Non-GAAP |
|
|
|
|
|
|
|||||
U.S. dollars in millions |
|
Q3 2023 |
|
Q3 2022 |
|
% Y/Y |
|||||
Revenue |
|
$ |
530 |
|
|
$ |
450 |
|
|
18 |
% |
Adjusted Gross Profit |
|
$ |
366 |
|
|
$ |
332 |
|
|
10 |
% |
Adjusted Gross Margin |
|
|
69 |
% |
|
|
74 |
% |
|
(472)bps |
|
Adjusted Operating Income |
|
$ |
182 |
|
|
$ |
143 |
|
|
27 |
% |
Adjusted Operating Margin |
|
|
34 |
% |
|
|
32 |
% |
|
+256bps |
|
Adjusted Net Income |
|
$ |
181 |
|
|
$ |
114 |
|
|
59 |
% |
Adjusted EPS - Basic |
|
$ |
0.22 |
|
|
$ |
0.15 |
|
|
48 |
% |
| Adjusted EPS - Diluted |
|
$ |
0.22 |
|
|
$ |
0.15 |
|
|
47 |
% |
- Revenue of $530 million increased by 18% compared to the third quarter of 2022, primarily due to a combination of volume and ASP growth in our EyeQ® chip related revenue.
- Average System Price 2 was $53.8 in the third quarter of 2023, which is largely flat on a year-over-year basis. Higher core EyeQ prices were offset by slightly lower SuperVision volumes as a percentage of overall revenue.
- Gross Margin in the third quarter of 2023 increased by 3 percentage points as compared to the third quarter of 2022. 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® chip (and associated price increase to customers).
- Adjusted Gross Margin declined by approximately 5 percentage points in the third quarter of 2023 as compared to the prior year period. The decrease was primarily due to the increased cost of our EyeQ® chip which was passed through as a price increase to customers (as of the beginning of 2023) on a zero-margin basis.
- Positive Operating Margin of 2% in the third quarter of 2023 compared to a negative margin of 6% in the prior year period. The increase was primarily related to a higher Gross Margin and to lower operating expenses as a percentage of revenue as compared to the third quarter of 2022.
- Adjusted Operating Margin increased by approximately 3 percentage points in the third quarter of 2023 as compared to the prior year period. Operating leverage driven by revenue growth and operating expenses that were largely consistent on a year-over-year basis led to a significant decrease in operating expenses as a percentage of revenue.
- Operating cash flow for the nine months ended September 30, 2023 was $285 million. This included significant outflows related to re-building our strategic inventory of EyeQ chips, which had been significantly reduced during the semiconductor supply chain crisis in 2021 and 2022. Cash used in purchases of property and equipment was $75 million for that same period.
