Arbe Announces Q2 2024 Financial Results
Key Q2 and Recent Company Highlights:
- Arbe's chipset was selected by one of the top ten OEMs worldwide for the development of its next-generation imaging radar aimed at serial production. The selection of Arbe's technology presents a significant commercial opportunity given its applicability across a wide range of vehicle classes.
- Arbe collaborates with a prominent European truck manufacturer to revolutionize truck safety with Arbe's imaging radar. The manufacturer is set to integrate Arbe's radar into its next-generation sensor suite as part of the transition to an advanced implementation stage.
- Arbe is actively engaged in achieving four design-ins with leading global automakers. Despite longer decision cycles, Arbe expects those decisions in the coming months.
- During the second quarter, Arbe participated in the final stages of OEM RFQ processes along with its Tier 1s: Magna, HiRain, Weifu, and Sensrad.
- The demand for high-channel count solutions is widespread across the board, and Arbe's solution is recognized by leading OEMs as the radar with the largest channel array at the best price per channel.
- Arbe began trading on the Tel Aviv Stock Exchange (TASE) and issued convertible debentures totaling approximately
$30 million to Israeli investors. This strategic move aims to bolster its cash reserves in anticipation of upcoming OEM selections. The proceeds from the debenture offering are held in escrow and will be released upon meeting certain conditions byMarch 31, 2025 .
"We are excited to announce that we have reached a significant milestone with two key customers. The selection of our imaging radar by both a leading OEM and a prominent European truck manufacturer validates our technology and highlights its market appeal. We are in the final stages of RFPs and RFQs with our Tier 1s, and we believe that we are on track to secure additional major OEM selections this year," said
Second Quarter 2024 Financial Highlights
Revenues for Q2 2024 were
Negative gross margin for Q2 2024 was 9.5%, compared to negative gross margin of 1% in Q2 2023, mainly related to headcount increase.
Operating expenses in Q2 2024 were
As a result, our operating loss in Q2 2024 was
Net loss in the second quarter of 2024 decreased to
Adjusted EBITDA, a non-GAAP measurement which excludes expenses for non-cash share-based compensation and for non-recurring items, for Q2 2024, yielded a loss of
Balance Sheet and Liquidity
As of
Outlook
- Our goal of achieving 4 design-ins with automakers remains unchanged, as we observe continued strong interest in our market-leading offering.
- We have strengthened our position in all our RFQ engagements, even though the OEMs have shifted their decision timelines from late 2023 to 2024.
- The 2024 annual revenues are expected to be in line with those of 2023, followed by revenue growth in 2025. These revenue projections are based on our expectation that we will be in full production in the second half of 2024, as well as our decision to exclusively focus on getting our chipset into production.
- We are committed to maintaining a strong and well-managed balance sheet, focusing on cost-effectiveness and the ability to fund our revenue growth. Adjusted EBITDA for 2024 is projected to be in the range of
($30) million to($36) million .
Conference Call & Webcast Details
Arbe will host a conference call and webcast today at
The live call may be accessed via:
International: 1-412-317-1880
A telephonic replay of the conference call will be available until
International: 1-412-317-0088
Access ID: 6889354
A live webcast of the call can be accessed here or from Arbe's Investor Relations website at https://ir.arberobotics.com/news/ir-calendar. An archived webcast of the conference call will also be made available on the website following the call.
Arbe (Nasdaq: ARBE) (TASE: ARBE), a global leader in Perception Radar Solutions, is spearheading a radar revolution, enabling truly safe driver-assist systems today while paving the way to full autonomous-driving. Arbe's radar technology is 100 times more detailed than any other radar on the market and is a critical sensor for L2+ and higher autonomy. The company is empowering automakers, Tier-1 suppliers, autonomous ground vehicles, commercial and industrial vehicles, and a wide array of safety applications with advanced sensing and paradigm changing perception. Arbe, a leader in the fast-growing automotive radar market, is based in
Cautionary Note Regarding Forward-Looking Statements
This press release and the earnings call contains or will contain "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, both as amended by the Private Securities Litigation Reform Act of 1995. contains "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, both as amended by the Private Securities Litigation Reform Act of 1995. The words "expect," "believe," "estimate," "intend," "plan," "anticipate," "may," "should," "strategy," "future," "will," "project," "potential" and similar expressions indicate forward-looking statements. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. These risks and uncertainties include, the effect on the Israeli economy generally and on the Company's business resulting from the terrorism and the hostilities in
Information contained on, or that can be accessed through, the Company's website or any other website or any social media is expressly not incorporated by reference into and is not a part of this press release.
Logo: https://mma.prnewswire.com/media/803813/Arbe_Robotics_Logo.jpg
CONSOLIDATED BALANCE SHEETS |
||||
( |
|
|
|
|
|
|
June 30, 2024 |
|
|
Current Assets: |
|
(Unaudited) |
|
(Unaudited) |
Cash and cash equivalents |
|
8,840 |
|
28,587 |
Restricted cash |
|
280 |
|
163 |
Short term bank deposits |
|
17,683 |
|
15,402 |
Trade receivable |
|
694 |
|
1,258 |
Other assets |
|
30,545 |
|
- |
Prepaid expenses and other receivables |
|
1,954 |
|
2,026 |
Total current assets |
|
59,996 |
|
47,436 |
|
|
|
|
|
Non-Current Assets |
|
|
|
|
Operating lease right-of-use assets |
|
1,895 |
|
1,740 |
Property and equipment, net |
|
1,434 |
|
1,309 |
Total non-current assets |
|
3,329 |
|
3,049 |
|
|
|
|
|
Total assets |
|
63,325 |
|
50,485 |
|
|
|
|
|
Current liabilities: |
|
|
|
|
Trade payables |
|
832 |
|
1,149 |
Operating lease liabilities |
|
519 |
|
436 |
Employees and payroll accruals |
|
3,265 |
|
2,916 |
Convertible debentures |
|
29,982 |
|
- |
Accrued expenses and other payables |
|
1,097 |
|
1,710 |
Total current liabilities |
|
35,695 |
|
6,211 |
|
|
|
|
|
Long term liabilities |
|
|
|
|
Operating lease liabilities |
|
1,512 |
|
1,306 |
Warrant liabilities |
|
607 |
|
875 |
Total long-term liabilities |
|
2,119 |
|
2,181 |
|
|
|
|
|
SHAREHOLDERS' EQUITY: |
|
|
|
|
Ordinary Shares |
|
*) |
|
*) |
Additional paid-in capital |
|
253,702 |
|
245,733 |
Accumulated Deficit |
|
(228,191) |
|
(203,640) |
Total shareholders' equity |
|
25,511 |
|
42,093 |
|
|
|
|
|
Total liabilities and shareholders' equity |
|
63,325 |
|
50,485 |
|
|
|
|
|
*) Represents less than |
|
|
|
|
CONSOLIDATED STATEMENTS OF OPERATIONS |
|
||||||||
( |
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|
|
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|
||||
|
|
|
|
|
|
|
|
|
|
|
|
3 Months Ended |
|
3 Months Ended |
|
6 Months Ended |
|
6 Months Ended |
|
|
|
June 30, 2024 |
|
June 30, 2023 |
|
June 30, 2024 |
|
June 30, 2023 |
|
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
Revenues |
|
409 |
|
289 |
|
546 |
|
644 |
|
Cost of revenues |
|
448 |
|
292 |
|
851 |
|
608 |
|
Gross profit (loss) |
|
(39) |
|
(3) |
|
(305) |
|
36 |
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses: |
|
|
|
|
|
|
|
|
|
Research and development, net |
7,914 |
|
9,091 |
|
17,311 |
|
17,215 |
|
|
Sales and marketing |
|
1,365 |
|
1,478 |
|
2,818 |
|
2,402 |
|
General and administrative |
|
2,296 |
|
2,014 |
|
3,940 |
|
3,644 |
|
Total operating expenses |
|
11,575 |
|
12,583 |
|
24,069 |
|
23,261 |
|
|
|
|
|
|
|
|
|
|
|
Operating loss |
|
(11,614) |
|
(12,586) |
|
(24,374) |
|
(23,225) |
|
|
|
|
|
|
|
|
|
|
|
Financial expenses (income), net |
|
132 |
|
25 |
|
177 |
|
(707) |
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
(11,746) |
|
(12,611) |
|
(24,551) |
|
-22,518 |
|
|
|
|
|
|
|
|
|
|
|
Basic net loss per ordinary share |
|
(0.15) |
|
(0.19) |
|
(0.31) |
|
(0.34) |
|
|
|
|
|
|
|
|
|
|
|
Weighted-average number of |
|
80,578,820 |
|
67,762,711 |
|
79,377,515 |
|
66,225,739 |
|
|
|
|
|
|
|
|
|
|
|
Diluted net loss per ordinary share |
|
(0.19) |
|
(0.23) |
|
(0.39) |
|
(0.39) |
|
|
|
|
|
|
|
|
|
|
|
Weighted-average number of |
|
64,204,137 |
|
56,450,209 |
|
63,390,411 |
|
58,419,059 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|
||||||||
( |
|
|
|
|
|
|
|
|
|
|
|
3 Months Ended |
|
3 Months Ended |
|
6 Months Ended |
|
6 Months Ended |
|
|
|
June 30, 2024 |
|
June 30, 2023 |
|
June 30, 2024 |
|
June 30, 2023 |
|
Cash flows from operating activities: |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
Net Loss |
|
(11,746) |
|
(12,611) |
|
(24,551) |
|
(22,518) |
|
|
|
|
|
|
|
|
|
|
|
Adjustments to reconcile loss to net cash used in operating activities: |
|
|
|
|
|
|
|
|
|
Depreciation |
|
147 |
|
139 |
|
289 |
|
276 |
|
Stock-based compensation |
|
3,587 |
|
3,713 |
|
7,313 |
|
5,721 |
|
Warrants to service providers |
|
286 |
|
157 |
|
634 |
|
254 |
|
Revaluation of warrants and accretion |
|
(157) |
|
(369) |
|
(268) |
|
(238) |
|
Convertible debentures accretion |
|
176 |
|
- |
|
176 |
|
- |
|
Change in operating assets and liabilities: |
|
|
|
|
|
|
|
|
|
Decrease in trade receivable |
|
162 |
|
48 |
|
564 |
|
162 |
|
Decrease in prepaid expenses and other receivables |
|
245 |
|
330 |
|
72 |
|
504 |
|
Increase in other assets |
|
(128) |
|
- |
|
(128) |
|
- |
|
Operating lease ROU assets and liabilities, net |
|
6 |
|
(8) |
|
135 |
|
- |
|
Decrease in trade payables |
|
(1,039) |
|
(1,116) |
|
(506) |
|
(284) |
|
Increase (decrease) in employees and payroll accruals |
|
204 |
|
43 |
|
349 |
|
(550) |
|
Decrease in accrued expenses and other payables |
|
(72) |
|
(499) |
|
(766) |
|
(3,706) |
|
|
|
|
|
|
|
|
|
|
|
Net cash used in operating activities |
|
(8,328) |
|
(10,173) |
|
(16,687) |
|
(20,379) |
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
Change in bank deposits |
|
12,621 |
|
(25,602) |
|
(2,281) |
|
(25,202) |
|
Purchase of property and equipment |
|
(126) |
|
(87) |
|
(225) |
|
(119) |
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) investing activities |
|
12,494 |
|
(25,689) |
|
(2,506) |
|
(25,321) |
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
Proceeds from issuance of ordinary shares, net of issuance costs |
|
- |
|
22,496 |
|
- |
|
22,496 |
|
Issuance costs related to convertible debentures |
|
(459) |
|
- |
|
(459) |
|
- |
|
Proceeds from exercise of options |
|
22 |
|
46 |
|
22 |
|
606 |
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) |
|
(437) |
|
22,542 |
|
(437) |
|
23,102 |
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate fluctuations on cash and cash equivalent |
|
80 |
|
(574) |
|
214 |
|
(66) |
|
|
|
|
|
|
|
|
|
|
|
Increase (decrease) in cash, cash equivalents and restricted cash |
|
3,650 |
|
(12,746) |
|
(19,844) |
|
(22,532) |
|
Cash, cash equivalents and restricted cash at the beginning of period |
|
5,391 |
|
45,037 |
|
28,750 |
|
54,315 |
|
|
|
|
|
|
|
|
|
|
|
Cash, cash equivalents and restricted cash at the end of period |
|
9,120 |
|
31,717 |
|
9,120 |
|
31,717 |
|
RECONCILIATION OF GAAP NET LOSS TO NON-GAAP NET LOSS |
|
||||||||
( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Months Ended |
|
3 Months Ended |
|
6 Months Ended |
|
6 Months Ended |
|
|
|
June 30, 2024 |
|
June 30, 2023 |
|
June 30, 2024 |
|
June 30, 2023 |
|
GAAP net loss attributable to ordinary shareholders |
|
(11,746) |
|
(12,611) |
|
(24,551) |
|
(22,518) |
|
|
|
|
|
|
|
|
|
|
|
Add: |
|
|
|
|
|
|
|
|
|
Stock-based compensation |
|
3,587 |
|
3,713 |
|
7,313 |
|
5,721 |
|
Warrants to service providers |
|
286 |
|
157 |
|
634 |
|
254 |
|
Revaluation of warrants and accretion |
|
(157) |
|
(369) |
|
(268) |
|
(238) |
|
Convertible debentures accretion |
|
176 |
|
- |
|
176 |
|
- |
|
Non-recurring expenses related to convertible debentures and ATM |
805 |
|
214 |
|
805 |
|
214 |
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net loss |
|
(7,048) |
|
(8,896) |
|
(15,890) |
|
(16,567) |
|
|
|
|
|
|
|
|
|
|
|
Basic Non-GAAP net loss per ordinary share |
|
(0.09) |
|
(0.13) |
|
(0.20) |
|
(0.25) |
|
|
|
|
|
|
|
|
|
|
|
Weighted-average number of shares used in computing basic |
|
80,578,820 |
|
67,762,711 |
|
79,377,515 |
|
66,225,739 |
|
|
|
|
|
|
|
|
|
|
|
Diluted Non-GAAP net loss per ordinary share |
|
(0.09) |
|
(0.16) |
|
(0.14) |
|
(0.29) |
|
|
|
|
|
|
|
|
|
|
|
Weighted-average number of shares used in computing diluted |
|
64,204,137 |
|
56,450,209 |
|
63,390,411 |
|
58,419,059 |
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF GAAP NET LOSS TO ADJUSTED EBITDA |
|
||||||||
( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Months Ended |
|
3 Months Ended |
|
6 Months Ended |
|
6 Months Ended |
|
|
|
June 30, 2024 |
|
June 30, 2023 |
|
June 30, 2024 |
|
June 30, 2023 |
|
GAAP net loss attributable to ordinary shareholders |
|
(11,746) |
|
(12,611) |
|
(24,551) |
|
(22,518) |
|
|
|
|
|
|
|
|
|
|
|
Add: |
|
|
|
|
|
|
|
|
|
Financial expenses (income), net |
|
132 |
|
25 |
|
177 |
|
(707) |
|
Depreciation |
|
147 |
|
139 |
|
289 |
|
276 |
|
Stock-based compensation |
|
3,587 |
|
3,713 |
|
7,313 |
|
5,721 |
|
Warrants to service providers |
|
286 |
|
157 |
|
634 |
|
254 |
|
Non-recurring expenses related to ATM |
|
68 |
|
214 |
|
68 |
|
214 |
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
(7,526) |
|
(8,363) |
|
(16,070) |
|
(16,760) |
|
|
|
|
|
|
|
|
|
|
|
View original content:https://www.prnewswire.com/news-releases/arbe-announces-q2-2024-financial-results-302215349.html
SOURCE Arbe