Mobileye Global Inc. (NASDAQ:MBLY) Q2 2023 Earnings Call Transcript

Mark Delaney: Okay. That is helpful. Thanks. And I was hoping you could also share a little bit more of an update on the progress you are making in developing your own Radar and LiDAR sensors answers, as I believe they could be helpful in supporting your opportunity with both the Chauffeur offering as well as Mobileye drive? Thank you.

Amnon Shashua: So the imaging radars, we are on-track for end of 2024 SOP. We are already been interacting and gauging with a Tier 1 partner to work together on offering the radar to the market. And it is on-track for end of 2024. The FMCW LiDAR is on-track for second generation LiDARs around 2027, 2028 timeframe, where we feel that first generation autonomous vehicles would be served with time of flight, the LiDARs, and second generation with the FMCW.

Dan Galves: Thank you Mark. We will take the next question please, Priscilla.

Operator: Our next question comes from Shreyas Patil with Wolfe Research. Please go ahead.

Shreyas Patil: Hey, thanks so much for taking my question. Maybe first just thinking about the how to think about the revenue or potential margin upside that you could see from ZEEKR as they are now unlocking some of these more advanced features? And is that something that we would be seeing more into 2024, potentially or could we see some of that even in the back half of this year?

Amnon Shashua: I think that potential we will see in 2024 because the NOP feature powered by REM is for the first six months is going to be offered for free to all the ZEEKR customers, and then we will start seeing revenue based on a certain traction, we will see revenue. And so that should kick in 2024. So we are talking about 100 of dollars per vehicle potential in 2024.

Shreyas Patil: Okay. Understood. And then I’m not sure if this is relevant. So feel free to dismiss, if I’m off base on this. But does the current political situation in Israel have any implications for you from a business perspective?

Amnon Shashua: It is creating the distress. It is creating a personal distress, and I think also most of Mobileye, not all of Mobileye employees are kind of experiencing this kind of distress. But now when you look at the Mobileye employees, are all professionals. We haven’t seen any effect on efficiency and productivity in the past few months. We are not manufacturing anything in Israel. Israel is not the source of revenue for Mobileye. So we don’t see any material impact for the political upheaval that is going on in Israel.

Shreyas Patil: And just maybe just a quick modeling one, just how do you think about the benefit of the engineering reimbursements that you mentioned in the second half? And what’s driving that increase? Is it from the drive business or is it also from SuperVision or the base ADAS?

Moran Shemesh Rojansky: Yes. So it is basically coming from base ADAS. So we have an, in our programs, we have NRE reimbursement. That is for most of our programs, and sometimes these are things we cannot expect at the beginning of the year, so we might get additional benefits on these reimbursement. But it mainly relates to ADAS reimbursement for this year for 2023.

Amnon Shashua: Yes. And I think that there was one smaller item related to Mobileye drive that we are expecting now as well.

Operator: Our next question comes from George Gianarikas with Canaccord Genuity. Please go ahead.

George Gianarikas: So you characterized a couple times in the script about not seeing, competition in many of the discussions you are having with OEMs. I’m wondering if you just kind of take a step back and help us understand your view of the competitive landscape, not relative to Tesla, FSD, but more to some of the other internal OEM efforts and some of the point solutions in the marketplace, and how you see the market evolving over the next 12, 24, 36-months? Thank you.