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Innoviz Technologies Provides Commercial Updates and Reports Third Quarter 2022 Financial Results

09 November 2022
  • New customer win in Asia expands Innoviz's geographic footprint and adds new leading autonomous driving platform partner
  • Innoviz grew its forward-looking order book to $6.9 billion, upgraded production throughput, shipped D-Sample units to customers, and accelerated its momentum in non-automotive markets

TEL AVIV, Israel, Nov. 9, 2022 /PRNewswire/ -- Innoviz Technologies Ltd. (NASDAQ: INVZ) (the "Company" or "Innoviz"), a Tier-1 supplier of high-performance, solid-state LiDAR sensors and perception software, today provided updates on commercial progress, technology leadership, and corporate developments and reported its financial results for the third quarter ended September 30, 2022.

Management Commentary

"Our results in the third quarter underscore our ongoing strategic execution and the substantial progress we are making to strengthen our position as a Tier-1 supplier to the world's top car makers, along with a rapidly growing list of non-automotive customers," said Omer Keilaf, CEO of Innoviz. "We are proud of our latest OEM program win in Asia and our recent customer momentum, having posted a win in back-to-back quarters. We are encouraged by our robust pipeline, which includes many of the world's largest OEMs, in addition to the well-known names that are already in our order book. We are excited with where Innoviz stands today, and as we look ahead, we are confident in our ability to maintain our position as a leader in our industry as we continue to deliver for our customers."

Commercial Progress

As previously announced on September 8, 2022, an Asia-based, emerging global EV leader selected Innoviz to serve as its direct LiDAR supplier for series production passenger vehicles. Innoviz plans to supply the emerging EV leader with the InnovizTwo LiDAR sensor for its production vehicles, further strengthening the Company's leadership in L3 automation around the world.

  • The selection represents Innoviz's first win in Asia, fourth major design win and second consecutive Tier 1 win for series production of passenger vehicles as a direct LiDAR supplier, validating the Company's strategy to become a direct supplier.
  • We expect this new win, when combined with the two existing production launches next year, will further support the Company's ability to grow its revenues meaningfully in the coming years.
  • From a geographic standpoint, the design-win expands Innoviz's global reach and production footprint in Asia, marking an important step in the Company's platform expansion efforts. We believe it also strengthens Innoviz's position with other Asian OEM's currently in the Company's pipeline.
  • The deal also marks the Company's first production win with a new technology partner. Innoviz now has production wins with two of the industry's three major autonomous driving technology platform partners, offering an important advantage over competitors in upcoming customer decision making, as we increasingly become an off-the-shelf solution for OEMs.
  • Following the Company's recent quarterly business progress, Innoviz is updating its forward-looking order book to $6.9 billion.

Innoviz is accelerating its production and design efforts and positioning the business to continue growing and delivering for customers across the automotive space. 

  • The Company made significant progress towards series production for customers, moving to the D-sample stage, the final step before the start of production.
  • The Company currently works directly with OEMs representing roughly 15% of the global market.
  • In Q2 2022, Innoviz disclosed 12 programs in the RFI or RFQ process. With the Company's new Asia-based OEM converted to a full production customer, it now has 11 OEMs in the RFI and RFQ process and expects an additional one to three new decisions by OEMs in the next six months.
  • Collectively, the 11 OEM's in the Company's pipeline produce approximately 40 million vehicles per year, representing an additional roughly 42% of the global market.
  • The Company targeted 10 pre-production programs, one commercial agreement and a 30% increase in its forward-looking order book in 2022. As of September 30, 2022, the Company boasts 14 pre-production programs, two commercial agreements and a 165% year to date increase in its forward-looking order book.

Technology Leadership

Innoviz remains committed to investing in technology development and perception software.

  • The Company remains on track to introduce the all-new Innoviz360 at CES in January 2023. This breakthrough product is expected to unlock exceptional price and performance metrics for a spinning LiDAR, opening new markets in both the automotive and non-automotive segments.

Innoviz also remains focused on leveraging the maturity of InnovizOne to benefit non-automotive segments, expanding its global market reach further beyond the automotive industry. During the quarter, Innoviz announced three new strategic projects with existing and new non-automotive partners:

  • Kudan, a 3D digital mapping solutions provider for a broad range of applications including HD maps, robotics, construction, surveying, and "digital twinning" and the "industrial metaverse;"
  • Sensagrate, a smart city technology provider that enables real-time traffic, pedestrian and cyclist safety via intersection monitoring and analysis; and
  • HiRain Technologies, a leading technology solution provider for the transportation market in China that provides autonomous trucks and AGVs, as well as Vehicle to Anything (V2X) applications, to improve operational efficiency, mitigate risks and enhance worker safety.

Corporate Developments

To better position itself for long-term growth, Innoviz moved its corporate headquarters to a new facility in Rosh Ha'ayin, Israel. The move included the Company's Israel-based production lines, and the resulting downtime and re-installation was used for meaningful improvements in its systems. These upgrades have resulted in substantially reduced cycle times and a significant improvement in throughput for the calibration and testing processes. The move has eliminated a key bottleneck in the overall production process that will enable more InnovizOne units to be sold into non-automotive markets beginning in the fourth quarter of 2022 and ramping into 2023.

Third Quarter 2022 Financial Results

Revenues in the third quarter of 2022 were $0.9 million, compared to $2.1 million in the third quarter of 2021, with revenues impacted primarily by downtime from the Company's headquarter move and related testing and calibration system upgrades. The Company expects InnovizOne sales to normalize in the fourth quarter of 2022.

Operating expenses in the third quarter of 2022 were $31.3 million, compared to $30.0 million in the third quarter of 2021. Operating expenses in the third quarter of 2022 included $4.9 million of share-based compensation compared to $8.2 million of share-based compensation in the third quarter of 2021. The increase in operating expenses in the third quarter of 2022 compared to the third quarter of 2021 was primarily due to an increase in head count, partially offset by a decrease in share-based compensation.

Research and development expenses in the third quarter of 2022 were $24.2 million, an increase from $20.6 million in the third quarter of 2021. Research and development expenses in the third quarter of 2022 included $3.2 million attributable to share-based compensation compared to $3.7 million in the third quarter of 2021.

Innoviz maintains a high liquidity level with approximately $218 million in cash, short term deposits, short term restricted cash and marketable securities as of September 30, 2022.

Guidance

Innoviz reaffirms the following 2022 guidance it has previously provided:

  • The Company has achieved its stated goal of winning at least one new series production award in 2022, and to date has delivered two.
  • The Company expects to increase its forward-looking order book by more than 30% by the end of 2022 and has already delivered a 165% increase year to date.
  • The Company has achieved its expected stated goal to secure 10 pre-production programs during 2022. To date, the Company has participated in 14.

Conference Call

Innoviz management will hold a web conference today, November 9, 2022, at 9:00 a.m. Eastern time (6:00 a.m. Pacific time) to discuss these results. 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, 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 www.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
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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 forward-looking order book, and Innoviz's projected future results. 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. "Forward-looking order book" is the cumulative projected future sales of hardware and perception software based on current estimates of volumes and pricing relating to a project. Many factors could cause actual future events, and, in the case of our forward-looking order book, actual orders, 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 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 SEC on March 30, 2022 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)

 
  

Nine Months Ended

 

Three Months Ended

  

September 30,

 

September 30,

  

2022

 

2021

 

2022

 

2021

  

(Unaudited)

 

(Unaudited)

         

Revenues

$

4,449

$

3,811

$

878

$

2,076

Cost of revenues

 

(10,677)

 

(5,737)

 

(4,593)

 

(2,201)

         

Gross loss

 

(6,228)

 

(1,926)

 

(3,715)

 

(125)

         

Operating expenses:

        

Research and development

 

68,862

 

69,397

 

24,162

 

20,576

Selling and marketing

 

7,875

 

20,834

 

2,494

 

3,652

General and administrative

 

14,341

 

30,179

 

4,597

 

5,753

         

Total operating expenses

 

91,078

 

120,410

 

31,253

 

29,981

         

Operating loss

 

(97,306)

 

(122,336)

 

(34,968)

 

(30,106)

         

Financial income, net

 

4,852

 

2,827

 

812

 

3,735

         

Loss before taxes on income

 

(92,454)

 

(119,509)

 

(34,156)

 

(26,371)

Taxes on income

 

(97)

 

(132)

 

(49)

 

(60)

         

Net loss

$

(92,551)

$

(119,641)

$

(34,205)

$

(26,431)

         

Basic and diluted net loss per ordinary share

$

(0.69)

$

(1.35)

$

(0.25)

$

(0.20)

         

Weighted average number of ordinary shares used
     in computing basic and diluted net loss
     per ordinary share

 

134,939,362

 

92,115,826

 

135,602,409

 

133,430,689

 

INNOVIZ TECHNOLOGIES LTD. AND ITS SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

U.S. dollars in thousands

 
  

September 30,

 

December 31,

 
  

2022

 

2021

 

ASSETS

 

(Unaudited)

   

 CURRENT ASSETS:

     

Cash and cash equivalents

$

32,593

$

23,640

 

Short term restricted cash

 

723

 

901

 

Bank deposits

 

135,546

 

230,483

 

Marketable securities

 

34,602

 

11,607

 

Trade receivables

 

778

 

513

 

Inventory

 

4,708

 

4,256

 

Prepaid expenses and other current assets

 

3,254

 

3,029

 

 Total current assets

 

212,204

 

274,429

 
      

 LONG-TERM ASSETS:

     

Marketable securities

 

14,450

 

38,289

 

Restricted deposits

 

2,509

 

-

 

Property and equipment, net

 

28,246

 

14,502

 

Operating lease right-of-use assets, net

 

26,523

 

-

 

 Total long-term assets

 

71,728

 

52,791

 

 Total assets

$

283,932

$

327,220

 
      
  
  

 CURRENT LIABILITIES:

     

Trade payables

$

5,383

$

5,764

 

Advances from customers and deferred revenues

 

1,243

 

196

 

Employees and payroll accruals

 

9,879

 

8,997

 

Accrued expenses and other current liabilities

 

8,969

 

6,708

 

Operating lease liabilities

 

2,557

 

-

 

 Total current liabilities

 

28,031

 

21,665

 
      

 LONG-TERM LIABILITIES:

     
      

Advances from customers and deferred revenues

 

3,804

 

4,517

 

Other liabilities

 

-

 

597

 

Operating lease liabilities

 

29,913

 

-

 

Warrants liability

 

1,275

 

1,639

 

 Total long-term liabilities

 

34,992

 

6,753

 
      

 SHAREHOLDERS' EQUITY:

     

Ordinary Shares of no-par value

 

-

 

-

 

Additional paid-in capital

 

698,422

 

683,764

 

Accumulated deficit

 

(477,513)

 

(384,962)

 

 Total shareholders' equity

 

220,909

 

298,802

 

 Total liabilities and shareholders' equity

$

283,932

$

327,220

 
 

INNOVIZ TECHNOLOGIES LTD. AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

U.S. dollars in thousands

 
  

Nine Months
Ended

 September 30,

 

Three Months
Ended

September 30,

  

2022

 

2021

 

2022

 

2021

  

(Unaudited)

 

(Unaudited)

Cash flows from operating activities:

        
         

 Net loss

$

(92,551)

$

(119,641)

$

(34,205)

$

(26,431)

         

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

        

Depreciation and amortization

 

5,929

 

2,024

 

1,737

 

699

Remeasurement of warrants liability

 

(335)

 

(2,744)

 

454

 

(3,589)

Increase in accrued interest on bank deposits

 

(567)

 

-

 

(322)

 

-

Remeasurement of marketable securities

 

844

 

-

 

137

 

-

Share-based compensation 

 

14,097

 

59,827

 

4,932

 

8,165

Foreign exchange loss (gain), net

 

1,421

 

(137)

 

201

 

(80)

Decrease (increase) in prepaid expenses and other assets

 

(289)

 

(1,136)

 

2,897

 

4,612

Decrease (increase) in trade receivables 

 

(265)

 

1,373

 

297

 

866

Increase in inventory

 

(452)

 

(2,447)

 

(57)

 

(947)

Changes in operating lease assets and liabilities, net

 

5,483

 

-

 

5,913

 

-

Decrease in trade payables

 

(381)

 

(4,361)

 

(441)

 

(7,131)

Increase in accrued expenses and other liabilities

 

283

 

1,344

 

1,468

 

474

Increase (decrease) in employees and payroll accruals

 

882

 

2,143

 

1,440

 

(2,019)

Increase (decrease) in advances from customers and deferred revenues

 

334

 

570

 

91

 

(968)

Net cash used in operating activities

 

(65,567)

 

(63,185)

 

(15,458)

 

(26,349)

Cash flows from investing activities:

        

    Purchase of property and equipment

 

(17,739)

 

(2,998)

 

(12,713)

 

(864)

Investment in bank deposits

 

(79,500)

 

(215,000)

 

(29,500)

 

(20,000)

Withdrawal of bank deposits

 

175,000

 

30,000

 

40,000

 

30,000

Decrease (increase) in restricted deposits

 

(2,633)

 

56

 

(53)

 

55

Net cash provided by (used in) investing activities

 

75,128

 

(187,942)

 

(2,266)

 

9,191

Cash flows from financing activities:

        

Cash received from Transactions, net of issuance cost

 

-

 

122,728

 

-

 

-

Issuance of ordinary shares, net of issuance cost

 

-

 

217,343

 

-

 

-

Proceeds from exercise of options

 

507

 

690

 

214

 

222

Repayment of loans

 

-

 

(179)

 

-

 

(46)

Net cash provided by financing activities

 

507

 

340,582

 

214

 

176

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

 

(1,293)

 

216

 

(171)

 

196

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

 

8,775

 

89,671

 

(17,681)

 

(16,786)

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

 

24,541

 

50,766

 

50,997

 

157,223

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

$

33,316

$

140,437

$

33,316

$

140,437

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