Mobileye Global (MBLY) Q4 2022 Earnings Call Transcript

For the period ending December 31, 2022

January 26, 2023 8:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Greetings. Welcome to the Mobileye Q4 2022 Business Update. [Operator Instructions] Please note this conference is being recorded.

I'll now turn the conference over to your host, Dan Galves. You may begin.

Dan Galves

Hello, everyone, and welcome to Mobileye's fourth quarter and full year earnings conference call for the period ending December 31, 2022. As a matter of formality, please note that today's discussion contains forward-looking statements based on the business environment as we currently see it. Such statements involve risks and uncertainties. Please refer to the accompanying press release, which includes additional information on the specific risk factors that could cause actual results to differ materially. Additionally, on this call, we will refer to both GAAP and non-GAAP figures. A reconciliation of GAAP to non-GAAP financial measures is provided in our posted earnings release.

Joining us on the call today are Prof. Amnon Shashua, Mobileye's CEO and President; and Anat Heller, Mobileye's CFO.

Thanks. And now I'll turn the call over to Amnon.

Amnon Shashua

Thank you, Dan. Hello, everyone, and thank you for joining our earning call.

2022 was a really important year for Mobileye. We executed a successful IPO at a time when this was only possible for very unique companies. I see many benefits to being public again, but most important is we have already seen a big increase in visibility of Mobileye from our customers and partners, driven by more focus and attention by the broader media and analyst. This drives incremental business opportunities by amplifying attention on our advanced solutions and we think this plays into the incremental momentum we are experiencing.

Financial results in 2022 were clearly very good. Revenue grew up by 35%, adjusted operating profit grew by 25% and we generated almost $550 million of operating cash flow. More important than those headlines is that the source of our growth started to shift from pure volume to a combination of volume and higher content per vehicle. Our advanced products carry a much higher price per vehicle than our historical products, and we saw a clear evidence of that in 2022, where one-third of our revenue growth came from higher ASPs.

In terms of future business generation, 2022 was a record year. Just in that year alone, we generated new business representing $6.7 billion of estimated future revenue at about $105 per unit on a content per car blended basis. This is about 3.5 times our actual revenue in 2022 and double our current ASP.