Mobileye Global (MBLY) Q2 2024 earnings summary

Executive summary

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

• Adjusted operating margin rebounded to 18% from -27% in Q1, though still below Q2 2023 due to increased operating expenses and product mix.

• 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.

• Inventory levels at customers are now nearly normalized, supporting improved sequential shipments and operating results.

• Near-term outlook reduced due to China macro headwinds, tariffs, and delayed ADAS launches, but medium-term growth drivers remain strong, supported by new product launches and partnerships.

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; Q2 2024 operating loss: $94 million; adjusted operating income: $79 million (18% margin, down from 31% in Q2 2023).

• Q2 2024 gross margin: 48% (down from 49% YoY); adjusted gross margin: 69% (down from 72% YoY); SuperVision gross margin exceeded 40%.

• Operating cash flow in H1 2024 was $70 million, exceeding adjusted net income; $46 million used for property and equipment purchases.

• Cash and cash equivalents at June 29, 2024: $1.2 billion.

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 from China headwinds and tariffs.

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

• Non-GAAP effective tax rate for 2024 raised to 17–19% (from 15–17%) due to lower profit outlook.

• OpEx growth expected to slow in 2025 after significant increase in 2024; CapEx for 2024 expected slightly above 2023, focused on next-gen product development.