indie Semiconductor, Inc.

Good afternoon and welcome to Indy Semiconductor's first quarter 2023 earnings call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. I will now turn the call over to Ashish Gupta, Investor Relations. Mr. Gupta, please go ahead.

Thank you, operator. Good afternoon and welcome to Indy Semiconductor's first quarter 2023 earnings call. Joining me today are Donald McClimat, Indy's co-founder and CEO, and Rajabal, Indy's chief accounting officer. Tom Schiller, Indy's CFO and EVP of strategy, is out of the office with the passing of his mother just days ago. Donald will provide opening remarks and discuss business highlights, followed by Rajabal's review of Indy's Q1 results and second quarter outlook. Please note that we are 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 in different materially from expectations. For discussion of strategic backlog formulation methodology, please refer to our safe harbor statement E3 2022 earnings press release. For material risks and other important factors that can affect our financial results, please review our risk factors in our annual report on Form 10-K for the fiscal year ended December 31, 2022, as well as other public reports filed with the SEC. Finally, the results and guidance discussed today are based on certain non-GAAP financial measures. For a complete reconciliation to GAAP, please see our Q1 earnings press release, which was issued in advance of this call, and can be found on our website at www.indiesetting.com. I'll now turn the call over to Donald.

Thank you, Ashish, and welcome, everybody. I'm pleased to report that Indy delivered yet another above-plan record performance in the first quarter, reflecting robust demand for our highly innovative Autotake solutions and our unwavering commitment to achieving operational excellence. Once again, we substantially outpaced our industry peers driven by Indy's diverse and differentiated product set underpinned by over 400 global patents and applications. We're off to a strong start in 2023. Specifically, during the quarter, we grew revenue 84% year over year and 22% sequentially to $40.5 million and achieved a gross margin of just over 52%. Our deep R&D investments and targeted acquisitions are beginning to yield results, allowing Indy to sharply outpace our peer group and insulate us from isolated geographic customer and market weakness. As we'll review, we're gaining design win momentum across ADAS, user experience, and electrification applications, setting the stage for sustained outsized growth for years to come as these wins translate into program ramps and ultimately revenue and free cash flow generation. First, within the ADAS product area, we're enabling automotive OEMs and Tier 1 suppliers to meet the growing demand for advanced safety systems in next-generation vehicles. Importantly, we continue to follow a technology agnostic approach, supporting multiple sensor modalities such as radar, LIDAR, computer vision, and ultrasonic solutions, from which we will ultimately fuse the data created to provide a comprehensive and accurate perception of the vehicle's surroundings. We believe that a sensor fusion product roadmap, augmented and accelerated by our acquisition strategy, has truly differentiated Indy from the pack, including competitors who tend to cling to one modality, often with an extremely narrow customer base. Quite simply, we believe that no single sensing modality will dominate the application landscape, particularly given the diversity of ADAS use cases ranging from backup safety systems to lane assist to fully autonomous driving and everything in between. And to be clear, Indy's business plan isn't dependent on full autonomy. Our solutions support the evolution of today's safety systems from level two to what I like to call level two plus plus plus. In other words, we haven't even begun to address the opportunity presented by levels four and five, the definition of the complete driverless vehicle. But we certainly will when those markets begin to mature. In the meantime, I'm delighted to announce that during the quarter, we captured our first design win at General Motors in partnership with Sharp of Japan. While we can't elaborate upon this particular program, suffice it to say it's a material development for Indy and will initially encompass many of GM's forthcoming models, including its EV portfolio. We look forward to providing additional information upon the global rollouts next year. During the quarter, we also strengthened our position as a technology leader in automotive radar, with this acquisition of Silicon Radar, a company specializing in advanced, highly integrated, high frequency systems on chip. Silicon Radar had developed the industry's first volume production ready, highly integrated 120 gigahertz radar front end transceiver, including on chip integrated antennas. Silicon Radar had previously been a design partner to our own Munich, Germany based radar group. As vehicle safety standard initiatives, such as the European New Car Assessment Program, continue to expand globally. There is an increasing need for driver and occupant monitoring systems, making in-cabin sensing solutions as an essential component for ensuring overall safety. In fact, S&P Global Mobility predicts that the market for driver and occupant monitoring semiconductors will grow to over half a billion dollars by 2029 at a 34% compound annual growth rate. With Silicon Radar's world-class design team, we plan to lead the way. On the LiDAR front, During the quarter, we continue to make progress with our Surya SOC program, demonstrating our solution at multiple European automotive Tier 1s. Indy Surya LiDAR SOC is a game-changing product, enabling customers to implement a highly integrated and high-performance software-defined data acquisition and signal processing system. It is the world's first merchant market coherent LiDAR solution that integrates multi-channel high-speed analog to digital converters, hardware and software-based digital signal processing, together with the system control interfaces needed for an efficient and cost-effective FMCW LiDAR system. Specifically, we are targeting a $200 BOM, 80% less than current architectures. As a result, we believe INDI can uniquely drive this key three-dimensional imaging technology, which is now beginning to gain traction as a mainstream sensor. And finally, Computer vision systems are a crucial component of both ADAS and autonomous driving, serving as the primary sensing function, with next generation vehicles requiring up to 20 cameras for sensing functionality. Computer vision systems are diverse, enabling a wide range of applications, including backup cameras, surround view systems, object and lane detection, night vision, and driver and occupant monitoring. These functions collectively enable use cases such as lane change assist, highway pilot, traffic jam pilot, occupant safety, and automated parking, amongst others. During the quarter, we continue to expand our design wind pipeline, securing initial vision sockets at Panasonic in support of Honda. Next, turning to user experience, by background, OEMs have been increasingly prioritizing a best-in-class in-cabin experience as a point of differentiation, prioritizing communication, entertainment, and information sharing. With modern cars becoming more like temporary homes or workplaces, providing the ultimate user experience throughout the entire cabin is becoming the new standard. OEMs have increasingly highlighted the importance of interior lighting as it can drive an emotional connection with the driver and is a strong generator of brand recognition. Indy is redefining the future of in-cabin lighting with multicolor technologies for an enhanced user experience. The interior and exterior lighting of today's vehicles is rapidly evolving. With advanced dynamic lighting, it is possible to improve visibility and make it easier for drivers to see and be seen, which can help reduce the risk of accidents. Innovative lighting can also improve the comfort of the driver and occupants, creating an atmosphere suited to the context of the journey, style preference of the vehicle owner, and indeed the general mood. In these solutions, such as the recently announced LED matrix controller, are designed to address this growing demand for innovative and power-efficient LED lighting. Based on our power efficiency leadership, during the quarter, we captured additional advanced lighting wins at several leading EV OEMs, both North American and China-based, including BYD, NIO, and Li Auto. Similarly, mobile device integration and wireless charging are also top priorities for global automakers. This technology allows drivers to seamlessly link their mobile device into the vehicle's infotainment system safely making calls, sending and receiving messages, and enjoying their favorite music without diverting their attention from the road. To date, Apple and Android have provided compelling consumer experiences and have gained significant market share. In that process, India has played no small part in enabling this functionality. That said, our chipset is agnostic to whatever software layer is implemented, be it Apple CarPlay, Android Auto, or even in-house solutions. While some OEMs have recently announced plans to transition to internally developed architectures, Indy is in no way impacted by this development, particularly as we continue to sell data transport and power to connect the phone to the infotainment system within any configuration. At the same time, our strong relationships with Tier 1s, mobile car makers, and rapidly emerging EV OEMs have allowed us to expand our offerings into adjacent areas of user experience, such as wireless charging, USB PD controller, and other in-cabin solutions. And speaking of electric vehicles, we're seeing a market acceleration as EV sales continue to gain momentum. According to Kelley Blue Book, EV sales were up 45 percent versus the prior year in the U.S., and the EV share of the total market increased to over 7 percent. Additionally, as EV technology continues to improve, charging infrastructure expands and battery costs decrease. The potential for growth in the EV market is phenomenal. We expect global EV OEMs will seek more efficient and integrated semiconductor solutions and believe Indy is in a strong position to benefit from the growth, particularly given our strong relationships with an increasing number of leading EV OEMs around the globe. I'll now turn the call over to Raja for a discussion of our Q1 results and Q2 outlook. For those who haven't had the opportunity to meet Raja, he has been a valuable member of the Indy team for over three years and currently serves as our Chief Accounting Officer. Raja, over to you. Thanks, Donald.