Good morning, everyone, and welcome to the Arbe Robotics Fourth Quarter and Full Year 2024 Financial Results Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please also note, today's event is being recorded. At this time, I'd like to turn the floor over to Miri Segal, CEO of MS-IR. Please go ahead.

Thank you, operator and everyone, for joining us today. Welcome to Arbe’s conference call. Before we begin, I would like to remind our listeners that certain information provided on this call may contain forward-looking statements, and the safe harbor statement outlined in today's earnings release also pertains to this call. If you have not received a copy of the release, please view it in the Investor Relations section of the company's website. Today, we are joined by Kobi Marenko, Arbe's Co-Founder and CEO, who will begin the call with a business update. Then we will turn the call over to Karine Pinto-Flomenboim, CFO, who will review the financials. Finally, we will open the call for the question-and-answer session. With that, I'd like to turn it over to Kobi Marenko. Kobi, please go ahead.

Good morning, everyone, and thank you for joining us. I will begin by reviewing some of our recent business highlights. Throughout the year, we focused on driving a radar evolution by innovating and delivering cutting edge solutions that set new industry standards. Our commitment to pushing the boundaries of radar technology with our industry-leading solutions remains strong. We take pride in the progress we have made in both product development and customer relationships, expanding and enhancing our offerings. Many top car manufacturers are actively selecting the radar suppliers this year, and we are confident that our chipset will play a key role in those discussions. In 2024, one of the top 10 global auto OEMs selected our chipset for its next-generation imaging radar. Zenseact, the Swedish AI and software company and Arbe's tier 1 Sensrad have announced a joint exploration of 4D high-resolution imaging radar to enhance safety in automated driving. We were thrilled to announce the collaboration with NVIDIA, where together, we are revolutionalizing vehicle safety and autonomy. We were proud to showcase this groundbreaking technology as the CES exhibition in Las Vegas in January. Our high-resolution radar integrates with NVIDIA's in-vehicle computing platform to transform radar-based free-space mapping. These technologies combined to redefine vehicle perception and decision-making, paving the way for what we believe will be safer and smarter mobility solutions. We look forward to future collaboration with NVIDIA. In September, HiRain technologies, one of our key tier 1s announced that it is in fast tracking of the development of an ADAS system for a Chinese auto manufacturer using our chipset, effectively replacing LiDAR from the current system. The ADAS system is anticipated to enter serial production by Q4 2025, pending final approval from the OEM. Additionally, in 2024, we announced a collaboration with a leading European truck…

Thank you Kobi, and hello, everyone. Let me review our financial results for the fourth quarter and full year 2024 in more detail. Total revenue in the fourth quarter was $0.1 million compared to $0.35 million in the fourth quarter of 2023. For the full year of 2024, total revenue was $0.8 million compared to $1.5 million in 2023. Backlog as of December 31, 2024 is $0.3 million. Gross margin loss for Q4 2024 was similar to the gross margin loss in Q4 2023 at a level of $0.2 million loss. Gross margin for the full year of 2024 was $0.8 million loss compared to a zero dollar $0 gross margin in 2023. Year-over-year gross margin reduction is mainly related to a low level of revenue and to the increase in labor costs. Moving on to expenses. In Q4 2024, we reported total operating expenses of $12.6 million compared to $11.9 million in Q4 2023. Operating expenses for the full year of 2024 totaled $48.9 million compared to $46.8 million in 2023. The operating expenses increase was primarily a result of non-cash share-based compensation expenses. In addition, the increase in production ramp-up related costs, the doubtful debt provision and to a lesser extent, the increase in labor costs were offset by a decrease due to the finalization of costs related to our advanced production stage and the savings in our D&O insurance. The company maintains a strong focus on research and development, ensuring continuous innovation and technological advancements with R&D expenses totaling $9 million for Q4 2024 compared to $8.4 million in Q4 2023. R&D expenses for the full year of 2024 were $35.1 million compared to $34.1 million in 2023. Operating loss for the fourth quarter of 2024 was $12.8 million compared to a loss of $12.1 million in…

[Operator Instructions] And our first question today comes from Suji Desilva from Roth Capital. Please go ahead with your questions.

Thanks Kobi. Thanks Karine. Congrats on the funding's and the position here. As we look at the 2025 revenue forecast, toward the end of the year, which [technical difficulty] the $1 million-plus revenue quarters that you're expecting as you go into the 2026 ramp?

Sorry, Suji, you were breaking. Can you repeat?

So which programs, Karine, are you expecting to help drive $1 million-plus revenue quarters towards the end of the year?

Well, as we said, there is two or three leading projects that are in the final stages of maturing. One is Tianyi, the non-automotive. One is the trucks in Europe, and the third and most important one is with HiRain with the car manufacturer – with the Chinese car manufacturer. All of them, we expect to start shipping chips as soon as we will have full production.

Okay. That helps. Great. And the update on the – I guess, as opposed to the end of 4Q, the current cash balance and the share count?

Yes. So what was the question Suji? What is the current, you mean now post the raising?

Correct. Post the raise, yes.

So currently, it's above $70 million, about $73 million, and the current cash count is the 85.7 million...

Shares count.

...shares count.

85.7 million. Okay. Got it. And then lastly, maybe, Kobi, the China EV market, can you update us on the opportunity there? We know that market is doing well. Where might you see initial traction there? Thanks.

So I think, as you said the Chinese market is – especially on the EV is doing well. And I think all of the Chinese car manufacturers that were focusing on launching first generation of self-driving services, which is more or less advanced adaptive cruise control are now looking into achieving kind of hands-free eyes of driving. And for that, they are looking for radar like an imaging radar together with the camera to solve the problem.

Okay. All right. Thanks.

Our next question comes from George Gianarikas from Canaccord Genuity. Please go ahead with your question.

Hi, everyone. Thank you for taking my questions. Kobi, could you just sort of describe to us a little bit of the – what's happening within the OEMs that you're having discussions with? To what extent are they evaluating other offerings from OEMs? Or do you feel like you're already on the strong path to converting these discussions into wins over the next, call it, 12 months? Thank you.

I think – so let's divide it between China and the rest of the world. On the rest of the world, all of the evaluations are in the final stages. We are short listed in most of them with one competitor and some of them with two competitors. Again, it's not us, of course, it's Magna our Tier 1. And the other chipsets that are available in the market is NXP that the radar is done by Continental and Valeo that the chipset is done by Mobileye. We know that we have advantage on both of them in terms of performance or price. So with Continental, we have a better performance and more or less same price. With Mobileye, we have same performance more or less and much – and a huge advantage on price.

And maybe for Karine, you've obviously given your 2025 EBITDA outlook. Can you just help us understand the glide path for OpEx to the extent you can over the next couple of few years? Thank you.

So as we mentioned, it's between $29 million to $35 million guidance, which is middle range is about $32 million, $33 million of OpEx. We expect this to be quite similar for the next couple of years. And maybe just to add the additional investments, which we carry in our next generation and related costs associated with it. So additional increase in investment between $5 million to $15 million over those two to three years coming in addition to our ongoing OpEx expenses.

Thank you very much.

And ladies and gentlemen, at this time and showing no additional questions, we'll be concluding today's question-and-answer session. I'd like to turn the floor back over to Arbe's CEO, Kobi Marenko for closing remarks.

We were so pleased to have you join us today. To our employees and partners, your continued dedication is deeply appreciated. We look forward to updating you further on Arbe's progress in the coming months. Look out for updates as we prepare for several investor events, including the ROTH Conference in Dana Point, California on March 17. We'd love to meet you in person for further discussions. Please contact us at investor@arberobotics.com or visit our site to schedule a meeting. Thank you all.

And ladies and gentlemen, with that, we'll conclude today's conference call. We do thank you for attending today's presentation. You may now disconnect your lines.