Intel Corp. Israeli self-driving cars and advanced driver-assistance systems (ADAS) unit Mobileye Global Inc. (Nasdaq: MBLY) has seen its share price double in just over three months.
The Jerusalem-based company completed its flotation on October 25, 2022 at $21 per share and a market cap of $17 billion. On Friday the company's share price closed up 1.33% on Wall Street at $42.78, giving a market cap of $34.306 billion.
Last month Mobileye reported its fourth quarter and full year 2022 results. Fourth quarter revenue was $565 million, up 59% from $356 million in the corresponding quarter of 2021. GAAP earnings per share was $0.04 and non-GAAP earnings per share was $0.27 in the fourth quarter. In 2023 guidance, Mobileye sees revenue between $2.192 billion and $2.282 billion.
Mobileye president and CEO Prof. Amnon Shashua said, "Our fourth quarter performance is an excellent example of how ramping volumes of our advanced solutions can impact financial performance, as higher average system price amplified strong volume growth, leading to 59% overall revenue growth.
"I’m also very pleased with our business development traction as our OEM customers are increasingly recognizing the scalability of our product portfolio for the following reasons: 1) Adopting SuperVision, an eyes-on, hands-off ADAS system operating across a broad operational design domain (ODD) makes scaling to eyes-off autonomous systems an incremental step rather than a series of moonshots; 2) Mobileye’s EyeQ KitTM software development kit, developed over the last five years, enables OEMs to differentiate their systems on top of our core technology assets; and, 3) Regulatory and consumer proof-points will be increasingly important and Mobileye has a clear, multi-pronged approach for data-driven validation.
"As planned, we will continue to invest heavily (while maintaining strong profitability) during 2023 to productize and launch our advanced solutions as my confidence level on delivering high returns to all stakeholders has never been higher."
Despite the strong performance by Mobileye's shares, it should be remembered that the company originally planned last year to hold the IPO at a company valuation of $50 billion, after Intel acquired it in 2017 for $15.2 billion. But the dire situation on the markets forced Intel to slash Mobileye's valuation. Mobileye aimed lower in the hope that the low value would tempt investors and create a momentum of demand that lifted the company's market cap and this strategy appears to have been effective.
Published by Globes, Israel business news - en.globes.co.il - on February 5, 2023.
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