Arbe Announces Q4 and Full Year 2024 Financial Results
Rhea-AI Summary
Arbe Robotics (NASDAQ: ARBE) announced its Q4 and full year 2024 financial results, highlighting successful capital raising of approximately $70 million through various initiatives. The company reported significant progress in OEM engagements, currently working with 15 OEMs, including 11 at bid stage and 8 in advanced perception projects.
Q4 2024 revenues were $0.1 million (down from $0.35M in Q4 2023), with full-year revenues at $0.8 million (decreased from $1.5M in 2023). The company reported a Q4 net loss of $12.2 million and full-year net loss of $49.3 million. Operating expenses increased to $48.9 million for 2024.
Notable achievements include collaboration with NVIDIA for radar-based capabilities, selection by a top 10 global OEM for next-generation imaging radar, and partnerships with Zenseact and HiRain Technologies. The company projects 2025 revenues between $2-5 million and aims to secure four design-ins with automakers in 2025.
Positive
- Successful $70M capital raise strengthening financial position
- Increased OEM engagements with 15 active manufacturers
- Selected by top 10 global OEM for next-gen imaging radar
- Strategic partnerships with NVIDIA and Horizon Robotics
- Projects 150-500% revenue growth for 2025
Negative
- Q4 revenue declined 71% YoY to $0.1M
- Full year 2024 revenue dropped 47% to $0.8M
- Net loss increased to $49.3M in 2024 from $43.5M in 2023
- Operating expenses rose to $48.9M from $46.8M YoY
- Gross margin deteriorated to $0.8M loss in 2024
News Market Reaction
On the day this news was published, ARBE declined 18.67%, reflecting a significant negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Q4 and Full Year 2024 Company Highlights:
Successful Capital Raise:
Arbe successfully completed fundraising initiatives aimed at fortifying the company's financial position and providing long-term stability, raising a total of approximately
$33 million $4 million $21.5 million $15 million $0.5 million
Customer Engagements:
- Arbe experienced significant increase in both the scale and depth of our OEM (Original Equipment Manufacturer) engagements in 2024. The company is currently active with 15 OEMs, 11 of which have advanced to the bid stage, and 8 have entered the advanced perception project phase. Additionally, our RFI and RFQ pipeline remains strong and is steadily expanding.
- Arbe's chipset was chosen by a top 10 global OEM to develop its next-generation imaging radar.
- Zenseact, specializing in AI and software solutions, and Arbe's tier 1 Sensrad have announced a joint exploration of 4D high-resolution imaging radar to enhance safety in automated driving.
- Arbe collaborated with a leading European truck manufacturer to integrate its radar chipset into the manufacturer's self-driving sensor suite.
- HiRain Technologies accelerated the development of an ADAS system for a Chinese OEM, aiming to replace LiDAR with Arbe's radar chipset.
- Sensrad signed a framework agreement to supply 4D imaging radars, powered by Arbe's chipset, to Tianyi Transportation Technology in
China for vehicle-road-cloud integration technology.
Collaborations:
- NVIDIA collaborated with Arbe to enhance radar-based free space mapping and AI-driven capabilities, Arbe's high-resolution radar integration with the NVIDIA DRIVE AGX in-vehicle computing platform was showcased at CES 2025.
- Horizon Robotics, a premier provider of computing solutions for ADAS and AD, presented the integration of Weifu's 4D Imaging Radar, powered by Arbe's chipset, with Horizon's Journey 6 Automotive AI processor, as part of their ecosystem at the 2024 Beijing International Automotive Exhibition.
Growing Potential Market Demand:
Arbe has experienced increasing interest in its radar technology from leaders in the automotive industry, as well as from emerging verticals beyond automotive, and is actively working with customers to address these opportunities.
"We are excited about the progress we have made in product development and the strong industry relationships we have built in 2024," said Kobi Marenko, Chief Executive Officer. "It is now evident that hands-free, eyes-off driving requires imaging radar capabilities that we believe only Arbe and a select few other companies can provide. While the decision-making process and development timelines have taken longer than initially anticipated, we have not received negative responses or missed any opportunities, and the total addressable market continues to expand. Based on our current engagements and our ability to secure and execute contracts with leading OEMs, we estimate that by 2030, we should be able to ship approximately 5 million imaging radar chipsets to our customers.
"We are also encouraged by the strong investor confidence in Arbe, demonstrated by our recent fundraising efforts, which raised nearly
Fourth Quarter and Full Year 2024 Financial Highlights
Revenues for Q4 2024 were
Gross margin loss in Q4 2024 was similar to the gross margin loss in Q4 2023, at a level of
Operating expenses in Q4 2024 were
Net loss in the fourth quarter of 2024 was
Adjusted EBITDA in Q4 of 2024, a non-GAAP measurement which excludes expenses for non-cash share-based compensation and for non-recurring items, yielded a loss of
Balance Sheet and Liquidity
As of December 31, 2024, Arbe had
Outlook
Arbe's leading radar technology remains a top priority for key decision-makers in the automotive industry. Recent cash infusions totaling nearly
- While broader economic shifts have led to short-term delays in automakers' roll-out of advanced driver assistance systems, decision timelines have been extended. As a result, Arbe continues to engage closely with industry leaders, advancing through RFQ stages and reinforced its position for adoption. We continue with our goal to pursue four design-ins with automakers in 2025.
- 2025 annual revenues are expected to be in the range of
$2 million $5 million - We significantly strengthen our balance sheet, and adjusted EBITDA for 2025 is projected to be in the range of (
$29 million $35 million
Conference Call & Webcast Details
Arbe will host a conference call and webcast today, March 5, 2025, at 8:30 am ET. Speakers will include Kobi Marenko, Chief Executive Officer, Co-Founder and Director, and Karine Pinto-Flomenboim, Chief Financial Officer. We encourage participants to pre-register for the conference call here. Callers will receive a unique dial-in upon registration, which enables immediate access to the call. Participants may pre-register at any time, including up to and after the call start time.
The live call may be accessed via:
International: 1-(412) 317-1880
Israel Toll Free: 1-809-212-373
A telephonic replay of the conference call will be available until March 19, 2025, following the end of the conference call. To listen to the replay, please dial:
International: 1-(412) 317-0088
Access ID: 3040322
A live webcast of the call can be accessed here or from Arbe's Investor Relations website at https://ir.arberobotics.com/news/ir-calendar. An archived webcast of the conference call will also be made available on the website following the call.
About Arbe
Arbe (Nasdaq: ARBE), a global leader in Perception Radar Solutions, is spearheading a radar revolution, enabling truly safe driver-assist systems today while paving the way to full autonomous-driving. Arbe's radar technology is 100 times more detailed than any other radar on the market and is a critical sensor for L2+ and higher autonomy. The company is empowering automakers, Tier-1 suppliers, autonomous ground vehicles, commercial and industrial vehicles, and a wide array of safety applications with advanced sensing and paradigm changing perception. Arbe, a leader in the fast-growing automotive radar market, is based in
Cautionary Note Regarding Forward-Looking Statements
This press release contains, and the conference call described in this press release will contain "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, both as amended by the Private Securities Litigation Reform Act of 1995. The words "expect," "believe," "estimate," "intend," "plan," "anticipate," "may," "should," "strategy," "future," "will," "project," "potential" and similar expressions indicate forward-looking statements. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. These risks and uncertainties include the effect on the Israeli economy generally and on the Company's business resulting from the terrorism and the hostilities in
Information contained on, or that can be accessed through, the Company's website or any other website or any social media is expressly not incorporated by reference into and is not a part of this press release.
Information contained on, or that can be accessed through, our website or any other website or any social media is expressly not incorporated by reference into and is not a part of this press release.
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CONSOLIDATED BALANCE SHEETS | |||||
( | |||||
December 31, 2024 | December 31, 2023 | ||||
Current Assets: | (Unaudited) | (Unaudited) | |||
Cash and cash equivalents | 13,488 | 28,587 | |||
Restricted cash | 280 | 163 | |||
Short term bank deposits | 10,793 | 15,402 | |||
Trade receivable | 153 | 1,258 | |||
Other assets – funds held in escrow | 30,417 | - | |||
Prepaid expenses and other receivables | 2,500 | 2,026 | |||
Total current assets | 57,631 | 47,436 | |||
Non-Current Assets | |||||
Operating lease right-of-use assets | 1,782 | 1,740 | |||
Property and equipment, net | 1,374 | 1,309 | |||
Total non-current assets | 3,156 | 3,049 | |||
Total assets | 60,787 | 50,485 | |||
Current liabilities: | |||||
Trade payables | 624 | 1,149 | |||
Operating lease liabilities | 551 | 436 | |||
Employees and payroll accruals | 3,283 | 2,916 | |||
Convertible bonds | 30,614 | - | |||
Accrued expenses and other payables | 1,334 | 1,710 | |||
Total current liabilities | 36,406 | 6,211 | |||
Long term liabilities | |||||
Operating lease liabilities | 1,457 | 1,306 | |||
Warrant liabilities | 428 | 875 | |||
Total long-term liabilities | 1,885 | 2,181 | |||
SHAREHOLDERS' EQUITY: | |||||
Ordinary Shares | *) | *) | |||
Additional paid-in capital | 275,453 | 245,733 | |||
Accumulated Deficit | (252,957) | (203,640) | |||
Total shareholders' equity | 22,496 | 42,093 | |||
Total liabilities and shareholders' equity | 60,787 | 50,485 | |||
*) Represents less than | |||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
( | ||||||||
| 3 Months Ended December 31, 2024 | 3 Months Ended December 31, 2023 | 12 Months Ended December 31, 2024 | 12 Months Ended December 31, 2023 | |||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||
Revenues | 99 | 347 | 768 | 1,470 | ||||
Cost of revenues | 308 | 536 | 1,553 | 1,508 | ||||
Gross loss | (209) | (189) | (785) | (38) | ||||
Operating Expenses: | ||||||||
Research and development, net | 9,019 | 8,446 | 35,091 | 34,082 | ||||
Sales and marketing | 1,187 | 1,528 | 5,430 | 5,194 | ||||
General and administrative | 2,420 | 1,934 | 8,347 | 7,571 | ||||
Total operating expenses | 12,626 | 11,908 | 48,868 | 46,847 | ||||
Operating loss | (12,835) | (12,097) | (49,653) | (46,885) | ||||
Financial income, net | (639) | (2,812) | (336) | (3,385) | ||||
Net loss | (12,196) | (9,285) | (49,317) | (43,500) | ||||
Basic net loss per ordinary share | (0.15) | (0.12) | (0.61) | (0.60) | ||||
Weighted-average number of | 81,946,370 | 77,837,624 | 80,949,032 | 72,021,520 | ||||
Diluted net loss per ordinary share | (0.15) | (0.12) | (0.61) | (0.61) | ||||
Weighted-average number of | 81,946,370 | 77,837,624 | 80,949,032 | 72,053,372 | ||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||
( | ||||||||||
3 Months Ended | 3 Months Ended | 12 Months Ended | 12 Months Ended |
- | ||||||
December 31, 2024 | December 31, 2023 | December 31, 2024 | December 31, 2023 | |||||||
Cash flows from operating activities: | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||
Net Loss | (12,196) | (9,285) | (49,317) | (43,500) | ||||||
Adjustments to reconcile loss to net cash used in operating activities: | ||||||||||
Depreciation | 148 | 142 | 585 | 557 | ||||||
Share-based compensation | 3,143 | 3,584 | 14,542 | 13,012 | ||||||
Warrants to service providers | 547 | 197 | 1,186 | 629 | ||||||
Revaluation of warrants | (112) | (266) | (447) | (756) | ||||||
Revaluation of convertible bonds | (221) | - | (81) | - | ||||||
Issuance costs related to convertible bonds | - | - | 737 | - | ||||||
Change in operating assets and liabilities: | ||||||||||
Decrease in trade receivable | 465 | 508 | 1,105 | 694 | ||||||
Increase in prepaid expenses and other receivables | (386) | (749) | (474) | (187) | ||||||
Operating lease ROU assets and liabilities, net | 59 | 90 | 224 | 86 | ||||||
Increase (decrease) in trade payables | (346) | 549 | (553) | (103) | ||||||
Increase in employees and payroll accruals | 187 | 396 | 367 | 55 | ||||||
Increase (decrease) in accrued expenses and other payables | 463 | (110) | (376) | (3,899) | ||||||
Decrease in deferred revenue | - | (101) | - | (101) | ||||||
Net cash used in operating activities | (8,249) | (5,045) | (32,502) | (33,513) | ||||||
Cash flows from investing activities: | ||||||||||
Change in bank deposits | (10,773) | 10,213 | 4,609 | (15,002) | ||||||
Purchase of property and equipment | (65) | (59) | (622) | (249) | ||||||
Net cash provided by (used in) investing activities | (10,838) | 10,154 | 3,987 | (15,251) | ||||||
| Cash flows from financing activities: | ||||||||||
Proceeds from issuance of ordinary shares, net of issuance costs | 13,787 | - | 13,787 | 22,496 | ||||||
Issuance costs related to convertible bonds | - | - | (459) | - | ||||||
Proceeds from exercise of options | - | - | 205 | 703 | ||||||
Net cash provided by financing activities | 13,787 | - | 13,533 | 23,199 | ||||||
Effect of exchange rate fluctuations on cash and cash equivalent | (190) | 768 | 258 | 47 | ||||||
Increase (decrease) in cash, cash equivalents and restricted cash | (5,110) | 4,341 | (15,240) | (25,612) | ||||||
Cash, cash equivalents and restricted cash at the beginning of period | 19,068 | 23,641 | 28,750 | 54,315 | ||||||
| Cash, cash equivalents and restricted cash at the end of period | 13,768 | 28,750 | 13,768 | 28,750 | ||||||
RECONCILIATION OF GAAP NET LOSS TO NON-GAAP NET LOSS | ||||||||
( | ||||||||
3 Months Ended | 3 Months Ended | 12 Months Ended | 12 Months Ended | |||||
December 31, 2024 | December 31, 2023 | December 31, 2024 | December 31, 2023 | |||||
GAAP net loss attributable to ordinary shareholders | (12,196) | (9,285) | (49,317) | (43,500) | ||||
Add: | ||||||||
Stock-based compensation | 3,143 | 3,584 | 14,542 | 13,012 | ||||
Warrants to service providers | 547 | 197 | 1,186 | 629 | ||||
Revaluation of warrants and accretion | (112) | (266) | (447) | (756) | ||||
Convertible bonds accretion | (221) | - | (81) | - | ||||
Non-recurring expenses related to convertible bonds and ATM | - | 805 | 214 | |||||
Non-GAAP net loss | (8,839) | (5,770) | (33,312) | (30,401) | ||||
Basic Non-GAAP net loss per ordinary share | (0.11) | (0.07) | (0.41) | (0.42) | ||||
Weighted-average number of shares used in computing basic Non- | 81,946,370 | 77,837,624 | 80,949,032 | 72,021,520 | ||||
Diluted Non-GAAP net loss per ordinary share | (0.11) | (0.07) | (0.41) | (0.42) | ||||
Weighted-average number of shares used in computing diluted | 81,946,370 | 77,837,624 | 80,949,032 | 72,053,372 | ||||
RECONCILIATION OF GAAP NET LOSS TO ADJUSTED EBITDA | ||||||||
( | ||||||||
3 Months Ended | 3 Months Ended | 12 Months Ended | 12 Months Ended | |||||
December 31, 2024 | December 31, 2023 | December 31, 2024 | December 31, 2023 | |||||
GAAP net loss attributable to ordinary shareholders | (12,196) | (9,285) | (49,317) | (43,500) | ||||
Add: | ||||||||
Financial income, net | (639) | (2,812) | (336) | (3,385) | ||||
Depreciation | 148 | 142 | 585 | 557 | ||||
Stock-based compensation | 3,143 | 3,584 | 14,542 | 13,012 | ||||
Warrants to service providers | 547 | 197 | 1,186 | 629 | ||||
Non-recurring expenses related to ATM | - | - | 68 | 214 | ||||
Adjusted EBITDA | (8,997) | (8,174) | (33,272) | (32,473) | ||||
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SOURCE Arbe
FAQ
What were Arbe's Q4 2024 financial results compared to Q4 2023?
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