Autonomous driving technology powerhouse Mobileye Global (MBLY -1.42%) disclosed its financial results for Q1 2024 on Thursday, April 25, which revealed its revenue of $239 million fell 48% year over year, but it still exceeded analyst expectations. The downturn is primarily due to a substantial inventory drawdown by Tier 1 customers.
Mobileye's adjusted EPS loss of $0.07 slightly missed analysts' expectations of a $0.06 loss and was a letdown from 2023's Q1 EPS of $0.14. Its GAAP EPS loss of $0.27 was also far worse than in 2023.
The disappointing quarter results outline the challenging dynamics that Mobileye faced in the quarter despite some strategic advancements.
| Metric | Q1 2024 | Analyst Estimates | Q1 2023 | Change (YOY) |
|---|---|---|---|---|
| Revenue | $239 million | $230.9 million | $458 million | (48%) |
| Adjusted EPS | ($0.07) | ($0.06) | $0.14 | N/A |
| GAAP EPS | ($0.27) | N/A | ($0.10) | N/A |
| Gross Margin | 23% | N/A | 45% | (22 pps) |
| Net Income (Loss) | ($218 million) | N/A | ($79 million) | N/A |
Analyst source: FactSet. YOY = Year over year. GAAP = Generally accepted accounting principles. pps = percentage points.
Understanding Mobileye
Israel-based Mobileye stands at the forefront of transforming automotive safety and mobility through advanced driver assistance systems (ADAS) and autonomous driving technologies. Its prowess in developing cutting-edge technologies like the EyeQ family of System-on-Chips (SoCs) positions it as a critical player in the evolving automotive landscape. A crucial aspect of Mobileye's recent efforts is its strategic direction toward enriching its core ADAS offerings and expanding its technological footprint with innovative products like the EyeQ6L SoC.
The company's steadfast focus on leveraging growth opportunities amid the operational challenges of Q1 2024 speaks volumes about its resilience. The receipt of a substantial production award from the Volkswagen Group (and its potential to create future financial rewards) showcases both industry confidence in its technological capabilities and the broadening of its market impact.
What happened this quarter
In a quarter challenged by significant revenue dips and earnings misses, Mobileye's strategic initiatives offer a counter-narrative of progress and potential. Despite a downturn in financial metrics, the company's highlight was the introduction and success of the EyeQ6L chip, which promises to enhance its lucrative ADAS solutions. Additionally, the expanded partnership with Volkswagen underscores Mobileye's capacity to secure key industry alliances, ensuring a sustained influence in the autonomous driving domain.
Mobileye's net income loss of $218 million in Q1 was far bigger than analyst estimates. The company's gross margin was 23% for Q1 2024, a substantial decrease from 45% margins a year earlier. Operating income came in at a loss of $238 million, far worse than the operating loss of $81 million in the previous year. Mobileye reported an adjusted operating loss of $65 million, contrasting sharply with an adjusted operating income of $124 million in Q1 2023.
The quarter also sheds light on Mobileye's investment in its future through the EyeQ6L SoC's development and the poignant focus on expanding its ADAS and autonomous driving solution pipeline. This strategic depth, combined with a pragmatic approach toward overcoming current financial hurdles, delineates Mobileye's broader vision of leadership in the autonomous mobility sector.
Looking ahead
Mobileye's management maintains an optimistic stance toward the fiscal year ahead. The company's unchanged financial guidance for 2024, projecting full-year revenue between $1.83 billion to $1.96 billion, encapsulates this optimism. Mobileye's focus remains on transcending the temporary challenges of Q1, leveraging its strategic, technological, and operational capacities for growth. Investors and industry observers are encouraged to watch for Mobileye's advancements in product development, strategic partnerships, and market penetration efforts.
