Release Date: February 20, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• AEye Inc (NASDAQ:LIDR) launched Apollo, a compact software-defined LiDAR sensor, which has received positive feedback and demonstrated high-resolution, long-range detection capabilities.
• The company extended its financial runway to mid-2026 by raising additional capital, ensuring resources for high-volume production of Apollo.
• AEye Inc (NASDAQ:LIDR) has formed strategic partnerships, including with Nvidia, enhancing its market opportunities and OEM engagements.
• Apollo's unique behind-the-windshield implementation offers a cost-effective alternative to traditional roof-mounted LiDAR systems.
• The company has a low cash burn rate and disciplined cost management, outperforming cash burn guidance for the quarter and the full year.

Negative Points

• AEye Inc (NASDAQ:LIDR) reported a GAAP net loss of $8.5 million in the fourth quarter, indicating ongoing financial challenges.
• The company's operating expenses increased due to higher one-time payroll costs and rent expenses.
• There is uncertainty in the automotive market, with delays in OEM quoting activities potentially impacting timelines.
• The company faces competition in the LiDAR space, with pricing pressures from OEMs expecting lower costs.
• AEye Inc (NASDAQ:LIDR) has not provided long-term guidance on the timing of commercialization for Apollo in personal auto models, creating uncertainty for investors.

Q & A Highlights

• Warning! GuruFocus has detected 6 Warning Signs with LIDR.

Q: Could you speak a little bit more about the non-automotive opportunities that AI is exploring? A: Matt Fish, CEO: Apollo's high-resolution and long-range detection capabilities make it ideal for non-automotive applications such as security and perimeter safety. We are actively testing these applications in China, the US, and Europe, and the interest has been significant since our CES launch.

Q: Does greater liquidity give you more confidence in meeting OEM financial due diligence requirements? A: Connor Tierney, CFO: Yes, our liquidity is crucial in OEM negotiations, providing assurance that we have the resources to bring Apollo to high-volume production. Our $30 million in cash and cash equivalents, along with our capital-light model, enhances our ability to stretch every dollar further.

Q: Can you define what "high volume" means in terms of production? A: Matt Fish, CEO: High volume in automotive terms starts in the tens of thousands and can exceed 100,000 units annually. We are prepared for this scale due to our partnership with a tier-one supplier experienced in high-volume production.

Q: What is your perception of the level of vehicle autonomy OEMs are targeting? A: Matt Fish, CEO: Most OEMs are targeting Level 3 autonomy, which includes LiDAR. Our partnership with Nvidia and their Hyperion platform aligns with this focus, as it supports high-speed driving requirements.

Q: How do you see pricing for LiDAR solutions evolving in OEM negotiations? A: Matt Fish, CEO: Pricing is expected to be well below $1,000 per unit, with potential to reach around $500 depending on volume. Our partnership with a large tier-one supplier gives us a competitive edge in pricing due to their supply chain leverage.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.