Company presentation Innoviz

Hello dear getquin community,

I'm introducing a company here for the first time today. Of course, a lot of it involves AI. I would be very interested in how you see the company.

Today I would like to give you a detailed stock presentation of Innoviz Technologies $INVZ to you. We'll take a look at the company itself, the booming LiDAR market, potential disruptive technologies and, of course, the competition. The whole thing is rounded off with the most important key figures for a well-founded analysis.

What does Innoviz Technologies do?

Innoviz is an Israeli company that specializes in the development and production of LiDAR sensors (Light Detection and Ranging)specialized. But what exactly is LiDAR? Imagine a car constantly emitting laser beams and measuring how long it takes for them to be reflected by objects in the surrounding area. This data can be used to create a high-precision 3D map of the surroundings in real time. This technology is a crucial building block for autonomous driving and for advanced driver assistance systems (ADAS).

Innoviz has set itself the goal of offering high-performance LiDAR sensors that are also cost-effective and suitable for mass production. The company has already established partnerships with renowned automotive suppliers such as Magna International and can rely on investors such as SoftBank Ventures Asia and Samsung and Samsung.

The overall market for LiDAR systems: a market with enormous growth potential 📈

The LiDAR market is currently in an exciting growth phase. Driven by the ongoing development in the field of autonomous driving and the increasing integration of ADAS in new vehicles, demand is forecast to grow rapidly.

According to an analysis by Fortune Business Insights, the global LiDAR market was estimated at USD 2.63 billion in 2024. By 2032, this market is expected to grow to 9.68 billion US dollarswhich corresponds to a compound annual growth rate (CAGR) of 18,2% corresponds. MarketsandMarkets even forecasts market growth to 12.79 billion US dollars by 2030, with an annual growth rate of 31,3%between 2025 and 2030.

This growth will be driven primarily by the automotive sector. However, LiDAR systems are also increasingly being used in other areas such as intelligent infrastructure, surveying and mapping as well as robotics.

Disruptive technologies: What could threaten LiDAR?

Although LiDAR is considered a key technology for autonomous driving, there are also other approaches and further developments to keep an eye on:

• Solid-state LiDAR: This is not so much a disruptive technology as the next evolutionary stage, in which Innoviz is also significantly involved. Unlike mechanical LiDAR systems, which use rotating mirrors, solid-state LiDARs have no moving parts. This makes them more robust, smaller and cheaper to manufacture.
• 4D radar: Advanced radar systems can detect the height of objects in addition to distance, angle and speed. They are often more reliable than LiDAR in poor weather conditions such as rain or fog, but generally have a lower resolution.
• Camera-based systems: Companies like Tesla rely primarily on cameras and artificial intelligence to analyze the environment. This approach is more cost-effective, but has disadvantages compared to LiDAR when it comes to precise distance measurement and in poor lighting conditions.
• Newer LiDAR technologies: Developments such as Frequency Modulated Continuous Wave (FMCW) LiDAR promise even greater accuracy and can also measure the speed of objects directly. Also Flash LiDARwhich works in a similar way to a camera flash and captures the entire scene at once, is also a promising further development.

The market environment: who are the competitors?

The LiDAR market is highly competitive. In addition to Innoviz, there are a number of other important players fighting for market share. The main competitors include:

• Luminar Technologies (LAZR): One of the best-known names in the LiDAR sector with partnerships with Volvo and Mercedes-Benz, among others.
• Aeva Technologies (AEVA): Focuses on FMCW technology and has worked with Porsche, among others.
• Cepton (CPTN): Has received a significant series order from General Motors.
• Ouster (OUST): Offers a wide range of LiDAR sensors for various applications.
• Velodyne Lidar: One of the pioneers in the LiDAR market that merged with Ouster.

These companies compete not only on technology, but also on key partnerships with automotive manufacturers and suppliers.

Detailed analysis of Innoviz key figures (based on Q2 2025)

To better understand Innoviz's financial situation, we need to look deeper than just revenue and net loss. As a young technology company in the growth phase, the cost structure and liquidity are crucial.

Profit and loss statement (P&L):

• Turnover (revenue): Revenue of approx. USD 24.27 million (TTM) is currently generated mainly through the sale of samples to automotive manufacturers (OEMs) and Tier 1 suppliers as well as through development services. The really big jump in sales is not expected until series production for large car models starts.
• Cost of revenue:These are still relatively high, resulting in a low gross margin (approx. 29% in TTM). In the current phase, in which production is not yet in full swing, this is normal. With increasing quantities and optimized processes, the gross margin should increase significantly.
• Operating expenses: This is the key to the current loss.
• Research & Development (R&D):This is the largest cost block. Innoviz is investing heavily in the further development of its LiDAR sensors (e.g. the next generation "InnovizTwo") and the associated software. High R&D expenditure is a sign of innovative strength, but has a negative impact on profitability in the short term.
• Sales & Marketing (S&M): The costs of setting up sales structures and acquiring new customer projects are also significant.
• General administrative expenses (G&A): These comprise the usual administrative costs of a listed company.

Balance sheet:

• Liquidity (cash and cash equivalents):Cash and cash equivalents of around USD 79.4 million are the lifeline of the company. It is crucial to minimize the "cash burn rate" (the monthly or quarterly consumption of cash). This rate, divided by the available cash, gives an indication of how long the company can manage without fresh capital.
• Inventories: An increase in inventories can be an indicator that the company is preparing for upcoming deliveries as part of series orders.
• Debt: Debt is currently still at a manageable level compared to the cash position and market capitalization, but should be kept an eye on.

Outlook for the coming quarters

The outlook for Innoviz is strongly linked to the achievement of specific milestones in its partnerships. The company management has communicated the following priorities for the near future:

Series production ramp-up: The most important point is the start and ramp-up of series production for the programs with BMW and Volkswagen. In the coming quarters, the focus will be on securing the supply chains and scaling up production at partner Magna. Sales from these series orders will have a significant impact on the key financial figures.

Order book (forward-looking order book):Innoviz regularly communicates the size of its order book. This represents the estimated future sales potential from orders already won. An increase in this figure in the coming quarterly reports would be a strong bullish signal, as it increases long-term sales visibility.

Further design wins: Management has emphasized that it is in advanced discussions with additional automotive manufacturers. A so-called "design win"i.e. the decision of another major OEM to choose Innoviz as a LiDAR supplier, would be an important catalyst for the share price.

Cost control and path to profitability:While the focus is on growth, management will also need to pay increasing attention to controlling costs and demonstrating a clear path to profitability. As sales from series production increase, the operating margin will improve. However, analysts expect that the company will still be several quarters, if not years, away from profitability.

Sales are therefore expected to increase gradually in the coming quarters, while losses will remain high as investments in R&D and the production ramp-up continue.

Partnerships: The foundation of success

Partnerships are of vital importance to Innoviz as they validate the technology and secure access to the mass market.

• BMW Group: This is the first and most important partnership to date, leading to series production. Innoviz's LiDAR sensor InnovizOne will be installed via the supplier Magna in the flagship model BMW 7 Series and the electric counterpart i7 electric counterpart. This deal was a milestone for Innoviz and the entire LiDAR industry as it proved that the technology is ready for use in premium vehicles.
• Volkswagen Group / CARIAD: This is potentially the largest deal in the company's history. Innoviz has been selected by CARIAD, the software and technology arm of the Volkswagen Group, as a direct LiDAR suppliersupplier. This means that the InnovizTwo sensors will be integrated into future models of various Group brands (e.g. Audi, VW, Porsche). The volume of this order is many times larger than that of the BMW deal and will ensure capacity utilization for many years to come.
• Magna International: Magna is one of the largest automotive suppliers in the world. The partnership is doubly valuable: Magna not only acts as a Tier 1 supplierthat integrates Innoviz's LiDAR into its systems and supplies them to OEMs such as BMW, but is also an investor in Innoviz as an investor. This close cooperation helps enormously with industrialization and quality assurance for the demanding automotive industry.
• Other programs: Innoviz is also working on projects outside of passenger cars. These include autonomous shuttles ("Shuttles & Pods") and the monitoring of infrastructure such as ports and logistics centers. These areas offer additional diversification and growth opportunities.

Core thesis of the article (A Bull Market is coming - Motley Fool)

The article positions Innoviz as a highly interesting but also risky growth stock in the field of artificial intelligence (AI) and autonomous driving. The author argues that the stock has significant upside potential (the stock references a Wall Street forecast of 300% growth) as the market for LiDAR (Light Detection and Ranging) systems is set to explode in the coming years and Innoviz is extremely well positioned to capitalize on this.

Main arguments for Innoviz

Huge and growing market: At the heart of the argument is the forecast for the LiDAR market. The article cites estimates that the market for automotive LiDAR systems will grow from a few hundred million dollars today to over 40 billion dollars by 2030 could grow. This tremendous growth presents a huge opportunity for companies like Innoviz.

Major design wins and partnerships: Innoviz is not portrayed as just any LiDAR company, but one that already has key successes under its belt. The most important point is the partnership with the Volkswagen Groupone of the largest car manufacturers in the world. Innoviz has been selected as a direct LiDAR supplier for several of the Group's brands. This deal alone secures billions in future revenue for the company. Such "design wins" are extremely important in the automotive industry as they mean long-term supply contracts for future generations of vehicles.

Strong order book: These partnerships result in an impressive order book. The article highlights that Innoviz's "forward-looking order book" (a measure of expected future revenues from existing contracts) is a multiple of the company's current market capitalization. This suggests that the stock is highly undervalued relative to the future revenues already secured.

Technological guidance: Although the article does not delve deep into technical analysis, it is implied that the choice of major OEMs such as VW for Innoviz is a testament to the high performance and cost efficiency of the LiDAR sensors and associated software.

Risks and counter-arguments

The article does not conceal the risks and paints a balanced picture:

• Long lead times in the automotive industry: The big revenues from the contracts with VW and others will only flow in a few years when the relevant vehicle models go into mass production. Until then, the company will have to overcome lean periods.
• Current unprofitability: Like many growth companies in the technology sector, Innoviz is currently unprofitable. The company is investing heavily in research, development and the expansion of production capacity, which is leading to losses.
• High competition: The LiDAR market is highly competitive. There are many competitors and there is always the risk that other technologies will prevail or that competitors will negotiate better contracts.

Conclusion of the article

The conclusion is clear: Innoviz is a speculative speculative but potentially very rewarding investment for long-term investors who believe in the future of autonomous driving.The author sees the stock as a "hand-over-fist" buying opportunity because the huge future potential, already reflected in the order book, is not nearly priced in by the current share price. However, investors must have the patience and risk tolerance to bridge the time until the major sales are realized.