Mobileye Global Inc. (NASDAQ:MBLY) Q2 2023 Results Conference Call July 27, 2023 8:00 AM ET

Company Participants

Dan Galves - Chief Communications Officer

Amnon Shashua - President and Chief Executive Officer

Moran Shemesh Rojansky - Acting Chief Financial Officer

Conference Call Participants

Aaron Rakers - Wells Fargo

Chris McNally - Evercore

Joshua Buchalter - TD Cowen

Mark Delaney - Goldman Sachs

Shreyas Patil - Wolfe Research

George Gianarikas - Canaccord Genuity

Itay Michaeli - Citi

Ananda Baruah - Loop Capital Markets

Ben Levy - Barclay

Adam Jonas - Morgan Stanley

Operator

Greetings and welcome to the Mobileye Second Quarter 2023 Earnings Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

It is not my pleasure to introduce your host, Dan Galves, Chief Communications Officer. Please, you may begin.

Dan Galves

Hello, and welcome to Mobileye’s second quarter 2023 earnings conference call for the periods ending July 1, 2023. 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 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 Moran Shemesh Rojansky, Mobileye’s Acting CFO.

Thanks. And now I will turn the call over to Amnon.

Amnon Shashua

Hello, everyone, and thanks for joining our earnings call. On the revenue side, the quarter was in-line to better than our expectation. Customers were very cautious in the first half of 2023, which led to below normal growth but we have seen the production schedule solidify for the second half of the year, where we expect to grow 16% year-over-year on much higher volumes than the first half.

Profitability was better-than-expected with adjusted operating margin of 31%, up four points versus Q1. At the midpoint of our updated guidance, adjusted operating margin for 2023 is 29.5%, nearly three points higher than our original guidance back in January.

The good news on the cost side is a combination of macro factors, negotiation and customers on engineering, reimbursement, and results of a continual refinement of our spending plans in order to heighten efficiency and optimize returns.