Mobileye Global (MBLY) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was $439 million, up 84% sequentially but down 3% year-over-year, as EyeQ volumes more than doubled from Q1 and SuperVision volumes reached 31,000 units, with inventory normalization at Tier 1 customers.

• Net loss for Q2 2024 was $86 million, compared to a net loss of $28 million in Q2 2023, driven by lower revenue and higher operating expenses.

• Adjusted operating margin rebounded to 18% from -27% in Q1, but was down from 31% in Q2 2023 due to higher OpEx.

• Inventory levels at customers are nearly normalized, and the company is positioned as a technology leader across four ADAS/AV growth categories, with significant business engagements and design wins.

• Operations and financial results have not been materially affected by the Israel conflict, though 3.6% of employees were called to reserve duty.

Financial highlights

• Q2 2024 revenue: $439 million (down 3% year-over-year, up 84% sequentially); H1 2024 revenue: $678 million (down 26% year-over-year).

• Q2 2024 net loss: $86 million; H1 2024 net loss: $304 million.

• Adjusted operating income for Q2 2024: $79 million (18% margin), down from $140 million (31% margin) in Q2 2023.

• Gross margin for Q2 2024 was 48% (down from 49% in Q2 2023); adjusted gross margin was 69% (down from 72% in Q2 2023).

• Operating cash flow in H1 2024 was $70 million, exceeding adjusted net income.

Outlook and guidance

• Full-year 2024 revenue guidance lowered to $1.60B–$1.68B (from $1.83B–$1.96B), mainly due to lower EyeQ and SuperVision volumes and China market headwinds.

• EyeQ volume guidance cut to 28–29 million units (from 31–33 million); SuperVision to 110,000–130,000 units (from 175,000–195,000).

• FY 2024 GAAP operating loss expected at $(580)M–$(531)M; adjusted operating income at $152M–$201M (down 44% at midpoint).

• Adjusted OpEx growth for 2024 now forecast at 23% (down from 25%), with no significant OpEx increase expected in 2025.

• Non-GAAP effective tax rate for 2024 raised to 17–19% due to lower profit outlook.