indie Semiconductor (INDI) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was $52.4 million, flat sequentially and year-over-year, at the low end of guidance, with product sales growth offset by lower contract revenue and ongoing macroeconomic headwinds in the automotive sector.

• Net loss attributable to common stockholders was $19.2 million for Q2 2024, with non-GAAP net loss at $18 million and non-GAAP loss per share at $0.09.

• Major technical milestones were achieved in ADAS, including full functional verification of the 77 GHz radar, successful sampling of the iND880 vision SoC, and multiple design wins at global OEMs.

• Recent acquisitions, including Kinetic Technologies, expanded product offerings and contributed to revenue growth.

• Management expects sequential growth in the second half of 2024 and a return to industry-leading growth in 2025, driven by radar and vision program ramps.

Financial highlights

• Q2 2024 total revenue: $52.4 million; product revenue: $49.0 million; contract revenue: $3.3 million.

• Non-GAAP gross profit was $26.3 million, with a gross margin of 50.3%; GAAP gross margin was 42%.

• Non-GAAP operating loss was $17.2 million; GAAP operating loss was $36.6 million.

• Net loss per share was $0.09 (non-GAAP) and $0.11 (GAAP) in Q2 2024.

• Cash and cash equivalents at June 30, 2024 were $112.3 million to $122.6 million.

Outlook and guidance

• Q3 2024 revenue expected to grow 0%-5% sequentially, with gross margin around 50% and OpEx of $44 million.

• Net loss per share for Q3 projected at $0.09, assuming 199.5 million shares outstanding.

• Management expects to outpace the automotive industry in Q3 and resume industry-leading growth in 2025 as radar and vision programs ramp.

• Liquidity is considered sufficient for at least the next 12 months, with access to cash, credit, and ATM equity program.