Mobileye Global: Navigating 2024 with Resilience and Growth Opportunities

As we delve into the financial results for Mobileye Global Inc. (Nasdaq: MBLY) for the full year 2024, it becomes evident that the company has weathered the challenges of the past year with remarkable resilience. Despite a revenue decline in the fourth quarter, Mobileye's long-term growth prospects remain promising, driven by a strong pipeline of advanced product development programs and a commitment to technological innovation.



Fourth Quarter and Full-Year 2024 Business Highlights

Mobileye's impressive product execution in 2024 is evident in several key achievements:

1. Core Business Growth: The company launched ADAS programs into 313 car models and managed an additional 80 active ADAS development projects. This demonstrates Mobileye's ability to maintain a strong foothold in the core business while pursuing growth opportunities in advanced solutions.
2. Technological Advancements: Mobileye made significant progress across the pillars that support its portfolio of advanced solutions. Key developments include:
* The EyeQ6 High System-on-Chip (SoC) is on-track for series production launch, achieving 10x the frame-per-second processing in comparison to EyeQ5 High with high efficiency.
* Imaging radar B-samples achieved outstanding performance across hundreds of OEM tests, complementing other sensors to provide a more comprehensive understanding of the vehicle's environment.
* The compound AI system software infrastructure inside the EyeQ6 High-based family of ECUs delivers line-of-sight to approximately 100x the camera-only mean-time-between-failure as compared to EyeQ5 High, ensuring enhanced reliability.
3. Advanced Portfolio Progress: Within its advanced portfolio, Mobileye progressed significantly on the SuperVisionTM, ChauffeurTM, and DriveTM projects for VW Group, achieving milestones on the path to start-of-production.
4. Business Development Activity: Mobileye won well-above 95% of the ADAS programs awarded by its top customers. On the advanced product side, decision-making timing was slower than expected, but the number of engagements significantly expanded, and the company gained additional clarity on future segmentation and volume expectations of premium ADAS and AV products.



Financial Performance and Outlook

Mobileye's revenue decreased 23% year over year to $490 million in the fourth quarter of 2024, primarily due to a 20% reduction in EyeQ SoC volumes. This decline was related to a significant inventory build-up at Tier 1 customers, including in the fourth quarter of 2023. Despite this setback, Mobileye generated net cash from operating activities of $400 million in the year ended December 28, 2024, slightly higher than full-year 2023. The company's balance sheet remains strong, with $1.4 billion of cash and cash equivalents and zero debt as of December 28, 2024.

Mobileye's full-year financial guidance implies a return to revenue growth in 2025, reflecting the company's confidence in its long-term growth prospects. Diluted EPS (GAAP) was $(0.09) and Adjusted Diluted EPS (Non-GAAP) was $0.13 in the fourth quarter of 2024.

Conclusion

Mobileye Global's full-year 2024 earnings report demonstrates the company's ability to navigate challenging market conditions and maintain a strong pipeline of advanced product development programs. By focusing on technological innovation, expanding its customer base, and capitalizing on growth opportunities, Mobileye is well-positioned to achieve long-term growth and solidify its competitive position in the autonomous driving market. As investors, it is essential to monitor Mobileye's progress and consider the potential implications of its strategic initiatives for the company's long-term success.