Delivers Q4 2024 Revenue of $58.0M, up 7.5% sequentially, with Non-GAAP Gross Margin of 50.4%
Prospects for indie remain positive throughout 2025, underpinned by strong design win momentum and key program status despite challenging automotive market environment

indie Semiconductor, Inc. (NASDAQ:INDI), an automotive solutions innovator, today announced fourth quarter results for the period ended December 31, 2024. Fourth quarter 2024 revenue increased 7.5% sequentially to $58.0 million, at the mid-point of the outlook with Non-GAAP gross margin sequentially flat at 50.4 percent. On a GAAP basis, fourth quarter 2024 operating loss was $33.9 million compared to $21.6 million a year ago. Non-GAAP operating loss for the fourth quarter of 2024 was $14.2 million, versus $2.4 million during the same period last year. Fourth quarter 2024 GAAP loss per share was $0.18, while Non-GAAP loss per share was $0.07.

"In Q4, indie delivered growth despite a challenging market backdrop," said Donald McClymont, indie's co-founder and chief executive officer. "This resilient business performance is a testament to our class-leading, highly differentiated product portfolio, our relentless focus on our key target markets and our unique customer relationships. This technology leadership position will also ensure that we drive growth throughout 2025 and beyond," added McClymont.

Business Highlights

Flagship ADAS programs on track for second half 2025 initial volume shipments
Secured design win for Vision processor with large Korean OEM for front sensing and interior monitoring
Captured new design-wins for Vision processor with multiple Chinese OEMs for multi-channel applications such as eMirror
Validated performance of initial samples of 120 GHz radar solution for in-cabin occupant monitoring
Achieved ASIL-D certification (the highest level of functional safety) for electrification ASIC
Commenced turnkey optical component integration capability for automotive and mobility applications

Q1 2025 Outlook

We provide guidance on a non-GAAP basis only because certain information necessary to reconcile such results and guidance to GAAP is difficult to estimate and dependent on future events outside of our control and, therefore, is not available without unreasonable efforts. Please refer to the header captioned "Discussion Regarding the Use of Non-GAAP Financial Measures" in this release for a further discussion of our use of non-GAAP measures.

With the backdrop of increased market uncertainty, causing slower than anticipated production ramps for the first quarter of 2025, indie expects revenue between $52.5 and $57.5 million or $55 million at the mid-point, down 5.2% sequentially and an increase of 5.1% year over year, with Non-GAAP gross margin between 49% and 50%. Given indie's multiple new products ramping throughout 2025, the outlook remains positive.

indie's Q4 2024 Conference Call

indie Semiconductor will host a conference call with analysts to discuss its fourth quarter 2024 results and business outlook today February 20,2025 at 5:00 p.m. Eastern time. To listen to the conference call via the Internet, please go to the Financials tab on the Investors page of indie's website to listen to the conference call via telephone, please call (877) 451-6152 (domestic) or (201) 389-0879 (international), Conference ID: 13750526.

A replay of the conference call will be available beginning at 9:00 p.m. Eastern time on February 20, 2025, until 11:59 p.m. Eastern time on March 6, 2025, under the Financials tab on the Investors page of indie's website, or by calling (844) 512-2921 (domestic) or (412) 317-6671 (international), Access ID: 13750526.

About indie

Headquartered in Aliso Viejo, CA, indie is empowering the automotive revolution with next generation semiconductors, photonics and software platforms. We focus on developing innovative, high-performance and energy-efficient technology for ADAS, in-cabin user experience and electrification applications. Our mixed-signal SoCs enable edge sensors spanning Radar, LiDAR, Ultrasound, and Computer Vision, while our embedded system control, power management and interfacing solutions transform the in-cabin experience and accelerate increasingly automated and electrified vehicles. As a global innovator, we are an approved vendor to Tier 1 partners and our solutions can be found in marquee automotive OEMs worldwide.

Please visit us at www.indie.inc to learn more.

Safe Harbor Statement

This communication contains "forward-looking statements" (including within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended). Such statements can be identified by words such as "will likely result," "expect," "anticipate," "estimate," "believe," "intend," "plan," "project," "outlook," "should," "could," "may" or words of similar meaning and include, but are not limited to, statements regarding our future business and financial performance and prospects, including statements regarding general and automotive market conditions, expectations regarding our multiple product ramps in 2025 and our belief that we will drive growth throughout 2025 and beyond. Such forward-looking statements are based upon the current beliefs and expectations of our management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are difficult to predict and generally beyond our control. Actual results and the timing of events may differ materially from the results included in such forward-looking statements. In addition to the factors previously disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 filed with the SEC on February 29, 2024 (and as amended by Amendment No. 1 to the Form 10-K filed with the SEC on March 20, 2024) and in our other public reports filed with the SEC (including those identified under "Risk Factors" therein), the following factors, among others, could cause actual results and the timing of events to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: macroeconomic conditions, including inflation, rising interest rates and volatility in the credit and financial markets, our reliance on contract manufacturing and outsourced supply chain and the availability of semiconductors and manufacturing capacity; competitive products and pricing pressures; our ability to win competitive bid selection processes and achieve additional design wins; the impact of recent acquisitions made and any other acquisitions we may make, including our ability to successfully integrate acquired businesses and risks that the anticipated benefits of any acquisitions may not be fully realized or take longer to realize than expected; our ability to develop, market and gain acceptance for new and enhanced products and expand into new technologies and markets; current and potential trade restrictions and trade tensions, including the recent trade and tariff actions taken or proposed by the US government affecting the countries where we operate and political or economic instability in our target markets. All forward-looking statements in this press release are expressly qualified in their entirety by the foregoing cautionary statements.

Investors are cautioned not to place undue reliance on the forward-looking statements in this press release, which information set forth herein speaks only as of the date hereof. We do not undertake, and we expressly disclaim, any intention or obligation to update any forward-looking statements made in this announcement or in our other public filings, whether as a result of new information, future events or otherwise, except as required by law.

#indieSemi_Earnings

INDIE SEMICONDUCTOR, INC. PRELIMINARY CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in thousands, except share and per share amounts) (Unaudited)

	Three Months Ended December 31,						Year Ended December 31,
		2024			2023			2024			2023

Revenue:
Product revenue		53,826			63,153			202,698			195,624
Contract revenue		4,183			6,980			13,984			27,545
Total revenue		58,009			70,133			216,682			223,169
Operating expenses:
Cost of goods sold		33,313			42,236			126,373			133,606
Research and development		38,254			34,281			175,112			154,507
Selling, general, and administrative		20,328			15,187			80,945			70,479
Restructuring costs		10			—			4,332			—
Total operating expenses		91,905			91,704			386,762			358,592
Loss from operations		(33,896	)		(21,571	)		(170,080	)		(135,423	)
Other income (expense), net:
Interest income		1,209			1,654			4,588			7,801
Interest expense		(2,838	)		(2,116	)		(9,258	)		(8,650	)
Gain from change in fair value of warrants		—			13,692			—			7,066
Gain (loss) from change in fair value of contingent considerations and acquisition-related holdbacks		874			(7,193	)		29,041			(2,985	)
Other expense		(302	)		(912	)		(400	)		(1,175	)
Total other income (loss), net		(1,057	)		5,125			23,971			2,057
Net loss before income taxes		(34,953	)		(16,446	)		(146,109	)		(133,366	)
Income tax benefit (provision)		(340	)		1,820			998			4,534
Net loss		(35,293	)		(14,626	)		(145,111	)		(128,832	)
Less: Net income (loss) attributable to noncontrolling interest		(1,867	)		29			(11,664	)		(11,207	)
Net loss attributable to indie Semiconductor, Inc.		(33,426	)		(14,655	)		(133,447	)		(117,625	)

Net loss attributable to common shares — basic		(33,426	)		(14,655	)		(133,447	)		(117,625	)
Net loss attributable to common shares — diluted		(33,426	)		(14,655	)		(133,447	)		(117,625	)

Net loss per share attributable to common shares — basic	$	(0.18	)	$	(0.09	)	$	(0.76	)	$	(0.81	)
Net loss per share attributable to common shares — diluted	$	(0.18	)	$	(0.09	)	$	(0.76	)	$	(0.81	)

Weighted average common shares outstanding — basic		185,682,996			159,996,055			175,029,650			145,188,867
Weighted average common shares outstanding — diluted		185,682,996			159,996,055			175,029,650			145,188,867

INDIE SEMICONDUCTOR, INC. PRELIMINARY CONSOLIDATED BALANCE SHEETS (Amounts in thousands) (Unaudited)

	December 31, 2024			December 31, 2023
Assets
Current assets:
Cash and cash equivalents	$	274,248		$	151,678
Restricted cash		10,300			—
Accounts receivable, net		52,005			63,602
Inventory, net		49,887			33,141
Prepaid expenses and other current assets		22,308			23,399
Total current assets		408,748			271,820
Property and equipment, net		34,281			26,966
Intangible assets, net		208,944			208,134
Goodwill		266,368			295,096
Operating lease right-of-use assets		16,107			13,790
Other assets and deposits		6,938			3,070
Total assets	$	941,386		$	818,876

Liabilities and stockholders' equity
Accounts payable	$	28,326		$	18,405
Accrued payroll liabilities		5,573			6,621
Contingent considerations		3,589			83,903
Accrued expenses and other current liabilities		30,188			21,411
Intangible asset contract liability		5,875			4,429
Current debt obligations		12,220			4,106
Total current liabilities		85,771			138,875
Long-term debt, net of current portion		369,097			156,735
Intangible asset contract liability, net of current portion		11,965			—
Deferred tax liabilities, non-current		11,660			13,696
Operating lease liability, non-current		14,278			10,850
Other long-term liabilities		4,111			21,695
Total liabilities	$	496,882		$	341,851
Commitments and contingencies
Stockholders' equity
Preferred stock	$	—		$	—
Class A common stock		19			16
Class V common stock		2			2
Additional paid-in capital		936,563			813,742
Accumulated deficit		(494,888	)		(361,441	)
Accumulated other comprehensive loss		(24,622	)		(6,170	)
indie's stockholders' equity		417,074			446,149
Noncontrolling interest		27,430			30,876
Total stockholders' equity		444,504			477,025
Total liabilities and stockholders' equity	$	941,386		$	818,876

INDIE SEMICONDUCTOR, INC.

RECONCILIATION OF PRELIMINARY NON-GAAP MEASURES TO GAAP

(Unaudited)

GAAP refers to financial information presented in accordance with U.S. Generally Accepted Accounting Principles. This press release includes non-GAAP financial measures, as defined in Regulation G promulgated by the Securities and Exchange Commission. We believe that our presentation of non-GAAP financial measures provides useful supplementary information to investors. The presentation of non-GAAP financial measures is not meant to be considered in isolation from or as a substitute for results prepared in accordance with GAAP.

The reconciliations of our preliminary GAAP to non-GAAP measures are as follows (in thousands, except share and per share amounts):

	Three Months Ended December 31,						Year Ended December 31,
		2024			2023			2024			2023
Computation of non-GAAP gross margin:
GAAP revenue	$	58,009		$	70,133		$	216,682		$	223,169
GAAP cost of goods sold		33,313			42,236			126,373			133,606
Acquisition-related expenses		(646	)		(5,983	)		(1,340	)		(11,967	)
Amortization of intangible assets		(3,732	)		(1,580	)		(16,323	)		(12,509	)
Inventory cost realignments		—			(1,413	)		(145	)		(2,778	)
Share-based compensation		(164	)		(111	)		(1,012	)		(360	)
Non-GAAP gross profit	$	29,238		$	36,984		$	109,129		$	117,177
Non-GAAP gross margin		50.4	%		52.7	%		50.4	%		52.5	%

	Three Months Ended December 31,						Year Ended December 31,
		2024			2023			2024			2023
Computation of non-GAAP operating loss:
GAAP loss from operations	$	(33,896	)	$	(21,571	)	$	(170,080	)	$	(135,423	)
Acquisition-related and other non-recurring professional expenses		1,648			8,538			5,596			19,417
Amortization of intangible assets		5,786			2,834			25,645			20,566
Inventory cost realignments		—			1,413			145			2,778
Share-based compensation		12,258			6,371			68,997			44,082
Restructuring costs		10			—			4,332			—
Non-GAAP operating loss	$	(14,194	)	$	(2,415	)	$	(65,365	)	$	(48,580	)

	Three Months Ended December 31,						Year Ended December 31,
		2024			2023			2024			2023
Computation of non-GAAP net loss:
Net loss	$	(35,293	)	$	(14,626	)	$	(145,111	)	$	(128,832	)
Acquisition-related and other non-recurring professional expenses		1,648			8,538			5,596			19,417
Amortization of intangible assets		5,786			2,834			25,645			20,566
Inventory cost realignments		—			1,413			145			2,778
Share-based compensation		12,258			6,371			68,997			44,082
Restructuring costs		10			—			4,332			—
Gain from change in fair value of warrants		—			(13,692	)		—			(7,066	)
(Gain) loss from change in fair value of contingent considerations and acquisition-related holdbacks		(874	)		7,193			(29,041	)		2,985
Other expense		302			912			400			1,175
Non-cash interest expense		409			274			1,172			995
Income tax benefit (provision)		340			(1,820	)		(998	)		(4,534	)
Non-GAAP net loss	$	(15,414	)	$	(2,603	)	$	(68,863	)	$	(48,434	)

	Three Months Ended December 31,						Year Ended December 31,
		2024			2023			2024			2023
Computation of Non-GAAP EBITDA:
Net loss	$	(35,293	)	$	(14,626	)	$	(145,111	)	$	(128,832	)
Interest income		(1,209	)		(1,654	)		(4,588	)		(7,801	)
Interest expense		2,838			2,116			9,258			8,650
Gain from change in fair value of warrants		—			(13,692	)		—			(7,066	)
(Gain) loss from change in fair value of contingent considerations and acquisition-related holdbacks		(874	)		7,193			(29,041	)		2,985
Other expenses		302			912			400			1,175
Income tax benefit (provision)		340			(1,820	)		(998	)		(4,534	)
Depreciation and amortization		7,673			4,286			32,489			25,134
Stock-based compensation		12,258			6,371			68,997			44,082
Inventory cost realignments		—			1,413			145			2,778
Acquisition-related and other non-recurring professional expenses		1,648			8,538			5,596			19,417
Restructuring costs		10			—			4,332			—
Non-GAAP EBITDA	$	(12,307	)	$	(963	)	$	(58,521	)	$	(44,012	)

	Three Months Ended December 31, 2024
Computation of non-GAAP share count:
Weighted Average Class A common stock - Basic		185,682,996
Weighted Average Class V common stock - Basic		17,671,247
Escrow Shares		1,725,000
TeraXion Unexercised Options		627,663
Non-GAAP share count		205,706,906

Non-GAAP net loss	$	(15,414	)
Non-GAAP net loss per share	$	(0.07	)

Discussion Regarding the Use of Non-GAAP Financial Measures

Our earnings release contains some or all of the following financial measures that have not been calculated in accordance with United States Generally Accepted Accounting Principles ("GAAP"): (i) non-GAAP gross profit and gross margin, (ii) non-GAAP operating loss, (iii) non-GAAP net loss, (iv) non-GAAP EBITDA, (v) non-GAAP share count, (vi) non-GAAP net loss and (vii) non-GAAP net loss per share. As set forth in the tables above, we derive such non-GAAP financial measures by excluding certain expenses and other items from the respective GAAP financial measure that is most directly comparable to each non-GAAP financial measure. Management may use these non-GAAP financial measures to, amongst other things, evaluate operating performance and compare it against past periods or against peer companies, make operating decisions, forecast for future periods and to determine payments under compensation programs. These non-GAAP financial measures provide management with additional means to understand and evaluate the operating results and trends in our ongoing business by eliminating certain expenses and other items that management believes might otherwise make comparisons of our ongoing business with prior periods and competitors more difficult, obscure trends in ongoing operations or improve management's ability to forecast future periods.

We provide investors with non-GAAP gross profit and gross margin, non-GAAP operating loss, non-GAAP net loss and non-GAAP net loss per share because we believe it is important for investors to be able to closely monitor and understand changes in our ability to generate income from ongoing business operations. We believe these non-GAAP financial measures give investors an additional method to evaluate historical operating performance and identify trends, an additional means of evaluating period-over-period operating performance and a method to facilitate certain comparisons of our operating results to those of our peer companies. We further believe these non-GAAP financial measures allow investors to assess the overall financial performance of our ongoing operations by eliminating the impact of (i) acquisition-related and other non-recurring professional expenses (including acquisition-related or other non-recurring professional fees and legal expenses, deemed compensation expense and expenses recognized in relation to changes in contingent consideration obligations), (ii) amortization of acquisition-related intangibles and certain license rights, (iii) inventory cost realignments, (iv) gains or losses recognized in relation to changes in the fair value of warrants, contingent considerations issued by indie, acquisition-related holdbacks and unrealized gains or losses from currency hedging contracts, (v) non-cash interest expenses related to the amortization of debt discounts and issuance costs, (vi) share-based compensation, and (vii) income tax benefit (expenses). We believe that disclosing these non-GAAP financial measures contributes to enhanced financial reporting transparency and provides investors with added clarity about complex financial performance measures.

We do not report a GAAP measure of gross profit or gross margin because certain costs related to contract revenues are expensed as incurred and included in research and development expenses, and not in cost of sales, as it is not practicable for us to bifurcate these expenses. We derive and reconcile non-GAAP gross profit from the most relevant GAAP financial measures by subtracting GAAP cost of sales, adjusted for acquisition-related and other non-recurring professional expenses and share-based compensation, from GAAP revenue. We calculate non-GAAP operating loss by excluding from GAAP operating loss, any (i) acquisition-related and other non-recurring professional expenses (including acquisition-related or other non-recurring professional fees and legal expenses, deemed compensation expense and expenses recognized in relation to changes in contingent consideration obligations), (ii) amortization of acquisition-related intangibles and certain license rights, (iii) inventory cost realignments and (iv) share-based compensation. We calculate non-GAAP net loss by excluding from GAAP net income (loss), any (i) acquisition-related and other non-recurring professional expenses (including acquisition-related or non-recurring professional fees and legal expenses, deemed compensation expense and expenses recognized in relation to changes in contingent consideration obligations), (ii) amortization of acquisition-related intangibles and certain license rights, (iii) inventory cost realignments, (iv) gains or losses recognized in relation to changes in the fair value of warrants, contingent considerations issued by indie, acquisition-related holdbacks and unrealized gains or losses from currency hedging contracts, (v) non-cash interest expenses related to the amortization of debt discounts and issuance costs, (vi) share-based compensation, and (vii) income tax benefit (expenses). We calculate non-GAAP EBITDA by excluding from GAAP net income (loss), any (i) acquisition-related and other non-recurring professional expenses (including acquisition-related or non-recurring professional fees and legal expenses, deemed compensation expense and expenses recognized in relation to changes in contingent consideration obligations), (ii) amortization of acquisition-related intangibles and certain license rights, (iii) depreciation of fixed assets, (iv)inventory cost realignments, (v) gains or losses recognized in relation to changes in the fair value of warrants, contingent considerations issued by indie, acquisition-related holdbacks and unrealized gains or losses from currency hedging contracts, (vi) non-cash interest expenses related to the amortization of debt discounts and issuance costs, (vii) share-based compensation, and (viii) income tax benefit (expenses). We calculate non-GAAP share count by adding (i) weighted average Class A common stock, (ii) weighted average Class V common stock held by minority shareholders, which are exchangeable into Class A common stock, (iii) Escrow Shares and (iv) vested but unexercised options issued as part of the TeraXion acquisition. Non-GAAP net loss per share is calculated by dividing non-GAAP net loss by non-GAAP share count.

We exclude the items identified above from the respective non-GAAP financial measure referenced above for the reasons set forth with respect to each such excluded item below:

Acquisition-related and other non-recurring professional expenses - including such items as, when applicable, fair value charges incurred upon the sale of acquired inventory, accounting impact to the cost of goods sold due to one-time inventory costing realignment with a specific supplier, acquisition-related professional fees and legal expenses and other professional fees that are non-recurring in nature because they are not considered by management in making operating decisions and we believe that such expenses do not have a direct correlation to our future business operations and thereby including such charges do not necessarily reflect the performance of our ongoing operations for the period in which such charges or reversals are incurred.

Amortization expenses - related to the amortization expense for acquired intangible assets and certain license rights.

Depreciation expenses - related to the depreciation expenses for all property and equipment on hand.

Inventory cost realignments - related to the supplier allocation premiums introduced during COVID that is currently incorporated in our inventory cost but have since been eliminated going forward. The impact of this premium is deemed non-recurring and therefore not considered by management in its evaluation of the ongoing performance of the business.

Share-based compensation - related to the non-cash compensation expense associated with equity awards granted to our employees (including those granted in lieu of cash compensation) and employer tax related to employee stock transactions. These expenses are not considered by management in making operating decisions and such expenses do not have a direct correlation to our future business operations.

Restructuring costs - related to the one-time expenses the Company incurs to reorganize its operations, which is primarily related to workforce reduction, facilities and other purchase commitment charges.

Gain (loss) from change in fair values - because these adjustments (1) are not considered by management in making operating decisions, (2) are not directly controlled by management, (3) do not necessarily reflect the performance of our ongoing operations for the period in which such charges are recognized and (4) cannot make comparisons between peer company performance less reliable.

Non-cash interest expense - related to the amortization of debt discounts and issuance costs because (1) these expenses are not considered by management in making decision with respect to financing decisions, and (2) these generally reflect non-cash costs.

Income tax benefit (expense) - related to the estimated income tax benefit (expense) that does not result in a current period tax refunds (payments).

The non-GAAP financial measures presented should not be considered in isolation and are not an alternative for the respective GAAP financial measure that is most directly comparable to each such non-GAAP financial measure. Investors are cautioned against placing undue reliance on these non-GAAP financial measures and are urged to review and consider carefully the adjustments made by management to the most directly comparable GAAP financial measures to arrive at these non-GAAP financial measures. Non-GAAP financial measures may have limited value as analytical tools because they may exclude certain expenses that some investors consider important in evaluating our operating performance or ongoing business performance. Further, non-GAAP financial measures are likely to have limited value for purposes of drawing comparisons between companies as a result of different companies potentially calculating similarly titled non-GAAP financial measures in different ways because non-GAAP measures are not based on any comprehensive set of accounting rules or principles.

Non-GAAP EBITDA is calculated by removing non-recurring, irregular and one-time items that may distort EBITDA, to the current non-GAAP financial measures. We calculate non-GAAP EBITDA by excluding from GAAP net income (loss), any (i) acquisition-related and other non-recurring expenses (including acquisition-related or other non-recurring professional fees and legal expenses, deemed compensation expense and expenses recognized in relation to changes in contingent consideration obligations), (ii) amortization of acquisition-related intangibles and certain license rights, (iii) depreciation of property, plant and equipment, (iv) inventory cost realignments, (v) gains or losses recognized in relation to changes in the fair value of warrants, contingent considerations issued by indie, acquisition-related holdbacks and unrealized gains or losses from currency hedging contracts, (vi) non-cash interest expenses related to the amortization of debt discounts and issuance costs, (vii) share-based compensation, and (viii) income tax benefit (expenses).

To the extent our disclosures contain forward-looking estimates of non-GAAP financial measures, such as our forward-looking outlook for non-GAAP EBITDA, these measures are provided to investors on a prospective basis for the same reasons (set forth above) we provide them to investors on a historical basis. We are generally unable to provide a reconciliation of our forward-looking non-GAAP measures because certain information needed to make a reasonable forward-looking estimate of such non-GAAP measures are difficult to predict and estimate and is often dependent on future events that may be uncertain or outside of our control and, therefore, is not available without unreasonable efforts. Such events may include unanticipated changes in our GAAP effective tax rate, unanticipated one-time charges related to asset impairments (fixed assets, inventory, intangibles, or goodwill), unanticipated acquisition-related and other non-recurring professional expenses, unanticipated settlements, gains, losses and impairments and other unanticipated items not reflective of ongoing operations. Our forward-looking estimates of both GAAP and non-GAAP measures of our financial performance may differ materially from our actual results and should not be relied upon as statements of fact.

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indie Semiconductor Reports Fourth Quarter 2024 Earnings