Innoviz Technologies Ltd. — FY2022 Form 20-F
Reporting period: Fiscal year ended December 31, 2022; filed March 9, 2023. This is an annual report, not a standalone Q4 filing, and the provided text does not give separate fourth-quarter results. Financial statements are prepared under U.S. GAAP and audited by Kost Forer Gabbay & Kasierer, a member of Ernst & Young Global.
Business context
Innoviz develops solid-state LiDAR sensors and perception software for automotive and other autonomy applications. Its principal automotive programs include BMW’s Level 3 program through Magna, a Volkswagen/CARIAD nomination, and a 2022 selection by an Asia-based automotive OEM. The company began pursuing direct Tier-1 supplier relationships in 2022. InnovizTwo and Innoviz360 were still in development at year-end.
Key financial metrics
| Metric (USD millions, except per-share data) | 2022 | 2021 |
|---|---|---|
| Revenue | $6.0 | $5.5 |
| Gross loss / gross margin | $(8.8) / (145)% | $(5.0) / (92)% |
| Operating expenses | $124.6 | $152.6 |
| Operating loss | $(133.3) | $(157.7) |
| Net loss | $(126.9) | $(153.6) |
| Basic and diluted loss per share | $(0.94) | $(1.54) |
| Cash used in operating activities | $(93.4) | $(82.5) |
| Capital expenditures | $22.6 | $3.8 |
Revenue rose 10%, mainly from higher InnovizOne and related product sales. Cost of revenue increased 41%, attributed primarily to InnovizOne production inefficiencies and machinery depreciation, worsening the gross margin. Operating expenses fell 18%, largely because 2021 included higher stock-based compensation associated primarily with the business combination; R&D remained high at $95.1 million. Net loss narrowed, but operating cash use increased.
At December 31, 2022, cash and cash equivalents were $55.7 million; bank deposits $80.7 million; marketable securities $49.5 million; and short-term restricted cash $0.2 million. Management reported approximately $186.2 million in cash, deposits, restricted cash, and marketable securities, and said these funds should support the plan for at least 12 months. Total assets were $255.4 million and shareholders’ equity $192.0 million. The filing shows no conventional borrowings in the summarized balance sheet; operating lease liabilities totaled $33.9 million, including $3.7 million current.
Changes, outlook, risks, and unusual items
- Customer concentration: Magna accounted for approximately 77% of 2022 revenue ($4.6 million), versus 82% in 2021. The company identifies reliance on BMW/Magna and the long lead time from design win to production as material risks.
- Funding and profitability: Management does not expect near-term profitability, expects losses to remain significant as it expands R&D, production, validation, inventory, and sales capabilities, and says additional funding may be needed. No quantified revenue or earnings guidance is provided.
- Program execution: Automotive mass production requires demanding quality and validation, and Innoviz says it had not yet manufactured LiDARs at mass-production scale for its programs. Customer programs may be delayed, changed, or canceled.
- Industry and supply risks: LiDAR adoption remains uncertain; competition, OEM pricing pressure, component shortages, cost increases, and long supplier lead times could constrain growth and margins. COVID-related disruptions, particularly in China, could affect operations and production plans.
- Other financial items: Financial income, net was $6.8 million, including foreign-exchange effects and bank interest. Private placement warrants are remeasured through earnings, creating potential non-cash volatility. 2022 R&D, sales and marketing, and G&A expenses included $19.4 million of stock-based compensation.
- Contingencies and controls: Innoviz reported no material legal proceedings. Management concluded disclosure controls and internal control over financial reporting were effective as of year-end; the auditor did not provide an ICFR attestation, citing applicable exemptions.
Important facts for investors to verify
- Whether the Volkswagen/CARIAD and Asian OEM nominations progress to production, and the timing, purchase commitments, and economics of each program.
- Customer concentration and the continuing commercial relationship with Magna and BMW.
- The filing gives two different remaining-performance-obligation figures: approximately $9.6 million in the MD&A and $13.057 million in the financial-statement note, of which $3.441 million was recorded as short-term deferred revenue. Reconcile the amounts and definitions.
- Whether the reported $186.2 million liquidity estimate, cash burn, and management’s 12-month runway remain adequate as investment and commercialization costs rise.
- Production yields, unit costs, gross-margin improvement, and funding needs as InnovizTwo and Innoviz360 move toward commercialization.
- Potential dilution from outstanding warrants, options, RSUs, and future financing; the filing reports 136.2 million ordinary shares outstanding at year-end.