Innoviz Technologies (INVZ, Financial) has entered into a Statement of Development Work agreement with a leading global automotive manufacturer. This collaboration focuses on Innoviz developing and supplying advanced LiDAR systems for the automaker's Level 3 highly automated vehicles, aiming for a 2027 start of production (SOP). The agreement outlines that, starting in the second quarter of 2025, Innoviz will tailor its InnovizTwo LiDAR systems for optimal integration within the automaker's vehicles, facilitating a comprehensive data collection phase ahead of a formal production agreement.
Within the coming months, Innoviz is set to deliver several hundred InnovizTwo units, ensuring both the automaker and the platform provider can maintain project timelines. This integration effort is pivotal for the automaker's development of a next-generation, eyes-off driving system, with an SOP slated for 2027.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 3 analysts, the average target price for Innoviz Technologies Ltd (INVZ, Financial) is $2.41 with a high estimate of $4.00 and a low estimate of $1.00. The average target implies an upside of 157.89% from the current price of $0.93. More detailed estimate data can be found on the Innoviz Technologies Ltd (INVZ) Forecast page.
Based on the consensus recommendation from 4 brokerage firms, Innoviz Technologies Ltd's (INVZ, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Innoviz Technologies Ltd (INVZ, Financial) in one year is $10.98, suggesting a upside of 1076.6% from the current price of $0.9332. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Innoviz Technologies Ltd (INVZ) Summary page.
INVZ Key Business Developments
Release Date: May 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Innoviz Technologies Ltd (INVZ, Financial) reported record revenues of $17.4 million for Q1 2025, marking a nearly threefold increase sequentially and 2.5 times year-over-year growth.
- The company achieved a gross margin of approximately 40%, the highest in its history, supported by positive contributions from NREs.
- Innoviz Technologies Ltd (INVZ) has expanded its NRE payment plan from $80 million to $95 million, with significant cash payments expected in 2025 and 2026, indicating strong customer commitment.
- The strategic partnership with Fabinet is expected to efficiently scale production of the Innovvi2 platform, enhancing manufacturing capabilities globally.
- Innoviz Technologies Ltd (INVZ) is experiencing strong momentum in the automotive sector, with significant collaborations, including an expanded partnership with Nvidia on the Hyperion platform.
Negative Points
- Despite the record revenues, the company's operating expenses for Q1 2025 were approximately $21 million, which, although reduced from the previous year, still represent a significant cost.
- The gross margin improvement is largely attributed to NREs, which may not be sustainable at the same level in the future, leading to potential fluctuations.
- The company's revenue expectations for 2025 are back-loaded, indicating potential volatility and dependency on customer timelines.
- There is uncertainty regarding the impact of US tariffs, which could affect future operations despite current minimal impact.
- Innoviz Technologies Ltd (INVZ) faces competitive pressures in the autonomous driving market, requiring continuous technological advancements to maintain its leadership position.
