Gauzy Ltd.

Good morning, and welcome to the Gauzy Limited fourth quarter and full year 2024 earnings conference call. Today's call is being recorded, and we have allocated one hour for preferred remarks and Q&A. At this time, I would like to turn the conference over to Daniel 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 Palek. 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 forward-looking statements. This call contains time-sensitive information that is accurate only as of today, March 11, 2025. 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 also includes references to non-GAAP financial measures. You should refer to the information contained in the company's fourth quarter and full-year 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 Al.

Thank you very much, Dan, and good morning, everyone. Thank you for joining us today as we discuss our fourth quarter and full year 2024 results. 2024 was a transformative year for Galaxy. Following our successful June IPO, we've demonstrated strong execution across all facets of our business, achieving record levels on all key financial metrics, revenue, gross margin, and EBITDA, while expanding our global footprint. I want to express my deepest appreciation to our exceptional team for their dedication and professionalism and to our investors for their continued support. For today's call, I will focus my remarks on three key topics. First, I'll discuss our impressive fourth quarter and full year 2024 performance, which underscores the strengths of our business model and growing demand of our technologies. Second, I'll highlight the significant business milestones we've achieved across our four business divisions, including major contract wins and strategic partnerships that will drive our growth in 2025 and beyond. And finally, I'll share our outlook for 2025, including the exciting innovations and expansion opportunities that will further accelerate our growth trajectory. Our fourth quarter performance demonstrated strong execution across our business segments, with robust demand driving revenue growth in aeronautics, architecture, and safety tech. We successfully addressed previous production constraints by adding a second shift at our French facility, which has significantly enhanced our ability to meet accelerating demand from our global customer base. For the fourth quarter, we delivered record revenue of $31.1 million, representing growth of 41.8% compared to the fourth quarter of 2023. This impressive growth was driven by particularly strong performance in safety tech, aeronautics, and architecture. For the full year, our revenue reached a new record level of $103.5 million, up 32.8% compared to 2023, including record revenue from all four segments. A staggering 80% of our 2024 revenue was recurring from existing customers, This repeat business is what gives us confidence in our strong growth outlook in 2025 and beyond. We made significant progress in improving our gross margin, which expanded to 36.5% in the fourth quarter, up 800 basis points from 28.5% in the prior year quarter. For the full year, gross margin improved to 28.7%, a 310 basis point increase from 25.6% in 2023. This groundbreaking achievement reflects both the benefits of scale and operating efficiencies. Importantly, we achieved our goal of producing positive adjusted EBITDA for the first time ever in the fourth quarter, reaching $0.2 million compared to negative $6 million in the prior year quarter. This achievement marks a significant milestone in our journey towards sustained profitability and demonstrates our commitment to balancing strong growth with financial discipline. Looking back at 2024, I'm incredibly proud of what we accomplished in our first seven months as a newly public company. We delivered consistent growth and achieved profitability during the year while expanding our market leadership positions across our core technologies. Our commitment to innovation and operational excellence has strengthened our relationship with global OEMs, such as MSC Cruise Lines, Embraer, Ferrari, Yutong, and Ford Trucks, who recognize the transformative value our technologies bring to their platform. Now, let me highlight some of the key business milestones we achieved during the fourth quarter and subsequent period. Some of our most exciting development continues to come in our safety tech division, especially from Gauzy's advanced driver assistance system. Our ADAS was chosen to fully replace traditional side mirrors on capital district transportation authority of New York public buses. And that Yutong, the world's largest bus OEM, had increased fourth quarter orders year over year, positioning Gauzy to extend its global share of buses using our smart vision ADAS. In addition, we recently announced that we have secured renewal of our FMCSA exemption, which allows us to be the only company in the U.S. to fully remove mirrors on municipal buses and replace them with our smart vision system in all 50 states. This is an opportunity to retrofit over 900,000 buses today, representing a multi-billion dollar market annually. In addition, we initiated a multi-year serial production program with four trucks with our new Smart Vision 3 AI-based ADAS platform, representing an additional multi-billion dollar opportunity with OEM in new production. In our automotive division, our serial production program with Ferrari to supply our SPD or suspended particle device smart glass technology to support their first ever four-seater in accelerating production as the overwhelming majority of customers opt for the smart glass option over carbon roofs. We also expect to ramp deliveries to two other large OEMs in 2025, and we're especially excited that we'll be featured by Daimler at the Shanghai Auto Show this spring. In our architecture division, our exciting technology is now fully on display at three major iconic landmarks. As we alluded to last quarter, We are featured on the facade at the MSC cruise ship terminal in Miami, the largest terminal in the world. We are an integral part of the Dubai frame, an awe-inspiring structure that stands at 150 meters tall, one of the most recognizable tourist attractions in the Middle East. You can experience our exciting technology in the elevators that take you to the top of the Washington Monument in Washington, D.C., These projects provide tremendous recognition of Gauzy's unique offerings in architecture. We are a global provider in architecture building materials and seeing the fastest growth in the U.S., which now represents over half of our sales in the segment. As we look ahead to 2025, we expect to commence shipping our new BIPV technology, which is a transparent PV solar cell integrated into facades and skylights showcased for the first time at Glass Deck 2024. Finally, I'm extremely proud to announce that our team secured an order to deliver 5,000 windows per year to a major U.S. manufacturer of recreational vehicle cabins with the potential to grow in the quarters ahead. In our aeronautics division, the addition of our second shift in France helped us deliver the majority of our delayed shipments from the prior quarter. and positions us to better serve this accelerating demand. As a reminder, we are already roughly 95% market share in cockpit shading, which we still see growth due to planes flying more hours per year, which accelerates their maintenance and replacement cycles. We are rapidly growing in cabin shading as well. The new partnerships with two aircraft manufacturers and a number of major international airlines. We've made significant progress with our product development and in expanding our strategic partnerships. We partnered with Umbrella to harness AI for breakthroughs in ADAS with road safety enhancing technology already operational in four trucks. We bolstered our presence in South Korea through strategic collaboration with MABA Industrial, positioning Gauzy well to capture adoption of smart vision camera monitoring systems in a market that averages over 255,000 commercial vehicle sales per year. Before I turn it over to Meir, I want to emphasize that we are introducing our 10-year committed and contracted backlog for the first time. This reflects accelerating long-term demand across all our segments. Our current customer serial production programs indicate a projected revenue pipeline exceeding $1 billion. of which a minimum of $409 million is contracted and committed backlog. We will continue to disclose our purchase orders, currently at $31 million, which we expect to ship in the next few months. This new matrix, along with our strong fourth quarter performance, demonstrates the visibility and predictability of our revenue model, which is increasingly characterized by long-term supply agreements with minimum annual commitments. With that, I will turn it over to Meir for an update on Gauzy's financial results.