Mobileye Discloses Third Quarter 2022 Results and Business Update – Business Wire

JERUSALEM–(BUSINESS WIRE)–Mobileye Global Inc. (Nasdaq: MBLY) (“Mobileye”) today released its financial results for the three months ending October 1, 2022 (Q3 2022) in a 10-Q filing and provided a general business update.

“Our recently-completed IPO is a major milestone for Mobileye and enhances our ability to create value for all stakeholders,” said Mobileye President and CEO Prof. Amnon Shashua. “Our time as an Intel subsidiary, operating largely in stealth, was very successful. We built upon our leadership position in ADAS while at the same time productized an advanced set of technology building blocks that support a product portfolio spanning the entire ADAS to AV spectrum.”
“Our excellent third quarter performance is an early indication of the success of our strategy. Our established base ADAS products continue to generate strong growth and profitability while our advanced portfolio is beginning to contribute significantly, particularly by boosting average system price. Initial market success of products such as SuperVisionTM is also driving increased business traction. Customers see the potential to drive profit and product differentiation in the near-term, while taking a meaningful step towards future ‘eyes off’ consumer AV systems which can be added to SuperVisionTM in a modular way. We will discuss these trends in more detail at my annual address at CES (11:00am PT on January 5th).”
Third Quarter 2022 Business Highlights
Third Quarter 2022 Financial Summary and Key Explanations
$450
 
$326
38%
$217
 
$153
42%
48%
 
47%
+130 bps
($25)
 
($20)
-25%
-6%
 
-6%
+60 bps
($45)
 
($26)
-73%
 
 
 
 
 
 
 
 
 Q3 2022 
 
 Q3 2021 
 % Y/Y 
$450
 
$326
38%
$332
 
$253
31%
74%
 
78%
(380) bps
$143
 
$127
13%
32%
 
39%
(720) bps
$114
 
$107
7%
1In connection with our design wins, we typically receive preliminary estimates from OEMs of their anticipated production volumes for the models relating to those design wins, and we have included information in this release relating to the aggregate vehicles represented by certain of those estimates. Those estimates may be revised significantly by the OEMs, potentially multiple times, and may not be representative of future production volumes associated with those design wins, which could be significantly higher or lower than estimated.
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 2022 Fiscal Year
The following information reflects Mobileye’s expectations for Revenue and Adjusted Operating Income results for the year ending Dec 31, 2022. We believe Adjusted Operating Income (a non-GAAP metric) is an appropriate metric as it excludes significant non-cash expenses including: 1) Amortization charges relate 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; 2) Stock-based compensation expense; and, 3) Non-recurring IPO-related expenses.
We estimate weighted average share count in the quarter ending December 31, 2022 to be 788 million basic shares and 790 million shares on a fully-diluted basis.
Low
High
Low
High
 $
1,831
 $
1,849
 $
527
 $
545
 
637
 
653
 
169
 
184
Other than with respect to GAAP Revenue, we only provide guidance on a non-GAAP basis. We do not provide a reconciliation of forward-looking Adjusted Operating Income to Operating Income due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations. These amounts may be material and, therefore, could result in the projected GAAP measure being materially different or less than the projected non-GAAP measure. 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.
Non-GAAP Financial Measures
This press release contains Adjusted Gross Profit and Margin, Adjusted Operating Income and Margin and Adjusted Net Income, 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 nine months ended October 1, 2022. Operating margin is calculated as operating 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, and share-based compensation expense, and expenses related to our initial public offering that was completed on October 28, 2022, during the nine months ended October 1, 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.
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 2022 full-year guidance 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; 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 expectations.
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.
Third Quarter 2022 Financial Results
Mobileye Group
Condensed Combined Statements of Operations (Unaudited)
 
2022
 
 
2021
 
 
2022
 
 
2021
 
 $
450
 
 $
326
 
 $
1,304
 
 $
1,030
 
 
233
 
 
173
 
 
682
 
 
529
 
 
217
 
 
153
 
 
622
 
 
501
 
 
206
 
 
132
 
 
565
 
 
390
 
 
27
 
 
33
 
 
91
 
 
98
 
 
9
 
 
8
 
 
27
 
 
26
 
 
242
 
 
173
 
 
683
 
 
514
 
 
(25
)
 
(20
)
 
(61
)
 
(13
)
 
5
 
 

 
 
9
 
 
2
 
 
(11
)
 

 
 
(20
)
 

 
 
1
 
 

 
 
6
 
 

 
 
(30
)
 
(20
)
 
(66
)
 
(11
)
 
(15
)
 
(6
)
 
(46
)
 
(11
)
 $
(45
)
 $
(26
)
 $
(112
)
 $
(22
)
 $
(0.06
)
 $
(0.03
)
 $
(0.15
)
 $
(0.03
)
 
750
 
 
750
 
 
750
 
 
750
 
Mobileye Group
Condensed Combined Balance Sheets (Unaudited)
As of
2022
2021
871
616
222
155
105
97
901
1,326
63
76
2,162
2,270
354
304
2,658
3,071
10,895
10,895
95
115
14,002
14,385
16,164
16,655
160
160
75
102
966
163
3,520

59
49
4,780
474
54
94
162
181
8
17
224
292
5,004
766
11,178
15,884
(18)
5
11,160
15,889
16,164
16,655
Mobileye Group
Condensed Combined Statements of Cash Flows (Unaudited)
2022
2021
(112)
(22)
17
12
112
73
413
368
35
(27)
(67)
(57)
28
(4)
(8)
30
22
31
(67)
20
10
15
15
(1)
(3)

395
438
(79)
(98)
734

(336)
(390)
319
(488)
99
69
(336)

(200)

(14)


(2)
(451)
67
(6)

257
17
625
93
882
110
Mobileye Group
Reconciliation of GAAP Gross Profit and Gross Margin to Non-GAAP Adjusted Gross Profit and Adjusted Gross Margin (Unaudited)3
2022
2021
2022
2021
% of
% of
% of
% of
Amount
Revenue
Amount
Revenue
Amount
Revenue
Amount
Revenue
$
217
48
%
$
153
47
%
$
622
48
%
$
501
49
%
 
115
26
%
 
100
31
%
 
355
27
%
 
300
29
%
 


 
 


 
 


 
 


 
 $
332
74
%
 $
253
78
%
 $
977
75
%
 $
801
78
%
3Adjusted gross margin is calculated as adjusted gross profit as a percentage of revenue
Mobileye Group Reconciliation of GAAP Operating Income and Operating Margin to Non-GAAP Adjusted Operating Income and Operating Margin (Unaudited)4
 2022
 2021
 2022
 2021
% of
% of
% of
% of
Amount
Revenue
Amount
Revenue
Amount
Revenue
Amount
Revenue
 $
(25
)
-6
%
 $
(20
)
-6
%
 $
(61
)
-5
%
 $
(13
)
-1
%
 
131
 
29
%
 
123
 
38
%
 
413
 
32
%
 
368
 
36
%
 
1
 
0
%
 

 
0
%
 
4
 
0
%
 

 
0
%
 
36
 
8
%
 
24
 
7
%
 
112
 
9
%
 
73
 
7
%
 $
143
 
32
%
 $
127
 
39
%
 $
468
 
36
%
 $
428
 
42
%
4Adjusted operating margin is calculated as adjusted operating income as a percentage of revenue
Mobileye Group
Reconciliation of GAAP Net Income to Non-GAAP Adjusted Net Income (Unaudited)
Three Months Ended
Nine Months Ended
October 1,
September 25,
October 1,
September 25,
 
2022
 
 
2021
 
 
2022
 
 
2021
 
 $
(45
)
 $
(26
)
 $
(112
)
 $
(22
)
 
131
 
 
123
 
 
413
 
 
368
 
 
1
 
 

 
 
4
 
 

 
 
36
 
 
24
 
 
112
 
 
73
 
 
(9
)
 
(14
)
 
(27
)
 
(42
)
 $
114
 
 $
107
 
 $
390
 
 $
377
 
Supplemental Information (Unaudited) – Average System Price
Q3 2021
Q4 2021
Q1 2022
Q2 2022
Q3 2022
$
         308
$
         337
$
         378
$
         441
$
         432
 
            6.7
 
            7.0
 
            7.4
 
            8.5
 
            8.2
$
        45.7
$
        48.3
$
        51.0
$
        52.0
$
        53.0
 
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

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