[Management View]
Arbe Robotics' management highlighted key metrics and strategic priorities, including a focus on deepening OEM engagements, advancing radar technology integration with partners like Magna and Nvidia, and expanding into the Chinese market with HiRain Technology. The company is targeting four design-ins with automakers in 2025 and expects significant revenue activity in the second half of the year.

[Outlook]
Management provided performance guidance, projecting 2025 revenue between $2 million and $5 million, with adjusted EBITDA loss ranging from $29 million to $35 million. Future plans include ramping up production in China by Q4 2025 and continuing to secure design-ins with leading OEMs.

[Financial Performance]
- Revenue: $0.04 million for Q1 2025, down from $0.1 million in Q1 2024.
- Gross Profit: Negative $0.3 million, unchanged from Q1 2024.
- Operating Expenses: $13.1 million, up from $12.5 million in Q1 2024.
- Operating Loss: $13.4 million, compared to $12.8 million in Q1 2024.
- Adjusted EBITDA Loss: $9.7 million, compared to $8.5 million in Q1 2024.
- Net Loss: $13.8 million, compared to $12.8 million in Q1 2024.
- Cash Position: $36.7 million in cash and equivalents, with $35.2 million in long-term deposits.

[Q&A Highlights]
Question 1: Can you outline the negotiations with OEMs and why you expect wins in the second half of the year?
Answer: Arbe sells chips to Magna, which then sells the radar to OEMs. Arbe is involved in all phases leading to Magna receiving orders. The solution with leading European OEMs is final and ready for selection, with high chances of winning.

Question 2: Which geographies are these OEMs headquartered in?
Answer: Europe is leading in hands-free, eyes-off driving, with the US behind. In China, Arbe is engaged with HiRain, expecting earlier revenue and production.

Question 3: Can you discuss the momentum in the industrial market?
Answer: Arbe partners with Sensoran for industrial applications, which include smart cities, heavy machinery, and factory applications. Sensoran supports customization for these diverse clients.

Question 4: What is the source of the expected revenue ramp in Q3 and Q4?
Answer: A major order from Sensoran post-Q1 will be recognized later. Additional revenue will come from OEM selections and ramping up production in China with HiRain.

Question 5: Where are other auto customers in the RFP process?
Answer: Progress is being made in parallel with multiple programs. Delays are due to market conditions and OEM resource allocation, not Arbe's technology.

Question 6: Are you working with central auto processor companies in China?
Answer: Arbe collaborates with Horizon Robotics and Nvidia, with HiRain as the channel for robotaxi companies in China.

Question 7: What is the timeline for volume ramp in China?
Answer: Production ramp-up in China is expected by the end of 2025, with final technical readiness being the remaining step.

Question 8: What is a good R&D number for the year?
Answer: OpEx burn for the year is $32 million to $34 million, with R&D at about $25 million annually.

Question 9: What is the timeline for North America?
Answer: Revenue in North America is expected to start in 2028, with model years beginning in 2029.

Question 10: What are the gross margin expectations during the ramp-up?
Answer: Initial production years will see margins of 30%-35% due to extra testing, with long-term margins expected to normalize at 50%-60%.

[Sentiment Analysis]
The tone of the analysts was inquisitive and focused on understanding the timeline and specifics of revenue generation and market expansion. Management was confident and detailed in their responses, emphasizing strategic partnerships and readiness for production ramp-up.

[Quarterly Comparison]
| Metric | Q1 2025 | Q1 2024 |
|-------------------------|---------------|---------------|
| Revenue | $0.04 million | $0.1 million |
| Gross Profit | -$0.3 million | -$0.3 million |
| Operating Expenses | $13.1 million | $12.5 million |
| Operating Loss | $13.4 million | $12.8 million |
| Adjusted EBITDA Loss | $9.7 million | $8.5 million |
| Net Loss | $13.8 million | $12.8 million |
| Cash Position | $36.7 million | N/A |
| Long-term Deposits | $35.2 million | N/A |

[Risks and Concerns]
- Extended decision timelines at major automakers.
- Initial production gross margins compressed by extra testing protocols.
- Broader economic shifts causing short-term delays in automakers' rollout of advanced driver-assist systems.

[Final Takeaway]
Arbe Robotics is strategically positioned for growth with strong partnerships and a solid financial foundation. Despite current low revenue and extended decision timelines, the company is poised for significant market expansion, particularly in Europe and China. The integration with Nvidia and presence at key trade shows underscore Arbe's leadership in radar technology. Investors should monitor the progress of OEM engagements and production ramp-up in China for future revenue growth.