Advanced driving assistance systems (ADAS) company Mobileye Global Inc. (Nasdaq: MBLY) has become the first Israeli company to publish its full year financial results for 2023. There were no surprises in the results because the company has already published preliminary results in which revenue was a little lower and operating profit a little higher than previously forecast.
Mobileye's revenue in the fourth quarter of 2023 was $637 million, up 13% from the corresponding quarter of 2022. Revenue in full year 2023 was $2.079 billion, up 11.2% from 2022.
However, 2024 will see revenue shrink according to the forecast published at the beginning of the month. Mobileye reiterated that revenue in 2024 will be $1.83-1.96 billion, down 5.7%-12% on 2023.
In the fourth quarter of 2023, Mobileye reported GAAP net profit of $63 million compared with $30 million in the corresponding quarter of 2022. Non-GAAP adjusted net profit was $228 million, up 6% from the corresponding quarter.
Mobileye president and CEO Amnon Shashua said, "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."
He added, "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.
Earlier this month Mobileye said that it expects revenue to be down 50% in the first quarter of 2024 to $229 million from $458 million in the first quarter of 2023. Analysts had expected revenue of $563.7 million. Mobileye attributes the lower revenue expectation to "excess inventory at our customers" who overstocked due to supply chain concerns. Mobileye added, "We also currently believe that revenue over the balance of the year will be impacted by inventory drawdowns to a much lesser extent. As a result, we expect revenue for Q2 through Q4 2024 on a combined basis to be roughly flat to up mid single-digits as compared to the same period in 2023, and we expect inventory at our customers to be at normal levels by the end of 2024."
In full year 2024, Mobileye expects revenue between $1.83-1.96 billion down from $2.59 billion in 2023.
After publishing the profit warning, Intel unit Mobileye's share price fell 24.5% in one day. The company's market cap is currently $22.3 billion, 31.5% higher than at its IPO in December 2022 but 41.35 below its peak in February 2023.
Published by Globes, Israel business news - en.globes.co.il - on January 25, 2024.
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