AEye Reports Third Quarter 2023 Results

Published

Provides Update on Automotive-First Strategy

Significant Reduction in Burn Rate Extending Cash Runway out to 2025

DUBLIN, Calif.--(BUSINESS WIRE)-- AEye, Inc. (Nasdaq: LIDR), a global leader in adaptive, high performance lidar solutions, today announced its results for the third quarter ended September 30, 2023.

Management Commentary

“Market conditions are evolving, and we believe the lidar market has shifted from a ‘battle for the best technology’ to a ‘battle for the best path to commercialization.’ We’ve been relentlessly focused on ensuring AEye enters the automotive market with a differentiated and superior product, so we are ready for the transition,” said Matt Fisch, AEye CEO. “We have recently taken decisive steps to optimize our operating and cost structure around our automotive-first strategy and are well positioned with the right technology, business model and resources to deliver sustained growth and success over the long-term.”

Key Q3 2023 Financial Highlights

“During the quarter, we achieved our goal of reducing our cash burn by 50% since the beginning of the year, one quarter sooner than anticipated. We have now aligned our expenses with our automotive-first strategy and have extended our cash runway into 2025. We closed the quarter with a healthy balance sheet, including $45.9 million of cash, and will continue to manage expenses carefully,” said Conor Tierney, AEye CFO. “The continued cost reduction initiatives in the third quarter were the main driver for meeting our GAAP EPS net loss guidance and beating our non-GAAP EPS net loss guidance by one cent.”

  • Revenue of $0.2 million in the third quarter of 2023.
  • GAAP net loss was $(17.0) million, or $(0.09) per share, based on 184.1 million weighted average common shares outstanding.
  • Non-GAAP net loss was $(9.5) million, or $(0.05) per share, based on 184.1 million weighted average common shares outstanding.
  • Cash, cash equivalents, and marketable securities were $45.9 million as of September 30, 2023.

Conference Call and Webcast Details

AEye management will hold a conference call today, November 9, 2023, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) to discuss these results. AEye CEO Matt Fisch and CFO Conor Tierney will host the call, followed by a question-and-answer session.

The webcast and accompanying slides will be accessible via the company’s website at https://investors.aeye.ai/.

Access is also available via:

Conference call: https://bit.ly/AEyeconferencecall

Webcast: https://bit.ly/AEyewebcast

About AEye

AEye’s unique software-defined lidar solution enables advanced driver-assistance, vehicle autonomy, smart infrastructure, and logistics applications that save lives and propel the future of transportation and mobility. AEye’s 4Sight™ Intelligent Sensing Platform, with its adaptive sensor-based operating system, focuses on what matters most: delivering faster, more accurate, and reliable information. AEye’s 4Sight™ products, built on this platform, are ideal for dynamic applications which require precise measurement imaging to ensure safety and performance. AEye has a global presence through its offices in Germany, Korea, and the United States.

Non-GAAP Financial Measures

The non-GAAP measures provided in this press release should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with generally accepted accounting principles (GAAP) in the United States. A reconciliation between GAAP and non-GAAP financial data is included in the supplemental financial data attached to this press release. Non-GAAP financial measures do not have any standardized meaning and are therefore unlikely to be comparable to similarly titled measures presented by other companies. AEye considers these non-GAAP financial measures to be important because they provide additional insight into the Company’s on-going performance. The Company provides this information to investors for a more consistent basis of comparison and to help investors evaluate the results of the Company’s on-going operations, and to help enable more meaningful period-to-period comparisons. Non-GAAP financial measures are presented only as supplemental information for the purpose of understanding the Company’s operating results. The non-GAAP financial measures should not be considered a substitute for financial information presented in accordance with GAAP.

This press release includes non-GAAP financial measures, including:

  • Non-GAAP net loss which is defined as GAAP net loss plus stock-based compensation, plus expenses related to the registration statements on Forms S-1s and S-3s, plus expenses related to the Common Stock Purchase Agreement, less change in fair value of convertible note and warrant liabilities, plus realized loss on instrument-specific credit risk, plus one-time termination benefits and restructuring costs, plus non-routine write-down of inventory, plus impairment of ROU assets, plus stock issuance costs, plus debt issuance costs; and
  • Adjusted EBITDA which is defined as non-GAAP net loss plus depreciation and amortization expense, plus interest expense and other, less interest income and other, plus provision for income tax expense.

Forward-Looking Statements

Certain statements included in this press release that are not historical facts are forward-looking statements within the meaning of the federal securities laws, including the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements are sometimes accompanied by words such as “believe,” “continue,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “predict,” “plan,” “may,” “should,” “will,” “would,” “potential,” “seem,” “seek,” “outlook,” and similar expressions that predict or indicate future events or trends, or that are not statements of historical matters. Forward-looking statements are predictions, projections, and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Forward looking statements included in this press release include statements about the adaptability, benefits, and features of AEye’s products, the competitive advantages of AEye’s business model, as well as the use of lidar in automobiles generally, among others. These statements are based on various assumptions, whether or not identified in this press release. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as and must not be relied on by an investor as a guarantee, an assurance, a prediction, or a definitive statement of fact or probability. Actual events and circumstances are very difficult or impossible to predict and will differ from the assumptions. Many actual events and circumstances are beyond the control of AEye. Many factors could cause actual future events to differ from the forward-looking statements in this press release, including but not limited to: (i) the risks that AEye’s 4Sight Intelligent Sensing Platform’s software-definable lidar may not enhance advanced driver assistance systems (ADAS) capabilities, enable next gen safety features, nor enable software revenue opportunities as anticipated, or at all; (ii) the risks that the 4Sight reference designs may not be differentiated technically by their range, resolution, reliability, and reconfigurability to the extent anticipated, or at all; (iii) the risk that the licenses to Tier 1 automotive suppliers may not result in high volume manufacturing in the time frame anticipated, or at all; (iv) the risks that the automotive industry may not rely on software architectures as anticipated, or at all; (v) the risks that AEye’s 4Sight Intelligent Sensing Platform may not reduce time-to-market for new features, allow OEMs to continuously improve upon or introduce features and functionality across all vehicle models through software upgrades, or allow OEMs to deliver a future-proofed ADAS roadmap as anticipated, or at all; (vi) the risks that lidar adoption occurs slower than anticipated or fails to occur at all; (vii) the risks that AEye’s products may not meet the diverse range of performance and functional requirements of target markets and customers; (viii) the risks that AEye’s products may not function as anticipated by AEye, or by target markets and customers; (ix) the risks that AEye may not be in a position to adequately or timely address either the near or long-term opportunities that may or may not exist in the evolving autonomous transportation industry; (x) the risks that laws and regulations are adopted impacting the use of lidar that AEye is unable to comply with, in whole or in part; (xi) the risks associated with changes in competitive and regulated industries in which AEye operates, variations in operating performance across competitors, and changes in laws and regulations affecting AEye’s business; (xii) the risks that AEye is unable to adequately implement its business plans, forecasts, and other expectations, and identify and realize additional opportunities; and (xiii) the risks of downturns and a changing regulatory landscape in the highly competitive and evolving industry in which AEye operates. These risks and uncertainties may be amplified by the lingering effects of the COVID-19 pandemic, which continues to cause significant economic uncertainty. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described in the “Risk Factors” section of the periodic report that AEye has most recently filed with the U.S. Securities and Exchange Commission, or the SEC, and other documents filed by us or that will be filed by us from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made.

Readers are cautioned not to put undue reliance on forward-looking statements; AEye assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. AEye gives no assurance that AEye will achieve any of its expectations.

 
AEYE, INC.Consolidated Balance Sheets(In thousands)(Unaudited)
September 30, 2023 December 31, 2022
 
ASSETS
Current Assets:
Cash and cash equivalents $

37,149

 

$

19,064

 

Marketable securities

8,743

 

75,135

 

Accounts receivable, net

238

 

617

 

Inventories, net

4,868

 

4,553

 

Prepaid and other current assets

4,509

 

6,181

 

Total current assets

55,507

 

105,550

 

Right-of-use assets

14,397

 

15,502

 

Property and equipment, net

7,787

 

7,665

 

Restricted cash

2,150

 

2,150

 

Other noncurrent assets

1,040

 

2,473

 

Total assets $

80,881

 

$

133,340

 

 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable $

4,707

 

$

3,218

 

Accrued expenses and other current liabilities

7,247

 

9,764

 

Contract liabilities

18

 

987

 

Convertible notes

 

8,594

 

Total current liabilities

11,972

 

22,563

 

Operating lease liabilities, noncurrent

15,484

 

16,681

 

Other noncurrent liabilities

82

 

126

 

Total liabilities

27,538

 

39,370

 

Stockholders' Equity:
Preferred stock

 

 

Common stock

19

 

16

 

Additional paid-in capital

363,176

 

345,742

 

Accumulated other comprehensive income (loss)

1

 

(1,279

)

Accumulated deficit

(309,853

)

(250,509

)

Total stockholders’ equity

53,343

 

93,970

 

Total liabilities and stockholders’ equity $

80,881

 

$

133,340

 

 
 
AEYE, INC.Consolidated Statements of Operations(In thousands, except share and per share data)(Unaudited)
Three months ended September 30, Nine months ended September 30,

2023

 

 

2022

 

 

2023

 

 

2022

 
Revenue:
Prototype sales $

56

 

$

652

 

$

426

 

$

1,182

 

Development contracts

132

 

115

 

969

 

1,373

 

Total revenue

188

 

767

 

1,395

 

2,555

 

Cost of revenue

4,479

 

2,708

 

8,651

 

5,617

 

Gross loss

(4,291

)

(1,941

)

(7,256

)

(3,062

)

 
Operating Expenses:
Research and development

5,654

 

8,971

 

20,993

 

28,309

 

Sales and marketing

1,910

 

4,466

 

10,782

 

14,405

 

General and administrative

5,380

 

7,896

 

20,279

 

29,053

 

Total operating expenses

12,944

 

21,333

 

52,054

 

71,767

 

Loss from operations

(17,235

)

(23,274

)

(59,310

)

(74,829

)

 
Other income (expense):
Change in fair value of convertible note and warrant liabilities

12

 

16

 

(914

)

125

 

Interest income and other

354

 

335

 

932

 

1,109

 

Interest expense and other

(174

)

(688

)

(9

)

(1,338

)

Total other income (expense), net

192

 

(337

)

9

 

(104

)

Provision for income tax expense

5

 

13

 

43

 

39

 

Net loss $

(17,048

)

$

(23,624

)

$

(59,344

)

$

(74,972

)

 
Per Share Data
Net loss per common share (basic and diluted) $

(0.09

)

$

(0.15

)

$

(0.34

)

$

(0.48

)

 
Weighted average common shares outstanding (basic and diluted)

184,117,531

 

159,312,203

 

172,182,776

 

156,702,000

 

 
 
AEYE, INC.Consolidated Statements of Cash Flows(In thousands)(Unaudited)
Nine months ended September 30,

2023

2022

 
Cash flows from operating activities:
Net loss $

(59,344

)

$

(74,972

)

Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization

998

 

794

 

Loss on sale of property and equipment, net

53

 

 

Noncash lease expense relating to operating lease right-of-use assets

1,058

 

993

 

Impairment of right-of-use assets

47

 

 

Inventory write-downs, net of scrapped inventory

3,666

 

576

 

Change in fair value of convertible note and warrant liabilities

914

 

(125

)

Realized loss on instrument-specific credit risk

46

 

 

Stock-based compensation

14,707

 

18,003

 

Realized loss on redemption of marketable securities

 

77

 

Amortization of premiums and accretion of discounts on marketable securities, net of change in accrued interest

33

 

1,211

 

Changes in operating assets and liabilities:
Accounts receivable, net

379

 

3,598

 

Inventories, current and noncurrent, net

(2,681

)

(2,256

)

Prepaid and other current assets

1,672

 

(445

)

Other noncurrent assets

133

 

420

 

Accounts payable

1,494

 

(1,236

)

Accrued expenses and other current liabilities

(2,571

)

220

 

Operating lease liabilities

(1,143

)

(983

)

Contract liabilities

(969

)

(1,400

)

Net cash used in operating activities

(41,508

)

(55,525

)

Cash flows from investing activities:
Purchase of property and equipment

(1,421

)

(3,402

)

Proceeds from sale of property and equipment

243

 

 

Purchase of marketable securities

(8,736

)

 

Proceeds from redemptions and maturities of marketable securities

76,350

 

93,592

 

Net cash provided by investing activities

66,436

 

90,190

 

Cash flows from financing activities:
Proceeds from exercise of stock options

450

 

1,032

 

Proceeds from the issuance of convertible notes

 

10,000

 

Payments for convertible note redemptions

(6,235

)

 

Taxes paid related to the net share settlement of equity awards

(1,312

)

(4,252

)

Proceeds from issuance of common stock under the Common Stock Purchase Agreement

136

 

2,891

 

Proceeds from issuance of common stock through Employee Stock Purchase Plan

118

 

 

Stock issuance costs related to the Common Stock Purchase Agreement

 

(29

)

Net cash (used in) provided by financing activities

(6,843

)

9,642

 

Net increase in cash, cash equivalents and restricted cash

18,085

 

44,307

 

Cash, cash equivalents and restricted cash at beginning of period

21,214

 

16,333

 

Cash, cash equivalents and restricted cash at end of period $

39,299

 

$

60,640

 

 
 
AEYE, INC.Reconciliation of GAAP to Non-GAAP Financial Measures(In thousands, except share and per share data)(Unaudited)

Three months ended September 30,

 

 

Nine months ended September 30,

2023

 

 

2022

 

 

2023

 

 

2022

GAAP net loss $

(17,048

)

$

(23,624

)

$

(59,344

)

$

(74,972

)

Non-GAAP adjustments:
Stock-based compensation

4,084

 

6,106

 

14,707

 

18,003

 

Expenses related to registration statement on Form S-1s and Form S-3s

192

 

54

 

192

 

304

 

Expenses related to the Common Stock Purchase Agreement

41

 

 

41

 

 

Change in fair value of convertible note and warrant liabilities

(12

)

(16

)

914

 

(125

)

Realized loss on instrument-specific credit risk

46

 

 

46

 

 

Stock issuance costs

 

 

 

28

 

Debt issuance costs

 

437

 

 

437

 

One-time termination benefits and restructuring costs

172

 

 

1,470

 

 

Non-routine write-down of inventory

3,007

 

 

3,007

 

 

Impairment of right-of-use assets

 

 

47

 

 

Non-GAAP net loss $

(9,518

)

$

(17,043

)

$

(38,920

)

$

(56,325

)

Depreciation and amortization expense

332

 

331

 

998

 

794

 

Interest income and other

(354

)

(335

)

(932

)

(1,109

)

Interest expense and other

128

 

307

 

(84

)

928

 

Provision for income tax expense

5

 

13

 

43

 

39

 

Adjusted EBITDA $

(9,407

)

$

(16,727

)

$

(38,895

)

$

(55,673

)

 
GAAP net loss per share attributable to common stockholders:
Basic and diluted $

(0.09

)

$

(0.15

)

$

(0.34

)

$

(0.48

)

Non-GAAP net loss per share attributable to common stockholders:
Basic and diluted $

(0.05

)

$

(0.11

)

$

(0.23

)

$

(0.36

)

Shares used in computing GAAP net loss per share attributable to common stockholders:
Basic and diluted

184,117,531

 

159,312,203

 

172,182,776

 

156,702,000

 

Shares used in computing Non-GAAP net loss per share attributable to common stockholders:
Basic and diluted

184,117,531

 

159,312,203

 

172,182,776

 

156,702,000

 

 

Jennifer Deitsch AEye, Inc. jennifer@aeye.ai 925-400-4366

Evan Niu, CFA Financial Profiles, Inc. eniu@finprofiles.com 310-622-8243

Source: AEye, Inc.

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