Innoviz Technologies Ltd. (NASDAQ:INVZ) Q3 2022 Earnings Conference Call November 9, 2022 9:00 AM ET
Company Participants
Omer Keilaf - Chief Executive Officer
Eldar Cegla - Chief Financial Officer
Conference Call Participants
Mark Delaney - Goldman Sachs
Jared Maymon - Berenberg
Andres Sheppard - Cantor
Samik Chatterjee - JPMorgan
McClain Culver - Rosenblatt Securities
Operator
Please go ahead.
Omer Keilaf
Thank you, Ralph [ph], and welcome to the team. Good morning everyone and thank you for joining us. I am excited to provide another update on the meaningful progress we have been making at Innoviz. This has been another fast-moving quarter with new design wins, new technology partnerships, significant upgrades to our manufacturing throughput and a big step forward in our move into the non-automotive market.
Let’s start things off with a look at our most recent new customer win. After our Volkswagen announcement last quarter, we said that we had two to three additional OEMs that could make a decision in the next six months.
Proving true to our word, we announced in September that we secured yet another production award with a new Asia-based customer. Not only is this our fourth production win and our second win as a Tier 1, it also signals an exciting acceleration in our momentum, delivering back to back production wins just one quarter out.
We will dig a little deeper into our pipeline later in the call, but let’s first take a look at this most recent deal. The new contract is with an Asian OEM who we cannot name yet, but is on a fast track to becoming an emerging global EV leader. There are some very important parts of the deal that I want to touch on.
First and foremost, this is an extremely tech forward OEM. They took a close look at our technology and the platform -- platform partners that we can integrate with and decisively chose our solution over any other competition, and in that process, they also concluded that we are well-positioned as a Tier 1 direct supplier.
Additionally, they are currently targeting a fast ramp-up of LiDAR installation on two models, with a quick turnaround to SOP, with production revenues expected already to begin in 2024. And this deal articulates our long-term strategy extremely well.
Very large deals like the Volkswagen deal we announced last quarter are going to bring the volumes that will rapidly drive our unit cost economics lower, and lower volume deals will bring our higher contribution margins.