Technology

Arbe Robotics Unveils Robust Financial Results Amidst Production Milestones

TEL AVIV, Israel, March 7, 2024 /PRNewswire/ -- Arbe Robotics Ltd. (NASDAQ: ARBE), a trailblazer in Perception Radar Solutions, today unveiled its financial outcomes for the fourth quarter and the comprehensive summary of the year which concluded on December 31, 2023.

Key Q4 and Full-Year 2023 Highlights:

Arbe Robotics achieved significant strides in its operational goals, completing the chipset pre-production phase and nearing the production ramp-up in 2024. Subsequent to this, their Tier 1 partners in China announced the move to mass-produce radar systems infused with Arbe’s chipset technology.

Among the notable achievements was the selection of Arbe's chipset for five pioneering perception projects with leading OEMs, reflecting the company's growing influence in the automotive radar market. Moreover, a prominent Western truck company placed a second order with Arbe, which is seen as a strong indicator of impending full commercial orders.

HiRain Technologies, a prominent Chinese ADAS supplier, is set to commence mass production of cutting-edge 4D Imaging Radars powered by Arbe's chipset by 2024's end. Similarly, Arbe's Tier-1 partner, Sensrad, declared substantial customer orders for its radar systems empowered by the Arbe chipset.

A noteworthy point was that crucial industry players, representing over a 40% market share in the passenger vehicle domain, are currently evaluating Arbe's chipset. Collective radar revenues of these firms are anticipated to surge to $7.5 billion by the end of this decade.

Despite extended decision timelines that eclipsed initial forecasts for the end of 2023, Arbe continued its progressive journey, with positive results expected for the RFQs in 2024.

Arbe took significant steps in the fourth quarter by releasing the production version of its Radar Processor, aimed to be the most robust dedicated automotive radar processing solution available, and announcing the availability of its production intent chipset for mass manufacturing of Perception Radars.

Strategically, Arbe initiated plans for a dual listing on the Tel Aviv Stock Exchange (TASE) to augment trading volume and is concurrently negotiating bond issuances on TASE to secure working capital in anticipation of the production escalation in 2025.

"We are immensely proud of what we achieved in 2023. Our production-ready chipset is now being put through the paces of automotive qualification processes in the lead-up to mass production. Our radar solutions are paving the path toward safer roads and furthering the autonomous driving revolution," stated Kobi Marenko, CEO of Arbe. "Our team has risen to the challenge of market delays and despite the prolonged decision-making periods, the enthusiasm from OEMs about our offerings remains undiminished. We stand on the cusp of announcing significant customer wins this year."

Kobi Marenko also noted that throughout 2023, the Tier-1s partnered with Arbe made substantial gains in system development, preparing them for entering production and commercial stages by 2024. Additionally, Arbe's expansion strategy to target non-automotive sectors is bearing fruit, which will likely result in the expedited adoption of its technology.

Financial Performance in Detail:

Fourth Quarter and Full Year 2023 Financial Highlights

For the fourth quarter of 2023, Arbe reported revenues of $0.35 million, an uptick from $0.15 million in the comparative quarter of 2022. Despite a year-over-year downward trend, the full year revenues of 2023 stood at $1.5 million from the previous $3.5 million. The annual backlog represented $1 million in orders. Q4 2023 saw a gross margin plunge negatively to 54.5% against a negative 45.6% from Q4 2022, adversely affected by low quarterly revenue with a fixed cost portion and partial cost catch-ups from another quarter. The full year 2023 marked a gross margin of negative 2.6% in contrast to the positive 63.5% in 2022.

Operating expenses were reported at $11.9 million for Q4 2023, a drop from $14.0 million in the same period of 2022. For the entire year, these expenses were contained at $46.8 million, substantially lower than the previous year's $50.0 million. Factors such as advanced production stages, finalization of related costs, and labor cost reductions due to favorable exchange rates were amongst the reasons for the decrease.

Net loss for the fourth quarter was reduced to $9.3 million, compared to $11.1 million in the same quarter of 2022. However, the entire year of 2023 recorded a net loss of $43.5 million, somewhat higher than the $40.5 million loss in 2022. Financial income, an important aspect of the financial health of the enterprise, amounted to $3.4 million in 2023, which showed a decline from the $7.2 million of the previous year.

Adjusted EBITDA for the final quarter of 2023 showed an improvement from a loss of ($11.5) million in 2022 to a loss of ($8.2) million. For the whole year, adjusted EBITDA also witnessed enhancement from a loss of ($38.0) million in 2022 to a loss of ($32.5) million in 2023.

Balance Sheet and Liquidity Perspectives:

As of December 31, 2023, Arbe's balance sheet reflected $28.6 million in cash and cash equivalents and $15.4 million in short term bank deposits with zero debt on the books.

Forward-Looking Outlook:

For future endeavors, Arbe aims to achieve 4 design-ins with automakers, as interest in its offerings remains strong despite shifted OEMs decision timelines. The anticipation for revenue in 2024 is set to mirror that of 2023, but with expectant growth in 2025. This prediction is founded on reaching full production in the latter half of 2024 and concentrating on incorporating the chipset into production.

Arbe is devoted to upholding a strong balance sheet while eyeing cost-effectiveness. The projections slate adjusted EBITDA for 2024 to range between ($30) million to ($36) million.

Connect with Arbe Robotics:

To engage further with Arbe's trajectory, the company will be hosting a conference call and webcast on March 7, 2024, at 8:30 am ET. Key speakers will include CEO Kobi Marenko and CFO Karine Pinto-Flomenboim. Interested participants can pre-register for the call here. All details regarding access, replay, and webcast information] are available through the provided links, and an archived webcast will be placed on the Investor Relations site post-event.

Explore more on Arbe's investor relations and upcoming events on their official page at https://ir.arberobotics.com/news/ir-calendar.

For further information regarding Arbe’s forward-looking statements and potential risks that could affect future financial results, please refer to the comprehensive details provided in the full press release and associated official documents.

About Arbe Robotics:

Arbe Robotics is revolutionizing radar technology and setting benchmarks in Perception Radar Solutions. Positioned as a vital component for Level 2+ and higher autonomy, Arbe's radar flaunts unmatched resolution. The enterprise fosters the development of driver-assistance systems and the realization of autonomous driving through its advanced sensor technologies, servicing automakers, Tier-1 suppliers, and a myriad of other applications. Arbe exhibits a commanding presence in the rapidly expanding automotive radar sector with a global footprint that extends from Tel Aviv to China, Germany, and the United States.

For a well-rounded view of Arbe's market presence, caution regarding forward-looking statements, and the complete array of disclosures, including Arbe's Annual Report and prospectuses, the comprehensive content is available for review and insight.

Source: Arbe Robotics

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