JERUSALEM–(BUSINESS WIRE)–Mobileye Global Inc. (Nasdaq: MBLY) (“Mobileye”) today released its financial results for the three months and for the year ended December 31, 2022.
“Our fourth quarter performance is an excellent example of how ramping volumes of our advanced solutions can impact financial performance, as higher average system price amplified strong volume growth, leading to 59% overall revenue growth,” said Mobileye President and CEO Prof. Amnon Shashua. “I’m also very pleased with our business development traction as our OEM customers are increasingly recognizing the scalability of our product portfolio for the following reasons: 1) Adopting SuperVisionTM, an eyes-on, hands-off ADAS system operating across a broad operational design domain (ODD) makes scaling to eyes-off autonomous systems an incremental step rather than a series of moonshots; 2) Mobileye’s EyeQ KitTM software development kit, developed over the last five years, enables OEMs to differentiate their systems on top of our core technology assets; and, 3) Regulatory and consumer proof-points will be increasingly important and Mobileye has a clear, multi-pronged approach for data-driven validation. As planned, we will continue to invest heavily (while maintaining strong profitability) during 2023 to productize and launch our advanced solutions as my confidence level on delivering high returns to all stakeholders has never been higher.”
Fourth Quarter and Full-Year 2022 Business Highlights
Fourth Quarter 2022 Financial Summary and Key Explanations (Unaudited)
GAAP
U.S. dollars in millions
Q4 2022
Q4 2021
% Y/Y
Revenue
$
565
$
356
59%
Gross Profit
$
300
$
154
95%
Gross Margin
53
%
43
%
+984bps
Operating Income (Loss)
$
24
$
(44
)
*NM
Operating Margin
4
%
(12
) %
+1,661bps
Net Income (Loss)
$
30
$
(53
)
*NM
EPS – Basic
$
0.04
$
(0.07
)
*NM
EPS – Diluted
$
0.04
$
(0.07
)
*NM
*Not Meaningful
Non-GAAP
U.S. dollars in millions
Q4 2022
Q4 2021
% Y/Y
Revenue
$
565
$
356
59%
Adjusted Gross Profit
$
416
$
274
52%
Adjusted Gross Margin
74
%
77
%
(339)bps
Adjusted Operating Income
$
217
$
121
79%
Adjusted Operating Margin
38
%
34
%
+440bps
Adjusted Net Income
$
215
$
97
121%
Adjusted EPS – Basic
$
0.27
$
0.13
110%
Adjusted EPS – Diluted
$
0.27
$
0.13
110%
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.
Financial Guidance for the 2023 Fiscal Year
The following 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) Stock-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.
Full Year 2023
U.S. dollars in millions
Low
High
Revenue
$
2,192
$
2,282
Operating loss
$
(160
)
$
(110
)
Amortization of acquired intangible assets
$
474
$
474
Share-based compensation expense
$
263
$
263
Adjusted Operating Income
$
577
$
627
Earnings Conference Call Webcast Information
Mobileye will host a conference call today, January 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, 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, during the year ended December 31, 2022. Operating margin is calculated as operating income (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 our initial public offering that was completed on October 28, 2022, during the year ended December 31, 2022, 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 (Earnings Per Share) 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 125 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 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, including our expectation that supply chain issues will ease in the second half of 2023; 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 addressable markets, 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; 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 expectation
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 Registration Statement (No. 333-267685) on Form S-1, particularly in the section entitled the “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.
Full Year 2022 Financial Results
Mobileye Global Inc.
Consolidated Statements of Operations (unaudited)
Three Months Ended
Year Ended
U.S. dollars in millions, except share and per share amounts
December 31,
2022
December 25,
2021
December 31,
2022
December 25,
2021
Revenue
$
565
$
356
$
1,869
$
1,386
Cost of revenue
265
202
947
731
Gross profit
300
154
922
655
Research and development, net
224
154
789
544
Sales and marketing
29
36
120
134
General and administrative
23
8
50
34
Total operating expenses
276
198
959
712
Operating income (loss)
24
(44
)
(37
)
(57
)
Interest income with related party
9
1
18
3
Interest expense with related party
(4
)
—
(24
)
—
Other income (expense), net
5
(3
)
11
(3
)
Income (loss) before income taxes
34
(46
)
(32
)
(57
)
(Provision) for income taxes
(4
)
(7
)
(50
)
(18
)
Net income (loss)
$
30
$
(53
)
$
(82
)
$
(75
)
Earnings (loss) per share:
Basic
$
0.04
$
(0.07
)
$
(0.11
)
$
(0.10
)
Diluted
$
0.04
$
(0.07
)
$
(0.11
)
$
(0.10
)
Weighted-average number of shares used in computation of earnings (loss) per share (in millions):
Basic
788
750
759
750
Diluted
791
750
759
750
Mobileye Global Inc.
Consolidated Balance sheets (unaudited)
U.S. dollars in millions
December 31, 2022
December 25, 2021
Assets
Current assets
Cash and cash equivalents
$
1,024
$
616
Trade account receivables, net
269
155
Inventories
113
97
Related party loan
—
1,326
Other current assets
110
76
Total current assets
1,516
2,270
Non-current assets
Property and equipment, net
384
304
Intangible assets, net
2,527
3,071
Goodwill
10,895
10,895
Other long-term assets
119
115
Total non-current assets
13,925
14,385
TOTAL ASSETS
$
15,441
$
16,655
Liabilities and Equity
Current liabilities
Accounts payable and accrued expenses
$
189
$
160
Employee related accrued expenses
88
102
Related party payable
73
163
Other current liabilities
34
49
Total current liabilities
384
474
Non-current liabilities
Long-term employee benefits
56
94
Deferred tax liabilities
162
181
Other long-term liabilities
45
17
Total non-current liabilities
263
292
TOTAL LIABILITIES
$
647
$
766
TOTAL EQUITY
14,794
15,889
TOTAL LIABILITIES AND EQUITY
$
15,441
$
16,655
Mobileye Global Inc.
Consolidated Cash Flows (unaudited)
Year Ended
U.S. dollars in millions
December 31,
2022
December 25,
2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)
$
(82
)
$
(75
)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation of property and equipment
23
17
Share-based compensation
174
97
Amortization of intangible assets
544
509
Exchange rate differences on cash and cash equivalents
6
—
Deferred income taxes
(9
)
(29
)
Interest on Dividend Note, net
18
—
Interest with related party, net
12
20
Other
(2
)
—
Changes in operating assets and liabilities:
Decrease (increase) in trade accounts receivables
(114
)
(62
)
Decrease (increase) in other current assets
(10
)
(17
)
Decrease (increase) in inventories
(16
)
31
Increase (decrease) in account payables and accrued expenses
58
59
Increase (decrease) in employee-related accrued expenses and long term benefits
(52
)
36
Increase (decrease) in other current-liabilities
(16
)
20
Decrease (increase) in other long term assets
17
(7
)
Increase (decrease) in long-term liabilities
(5
)
—
Net cash provided by operating activities
546
599
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment
(111
)
(143
)
Repayment of loan due from related party
1,635
460
Issuance of loan to related party
(336
)
(474
)
Other
(1
)
—
Net cash provided by (used in) investing activities
1,187
(157
)
CASH FLOWS FROM FINANCING ACTIVITIES
Business combination deferred consideration payment
—
(90
)
Net transfers from Parent
84
181
Dividend paid
(337
)
—
Share-based compensation recharge
(280
)
—
Proceeds from initial public offering, net of offering costs
1,034
—
Equity transaction in connection with the legal purchase of Moovit entities
(900
)
—
Repayment of Dividend Note with related party
(918
)
—
Net cash provided by (used in) financing activities
(1,317
)
91
Effect of foreign exchange rate changes on cash and cash equivalents
(6
)
(1
)
Increase in cash, cash equivalents and restricted cash
410
532
Balance of cash, cash equivalents and restricted cash, at beginning of year
625
93
Balance of cash, cash equivalents and restricted cash, at end of year
$
1,035
$
625
Mobileye Global Inc.
Reconciliation of GAAP Gross Profit and Margin to Non-GAAP Adjusted Gross Profit and Margin3 (unaudited)
Three Months Ended
Year Ended
U.S. dollars in millions
December 31, 2022
December 25, 2021
December 31, 2022
December 25, 2021
Amount
% of
Revenue
Amount
% of
Revenue
Amount
% of
Revenue
Amount
% of
Revenue
Gross Profit
$
300
53
%
$
154
43
%
$
922
49
%
$
655
47
%
Add: Amortization of acquired intangible assets
114
20
%
119
33
%
469
25
%
419
30
%
Add: Share-based compensation expense
2
—
%
1
—
%
2
—
%
1
—
%
Adjusted Gross Profit
$
416
74
%
$
274
77
%
$
1,393
75
%
$
1,075
78
%
3Adjusted gross margin is calculated as adjusted gross profit as a percentage of revenue
Mobileye Global Inc.
Reconciliation of GAAP Operating Income and Margin to Non-GAAP Adjusted Operating Income and Margin4 (unaudited)
Three Months Ended
Year Ended
U.S. dollars in millions
December 31, 2022
December 25, 2021
December 31, 2022
December 25, 2021
Amount
% of
Revenue
Amount
% of
Revenue
Amount
% of
Revenue
Amount
% of
Revenue
Operating Income (Loss)
$
24
4
%
$
(44
)
(12
) %
$
(37
)
(2
) %
$
(57
)
(4
) %
Add: Amortization of acquired intangible assets
131
23
%
141
40
%
544
29
%
509
37
%
Add: Expenses related to the IPO
—
—
%
—
—
%
4
—
%
—
—
%
Add: Share-based compensation expense
62
11
%
24
7
%
174
9
%
97
7
%
Adjusted Operating Income
$
217
38
%
$
121
34
%
$
685
37
%
$
549
40
%
4Adjusted operating margin is calculated as adjusted operating income as a percentage of revenue
Mobileye Global Inc.
Reconciliation of GAAP Net Income to Non-GAAP Adjusted Net Income (unaudited)
Three Months Ended
Year Ended
U.S. dollars in millions
December 31, 2022
December 25, 2021
December 31, 2022
December 25, 2021
Amount
% of
Revenue
Amount
% of
Revenue
Amount
% of
Revenue
Amount
% of
Revenue
Net Income (Loss)
$
30
5
%
$
(53
)
(15
) %
$
(82
)
(4
) %
$
(75
)
(5
) %
Add: Amortization of acquired intangible assets
131
23
%
141
40
%
544
29
%
509
37
%
Add: Expenses related to the IPO
—
—
%
—
—
%
4
—
%
—
—
%
Add: Share-based compensation expense
62
11
%
24
7
%
174
9
%
97
7
%
Less: Income tax effects
(8
)
(1
) %
(15
)
(4
) %
(35
)
(2
) %
(57
)
(4
) %
Adjusted Net Income
$
215
38
%
$
97
27
%
$
605
32
%
$
474
34
%
Supplemental Information – Average System Price
Q4 2021
Q1 2022
Q2 2022
Q3 2022
Q4 2022
EyeQ and SuperVision revenue (U.S. dollars in millions)
$
337
$
378
$
441
$
432
$
543
Number of systems shipped (in millions)
7.0
7.4
8.5
8.2
9.7
Average system price (U.S. dollars)
$
48.3
$
51.0
$
52.0
$
53.0
$
56.2
Dan Galves
Investor Relations
investors@mobileye.com
Justin Hyde
Media Relations
justin.hyde@mobileye.com
Dan Galves
Investor Relations
investors@mobileye.com
Justin Hyde
Media Relations
justin.hyde@mobileye.com
source
