Valens Semiconductor Ltd (NYSE:VLN) Q4 2022 Earnings Conference Call March 1, 2023 8:30 AM ET

Company Participants

Daphna Golden - VP of IR

Gideon Ben-Zvi - CEO

Dror Heldenberg - CFO

Conference Call Participants

Suji Desilva - ROTH Capital

Vivek Arya – Bank of America

Brian Dobson - Chardan Capital Markets

Operator

Good morning. My name is Yoni, and I will be your conference operator today. At this time, I would like to welcome everyone to Valens Semiconductor's Fourth Quarter and Full Year 2022 Earnings Conference Call and Webcast. [Operator Instructions] I will now turn the call over to Daphna Golden, Vice President of Investor Relations for Valens Semiconductor. Please go ahead.

Daphna Golden

Thank you, and welcome everyone to Valens Semiconductor's Fourth Quarter and Full Year 2022 Earnings Call. With me today are Gideon Ben-Zvi, Chief Executive Officer; and Dror Heldenberg, Chief Financial Officer. Earlier today, we issued a press release that is available on the Investor Relations section of our website under investors.valens.com. As a reminder, today's earnings call may include forward-looking statements and projections, which do not guarantee future events or performance. These statements are subject to the safe harbor language in today's press release. Please refer to our annual report on Form 20-F filed today with the SEC for a discussion of the factors that could cause actual results to differ materially from those expressed or implied. We do not undertake any duty to revise or update such statements to reflect new information, subsequent events or changes in strategy. We will be discussing certain non-GAAP measures on this call, which we believe are relevant in assessing the financial performance of the business, and you can find reconciliations of these metrics within our earnings release. In the coming weeks, we will be in California and in Europe for investor conferences and meetings. If you're interested in meeting with us, please e-mail me at investors@valens.com. With that, I will now turn the call over to Gideon.

Gideon Ben-Zvi

Thanks Daphna, and thank you, everyone, for joining our call. 2022 was a year of many successes for Valens Semiconductor. In 2022, Valens semiconductor continued to strengthen its leadership position in the audio-video market and focused on increasing its share also in the automotive space. A record number of Valens Semiconductor audio-video and automotive chipsets were sold for use in diversified business activities that support people’s daily lives. We accomplished record revenues of $90.7 million, driven mainly by greater-than-expected revenues in audio-video and we doubled our annual automotive sales. We also achieved better-than-anticipated gross margin and adjusted EBITDA and are well on the way to achieve an important milestone of adjusted EBITDA breakeven by the end of this year 2023. Looking at the most recent quarter Q4 2022, the trend of growth continued, and our revenues reached a record of $23.5 million, up 13% from Q4 2021. We also achieved better-than-anticipated profitability metrics. We believe Valens Semiconductor is well positioned to address the near and long-term opportunities in the markets that we serve for four reasons.