Aeva (AEVA) 6 Nov 24 2024 Q3 Earnings call transcript

Aeva Technologies, a leading provider of 4D LiDAR technology, recently held its third quarter 2024 earnings call, showcasing a significant uptick in commercial momentum across multiple fronts. The call, led by Co-Founder and CEO Soroush Salehian, CFO Saurabh Sinha, and Senior Director of Investor Relations and Corporate Development Andrew Fung, highlighted the company's strategic achievements and future growth prospects.

Major Accomplishments in Q3

Aeva's Q3 was marked by significant achievements, with the company securing a major industrial production win for security applications with The Indoor Lab, a leading AI-powered analytics solutions provider. This multiyear supply agreement represents a major expansion in security applications for Aeva, marking its first industrial production win for Atlas, its next-generation 4D LiDAR designed for mass production. Atlas sensors will be integrated into The Indoor Labs LiDAR Overwatch Perception Platform, enabling AI-powered analytics and monitoring for critical infrastructure.

In the automotive sector, Aeva's production partners, Torc and Daimler Truck, achieved a significant milestone towards safe and scalable commercialization with successful validation of fully driverless operations at highway speeds. Aeva's 4D LiDAR is the exclusive long and ultra-long-range LiDAR supplier for Daimler Truck's autonomous truck production program. The company also secured a major European passenger OEM's automated vehicle validation program, demonstrating the growing interest in FMCW technology for automotive applications.

Financial Highlights and Outlook

The financial highlights for Q3 included revenue of $2.3 million, reflecting the scaling of sensor shipments to automotive and industrial customers, as well as the Daimler Truck program. The non-GAAP operating loss was $31.4 million for the quarter, with a liquidity totaling $259.8 million, positioning Aeva to support current production partners for their SOP launches and secure additional production program wins.

Looking ahead, Aeva is focused on meeting the increasing demand and securing additional production wins, including the global top 10 passenger OEM's production program, for which Aeva has advanced through multiple phases of the RFQ. The company is also capitalizing on growing interest in FMCW technology for automation and perception solutions across industries, including industrial automation, security, and beyond.

Analysts' Questions and Management's Responses

During the call, analysts raised questions about the company's progress with Daimler Truck's production program, the potential revenue opportunity with The Indoor Lab, and the status of the global top 10 passenger OEM's production program. Management provided detailed updates on these topics, highlighting the company's strategic decisions, manufacturing milestones, and financial projections.

Conclusion

Aeva Technologies' Q3 earnings call underscored the company's strategic progress, with a focus on securing production wins, expanding into new applications, and capitalizing on the growing interest in FMCW technology. The company's achievements in security, automotive, and industrial applications underscore its market leadership and potential for future growth. With a strong financial position and a clear path forward, Aeva Technologies is well-positioned to drive the adoption of 4D LiDAR in automotive, industrial, and other applications, further strengthening its position as a key player in the LiDAR market.