What’s Happening: Mobileye Global Inc. has unveiled its Q1 2023 financial results, demonstrating a robust performance with a 16% revenue growth. The company’s EyeQ® and SuperVision business lines outperformed global auto production growth, generating an operating cash flow of $171 million.
Why It Matters: The growth reported by Mobileye is indicative of the company’s solid position in the auto industry. The financial results highlight the continuous traction of the firm’s advanced product portfolio, with multiple SuperVision and Chauffeur programs nearing design win completion with global automakers.
The Q4 2023 launch of Polestar 4, a SuperVision project, is expected to boost customer and regional diversification. Despite the reduction in 2023 SuperVision shipment forecast due to decreasing EV demand in China, Mobileye remains confident about the portfolio’s potential to accelerate growth.
- Business development activity remains robust, with the company’s 2023 design win opportunities pipeline expected to surpass the $6.7 billion in projected future revenue from 2022 design wins.
- The company anticipates meaningful ramp-up of cloud-enhanced ADAS volumes, which will drive significant recurring software licensing revenue.
- SuperVision launches are on-track, supporting diversification and continued growth in Mobileye’s Average System Price.
- SuperVision and Chauffeur continue to attract interest from global OEMs, with activities progressing well.
- The company is focusing on collaborations to develop purpose-built vehicle platforms that integrate Mobileye’s self-driving system at the OEMs factory.
- Revenue of $458 million increased 16% compared to Q1 2022.
- Average System Price was $53.9 in Q1 2023 compared to $51.0 in the prior year period.
- Gross Margin in Q1 2023 was largely consistent with the prior year period.
- Adjusted Gross Margin declined by nearly 6 percentage points in Q1 2023 compared to the prior year period.
- Operating Margin declined by approximately 6 percentage points in Q1 2023 compared to the prior year period.
- Adjusted Operating Margin declined by approximately 9 percentage points in Q1 2023 compared to the prior year period.
- Operating cash flow for the three months ended April 1, 2023 was $171 million.
Mobileye’s Q1 performance underscores the company’s resilience and growth potential in the auto industry, despite temporary headwinds in the Chinese EV market. This robustness, coupled with strategic investments in product innovation and strong industry partnerships, positions Mobileye for continued success.