Mobileye IPO

Mobileye announces 38% increase in revenue to $450 million in first report since IPO

The Israeli company's first report since its split from Intel revealed that most of its revenue still comes from assistance and alert systems and not from fully autonomous vehicle systems

Mobileye published on Wednesday its first financial results since its IPO on Wall Street a little over a month ago. The company announced that it ended the third quarter of 2022 with a 38% increase in revenue to $450 million.
The company improved its gross profit rate by one percent over the past year, with its gross margin reaching 48%. However, operationally it is still showing a loss amounting to $25 million.
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הנפקת מובילאיי
הנפקת מובילאיי
Mobileye IPO
(Photo: AFP)
All in all, Mobileye registered a loss of $45 million in the quarter.
Mobileye's main expense is R&D, which doubled in the third quarter compared to the corresponding period and rose to $200 million. Marketing, administrative and general expenses were very low, but they are likely to increase if Mobileye will list them separately from Intel.
The losses recorded by Mobileye arise from the way they split from Intel, which purchased Amnon Shashua’s company for $15 billion.
Last October, Mobileye was listed on Nasdaq at a value of $16.7 billion. As part of its transformation to a public company, the goodwill that was previously listed in Intel's reports has been passed on to Mobileye in the form of a clause of "reduction of intangible assets".
After deducting goodwill, which amounts to $100 million every quarter, Mobileye has an operating profit of $143 million and a net profit of $114 million, which is 7% higher than the net profit in the corresponding period. From the beginning of 2022, Mobileye's activity generated $395 million.
Mobileye also provided a forecast for the last quarter of 2022 (the current quarter) and for the entire year. The company is expecting annual revenues to be approximately $1.8 billion, which means that in the current quarter it will cross the half billion dollar threshold in revenues for the first time, which are expected to range between $527-$545 million.
This is a growth rate of about 30% compared to 2021, but at this stage it is stemming from assistance and warning systems for drivers and not from autonomous vehicle systems. This is also a slowdown in the rate of growth compared to 2021, when the company's revenues increased by more than 40%.
Mobileye stated that it slightly raised the average price of their system to $53 compared to $45.7 in the corresponding period following the integration of more advanced components.

In the IPO, held at the end of October, 51.9 million Mobileye shares were issued at a price of $21. Intel still remained the controlling owner. Since the IPO and despite the volatility on Wall Street, Mobileye's stock had jumped by 45% and the company entered trading on Wednesday with a market cap of $24.5 billion.
This valuation is closer to Intel's original plan, which they had to reduce several times in light of the financial situation. The original plan was to issue Mobileye at a valuation of $50 billion.