2 Average System Price is calculated as the sum of revenue related to EyeQ® and SuperVision systems, divided by the number of systems shipped.
Updated Financial Guidance for the 2023 Fiscal Year
We are updating our guidance for the 2023 fiscal year we provided on April 27, 2023:
|
|
Updated Guidance Full Year 2023 |
|
Previous Guidance Full Year 2023 |
||||
U.S. dollars in millions |
|
Low |
|
High |
|
Range |
||
Revenue |
|
$ |
2,065 |
|
$ |
2,114 |
|
$2,065 - 2,114 |
Operating Loss |
|
$ |
(129) |
|
$ |
(98) |
|
$ (195) - (166) |
Amortization of acquired intangible assets |
|
$ |
474 |
|
$ |
474 |
|
$ 474 |
Share-based compensation expense |
|
$ |
255 |
|
$ |
255 |
|
$ 269 |
Adjusted Operating Income |
|
$ |
600 |
|
$ |
631 |
|
$ 548 - 577 |
Our updated guidance reflects an improvement in expected Operating Loss (GAAP) and Adjusted Operating Income (Non-GAAP), at the midpoint, of 37% and 9%, respectively. Lower than expected operating expenses, both in Q2 and second half of 2023, are primarily being driven by certain macro factors, higher-than-expected non-recurring engineering (“NRE”) reimbursements, a modest shift in the timing of occupation of the new Jerusalem campus, and ongoing initiatives to improve the efficiency of R&D in certain areas. Our revenue guidance remains consistent with the guidance provided on April 27, 2023 and, at the midpoint, implies 16% growth in the 2nd half of 2023 as compared to the 2nd half of 2022.
This information reflects Mobileye’s expectations for Revenue, Operating Loss and Adjusted Operating Income results for the year ending December 30, 2023. We believe Adjusted Operating Income (a non-GAAP metric) is an appropriate metric as it excludes significant non-cash expenses including: 1) Amortization charges related to intangible assets consisting of developed technology, customer relationships, and brands as a result of Intel’s acquisition of Mobileye in 2017 and the acquisition of Moovit in 2020; and, 2) Share-based compensation expense. These statements represent forward-looking information and may not represent a financial outlook, and actual results may vary. Please see the risks and assumptions referred to in the Forward-Looking Statements section of this release.
Earnings Conference Call Webcast Information
Mobileye will host a conference call today, July 27, 2023, at 8:00am ET (3:00pm IT) to review its results and provide a general business update. The conference call will be accessible live via a webcast on Mobileye’s investor relations site, which can be found at ir.mobileye.com, and a replay of the webcast will be made available shortly after the event’s conclusion.
Non-GAAP Financial Measures
This press release contains Adjusted Gross Profit and Margin, Adjusted Operating Income and Margin, Adjusted Net Income and Adjusted EPS (Earnings Per Share), which are financial measures not presented in accordance with GAAP. We define Adjusted Gross Profit as gross profit presented in accordance with GAAP, excluding amortization of acquisition related intangibles and share-based compensation expense. Adjusted Gross Margin is calculated as Adjusted Gross Profit divided by total revenue. We define Adjusted Operating Income as operating loss presented in accordance with GAAP, adjusted to exclude amortization of acquisition related intangibles, share-based compensation expenses and expenses related to our initial public offering that was completed on October 28, 2022 (the “Mobileye IPO”). Operating margin is calculated as operating loss divided by total revenue, and Adjusted Operating Margin is calculated as Adjusted Operating Income divided by total revenue. We define Adjusted Net Income as net loss presented in accordance with GAAP, adjusted to exclude amortization of acquisition related intangibles, share-based compensation expense, and expenses related to the Mobileye IPO, as well as the related income tax effects. Income tax effects have been calculated using the applicable statutory tax rate for each adjustment taking into consideration the associated valuation allowance impacts. The adjustment for income tax effects consists primarily of the deferred tax impact of the amortization of acquired intangible assets. Adjusted Basic EPS is calculated by dividing Adjusted Net Income for the period by the weighted-average number of common shares outstanding during the period. Adjusted Diluted EPS is calculated by dividing Adjusted Net Income by the weighted-average number of common shares outstanding during the period, while giving effect to all potentially dilutive common shares to the extent they are dilutive.
