To Luminar's second quarter of 2023 business update call. My name is Aileen Smith, and I am Luminar's Head of Investor Relations. With me today are Austin Russell, Founder and Chief Executive Officer, and Thomas Fennimore, Chief Financial Officer. As a quick reminder, this call is being recorded, and you can find the earnings release and slides that accompany this call at investors.luminartech.com. In a moment, you'll hear brief remarks from Austin and Tom, followed by questions posed to the Say platform, and then live questions from the analyst community. As with last quarter, we've extended the submission window for questions that submitted via Say, through the end of our call, should there be any that are upvoted during our call. Before we begin the prepared remarks in Q&A, let me remind everyone that during the call, we may refer to GAAP and non-GAAP financial measures. Today's discussion also contains forward-looking statements based on the environment as we currently see it, and as such, does include risks and uncertainties. Please refer to our press release and business update presentation for more information on the specific risk factors that could cause actual results to differ materially. With that, I'd like to introduce Luminar's founder and CEO, Austin Russell. Hey, everyone, thanks, Aileen. Welcome everyone to our quarterly business update for the second quarter of 2023. Today we are actually live from our new Princeton, New Jersey office, after Ford's Argo AI LiDAR team, formerly known as Princeton Lightwave, decided to join us. You know, as you probably know, we already have some of the foremost global leaders and experts in specialized semiconductor designs for lasers, receivers, and processing electronics, you know, with our new entity that, we formed Luminar Semiconductor, Inc. The team here is definitely excited to be able to partner with them to help advance and accelerate our chip roadmap holistically. Jumping right in, thought it could be good to share some slides for an update. I'll do exactly that. Let's see here. This is how you know we do it live for real. All right. First and foremost, for the second quarter, you know, we're on track to be able to meet or beat all of our business and financial milestones for 2023, and that's despite, you know, a broader, challenging macroeconomic backdrop. We've been able to successfully execute, you know, advance our roadmap and attract some of the best leadership talent in the world to be able to drive our company at full speed ahead. Again, proud to be able to say the progress that we've made, but I'll touch on each of these different areas throughout the presentation before handing it off to Tom to talk more about the financials. First, when it comes to industrialization, you know, completing industrialization and scaling for a high volume is the key to being able to unlock, you know, additional exponential growth in our business. We remain on schedule to meet the automaker requirements to achieve this high volume start of production by the end of the year in the new high volume facility in Monterrey, Mexico. In Q2, specifically, went through rigorous validation for the facility, which is underway and, you know, currently going through other optimization cycles in preparation for the big launch. We expect to be able to achieve the required capacity to be able to support our global automakers for serious production over the course of the next handful of months before the end of the year, and have that successfully demonstrated with them. Also in Q2, driven by rapidly growing demand for Luminar in Asia, TPK and Luminar announced a partnership for which TPK will create an even higher volume factory for Luminar, which will primarily support vehicles delivered in China and the Asia Pacific region. Luminar has become one of the only Western autonomous technology companies to be awarded substantive business in China, both domestically and from global OEMs, and which just again, another key attribution as to the promise of the technology and the impact that we can be able to have at global scale. Alongside this accelerating growth, you know, in Asia, I'm happy to announce that as of last week, TPK has decided to make an additional $10 million cash investment into Luminar stock, with even greater conviction following their previous investment as they get to know the company even better. Next on, when it comes to a product and technology roadmap, for some of that, for that milestone and that side of the business, we remain on track to be able to meet our milestone and the key elements of that, including the C-phase for IRIS+ before year-end. Specifically, IRIS+ began validation and testing from its lead OEM customer in Q2, following the B sample deliveries, like one of the ones that I just saw one around here for testing, that I'm sure we can... I'll give a reference point, but we have them actually, even at Princeton, they're helping out with some of the validation process here, which is, which is pretty cool. When it comes to our point clouds, they're looking great. You know, we've begun data collection and actually in testing already on the OEM-provided vehicle platforms that the lead surge production OEM for IRIS+ has given us. We've driven them now over 100,000 km so far in terms of testing, with more to come. These initial results are very exciting and are critical for our customer software development and program milestones. Excited to have this multi-billion dollar OEM program moving at full speed ahead. Our target to complete our 2023 software deliverables for both Volvo and Mercedes SOPs remain on track. In Q2, we also reached a key software milestone for the Volvo program of becoming feature complete, so to say, for our software for them. While on the topic of Volvo, we wanted to make sure to also just get a chance to clear up some confusion that seemed to emerge like a few weeks ago, regarding Volvo's vehicle launch timing and Luminar, which our timing is ultimately independent of the Volvo vehicle launch timing. Nothing has changed since Volvo's announcement back in May, you know, regarding the EX90 launch timing, for which we had mentioned at the time that we had already taken that into account, previously when being able to provide guidance, you know, for our business growth and didn't have that embedded this year already. Like I said, we were in a good place. It's not something that was a surprise to us, necessarily, but some seemed to speculate and publish articles more recently that Luminar was the cause of this. Volvo actually issued a statement directly since then, just to be able to clarify that, and was basically saying that the adjusted time plan is connected to the initial time needed that they need for their software development, not related to Luminar. There's some work to do. Ultimately, like I said, when it comes to the production ramp, we're more excited as ever, and Volvo has as much conviction as ever in us to be able to see that successfully scaling with EX90 and beyond. I think they're seeing obviously great success in terms of their pre-orders, going far beyond the expectations of what they could have. Volvo is an incredible partner of ours. They're not the only partner of ours by any means. You know, we have now over a dozen major commercial wins, as we're saying, you know, we're continuing to move full speed ahead as it relates to our timeline, to be able to reach that SOP readiness to the high volume facility by year-end. Looking forward to a successful launch and ramp of that, as we really begin to start next year, converting this multi-billion order book that we have into revenue and sort of begin that process from the beginning and seeing that accelerate throughout 2025. When it comes to, you know, next generation LiDAR, you know, we also mentioned that was one of the goals. We expect to have that prototyped by year-end, and we believe that we have a few new breakthrough components to the technology that start with Luminar Semiconductor and move their way all the way up through the stack. And ultimately, that's going to be the LiDAR that we see as having the opportunity to be standardized across the broader industry on every new vehicle produced, ultimately. Obviously, you may recall our target market penetration by the end of the decade is only 3%-4%, because we think even with that, we'll be able to achieve around $5 billion in revenue and $2.5 billion EBITDA, with as much as a $60 billion forward-looking order book at that point, even with just a relatively small amount of market penetration. By the time we're done with this next-gen LiDAR, I think that there's ultimately a clear path to being able to, you know, take that to 100% at the end of the day. With these new safety improvements that we are able to deliver on cars, as well as the autonomous capabilities, that makes all the difference to being able to make this successful. We'll talk a little bit more about some of the regulatory tailwinds that we have that are fortunately in our favor later on. Combined with our other initiatives, I think that's how you ultimately are able to achieve the goal of becoming one of the great technology companies of our generation. Of course, we're taking it 1 step at a time in a measured capacity and executing the plan. Lastly, when it comes to commercial success, you know, we're on track to grow our forward-looking order book by at least $1 billion this year. We're continuing to execute across assigning new deals across hardware, software, AI, semiconductors this year as OEMs and our customers only further their conviction in Luminar. Exciting stuff. Just kind of taking a step forward, and sharing a few highlights about some of the significant commercial progress on that note. First, starting with Polestar, this is now, you know, what, like the third vehicle model that consumers can now order, with Luminar equipped. And this is the Polestar 3. So exciting that they're now making this available, to consumers, and again, just showing further conviction and making that big step forward. So, when it comes down to it, the revenue ramp from these contracted Polestar vehicles ultimately begin, you know, over the next, year and a half as that, you know, converts into business and we start shipping at scale. As you take a look, you know, one thing that I think is unique, is that OEMs are really actively marketing Luminar as a key value proposition of the vehicle, the fact that it is equipped with Luminar. You really take a look at, you know, in these different vehicle programs and configurators and what they're showing to consumers. There's really only two brands that become visible outside of the automaker brand, you know, and that's us and oftentimes, like a high-end audio system, you know, brand or manufacturer like Bowers & Wilkins, for example. I think it's just really cool to see that, for the first time, you have automakers that are proud to be able to have a breakthrough technology that's out on the vehicle, because it is really something that's fundamentally differentiated than, you know, other commodities. Something that has an opportunity to power the broader industry more generally. It's very tech forward in its fashion capacity. Point is, Luminar is being positioned as a premium feature. You know, we could spend $10s or $100s of millions marketing our product to generate awareness, but we don't have to. Customers are doing it for us. Best marketing comes from the customer, and at the end of the day, that's priceless. There we go. Obviously, like I said, you're not really going to see that across the rest of the AV and LiDAR landscape. I think that's relatively unique to Luminar in terms of how meaningful that is. We're going to go through each of these other 3 between Mobileye, Nissan and Plus. In just a second, we have some dedicated slides for that. First, Nissan, they've since recently unveiled some additional driver assistance features that they have on their cars. Advanced intersection collision avoidance is the latest addition that they have to the development stack with Luminar. They've publicly stated now they plan to be able to introduce this, you know, with targeting with Luminar, select new models by the mid-2020s, and then ultimately virtually every new vehicle model by 2030. We all know the size of Nissan and the impact that they can have on the industry when it comes to saving lives, and then obviously value for our business and their business. They're very excited to be able to move full speed ahead. Like I said, it's, it's great to be able to see them actually already taking things to the next level in terms of these advanced capabilities. You can actually see on the graphic on the right, both the camera data of what it can show, and then the Luminar LiDAR data in the background, for what they're showing off, of how they can already see the motorcycle approaching in the distance at high speed. For scenarios like, for example, running a red light, that's very important for safety. Next up, we have Mobileye. So great to be able to see the progression that they've had and some recent major progress. This kind of goes back to 2020, when we were, really engaging with them full speed ahead, with the Luminar Hydra, kind of back in the day on that, and Mobileye's first generation autonomous vehicle development. I think that was at their, investor day they had. In 2021, they started, moving to the, NIO platform and then, you know, worked on a public display of Mobileye Drive with Luminar. That was, exciting to be able to show that off and, you know, testing development platform. With, with Luminar and then showing the capabilities of what we can be able to do together, was a very, incredible progress, and it's an incredible company in terms of what they've been able to do. More generally, you know, obviously, they're strong leaders when it comes to a, you know, camera, vision, ADAS system, more generally on cars. You know, that's that's something to be said when they partner with someone like us, obviously on the LiDAR side. Exciting opportunity. Now what we've seen is a lot of those fruits of the labor start to be deployed with automakers. You know, one of which they actually now just announced and as an OEM being able to adopt a Mobileye Drive system. Of course, that that's something that is featuring Luminar, you know, out on the out on the car. That's a very recent deployment they're just doing in the U.S. I think this one was in Austin, Texas. Yep, just gives a, a reference point. I think this is where you see these incredible companies like Mobileye and NVIDIA, that, you know, we have these, you know, special partnerships with. As we collaborate successfully with them and, you know, develop our programs with them, and they build their software on top of our lidar and data and, you know, collaborate with us, on some cases with our software as well, those wins start to manifest itself across the rest of the landscape, where it's also not just, you know, us working with OEMs, but them, you know, collaborating with OEMs and sort of pushing us into different, different products and solutions. They own a huge part of the landscape. Also, recent Q2 development was Luminar and Plus. You know, we successfully partnered with Plus and became their exclusive provider of lidar for PlusDrive, which is their factory-installed assisted driving system for commercial trucks. In addition to that, we are also collaborating on this AI-assisted driving software for commercial trucking OEMs. This is something that is an exciting opportunity for us together to be able to do from not just the hardware standpoint with them, but then also the software. You know, again, this is kind of a scenario where we get to, as we sort of expand our horizons and really get into commercial trucking even more, which you see as sort of a key emerging market for Luminar. You know, get to displace some of the other legacy lidar systems and actually get on the, these kinds of trucks with exciting new technology platform. Plus and Luminar are also going to be collaborating across the board for and targeting for some of the other areas in Luminar's business, including everything from insurance to HD mapping to even the Blade sensor integration. It'll be great. I think one thing that's meaningful with Plus, and you, you, you can look this up, but they're one thing that attracted us to them, which you may have not have heard of them before, but they're even though they're on the smaller company in terms of size of the companies, they're working with some of the largest logistics companies in the world. That was really what we saw as a key opportunity and channel to be able to get into the largest truck OEMs and, you know, logistics companies successfully with our technology and be able to scale accordingly. It's because public, like the Amazons of this world, you know, that are able to make that happen with Plus. You know, very exciting opportunity. When it comes to the regulatory side and landscape, there's actually some really interesting stuff, is that whereas a lot of the autonomous vehicle landscape is facing regulatory headwinds, we actually have a lot of regulatory tailwinds in our favor. Really what this means is that, the challenges and hurdles that are put up for autonomous vehicles generally come down to, when you start ripping out the steering wheel systems and braking systems and other things in vehicles, where you have to be able to get, you know, specialized, extensive permitting and, registration. It's not, there's, like, really no regulatory framework to be able to allow that yet. When it comes to getting better safety or even enabling, you know, autonomy on existing production vehicles or production vehicle programs, there's a much, much better regulatory framework. Not only that, it's gone from like, will regulators even allow it, you know, for, like, full autonomous vehicles and robotaxis and robotrucks, to, now regulators are starting to require, these kinds of capabilities for better safety. This is where our big bet on practice safety is really starting to to pay off as automakers rapidly adopt it. Then, of course, you know, you have the regulators that want to be able to also help save additional lives out in the world and in the landscape for for a good cause that we stand for. That includes mandating. Again, these are, this is not something just to get a 5-star rating on a car. This is, like, literally mandated. Like, every car must have this. You know, automatic emergency braking at higher speeds and, you know, pedestrian automatic emergency braking at night to be able to detect it, while also discouraging and, you know, increasing the requirements around false positives. That really helps push OEMs to be able to adopt Luminar LiDAR. It's already started publishing draft regulation to be able to work at these higher speeds. I think you get the gist of it and some funny headlines around Braking Bad, which is absolutely true. AEB is absent when you need it most, and couldn't be more relevant. We're doing plenty of our own research and studies around this and, like, benchmark studies that I think we'll have more to talk about in the future. Ultimately, all of this work, when it comes to more advanced safety and, you know, highway autonomy capabilities, is powered in some way, shape, or form, not just by the Luminar hardware, but by AI as well. This is where, since 2017, we've been developing what we call the Luminar AI Engine, where we've sort of aggregated this all together now, between, you know, input, you know, our AI Engine output and across products from, from bracket safety and highway autonomy to mapping and localization to perception and detection. One highlight, by the way, just a, a shout-out to the mapping team for their first development, you know, deal with an OEM on that front. That's an exciting one. Really, all of this comes back down to what we can do. I don't need to hash through all the details here around, around what we're doing. You know, again, this is a huge investment led by CJ Moore, who's previously was a longtime director of Autopilot over at Tesla and directed many of the autonomous systems work at Apple. It's great, great stuff going on. We, as you may recall, we also partnered with Scale AI, you know, earlier this year, exclusively. We're actually the only ones that have access to Scale's technology of all the LiDAR companies as a result of that partnership. This is something that has proved hugely beneficial and meaningful to us, as they've consistently delivered on the key actions and deliverables for what we need to be able to further enhance our AI Engine and be able to provide these, these products and capabilities to our various customers. Yeah, but it's all powered by the data, and, you know, we're making it happen together with our customers. Exciting stuff. One other area that's I think is lesser-known, and we wanted to be able to take an opportunity to highlight, is when it comes to Luminar Semiconductor, Inc. Again, another area that we made early bets on, that's really starting to pay off in full swing now. You know, we have a host of different new chips and ASICs that we developed and are launching across Q2 and Q3. Again, this is something that we strategically, vertically integrated in-house, you know, working and acquiring some of the best and most specialized companies in the world when it comes to these different components, you know, for the design. Ones that we've historically worked with and collaborated with for years to be able to make this happen. You know, for example, with, you know, Black Forest Engineering, that was back in 2017. OptoGration was a couple of years ago. Freedom Photonics was last year. We since aggregated this all into Luminar Semiconductor. We've successfully taped out, you know, new chips for each of the different core components. This to further enhance performance, reduce cost, and for both our, our current generation as well as future generations of LiDARs. We're continuing to upgrade things at the, at the chip level. Like, this is an incredible breakthrough, new results from the the laser chips that we have. You can actually see the taped out laser chip itself in terms of the indium phosphide chip, as well as the silicon laser driver that we've we've taped out for this successfully. You can see our, our indium gallium arsenide photodetector for the receiver chip. This is already, again, like, this stuff is, like, validated and integrated into IRIS, as well as the processor chips. You know, we have our 4th-gen and 5th-gen signal processing chips that are already, the 4th is already validated and integrated into IRIS. The 5th generation signal processing chip is now developed and undergoing validation and testing. What's cool, though, is that with this model, and as we have this host of breakthrough semiconductor technologies that serves as a core innovation engine for Luminar, we're actually able to get a lot of interest for these same chips and technologies, you know, from other industries as well, including, for example, in the aerospace world. You know, we actually just received a handful of weeks back the NASA Tipping Point Award for development of our breakthrough laser technology. You know, very exciting one, and we're privileged to be able to have won that alongside, you know, other major companies like, you know, the Blue Origins and Lockheeds of this world in the aerospace industry. We were recently awarded a contract for a multiyear supply agreement for Luminar photodetectors for a major leader in fiber optic solutions... As well as receiving our first volume order for Luminar's laser technology on the actual optical communications between actually for AI GPU servers. That's something that for AI data centers can actually be massively impactful as the demand for that accelerates significantly. You know, this is becoming also a fantastic, you know, innovation and growth engine for Luminar more generally as we're vertically integrated. Just taking an opportunity to highlight some of the recent developments here that as this accelerates rapidly. Thank you everyone for taking a look at that and some of the different major milestones that we met along the way. In terms of the core company level business milestones, we want to have an opportunity for Tom to be able to take you through the details of this and a little bit more about our financials for this quarter and guidance. With that, we'll hand it off to Tom here. All right. Thank you, Austin. I'm gonna start by reviewing our progress towards our three key 2023 milestones. I know Austin has already talked about these points earlier. The first one is to successfully scale. As we talked earlier, we brought our new high volume automated manufacturing facility in Mexico, online in Q1 ahead of schedule, and we're now working towards completing our production validation testing at increasing volume rates, to basically optimize our high volume series production process. We remain on track to complete these steps and achieve high volume SOP readiness by the end of the year. Our second milestone is to continue to execute our pre- product and technology roadmap. In particular, we're gonna enter the C phase for IRIS+ by the end of the year, build our next generation lidar prototype, and complete our software deliverables to support Volvo and Mercedes SOPs. We remain on track to achieve all three elements of this milestone by the end of the year. Austin highlighted some of the developments we achieved during the quarter towards this end. Our third milestone is to grow our forward-looking order book by at least $1 billion. We have already experienced growth in our order book this year from both new business awards from existing customers, as well as a couple new customer wins from companies who have decided to upgrade their legacy lidar to Luminar's lidar on their next generation systems. Our recent strategic partnership with Plus is a good example of this upgrade trend. We are also signing deals with our customers across all our major product lines, hardware, software, AI, and semiconductors. We remain on track to achieve this milestone for the year. Now, let's review some of our financial results for the quarter. Revenue for the quarter was $16.2 million, up 63% year-over-year, and in line with analyst expectations. Our autonomy solution segment was the biggest contributor to our year-over-year revenue growth, more than doubling. For the quarter, we reported a gross loss of $18.3 million on a GAAP basis and $16.2 million on a non-GAAP basis. During the quarter, we also reported GAAP EPS of negative $0.37 and negative $0.21 on a non-GAAP basis. This marked a sequential improvement from Q1 and came in better than our guidance and analyst expectations. A few more details on our second quarter COGS and gross margin. During the quarter, we incurred approximately $24 million of launch-related expenses. Approximately 25% of these charges were from contractor expenses to get our suppliers and contract manufacturer partners up and running, the remaining 75% was from other launch-related expenses, such as contract manufacturer, fixed absorption charges as we ramp up volume and inventory write-offs for product enhancements and production validation testing. These launch-related expenses were somewhat higher than Q1 as we continue to improve our manufacturing process and product quality at higher production rates. As we communicate, we expect these launch costs to significantly decline in the second half as we successfully approach high volume SOP readiness by the end of the year. We remain on track to achieve positive gross margin on a non-GAAP basis in Q4 as we anticipate these launch-related expenses to significantly decline. Our Q2 free cash flow, as measured by operating cash flow less CapEx, was -$78.5 million, consistent with our commentary that Q2 would look similar to the Q1 free cash flow number of -$76 million. A few more details on our Q2 free cash flow. In addition to the $24 million of launch-related expenses I discussed earlier, our Q2 free cash flow also included a $13 million working capital investment during the quarter as we prepare for our high volume series production. Our business and new facility ramps up and launch costs ramp down, we expect a significant improvement in our free cash flow spend rate by the end of the year. While we still have some wood to chop to reach our free cash flow exit rate for the year, we remain confident in our ability to achieve this target of improving our free cash flow run rate by approximately 50% by year-end relative to our Q1 and Q2 levels. We are seeing early signs of free cash flow improvement in Q3 so far. During Q2, we received a $10 million investment from TPK, reinforcing our recent partnership, and TPK informed us last week that they plan to execute the additional $10 million option they have in the next few days. During the quarter, we also raised $7 million from our strategic M&A equity program to backfill some smaller strategic activity earlier this year. In connection with our recent Plus strategic collaboration, we agreed to a $10 million mutual equity swap to reinforce the partnership. In the coming days, we plan to file a registration statement to register the shares we expect to issue to plus as part of this strategic equity swap. We ended the quarter with $366 million in cash and marketable securities, which makes us one of the best capitalized LiDAR companies. This quarter-end cash balance includes the $10 million we expect to receive from TPK exercising its option last week. We are reaffirming our full year 2023 financial guidance. Specifically, we expect to grow revenue at least 100% this year, achieve positive quarterly non-GAAP gross margin by year-end, and end the year with at least $300 million in cash liquidity and a share count in the 395 million-400 million range. For the quarter, we expect to be in the range of $18 million-$21 million of revenue, and our EPS loss to be in the range of $0.18-$0.22. That's what we expect for the third quarter, this upcoming one. We expect revenue growth to accelerate in Q4 as our new high-value manufacturing facility comes online in higher volume, we expe ct a couple new customer contracts to be executed that we're currently finalizing. Our team continually evaluates opportunities to optimize our manufacturing cost and process. As we are bringing our manufacturing facility in Mexico online at higher volumes, our team has identified a meaningful cost improvement opportunity by outsourcing the production of certain sub assemblies and components originally, originally planned to be made in this new Mexico facility to other Luminar supplier partners. We expect this change to meaningfully reduce our per sensor manufacturing cost, as well as the required manufacturing floor space requirements and automation equipment at our Mexico facility. Following Q2, our team finalized and committed to a plan to proceed with this cost savings opportunity. As a result, we are in the process of evaluating the exact financial and accounting impact of this action, but based upon our preliminary analysis, we expect to incur a non-cash charge in the range of $10 million-$20 million in the second half of this year. Before I hand it over to Aileen for Q&A, I wanted to reinforce one important point. Based upon our current year-end guidance, we expect to end the year with approximately $300 million in cash and liquidity and an exit free cash flow spend rate, roughly half of our Q1, Q2 level. This year-end cash balance and improved exit free cash flow spend rate would imply two years of runway, enough to get us to our targeted break-even by 2025 year-end. In addition, we expect our free cash flow spend rate to improve even further from the year-end levels once we reach Volvo SOP in 2024. To conclude, I would like to thank once again the broader Luminar team for another solid quarter and the great operational progress. With that, we'll hand it over to Aileen for Q&A. Fantastic. Thanks, Tom. We're going to start the Q&A with some of the questions that we received on the Say platform, then we're going to move on to the analyst questions. Our first question is: Are there any specific patents that protect Luminar and shareholders from copycat technologies? For example, what makes a large automaker, like Volvo Cars, partner with Luminar or prevents another large automaker from creating their own LiDAR technology? Yep. I'd say when it comes to IP, you know, this is one of the, I'd say, most significant, like, deep IP companies, you know, out there, when it comes to advanced technologies. This is not to say that people haven't tried. People, of course, and large companies, tier ones, startups, you know, major tech companies, of course, have all tried to develop, you know, these kinds of, you know, breakthrough systems and technologies. Part of the whole point of where Luminar differentiated itself and won out this battle is by having, what? You know, a decade worth of work and back-end experience, by working from the chip level up, to build these different kinds of technologies and having it all come together to successfully create a system-level solution. From a protection standpoint, I say, you know, we have, what, a larger, you know, U.S. patent portfolio than any other company of our kind, of course. The reality is, is that there's a reason why, you know, there's no, like, knockoffs of, like, NVIDIA or Mobileye or, like, some of our other, you know, semiconductor partners, for example, like in, across the, the rest of the landscape and world, just because there's a lot of fundamental differentiation and core technology that goes into it. I think we've sort of put ourselves in that category and camp, and that's where you take a look at, like, every major automaker. They've, they've had, previously had LiDAR development efforts. I think effectively, all of them. I actually don't know if a single one is remaining. I think they're pretty much all shut down in, in favor of working with a company like Luminar. Again, we want to be, like, very collaborative partners to everybody, and it certainly makes the most sense to be able to work with a partner like us, and that's exactly what the majority of one escape is starting to do. Our second question. Can you provide us with more insight into Luminar's software business and how it may outpace the company's hardware business in the future? Sure. You know, we talked about during the prepared remarks, the progress that the software team has made in providing the software necessary to launch the initial business with our customers. Not only is there execution progress, but there's also commercial progress. Austin mentioned during the call, we signed our first mapping development contract with a major OEM. You know, as some of you may recall, last year, we acquired a 3D mapping company, Civil Maps, so we're starting to see some early bearing of fruit from that acquisition. You know, in addition. Which is funny, because people are like, "No, wait, Luminar is never gonna win, you know, doing it. How are they gonna do that?" You know. The Plus strategic collaboration, not only does that include an exclusive supply agreement on the lidar side, but also a partnership to, you know, market, and help industrialize Plus the software package to select trucking customers, and there's a revenue-sharing element to that. In addition, there's also a collaboration to explore some of the other products we have, such as mapping and insurance. So, you know, we've made good execution progress on the software side this year, as well as commercial progress. Great. Our next question, which we re-received a couple of times: When do you expect Luminar to be profitable? Nothing's changed from what we discussed at Luminar Day earlier this year. By the end of this year, we expect to be gross margin positive by the end of next year, profitable in our core business, and by the end of 2025, reach the company breakeven point. Next question. We're on track to be able to do all of this. Consistent, yeah. Great. Next question: How is Luminar performing against competitors like Innoviz? Do their recent commercial wins with BMW and Volkswagen concern you? You know, look, we take all of our competition seriously, and we never underestimate anybody. I wouldn't say that we're overly concerned about any competitor at Luminar. In fact, I think what we're seeing in the RFQ process is really a narrowing of the LiDAR companies that the OEMs are seriously considering. The industry's in a much different position than it was two-three years ago. I think OEMs are smarter about the balance sheet and kind of excluding companies that don't have enough cash to survive for the foreseeable future and get through a development phase. They're also, you know, if you, if you're a LiDAR company, and at this point, you haven't successfully industrialized your product or have multiple wins with, with customers, I think that that raises a lot of yellow, and in some cases, red flags with our OEMs. We're seeing the crowd that the OEMs seriously consider, significantly, be reduced. Look, our strategy, at this initial phase was to be very targeted, in the OEMs that we wanna work with. A lot of times, the business we win, it's outside of an RFQ process and one-off because there is certain vehicle functionality that only our lidar can enable. There are certain other vehicle functionality, whether it's a modest improvement in ADAS systems or, or, or low-speed functionality, where, quite frankly, you don't necessarily need our lidar. Those RFQ processes, we deprioritize them and, you know, other lidar companies ultimately be successful. Our longer-term strategy is to really, you know, you know, win as many customers as we can in the industry, and that's gonna be through the upgrading of the lidar technology and the vehicle functionality. As I mentioned earlier in the call, we're starting to see early signs of customers upgrading lidar selections they made in the past to our lidar in the next generation vehicle. Look, we always take our competition seriously. We got to go out there and prove ourselves on a daily basis. We got to continue to make our products, you know, better, smaller, cheaper and address our customer needs, you know, but, we see, you know, I would say the competitive dynamics continue to shift in our favor. I'd say more generally there, you know, by the way, I think sometimes people think of these, you know, competitive dynamics as, like, necessarily a bad thing. I mean, obviously, so we're as strong as we have more and are continuing to get more major commercial wins than everyone else in the industry combined, when it comes to, like, AV and, you know, LiDAR companies, from a partnership perspective, more holistically. You know, we're, we're not claiming to win. If we tried to literally work with every other, every major company on the planet all at the same time, like, that would, that would never work either. So you got to place your bets. I think it's actually a good thing for the industry, ultimately, like, when people are successful, sometimes people are, like, negative on this, but, like, it's, like, it's great. Now, the question, you obviously have to deliver on that, you know, and I think that's where, obviously, Luminar continues to stands out, that, you know, we, we do what we say. All right, our final question before we move on to the analysts: Is there any discussion or possibility of Department of Defense applications of Luminar's products? Yeah, absolutely. I, I think that, you know, you can already see... I wouldn't say, I wouldn't even necessarily comment on anything, you know, specific there, but when you look at these different adjacent market types of applications, like the stuff we've seen for contracts that we've already been awarded or working with, you know, with different agencies, like what was brought up with NASA, you know, for example, it's, it's very exciting to be able to see even from the semiconductor level, all the way up to the top. Yeah, but I don't know if there's anything else you want to add. Look, I, I think we're always gonna be very thoughtful in how we approach the adjacent markets, particularly with, with military applications. What I would say, the vast majority of the resources at Luminar in the near term, are gonna be focused on the passenger vehicle and commercial trucking markets. Yeah. Yeah, just to be clear, all of our products are always built for serious production. You know, consumer vehicles and trucking, like, to the extent that there's applications there, you know, there are now from the breakthrough technologies that we create, fantastic. Like, you know, that, that's full steam ahead. That's the thing that's gonna turn Luminar into the, you know, trillion-dollar company at the end of the day. We're not losing an ounce of focus on that. All right, thanks so much to everyone who submitted Say questions. We'll continue to use that as a platform to increase shareholder engagement. With that, let's transition to our analyst questions. We ask that analysts limit their questions to one initial one and one follow-up before hopping back in the queue for additional follow-ups. With that, we're going to start our analyst questions with Samik Chatterjee at JP Morgan. Hi, thanks for the question, guys. This is Joseph Cardoso on for Samik Chatterjee. You know, my first one is just, can you elaborate on the comments in the slide deck around signing agreements with multiple new customers, to upgrade legacy lidar solutions to Luminar's next gen? You know, what are the key drivers of these competitive takeouts? Do these takeouts include both hardware and software? Then maybe can you just touch on how material, relative to volumes these takeouts are? Then I have a follow-up. Sure. You know, you know, as I said in my prepared remarks, you know, there, there's been a couple of instances so far this year where, we brought in new customers, and that are specifically, upgrading their legacy LiDAR to our LiDAR for their, for their next generation. We use kind of Plus as, as an example of that. You know, I would say- Mercedes-Benz, it's like also, you know. Yeah, Mercedes-Benz was, was, was kind of a, another example in, in the past. I think that that's a, a trend that we were expecting, and, and we're actually starting to, to see it accelerate, not only with some of the recent wins, but some of the discussions that we're having. It, it typically starts with the hardware. I would say the hardware is, is typically our lead entry into the customers. Then once we get in, as you can imagine, we look to, you know, grow the products and services that we provide those customers over time. Look, we, we, you know, we really haven't gone in any details of, of what those volumes are, are gonna look like. We're confident that they're, they're gonna be material and grow, over time as we continue to get in there and execute and get more business and sell more products and services. It has, it has had a positive on our, impact on our order book so far this year. No, thanks, Tom. Then my second question's more for you, and it's around cash burn. You know, how much of the cash burn reduction by 4Q will be driven from better gross profit outcomes as opposed to lower OpEx? Then thanks for the questions, guys. Yeah, look, I, I think you can kinda look at the, you know, there's, there's a few different levels in there. I think it's not only the COGS improvements, and then you can kinda see what our, what, what our gross loss was this quarter, getting the profit back into an improvement from there. There, there are gonna be some OpEx improvements, but, you know, the other, the other levels are gonna be the CapEx and the working capital investments, right? During Q2, we had $13 million of cash, additional cash needs, relative to Q1, just because as you're launching these new products and these new facilities, you, you have to invest in those, in that working capital to get prepared for, for higher volume production. So it's, it's gonna be a combination of all three of those things, call it, COGS improvements, OpEx improvements, and then what I would say, CapEx and working capital/other improvements as you, you know, get to this SOP readiness and, and, and work through some of these launch-related costs and investments you need to make. Our next question will come from Mark Lipacis at Jefferies. Mark, you there? There you are. Yeah, sorry about that. The, Tom, you're talking about the order book on track. Can you give us a sense of where that is today? Should we think about that linearly through the year, or does that gonna be kind of like mostly in the fourth quarter? Yeah, look, it's, you know, it, it, it's a step function increase with each piece of new business you win. It, you know, it doesn't kind of grow linearly or, or gradually through the year. It, it increases once we kind of have a new, new, you know, a, a new business win. You know, we calculate it once a year. That's the pattern we've gotten into. You know, we don't want to get, get into the habit of disclosing, like, oh, the order book increased by this amount for each new piece of business. You know, I think that there's a little sensitivity around the customers with each of that. Look, we've had, order book growth so far. It's, it's been healthy. You know, I wouldn't say we're, we're at the billion-dollar plus that we promised. We remain confident by what we've won so far and, you know, kind of what we expect to win based upon the active discussions that we have, that we're gonna be at that billion-plus number by the end of the year. Which was our commitment and target, yeah. Understood. And a follow-up, if I may. On the software side, how far, how far do you like, ultimately hope to go on the software side? Would you expect to, you know, it seems like, you know, some of the challenges are with software from your customers. It's a new technology and getting it integrated. I can completely understand, you know, the challenges associated with that. Is your, in your view, do you have a, like a, like a hard line where we're, we're gonna stop here, and then the customer picks up the ball here? Or do you, do you ultimately say, we're, we're gonna do everything and make it, make it just a completely plug-and-play for your customer? ... look, it's, I think ultimately it's gonna vary, in our interaction with each customer. You know, like a lot of things in life, you gotta crawl before you can walk and, and before you can run. You know, there's, there's the perception software, which is going to be, I would say, something that we, you know, expect to be a fair amount of interest in there. You know, that's something that that I think our team continues to make great progress on. Once you have the perception software, you have what we call the full stack, where you have to do the sensor fusion and then also ultimately the decision making and path planning. Some OEMs are doing it themselves, some OEMs are relying on, on third-party partners, whether it's like a, an NVIDIA or a Mobileye or a Qualcomm, all of who we're aligned with. You know, look, I think, Mark, you, you've seen some of the news, not only by our customers, but also other, we came out last week with, you know, a delay in, in, in, you know, their, you know, L2 system and the software related on this. You know, the software here is always gonna be challenging, and, you know, we're gonna work with our OEM partners in different ways to, you know, to make sure that ultimately, the software does what it needs to do to fully unlock the capabilities of our LiDAR. Software usually ends up as harder than what, you know, people, people think. I would say actually, you know, one, one interesting data point is that, yeah, I'd say the majority of our customers and partners are already using some of the Luminar core software stack, and then that's where, you know, as we expand on that, like, our goal is to build more and more content value, you know, with, our customers and OEMs over time as those different products mature. Just as we did with the LiDAR, and that's how you really, like, juice the economics, while at the same time, you know, making better, safer, continuously improving cars. One of the benefits we have, Mark, and we're kind of real in this real time, is, you know, each OEM is, is trying to solve, you know, on their own, their real and unique set of problems. You know, we're working with, with several OEMs, now. You know, I think as Austin mentioned, we're kind of close to a dozen major commercial wins. We're in there working with them. You know, sometimes the issues they're facing are unique, but there's also a lot of overlap. As we kind of get those scales and, you know, multiple reps, you know, that allows us to, you know, learn a lot and, you know, share those learnings, with our – in our product development path to help our customers better. Good stuff. All right, very helpful. Thanks, guys. Our next question will come from Emmanuel Rosner at Deutsche Bank. Hi. Thanks, guys. This is actually Winnie Dong on for Emmanuel. With Volkswagen recently, you know, taking a stake in XPeng in China, and more specifically, providing validation on, you know, this ADAS platform, does it change or, you know, reaffirm the way that you're, you know, engaging with customers or how you're thinking about competition in that region? Just any latest thought on that would be helpful. Yeah, look, I, I... You know, I think China right now is a very dynamic market. You know, if you look over the last year or two, there was a very fast and, and, you know, faster than the Western world adoption of LiDAR technology. I think a lot of that, my personal hypothesis, is that it was driven by these new EV brands, the NIO, the XPeng, the, you know, RTX, the Li Autos of the world, trying to differentiate themselves with a very savvy Chinese consumer as technology leaders. You then kind of had this price war earlier this year, which kind of, I think, brought a whole cost-consciousness, value-conscious aspect of that. You know, what I think you're starting to see is, you know, the, a couple, adoption in a couple of ways. One is, some of these local EV mar- partners realizing that in order to be more cost competitive, you know, getting those partnerships with global leaders can help. I think at the same time, when you look at the market share trends in China, the local brands have been taking share from the Western brands. I also think that there's an incentive from the Western brands to be more partnering. I think having those two-way partnerships is, is, you know, can be mutually beneficial, and it's actually helpful to us, you know, not only, because it gives us another avenue, an entry point into that. We've made progress with some of the local brands. We've have, you know, strategic partners in the region like ECARX, which have been helpful. Having some of the Western brands partner with the local brands there, it gives us another entry point into the China market. We're always gonna be smart in terms of who we partner with, particularly in the near term, but I think that's a trend that's, you know, helpful to us. This is the point why TPK is building this next big factory, you know, for us out there, and they obviously see the opportunity, you know, just this additional investment in Luminar. So that's, that's really taking off as the global OEMs push in there. Again, like I said, I think it's something really special with Luminar that, you know, our technology is meaningful enough where, you know, we're really one of the only Western companies that actually have made our way in, and a generally, like, unfavorable environment for Western companies in China, like, we've been able to actually make a big impact and, and difference already. Thanks for that. Then I was wondering if you can elaborate a little bit more on that, you know, first development contract for the mapping software with the major OEM. You know, what's the timeline? Then maybe, like, a bit more on- Yeah. the scope, the scope of the contract. Thanks. Look, I think it's a very positive development and, you know, quite frankly, you know, the fruit bearing from the Civil Maps acquisition is, is, is happening a little earlier than at least my, my personal expectations. I, you know, I also don't want to get, you know, go into too much detail at this time. You know, but I think if things continue to head in the right direction, it's something that I, you know, we, we hope to share at least more details at, at some point in the future. Yeah. ... You know, I don't want to sound too head in the clouds, you know, there with this, but part of the whole driver and the vision behind it, you know, was to be able to create, you know, what could be the most comprehensive 3D map, you know, of the environment in the world in real time. When it comes to this level of LiDAR being deployed on, you know, hundreds of thousands of production vehicles, consumers constantly driving them around, the amount of data that you get from that, what that can do in terms of creating a real-time 3D map is really wouldn't be comparable to anything that exists today. That's where it's one of those things that can just be like a ridiculous opportunity out on its own. Like I said, you know, we've got to take it step by step, but this is an incredible first step as part of that process. Thank you so much. I appreciate it. Our next question will come from Josh Buchalter at TD Cowen. Hey, guys. Hey, Josh. Thanks for taking my question. I appreciate the color you gave in the prepared remarks about what's going on at Volvo, with the software, but I wanted to follow up there. It sounds like there were some milestones achieved in the second quarter. There's still some to go. you know, they, on the public call, were saying that it's a surrounding LiDAR integration, but that can very much mean it's someone else's issue that they're dealing with. Just any more clarity you can give us on what's going on with the software engagement at Volvo and what's left to clear? Thank you. Yeah. No, so it, it, it's good, and we're obviously in close touch when it comes to Volvo, more generally as it relates to the holistic program. You know, for that reason, that's why we didn't have it built into our economics, you know, for that time frame. When it comes down to it, I think we wanted to make sure to clarify that when it comes to our deliverables for either the LiDAR system and software and everything, we're, you know, we're meeting the requirements and on track with that. That's why when we're saying, you know, for software deliverables, we, you know, recently met a major milestone. I think when it comes to... There's obviously a lot of different factors at play, and that's why, you know, Volvo kind of issued that corrective, you know, statement thereafter. More generally, I think, like I said, building software for new game-changing EVs is hard, and, like I said, it usually takes more time than people think. I think, you know, we obviously see other examples from, you know, certain other companies that have taken, like, years longer than they would have expected to. I think Volvo actually has one of the most advanced teams in this respect, alongside Mercedes, I think, also has one of the most advanced teams on the planet, you know, doing this kind of work. They actually should be pretty well off, but it's a tough challenge. That's where, when it comes to holistic vehicle. I think the important part is for us, like I said, we have a dozen different, you know, major commercial programs that we're working with, so we're not slowing down by any means on any of it to be able to make sure all of it is successful. That's, so that's been good. Yeah, an important point of clarification. Yeah. No, got it. Thank you. I appreciate the color there. As my follow-up, you have the billion-dollar order book, and, and you're sort of generating or revenue or, or, or orders in a bunch of different avenues like insurance, software, mapping, et cetera. Is the order book growth still overwhelmingly over-indexed to your LiDAR hardware sales? Anything you can help us on granularity of, of your expanding business engagements? Thank you. Yeah. Josh Buchalter, the order book at the end of the year was $3.4 billion, and, and $1 billion is the growth we expect this year. Look, it, you know, I would say it, it's, it remains overwhelmingly weighted towards, towards hardware today. You know, I would say the percentage of it, that software continues to grow. I think the important part is, is like, the LiDAR is, you know, with these customers, and we're continuing to expand the value. That's where, you know, we have it heavily weighted, or we've been, I think, very generally very conservative in counting these other areas. You know, at this point, like, we're not, we're not counting parts of, like, insurance or mapping or other stuff yet, like, you know, in the, in the order book. I think, you know, when we start to see some like, you know, major large-scale, you know, wins on those fronts, and then we'll, we'll, we'll start adding it in. We want to be, very conservative, and that's why, you know, or I say, the most conservative with our order book by far in the industry as it stands and how we calculate that right now. Hey, Aileen, I know we're at 6:00, why don't we go a few minutes over to get a few more questions in? Thanks, guys. Sound, sounds good. Our next question will come from Kevin Garrigan at WestPark Capital. Hey, Kevin. Yep. Where's Kevin? There we go. Hey, guys. How's it going? Well, Kevin, yourself? Not too bad. Thanks for letting me ask a question, congrats on the progress. You know, I just had one kind of multi-part question. A few of your competitors have, have kind of noted that some, some RFQs are in the final stages, and we could get a decision kind of by the end of the year. I know you guys talked a little bit about the RFQ process and being targeted in your, in a previous question. I'm just kind of wondering, you know, are you guys also in the, in the final stages with some of these RFQs, or are you kind of not focused on these programs? Then, are you kind of taking a little bit of a different approach where, you know, you talked about a little bit with Mobileye and NVIDIA, where you're kind of leveraging your partnerships with them a little more to, to kind of give you an upper hand when speaking with OEMs? Yeah, so, I, I'll take the second part. Yes, like, look, you know, one of the benefits of being the reference ladder in the Mobileye, NVIDIA platforms and part of the Qualcomm system, it gives us another bite at the apple, right? Multiple avenues to go to the OEMs. What I would say, though, is that we are not dependent upon them to go to the OEMs. In fact, we're talking to all the customers we wanna do business with. We're out there talking to them ourselves at the same time that, you know, our system partners are talking to them. So, you know, we try to, you know, get to the customer any way that's possible. look, I saw some of the commentary on, on the other calls around the RFQ process. you know, look, we're, we're, we're seeing a lot of the same things here. I, I would say a lot of the commercial activity that we're having, too, is, is, is one-off and, you know, what I would say, outside of the RFQ process. you know, I'm not gonna speculate on, on the timing of any of these decisions. You know, the OEMs are gonna make them at this point. What I would say is, you know, over the last couple of months, we have seen an acceleration in some of the RFQ and, and RFI activity and some of the one-off conversations that we're having with our customers. Well, I, I, I, I think maybe instead of one, it's more like one, one to one. Yeah. Like, you know, obviously, the majority of the wins that we have had, and the major commercial wins have not got. It's, like, not through some, like, you know, like, commodity procurement process here. Yeah. You know, it's basically, OEMs come to us to be able to solve a problem, and we're sort of that, that default partner to work with. You know, it's one thing about, you know, it is, it's another thing about in terms of the scope of capabilities. Like, obviously, it's, you know, sort of an order of magnitude greater than what really people have seen in the industry and landscape. You know, listen, it's not, it's not stopping us from doing this. We always have to ask ourselves again, is like, what is, what is the end goal of what we want to achieve out of these different programs? What is the actual opportunity that is realistic? Of course, considering the factor of how likely is it that, you know, such program is going to make it to fruition? Because, you know, as you know, we've seen a lot of programs that, you know, maybe had a good press release in it, but didn't actually end up happening. You know, we're in this for the long haul. We have to make the right bets, and that's the most important thing, and I think we've really done that so far. Yep. Okay, got it. That makes sense. Awesome. Thanks, guys. Thanks, Kevin. Thank you. Our final question comes from Itay Michaeli at Citi. Great. Hi, everybody. Just two, two quick ones for me. First, I know that the mid-decade target, the, the million units by 2026, 2027, was predicated on existing customers. Given some of the traction you're reporting today with new customers, do you see any potential upside now to kind of those mid-decade targets? Then secondly, I was hoping to get an a bit of an update on the insurance business and kinda how, how that's going. First, yes, so If you remember what we said, back in Luminar Day, I think we had that $1 million target, 2026, 2027. I think, you know, exactly when we kind of hit that depends upon, you know, if everything hits the SOP timetable that our customer has, it'll be 2026. You know, if there's a little bit of a delay, you'll kind of be in the 2027. We had about 75% of that awarded to get to that $1 million. You know, that, that number has, has gone up. You know, I'm, I'm not in a position today to kind of, you know, update that number, whether what% are booked or, or that $1 million. I, I would say that, you know, the percentage awarded has increased from, from some of the success we've had so far. You know, in fact, based upon the discussion we're having increased further by year-end, from where we are today. On insurance, you know, look, we, we kinda had a, a, you know, a great update on a lot of things on the Q2. You know, we'll talk more about the, insurance point and, and giving an update there at some point in the future. I think, I think it's fair to say, of the new initiatives, you know, that we, that we've had or some of the. Yeah ... things that people were skeptical of, of, like, can't pull it off, you know, be obviously the LiDAR, you know, we're crushing it. When it comes to, you know, software, AI, you know, we're making it happen. When it comes to mapping, you know, we're making it happen, and great results. When it comes to semiconductors, you know, absolutely crushing it. When it comes to, you know, insurance, that's obviously a newer program that we have, and, you know, we're already making great progress with, with RTX on that, that I'm sure, you know, Tom will also be more excited to talk about for the future. Sounds great. That's all very helpful. Thanks, everyone. Thanks, Itay. Thank you. Fantastic. Well, that marks the end of our analyst queue and the questions. I'd like to thank everybody for sticking around and participating in the call. For the analysts that asked the questions and for the investors and other folks who've joined us, we look forward to talking with you next quarter. Thanks, everyone. Thank you.