indie Semiconductor (INDI) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was $54.0M, up 3.1% sequentially but down 11% year-over-year, reflecting resilience amid automotive industry headwinds and a cyclical market trough.

• Strategic backlog increased to $7.1B, up 12% year-over-year, driven by strong ADAS and design-win momentum across major OEMs in the US, Europe, and China.

• Net loss attributable to common shares for Q3 2024 was $49.7M, or $0.28 per share GAAP, with non-GAAP net loss per share at $0.09.

• Leadership transition with Raja Bal appointed as full-time CFO, and a restructuring plan initiated in August 2024 with $4.3M in charges.

• Acquisition of Kinetic Technologies completed in January 2024, expanding smart connectivity solutions.

Financial highlights

• Q3 2024 revenue: $54.0M, up 3.1% sequentially; product revenue was $51.3M, contract revenue $2.7M.

• Non-GAAP gross profit was $27.2M (50.4% margin), above outlook; GAAP gross margin was 39%.

• Q3 GAAP net loss: $49.7M; non-GAAP net loss: $17.7M; non-GAAP EBITDA: $(14.8)M.

• Operating expenses for Q3 2024 were $103.9M, including $4.3M in restructuring costs.

• Cash and equivalents at quarter-end were $96.9M–$107.2M.

Outlook and guidance

• Q4 2024 revenue expected between $56–$60M, with midpoint $58M, representing over 7% sequential growth.

• Q4 gross margin expected to remain flat; OPEX to marginally reduce to $43.5M.

• Q4 net loss per share projected at $0.07, assuming 206M shares outstanding.

• Management anticipates a return to industry-leading growth in 2025, with long-term revenue target of $700M+ in 2028.

• Liquidity is expected to be sufficient for at least the next 12 months, with access to cash, credit, and equity issuance.