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indie Semiconductor, Inc. (INDI)·Q3 2024 Earnings Summary

Executive Summary

  • Q3 revenue was $54.0M, up 3.1% q/q and above the outlook midpoint; non-GAAP gross margin improved slightly to 50.4%. Management stated they “exceeded consensus revenue forecasts” for the quarter .
  • Q4 guide implies re-acceleration: revenue $56–$60M (midpoint $58M, >7% q/q), gross margin roughly flat, OpEx ~$43.5M (R&D ~$33.5M; SG&A ~$10.0M), net interest expense ~$1.1M, no taxes, and non-GAAP net loss per share of ~$0.07 on ~206M shares .
  • Strategic backlog rose 12% y/y to $7.1B (from $6.3B), with ADAS (vision and radar) now >72% of the total; management reiterated large 2025+ ramps in radar and computer vision, and indicated comfort with 2025 Street consensus .
  • Operating discipline tightens under newly appointed CFO Raja Bal; management is undertaking a comprehensive cost/working capital review to “pull forward profitability,” while maintaining breakeven revenue run-rate view at roughly $80M per quarter .
  • Macro remains choppy, but China EV demand provided a tailwind and program ramp delays have improved; narrative centers on share gains (vision, radar, user experience) and regulatory tailwinds (AEB, DMS/OMS) supporting multi-year growth .

What Went Well and What Went Wrong

  • What Went Well

    • Beat on revenue vs. consensus; delivered $54.0M and non-GAAP gross margin of 50.4% amid sector headwinds; “exceeded consensus revenue forecasts” .
    • Backlog expansion and ADAS mix: strategic backlog up to $7.1B (from $6.3B), with >72% tied to ADAS (vision and radar) as program wins continued .
    • Execution and pipeline: vision (iNDI880) continues to win awards and accelerate design-wins; radar remains on track for 2025 OEM ramps; notable wins across China and Western OEMs (e.g., Avatr12, BMW, Porsche, GM, VW, Ford) .

  • What Went Wrong

    • Year-over-year decline: Q3 revenue fell to $54.0M vs. $60.5M in Q3’23; non-GAAP gross margin compressed y/y (50.4% vs. 52.7%); GAAP net loss per share widened to $(0.28) vs. $(0.12) y/y .
    • Operating losses elevated: non-GAAP operating loss was $(16.8)M vs. $(13.0)M y/y; restructuring costs of $4.3M impacted results .
    • Cash usage increased: total cash (incl. restricted) declined to $107.2M from $122.6M q/q, primarily on a deliberate inventory build ahead of expected growth (partially offset by ATM issuance and credit facility draw) .

Financial Results

MetricQ1 2024Q2 2024Q3 2024
Revenue ($USD Millions)$52.353 $52.355 $53.965
Non-GAAP Gross Margin %50.3% 50.3% 50.4%
GAAP Loss per Share ($)$(0.19) $(0.11) $(0.28)
Non-GAAP Loss per Share ($)$(0.10) $(0.09) $(0.09)

Revenue composition

Metric ($USD Millions)Q1 2024Q2 2024Q3 2024
Product Revenue$48.578 $49.009 $51.285
Contract Revenue$3.775 $3.346 $2.680

Balance sheet KPIs (quarter-end)

Metric ($USD Millions)Q1 2024 (Mar 31)Q2 2024 (Jun 30)Q3 2024 (Sep 30)
Cash & Cash Equivalents$138.174 $112.347 $96.897
Restricted Cash$10.000 $10.300 $10.300
Accounts Receivable (net)$52.418 $58.074 $56.163
Inventory (net)$37.899 $42.464 $52.157

Additional notes:

  • Q3 non-GAAP operating loss: $(16.8)M; non-GAAP net loss: $(17.7)M; non-GAAP EBITDA: $(14.8)M .
  • “Total cash including restricted” at Q3 was $107.2M (CFO commentary) .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueQ4 2024N/A$56–$60M (midpoint $58M; >7% q/q) New
Non-GAAP Gross MarginQ4 2024N/ARoughly flat q/q New
OpEx (Total)Q4 2024N/A~$43.5M (R&D ~$33.5M; SG&A ~$10.0M) New
Net Interest ExpenseQ4 2024N/A~$1.1M New
TaxesQ4 2024N/A~0 New
Shares (for EPS)Q4 2024N/A~206M New
Non-GAAP Net Loss per ShareQ4 2024N/A~$(0.07) New
Q3 2024 Revenue (from Q2 guide)Q3 2024+0–5% seq (mid +2.5%) Actual $54.0M (above midpoint) Achieved above midpoint

Earnings Call Themes & Trends

TopicPrevious Mentions (Q-2 and Q-1)Current Period (Q3 2024)Trend
AI/Technology initiatives (Vision/ISP)Q1: Accelerated AI via Expedera partnership; camera/vision programs ramping . Q2: Radar/vision at key customers on track for 2025 .iNDI880 wins accelerating; award “Sensor Innovation of the Year”; broad DMS/OMS wins; vision and radar now core to backlog .Strengthening pipeline and recognition .
Supply chain/inventoryQ1/Q2: Industry inventory rebalancing; trough passed with H2 ramp expected .Higher cash usage q/q due to deliberate inventory build for growth; macro still choppy but improving program ramp visibility .Preparing for ramps; visibility improving .
Tariffs/MacroQ1/Q2: Market softness; expectation of H2 improvement .Macro uncertain, but share gain drivers dominate; China EV demand provided tailwind .Mixed macro; company-specific momentum .
Product performance (Radar)Q2: Customer functional verification; 2025 ramp on track .Radar remains on track; small 2025 revenue; customer homologation underway .Execution intact; ramp visibility improves .
Regulatory tailwinds (AEB, DMS/OMS)Q1: OMS ramps (BMW); enabling safety features; pipeline strong .New NHTSA/Euro NCAP regulations are tailwinds; vision products exceed performance requirements .Regulatory support increasing .
Regional trendsQ1: Xiaomi launch; global OEM traction . Q2: Design wins across NA, EU, KR .China stronger vs. ROW; multiple China OEM wins in vision/lighting .China tailwind; diversified global base .
R&D executionQ1/Q2: New program ramps across cameras, power, lighting; radar SoC progress .Vision, radar, connectivity and photonics advancing; photonics subsystem capability extended (post-Q3) .Execution broadening .
Cost discipline/breakevenQ1/Q2: Targeted margin expansion; flat expenses .CFO cost review across functions; breakeven still ~ $80M/quarter .Elevated focus on efficiency .

Management Commentary

  • “During the third quarter of 2024, indie achieved total revenue of $54 million… a testament to indie’s resilience” amid macro/auto headwinds; long‑term drivers remain strong (safety, electrification, in‑cabin) .
  • “Our strategic backlog has increased to $7.1 billion, up over 12% from $6.3 billion last year… ADAS wins comprise over 72%... We would expect to achieve annual revenue of greater than $700 million in 2028” .
  • “For the fourth quarter of 2024, we expect… $56–$60 million… over 7% sequential growth… gross margins roughly flat… OpEx ~$43.5 million… net interest ~$1.1 million… no taxes… ~$0.07 net loss per share (206 million shares)” .
  • “We are comfortable with current analyst consensus for 2025” .
  • CEO on China and macro: “Market is still choppy… we’re now beginning to see much more solidity… back to… revenue governed by our own share gain” .

Select quotes

  • “Our iNDI880… is demonstrably exceeding the performance requirements of… U.S. and European safety regulation for vulnerable road users” .
  • “We anticipate a return to our industry‑leading growth trajectory in 2025 and beyond” .
  • CFO: “We are conducting a comprehensive review of our cost structure… to pull forward profitability” .

Q&A Highlights

  • Radar ramp and homologation: Program “remains on track,” with a “small amount of significant revenue in 2025;” “homologation” refers to qualification/approval in automotive .
  • Regulatory catalysts: AEB and driver monitoring mandates are aligned with indie’s design‑ins; timing aligns with current program windows .
  • Cost focus and breakeven: Broad cost/working capital review underway with no product pullbacks; breakeven revenue run-rate still around ~$80M/quarter .
  • Macro/China: Visibility remains mixed globally, but China provided a tailwind; improved solidity as program delays abate .
  • Backlog dynamics: +12% y/y to $7.1B despite pushouts; wins outpaced net change; multiple OEM ramps expected into 2026 .
  • Capital needs: Management does not anticipate further use of the ATM program .

Estimates Context

  • S&P Global consensus data for Q3 and forward estimates was unavailable due to a request limit; as a result, we cannot quantify the exact revenue/EPS beats vs. Wall Street at this time. Values that would normally be retrieved from S&P Global are unavailable for inclusion here. Management stated they “exceeded consensus revenue forecasts” for Q3 .
  • Implications: Q4 revenue guidance (>7% q/q at midpoint), flat margins, lower OpEx, and higher share count (~206M) suggest models may need to reflect stronger near‑term top‑line and slightly lower operating expense, with non‑GAAP LPS guided to ~$(0.07) .

Key Takeaways for Investors

  • Re-acceleration underway: Q3 delivered above‑midpoint revenue and slight GM improvement; Q4 guide implies >7% q/q growth with flat margins—positioning for a stronger exit rate (~$58M midpoint) .
  • Backlog/ADAS mix underpin multi‑year growth: Strategic backlog rose to $7.1B (+12% y/y), with >72% ADAS, and radar/vision ramps set to drive 2025–2026 inflections; management is comfortable with 2025 Street consensus .
  • Cost discipline as catalyst: CFO-led cost/working capital review aims to “pull forward profitability” while holding breakeven threshold at roughly $80M/quarter .
  • China and regulatory tailwinds: China EV demand provided near-term support; regulatory mandates (AEB, DMS/OMS) align with indie’s portfolio and should support design-win monetization .
  • Watch inventory/cash: Deliberate inventory build raised cash burn in Q3; balance sheet still solid with $96.9M cash plus $10.3M restricted; no further ATM usage anticipated .
  • Product momentum: Vision (iNDI880) winning awards and deployments; radar tracking to 2025 production; connectivity and photonics expanding addressable content per vehicle .

Appendix: Additional KPIs

Strategic Backlog (point-in-time, $USD Billions)

Metric202220232024
Strategic Backlog$4.3B $6.3B $7.1B

Notes:

  • Q3 2024 detailed financial statements (GAAP P&L, balance sheet; non-GAAP reconciliations) are provided in the 8‑K/press release filings .
  • Revenue composition and quarterly trends are cross-referenced to Q1 and Q2 2024 8‑K releases .