Aeva Technologies, Inc.

Good day, my name is Chloe and I will be your conference facilitator. I would like to welcome everyone to the AVA Technologies third quarter 2024 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, Senior Director of Investor Relations and Corporate Development. Andrew, please go ahead.

Thank you, and welcome everyone to AVA's third quarter 2024 earnings conference call. Joining on the call today are Sarush Salahian, Ava's co-founder and CEO, and Saurabh Sinha, Ava's CFO. Ahead of this call, we issued our third quarter 2024 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 date. 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 most recent Form 10-Q and Form 10-K. 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. And with that, let me turn the call over to Sush.

Thank you, Andrew, and good afternoon, everyone. AVA and Q3 continue to gain momentum across multiple fronts as more customer programs and industries look to adopt AVA's unique 40 LiDAR technology to enable next-generation solutions. From new production awards to key milestones achieved towards production with existing partners and progress on securing additional wins, AVA achieved major accomplishments this quarter, and I'm excited to highlight a few of them. First, we secured a major industrial production win for security applications with the indoor lab in a multi-year supply agreement with the opportunity to deploy AVA-4D LiDAR at multiple large locations across the U.S., starting with JFK and SFO airports, followed by plans to grow additional deployments on other applications. This is an exciting expansion for AVA that offers meaningful revenue potential and builds on our first win in security earlier this year. In automotive, our production partners TORQ and DymaTruck achieved an important milestone towards safe and scalable commercialization with a successful validation of fully driverless operations at highway speeds. Of course, TORQ's autonomous trucks are equipped with AVA-40 LiDAR as the exclusive long and ultra-long range LiDAR supplier. It is incredibly rewarding to be a part of such tangible progress towards bringing Diamond Truck's autonomous truck program to production. AVA was also selected for a major European passenger OEM's automated vehicle validation program because of our FMCW advantages like direct velocity measurement which will be used to help validate the OEM's next-generation vehicle automation systems. And lastly, AVA remains on track with multiple RFQs for passenger vehicle production programs. In particular, we continue to advance further towards the finalization of the RFQ for a global top 10 passenger OEMs production program. Let's now discuss in more detail our recent business developments. We are excited to be awarded a multi-year production supply agreement with the Indoor Lab. With over 15 years of experience, the company is a leader in AI-powered analytic solutions used to improve safety, security, and operational efficiency at major U.S. airports, mass transit, agriculture, and smart infrastructure. This production win represents a major expansion in security applications for AVA and is also our first industrial production win for Atlas, our next-generation 4D LiDAR designed for mass production. Under the agreement, Atlas sensors will be integrated into the IndoorLabs LiDAR Overwatch perception platform and enable the enterprise analytics suite for critical infrastructure to perform around-the-clock AI-powered analytics and to monitor and manage indoor and outdoor environments. The indoor lab is transitioning to AVA 40 LiDAR for production deployments in order to leverage our superior capability, such as direct velocity measurements and immunity to interference, but also, importantly, because of our product scalability and the maturity of our Atlas product. Our first installations are at some of the largest and busiest airports in the U.S. starting with a new terminal at JFK in New York and multiple terminals at San Francisco International Airport. In addition, the indoor lab is planning to expand deployment opportunities of 40 LiDAR to other applications at scale for other airports, as well as mass transit, agriculture, and smart infrastructure applications across the United States. As we deliver on the initial deployments, We expect to scale our supply to significant volumes to support the deployments and other industrial security applications, resulting in estimated revenue opportunity in the multiple tens of millions of dollars over the next two to three years. We have already begun shipments to the indoor lab last month and plan to scale volumes in 2025. Moving now to the latest on the Diamond Truck Production Program. TORQ Diamond Truck subsidiary that is developing the OEM's autonomous driving technology achieved a significant step toward the safe and scalable commercialization of autonomous trucks. In a comprehensive validation milestone, TORQ trucks equipped with AVA 40 Vidar with 360 degrees field of view coverage successfully completed fully driverless runs at highway speeds of 65 miles per hour. This is a major accomplishment that clearly illustrates the tremendous progress and dedication Diamond Trucks and TORQ and partners are making to commercialize autonomous trucks on the U.S. highways by 2027. As the exclusive long-range and ultra-long-range lighter supplier for Diamond Trucks autonomous truck production program, Multiple AVA 40 LIDARs are being integrated into each truck for operation with Torque's virtual driver technology to enable highway speed autonomy starting with the Freightliner Cascadia platform. We remain on track with our startup production in 2026 to support Diamond Truck's planned market entry by 2027. In passenger vehicle, AVA was selected for a major European Passenger OEM's automated vehicle validation program. In collaboration with a leading simulation and validation technology provider, AVA-40 LiDAR will gather ground truth data, which will serve as the benchmark for validating its next generation vehicle automation systems, including sensing, perception, decision-making, and control systems. The OEM's decision to use AVA-40 LiDAR for this project is another example of the growing interest to leverage FMCW technology due to its ability to natively provide the additional dimension of instant velocity data, along with other advantages that are missing in conventional LiDAR sensors. We look forward to supporting the validation work and providing the OEM real-world experience with the differentiated capabilities of AVA-40 LiDAR. Now, moving on to additional opportunities that we are engaged on. We are highly encouraged by the growing interest in our unique FMCW technology, and Q3 made strong progress on multiple automotive RFQs and engagements with leading OEMs. In particular, with a global top 10 passenger OEM that we have discussed over the course of this year, we have advanced through multiple phases of their RFQ now, having work jointly on spec alignment on thousands of technical requirements and passing extensive manufacturer and quality audits to be the potential tier one supplier. AVA has been down selected to the final stage of the RFQ and will remain in close collaboration with OEM across the technical and commercial teams as they work through the finalization of the RFQ for the production program. To support our ongoing engagement and growing number of production wins, such as with the indoor lab, I am pleased to share that we have made the strategic decision and superb execution to pull forward the first shipment of Atlas by almost six months to this quarter. This was a massive team effort across the AVA organization that meaningfully changes our ability to support recent production wins, pull forward scaling of our Atlas deliveries, and capitalize on additional interest for our unique technology. Atlas is our production intent product that was designed from the ground up to be automotive grade and scalable to mass volume. Based on our engagements, customers are increasingly looking for solutions that can be deployed at significantly greater scale than today's solutions. By accelerating the availability of Atlas, we believe this further positions Ava to be in a market-leading position to not only deliver on our recent production wins, but continue to convert additional opportunities to production wins. With that, let me turn the call over to Saurabh to discuss the financials.