Aeva Technologies, Inc.

Good day. My name is Hillary, and I will be your conference facilitator. I would like to welcome everyone to AVA Technologies' fourth quarter and full year 2021 earnings conference call. During the opening remarks, all participants will be in a listen-only mode. Following the opening remarks, we will conduct a question and answer session. As a reminder, today's conference call is being recorded and simultaneously webcast. I would now like to turn the call over to Andrew Fung, Director of Investor Relations. Andrew, please go ahead.

Thank you and welcome everyone to Ava's fourth quarter and full year 2021 earnings conference call. Joining on the call today are Soroush Salahian, Ava's co-founder and CEO, and Saurabh Sinha, Ava's CFO. Ahead of this call, we issued our fourth quarter and full year press release and presentation, which we will refer to today and can be found on our investor relations website at investors.ava.com. Please note that on this call, we will be making forward-looking statements based on current expectations and assumptions, which are subject to risks and uncertainties. These statements reflect our views only as of today and should not be relied upon as representative of our views as of any subsequent state. These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from expectations. For further discussion of the material risks and other important factors that could affect our financial results, please refer to our filings with the SEC, including our Form 10-Q for the quarter ended September 30th, 2021. In addition, during today's call, we will discuss non-GAAP financial measures, which we believe are useful as supplemental measures of AVIS performance. These non-GAAP measures should be considered in addition to and not as a substitute for or in isolation from GAAP results. The webcast replay of this call will be available on our company website under the Investor Relations link. With that, let me turn the call over to Suresh.

Thank you, Andrew, and good afternoon, everyone. 2021 was a monumental year for AVA in which we became a public company and raised more than $500 million in net proceeds. Over the course of the year, we achieved important milestones that moved us meaningfully closer to bringing our unique 4D LiDAR technology to market. I would like to highlight a few of our 2021 accomplishments, which are summarized on slide 5. First, we significantly expanded our leadership position in 4D LiDAR technology, with the largest portfolio of FMCW patents among peers in the industry. New advancements that raised the bar in perception and, equally important, matured our technology to our commercialization. In Q4, we completed development of Ares II, the world's first 40-liter offering, camera-level resolution with 500 meters of range, and a crucial dimension of instant velocity, all in an automotive-reliable and compact form factor that leverages proven semiconductor processes to enable mass scalability. Second, as more customers experience the advantages of AVA's 40 LIDAR, this has accelerated our commercial momentum. We deepen our relationship with key partners, such as supporting Too Simple with AVA 40 LIDAR on their trucks that achieved the world's first fully autonomous run on open public roads. Establishing a foundational agreement with our undisclosed customer for development through to production. and securing a production win with PUS, which is on track to start initial deployment in late 2022. We also announced our first expansion beyond automotive with a collaboration with Nikon to bring AVA 40 LIDAR to the $10 billion industrial automation and metrology markets. Third, we solidified our supply chain as we continue to progress towards production. This included selecting FabriNet to manufacture our LiDAR chip module, which is the heart of our LiDAR with all core sensing components integrated onto a silicon photonics platform. The new production line is automotive qualified with plans to scale to support mass production volumes. And fourth, we more than doubled our team last year and have assembled a group of leaders experienced in developing and scaling new technology. Combined with $445 million in liquidity at the end of 2021, we are well positioned with the talent and resources to continue executing on our plan to bring AVA $40 to scale. Turning to slide 7, on our inaugural earnings call last year, we shared our key objectives for 2021, and I'm pleased to share that we accomplished all of them on or ahead of schedule. Our ability to execute on our plan is a testament to the strong team we have assembled at AVA and our commitment to our mission, as well as the growing demand for our unique FMCW technology. Moving to slide nine, I would like to provide more color on our key business updates. We are proud to have supported our partner, TuSimple, on their significant milestone of becoming first in the industry to successfully operate a fully autonomous semi-truck on open public roads. ABA-40 LiDAR is the only long-range LiDAR on TwoSimple's on-road fleet. Using our unique instantaneous velocity data, TwoSimple's perception stack can classify objects and growth hazards as long ranges with greater confidence, which provides additional response time for the safe operation of autonomous trucks. We continue to progress well with TwoSimple's development milestones and look forward to supporting additional driver operations and the expansion of TuSimple's on-road fleet. Turning to slide 10. Earlier this month, we unveiled ARIES II, which is the world's first commercially available 40 LiDAR that is built for automotive grade reliability and leverages silicon photonic technology to enable volume scalability. ARIES II represents a significant leap forward for LiDAR that we believe will open the door to accelerating autonomous programs where high performance sensing is crucial to achieving the next level of automation. ARIS 2 delivers new real-time perception capabilities enabled by AVA's unique FMCW technology, and now possible with legacy time-of-flight LiDAR sensors. The first is ultra-resolution, which delivers camera-level resolution for the static world with up to 1,000 lines per frame, or up to approximately 20 times the resolution of legacy time-of-flight solutions. and 40 localization, which leverages AVA's unique velocity data to estimate the motion of the vehicle itself, effectively serving as an independent navigation solution and enabling redundant, functionally safe positioning for our customers. This enables an AVA-equipped vehicle to always know where it is, even in environments where GPS can be challenged, such as tunnels or parking garages, an important capability needed for higher levels of automation. ARIES II is designed for automotive-grade reliability across a variety of roads and environmental conditions. And at a quarter of the size of our previous generation, it enables multiple integration options across diverse applications, such as passenger vehicles, trucks, industrial robots, and more. Within ARIES II, we utilize our breakthrough LiDAR-on-chip architecture, which integrates all core sensing components, lasers, detectors, and optics, onto a silicon photonics chip module. To our knowledge, Ava remains the only company to have successfully achieved this level of integration and performance. By doing so, we are able to remove all fiber and significantly lower total system component counts. This reduces overall complexity, increases dead reliability, and allows for higher levels of automation in manufacturing scale. Importantly, Ares II marks the next stage in Ava's path to commercialization. In late Q2, we expect to begin deliveries to our customers for them to develop and validate for their programs. This includes deployment for Plus trucks beginning in late 2022. Over the course of this year, we also expect to build on our commercial momentum as additional potential customers begin using Ares II. As we have noted over the past year, interest for ABA's FMCW approach has accelerated, and we are very encouraged by the strong reception so far with Ares II. We look forward to converting more programs towards production with a continuous focus to align with companies that have a shared determination and ability to deploy by RMA scale. Searching gears to know our motive, let's move to the next slide, which highlights an exciting development for industrial applications. Last year, we announced a strategic collaboration with Micron to bring next-generation high-precision solutions to the industrial automation and metrology markets using AVOS 4D LiDAR that measures objects at the Micron level, which is about 1,000 times more precise than what can be achieved with typical legacy 3D LiDAR. We do this utilizing the same core chip architecture that we have developed for automotive, which we believe will result in a solution that is meaningfully smaller and lower costs relative to what is currently available. For AVA, this also enables us to drive greater economies of scale across our different applications. Since announcing the collaboration, we have made good progress together with ICON, including defining our first product in industrial metrology, as well as achieving micron level precision using our LiDAR on chip module. This is enabling us to pull forward the timing of our first product launch by one year. now targeting 2024. Beyond industrial metrology, the combination of high precision and small form factor of AVA's 40 LiDAR opens up a number of other unique industrial applications where performance, size, and cost have been limiting factors, such as machine tooling, infrastructure, and other volume manufacturing. Collectively, these applications represent a $10 billion and growing market, and we look forward to pursuing these opportunities. Moving to the next slide, I would like to share with everyone our plans and objectives for 2022. We have been highly encouraged by the growing demand to deploy Ava's 40-liter technology, and with the launch of Ares II, we plan to build on the strong progress achieved last year. We believe this will enable us to accelerate our timelines of commercialization and to meet the increasing demand for our technology, as OEMs and autonomous players increasingly see FMCW as a key enabler to the next generation of autonomy. In light of this customer and market pool, we have made a strategic decision to proactively accelerate our shift from NREs towards scaled deployment of the ARIES platform for commercial programs, particularly ones we believe have the highest potential for success. As we have discussed before, our mission at AVA is to bring the next wave of perceptions for everything. and our approach to partnerships remains focused on aligning with companies that have a shared determination and ability to deploy a lot around mass scale. And by pulling forward our transition from NREs towards scale deployment, we can begin scaling volumes earlier. Importantly, we continue to progress towards production with all of our key partners and continue to deliver on program milestones. This is also the case in non-automotive where we have defined our first product in industrial metrology with Nikon, and we are pulling forward the industrial launch by one year, targeting 2024. We feel confident in our ability to continue to progress towards production, and we plan to expand our commercial momentum in 2022. If we continue to execute this year, we believe the momentum will enable us to achieve our target of 2024 for volume production for automotive, as we have discussed before, as well as accelerate the launch of our industrial application. In terms of specific objectives for this year, our first is to deploy Ares II to customers for qualification. We have already begun bring-up of initial units and expect to start deliveries in the second quarter. Second, we aim to convert two additional programs towards production. We are encouraged by the growing interest for AVA's FMCW approach and we expect to build on our commercial momentum as additional customers begin testing and development with ARIES 2. Third, we will accelerate the release of our first non-automotive application. Now that we have defined our first product with Nikon and are pulling forward our timeline to 2024, we plan to leverage the momentum from our LiDAR on chip module as we continue to see strong inbound interest and put our focus and resources towards additional opportunities that align with our mission to bring AVA-40 LiDAR to mass scale. And fourth, we will be working closely with our supply chain to prepare for commercial deployment. This includes ASPIs and applicable ISO certifications, as well as preparing our supply base for scale deployments. And with that, I will turn the call over to Saurabh to discuss the financials.