Release Date: November 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Terranet AB (FRA:TE5, Financial) successfully demonstrated its autonomous braking system, proving its concept works in real-world testing.
- The company was selected for the Mobility X lab, allowing collaboration with leading automotive companies for proof of concept projects.
- Terranet AB plans to release a Minimum Viable Product (MVP) of its Blink Vision system in 2025, moving closer to market launch.
- The company has a strong history of attracting funding, with a 95% subscription rate in its last warrant program.
- Terranet AB is in discussions with potential partners for volume production agreements, indicating strong market interest.
Negative Points
- The CEO, Magnus Andersson, announced his departure after the new year, which could impact leadership continuity.
- The company is still in the product development phase and requires additional funding to reach cash flow positivity.
- There is uncertainty regarding the disclosure of partners involved in the Mobility X lab collaboration due to confidentiality agreements.
- Testing of Blink Vision in extreme weather conditions is planned for 2025, indicating potential delays in comprehensive product validation.
- Integration of the Blink Vision system into vehicles currently requires manual adjustments, highlighting challenges in standardization.
Q & A Highlights
Q: Can Blink Vision enhance the driving experience beyond safety?
A: Magnus Andersson, CEO: Yes, while saving lives is our main focus, Blink Vision also improves driving comfort. Current systems like adaptive cruise control can be slow to react, causing driver irritation. Blink Vision's faster sensor solution reduces safety distances, making the car's response more like a human driver, enhancing the driving experience and potentially increasing customer willingness to pay for such features.
Q: Have you tested Blink Vision in extreme weather conditions, and how does it compare to other systems?
A: Pierre Ekwall, CTO: Adverse weather testing is planned for 2025 with the MVP product. Initial tests have been conducted, focusing on the system's latency, which is a key differentiator. Further tests will include weather conditions to assess performance.
Q: Will you disclose the partner involved in the proof of concept project?
A: Magnus Andersson, CEO: It's difficult to say due to confidentiality agreements common in the automotive industry. Disclosure depends on the partner's consent, and we will share information if permitted.
Q: Where will Blink Vision be integrated into vehicles?
A: Pierre Ekwall, CTO: Integration depends on the vehicle type. For personal vehicles, the system is typically placed behind the windshield or in the front grill, balancing design considerations and functionality. The system is modular to adapt to different vehicle designs.
Q: What needs to be achieved for the proof of concept with Blink Vision?
A: Pierre Ekwall, CTO: The focus is on proving the system's ultra-low latency for pedestrian detection in city environments. The proof of concept aims to demonstrate the system's speed and effectiveness in various traffic scenarios, which is crucial for entering volume production discussions.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
