indie Semiconductor, Inc.

Good afternoon, everyone, and welcome to Indy Semiconductor's Third Quarter 2021 Earnings Call. This call is being recorded. At this time, I will turn the call over to Pilar Borregas, Head of Global Corporate Communications for Indy. Ms. Borregas, please go ahead.

Thank you, operator. Good afternoon, everyone, and welcome to Indy Semiconductor's Third Quarter 2021 Earnings Call. Joining me today are Donald McClymont, Indy's co-founder and CEO, and Tom Schiller, Indy CFO and EVP of Strategy. Donald will provide opening remarks and discuss business highlights from the quarter, followed by Tom's review of Indy's third quarter results and fourth quarter outlook. Please note that 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 about 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 risk factors in our recent registration statement on Form S-1 and our other public reports filed with the SEC. Additionally, the results and guidance discussed today are based on certain non-GAAP financial measures. For a complete reconciliation to GAAP, please see our Q3 earnings press release, which was issued in advance of this call and can be found on our website at IndySemi.com. With that, I'll turn the call over to Donald.

Thanks, Pilar, and welcome, everyone. I'm pleased to report our strong quarterly results and discuss the strategic initiatives we have completed in the few short months since our debut as a public company in June of this year. For the third quarter of 2021, INDI exceeded both top and bottom line expectations, as well as made significant strides towards realizing our vision of becoming the semiconductor and software solutions provider across Autotech. Specifically, during the quarter, we outpaced our addressable markets and grew revenue sequentially and year-over-year to a record 12 million. We expanded gross margin in a challenging supply chain environment, doubled down in key strategic product investment areas, exited the quarter with $324 million in cash and virtually no debt, and updated our strategic backlog to $2.6 billion, up from $2 billion last year. At a higher level, Indy is clearly at the center of several powerful industry megatrends. Automakers are in the early stages of large-scale investments in next-generation vehicles that will usher in increased safety features and enhance the user experience towards widespread electrification and autonomy. As a result, semiconductor content per car is anticipated to reach up to $4,000 per vehicle, an 8x increase from the average level today. According to IHS, the global automotive semiconductor market is on pace to reach $36 billion in 2021 and is expected to exceed $62 billion by 2026, growing at a compound annual growth rate of 12%. Meanwhile, Indy's served addressable market represents $19 billion over this time in 2021 and is expected to grow to $40 billion over this same timeframe, or about 15% per year. In particular, Sales of advanced driver assistance systems are expected to rapidly cascade down from flagship models today to entry-level vehicles, as park assists, early warning systems, and collision avoidance functions increasingly become standard features as mandated by regulatory agencies. Additionally, wireless charging, ambient lighting, in-cabin connectivity, telematics and data integration products, spaces where Indy is already active, are seeing strengthening demands. All of these factors will drive dramatic changes to vehicles' electronic architectures going forward. The future of electrification and autonomous vehicles are expected to create enormous opportunities for the automotive semiconductor industry, and Indy in particular, as these applications require the latest in highly integrated mixed signal semiconductors and embedded software. Today, Indy's advanced technologies are directly answering intensifying market needs for a step function increase in electronic performance and integration required by our customers. Our third quarter outperformance demonstrates how we are in the early innings of capitalizing on this opportunity. Further, to that end, during Q3, we ramped production of ultrasound devices for ADAS and park assist systems, captured next generation sockets with a global automotive connectivity and power delivery leader, secured advanced lighting designs with a premier provider of electric vehicles and expanded our footprint of the German automotive supplier for user experience applications. At the same time, we are strategically adding innovative design teams and capabilities to augment our technical breadth, accelerate Indy's product roadmaps, extend our market reach, and substantially bolster our IP portfolio. First, we executed a purchase agreement and subsequently closed our acquisition of Teraxion, adding complementary LiDAR laser solutions for ADAS and autonomous vehicle applications. Given the critical role LiDAR plays in achieving maximum levels of safety for assisted and self-driving cars, we are excited to leverage Teraxion's leadership laser technologies that, when optimized together with our SOC solutions, will facilitate order-of-magnitude improvements in both system performance and cost, and in turn position Indy to accelerate mass market deployment of LiDAR platforms. Second, we recently announced our intent to acquire analog devices' Simeo radar division. Simeo's industry-leading sensor technology, underpinned by 120 radar-related global patents and applications, enables real-time position detection and velocity measurement for high-precision radar solutions. Upon closing, which we anticipate to be in Q1 2022, this transaction will accelerate our entry into the large and growing automotive radar market, as well as further augment our software and system level expertise in support of ADAS and autonomous vehicle applications. And third, we have acquihired a radar design team of highly skilled engineers in Haifa, Israel and Phoenix, Arizona, who bring strong domain and millimeter wave technology along with 65 radar patents and applications. Bringing together the latter two teams with incredibly strong and complementary expertise, significantly expands our sensor modality capability and confirms our commitment to this market. With the global automotive radar TAM expected to reach 7.6 billion by 2026, we are thrilled to welcome both design teams. Finally, we announced the formation of the dedicated VisionQ business unit led by proven industry veterans to expand our edge compute and perception-enabled vision processing capabilities. This team has already demonstrated extraordinary success in bringing millions of silicon software and system solutions to the vision processing market over the last two decades. We plan to leverage their experience to create high-quality, differentiated devices with the best performance at the lowest cost, power, and footprint, redefining perception-based vision processing. As a result, Indy is now even better equipped to capitalize on the Autotech opportunity as we create a one-stop shop for all sensor modalities, including LiDAR, radar, ultrasound, and vision, while continuing to drive advanced roadmaps of our existing product lines and expanding our geographic design and development footprint to uniquely serve our customers' needs. I'll now turn the call over to Tom for discussion of our Q3 results and Q4 outlook.