Greetings, and welcome to the Mobileye 2Q ’24 earnings call, where we discuss the financial performance of Mobileye Global for the period ending June 30, 2024. We are pleased to have you with us today. In this call, we will be sharing forward-looking statements based on our current outlook, which includes risks and uncertainties. Please refer to the accompanying press release for more information on factors that may impact actual results. We will also be discussing both GAAP and non-GAAP figures, which are reconciled in our posted earnings release. Joining us today are Professor Amnon Shashua, Mobileye’s CEO and president, Moran Shemesh, Mobileye’s CFO, and Nimrod Nehushtan, Mobileye’s executive VP of business development and strategy, who will be available for the Q&A session. Let’s delve into the results for Q2, which closely aligned with our expectations set in January. EyeQ volumes doubled, while SuperVision volumes stood as projected at 31,000 units for Q2. Revenue for the quarter was $439 million, an 84% growth over Q1. Adjusted operating margin also improved significantly to 18% from -27% in Q1. Looking ahead to the second half of the year, we anticipate near-term volume challenges, especially in the Chinese market. Factors such as global production forecasts and declining orders impact our outlook. We see these dynamics as China-specific, amidst market reshuffle and macro developments. Despite short-term volume headwinds, we are positive about our long-term position in China with diverse product portfolios and expansion aspirations. Our focus remains on leading next-gen ADAS and autonomy solutions appealing to global car makers. The EyeQ6 platform marks a significant leap forward, supporting all vehicle categories and robotaxis. As we anticipate the future, EyeQ6 is positioned to cater to emerging market ADAS, developed market ADAS, mid-trim surround ADAS, and premium full-surround ADAS/AV. These categories drive our growth outlook, with many RFQs showing strong demand. SuperVision and Chauffeur programs are also progressing towards major design wins. Notably, Brain6, our AI backbone, powers EyeQ6 for transformative autonomous driving solutions. This modular, cost-efficient, and controllable platform addresses autonomy complexities efficiently. With the evolving tech landscape, we are aligning product roadmap to meet future ADAS and AV demands. Our upcoming Capital Markets Day in December will provide more insight into these advancements. As for financials, Q2 results saw a recovery in gross margin driven by optimized EyeQ chip revenue mix and normalized regional demand. Adjusted operating margin improved to 18%, with opex trajectory indicating significant scaling of advanced products from mid-2026. Our updated full-year guidance reflects adjusted EyeQ and SuperVision volumes, operating expenses, and tax rate adjustments. We remain committed to technological excellence, market leadership, and strategic partnerships, laying a strong foundation for future growth. Thank you for joining us today and we look forward to your questions. #Mobileye #Global #EarningsCall #AI #Autonomy #TechRevolution
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