- Revenue increased 18% year over year to $530 million in the
third quarter.
- Operating Income and Adjusted Operating Income improved
substantially versus the third quarter of 2022.
- Diluted EPS (GAAP) was $0.02 and Adjusted Diluted EPS
(Non-GAAP) was $0.22 in the third quarter of 2023.
- Continued to progress with key OEM prospects for advanced
products, with FAW (SuperVision and Chauffeur) and Polestar
(Chauffeur) converting during Q3.
- Generated net cash from operating activities of $285 million in
the nine months ended September 30, 2023. Our balance sheet remains
strong with $1.2 billion of cash and cash equivalents and zero debt
as of September 30, 2023.
Mobileye Global Inc. (Nasdaq: MBLY) (“Mobileye”) today released
its financial results for the three months ended September 30,
2023.
“We are very pleased with Q3 results, as operating leverage on
strong revenue growth has led to significant increases in operating
income,” said Mobileye President and CEO Prof. Amnon Shashua. “On
the product side, very positive consumer and media feedback to the
August roll-out of the SuperVision navigate on pilot software to
Zeekr vehicles was a key proof-point of the competitive advantages
of our advanced products. This in part led to (i) conversions with
Polestar and FAW during the quarter, (ii) continued progress with
the balance of the 9 core OEM prospects we noted on our last
earnings call, and (iii) new interest from an additional wave of
global automakers. Since the end of Q3, the tragic events in Israel
have affected us all, but strong business continuity planning,
lessons learned during COVID-19 disruptions, and the diligence of
our remarkable team has enabled us to limit disruption and continue
to execute our business priorities.”
Third Quarter 2023 Business Highlights
- The business development pipeline continued to be robust in the
quarter. Based on design wins achieved year-to-date in 2023 and the
current opportunity pipeline, we are on-track for 2023 to exceed
the record design win activity generated in 2022 on a volume,
revenue, and average system price basis.1.
- Mobileye and Zeekr executed an over-the-air software update to
more than 110,000 Zeekr customers that, for the first time,
delivered the full highway SuperVision feature set in large volume.
Feedback has been favorable, with media highlighting that the
upgraded Navigation ZEEKR Pilot (NZP) system (which is based on
SuperVision) outperforms stiff competition in China despite
significantly less sensor and compute content.
- We announced an expansive relationship with FAW, one of the
largest volume automakers in China, to equip SuperVision-based
features on a series of vehicles beginning in late 2024. The
program also includes development of a Chauffeur-based system for a
launch expected by late 2025. The success of the Zeekr software
roll-out noted above was a direct catalyst for the FAW announcement
and has resulted in acceleration of other business development
discussions.
- We announced the addition of a Chauffeur program to the
expanding relationship with Polestar. The ability to leverage the
eyes-on SuperVision system as a bridge to eyes-off Chauffeur is
being recognized as a key differentiator by our customers. Nearly
all of our development work with global OEMs on SuperVision
includes a plan to scale to Chauffeur as well.
Third Quarter 2023 Financial Summary and Key Highlights
(Unaudited)
GAAP
U.S. dollars in millions
Q3 2023
Q3 2022
% Y/Y
Revenue
$
530
$
450
18
%
Gross Profit
$
272
$
217
25
%
Gross Margin
51
%
48
%
+310bps
Operating Income (Loss)
$
8
$
(25
)
*NM
Operating Margin
2
%
(6
)%
+706bps
Net Income (Loss)
$
17
$
(45
)
*NM
EPS - Basic
$
0.02
$
(0.06
)
*NM
EPS - Diluted
$
0.02
$
(0.06
)
*NM
*Not Meaningful
Non-GAAP
U.S. dollars in millions
Q3 2023
Q3 2022
% Y/Y
Revenue
$
530
$
450
18
%
Adjusted Gross Profit
$
366
$
332
10
%
Adjusted Gross Margin
69
%
74
%
(472)bps
Adjusted Operating Income
$
182
$
143
27
%
Adjusted Operating Margin
34
%
32
%
+256bps
Adjusted Net Income
$
181
$
114
59
%
Adjusted EPS - Basic
$
0.22
$
0.15
48
%
Adjusted EPS - Diluted
$
0.22
$
0.15
47
%
- Revenue of $530 million increased by 18% compared to the third
quarter of 2022, primarily due to a combination of volume and ASP
growth in our EyeQ® chip related revenue.
- Average System Price2 was $53.8 in the third quarter of 2023,
which is largely flat on a year-over-year basis. Higher core EyeQ
prices were offset by slightly lower SuperVision volumes as a
percentage of overall revenue.
- Gross Margin in the third quarter of 2023 increased by 3
percentage points as compared to the third quarter of 2022. The
impact of the lower cost attributable to amortization of intangible
assets as a percentage of revenue, was partially offset by the
downward impact of the increased cost of our EyeQ® chip (and
associated price increase to customers).
- Adjusted Gross Margin declined by approximately 5 percentage
points in the third quarter of 2023 as compared to the prior year
period. The decrease was primarily due to the increased cost of our
EyeQ® chip which was passed through as a price increase to
customers (as of the beginning of 2023) on a zero-margin
basis.
- Positive Operating Margin of 2% in the third quarter of 2023
compared to a negative margin of 6% in the prior year period. The
increase was primarily related to a higher Gross Margin and to
lower operating expenses as a percentage of revenue as compared to
the third quarter of 2022.
- Adjusted Operating Margin increased by approximately 3
percentage points in the third quarter of 2023 as compared to the
prior year period. Operating leverage driven by revenue growth and
operating expenses that were largely consistent on a year-over-year
basis led to a significant decrease in operating expenses as a
percentage of revenue.
- Operating cash flow for the nine months ended September 30,
2023 was $285 million. This included significant outflows related
to re-building our strategic inventory of EyeQ chips, which had
been significantly reduced during the semiconductor supply chain
crisis in 2021 and 2022. Cash used in purchases of property and
equipment was $75 million for that same period.
1 Mobileye’s revenue for the periods presented represent
estimated volumes 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. See the disclaimer under the heading “Forward-Looking
Statements” below for important limitations applicable to these
estimates.
2 Average System Price is calculated as the sum of revenue
related to EyeQ® and SuperVision systems, divided by the number of
systems shipped.
Updated Financial Guidance for the 2023 Fiscal Year
We are updating our guidance for the 2023 fiscal year that we
last provided on July 27, 2023:
Updated Guidance Full
Year 2023
Previous Guidance Full Year
2023
U.S. dollars in millions
Low
High
Range
Revenue
$
2,065
$
2,090
$
2,065 - 2,114
Operating Loss
$
(79
)
$
(62
)
$
(129) - (98
)
Amortization of acquired intangible
assets
$
474
$
474
$
474
Share-based compensation expense
$
253
$
253
$
255
Adjusted Operating Income
$
648
$
665
$
600 - 631
Our updated guidance reflects a 0.6% reduction in expected
Revenue, at the midpoint, as we now expect SuperVision shipments in
Q4 of 2023 to be at the lower end of what was incorporated into our
previous guidance. Our updated guidance also reflects an
improvement in expected Operating Loss (GAAP) and Adjusted
Operating Income (Non-GAAP), at the midpoint, of 37% and 7%,
respectively, due to lower than expected operating expenses, both
in Q3 and Q4 of 2023.
This information reflects Mobileye’s expectations for Revenue,
Operating Loss and Adjusted Operating Income results for the year
ending December 30, 2023. We believe Adjusted Operating Income (a
non-GAAP metric) is an appropriate metric as it excludes
significant non-cash expenses including: 1) Amortization charges
related to intangible assets consisting of developed technology,
customer relationships, and brands as a result of Intel’s
acquisition of Mobileye in 2017 and the acquisition of Moovit in
2020; and, 2) Share-based compensation expense. These statements
represent forward-looking information and may not represent a
financial outlook, and actual results may vary. Please see the
risks and assumptions referred to in the Forward-Looking Statements
section of this release.
Earnings Conference Call Webcast Information
Mobileye will host a conference call today, October 26, 2023, at
8:00am ET (3:00pm IT) to review its results and provide a general
business update. The conference call will be accessible live via a
webcast on Mobileye’s investor relations site, which can be found
at ir.mobileye.com, and a replay of the webcast will be made
available shortly after the event’s conclusion.
Non-GAAP Financial Measures
This press release contains Adjusted Gross Profit and Margin,
Adjusted Operating Income and Margin, Adjusted Net Income and
Adjusted EPS (Earnings Per Share), which are financial measures not
presented in accordance with GAAP. We define Adjusted Gross Profit
as gross profit presented in accordance with GAAP, excluding
amortization of acquisition related intangibles and share-based
compensation expense. Adjusted Gross Margin is calculated as
Adjusted Gross Profit divided by total revenue. We define Adjusted
Operating Income as operating loss presented in accordance with
GAAP, adjusted to exclude amortization of acquisition related
intangibles, share-based compensation expenses and expenses related
to our initial public offering that was completed on October 28,
2022 (the “Mobileye IPO”). Operating margin is calculated as
operating loss divided by total revenue, and Adjusted Operating
Margin is calculated as Adjusted Operating Income divided by total
revenue. We define Adjusted Net Income as net loss presented in
accordance with GAAP, adjusted to exclude amortization of
acquisition related intangibles, share-based compensation expense,
and expenses related to the Mobileye IPO, as well as the related
income tax effects. Income tax effects have been calculated using
the applicable statutory tax rate for each adjustment taking into
consideration the associated valuation allowance impacts. The
adjustment for income tax effects consists primarily of the
deferred tax impact of the amortization of acquired intangible
assets. Adjusted Basic EPS is calculated by dividing Adjusted Net
Income for the period by the weighted-average number of common
shares outstanding during the period. Adjusted Diluted EPS is
calculated by dividing Adjusted Net Income by the weighted-average
number of common shares outstanding during the period, while giving
effect to all potentially dilutive common shares to the extent they
are dilutive.
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 150 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; adverse
conditions in Israel, including as a result of war and geopolitical
conflict, which may affect our operations and may limit our ability
to produce and sell our solutions; any disruption in our operations
by the obligations of our personnel to perform military service as
a result of current or future military actions involving Israel;
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.
Third Quarter 2023 Financial Results
Mobileye Global Inc. Condensed Consolidated Statements
of Operations (unaudited)
Three Months Ended
Nine months Ended
U.S. dollars in millions, except share
and per share amounts
September 30, 2023
October 1, 2022
September 30, 2023
October 1, 2022
Revenue
$
530
$
450
$
1,442
$
1,304
Cost of revenue
258
233
739
682
Gross profit
272
217
703
622
Research and development, net
218
206
664
565
Sales and marketing
28
27
90
91
General and administrative
18
9
55
27
Total operating expenses
264
242
809
683
Operating income (loss)
8
(25
)
(106
)
(61
)
Interest income with related party
—
5
—
9
Interest expense with related party
—
(11
)
—
(20
)
Other financial income (expense), net
15
1
38
6
Income (loss) before income
taxes
23
(30
)
(68
)
(66
)
Benefit (provision) for income taxes
(6
)
(15
)
(22
)
(46
)
Net income (loss)
$
17
$
(45
)
$
(90
)
$
(112
)
Earnings (loss) per share:
Basic
$
0.02
$
(0.06
)
$
(0.11
)
$
(0.15
)
Diluted
$
0.02
$
(0.06
)
$
(0.11
)
$
(0.15
)
Weighted-average number of shares used
in computation of earnings (loss) per share (in millions):
Basic
806
750
804
750
Diluted
810
750
804
750
Mobileye Global Inc. Condensed Consolidated Balance
sheets (unaudited)
U.S. dollars in millions
September 30, 2023
December 31, 2022
Assets
Current assets:
Cash and cash equivalents
$
1,193
$
1,024
Trade accounts receivable, net
281
269
Inventories
354
113
Other current assets
80
110
Total current assets
1,908
1,516
Non-current assets:
Property and equipment, net
426
384
Intangible assets, net
2,165
2,527
Goodwill
10,895
10,895
Other long-term assets
111
119
Total non-current assets
13,597
13,925
TOTAL ASSETS
$
15,505
$
15,441
Liabilities and Equity
Current liabilities:
Accounts payable and accrued expenses
$
221
$
189
Employee related accrued expenses
79
88
Related party payable
44
73
Other current liabilities
47
34
Total current liabilities
391
384
Non-current liabilities:
Long-term employee benefits
53
56
Deferred tax liabilities
149
162
Other long-term liabilities
39
45
Total non-current liabilities
241
263
TOTAL LIABILITIES
$
632
$
647
TOTAL EQUITY
14,873
14,794
TOTAL LIABILITIES AND EQUITY
$
15,505
$
15,441
Mobileye Global Inc. Condensed Consolidated Cash Flows
(unaudited)
Nine Months Ended
U.S. dollars in millions
September 30, 2023
October 1, 2022
CASH FLOWS FROM OPERATING
ACTIVITIES
Net income (loss)
$
(90
)
$
(112
)
Adjustments to reconcile net income
(loss) to net cash provided by operating activities:
Depreciation of property and equipment
24
17
Share-based compensation
190
112
Amortization of intangible assets
362
413
Exchange rate differences on cash and cash
equivalents
9
6
Deferred income taxes
(13
)
(8
)
Interest on Dividend Note to related
party, net
—
20
Interest with related party, net
16
20
Other
(1
)
(3
)
Changes in operating assets and
liabilities:
Decrease (increase) in trade accounts
receivable
6
(67
)
Decrease (increase) in other current
assets
16
28
Decrease (increase) in inventories
(241
)
(8
)
Increase (decrease) in accounts payable,
accrued expenses and related party payable
21
22
Increase (decrease) in employee-related
accrued expenses and long term benefits
(12
)
(67
)
Increase (decrease) in other current
liabilities
(5
)
10
Decrease (increase) in other long term
assets
3
15
Increase (decrease) in long-term
liabilities
—
(3
)
Net cash provided by operating
activities
285
395
CASH FLOWS FROM INVESTING
ACTIVITIES
Purchase of property and equipment
(75
)
(79
)
Repayment of loan due from related
party
—
734
Issuance of loan to related party
—
(336
)
Net cash provided by (used in)
investing activities
(75
)
319
CASH FLOWS FROM FINANCING
ACTIVITIES
Net transfers from Parent
—
99
Dividend paid
—
(336
)
Share-based compensation recharge
(29
)
(200
)
Deferred offering costs
—
(14
)
Net cash provided by (used in)
financing activities
(29
)
(451
)
Effect of foreign exchange rate changes on
cash and cash equivalents
(9
)
(6
)
Increase in cash, cash equivalents and
restricted cash
172
257
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
$
1,207
$
882
Mobileye Global Inc. Reconciliation of GAAP Gross
Profit and Margin to Non-GAAP Adjusted Gross Profit and Margin3
(unaudited)
Three Months Ended
Nine months Ended
U.S. dollars in millions
September 30, 2023
October 1, 2022
September 30, 2023
October 1, 2022
Amount
% of Revenue
Amount
% of Revenue
Amount
% of Revenue
Amount
% of Revenue
Gross Profit
$ 272
51
%
$ 217
48
%
$ 703
49
%
$ 622
48
%
Add: Amortization of acquired intangible
assets
94
18
%
115
26
%
311
22
%
355
27
%
Add: Share-based compensation expense
—
—
%
—
—
%
2
—
%
—
—
%
Adjusted Gross Profit
$ 366
69
%
$ 332
74
%
$ 1,016
70
%
$ 977
75
%
3Adjusted gross margin is calculated as adjusted gross profit as
a percentage of revenue
Mobileye Global Inc. Reconciliation of GAAP Operating
Income (loss) and Margin to Non-GAAP Adjusted Operating Income and
Margin4 (unaudited)
Three Months Ended
Nine months Ended
U.S. dollars in millions
September 30, 2023
October 1, 2022
September 30, 2023
October 1, 2022
Amount
% of Revenue
Amount
% of Revenue
Amount
% of Revenue
Amount
% of Revenue
Operating Income (Loss)
$
8
2
%
$
(25
)
(6
%)
$
(106
)
(7
%)
$
(61
)
(5
%)
Add: Amortization of acquired intangible
assets
111
21
%
131
29
%
362
25
%
413
32
%
Add: Share-based compensation expense
63
12
%
36
8
%
190
13
%
112
9
%
Add: Expenses related to the IPO
—
—
%
1
—
%
—
—
%
4
—
%
Adjusted Operating Income
$
182
34
%
$
143
32
%
$
446
31
%
$
468
36
%
4Adjusted operating margin is calculated as adjusted operating
income as a percentage of revenue
Mobileye Global Inc. Reconciliation of GAAP Net Income
(loss) to Non-GAAP Adjusted Net Income (unaudited)
Three Months Ended
Nine months Ended
U.S. dollars in millions
September 30, 2023
October 1, 2022
September 30, 2023
October 1, 2022
Amount
% of Revenue
Amount
% of Revenue
Amount
% of Revenue
Amount
% of Revenue
Net Income (Loss)
$
17
3
%
$
(45
)
(10
%)
$
(90
)
(6
%)
$
(112
)
(9
%)
Add: Amortization of acquired intangible
assets
111
21
%
131
29
%
362
25
%
413
32
%
Add: Share-based compensation expense
63
12
%
36
8
%
190
13
%
112
9
%
Add: Expenses related to the Mobileye
IPO
—
—
%
1
—
%
—
—
%
4
—
%
Less: Income tax effects
(10
)
(2
%)
(9
)
(2
%)
(31
)
(2
%)
(27
)
(2
%)
Adjusted Net Income
$
181
34
%
$
114
25
%
$
431
30
%
$
390
30
%
Supplemental Information - Average System Price
(unaudited)
Q3 2022
Q4 2022
Q1 2023
Q2 2023
Q3 2023
EyeQ and SuperVision revenue (U.S. dollars
in millions)
$
432
$
543
$
438
$
430
$
507
Number of systems shipped (in
millions)
8.2
9.7
8.1
8.3
9.4
Average system price (U.S. dollars)
$
53.0
$
56.2
$
53.9
$
51.7
$
53.8
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231026168155/en/
Dan Galves Investor Relations investors@mobileye.com
Justin Hyde Media Relations justin.hyde@mobileye.com
Mobileye Global (NASDAQ:MBLY)
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De Mai 2024 até Jun 2024
Mobileye Global (NASDAQ:MBLY)
Gráfico Histórico do Ativo
De Jun 2023 até Jun 2024