Innoviz Technologies Ltd.

Ladies and gentlemen, thank you for standing by and welcome to Innovis' second quarter 2025 earnings call. Our presentation today will be followed by a Q&A session, at which time, if you wish to ask a question, you will need to raise either your hand using your mobile or desktop application, or press star 9 on your mobile keypad and wait for your name to be announced. I must advise you that this call is being recorded to date. I'd now like to hand over the call to our first speaker today, Adam Menaker, Head of Investor Relations. Please go ahead.

Good morning. I would like to welcome you to the Innovis Technology's second quarter 2025 earnings conference call. Joining us today are Omer Kilaf, Chief Executive Officer, and Eldar Tsegla, Chief Financial Officer. I would like to remind everyone that this call is being recorded and will be available on the investor relations section of our website at ir.innovis.tech. Before we begin, I would like to remind you that our discussion today will include forward-looking statements that are subject to risks and uncertainties relating to future events and the future financial performance of Innovis. Actual results could differ materially from those anticipated in the forward-looking statements. Forward-looking statements made today speak only to our expectations as of today, and we undertake no obligation to publicly update or arise them. For a discussion of some important risk factors that could cause actual results to differ materially from any forward-looking statements, please see the risk factors section of our Form 20-F filed with the SEC on March 12, 2025. Omer, please go ahead.

Thank you, Ada, and good morning to everyone joining us on today's call. At the beginning of the year, we set a series of ambitious financial and business targets for 2025. And today, I'm happy to tell you that we are on track to meeting them. On the financial side, our revenue for the quarter was $9.7 million, bringing the first half of the year to $27.1 million. This was more than our revenue for all of 2024. We are confident that we will meet our target of 50 to 60 million dollars for the full year. Cash burn in the quarter was 7.3 million dollars, consistent with our guidance for a single digit cash burn and with our intention to dramatically reduce cash burn this year as we continue to strengthen our financial position. Moving on to the business side. We recently announced a statement of development agreement with a top five passenger automotive OEM as we work towards a potential nomination. The agreement is for the developing modifications to our Innovis II Lighter for the OEM's level three global production passenger vehicle program slated for SOP in 2027. This OEM is a new geography for us, and we think this could unlock further opportunities for us in the region. We continue to make progress with our existing L3 and L4 programs. As we look forward to customer SOPs, we are tremendously pleased with our partnership with Mobileye, Volkswagen, and others on their accelerating Robotaxi plans. As these programs start to deploy, we believe that LiDAR technology is increasingly becoming recognized as a necessity for automotive safety and autonomous driving. In the second quarter, we launched InnoVis Smart, which brings our auto-grade LiDAR to industrial and other non-automotive applications. Just a few weeks after the launch, we announced collaborations with companies such as Cognitive, Sparge, CCTV, and Chrome AI for security and safety projects. We are working with many others as we demonstrate and test the solution. Additionally, we established InnoVis Smart's compatibility with NVIDIA, Jetson, AGX, or in-platform. In all, InnoVis Smart is off to an amazing start. On the production side, to support growing demand from customers across L3, L4, and non-automotive applications, we've begun shipping units from FabriNet's high-volume production line. It is a significant achievement for us that demonstrates that we are well positioned to ramp InnoVis 2 and scale our operations to meet growing demand and cross-customer SOPs in 26 and 27. Last quarter, we told you that we are at the start of the next chapter of the InnoVis story, becoming the world's premier large-scale supplier of best-in-class ladder solutions for autonomous driving and beyond. In the second quarter, we demonstrated that our journey is underway and we are delivering on our mission as we ramp production and continue to win new customers. With that, let's jump into the details. Let me begin by telling you more about our Q2 and first half financial results. In the quarter, we reported revenues of $9.7 million as we generated more revenues in just the first half of 2025 than in all of 2024. The revenues were driven by a combination of LIDAR unit sales and NREs. We are shipping units to our existing and potential customers. And as of July, we're shipping from Frabunet as well as from our headquarters. These units are going to various Mobileye Drive customers, to the new top five OEM we announced, and to VW to support the ramp of the autonomous VW ID.Bus shuttle that's been in the news. We ended the quarter with $79.4 million in cash and cash equivalents. We started the year with $80 million in NRE payment plans. We grew the plan to approximately $95 million in Q1. In Q2, we further expanded the payment plans beyond the $95 million with the addition of the new top five OEM that we mentioned earlier. At the beginning of the year, we guided for $20 to $50 million in NRE bookings. So far this year, we've already booked more than $20 million in NREs. And given our outlook, we are increasing our NRE booking guidance for 2025 to $30 to $60 billion. As we recognize revenues for these NREs, we are continuing to execute on our commitments. meet customer milestones and pursue opportunities with new customers. Cash burn in the quarter was $7.3 million in line with our guidance for a single digit burn in the second quarter versus $20.7 million in the first quarter. Supported by our balance sheet and NRE payments plan, we are well positioned to deliver on the product ramps that we expect over the next two years. Turning now to our recent business accomplishments. In June, we signed an SOW agreement with a top five passenger automotive OEM for a development project for level three global production passenger vehicle program. This is a new program for us from a customer with whom we've been in discussion for quite some time. Beginning in Q2, we have been developing hardware and software modifications for the Innovis 2 to ensure seamless integration into the OEM's vehicle system. And we've already begun shipping units to the customer. We expect to ship hundreds of units in the coming months. This will facilitate a smooth ramp towards the planned data collection campaign as our companies work towards a serious production agreement. Start of production is slated for 2027. This is a great milestone for innovation, not just because of the size of the customer, the volumes, the program can generate and the timeline. But because we believe other companies in this geography may follow suit. We've also started discussion with the customer to expand the collaboration to short range ladder. Which could be used in different programs at the OEM. This potential expansion of our engagement demonstrates the benefit of having multiple solutions on one platform. As we've seen in previous programs with other customers, an SOW allows us to conduct development work on a program which will allow us to meet SOP timelines while the commercial discussions for serious production are progressing. With two out of five top global OEMs now working with InnoVis, our position in the lighter space is stronger than ever. Over the past few months, we've seen tremendous acceleration of plans to deploy level four robot taxis around the world. This truly feels like an inflection point for autonomous driving. To enable this trend, we are deeply engaged with our level four partners, VW and Mobili, and their customers, Moya, Holland, Verney, and others. We are very pleased with the ramp in our collaboration with Volkswagen in support of Moya and Uber's planned rollout of the ID.Bus in multiple European and US cities starting in 2026. Ahead of the fleet launch, hundreds of ID Buzz shutters will be equipped with a suite of InnoVis lighters in 2025. Recall that the ID Buzz, which is based on the Mobileye Drive platform, has nine InnoVis 2 lighters per vehicle, three long-range and six short-to-mid-range. We are also encouraged by the recent announcement from Lyft on the upcoming deployment of Mobileye-based autonomous vehicles by Holon and Bentler brand on the Lyft platform. Critically with this interest and acceleration deployments plans, there seems to be a growing understanding that LiDAR is a must have for true safe autonomous driving. Innobis offers a mature, scalable, cost-effective LiDAR solution and our relationships with industry leaders supports this vision. The team and I will be demonstrating automotive products at the IAA Mobility Conference in Munich in September. In addition to our automotive advances, we recently launched the Inoviz Smart, our automotive grade lighter now available for applications such as security, mobility, aerial robotics, and traffic management. Development to meet customer demand, Inoviz Smart is a rugged, reliable sensor. It features low power consumption, a wide field of view, and a uniform high resolution 3D point cloud that enables accurate object detection at distances of now up to 450 meters, even in harsh outdoor conditions like dust, sunlight, and rain. Shortly after unveiling the InnoVis Smart, we announced that we are partnering with Cognitim to create a turnkey solution for a wide range of safety and security applications. We also announced that we are working with Sparse CCTV and Krone AI to offer an integrated LiDAR camera vision perception platform. The platform is purpose-built for large-scale deployment across transport, perimeter, security, railways, and critical infrastructure. Additionally, InnoVis Smart is now part of the NVIDIA Jetson Oren AGX reference design. This will allow more developers to benefit from NVIDIA advanced AI processing capabilities in applications such as smart cities and traffic management, security, robotics, and more. There are many RFQs for non-automotive programs where the prospective customers see the advantages of using a LiDAR. These projects have significantly shorter design cycles with much higher ASPs compared to automotive. In some potential projects, we've been able to demonstrate that a single InnoVis LiDAR can fulfill the application requirements as opposed to a multiple from another LiDAR company. We are engaging with over a dozen companies that are exploring our solution for a variety of projects. We believe our ladder is very well suited to win in the market, offering better value and better technology to customers. We will be demonstrating the Innove Smart at the ITS, Intelligent Transport Systems, World Congress in Atlanta later this month. The growing interest in Innove Smart validates the path we took to the non-automotive space. By first focusing on developing and bringing to production an automotive-grade device for a higher volume application, we can now offer non-automotive customers an easy-to-integrate, reliable solution. In the next few years, we believe that the InnoVis Smart could drive significant incremental revenue for InnoVis with limited incremental spending. We are making great progress in this space and are very optimistic about our opportunities for growth in this segment, given the strength of our solution. Let me now update you on our production capabilities. At the beginning of the year, we said that we would ship an order of magnitude more units in 25 than in 2024. We are seeing growing demand for ladder units from existing customers and from companies whom we are engaging on new programs. To meet their needs, we are on track to ship 10 times more units in the third quarter versus the second quarter and last month. We announced that we are starting to ship units from FABUNET's high volume production line. This marks a major milestone in our journey to mass producing our INNOVIS II LiDAR platform. The ramp up at FABONET's facility follows months of collaboration and extensive training, ensuring that all production procedures meet INNOVIS' rigorous quality standards. With these initial shipments, INNOVIS moves closer to meeting the growing demand for scalable autonomous vehicle solutions for automotive OEMs and mobility companies worldwide. Now let's move on to our outlook. Driven by the NRE payments that we expect in 2025, combined with sales of lighter units, we continue to expect a more than a twofold increase in our revenues year-over-year for 2025 at 50 to 60 million dollars. As you saw in the first half, our cash burn is continuing to decline thanks to our tightly managed expenses as well as the actions we took in the first quarter. On the operational front in 2025, we continue to target 1 to 3 new programs. We expect 1 to 2 in addition to the SOW that we already signed. given that we've already booked more than $20 million in NREs this year, we are raising our guidance for NRE bookings in $25 to $30 to $60 million from $20 to $50 million. All in all, our year is progressing very nicely. With that, I'll turn it over to Eldao to talk about our financials.