Gauzy Ltd.

Good morning and welcome to the Gauzy Limited Second Quarter 2024 Earnings Conference Call. Today's call is being recorded and we have allocated one hour for prepared remarks and Q&A. At this time, I would like to turn the conference over to Mr. Dan Scott, Investor Relations. Thank you. You may begin.

Thank you, Operator, and thank you, everyone, for joining us today. Hosting the call today are Gauzy's CEO and co-founder, Eyal Peso, and CFO, Meir Peleg. On this call, management will be making forward-looking statements, not historical facts, which are based on management's current expectations, beliefs, projections, and assumptions, many of which, by their nature, are inherently uncertain. These forward-looking statements are subject to risks and uncertainties. Actual results could differ materially from our forward-looking statements if any of our key expectations, beliefs, projections, or assumptions are incorrect because of other factors discussed in today's earnings news release and the comments made during this conference call or in our latest reports and filings with the Securities and Exchange Commission, each of which can be found on our website, www.gauzy.com. We do not undertake any duty to update any forelooking statements. This call contains time-sensitive information that is accurate only as of today, August 8th, 2024. Except as required by law, Gauzy disclaims any obligation to publicly update or revise any information to reflect events or circumstances that occur after this call. Today's presentation will also include references to non-GAAP financial measures. You should refer to the information contained in the company's second quarter press release for definitional information and reconciliations of historical non-GAAP measures to the comparable financial measures. With that, let me turn the call over to Eyal.

Thank you very much, Dan, and good morning, everyone. This is our first conference call since completing our initial public offering in June. And I would like to start out by thanking our team for their outstanding execution, as well as our new shareholders for their tremendous support. The IPO was an important milestone for our company, and we are all excited about the new opportunities that being public creates for us. Our results so far in 2024 reflects record growth attributed to new commercial opportunities and the expansion of existing programs with our strong and sticky customer base. I know that our team is just getting started on what they can achieve, and we look forward for continuing to deliver on our objectives. I'm going to focus my opening remarks today on three topics. One, providing a brief overview of Gauzy for those of you who are new to the story. a high-level summary of how we performed in the second quarter and first half. And three, and finally, our strong backlog and pipeline of innovation, driving our positive outlook for the business for the rest of the year. Following that, I will turn it over to Gauzy's Chief Financial Officer, Mayer Pelling, who will provide financial highlights from the second quarter. So first, a brief overview of Gauzy and what we do. We are a global leader in light and vision control technologies, specializing in advanced materials and systems that enable the electronic control of light through transparent temperatures. We are headquartered in Tel Aviv with a significant global presence that includes over 650 employees across 14 locations worldwide. Gauzy serves more than 1,000 customers today in over 30 countries. Through both direct sales and a network of over 95 certified partners, our innovation is backed by 141 patents across multiple countries, including the U.S., Germany, France, Israel, China, Japan, and more. We are a deep science company that is fully integrated from developing our own IP to research and development through to production, manufacturing, and delivery. Leveraging our expertise in material science and software-embedded electronics, we create world-leading products, including smart glass and advanced driver assistance systems, or ADAS, serving our rapidly growing key markets, including aeronautics, automotive, and architecture. We are focused on the research, development, and manufacturing of smart materials and systems that enable control of light through transparent apparatus. We have the most comprehensive portfolio of technologies, including polymer dispersed liquid crystal, or PDLC, and suspended particle devices, or SPD. Both PDLC and SPD technologies allows us to electronically control light through transparent materials such as glass to control privacy, reduce glare, control temperature for energy savings and comfort. Our technologies allow any window to transition from transparent to fully opaque. Our products are already widely adopted in both the interior and exterior glazing of buildings, cars, and aircraft. This technology can already be found on the sunroofs of McLarens, Mercedes, GM Cadillacs, and Ferraris, and is expected to be widely adopted in mass market cars in coming years. In Vision Control, we are focused on the development, manufacturing, and delivery of ADAS, for commercial vehicles, including buses and trucks. Our core ADAS product offerings include our AI-powered TMS, or camera monitoring system, called Smart Vision. Smart Vision eliminates the need for side and rear view mirrors and replaces them with high-definition exterior cameras and interior displays. Expanding the driver's visible range to eliminate blind spots and delivering audio-visual alerts for real-time hazards enables drivers to make faster, more informed decisions that dramatically reduce accidents. By developing our proprietary AI module, we have created a self-learning system that allows us to understand and resolve the most important challenges drivers and fleets experience. One example of how AI can be experienced in our system is with automatically generated adaptive lines that resolve depth perception constraints inherent to long and changing body vehicles such as semi. Gauzy delivers our ADAS and CMS technologies both as a Tier 1 to OEM and as a retrofit solution to existing fleets. Smart Vision is chosen by Ford trucks and for buses by the world's largest manufacturers such as Yutong, Mons, Scania, Irizal, and more. Gauzy is comprised of four distinct business divisions serving four key end markets. In aeronautics, Gauzy operates as a tier one supplier of cockpit and cabin shading systems for commercial and business aviation. We are involved in production programs with major aircraft manufacturers like Boeing, Airbriar, and Bombardier. Our well-established OEM relationships resulted in newly awarded programs for various aircrafts this year, which increased our share in cockpit shading to a staggering 95% market share. We have also leveraged this leadership position to move beyond cockpit shading into cabin shading, where we have been selected by airlines to utilize both our light-controlled glass and electromechanical shades. The addressable market for shading and lighting systems in commercial and business jets is estimated at $600 million annually, and we currently have very few competitors. This division is already profitable and generates cash. In May of this year, we showcased our innovative cabin shading systems and transparent display technologies with an emphasis on the commercial industry in Hamburg at AIX, the world's largest aircraft interior exhibition. In architecture, we operate as a tier two supplier serving various architectural applications, including interior partitions, exterior facades, and skylights. We have an extensive distribution network, which includes more than 95 certified and trained glass fabrication partners in more than 30 countries that deliver our products to their local markets. We have a strong and growing presence with the world's best architectural firms, designers, and builders. In automotive, Gauzy operates as a Tier 2 supplier, working with both OEMs and auto glass manufacturers. We have initiated serial production programs with six different OEMs, such as Daimler, and continue to add new OEMs and models at a rapid pace. Our technologies are highly relevant for electric vehicles, which typically have large glass roofs. Shifting now to our safety tech business, where we are a Tier 1 supplier of our ADAS products to commercial vehicles, such as buses and trucks. Our SmartVision product line is already replacing mirrors in more than 80 cities around the world. Last month, we announced our deployment in Paris ahead of the Olympics, adding to our successful deployment in London, where we are installed on over 3,000 buses and growing. Each of our four business divisions has its own unique growth drivers. I'll make two important points. First, we address both OEM and aftermarket retrofit, which dramatically expands our addressable market across segments. Second, Sustainability tailwinds are driving regulations such as the US Inflation Reduction Act, or the IRA, that are promoting the adoption of our product. Our business model typically involves long-term supply agreements with minimum annual commitments from our customers, allowing for stronger visibility. Next, allow me to provide some high-level thoughts on our strong performance in the quarter and the first half. We grew our total revenues 22.4% in the second quarter, and 31.5% in the first half of 2024. Our second quarter strength was highly impressive considering the significant pull forward of sales we saw in the first quarter due to accelerated demand from some of our customers. Our results for both the quarter and the first six months featured particular strengths in safety tech, aerospace, and automotive. The impressive increase in revenues was the primary driver of significantly higher gross profit in both periods. When you look at our performance on a trailing 12-month basis, or TTM, our revenue is up an impressive 43%. Our backlog is strong and growing, with a number of exciting project wins year-to-date across multiple segments that support our favorable outlook. We have been busy since our IPO. Our end markets are growing fast, our backlog is ramping, our products are winning market share, and we're executing well on our plan. Backed by a strong balance sheet and liquidity position, we are confident we will deliver on our goals. With that, I will turn it over to Meo for an update on Gauzy's financial results.