[Management View]
Innoviz Technologies reported a 46% YoY increase in Q2 2025 revenue, reaching $9.7 million, driven by LiDAR unit sales and NRE bookings. The company surpassed its total 2024 revenue in the first half of 2025, with $27.1 million. Management reaffirmed full-year revenue guidance of $50-$60 million and increased NRE booking guidance to $30-$60 million.

[Outlook]
Innoviz plans to maintain expense controls and strengthen its balance sheet while targeting new design wins in automotive and industrial sectors. The company anticipates a significant ramp in LiDAR unit shipments in Q3 2025, with commercial revenue expected to reach new highs.

[Financial Performance]
Q2 2025 revenue was $9.7 million, a 46% increase YoY. Cash burn reduced to $7.3 million from $20.7 million in Q1 2025. Operating expenses decreased by 20% YoY to $18.5 million. Gross margin was approximately 16% for the first half of 2025.

[Q&A Highlights]
1. Question: What would it take for the development program with the top five auto OEM to become a series production win, and when will you know?
Answer: The SOP is in 2027, and work has already begun. The company is finalizing contract details and hopes to conclude soon.

2. Question: If the development program becomes a series production award, what might the annual volumes look like, and will LiDAR be standard or optional?
Answer: The OEM is one of the top five, with high volumes. The first line is expected to be a standard fit, with potential expansion to other programs.

3. Question: How quickly does Innoviz plan to use the $75 million ATM, and how much might be raised this year?
Answer: The ATM will be used opportunistically to buffer NRE payment variability, with a focus on minimizing cash burn and increasing LiDAR sales.

4. Question: What's different about the development work agreement with the OEM in terms of process or timeline?
Answer: The agreement is beyond the RFI and RFQ stages, with design changes already underway due to OEM's timeline needs, similar to past experiences with Volkswagen.

5. Question: Does the acceleration of robotaxi deployments benefit L3 timelines?
Answer: Autonomy is gaining interest, with L3 and L4 programs progressing independently. The company is involved in both, targeting SOP in 2027.

6. Question: Can Innoviz tune LiDAR for industrial applications, or will multiple SKUs be needed?
Answer: Innoviz Smart is the same LiDAR used in automotive, with an add-on for industrial applications. It meets functional safety standards, offering a competitive advantage.

7. Question: How does Innoviz select customers and manage engineering resources?
Answer: The focus is 95% on automotive, with excess capacity used for non-automotive markets. The company leverages partnerships for seamless integration.

8. Question: Will non-automotive pricing and margins differ from automotive sales?
Answer: Non-automotive ASPs and margins are significantly higher, offering a rewarding market without the need for discounts.

[Sentiment Analysis]
Analysts showed optimism about Innoviz's strategic partnerships and revenue growth. Management conveyed confidence in meeting financial targets and expanding market presence.

[Quarterly Comparison]
| Metric | Q2 2025 | Q2 2024 |
|-------------------------|---------|---------|
| Revenue | $9.7M | N/A |
| Cash Burn | $7.3M | N/A |
| Operating Expenses | $18.5M | $23.3M |
| Gross Margin | 16% | N/A |

[Risks and Concerns]
Potential risks include variability in NRE payments and the need to secure additional design wins to sustain growth. The company must manage cash burn effectively while scaling production.

[Final Takeaway]
Innoviz Technologies demonstrated strong financial performance in Q2 2025, with record revenue and reduced cash burn. Strategic partnerships with top automotive OEMs and expansion into non-automotive markets position the company for continued growth. The launch of Innoviz Smart and increased LiDAR shipments are expected to drive future revenue, while the ATM program supports liquidity management. Management remains focused on achieving financial targets and expanding its market presence in the LiDAR industry.