Mobileye Releases First Quarter 2024 Results and Provides Business Overview
Apr 25, 2024
Revenue decreased 48% year over year to $239 million in the first quarter due to the significant drawdown of inventory at
our Tier 1 customers announced earlier this year.
Diluted EPS (GAAP) was $(0.27) and Adjusted Diluted EPS (Non-GAAP) was $(0.07) in the first quarter.
Inventory consumption and the expected quarterly cadence of EyeQTM SoC deliveries over the course of 2024 remains
on-track with our prior guidance.
Announcement by Volkswagen Group of a wide-ranging production award for our advanced products in the first quarter led
to an expansion of the pipeline of advanced discussions with other global OEMs.
Generated net cash from operating activities of $40 million in the first quarter. Our balance sheet is strong with $1.2 billionof cash and cash equivalents and zero debt as of March 30, 2024.
JERUSALEM--(BUSINESS WIRE)--Apr. 25, 2024-- Mobileye Global Inc. (Nasdaq: MBLY) (“Mobileye”) today released its financial results for the threemonths ended March 30, 2024.
“The financial results in the first quarter reflect a supply chain reset as the excess inventory held by our customers is consumed. We are encouraged
that the inventory draw-down and associated recovery in revenue appears to be on-track to what we laid out in January,” said Mobileye President and
CEO Prof. Amnon Shashua. “From a business development and strategy perspective, Q1 was very productive in generating traction across ourmultiple waves of future growth. In base and cloud-enhanced ADAS, we achieved a record level of design wins in terms of future projected volume, inpart due to new features and technology embedded in the EyeQ6L product. Our SuperVisionTM and ChauffeurTM development pipeline expanded
during the quarter, reflecting 1) the key announcement of the Volkswagen Group design win and 2) an increasing consensus across automotive OEMs
that eyes-on / hands-off systems (on a scalable path to eyes-off) are critical features necessary for mainstream vehicles of the near future. For
Mobileye DriveTM, we continue to build an eco-system of vehicle manufacturers and network operators that view our self-driving system as the enablerof more convenient and efficient modes of transportation. Our main focus in 2024 is to successfully execute our current advanced programs and toconvert the unprecedented opportunity set currently on the table into series production awards.”
First Quarter 2024 Business Highlights

Our core ADAS and Cloud-Enhanced ADAS offerings are now bolstered by the EyeQ6L System-on-Chip, which recently
achieved the milestone of first production-candidate shipments to global customers. This system includes incremental
advanced features and technology for a similar price to prior generations, and will be in production vehicles during 2024.
Our core ADAS business remains strong, as projected future volume for design wins awarded in Q1 totaled over 26 million
units, a record amount that is approximately 80% of the EyeQ unit volume we project to deliver in all of 2024.1
Announcement by Volkswagen Group of our wide-ranging production award for SuperVision, Chauffeur, and Drive
products, a potential multi-billion dollar nomination, was a milestone achievement for Mobileye. Importantly, we believe thiswas a key driver of the Q1 expansion of our pipeline of advanced discussions with OEMs from around the globe. Overall,
we are seeing a solidified consensus view among many OEMs, including mainstream brands, that a SuperVision-typefeature set is critical to being competitive over the medium and long-term in a software-defined, recurring revenue world.
As well as that Mobileye’s SuperVision technology supports an optimized balance of performance and cost while providing
a scalable platform to pursue Level 3 eyes-off and beyond.
On the Mobility-as-a-Service front, we continue to make progress creating an ecosystem of multiple vehicle platforms
pre-engineered to integrate our self-driving system and a set of customers to deploy the vehicles in transportation
networks. This includes production awards from Volkswagen and P3 announced this quarter, in addition to existing
programs with Schaeffler / VDL and Holon. On the technical side, we expect to deliver first samples of the Drive 64 ECU
during 2024. This represents a meaningful step forward from previous EyeQ5-based systems on the path to a scalable
self-driving system.
We are on track to deploy B-samples of our EyeQ6H-based ECUs for the next generation SuperVision and for Chauffeur
and Drive products during the third quarter of this year. The software stack to be embedded in these systems includes
state-of-the-art novel Artificial Intelligence (AI) systems including end-to-end perception and end-to-end actuation running inparallel, for purposes of redundancy, to the networks powering our current generation of SuperVision.
First Quarter 2024 Financial Summary and Key Explanations (Unaudited)GAAP
U.S. dollars in millions

Q1 2024

Q1 2023% Y/Y

Revenue

$ 239

$ 458

(48

%)

Gross Profit

$ 54

$ 207

(74

%)

Gross Margin

23

%

45

Operating Income (Loss) $ (238 )$ (81Operating Margin(100 )%% (2,260)bps
)

(18

(194

)%

)% (8,190)bps

Net Income (Loss)$ (218 )

$ (79

)

(176

)%

EPS - Basic$ (0.27 )$ (0.10 )

(174

)%

EPS - Diluted$ (0.27 )$ (0.10 )

(174

)%

Non-GAAP
U.S. dollars in millions

Q1 2024

Q1 2023 % Y/Y

Revenue

$ 239

$ 458

(48 %)

Adjusted Gross Profit

$ 148

$ 324

(54 %)

Adjusted Gross Margin

62

%

71

% (876)bps

Adjusted Operating Income (Loss) $ (65

)

$ 124

*NM

Adjusted Operating Margin

(27

%)

27

% *NM

Adjusted Net Income (Loss)

$ (55

)

$ 115

*NM

Adjusted EPS - Basic$ (0.07 )$ 0.14*NM

Adjusted EPS - Diluted$ (0.07 )$ 0.14*NM*Not Meaningful

All key operating metrics in the first quarter of 2024 were impacted by significantly lower volume of EyeQ shipments which
was the result of the expected large drawdown of inventory at our Tier 1 customers, as reflected in our guidance provided
earlier this year. In addition to the revenue impact, gross margin was impacted by the higher percentage of revenue
attributed to our SuperVision product which was not impacted by the inventory drawdown. While SuperVision generates
significantly more gross profit dollars per unit, it carries lower percentage gross margin than basic ADAS products due tohigher hardware content. Operating margin was impacted by lower gross profit without an associated reduction in operating
expenses as we remain confident in our business outlook and continue to execute on our long-term strategy. Given our
expectation that volumes and revenue will normalize over the course of 2024 we would expect all these metrics to improvesignificantly as compared to the first quarter of 2024.
Revenue of $239 million decreased 48% compared to the first quarter of 2023 due to a 58% decrease in EyeQSoC-related revenue primarily attributable to the usage of meaningful inventory at our Tier 1 customers to satisfy demand.
This was partially offset by an increase in SuperVision related revenue.
Average System Price2 was $61.0 in first quarter of 2024 as compared to $53.9 in the prior year period primarily due tothe higher percentage of SuperVision-related revenue as compared to the first quarter of 2023.
Gross Margin declined by nearly 23 percentage points in the first quarter of 2024 as compared to the prior year period.
The decrease was primarily due to the increase in percentage of revenue attributable to SuperVision, as well as similarlevels of amortization of intangible assets cost on a significantly lower revenue base.
Adjusted Gross Margin declined by nearly 9 percentage points in the first quarter of 2024 as compared to the prior year
period. The decrease was primarily due to the increase in percentage of revenue attributable to SuperVision.
Operating Margin declined to a negative margin in the first quarter of 2024 as compared to the prior year period. The
decrease was primarily due to lower Gross Margin and operating expenses that were similar to the prior year but on asignificantly lower revenue base.
Adjusted Operating Margin declined to a negative margin in the first quarter of 2024 as compared to the prior year period.
In addition to lower Adjusted Gross Margin, the most significant impact was higher operating expenses as a percentage ofrevenue due to the unusually low revenue base.
Operating cash flow for the three months ended March 30, 2024 was $40 million. Cash used in purchases of property andequipment was $22 million for that same period.
1 Mobileye’s revenue for the periods presented represent estimated volumes based on projections of future production volumes that were provided byour current and prospective OEMs at the time of sourcing the design wins for the models related to those design wins. See the disclaimer under theheading “Forward-Looking Statements” below for important limitations applicable to these estimates.
2 Average System Price is calculated as the sum of revenue related to EyeQ® and SuperVision systems, divided by the number of systems shipped.

Financial Guidance for the 2024 Fiscal YearThe following information reflects Mobileye’s expectations for Revenue, Operating Loss and Adjusted Operating Income results for the year ending
December 28, 2024 which is unchanged from the expectations first disclosed on January 4, 2024 and reaffirmed in our January 25, 2024 press
release.
We believe Adjusted Operating Income (a non-GAAP metric) is an appropriate metric as it excludes significant non-cash expenses including: 1)
Amortization charges related to intangible assets consisting of developed technology, customer relationships, and brands as a result of Intel’sacquisition of Mobileye in 2017 and the acquisition of Moovit in 2020; and, 2) Share-based compensation expense. These statements represent
forward-looking information and may not represent a financial outlook, and actual results may vary. Please see the risks and assumptions referred to in
the Forward-Looking Statements section of this release.
Full Year 2024
U.S. dollars in millions

Low

High

Revenue$ 1,830$ 1,960

Operating Loss

$ (468 ) $ (378 )Amortization of acquired intangible assets $ 444$ 444

Share-based compensation expense

$ 294

$ 294

Adjusted Operating Income

$ 270

$ 360

Earnings Conference Call Webcast Information
Mobileye will host a conference call today, April 25, 2024, at 8:00am ET (3:00pm IT) to review its results and provide a general business update. The
conference call will be accessible live via a webcast on Mobileye’s investor relations site, which can be found at ir.mobileye.com, and a replay of the
webcast will be made available shortly after the event’s conclusion.
Non-GAAP Financial Measures
This press release contains Adjusted Gross Profit and Margin, Adjusted Operating Income and Margin, Adjusted Net Income and Adjusted EPS, whichare financial measures not presented in accordance with GAAP. We define Adjusted Gross Profit as gross profit presented in accordance with GAAP,
excluding amortization of acquisition related intangibles and share-based compensation expense. Adjusted Gross Margin is calculated as Adjusted
Gross Profit divided by total revenue. We define Adjusted Operating Income (Loss) as operating loss presented in accordance with GAAP, adjusted to
exclude amortization of acquisition related intangibles, share-based compensation expenses. Operating margin is calculated as Operating Income(Loss) divided by total revenue, and Adjusted Operating Margin is calculated as Adjusted Operating Income divided by total revenue. We define
Adjusted Net Income as net loss presented in accordance with GAAP, adjusted to exclude amortization of acquisition related intangibles, share-based
compensation expense, as well as the related income tax effects. Income tax effects have been calculated using the applicable statutory tax rate foreach adjustment taking into consideration the associated valuation allowance impacts. The adjustment for income tax effects consists primarily of thedeferred tax impact of the amortization of acquired intangible assets. Adjusted Basic EPS is calculated by dividing Adjusted Net Income for the periodby the weighted-average number of common shares outstanding during the period. Adjusted Diluted EPS is calculated by dividing Adjusted Net
Income (Loss) by the weighted-average number of common shares outstanding during the period, while giving effect to all potentially dilutive commonshares to the extent they are dilutive.
We use such non-GAAP financial measures to make strategic decisions, establish business plans and forecasts, identify trends affecting our business,and evaluate performance. For example, we use these non-GAAP financial measures to assess our pricing and sourcing strategy, in the preparation of
our annual operating budget, and as a measure of our operating performance. We believe that these non-GAAP financial measures, when takencollectively, may be helpful to investors because they allow for greater transparency into what measures our management uses in operating ourbusiness and measuring our performance, and enable comparison of financial trends and results between periods where items may vary independentof business performance. The non-GAAP financial measures are presented for supplemental informational purposes only, should not be considered a
substitute for financial information presented in accordance with GAAP, and may be different from similarly titled non-GAAP measures used by othercompanies. A reconciliation is provided below for each non-GAAP financial measure to the most directly comparable financial measure presented inaccordance with GAAP. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial
measures to their most directly comparable GAAP financial measures.
About Mobileye Global Inc.
Mobileye (Nasdaq: MBLY) leads the mobility revolution with its autonomous driving and driver-assistance technologies, harnessing world-renowned
expertise in computer vision, artificial intelligence, mapping, and data analysis. Since its founding in 1999, Mobileye has pioneered suchgroundbreaking technologies as REM™ crowdsourced mapping, True Redundancy™ sensing, and Responsibility Sensitive Safety (RSS). These
technologies are driving the ADAS and AV fields towards the future of mobility – enabling self-driving vehicles and mobility solutions, powering
industry-leading advanced driver-assistance systems and delivering valuable intelligence to optimize mobility infrastructure. To date, approximately
170 million vehicles worldwide have been built with Mobileye technology inside. In 2022 Mobileye listed as an independent company separate fromIntel (Nasdaq: INTC), which retains majority ownership. For more information, visit https://www.mobileye.com.
“Mobileye,” the Mobileye logo and Mobileye product names are registered trademarks of Mobileye Global. All other marks are the property of theirrespective owners.
Forward-Looking Statements
Mobileye’s business outlook, guidance and other statements in this release that are not statements of historical fact, including statements about ourbeliefs and expectations, are forward-looking statements and should be evaluated as such. Forward-looking statements include information
concerning possible or assumed future results of operations, including Mobileye’s 2024 full-year guidance, projected future revenue and descriptionsof our business plan and strategies. These statements often include words such as “anticipate,” “expect,” “suggests,” “plan,” “believe,” “intend,”“estimates,” “targets,” “projects,” “should,” “could,” “would,” “may,” “will,” “forecast,” or the negative of these terms, and other similar expressions,although not all forward-looking statements contain these words. We base these forward-looking statements or projections, including Mobileye’s
full-year guidance, on our current expectations, plans and assumptions that we have made in light of our experience in the industry, as well as ourperceptions of historical trends, current conditions, expected future developments and other factors we believe are appropriate under thecircumstances and at such time. You should understand that these statements are not guarantees of performance or results. The forward-looking
statements and projections are subject to and involve risks, uncertainties and assumptions and you should not place undue reliance on these forwardlooking statements or projections. Although we believe that these forward-looking statements and projections are based on reasonable assumptions at
the time they are made, you should be aware that many factors could affect our actual financial results or results of operations and could cause actual
results to differ materially from those expressed in the forward-looking statements and projections.
Important factors that may materially affect such forward-looking statements and projections include the following: future business, social andenvironmental performance, goals and measures; our anticipated growth prospects and trends in markets and industries relevant to our business;business and investment plans; expectations about our ability to maintain or enhance our leadership position in the markets in which we participate;future consumer demand and behavior, including expectations about excess inventory utilization by customers; future products and technology, andthe expected availability and benefits of such products and technology; development of regulatory frameworks for current and future technology;
projected cost and pricing trends; future production capacity and product supply; potential future benefits and competitive advantages associated with
our technologies and architecture and the data we have accumulated; the future purchase, use and availability of products, components and services
supplied by third parties, including third-party IP and manufacturing services; uncertain events or assumptions, including statements relating to ourestimated vehicle production and market opportunity, potential production volumes associated with design wins and other characterizations of future
events or circumstances; effects of the COVID-19 pandemic and responses to future pandemics; adverse conditions in Israel, including as a result of
war and geopolitical conflict, which may affect our operations and may limit our ability to produce and sell our solutions; any disruption in ouroperations by the obligations of our personnel to perform military service as a result of current or future military actions involving Israel; availability,
uses, sufficiency and cost of capital and capital resources, including expected returns to stockholders such as dividends, and the expected timing of
future dividends; tax- and accounting-related expectations.
The estimates included herein are based on projections of future production volumes that were provided by our current and prospective OEMs at thetime of sourcing the design wins for the models related to those design wins. For the purpose of these estimates, we estimated sales prices based on
our management’s estimates for the applicable product bundles and periods. Achieving design wins is not a guarantee of revenue, and our sales may
not correlate with the achievement of additional design wins. Moreover, our pricing estimates are made at the time of a request for quotation by an
OEM (in the case of estimates related to contracted customers), so that worsening market or other conditions between the time of a request for
quotation and an order for our solutions may require us to sell our solutions for a lower price than we initial expected. These estimates may deviate

from actual production volumes and sale prices (which may be higher or lower than the estimates) and the amounts included for prospective but
uncontracted production volumes may never be achieved. Accordingly, these estimations are subject to and involve risks, uncertainties andassumptions and you should not place undue reliance on these forward-looking statements or projections.
Detailed information regarding these and other factors that could affect Mobileye’s business and results is included in Mobileye’s SEC filings, including
the company’s Annual Report on Form 10-K for the year ended December 30, 2023, particularly in the section entitled “Item 1A. Risk Factors”. Copiesof these filings may be obtained by visiting our Investor Relations website at ir.mobileye.com or the SEC’s website at www.sec.gov.
First Quarter 2024 Financial Results
Mobileye Global Inc.
Condensed Consolidated Statements of Operations (unaudited)Three Months Ended
U.S. dollars in millions, except share and per share amounts

March 30, 2024 April 1, 2023

Revenue

$ 239

$ 458

Cost of revenue

185

251

Gross profit

54

207

Research and development, net

243

235

Sales and marketing

34

33

General and administrative

15

20

Total operating expenses

292

288

Operating income (loss)(238

Other financial income (expense), net

17

Income (loss) before income taxes(221

Benefit (provision) for income taxes

3

Net income (loss)

)

(81

)

8
)

(73

)

(6

)

$ (218

)

$ (79

)

$ (0.27)$ (0.10)

Earnings (loss) per share:
Basic and diluted
Weighted-average number of shares used in computation of earnings (loss) per share (in millions):
Basic and diluted

806

Mobileye Global Inc.
Condensed Consolidated Balance sheets (unaudited)
U.S. dollars in millions
AssetsMarch 30, 2024 December 30, 2023

802

Current assets:
Cash and cash equivalents$ 1,223$

1,212

Trade accounts receivable, net

120

357

Inventories

456

391

Other current assets

132

106

Total current assets

1,931

2,066

Property and equipment, net

454

447

Intangible assets, net

1,942

2,053

Goodwill

10,895

10,895

Other long-term assets

120

116

Total non-current assets

13,411

13,511

Non-current assets:

TOTAL ASSETS$ 15,342$

15,577$229

Liabilities and Equity
Current liabilities:
Accounts payable and accrued expenses $ 166
Employee related accrued expenses

91

87

Related party payable

39

39

Other current liabilities

33

48

Total current liabilities

329

403

Long-term employee benefits

57

56

Deferred tax liabilities

142

148

Other long-term liabilities

51

46

Total non-current liabilities

250

250

Non-current liabilities:

TOTAL LIABILITIESTOTAL EQUITY$ 579
14,763$653
14,924

TOTAL LIABILITIES AND EQUITY$ 15,342$

15,577

Mobileye Global Inc.
Condensed Consolidated Cash Flows (unaudited)Three Months Ended
U.S. dollars in millions

March 30, 2024 April 1, 2023

CASH FLOWS FROM OPERATING ACTIVITIESNet income (loss)$ (218

)

$ (79

)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation of property and equipment

14

7

Share-based compensation

62

72

Amortization of intangible assets

111

133

Exchange rate differences on cash and cash equivalents

2

4

Deferred income taxes(6

Interest with related party, net—

16

Decrease (increase) in trade accounts receivable

216

30

Decrease (increase) in other current assets

(25

)

14

Decrease (increase) in inventories

(65

)

(60

Increase (decrease) in accounts payable, accrued expenses and related party payable

(62

)

29

Increase (decrease) in employee-related accrued expenses and long term benefits

5

4Increase (decrease) in other current liabilities

62

Decrease (increase) in other long term assets(2

Increase (decrease) in long-term liabilities

2—

Net cash provided by operating activities

40

171

)

(3

)

Changes in operating assets and liabilities:

)

)

2

CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment

(22

)

(26

)

Net cash used in investing activities

(22

)

(26

)

CASH FLOWS FROM FINANCING ACTIVITIESShare-based compensation recharge

(4

)

(3

)

Net cash used in financing activities

(4

)

(3

)

Effect of foreign exchange rate changes on cash and cash equivalents

(2

)

(4

)

Increase in cash, cash equivalents and restricted cash

12

138

Balance of cash, cash equivalents and restricted cash, at beginning of year

1,226

1,035

Balance of cash, cash equivalents and restricted cash, at end of period$ 1,238$ 1,173

Mobileye Global Inc.
Reconciliation of GAAP Gross Profit and Margin to Non-GAAP Adjusted Gross Profit and Margin3 (unaudited)Three Months Ended
U.S. dollars in millions

March 30, 2024

April 1, 2023

Amount % of Revenue Amount % of Revenue
Gross Profit

$ 54

23

%

$ 207

45

%

Add: Amortization of acquired intangible assets

94

39

%

116

25

%

Add: Share-based compensation expense

—

—

%

1

—

%

$ 148

62

%

$ 324

71

%

Adjusted Gross Profit

3Adjusted gross margin is calculated as adjusted gross profit as a percentage of revenue

Mobileye Global Inc.
Reconciliation of GAAP Operating Income and Margin to Non-GAAP Adjusted Operating Income and Margin4 (unaudited)Three Months Ended
U.S. dollars in millions

March 30, 2024

April 1, 2023

Amount % of Revenue Amount % of Revenue
Operating Income (Loss)$ (238 ) (100%)

$ (81 ) (18%)

Add: Amortization of acquired intangible assets 111

46

%

133

29

%

Add: Share-based compensation expense

26

%

72

16

%

$ (65 ) (27

%)

$ 124

27

%

Adjusted Operating Income (Loss)

62

4Adjusted operating margin is calculated as adjusted operating income as a percentage of revenue

Mobileye Global Inc.
Reconciliation of GAAP Net Income to Non-GAAP Adjusted Net Income (unaudited)Three Months Ended
U.S. dollars in millions

March 30, 2024

April 1, 2023

Amount % of Revenue Amount % of Revenue
Net Income (Loss)$ (218 ) (91%)$ (79 ) (17%)

Add: Amortization of acquired intangible assets 111

46

%

133

29

%

Add: Share-based compensation expense

62

26

%

72

16

%

Less: Income tax effects(10 ) (4%)(11 ) (2%)$ (55 ) (23%)

Adjusted Net Income (Loss)

$ 115

25

%

Supplemental Information - Average System Price (unaudited)
Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024
EyeQ and SuperVision revenue (U.S. dollars in millions) $ 438
Number of systems shipped (in millions)Average system price (U.S. dollars)

$ 430

$ 507

$ 611

$ 219

8.1

8.3

9.4

11.6

3.6

$ 53.9$ 51.7$ 53.8$ 52.7$ 61.0View source version on businesswire.com: https://www.businesswire.com/news/home/20240425742846/en/
Dan Galves
Investor Relations
investors@mobileye.com
Justin HydeMedia Relations
justin.hyde@mobileye.com
Source: Mobileye Global Inc.