Indie Semiconductor Inc is empowering the Autotech revolution with next-generation automotive semiconductors and software platforms. It focuses on edge sensors for advanced Driver Assistance Systems including LiDAR, connected car, user experience, and electrification applications. These technologies represent the core underpinnings of both electric and autonomous vehicles, while the advanced user interfaces transform the in-cabin experience to mirror and seamlessly connect to the mobile platforms. Geographically, the company generates majority of its revenue from Greater China and rest from United States, Europe, South Korea and other regions.
Q2 2024 Financial Performance
Indie Semiconductor Inc (INDI, Financial) reported Q2 2024 revenue of $52.4 million, which was slightly below the analyst estimate of $53.75 million. However, the company posted a Non-GAAP loss per share of $0.09, which was better than the analyst estimate of -$0.15.
The company’s Non-GAAP gross margin stood at 50.3%, reflecting a slight decrease from the previous year's 52.2%. On a GAAP basis, the operating loss for the quarter was $36.6 million, an improvement from the $40.7 million loss reported in the same period last year. Non-GAAP operating loss was $17.2 million, compared to $16.3 million in Q2 2023.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Revenue | $52.4 million | $52.1 million |
| Non-GAAP Gross Margin | 50.3% | 52.2% |
| GAAP Operating Loss | $36.6 million | $40.7 million |
| Non-GAAP Operating Loss | $17.2 million | $16.3 million |
| GAAP Loss Per Share | $0.11 | $0.09 |
| Non-GAAP Loss Per Share | $0.09 | $0.09 |
Business Highlights and Future Outlook
Indie Semiconductor Inc (INDI, Financial) continues to secure significant design wins across its portfolio, including Automatic-Emergency-Breaking (AEB) program wins with three global OEMs and lighting design wins with two of North America’s largest OEMs and a key South Korean OEM. The company also achieved functional verification of its radar SoC with a lead radar customer for a 2025 ramp and validated its next-generation radar solution for high-resolution in-cabin vital signs monitoring and vehicle dynamics sensing.
Looking ahead, Indie Semiconductor Inc (INDI, Financial) has guided Q3 2024 revenue to increase by 2.5% sequentially at the midpoint, with expectations of achieving gross margins of approximately 50%. The company anticipates a return to its industry-leading growth trajectory in 2025, driven by production ramps of its radar and vision programs.
Commentary from Management
“Indie continues to demonstrate resilience in the face of challenging automotive market conditions. We believe we’ve successfully navigated the cyclical trough that has persisted through 2024 for the automotive market and anticipate a return to revenue growth in the second half of 2024, driven by new product ramps in vehicle camera systems, power delivery, and advanced lighting solutions as well as key global flagship car launches, featuring increased indie content. Looking further ahead, we remain committed to resuming our trajectory of outsized growth in 2025 and beyond, propelled by the start of production ramps of our large-scale radar and computer vision programs,” said Donald McClymont, indie's co-founder and chief executive officer.
Financial Statements Overview
Indie Semiconductor Inc (INDI, Financial) reported total assets of $797.3 million as of June 30, 2024, compared to $818.9 million at the end of 2023. The company’s cash and cash equivalents stood at $112.3 million, down from $151.7 million at the end of 2023. Total liabilities were $294.7 million, a decrease from $341.9 million at the end of 2023.
Analysis
Indie Semiconductor Inc (INDI, Financial) has shown resilience in a challenging market environment, with its revenue remaining flat year-over-year and a slight improvement in operating losses. The company's strategic focus on securing design wins and ramping up production for key automotive technologies positions it well for future growth. However, the company faces challenges in maintaining its gross margins and managing its operating expenses. Investors should monitor the company's progress in achieving its revenue growth targets and improving its profitability metrics in the coming quarters.
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Explore the complete 8-K earnings release (here) from Indie Semiconductor Inc for further details.
