It may be hard to believe in today’s times, but self-driving car makers still have a future. Mobileye published (PDF), this Thursday January 26, very positive results. The Israeli company specializing in advanced driver assistance systems expects to quadruple its turnover in 2023.
A successful independence for Mobileye
Against the current of the market, Mobileye, of which the Intel group is the majority shareholder, remains in good financial health. The company announced revenue growth of 59% to $565 million. In its press release, it attributes this progress to the increase in the average selling price of its systems, which went from $48.30 in 2021 to $56.20 in the fourth quarter of 2022. The start-up is pleased to have a “Robust” balance sheet with $1 billion in cash and no debt as of December 31, 2022.
Founded in 1999, Mobileye is a major player in the automotive industry. In 2017, Intel acquired the Israeli startup for $15.3 billion. Four months ago, the group decided to take the company public while remaining the majority shareholder with 90% of the shares, or 750 million shares. A decision that paid off, the share price went from $28 on Oct. 26 to nearly $36 today, up 24%.
In a grim economic environment, this progression is surprising. The fear of an economic crisis has slowed down the attractiveness of the sector, investors are more reluctant to bet on less concrete projects. Companies considered to be future pioneers in the sector have been paralysed. French automaker Navya filed for receivership, Alphabet subsidiary Waymo cut many jobs, and in October Argo AI went out of business.
The difference between all of these companies and Mobileye: the number of customers. Last October, more than fifty brands and 800 car models used the Intel subsidiary’s driver assistance technologies (ADAS). It specializes in particular in driving assistance and trajectory maintenance such as white line tracking. Last month, the company’s chief executive, Amnon Shashua, said the company had ” a revenue pool of more than $17 billion through 2030 to develop its core ADAS He also mentioned Supervision Technology, which brings together many engineering companies that use Lidar sensors to get a panoramic view of the vehicle. According to him, she will be at very important growth driver in 2023 and beyond “.
In 2023, Mobileye wants to quadruple its growth. Technology maker ADAS aims to achieve revenues of between $2.19 billion and $2.28 billion. A great prospect that matches the company’s ambition to reach $17 billion in annual revenue within the next decade.
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