like to turn it over to Kobi Marenko, Arbe's CEO.

說到這裡，我想將其交給 Arbe 執行長 Kobi Marenko。

Kobi, please go ahead.

科比，請繼續。

Thank you, Miri.

謝謝你，米里。

Good morning, everyone, and thank you for joining us.

大家早安，感謝您加入我們。

On this call, we are happy to share the progress we've made this quarter with our Tier 1s and OEMs.

在這次電話會議上，我們很高興與一級供應商和原始設備製造商分享我們本季的進展。

First, we've seen growth in both the number and the depth of our OEM engagement.

首先，我們看到 OEM 參與的數量和深度都在增加。

This quarter, we worked with 16 OEMs, 12 of where -- which have moved to the big stage and eight OEMs have entered the advanced perception project base demonstrating their dedication by investing in algorithm development and sensor data processing, marking a significant milestone in the selection process.

本季度，我們與16 家OEM 廠商合作，其中12 家已經邁入大舞台，8 家OEM 廠商進入先進感知項目基地，透過投資演算法開發和感測器數據處理展示了他們的奉獻精神，標誌著行業的一個重要里程碑。

While the timeline for some of these projects have been longer than expected, we are pleased with the advancement and believe these opportunities will drive growth for Arbe in the coming quarters.

雖然其中一些項目的時間表比預期要長，但我們對進展感到滿意，並相信這些機會將推動 Arbe 在未來幾季的成長。

We look forward to update -- sorry -- we look forward to updating you as we continue to make progress.

我們期待著更新——抱歉——隨著我們不斷取得進展，我們期待向您更新。

Next, we've been working with a leading geotrack manufacturer to improve truck safety using our imaging radar.

接下來，我們一直與一家領先的地理追蹤製造商合作，使用我們的成像雷達提高卡車安全性。

This manufacturer plans to integrate our radar into its next-generation sense of quid-suit, a major step in advancing their safety offering and an important validation of our technology.

該製造商計劃將我們的雷達整合到其下一代感測套裝中，這是推進其安全產品的重要一步，也是對我們技術的重要驗證。

HiRain, one of our Tier 1s, is developing a radar-based ADAS system for a Chinese OEM.

HiRain 是我們的一級供應商之一，正在為一家中國 OEM 開發基於雷達的 ADAS 系統。

This system powered by our chipset combines radar and camera fusion, eliminating the need for LiDAR while maintaining high standards of safety.

該系統由我們的晶片組提供支持，結合了雷達和攝影機融合，無需光達，同時保持高安全標準。

Pending final OEM approval, mass production is anticipated to begin by the fourth quarter of next year.

在等待 OEM 最終批准之前，預計將於明年第四季開始批量生產。

This project demonstrates that OEMs have an alternative to LiDAR with high-resolution radar, which offers highly detailed perception at a significantly lower cost and better quality of service.

該專案表明，原始設備製造商可以使用高解析度雷達來取代 LiDAR，它可以以顯著降低的成本和更好的服務品質提供高度詳細的感知。

This solution enables OEMs to benefit from imaging radars durability and reliable performance in all weather and lighting conditions.

該解決方案使 OEM 能夠受益於成像雷達在所有天氣和照明條件下的耐用性和可靠性能。

Additionally, the affordability of imaging radar makes it an ideal choice for mass market adoption.

此外，成像雷達的經濟實惠使其成為大眾市場採用的理想選擇。

Sensrad, another one of our Tier 1s, announced it has entered into a formal agreement to provide 4D imaging radar powered by our chipset to Tianyi Transportation Technology in China.

我們的另一家一級供應商 Sensrad 宣布已簽訂正式協議，向中國天翼交通科技提供採用我們晶片組的 4D 成像雷達。

This agreement follows the full year of development and devaluation.

該協議是在全年的發展和貶值之後達成的。

The selection of Sensrad radar based on the Arbe chipset also highlights the growing demand for advanced radar solutions in additional industries beyond automotive.

選擇基於 Arbe 晶片組的 Sensrad 雷達也凸顯了汽車以外的其他產業對先進雷達解決方案日益增長的需求。

We are seeing increased interest in our radar technology for a variety of new market including infrastructure, surveillance and other transportation sectors.

我們發現基礎設施、監控和其他交通領域等各種新市場對我們的雷達技術的興趣日益濃厚。

These industries recognize the potential of advanced radar solutions for applications like safety, automation, and an environmental monitoring.

這些產業認識到先進雷達解決方案在安全、自動化和環境監測等應用中的潛力。

Our Tier 1s are actively engaging with customers to explore these emerging opportunities.

我們的一級正在積極與客戶合作，探索這些新興機會。

This allows us to expand our total addressable market within new verticals and drive innovation across multiple industries.

這使我們能夠在新的垂直領域中擴大我們的整體目標市場，並推動跨多個行業的創新。

These advancements will enforce our position as a technology leader and demonstrate the trust that leading manufacturers place in our solution.

這些進步將鞏固我們作為技術領導者的地位，並展示領先製造商對我們解決方案的信任。

They validate our innovation, highlight our competitive advantage, and set the stage for expanding our market share and attracting additional OEMs.

它們驗證了我們的創新，突顯了我們的競爭優勢，並為擴大我們的市場份額和吸引更多原始設備製造商奠定了基礎。

Finally, we are happy to report that we successfully completed a public offering of up to $49 million earlier this month as part of the offering, [$50 million] were received upfront with an additional $34 million subject to cash exercise of long-term and milestone-linked (inaudible)

最後，我們很高興地報告，作為發行的一部分，我們已於本月早些時候成功完成了高達4,900 萬美元的公開發行，已預先收到[5,000 萬美元]，另外還收到了3,400 萬美元，取決於長期和里程碑的現金行使- 連結（聽不清楚）

The offering was led by AWM investment, one of our major investors who led our 2023 offering along with new investors.

此次發行由 AWM Investment 牽頭，AWM Investment 是我們的主要投資者之一，與新投資者一起領導了我們 2023 年的發行。

Their proceeds will support our planned production ramp-up in 2025.

他們的收益將支持我們計劃在 2025 年提高產量。

We believe these funding marks an important step as we move closer to production and aim to be cash flow positive in 2027.

我們相信，這些資金標誌著我們邁向生產的重要一步，我們的目標是在 2027 年實現正現金流。

Lastly, our executive team will be meeting with investors at CES from January 7 to January 10 where we will be hosting live demos of our real-time AI best-pace face mapping.

最後，我們的執行團隊將於 1 月 7 日至 10 日在 CES 上與投資者會面，屆時我們將舉辦即時人工智慧最佳速度臉部映射的現場演示。

We would love to meet you there.

我們很樂意在那裡見到您。

Now, I'll hand it over to our CFO, Karine, to review the financials.

現在，我將把它交給我們的財務長卡琳（Karine）來審查財務狀況。

Thank you, Kobi, and hello, everyone.

謝謝你，Kobe，大家好。

I'd like to review our financial results for the third quarter of 2024 in more detail.

我想更詳細地回顧一下我們 2024 年第三季的財務表現。

Total revenue in the third quarter was $0.1 million, a decrease from $0.5 million in Q3 2023.

第三季的總收入為 10 萬美元，較 2023 年第三季的 50 萬美元有所下降。

Backlog as of September 30 was $0.3 million and is expected to be recognized as revenue in the next coming quarters.

截至 9 月 30 日，積壓訂單為 30 萬美元，預計將在未來幾季確認為營收。

Negative gross margin for Q3 2024 was $0.3 million compared to a positive gross margin of $0.1 million or 24% in Q3 2023.

2024 年第三季的負毛利率為 30 萬美元，而 2023 年第三季的正毛利率為 10 萬美元，即 24%。

The decrease in gross margin was primarily related to revenue reduction with a fixed cost level of expenses.

毛利率下降主要與固定費用水準下的收入減少有關。

Moving on to expenses.

繼續討論支出。

In Q3 2024, we reported total operating expenses of $12.2 million compared to $11.7 million in Q3 2023.

2024 年第三季度，我們報告的總營運費用為 1,220 萬美元，而 2023 年第三季為 1,170 萬美元。

The increase in operating expenses was primarily driven by an increase in our research and development, labor cost, and subcontractors cost as we strengthen our investment in advanced software development, chip readiness, and safety certification towards production readiness.

營運費用的增加主要是由於我們加強了對先進軟體開發、晶片準備和安全認證的投資以實現生產準備，導致我們的研發、勞動力成本和分包商成本增加。

Operating loss in the third quarter of 2024 was $12.4 million and increased from $11.6 million operating loss in the third quarter of 2023.

2024 年第三季的營運虧損為 1,240 萬美元，較 2023 年第三季的 1,160 萬美元有所增加。

Net loss in the third quarter of 2024 increased to $12.6 million compared to a net loss of $11.7 million in the third quarter of 2023.

2024 年第三季的淨虧損增至 1,260 萬美元，而 2023 年第三季的淨虧損為 1,170 萬美元。

Net loss in the third quarter of 2024 included $0.1 million of financial expenses.

2024 年第三季的淨虧損包括 10 萬美元的財務費用。

Adjusted EBITDA and non-GAAP measurements, which exclude expenses for share-based compensation and for nonrecurring items, was a loss of $8.2 million in Q3 of 2024.

調整後 EBITDA 和非 GAAP 衡量指標（不包括股權激勵費用和非經常性項目費用）在 2024 年第三季虧損 820 萬美元。

This is compared to a loss of $7.5 million in the third quarter of 2023.

相較之下，2023 年第三季虧損 750 萬美元。

Please see our earnings release for a conciliation to GAAP net loss.

請參閱我們的收益報告，以了解 GAAP 淨虧損的調整。

Moving to our balance sheet.

轉向我們的資產負債表。

As of September 30, 2024, Arbe had $19.1 million in cash and cash equivalents.

截至2024年9月30日，Arbe擁有1,910萬美元的現金和現金等價物。

With respect to our guidance for the year, we would like to reiterate what we previously shared.

關於我們今年的指導，我們想重申我們之前分享的內容。

Our goal of achieving four design-ins with automakers remains unchanged as we observed continued strong interest in our market-leading offering.

我們與汽車製造商實現四項設計的目標保持不變，因為我們觀察到人們對我們市場領先的產品持續產生濃厚的興趣。

We have strengthened our positioning in all our RSQ engagements, even though the OEMs have shifted their decision timelines from late '23 to '24.

儘管原始設備製造商已將其決策時間表從 23 年末改為 24 年，但我們還是加強了在所有 RSQ 活動中的定位。

The 2024 annual revenue are expected to be in line with those of 2023, followed by revenue growth in 2025.

預計2024年營收將與2023年持平，隨後2025年營收成長。

These revenue projections are based on our expectation that we will be in full production in the second half of 2024 as well as our decision to exclusively focus on getting our chipset into production.

這些收入預測是基於我們對 2024 年下半年全面投產的預期，以及我們決定專注於將晶片組投入生產的決定。

We are committed to maintaining a strong and well-managed balance sheet, focusing on cost effectiveness and the ability to fund our revenue growth.

我們致力於維持強大且管理良好的資產負債表，重點關注成本效益和為收入成長提供資金的能力。

Adjusted EBITDA for 2024 is projected to be in the range of $30 million loss to $36 million loss.

2024 年調整後 EBITDA 預計將損失 3,000 萬美元至 3,600 萬美元。

Now, we will be happy to take your questions.

現在，我們很樂意回答您的問題。

Operator?

操作員？

(Operator Instructions) Suji Desilva, Roth Capital.

（操作員指令）Suji Desilva，Roth Capital。

Hi, Kobi.

嗨，科比。

Hi, Karine.

嗨，卡琳。

Jumping the progress here.

這裡進度跳躍。

The OEM programs, Kobi, can you give us your perspective on adoption of imaging radar given the delay in pushouts of some ADAS or EV models?

OEM 專案 Kobi，考慮到某些 ADAS 或 EV 車型的推出延遲，您能否向我們介紹您對成像雷達採用的看法？

How is that dovetailing with the need to implement a radar?

這與實施雷達的需求如何吻合？

Any thoughts there would be helpful.

任何想法都會有幫助。

Yes.

是的。

So I think overall, as you're probably aware, all of the ADAS market suffered from delays.

所以我認為，正如您可能知道的那樣，總體而言，整個 ADAS 市場都遭受了延誤的影響。

At the beginning, it was because of the supply chain, then it was because of the focus on the EV stuff.

一開始是因為供應鏈，然後是因為對電動車的關注。

But now, I believe that we are back on track with major production timelines and major programs in place, in line to achieve hands-free driving, eyes-off driving on the highway, all of the western OEMs have those programs.

但現在，我相信我們已經回到正軌，主要生產時間表和主要計劃都已到位，以實現高速公路上的免提駕駛、無眼駕駛，所有西方整車廠都有這些計劃。

Selection of imaging radar is key factor for that.

成像雷達的選擇是其中的關鍵因素。

So the only way to do a real hands-free driving, eyes-off driving that will be safe on the highway is by using imaging radar that gives you the long range that is needed.

因此，在高速公路上實現真正安全的免持駕駛、無眼駕駛的唯一方法是使用成像雷達，為您提供所需的長距離。

I think that -- I've said this -- stated it early this year, in conference in Berlin.

我認為——我已經說過了——今年早些時候在柏林的會議上說過。

Dr. Jurgen Dickman, I would say, the leading expert in radar in automotive radar said that in order to have a real estate ADAS system, you must have a long-range radar that has minimum channels of 32 by 32 channels, which is basically orders solution and Mobileye.

Jurgen Dickman 博士，我想說的是，汽車雷達領域的領先專家表示，為了擁有房地產 ADAS 系統，你必須擁有一個最小通道數為 32 x 32 通道的遠端雷達，這基本上是訂單解決方案和Mobileye 。

And following that, I think all of the major OEMs plan to select an imaging radar in high-channel count in the next few quarters.

接下來，我認為所有主要原始設備製造商都計劃在未來幾季選擇高通道數成像雷達。

We know that part of them will do the selection even before the year-end, although only a few weeks left, we definitely believe that selections -- the first selection would be made this year.

我們知道他們中的一部分人甚至會在年底前進行選拔，儘管只剩下幾週時間，但我們絕對相信選拔——今年將進行第一次選拔。

And customers that not yet took a decision will take their decision early next year, Q1 and Q2 in order to start collecting data with a full system that has cameras and radar, some of them also with lied out, train the algorithm and launch a real hands-free driving third -- the second half of the decade, '28 -- '27, '28 year would be -- I think, the starting point by 2030, we will see already a ramp-up.

尚未做出決定的客戶將在明年初、第一季度和第二季度做出決定，以便開始使用帶有攝影機和雷達的完整系統收集數據，其中一些系統還處於閒置狀態，訓練演算法並啟動真正的免提駕駛第三個- 十年的後半段，'28 - '27，'28 年將- 我認為，到2030 年的起點，我們將看到已經加速發展。

And 10 years from now, I believe that we will all be in a situation that this kind of service is a basic feature of the car like listening to

而10年後，我相信我們都會處於這樣一種情況，這種服務就像聽歌一樣是汽車的基本功能

[radio].

[收音機]。

That makes sense, Kobi.

這是有道理的，Kobe。

And maybe specifically, is there -- that's the kind of their demand and models.

也許具體來說，就是他們的需求和模式。

Is there anything pushing them from a regulatory front to have to act on this?

是否有任何因素迫使他們從監管方面採取行動？

Any specific regulatory actions in the geography that would be -- you'd point out as being initial catalysts?

您認為該地區有任何具體的監管行動是最初的催化劑嗎？

Yes.

是的。

So there is one regulation in the States as well as in Europe, that's pushing long-range radar imaging readouts for few ADAS for emergency braking.

因此，美國和歐洲都有一項法規，要求為少數 ADAS 提供遠端雷達成像讀數以進行緊急煞車。

We hope that this regulation won't change with the new government.

我們希望這項規定不會隨著新政府的改變而改變。

But we think that this is a major driver for OEMs to adopt an imaging radar, the ability to have a full automatic braking in anywhere any lighting condition up to a very long range.

但我們認為這是原始設備製造商採用成像雷達的主要驅動力，它能夠在任何照明條件下在很遠的範圍內進行全自動煞車。

Okay.

好的。

And switching over to non-auto, Kobi.

並切換到非汽車，科比。

You talked about Sensrad and the success in China with GE.

您談到了 Sensrad 以及與 GE 在中國的成功。

Can you talk about the sales cycle and the time to unit revenues there, perhaps versus auto and whether that can come in sooner.

您能否談談那裡的銷售週期和單位收入的時間，也許與汽車相比，以及是否可以更快地實現。

I imagine towards sales cycle, but any color there would be helpful in the non-auto market.

我想像銷售週期，但任何顏色在非汽車市場都會有幫助。

Yeah.

是的。

I think that there is in the non-auto market, the sell cycle is more or less like in auto, but the time to production is much shorter.

我認為在非汽車市場中，銷售週期或多或少與汽車市場類似，但生產時間要短得多。

So in auto, the sales cycle could be two to three years, but then the year wasn't that will start production which radar can take another three years.

因此，在汽車領域，銷售週期可能是兩到三年，但那時還不是開始生產的年份，雷達可能還需要三年。

And now also the sales cycle is the same, but we will definitely start seeing revenues in '25 and definitely in '26.

現在銷售週期也是一樣的，但我們肯定會在 25 年、26 年開始看到收入。

I can say that also we see opportunities in defense technology for our radar and in other verticals that the revenues might come dramatically earlier.

我可以說，我們也看到了雷達國防技術和其他垂直領域的機會，收入可能會大幅提前。

Okay.

好的。

It's helpful.

這很有幫助。

Thank you.

謝謝。

That's all.

就這樣。

(Operator Instructions) With no further questions, this concludes our question-and-answer session -- looks like we do have a question.

（操作員說明）沒有更多問題，我們的問答環節就結束了——看起來我們確實有一個問題。

The next question will come from [Dan Parsley], a private investor.

下一個問題將來自私人投資者 [Dan Parsley]。

Good morning, Kobi.

早上好，Kobe。

I have a question just on -- in your forecast for 2024, you mentioned that you'll be in full production by the end of 2024 and here we are.

我有一個問題——在您對 2024 年的預測中，您提到您將在 2024 年底前全面投產，現在我們就到了。

And at the end of November.

並在11月底。

So I'd ask you to please comment if you're still on track to be in full production in 2024.

因此，如果您仍有望在 2024 年全面投產，請發表評論。

And can you give us any insight as to the likelihood of being starting to ramp revenue in '25?

您能為我們介紹一下 25 年開始增加收入的可能性嗎？

Thank you.

謝謝。

So I think we are more or less on track with our timetable.

所以我認為我們或多或少都在按時間表進行。

We believe that by end of December, we will be able to start shipping engineering samples of our chipset to the project that we mentioned of Sensrad.

我們相信，到 12 月底，我們將能夠開始將晶片組的工程樣品運送到我們提到的 Sensrad 專案。

And by basically early next year, we will be -- we will have the ability to start shipping production chips right after, I think, the holidays and so on.

基本上到明年初，我們將有能力在假期等之後立即開始運輸生產晶片。

We expect revenues to stamp ramping up on the last quarter of '25, maybe a bit earlier, so second half of '25.

我們預計營收將在 25 年最後一個季度（也許更早一些，即 25 年下半年）出現成長。

And so as the end of '25 with -- like we said earlier, with the project that HiRain has with the leading Chinese car manufacturer.

正如我們之前所說，25 年底，恆潤科技與中國領先的汽車製造商進行了專案。

Okay.

好的。

And a follow-up to that.

以及後續行動。

Can you comment on how dependent are your auto sales on EV vehicles versus more traditional combustion engine vehicles?

您能否評論一下您的汽車銷售對電動車與傳統內燃機汽車的依賴程度如何？

We are not.

我們不是。

So basically, imaging radar can get even into any kind of vehicle.

所以基本上，成像雷達甚至可以進入任何類型的車輛。

The question is not about it.

問題不是關於它的​​。

It's about what's the plans of the OEM?

是關於OEM的計劃是什麼？

Will the OEM launch a full advanced ADAS service on a combustion engine or only on EV?

OEM 會在內燃機上還是僅在電動車上推出全面先進的 ADAS 服務？

I think if you would ask the major OEMs a year ago, they would say that new ADAS features would be released only on EVs.

我想如果你一年前詢問主要 OEM 廠商，他們會說新的 ADAS 功能只會在電動車上發布。

But I think right now, with a slow uptake of EVs on the West, probably it will be a mix.

但我認為，目前，隨著電動車在西方的緩慢普及，可能會是混合動力。

In China, where we already see something like 30% to 35% of new cars that's been sold our EVs, I believe that the new ADAS features will go only to EVs.

在中國，我們已經看到大約 30% 到 35% 的新車是電動車，我相信新的 ADAS 功能將只適用於電動車。

Thank you.

謝謝。

Thank you so much for that question.

非常感謝你提出這個問題。

This concludes our question-and-answer session.

我們的問答環節到此結束。

I would like to turn the conference back over to Kobi Morenko for any closing remarks.

我想將會議轉回科比·莫連科 (Kobi Morenko) 發表閉幕詞。

Thank you.

謝謝。

We were pleased to have you join us today for our employees and partners, your continued dedication is deeply appreciated.

我們很高興您今天加入我們的員工和合作夥伴，我們對您的持續奉獻深表感謝。

We look forward to updating you on our best progress in the coming weeks.

我們期待在未來幾週內向您通報我們的最新進展。

Look out for update as we prepare for several investor events.

我們正在為多項投資者活動做準備，請留意最新動態。

We love to meet you in person for additional discussions.

我們很高興與您見面以進行更多討論。

Please contact us at investor@arberobotics.com or visit our website to schedule a meeting.

請透過 Investor@arberobotics.com 聯絡我們或造訪我們的網站安排會議。

Thank you, all.

謝謝大家。

The conference has now concluded.

會議現已結束。

Thank you for attending today's presentation.

感謝您參加今天的演講。

You may now disconnect.

您現在可以斷開連線。