indie Semiconductor, Inc.

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 call is being recorded. I will now turn the call over to Ashish Gupta with Investor Relations. Mr. Gupta, please go ahead.

Thank you, Operator. Good afternoon and welcome to Indy Semiconductors' second quarter 2023 earnings call. Joining me today are Dal McClimate, Indy's co-founder and CEO, and Tom Schiller, Indy's CFO and EVP of strategy. Dal will provide opening remarks and discuss business highlights, followed by Tom's review of Indy's Q2 results and Q3 outlook. Please note that we'll 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 material risks and other important factors that could 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 non-GAAP financial measures. For a complete reconciliation to GAAP, please see our Q2 earnings press release, which was issued in advance of this call and can be found on our website at www.indiesemmy.com. I'll now turn the call over to Donald.

Thanks, Ashish, and welcome, everybody. I am delighted to report that Indy once again exceeded our top line in gross margin guidance and delivered another quarter of record performance, a testament to both the increasing demand for our innovative auto tech solutions and and our unwavering commitment to achieving operational excellence. Our demonstrable outperformance against automotive industry peers continues to be fueled by Indy's deep product portfolio and design wind pipeline, backed by over 400 patents and applications worldwide, with engagements across virtually all leading global vehicle OEMs and Tier 1s. Specifically, during the second quarter of 2023, We grew the revenue 102% year over year and 29% sequentially to $52.1 million and achieved a gross margin of 52.2%. As we'll outline, we're gaining DesignWin traction across ADAS, user experience, and electrification applications. Of special note, during the quarter, we captured our first ever program win at Bosch, one of the world's leading suppliers to the automotive industry. This particular win rounds out our Tier 1 customer base and dramatically extends our OEM reach initially at Toyota, including Lexus. At a higher level, wins like this in the hundreds of millions of dollars in potential lifetime revenue set the stage for sustained above-market growth and the generation of annuity-like free cash flow. To that end, we're making our biggest engineering investments and design win strides within ADAS, In fact, the entire automotive industry is now squarely focused on advanced vehicle safety features above all else. For instance, the National Highway Traffic Safety Administration, NHTSA, has recently proposed a regulation that would mandate all new passenger vehicles be equipped with automatic braking capabilities capable of preventing rear-end crashes with other vehicles and collisions with pedestrians. We applaud this proposal and similar safety initiatives that leverage the next generation of auto tech technologies to prevent countless injuries and save lives. Despite the incremental industry regulations and the addition of new sensors and processes within the vehicle, the incalculable benefit of safer cars and roadways certainly far outweigh the associated costs. And at INDI, we've made this our company mission, empowering vehicle OEMs and tier one suppliers with increasingly more sophisticated yet cost-effective safety semiconductors and software for the vehicles of tomorrow, and ultimately leading towards the uncrashable car. Specifically, we are following a highly differentiated sensor fusion strategy versus a discrete approach, enabling either the integration or flexible partitioning of multiple modalities, including radar, computer vision, LIDAR, and ultrasonic solutions. We apply these modalities to capture data in different environments and ranges, and to enable a comprehensive and accurate perception of the vehicle's surroundings. The potential for a sensor fusion product roadmap, amplified and expedited by our targeted acquisitions, has set INDI distinctly apart from our competition, many of whom are just trying to develop a single modality, often in the hopes of landing an exclusive customer. Contrast this with INDI. We believe that no single technology will monopolize the playing field due to the complexity and diversity of the driving environment. The combination of sensor technologies in a harmonious fusion forms the cornerstone over a robust and efficient solution for advanced safety applications. We believe this holistic sensor strategy at scale ensures the highest levels of safety and effectively meets the diverse and immediate needs of ADAS implementations and one day, further out, the autonomous vehicle market. Within the vision product area, we're proud to highlight the aforementioned milestone achieved in the past quarter, our first program win with Bosch, which was enabled by our acquisition of Jio earlier this year. This pivotal collaboration not only underscores the effectiveness and adaptability of our solutions, but also broadens our footprint in the area of driver and occupant monitoring systems. Our vision products combine the industry's leading real-time signal processing, functional safety-enabled microcontrollers, and perhaps most importantly, artificial intelligence, AI accelerators, which enable perception algorithms to instruct the vehicle to take corrective actions. As global safety initiatives continue to evolve, the demand for these monitoring systems is intensifying, positioning in-cabin sensing solutions as critical elements to enable enhanced autonomous features. S&P Global Mobility's recent forecast reinforces this view, with the market for these OMS-DMS semiconductors projected to cross the half-billion-dollar threshold by 2029. With our unique combination of vision and radar capabilities, India is well-positioned to ascend to leadership within this rapidly emerging market as we ramp at BMW, sooner Toyota speaking of radar we've similarly made significant strides in an extremely short period of time in automotive terms aided by deep R&D investments and augmented by synergistic acquisitions including the radar division of analog devices on semis radar development team and most recently silicon radar with each bringing unique and highly complementary design teams and product IP these acquisitions and have also led to concrete achievements, including our largest design win to date and a strategic supply agreement with a top-tier supplier. On the LiDAR front, we continue to make great progress with our Surya SOC, demonstrating our Frequency Modulated Continuous Wave, or FMCW, LiDAR chipset in an increasing number of leading OEMs in the US, Europe, and Japan. And more recently, we announced a strategic partnership with Silk Technologies to deliver a world-class FMCW LiDAR solution. This partnership offers a fully integrated laser scanning system deploying coherent detection and sets the high watermark for rapidly emerging LiDAR applications. By background, FMCW-based LiDAR delivers multiple real-world benefits compared to direct detection-based time-of-flight solutions, including long range with high precision, interference immunity, per point instantaneous velocity and distance measurement. This partnership combines award-winning products from Silk and Indy into reference platforms that enable an order of magnitude improvement in sensing performance, manufacturing ability, power consumption, form factor, and cost relative to competing architectures. Turning to user experience, during the quarter, we further ramped our highly integrated, power-efficient portfolio across leading global automakers as OEMs prioritize a best-in-class cabin experience more than ever. With modern cars becoming rolling entertainment centers, network hubs, and doubling as workplace environments, providing the ultimate user experience throughout the entire cabin is becoming the new car buyer paradigm. For example, OEMs are increasingly focused on unique and differentiated interior lighting, as it can drive an emotional connection with a driver while creating a strong linkage to brand recognition. Likewise, wireless charging and USB PD are now at the OEM design forefront. These features not only provide convenience and seamless integration of personal devices into the vehicle's ecosystem, but also serve as key factors in creating a tech-forward impression, thus bolstering brand affinity. And similar to interior lighting, wireless charging and USB PD are components that form an integral part of the user's interaction with the vehicle, contributing to the overall in-cabin experience and again reinforcing the brand's commitment to technology and innovation. During the quarter, we also launched a highly integrated automotive wireless power charging system on chip. This product simplifies and accelerates the development of cost-effective WPC, also known as Qi, based in-cabin mobile device charging systems. By background, in-cabin charging has become a necessity for drivers and passengers who use their smartphone to provide real-time navigation, music, voice connections, and many other services. The emerging Qi 2.0 standard, featuring the magnetic power profile, is particularly relevant to automotive designs offering faster, more reliable charging by automatically aligning smartphones with an inductive charging coil, maintaining the device in position irrespective of vehicle motion. At the same time, we embarked on a key USB PD module design collaboration with a leading tier one, facilitating the integration of power delivery functionality to a high-speed USB hub application for a rapidly emerging OEM. As these designs ramp into high volume production, we'll certainly have more details to share. Finally, in the electric vehicle area, we continue to see long-term secular tailwinds as EV sales gain momentum. According to Cox Automotive, Americans brought nearly 300,000 full battery electric vehicles in the second quarter of 2023, implying more than a million EVs annually for the first time in U.S. history. In fact, in the second quarter, EV sales were up 48% versus the prior year in the U.S., yet the EV share of the total market is still in the single digits. In other words, EV penetration remains relatively low with massive sales headroom. Further to that end, NHTSA has introduced a proposed plan for fuel economy improvements through 2032 with a target fleet average of 58 miles per gallon, clearly encouraging EVs to reach this ambitious goal. With advancements in EV technology, rapid proliferation of charging infrastructure, and declining battery costs, the expansion potential of the EV market is truly extraordinary. Given Indy's customer engagements spanning market leaders including NIO, Ford, Rivian, GM, BMW, Mercedes, Xiaopeng, BYD, Hyundai, Nissan, Li Auto, and Volkswagen, we are especially well positioned to outpace this third megatrend. I'll now turn the call over to Tom for a discussion of our Q2 results and our Q3 outlook. Thanks, Donald.