• Revenue increased 16% year over year to $458 million in the first quarter.
• Diluted EPS (GAAP) was $(0.10) and Adjusted Diluted EPS (Non-GAAP) was $0.14 in the first quarter.
• Average System Price¹ increased to $53.9 in the first quarter of 2023 from $51.0 in the prior year period, driven primarily by more than doubling the volume of SuperVision™ sales.
• Additional near-term SuperVision launches include Polestar 4 expected in Q4 2023, and expansion of Zeekr 001 into Europe, expected in late 2023. Multiple development activities with traditional OEMs on SuperVision and Chauffeur™ gaining traction.
• Generated net cash from operating activities of $171 million in the first quarter. Our balance sheet is strong with $1.2 billion of cash and cash equivalents and zero debt as of April 1, 2023.

JERUSALEM — (BUSINESS WIRE) — April 27, 2023 — Mobileye Global Inc. (Nasdaq: MBLY) (“Mobileye”) today released its financial results for the three months ended April 1, 2023.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20230427005144/en/

Mobileye’s robust perception system provides the technological backbone of its scalable ADAS-to-AV product portfolio. (Photo: Business Wire)

“The business performed very well in Q1, including 16% revenue growth as both our EyeQ® and SuperVision business lines grew strongly, significantly outperforming underlying global auto production growth. Operating Cash flow was very robust at $171 million. We continue to gain traction with our advanced product portfolio as multiple SuperVision and Chauffeur programs with global automakers approach design win conclusion. We expect that near-term SuperVision launches, such as Polestar 4 in Q4 2023, will drive customer and regional diversification in this key business, while also driving momentum with additional customers,” said Mobileye President and CEO Prof. Amnon Shashua. “Due to a number of headwinds lowering EV demand in China, we have reduced our 2023 SuperVision shipment forecast which is negatively impacting our annual financial guidance as explained below. We see this as a temporary issue that should not impact the potential for this business to accelerate our top and bottom-line growth as it scales, diversifies, and becomes more predictable with additional OEMs and vehicle launches. We will continue to invest heavily (while maintaining strong profitability) during 2023 to productize and launch our advanced solutions. We feel more confident than ever that the opportunities ahead of us can deliver substantial benefits to our investors, our customers, and other stakeholders.”

First Quarter 2023 Business Highlights

• Overall business development activity remains very robust. The pipeline of design win opportunities we are currently pursuing in 2023 is expected to be higher than the $6.7 billion in projected future revenue from design wins we achieved in 2022.²
• Cloud-enhanced ADAS volumes (i.e. front-facing camera plus REM mapping) is expected to ramp up more meaningfully with the second major customer planned to begin production this year. Each of those OEMs also recently chose to expand this technology to additional vehicle platforms beyond the original plan. We expect this business to drive significant recurring software licensing revenue that we expect will represent approximately double the upfront price of the EyeQ® SoC. We are also encouraged by the inclusion of cloud-enabled safety features in the Euro NCAP safety rating protocols beginning in 2026 which we expect to drive further traction for this product.
• SuperVision launches are on-track, supporting diversification of this high-value product line and continued growth in Mobileye Average System Price. Zeekr 009 launched in Q1 and SuperVision-equipped vehicles from two additional Geely-related brands are planned to launch in China in the second half of 2023, including Polestar 4. Additionally, Zeekr 001 is planned to enter Europe in late 2023 and Polestar 4 expected to be sold globally in 2024.
• We continue to see strong interest in SuperVision (and Chauffeur) from additional global OEMs. Development activities for advanced products with Western OEMs are progressing well, including an ongoing series production development program for SuperVision with a Premium European Automaker. We expect that SuperVision will expand to additional brands within this group based on shared vehicle platforms. Beyond this, we continue to expect nomination for SuperVision with an additional global US-based OEM in the 2nd half of 2023. Finally, our successful commercial deployment with Zeekr is driving substantial interest from a number of OEMs based in China and India.
• On the Mobility-as-a-Service front, we are focusing our efforts on collaborations to develop purpose-built vehicle platforms that would be pre-engineered to integrate Mobileye’s self-driving system at the OEMs factory. In addition to partnering with Holon and Schaeffler, we are working with a leading European producer of light commercial vehicles and have already upfitted 30 of the targeted vehicles with our self-driving system.

First Quarter 2023 Financial Summary and Key Explanations (Unaudited)

• Revenue of $458 million increased 16% compared to the first quarter of 2022. EyeQ® SoC related revenue grew 11% in the quarter due to a combination of volume and ASP growth. The remaining growth was primarily generated by SuperVision related revenue.
• Average System Price was $53.9 in first quarter of 2023 as compared to $51.0 in the prior year period, driven primarily by increased mix of advanced products. Price increases to offset the increased cost of our EyeQ® chip due to global inflationary pressures also contributed to the Average System Price increase but to a lesser extent.
• Gross Margin in the first quarter of 2023 was largely consistent with the prior year period, as the downward impact of the increased cost of our EyeQ® chip (and associated price increase to customers), was mostly offset by lower impact of the cost attributable to amortization of intangible assets as a percentage of revenue.
• Adjusted Gross Margin declined by nearly 6 percentage points in the first quarter of 2023 as compared to the prior year period. The decrease was primarily due to the increased cost of our EyeQ® chip which was passed through as a price increase to customers on a zero-margin basis.
• Operating Margin declined by approximately 6 percentage points in the first quarter of 2023 as compared to the prior year period. The decrease was primarily due to higher headcount and direct research and development expenses which resulted in a year-over-year increase in operating expenses as a percentage of revenue.
• Adjusted Operating Margin declined by approximately 9 percentage points in the first quarter of 2023 as compared to the prior year period. The decrease was due to lower Adjusted Gross Margin, as well as an increase in research and development expenses attributable to headcount and higher direct expenses, to execute our future product portfolio.
• Operating cash flow for the three months ended April 1, 2023 was $171 million. Cash used in purchases of property and equipment was $26 million for that same period.