“Q2 2022 came in above the top end of our guidance, marking a strong first half for the year, and positioning us for a better than originally anticipated full year 2022,” said Dror Heldenberg, CFO of Valens Semiconductor.
“For the third quarter of 2022, revenues are expected to range between $22.5 million and $22.8 million. Gross margin is expected to range between 65.4% and 66.1%, and Adjusted EBITDA loss is expected to be in the range of $(6.2) million to $(5.6) million.
“We are also raising our revenue, gross margin and Adjusted EBITDA guidance for the full year 2022. The company now expects revenues to range between $89.1 million and $89.8 million, up from the prior range of between $86.5 million and $88.0 million. Most of this increase is attributed to audio-video, while also essentially doubling the automotive revenue from the full year 2021. Gross margin is expected to range between 68.0% and 68.5%, up from the prior range of 66.0% and 67.3%. Adjusted EBITDA loss is expected to be in the range of $(25.7) million to $(24.3) million, substantially better than our previous guidance of $(37.2) million to $(35.5) million, due to the greater than expected revenues and improved gross margin. In addition, we expect to continue to see a benefit from a strong USD on our Israeli shekel-based expenses. Finally, we refined our automotive R&D focus for the next two years to products supporting sensor to ECU connectivity. This will allow us to slow the pace of hiring and reduce our investment in automotive R&D without impacting revenue opportunities or changing our longer-term technology roadmap.
“We are expecting to reach adjusted EBITDA breakeven by the end of next year, as the modest increase in 2023 R&D expenses from the lowered 2022 level will be offset by anticipated year-over-year revenue growth,” concluded Heldenberg.
Adjusted EBITDA is a non-GAAP measure. See the tables below for additional information regarding this and other non-GAAP metrics used in this release.
