Mobileye Global (MBLY) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was $486 million, down 8% year-over-year but up 11% sequentially from Q2, reflecting normalized customer inventory and shipment volumes consistent with end-market demand.

• Net loss for Q3 2024 was $2,715 million, driven by a $2,695 million non-cash goodwill impairment charge.

• Adjusted net income for Q3 2024 was $77 million, with adjusted diluted EPS of $0.10.

• Advanced product engagements with 9 of the top 10 customers, strong C-suite endorsement, and no recent lost or delayed decisions.

• Operations and financial results have not been materially affected by the Israel conflict, though 8.3% of employees were called to reserve duty.

Financial highlights

• Q3 2024 gross margin was 49% (down from 51% in Q3 2023); adjusted gross margin was 68%.

• Q3 2024 operating loss was $2,807 million, driven by the goodwill impairment; adjusted operating income was $78 million (16% margin).

• Net cash from operating activities was $196 million for the nine months ended September 28, 2024, with $126 million generated in Q3.

• Accrued $5 million in restructuring expenses for LiDAR unit closure and $8.6 million in termination costs from winding down Aftermarket Solutions and Lidar R&D units.

• Cash and cash equivalents at quarter-end were $1,293 million.

Outlook and guidance

• Full-year 2024 revenue guidance remains unchanged at the midpoint, projected between $1,620 million and $1,660 million.

• Adjusted operating income guidance for 2024 is $163–$190 million; GAAP operating loss guidance reflects the goodwill impairment.

• 2024 EyeQ volume guidance: 28.4–28.8 million units; SuperVision: 110,000–120,000 units.

• Non-GAAP effective tax rate for 2024 expected between 18% and 20%.

• Expectation to maintain adjusted operating expenses at or below Q3 2024 levels on average in 2025.