NASDAQ:ARBE Arbe Robotics Q1 2024 Earnings Report $1.36 -0.02 (-1.45%) Closing price 04/25/2025 04:00 PM EasternExtended Trading$1.38 +0.02 (+1.47%) As of 04/25/2025 07:29 PM Eastern Extended trading is trading that happens on electronic markets outside of regular trading hours. This is a fair market value extended hours price provided by Polygon.io. Learn more. Earnings HistoryForecast Arbe Robotics EPS ResultsActual EPS-$0.14Consensus EPS -$0.07Beat/MissMissed by -$0.07One Year Ago EPSN/AArbe Robotics Revenue ResultsActual Revenue$0.14 millionExpected Revenue$0.30 millionBeat/MissMissed by -$160.00 thousandYoY Revenue GrowthN/AArbe Robotics Announcement DetailsQuarterQ1 2024Date5/22/2024TimeN/AConference Call DateWednesday, May 22, 2024Conference Call Time8:30AM ETUpcoming EarningsArbe Robotics' Q1 2025 earnings is scheduled for Tuesday, May 20, 2025, with a conference call scheduled on Wednesday, May 21, 2025 at 8:30 AM ET. Check back for transcripts, audio, and key financial metrics as they become available.Conference Call ResourcesConference Call AudioConference Call TranscriptSlide DeckPress Release (8-K)Earnings HistoryCompany ProfileSlide DeckFull Screen Slide DeckPowered by Arbe Robotics Q1 2024 Earnings Call TranscriptProvided by QuartrMay 22, 2024 ShareLink copied to clipboard.There are 8 speakers on the call. Operator00:00:00Good morning, everyone, and welcome to the RBAY Robotics First Quarter 20 24 Earnings Results Conference Call. All participants will be in a listen only mode. Please note that today's event is being recorded. At this time, I'd like to turn the floor over to Miri Siegel, CEO of MSIR. Please go ahead. Speaker 100:00:42Thank you, everyone, for joining us today. Welcome to Arbe's Q1 2024 Financial Results Conference Call. 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 release also applies to this call. If you have not received a copy of the PR, please view it in the Investor Relations section of the company's website. Bobby Marenko, Arbez's Co Founder and CEO, will begin the call with a business update. Speaker 100:01:20Then we will turn the call over to Karim Pinto Flomenboim, our base CFO, who will review the financials in more detail. Finally, we will open the call for the question and answer session. With that, I'd like to turn it over to Koby Marenko, our base CEO. Kobi, please go ahead. Speaker 200:01:44Thank you, Yuri. Good morning, everyone, and thank you for joining us. I'd like to start by sharing some exciting updates with you. We congratulate HiReyn, one of our Tier 1s in China on being selected to supply radar systems powered by the RB chipset to a global leader in autonomous driving with mass production scheduled in 2025. We look forward to providing more details about this announcement soon. Speaker 200:02:13IRAIN also reached a significant milestone in Q1, the successful development of post point cloud algorithms including tracking classification and free space mapping. These algorithms have been integrated into high range imaging radar for serial production. These advancements were tested by OEMs demonstrating their potential to improve safety. Importantly, Hyren announced it will begin the mass production of these imaging radars by the end of this year. During the Q1, Arve and our Tier 1s made significant progress in reaching our goal of serial production by the end of this year. Speaker 200:02:57We worked with major OEMs on data collection for their level 2 plus and level 3 solutions as well as on improving the radar specification. As part of our progress in Japan, we'd like to update that a large Japanese automotive client is working to complete a massive data collection initiative with other radar solutions this year as part of the development of an advanced ADAS and AD architecture. There is a wide demand for next generation radar systems with a high channel count now considered essential for road safety. In March, the ADAS radar and radar perception at Mercedes emphasized publicly that ADAS radars require an array of at least 32x32 channels. Few companies meet this requirement and Albe exceeds it with the largest channel array on the market. Speaker 200:03:54We see similar requirements in RFPs from other major OEMs. We are pleased by the outstanding progress we are making with top OEMs worldwide. Despite industry delays, we are confident in our opportunity pipeline and our go to secure full design wins this year, especially with promising signs coming from leading top 10 OEMs. We look forward to sharing more updates very soon. Collaborations are key for RBAC. Speaker 200:04:25The NVIDIA GTC Conference NVIDIA shared that it has brought together a select group of advanced sensors from industry leaders including hardware's perception radar to create a rich ecosystem of simulation tools and applications as part of the Omniverse cloud API, these are designed to accelerate the path to autonomy. Additionally, at the 2024 Beijing International Automotive Exhibition Horizon Robotics, a leading provider of computing solutions for ADAS and autonomous driving in China showcased the integration of WIFU's 4 d imaging radar powered by the RBAC chipset with a Horizon Journey 6 Automotive AI Processor as part of their partner ecosystem. As many of you know, there have been important developments within our industry and shift towards new safety standouts and regulations. These are needed to drive the future of road safety. We firmly believe that Haudia has the best solution to effectively address these changes and we are well positioned to help lead the revolution. Speaker 200:05:38The new NHTSA federal safety standard from the U. S. Mandates automatic emergency braking or AEB including pedestrian AEB for all passenger cars and light trucks by September 2029. This safety measure is set to reduce collisions and accidents with pedestrians. At the same time, Euro NCAP 2,030 Roadmap aims for 0 road fatalities requiring proactive crash presentation in all scenarios. Speaker 200:06:10A key to success wholesaler will be in the sensors used to power the advanced safety standards and requirements. This creates a growing opportunity for the adoption of our technology which is the leading solution for tracking pedestrians and vehicles in challenging weather and lighting conditions even at high speed and over long distances. We expect that by the end of the decade over 15% of new cars will feature high end imaging radars like ours providing real safety and level 3 autonomy. Lastly, we are in the final stages of dual listing with an additional listing of the Tel Aviv Stock Exchange. At the same time, we are advancing further the convertible bond issuance on the Tel Aviv Stock Exchange to secure working capital and support the expected production ramp up in 2025. Speaker 200:07:06We are excited about the potential opportunities for Arbe and we believe that 2024 will prove to be a turning point for our company. Now I'd like to turn it over to our CFO, Karine, to go over the financials. Speaker 300:07:21Thank you, Kobi, and hello, everyone. I'd like to review our financial results for the Q1 of 20 24 in more detail. Total revenue in the Q1 was $100,000 a decrease from $400,000 in Q1 2023. Backlog as of March 31 was $1,000,000 and is expected to be recognized as revenue during 20 24. Negative gross margin for Q1 2024 was 194% compared to a positive gross margin of 11% in Q1 2023. Speaker 300:08:01The margin decrease was mainly related to a reduction in revenue and an increase in our workforce. Moving on to expenses. In Q1, 2024, we reported total operating expenses of $12,500,000 compared to $10,700,000 in Q1 2023. The increase in operating expenses was primarily driven by an increase in non cash share based compensation expenses totaling $1,900,000 To a lesser extent, labor cost increase was offset by bonus accrual release, favorable exchange rate and reduction in D and O insurance rate. Operating loss in the Q1 of 2024 was $12,800,000 compared to an operating loss of $10,600,000 in the Q1 of 2023. Speaker 300:09:02Adjusted EBITDA, a non GAAP measurement which excludes expenses for share based compensation and for non recurring items was a loss of $8,500,000 in Q1 of 2024 in accordance with our plan. This is compared to a loss of $8,400,000 in the Q1 of 2023. Net loss in the Q1 of 2024 increased to $12,800,000 compared to a net loss of $9,900,000 in the Q1 of 2023. Net loss in Q1, twenty twenty four included $45,000 of financial expense expenses partially offset by interest from deposits and warrants revaluation. This is compared to a $700,000 in financial income in the Q1 of 2023. Speaker 300:10:07Moving to our balance sheet. As of March 31, 2024, Arbe had $5,400,000 in cash and cash equivalents and $30,300,000 in short term bank deposits with no debt. With respect to our guidance for the year, we would like to reiterate what we previously shared. Our goal of achieving 4 design ins with automakers remains unchanged, as we observe continued strong interest in our market leading offering. We have strengthened our positioning in all our RFU engagements, even though the OEMs have shifted their decision timelines from late 2023 to 2024. Speaker 300:10:55The 2024 annual revenue are expected to be in line with those of 2023 followed by revenue growth in 2025. These revenue projections are based on the intention to be in full production in the second half of twenty twenty four as well as our decision to focus exclusively on getting our chipsets into production. We are committed to maintaining a strong and well managed balance sheet, focusing on cost effectiveness and the ability to fund our revenue growth. Adjusted EBITDA for 2024 is projected to be in the range of $30,000,000 loss to $36,000,000 loss. Now we will be happy to take your questions. Operator00:12:16Our first question comes from Joshua Buckhalter from TD Cowen. Please go ahead with your question. Speaker 400:12:23Hi, Dean. Good afternoon. Speaker 500:12:24Thanks for taking my question. I wanted to ask about the confidence in the achieving the 4 design wins this year. Any incremental data points or what you can give us and what gives you confidence that those are going to convert the second half of the year and maybe what led to the we've litigated in the past, but maybe an update on the timeline given it got pushed from 2023 into 2024. Any clues by geography or type of application that these wins are going to be for? Thank you. Speaker 200:12:58Yes. So basically as we said out of those opportunities were pushed from last quarter and are now coming to a decision point. What we see as a main change between last year and this year is that even in RFQs that were in the market the conditions were changed and the threshold for the radar got much higher and basically in majority of gives us a lot of comfort that majority of the market, all of the I think the top 10 OEMs at least understand that multi channel, high channel count radar is key for level 2 plus plus and level 3. And the fact that the regulation changed and added the need for automatic breaks in especially in all used cases gives our radar basically, I think, a backwind, a dramatic backwind, because any OEM will need to have this kind of solution. And the only way to solve it is with a high channel counter imaging radar and a camera. Speaker 200:14:35A camera alone cannot solve those scenarios. Even camera and LIDAR cannot solve it, but anyway the LIDAR is much too expensive for a feature that is basically not something that the OEMs can really charge the customer on it. To add to some light to your to the numbers, so we are today engaged with 11 CAL companies coming from Germany, from Sweden, from other countries in Europe, as well as from Japan and China. In all of those RFPs and RFQs we are already past a long process with of course our Tier 1 partners of evaluation of the radar, testing the radar in colder cases and showing the advantage of radar based on our chipset and high end channel count imaging radar based on our chipset as opposed to the solutions in the market that are based on TI or NXP chipsets that are called imaging radar. This is not really an imaging radar. Speaker 200:16:06And I think all of the OEMs understand the difference between real imaging radars like the ones that are based on our chipset or one of our competitors, our main competitor that is coming also from Israel and the existing legacy solutions that are based on the legacy chips that were not designed to meet the spec of tomorrow. They were designed for the spec of yesterday. And taking everything all of this into consideration we are sure that out of 11 opportunities that we are shortlisted We will win at least 4 in the coming months and we will be able to announce them to the market. This is the reason why we are raising the loan. The loan in Tel Aviv is based on a condition that we will win a contract. Speaker 200:17:11Our confidence in the fact that we are very close to winning the contract I think allows us to raise this money and also the confidence of the investor that we are close to that are willing to give us a loan with a conversion price that is more than 30% higher than our today share price. So I believe that we have we will have a very good year, like we said, a turning point for the company coming from development to business very soon. Speaker 500:17:58Thanks for the extensive Kobi. For my follow-up, I think in the press release you mentioned you're getting close to receiving full auto grade qualification. It feels like that process has been going on for a while. Can you maybe talk about what are the last few things you need to complete to get the auto grade sign off? And then is that a hurdle and something that needs to be completed before you sign one of these OEM wins? Speaker 500:18:23Or is that not the case? Thank you. Speaker 200:18:26I think our chipset the process of taking chipset to qualification on automotive is structured process. GlobalFoundries are leading it and managing it for us together with us and together with our engineers. We are more or less on the timeframe to finish it by the end of this quarter, early next quarter. And as we mentioned in last quarter, basically before you're starting a full qualification, you're doing mini qualification to make sure that there's no qualification, mini qualification and we are now prequalification, miniqualification and we are now in the middle of finishing the technical process, which includes thousands of hours of chips working in high temperatures and in low temperatures to make sure that they will be able to stand in all conditions that the automotive market wants. It doesn't look today that this is a showstopper for us in calls with our OEM partners, GlobalFoundries giving their objective assessment that the chips are going to be in production in very few months from now. Speaker 200:19:58So I think that all of the OEMs that are going to select our chipset with Magna or with HiReN or with other Tier 1 are really they are thrusting global foundries that global will bring those chips through production. And I believe this is not a major issue for us. Speaker 600:20:23Thank you. Operator00:20:26Our next question comes from Suji Desilva from ROTH Capital. Please go ahead with your question. Speaker 700:20:32Hi, Kobe. Hi, Kareem. Kobe, you talked about some of the progress with Hi Rain and Weifu in China. Can you just elaborate on the ramps that are time to revenue and what the how many programs that those involve? Speaker 200:20:47So we already stated that hiring and WIFU gave us preliminary order for 2025. Hiring is $30,000,000 WIFU is $10,000,000 and we are now engaged with a few programs to make sure that the customers will get radars based on our chipset in this volume in 2025. Speaker 600:21:14Okay. Speaker 700:21:15And those are for Automotive, Coby, Automotive? Speaker 200:21:20Yes. Some of them is trucks and robo taxis and we have a hiring 1 project in one of the poles of China for trucks. I would say that around 25% of it is non OEMs, non passenger vehicles, the rest is for passenger vehicles. Speaker 700:21:47Okay, great. Very helpful color, Tobey. Thanks. And then secondly on the you mentioned the NVIDIA Omniverse element. Is Arbeys radar the kind of exclusive radar element there? Speaker 700:21:58Or are there multiple radar elements involved? Are they looking for imaging radar? What's the color there on that partnership and inclusion? Speaker 200:22:09The only imaging radar, the only is the ARBES imaging radar of Protovil is also low end radar there for a radar belt, low end 4x4 radars, but the high end imaging radar is only ARPU. Great. Speaker 700:22:28All right. I think lastly, maybe the in China, can you talk about the significance of working with Horizon and Horizon and Weifu working together in terms of further penetrating the China market versus working with the Tier 1s like Weifu? Speaker 200:22:45So we are not allowed to elaborate a lot about our operations there. But what I can say is basically, Horizon is like NVIDIA, so it's the ECU. They are not a Tier 1. By the end of the day, there is a Tier 1 that's taking their chips and building the central compute and integrating our radar into this processor. And the same as we have integration with NVIDIA, we have this there is this kind of integration with Verizon and we believe that this is a main condition for part of the OEMs in China. Speaker 200:23:27As you probably aware, I think that the Chinese market is basically divided between NVIDIA and Horizon. They are controlling the ECU market in China. So with the fact that we are integrated with both of them, I think give us a lot of advantage in this essence. Speaker 700:23:48Okay. Again, very helpful color, Kobi. Thanks. Operator00:23:53Our next question comes from Jamie Perez from Lafferty. Please go ahead with your question. Speaker 400:23:59Hi. Thank you. Good day, everybody. Thanks for taking my question. I mean, over the last couple of quarters, we've seen a sentiment change for the EV early adopters and going more towards ICE and I think hybrid is also gaining share. Speaker 200:24:13I mean, could you give us Speaker 400:24:14a little bit color what do you do you have any exposure to hybrids and ICE vehicles? And my follow-up question for that is, a lot of EVs are focusing now on affordability, especially with the Chinese threatening to ship at low price Costco. So could you tell me what does that mean for your margins and the pricing power? Thanks. Speaker 200:24:41I think those are two great questions. So first of all, regarding the EV shift. So I think that this is part of the reason for the delays. So last year majority of the OEMs were focusing on moving almost totally to EV by 2,030. And according to that they decided that all of the new features like Level 3 and Level 2 plus plus would be launched solely on EV. Speaker 200:25:15Last quarter in the last quarter of 2023, the market strategically understood that the move to the shift to EV will take longer than expected due to price, due to customers' adoption, due to charging problems and so on. And this basically brought all of those programs of Level 3 into a state that they were reevaluate and the schedule was basically delayed. As we see it by the end of Q1, majority of the OEMs took a decision to launch those services on both EV and regular engines as well as of course for the hybrid. So from this perspective, there's no change right now. It caused a delay, but right now we are on the go. Speaker 200:26:18The second question that you raised, I think is dramatically interesting. The price pressure for EV is really pushing for sensors that are cheaper and imaging radar I would say is dramatically cheaper than LiDAR and we believe that this dramatically helps us at least on the NHTSA AEB standard. And also for Level 3, I think that our radar is affordable better than other sensors. Speaker 400:27:00So basically we have a we know so you have a price advantage versus radar. Now most of it like I said, most of the focus has been on passenger. I think on the electric vehicle, the commercial market has been doing a little bit better. I mean, could you maybe talk about the initiative in the commercial or transit market if you have any? All right. Speaker 400:27:23Thanks. Speaker 200:27:25We are not focusing it's not us but our Tier 1 most of our Tier 1s are not focusing on that. So at least on the Western world, on China we won a project with Didi's Trucks Company and Hywind also have some trucks project. But outside of China, Magna is not bidding on any trucks as of now. The volume in trucks is lower. Adaptation and the cost of integration is higher and the volume is not really make it economical for these kinds of solutions as of now. Speaker 400:28:18All right. Okay. I'll pass it back. Thanks for the questions. Operator00:28:24Our next question comes from Matthew Galinko from Maxim Group. Please go ahead with your question. Speaker 600:28:30Hi, thanks for taking my question. I was hoping you could maybe provide a little more detail around the investments you expect to make or need to make as you move into production in the back half this year? And I think your point is you plan to support through the node issue? Thanks. Speaker 200:28:54So maturity or basically all of our expenses service production were already done. This quarter Q1 we had last item that was related to increasing the capacity of the burning boats. So we will be able to supply much higher volumes next year. But all of the expenses that are related to production, which are majority of them is CapEx, already done and are behind that. And I think we are ready for revenues. Speaker 600:29:31Great. Thank you. Operator00:29:36Ladies and gentlemen, with that being our final question for today, we'll be ending today's conference call as well as today's presentation. We thank everyone for joining. You may now disconnect your lines.Read morePowered by Conference Call Audio Live Call not available Earnings Conference CallArbe Robotics Q1 202400:00 / 00:00Speed:1x1.25x1.5x2x Earnings DocumentsSlide DeckPress Release(8-K) Arbe Robotics Earnings HeadlinesHiRain Launches LRR615, Production-Intent Imaging Radar System Based on Arbe's ChipsetApril 24 at 2:00 AM | prnewswire.comArbe Robotics (NasdaqCM:ARBE) Reports Earnings Decline US$0.1M Sales Rise In Losses As Stock Drops 12% In A WeekApril 3, 2025 | finance.yahoo.comNew “Trump” currency proposed in DCAccording to one of the most connected men in Washington… A surprising new bill was just introduced in Washington. Its purpose: to put Donald Trump’s face on the $100 note. All to celebrate a new “golden age” for America. April 27, 2025 | Paradigm Press (Ad)Arbe Robotics: Decent Radar Credentials, But Not In VogueMarch 31, 2025 | seekingalpha.comAnalysts’ Opinions Are Mixed on These Technology Stocks: WISeKey International Holding (WKEY) and Micron (MU)March 26, 2025 | markets.businessinsider.com10 Penny Stocks With Huge Upside Potential According To AnalystsMarch 23, 2025 | insidermonkey.comSee More Arbe Robotics Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like Arbe Robotics? Sign up for Earnings360's daily newsletter to receive timely earnings updates on Arbe Robotics and other key companies, straight to your email. Email Address About Arbe RoboticsArbe Robotics (NASDAQ:ARBE), a semiconductor company, provides 4D imaging radar solutions for tier 1 automotive suppliers and automotive manufacturers in China, Hong Kong, Sweden, Germany, the United States, Israel, and internationally. It offers 4D imaging radar chipset solutions that address the core issues that have caused autonomous vehicle and autopilot accidents, such as detecting stationary objects, identifying vulnerable road users, operation at poor lighting conditions, and eliminating false alarms without radar ambiguities. 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There are 8 speakers on the call. Operator00:00:00Good morning, everyone, and welcome to the RBAY Robotics First Quarter 20 24 Earnings Results Conference Call. All participants will be in a listen only mode. Please note that today's event is being recorded. At this time, I'd like to turn the floor over to Miri Siegel, CEO of MSIR. Please go ahead. Speaker 100:00:42Thank you, everyone, for joining us today. Welcome to Arbe's Q1 2024 Financial Results Conference Call. 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 release also applies to this call. If you have not received a copy of the PR, please view it in the Investor Relations section of the company's website. Bobby Marenko, Arbez's Co Founder and CEO, will begin the call with a business update. Speaker 100:01:20Then we will turn the call over to Karim Pinto Flomenboim, our base CFO, who will review the financials in more detail. Finally, we will open the call for the question and answer session. With that, I'd like to turn it over to Koby Marenko, our base CEO. Kobi, please go ahead. Speaker 200:01:44Thank you, Yuri. Good morning, everyone, and thank you for joining us. I'd like to start by sharing some exciting updates with you. We congratulate HiReyn, one of our Tier 1s in China on being selected to supply radar systems powered by the RB chipset to a global leader in autonomous driving with mass production scheduled in 2025. We look forward to providing more details about this announcement soon. Speaker 200:02:13IRAIN also reached a significant milestone in Q1, the successful development of post point cloud algorithms including tracking classification and free space mapping. These algorithms have been integrated into high range imaging radar for serial production. These advancements were tested by OEMs demonstrating their potential to improve safety. Importantly, Hyren announced it will begin the mass production of these imaging radars by the end of this year. During the Q1, Arve and our Tier 1s made significant progress in reaching our goal of serial production by the end of this year. Speaker 200:02:57We worked with major OEMs on data collection for their level 2 plus and level 3 solutions as well as on improving the radar specification. As part of our progress in Japan, we'd like to update that a large Japanese automotive client is working to complete a massive data collection initiative with other radar solutions this year as part of the development of an advanced ADAS and AD architecture. There is a wide demand for next generation radar systems with a high channel count now considered essential for road safety. In March, the ADAS radar and radar perception at Mercedes emphasized publicly that ADAS radars require an array of at least 32x32 channels. Few companies meet this requirement and Albe exceeds it with the largest channel array on the market. Speaker 200:03:54We see similar requirements in RFPs from other major OEMs. We are pleased by the outstanding progress we are making with top OEMs worldwide. Despite industry delays, we are confident in our opportunity pipeline and our go to secure full design wins this year, especially with promising signs coming from leading top 10 OEMs. We look forward to sharing more updates very soon. Collaborations are key for RBAC. Speaker 200:04:25The NVIDIA GTC Conference NVIDIA shared that it has brought together a select group of advanced sensors from industry leaders including hardware's perception radar to create a rich ecosystem of simulation tools and applications as part of the Omniverse cloud API, these are designed to accelerate the path to autonomy. Additionally, at the 2024 Beijing International Automotive Exhibition Horizon Robotics, a leading provider of computing solutions for ADAS and autonomous driving in China showcased the integration of WIFU's 4 d imaging radar powered by the RBAC chipset with a Horizon Journey 6 Automotive AI Processor as part of their partner ecosystem. As many of you know, there have been important developments within our industry and shift towards new safety standouts and regulations. These are needed to drive the future of road safety. We firmly believe that Haudia has the best solution to effectively address these changes and we are well positioned to help lead the revolution. Speaker 200:05:38The new NHTSA federal safety standard from the U. S. Mandates automatic emergency braking or AEB including pedestrian AEB for all passenger cars and light trucks by September 2029. This safety measure is set to reduce collisions and accidents with pedestrians. At the same time, Euro NCAP 2,030 Roadmap aims for 0 road fatalities requiring proactive crash presentation in all scenarios. Speaker 200:06:10A key to success wholesaler will be in the sensors used to power the advanced safety standards and requirements. This creates a growing opportunity for the adoption of our technology which is the leading solution for tracking pedestrians and vehicles in challenging weather and lighting conditions even at high speed and over long distances. We expect that by the end of the decade over 15% of new cars will feature high end imaging radars like ours providing real safety and level 3 autonomy. Lastly, we are in the final stages of dual listing with an additional listing of the Tel Aviv Stock Exchange. At the same time, we are advancing further the convertible bond issuance on the Tel Aviv Stock Exchange to secure working capital and support the expected production ramp up in 2025. Speaker 200:07:06We are excited about the potential opportunities for Arbe and we believe that 2024 will prove to be a turning point for our company. Now I'd like to turn it over to our CFO, Karine, to go over the financials. Speaker 300:07:21Thank you, Kobi, and hello, everyone. I'd like to review our financial results for the Q1 of 20 24 in more detail. Total revenue in the Q1 was $100,000 a decrease from $400,000 in Q1 2023. Backlog as of March 31 was $1,000,000 and is expected to be recognized as revenue during 20 24. Negative gross margin for Q1 2024 was 194% compared to a positive gross margin of 11% in Q1 2023. Speaker 300:08:01The margin decrease was mainly related to a reduction in revenue and an increase in our workforce. Moving on to expenses. In Q1, 2024, we reported total operating expenses of $12,500,000 compared to $10,700,000 in Q1 2023. The increase in operating expenses was primarily driven by an increase in non cash share based compensation expenses totaling $1,900,000 To a lesser extent, labor cost increase was offset by bonus accrual release, favorable exchange rate and reduction in D and O insurance rate. Operating loss in the Q1 of 2024 was $12,800,000 compared to an operating loss of $10,600,000 in the Q1 of 2023. Speaker 300:09:02Adjusted EBITDA, a non GAAP measurement which excludes expenses for share based compensation and for non recurring items was a loss of $8,500,000 in Q1 of 2024 in accordance with our plan. This is compared to a loss of $8,400,000 in the Q1 of 2023. Net loss in the Q1 of 2024 increased to $12,800,000 compared to a net loss of $9,900,000 in the Q1 of 2023. Net loss in Q1, twenty twenty four included $45,000 of financial expense expenses partially offset by interest from deposits and warrants revaluation. This is compared to a $700,000 in financial income in the Q1 of 2023. Speaker 300:10:07Moving to our balance sheet. As of March 31, 2024, Arbe had $5,400,000 in cash and cash equivalents and $30,300,000 in short term bank deposits with no debt. With respect to our guidance for the year, we would like to reiterate what we previously shared. Our goal of achieving 4 design ins with automakers remains unchanged, as we observe continued strong interest in our market leading offering. We have strengthened our positioning in all our RFU engagements, even though the OEMs have shifted their decision timelines from late 2023 to 2024. Speaker 300:10:55The 2024 annual revenue are expected to be in line with those of 2023 followed by revenue growth in 2025. These revenue projections are based on the intention to be in full production in the second half of twenty twenty four as well as our decision to focus exclusively on getting our chipsets into production. We are committed to maintaining a strong and well managed balance sheet, focusing on cost effectiveness and the ability to fund our revenue growth. Adjusted EBITDA for 2024 is projected to be in the range of $30,000,000 loss to $36,000,000 loss. Now we will be happy to take your questions. Operator00:12:16Our first question comes from Joshua Buckhalter from TD Cowen. Please go ahead with your question. Speaker 400:12:23Hi, Dean. Good afternoon. Speaker 500:12:24Thanks for taking my question. I wanted to ask about the confidence in the achieving the 4 design wins this year. Any incremental data points or what you can give us and what gives you confidence that those are going to convert the second half of the year and maybe what led to the we've litigated in the past, but maybe an update on the timeline given it got pushed from 2023 into 2024. Any clues by geography or type of application that these wins are going to be for? Thank you. Speaker 200:12:58Yes. So basically as we said out of those opportunities were pushed from last quarter and are now coming to a decision point. What we see as a main change between last year and this year is that even in RFQs that were in the market the conditions were changed and the threshold for the radar got much higher and basically in majority of gives us a lot of comfort that majority of the market, all of the I think the top 10 OEMs at least understand that multi channel, high channel count radar is key for level 2 plus plus and level 3. And the fact that the regulation changed and added the need for automatic breaks in especially in all used cases gives our radar basically, I think, a backwind, a dramatic backwind, because any OEM will need to have this kind of solution. And the only way to solve it is with a high channel counter imaging radar and a camera. Speaker 200:14:35A camera alone cannot solve those scenarios. Even camera and LIDAR cannot solve it, but anyway the LIDAR is much too expensive for a feature that is basically not something that the OEMs can really charge the customer on it. To add to some light to your to the numbers, so we are today engaged with 11 CAL companies coming from Germany, from Sweden, from other countries in Europe, as well as from Japan and China. In all of those RFPs and RFQs we are already past a long process with of course our Tier 1 partners of evaluation of the radar, testing the radar in colder cases and showing the advantage of radar based on our chipset and high end channel count imaging radar based on our chipset as opposed to the solutions in the market that are based on TI or NXP chipsets that are called imaging radar. This is not really an imaging radar. Speaker 200:16:06And I think all of the OEMs understand the difference between real imaging radars like the ones that are based on our chipset or one of our competitors, our main competitor that is coming also from Israel and the existing legacy solutions that are based on the legacy chips that were not designed to meet the spec of tomorrow. They were designed for the spec of yesterday. And taking everything all of this into consideration we are sure that out of 11 opportunities that we are shortlisted We will win at least 4 in the coming months and we will be able to announce them to the market. This is the reason why we are raising the loan. The loan in Tel Aviv is based on a condition that we will win a contract. Speaker 200:17:11Our confidence in the fact that we are very close to winning the contract I think allows us to raise this money and also the confidence of the investor that we are close to that are willing to give us a loan with a conversion price that is more than 30% higher than our today share price. So I believe that we have we will have a very good year, like we said, a turning point for the company coming from development to business very soon. Speaker 500:17:58Thanks for the extensive Kobi. For my follow-up, I think in the press release you mentioned you're getting close to receiving full auto grade qualification. It feels like that process has been going on for a while. Can you maybe talk about what are the last few things you need to complete to get the auto grade sign off? And then is that a hurdle and something that needs to be completed before you sign one of these OEM wins? Speaker 500:18:23Or is that not the case? Thank you. Speaker 200:18:26I think our chipset the process of taking chipset to qualification on automotive is structured process. GlobalFoundries are leading it and managing it for us together with us and together with our engineers. We are more or less on the timeframe to finish it by the end of this quarter, early next quarter. And as we mentioned in last quarter, basically before you're starting a full qualification, you're doing mini qualification to make sure that there's no qualification, mini qualification and we are now prequalification, miniqualification and we are now in the middle of finishing the technical process, which includes thousands of hours of chips working in high temperatures and in low temperatures to make sure that they will be able to stand in all conditions that the automotive market wants. It doesn't look today that this is a showstopper for us in calls with our OEM partners, GlobalFoundries giving their objective assessment that the chips are going to be in production in very few months from now. Speaker 200:19:58So I think that all of the OEMs that are going to select our chipset with Magna or with HiReN or with other Tier 1 are really they are thrusting global foundries that global will bring those chips through production. And I believe this is not a major issue for us. Speaker 600:20:23Thank you. Operator00:20:26Our next question comes from Suji Desilva from ROTH Capital. Please go ahead with your question. Speaker 700:20:32Hi, Kobe. Hi, Kareem. Kobe, you talked about some of the progress with Hi Rain and Weifu in China. Can you just elaborate on the ramps that are time to revenue and what the how many programs that those involve? Speaker 200:20:47So we already stated that hiring and WIFU gave us preliminary order for 2025. Hiring is $30,000,000 WIFU is $10,000,000 and we are now engaged with a few programs to make sure that the customers will get radars based on our chipset in this volume in 2025. Speaker 600:21:14Okay. Speaker 700:21:15And those are for Automotive, Coby, Automotive? Speaker 200:21:20Yes. Some of them is trucks and robo taxis and we have a hiring 1 project in one of the poles of China for trucks. I would say that around 25% of it is non OEMs, non passenger vehicles, the rest is for passenger vehicles. Speaker 700:21:47Okay, great. Very helpful color, Tobey. Thanks. And then secondly on the you mentioned the NVIDIA Omniverse element. Is Arbeys radar the kind of exclusive radar element there? Speaker 700:21:58Or are there multiple radar elements involved? Are they looking for imaging radar? What's the color there on that partnership and inclusion? Speaker 200:22:09The only imaging radar, the only is the ARBES imaging radar of Protovil is also low end radar there for a radar belt, low end 4x4 radars, but the high end imaging radar is only ARPU. Great. Speaker 700:22:28All right. I think lastly, maybe the in China, can you talk about the significance of working with Horizon and Horizon and Weifu working together in terms of further penetrating the China market versus working with the Tier 1s like Weifu? Speaker 200:22:45So we are not allowed to elaborate a lot about our operations there. But what I can say is basically, Horizon is like NVIDIA, so it's the ECU. They are not a Tier 1. By the end of the day, there is a Tier 1 that's taking their chips and building the central compute and integrating our radar into this processor. And the same as we have integration with NVIDIA, we have this there is this kind of integration with Verizon and we believe that this is a main condition for part of the OEMs in China. Speaker 200:23:27As you probably aware, I think that the Chinese market is basically divided between NVIDIA and Horizon. They are controlling the ECU market in China. So with the fact that we are integrated with both of them, I think give us a lot of advantage in this essence. Speaker 700:23:48Okay. Again, very helpful color, Kobi. Thanks. Operator00:23:53Our next question comes from Jamie Perez from Lafferty. Please go ahead with your question. Speaker 400:23:59Hi. Thank you. Good day, everybody. Thanks for taking my question. I mean, over the last couple of quarters, we've seen a sentiment change for the EV early adopters and going more towards ICE and I think hybrid is also gaining share. Speaker 200:24:13I mean, could you give us Speaker 400:24:14a little bit color what do you do you have any exposure to hybrids and ICE vehicles? And my follow-up question for that is, a lot of EVs are focusing now on affordability, especially with the Chinese threatening to ship at low price Costco. So could you tell me what does that mean for your margins and the pricing power? Thanks. Speaker 200:24:41I think those are two great questions. So first of all, regarding the EV shift. So I think that this is part of the reason for the delays. So last year majority of the OEMs were focusing on moving almost totally to EV by 2,030. And according to that they decided that all of the new features like Level 3 and Level 2 plus plus would be launched solely on EV. Speaker 200:25:15Last quarter in the last quarter of 2023, the market strategically understood that the move to the shift to EV will take longer than expected due to price, due to customers' adoption, due to charging problems and so on. And this basically brought all of those programs of Level 3 into a state that they were reevaluate and the schedule was basically delayed. As we see it by the end of Q1, majority of the OEMs took a decision to launch those services on both EV and regular engines as well as of course for the hybrid. So from this perspective, there's no change right now. It caused a delay, but right now we are on the go. Speaker 200:26:18The second question that you raised, I think is dramatically interesting. The price pressure for EV is really pushing for sensors that are cheaper and imaging radar I would say is dramatically cheaper than LiDAR and we believe that this dramatically helps us at least on the NHTSA AEB standard. And also for Level 3, I think that our radar is affordable better than other sensors. Speaker 400:27:00So basically we have a we know so you have a price advantage versus radar. Now most of it like I said, most of the focus has been on passenger. I think on the electric vehicle, the commercial market has been doing a little bit better. I mean, could you maybe talk about the initiative in the commercial or transit market if you have any? All right. Speaker 400:27:23Thanks. Speaker 200:27:25We are not focusing it's not us but our Tier 1 most of our Tier 1s are not focusing on that. So at least on the Western world, on China we won a project with Didi's Trucks Company and Hywind also have some trucks project. But outside of China, Magna is not bidding on any trucks as of now. The volume in trucks is lower. Adaptation and the cost of integration is higher and the volume is not really make it economical for these kinds of solutions as of now. Speaker 400:28:18All right. Okay. I'll pass it back. Thanks for the questions. Operator00:28:24Our next question comes from Matthew Galinko from Maxim Group. Please go ahead with your question. Speaker 600:28:30Hi, thanks for taking my question. I was hoping you could maybe provide a little more detail around the investments you expect to make or need to make as you move into production in the back half this year? And I think your point is you plan to support through the node issue? Thanks. Speaker 200:28:54So maturity or basically all of our expenses service production were already done. This quarter Q1 we had last item that was related to increasing the capacity of the burning boats. So we will be able to supply much higher volumes next year. But all of the expenses that are related to production, which are majority of them is CapEx, already done and are behind that. And I think we are ready for revenues. Speaker 600:29:31Great. Thank you. Operator00:29:36Ladies and gentlemen, with that being our final question for today, we'll be ending today's conference call as well as today's presentation. We thank everyone for joining. You may now disconnect your lines.Read morePowered by