Mobileye Global Inc. — FY 2022 Form 10-K
Reporting period: Fiscal year ended December 31, 2022; a 53-week year versus 52 weeks in 2021. This is an annual filing, not a standalone fourth-quarter report. Mobileye completed its IPO in October 2022 and remained controlled by Intel.
Financial results and liquidity
| Metric | FY 2022 | FY 2021 |
|---|---|---|
| Revenue | $1.869 billion | $1.386 billion |
| Gross profit / margin | $922 million / 49% | $655 million / 47% |
| Operating loss / margin | $37 million / (2%) | $57 million / (4%) |
| Net loss | $82 million | $75 million |
| Adjusted net income (non-GAAP) | $605 million | $474 million |
| Cash from operating activities | $546 million | $599 million |
| Capital expenditures | $111 million | $143 million |
Revenue increased 35%, driven by EyeQ SoC sales growth and the ramp of SuperVision. EyeQ sales were approximately 89% of revenue, down from 94%; SuperVision accounted for most of the remaining revenue. EyeQ sales rose 28%, reflecting 19% higher volume and 7% higher average selling price. Adjusted net income, adjusted gross profit, and adjusted operating income are non-GAAP measures; adjusted net income excludes acquired-intangible amortization, share-based compensation, IPO expenses, and related tax effects.
At year-end, cash and cash equivalents were $1.024 billion, inventories $113 million, current assets $1.516 billion, and current liabilities $384 million. Total assets were $15.441 billion and total liabilities $647 million. The balance sheet lists no remaining Dividend Note debt: approximately $0.9 billion of IPO proceeds repaid part of the $3.5 billion note, and Intel contributed the balance. The company also disclosed approximately $11 million of bank guarantees. Cash, cash equivalents, and restricted cash totaled $1.035 billion in the cash-flow statement.
Operating cash flow declined $53 million year over year, mainly due to employee-related balances and higher receivables. Investing cash flow was $1.187 billion, principally reflecting net repayment of loans by Intel; financing cash flow was negative $1.317 billion, including the Dividend Note repayment, Moovit-related transactions, and distributions to Intel, partly offset by IPO proceeds. The IPO and concurrent private placement generated approximately $1.0 billion net; after the repayment, about $0.1 billion of proceeds remained for working capital and general corporate purposes.
Material changes and business context
- Mobileye develops ADAS and autonomous-driving technology. Its solutions were installed in approximately 800 vehicle models, with EyeQ chips deployed in over 135 million vehicles; it worked with more than 50 OEMs.
- Shipments of EyeQ and SuperVision systems rose to approximately 33.7 million from 28.1 million in 2021. More than 90,000 SuperVision systems were delivered to ZEEKR in 2022.
- Gross margin improved by two percentage points. Management attributed the improvement primarily to lower acquired-intangible amortization as a share of revenue, partly offset by SuperVision’s higher hardware content and higher chip costs. Adjusted gross margin declined from 78% to 75%.
- Research and development expense rose 45% to $789 million, reflecting increased headcount, compensation, cloud services, and product-development investment. Share-based compensation increased to $174 million from $97 million.
- China represented 29% of revenue based on shipment destination, up from 19%. Three Tier 1 customers accounted for 38%, 18%, and 15% of revenue, respectively; eight OEMs represented 77% of revenue through Tier 1 channels.
- Intel held all Class B shares, representing approximately 99.3% of voting power at year-end. The company’s public-company reporting and governance arrangements began following the IPO.
Outlook, management commentary, and risks
- Management expects near-term R&D expense and 2023 capital expenditures to exceed 2022 levels. The Jerusalem campus was expected to be completed in 2023, with $55–$65 million of remaining estimated cost. The filing does not provide a clear numerical revenue forecast.
- Management expects near-term adjusted operating and net-income margins to decline versus 2022, citing investment in R&D and a greater mix of full-system products with higher hardware content and lower percentage margins.
- EyeQ supply constraints persisted in 2021–2022; the sole EyeQ supplier, STMicroelectronics, could not meet demand, and a shortfall could continue in 2023. The company reported prior delivery rescheduling and limited inventory, while stating that 2022 results were not significantly affected.
- Other material risks include dependence on a concentrated customer base; automotive production, inflation, and semiconductor supply conditions; product safety, warranty, recall, and cybersecurity exposure; evolving AV regulation; and execution risk in developing EyeQ generations, imaging radar, lidar, and autonomous-driving programs.
- Intel’s control, related-party arrangements, and limited Intel technology licenses for radar and lidar create governance and strategic dependencies. The company also cited Israel-related geopolitical and operational risks, China trade/export-control exposure, and privacy and cross-border data regulation.
- The company reported no legal proceeding it believed would have a material adverse effect. Management found disclosure controls effective; the filing did not include management’s internal-control assessment or auditor attestation because of the transition period for newly public companies.
Important facts for investors to verify
- Whether EyeQ supply improves and whether customer deliveries, inventory, and automotive production meet expectations.
- Whether revenue growth and margins hold as SuperVision and other full-system products become a larger share of sales, and how much cost inflation can be passed through to customers.
- Whether the company converts design wins and announced autonomous-driving programs into production volumes and revenue on schedule.
- The sustainability and comparability of non-GAAP results alongside GAAP losses, including the effects of acquired-intangible amortization and share-based compensation.
- Intel’s ongoing voting control, related-party terms, and the company’s dependence on Intel-licensed technology and services.
- Cash deployment, campus and other capital spending, customer concentration, and the status of internal-control reporting as public-company requirements apply.