• Revenue increased 13% year over year to $637 million in the fourth quarter, consistent with the preliminary results provided on January 4th, 2024.
• Operating Income and Adjusted Operating Income improved significantly versus the fourth quarter of 2022. Actual results were consistent with the preliminary results provided on January 4th, 2024.
• Diluted EPS (GAAP) was $0.08 and Adjusted Diluted EPS (Non-GAAP) was $0.28 in the fourth quarter of 2023.
• Future business backlog continues to grow, with 2023 design wins projected to generate future revenue of $7.4 billion across 61 million units.
• Generated net cash from operating activities of $394 million in the year ended December 30, 2023. Our balance sheet is strong with $1.2 billion of cash and cash equivalents and zero debt as of December 30, 2023.

JERUSALEM — (BUSINESS WIRE) — January 24, 2024 — Mobileye Global Inc. (Nasdaq: MBLY) (“Mobileye”) today released its financial results for the three months and for the year ended December 30, 2023.

“Our fourth quarter performance was very strong across the board but is understandably overshadowed by the inventory build-up at our customers which will impact our growth in 2024. We believe we have high visibility to the first quarter results, a very meaningful improvement in Q2 revenue and normalization of revenue in the second half of 2024, and are focused on executing that,” said Mobileye President and CEO Prof. Amnon Shashua. “From a business development and strategy perspective, 2023 was an extremely successful year across many fronts. We achieved design wins projected at $7 billion of incremental future estimated revenue for a second consecutive year, at elevated ASP, remarkable relative to the $2-$3 billion in 2021. We expanded the vehicle model pipeline for SuperVision and Chauffeur from 9 to approximately 30, and won our most significant advanced product program to date with a major global western OEM that we expect will not only generate multiple billions of future revenue, but also be an important endorsement in front of other customers. Further, over the course of 2023, Chauffeur went from zero OEM production programs to 3 awards across multiple models. Finally, the introduction of Driving Experience Platform (DXP) is proving to be in the sweet spot of OEM make vs buy decisions, enabling the OEM to control the driving experience while leveraging Mobileye’s efficient silicon and proven sensing, mapping, and decision-making software.”

Fourth Quarter and Full-Year 2023 Business Highlights

• Business development activity was very robust in 2023, as the large acceleration of future business generation experienced in 2022 continued. As disclosed in our CES 2024 presentation, projected future revenue from design wins achieved in 2023 totaled $7.4 billion across 61 million incremental units. This is more than 3.5x the revenue we generated in 2023.¹
• We continue to execute very well in our core ADAS business, as we launched systems into approximately 300 distinct vehicle models in 2023. Our future business pipeline of Cloud-Enhanced ADAS volume and associated REM™ recurring revenue licenses grew significantly as a result of new program awards and expansion of existing programs to additional vehicle platforms. The next-generation core ADAS chip, EyeQ™6L, remains on-track for first customer production launches in Q2 2024.
• 2023 was a very successful year for SuperVision™. Shipments were slightly above 100,000 units in 2023. On the execution side, we delivered to Zeekr consumers the full SuperVision features for highway and arterial roads in August 2023 and expanded to 22 cities by year-end as compared to 2 cities at launch. Additionally, we generated substantial new business awards for this product. We now have 4 vehicle models in production and a total of approximately 30 models in the future launch pipeline as compared to 1 vehicle in production and 9 models in the future launch pipeline at the start of 2023. This expansion was supported by design wins with Porsche, FAW, Mahindra, and a large global western OEM over the course of 2023.
• The business pipeline for Chauffeur™ took a leap forward in 2023 as we achieved our first set of production program awards with Polestar, FAW, and a major global western OEM. The favorable view of Chauffeur eyes-off technology by automakers is based on two key factors: 1) Chauffeur adds “buying your time back” as an additional value proposition on top of the safety and convenience benefits of SuperVision; and 2) the sharing of tech building blocks between SuperVision and Chauffeur creates a scalable bridge from one to the other, significantly lowering the investment needs and raising the probability of success for a consumer AV product. As announced at CES, we now project 600,000 units of future Chauffeur volume based only on design wins announced to date.
• We have made significant progress in building a robust ESG program as an independent company. After substantial benchmarking, scoping, and data collection activities over the course of 2023, we are on track to publish our first Corporate Sustainability Report as an independent company during 2024.

Fourth Quarter 2023 Financial Summary and Key Highlights (Unaudited)

• Revenue of $637 million increased 13% as compared to fourth quarter of 2022. EyeQ SoC related revenue grew 16% in the quarter.
• Average System Price ² was $52.7 in fourth quarter 2023, compared to $56.2 in the prior year period. While SuperVision shipments were roughly flat as compared to Q4 2022, SuperVision revenue as a percentage of total revenue was lower due to growth in the EyeQ SoC business, resulting in a modest decline in ASP.
• Gross Margin increased by nearly 1 percentage point in the fourth quarter of 2023 as compared to the prior year period. The impact of the lower cost attributable to amortization of intangible assets as a percentage of revenue was partially offset by the downward impact of the increased cost of our EyeQ SoCs (and associated price increase to customers).
• Adjusted Gross Margin (a non-GAAP measure) declined by 5 percentage points in the fourth quarter 2023 as compared to the prior year period. The year over year decrease was primarily due to downward impact of the increased cost of our EyeQ SoCs (and associated price increase to customers).
• Operating Margin increased by over 7 percentage points on a year over year basis. The increase was driven primarily by the cost attributable to amortization of intangible assets and stock based compensation as a percentage of revenue which was lower in Q4 2023 as compared to the prior year period.
• Adjusted Operating Margin (a non-GAAP measure) was up slightly in the fourth quarter 2023 as compared to the prior year period. Adjusted gross margin declined as explained above. This was fully offset by operating expenses which were relatively consistent on a year over year basis but down substantially as a percentage of revenue in Q4 2023. Our R&D growth plans remained intact but a year-over-year decline in the USD / Israel Shekel conversion rate and reimbursements related to employees on military reserve duty offset spending growth related to headcount and other R&D activities.
• Operating cash flow for the year ended December 30, 2023 was $394 million. Purchases of property and equipment was $98 million for that same period.