Mobileye Global Inc.: history, ownership, mission, how it works & makes money

A Brief History of Mobileye Global Inc.

Mobileye Global Inc., founded in 1999 by Amnon Shashua and Ziv Aviram, emerged from the Technion – Israel Institute of Technology. The company specializes in advanced driver-assistance systems (ADAS) and autonomous driving technologies.

In 2007, Mobileye launched its first commercially available product, the Mobileye 560, which provided lane departure warnings—marking a significant advancement in automotive safety technology. By 2014, the company had expanded its suite of products, securing partnerships with leading automotive manufacturers including BMW, Audi, and General Motors.

Mobileye went public on the New York Stock Exchange on July 31, 2014, under the ticker symbol MBLY. The IPO was priced at $25 per share, raising approximately $1 billion and valuing the company at approximately $5 billion. In its first day of trading, shares closed at $37.83, a remarkable 51% increase from the IPO price.

On March 13, 2017, Intel Corporation announced its acquisition of Mobileye for approximately $15.3 billion. The acquisition aimed to enhance Intel’s positioning in the autonomous driving space and was finalized in August 2017.

Under Intel's umbrella, Mobileye continued to innovate, unveiling its EyeQ5 chip in 2021, designed for fully autonomous vehicles. The technology is expected to play a crucial role in the advancement of Level 4 autonomy systems. By 2022, Mobileye’s products were embedded in over 100 million vehicles globally.

In October 2022, Mobileye filed for an initial public offering again, aiming to raise around $1 billion. The company debuted on the NASDAQ on October 26, 2022, under the ticker symbol MBLY, pricing its shares at $21.

As of the end of 2023, Mobileye reported revenues of approximately $1.8 billion, reflecting a 20% increase year-over-year. The strong financial performance is attributed to the growing demand for ADAS technologies.

Mobileye's advancements in artificial intelligence and machine learning have positioned it as a leader in the automotive technology sector. With a strong focus on safety and innovation, its future appears promising as the global automotive industry shifts towards greater automation and intelligence in vehicle systems.

A Who Owns Mobileye Global Inc.

Mobileye Global Inc. is a publicly traded company specializing in advanced driver-assistance systems (ADAS) and autonomous vehicle technologies. As of the latest data, Mobileye operates under the ticker symbol "MBLY" on the Nasdaq stock exchange.

As of October 2023, the ownership structure of Mobileye is composed of institutional and retail investors, alongside its founding entities. Significant stakeholders include:

The company was acquired by Intel Corporation in October 2017, which currently holds a substantial ownership stake. Intel acquired Mobileye for approximately $15.3 billion, and continues to influence its strategic direction.

In the most recent quarterly report, Mobileye reported a revenue of $450 million for Q3 2023. This represents a year-over-year increase of 30%. The company anticipates continued growth driven by increasing demand for ADAS solutions in both consumer and commercial vehicles.

In terms of financial performance, Mobileye has been profitable for several years, with a net income of $90 million reported over the last fiscal year. The earnings before interest, taxes, depreciation, and amortization (EBITDA) for the same period was around $200 million.

The company's market capitalization is estimated at approximately $45 billion as of October 2023, reflecting investor confidence in its growth prospects and the broader shift toward autonomous and connected vehicle technologies.

Mobileye continues to expand its partnerships with automotive manufacturers. Notable collaborations include deals with Ford, BMW, and Volkswagen for the integration of its technologies into their vehicle lines, further solidifying its position in the market.

As of now, Mobileye’s stock has performed well since its IPO, with a year-to-date increase of approximately 25%. Analysts remain bullish, with a consensus price target suggesting an upside of about 15% from current trading levels, which indicates strong confidence in its growth trajectory in the autonomous vehicle space.

Mobileye Global Inc. Mission Statement

Mobileye Global Inc. focuses on developing advanced driver-assistance systems (ADAS) and autonomous driving technologies. The company’s mission is to ensure safety on the roads while facilitating the transition to fully autonomous vehicles. Their commitment revolves around creating innovative solutions that not only protect lives but also improve mobility for all users.

The mission statement emphasizes the importance of safety, innovation, and accessibility. Mobileye aims to leverage its cutting-edge technology to lead in the fields of machine vision and artificial intelligence. By doing so, they strive to reduce traffic accidents and enhance the driving experience through advanced technological solutions.

As of October 2023, Mobileye reported a year-over-year revenue increase driven by strong demand in the automotive sector. In Q2 2023, the company’s revenue reached approximately $454 million, compared to $393 million in Q2 2022, representing a growth of 15.5% year-over-year.

Mobileye’s advanced driver-assistance systems are implemented in multiple vehicle models across various manufacturers, which highlights the company’s significant market presence. As of 2023, Mobileye’s technology is integrated into over 100 million vehicles globally.

Furthermore, Mobileye continues to innovate within the autonomous driving sector. Their roadmap includes the rollout of the Mobileye Drive platform, which is designed to support fully autonomous vehicles by utilizing high-definition mapping and robust sensor fusion technology. This technological framework is pivotal for achieving their mission of safer and more efficient transportation.

In 2023, the company projected that revenues from the autonomous driving segment could reach $1 billion by 2025, reflecting the growing adoption of their systems in the automotive industry. This growth underscores Mobileye's commitment to leading advancements in road safety and autonomous vehicle technology.

Mobileye’s strategic partnerships with major automotive manufacturers and tech companies amplify their mission-driven approach, facilitating the expansion of their technologies into new markets. As part of their mission to increase safety, Mobileye is also working on initiatives to expand accessibility for disabled individuals and enhance public transportation systems through automated technologies.

In summary, Mobileye Global Inc. is dedicated to driving innovation and ensuring safety through advanced technologies, aligning their mission statement with tangible growth metrics, product advancements, and societal impact in the realm of transportation.

How Mobileye Global Inc. Works

Mobileye Global Inc. operates primarily in the automated driving technology sector, focusing on advanced driver-assistance systems (ADAS) and autonomous vehicle solutions. The company was founded in 1999 and is headquartered in Jerusalem, Israel. As of October 2023, Mobileye is a subsidiary of Intel Corporation, which acquired it in 2017 for $15.3 billion.

Mobileye's primary technology revolves around its EyeQ chips, which process data from various sensors including cameras and radars to enable real-time analysis and decision-making for vehicles. These chips power features such as lane departure warnings, adaptive cruise control, and automatic emergency braking.

As of Q2 2023, Mobileye reported revenue of $460 million, marking a 40% year-over-year increase. The gross profit margin stood at 65%, reflecting the high-value nature of its technology and solutions. The company has partnerships with over >80 automotive manufacturers globally, including Volkswagen, BMW, and General Motors.

Mobileye’s product offerings include:

• ADAS solutions for semi-autonomous driving
• Complete autonomous vehicle technology.
• Mapping and localization services through its Road Experience Management (REM) system.

The Road Experience Management (REM) system collects and processes data from vehicles equipped with Mobileye technology to create high-definition mapping as they drive, improving navigation and safety features.

In 2023, Mobileye announced plans to expand its production capabilities with a new manufacturing facility located in Israel, expected to begin operations by mid-2024. This facility aims to meet the growing demand for its EyeQ chips, which are projected to see shipment growth from 30 million units in 2022 to over 100 million by 2025.

As of October 2023, Mobileye has a market capitalization of approximately $20 billion, driven by investor interest in autonomous vehicle technology and ADAS. The company’s stock, traded under the ticker symbol MBLY, has shown volatility but generally upwards momentum since its public offering in late 2022.

Moreover, Mobileye's focus on research and development is evident with an investment of $150 million in R&D in 2022. This investment supports the continuous refinement of its algorithms and the advancement of its product roadmap, including the launch of Mobileye's next-generation EyeQ Ultra chip, set to deliver twice the processing power of its predecessor.

In summary, Mobileye Global Inc. leverages cutting-edge technology to enhance vehicle safety and automation, with significant partnerships shaping its presence in the automotive industry. The company’s solid financial performance and strategic investments position it well within the rapidly evolving landscape of autonomous driving technology.

How Mobileye Global Inc. Makes Money

Mobileye Global Inc. generates revenue primarily from its advanced driver-assistance systems (ADAS) and autonomous driving technologies. The company operates through a combination of product sales, licensing agreements, and partnerships with automotive manufacturers.

Revenue Streams

• Product Sales: Mobileye sells its proprietary hardware and software solutions directly to automotive manufacturers. In 2022, the segment generated approximately $1.4 billion in revenue.
• Licensing and Royalties: The company earns income from licensing its technology to third-party developers and manufacturers. This segment contributed about $300 million in 2022.
• Data Services: Mobileye also provides data services, including mapping and fleet management software. In 2022, this segment brought in around $150 million.

Key Financial Metrics

In the fiscal year 2022, Mobileye reported total revenue of approximately $1.85 billion, showcasing a growth rate of 20% compared to the previous year.

Automotive Partnerships

Mobileye has established strategic partnerships with several major automotive manufacturers, which enhance its market reach. Collaborations include:

• Volkswagen: Joint development of autonomous vehicle systems.
• Ford: Integration of Mobileye’s technology in Ford’s commercial vehicles.
• BMW: Partnership focused on ADAS and autonomous driving functions.

Market Trends and Growth Opportunities

The global automotive ADAS market is projected to grow from $26 billion in 2021 to over $80 billion by 2027. Mobileye is well-positioned to capture a significant share of this market due to its technological advancements and existing partnerships.

Cost Structure

Mobileye's cost structure includes research and development (R&D), manufacturing, and operational expenses. In 2022, R&D expenses were approximately $600 million, representing about 30% of total revenue.

Recent Earnings Performance

In the latest earnings call for Q2 2023, Mobileye reported:

• Revenue: $500 million
• Net Income: $50 million
• Adjusted EBITDA Margin: 25%

The company continues to invest heavily in AI and machine learning technologies to enhance its product offerings, aiming to maintain competitiveness in a rapidly evolving market.