Mobileye's IPO valuation of £12.3 billion last October was considered disappointing. The Israeli self-driving firm had hoped for a valuation of approximately £38 billion when Intel began considering taking it public a year prior. However, the economic downturn took its toll on public markets.
Amnon Shashua. (Mobileye)
Investors in Mobileye's IPO are likely regretting their decision, as the company's shares have doubled in value over the past quarter. Mobileye currently has a market cap of over £26 billion, entering trading this week, and a £38 billion valuation no longer seems like a distant dream.
A few weeks ago, Mobileye announced that its revenue projections for 2023 are higher than analysts' predictions and delivered better-than-expected earnings in Q4. The company's founder and CEO, Amnon Shashua, stated that Mobileye has a revenue pipeline of over £13 billion through 2030 for its core advanced driver-assistance system (ADAS) products.
Mobileye is promoting the adoption of its near-fully autonomous system, SuperVision, and attracting interest for Chauffeur, a product that can turn any vehicle into a Level 4 self-driven vehicle. Shashua stated in a recent analyst call, "We expect SuperVision to be a major growth driver in 2023 and beyond." He added that it is sold at a higher price compared to other products.
Mobileye, majority owned by Intel, predicts full-year 2023 revenue between £1.7 billion and £1.8 billion. The midpoint of this range is higher than the average analyst estimate of £1.7 billion, according to Refinitiv data.
Revenue rose by 59% to £439 million in Q4 2022, surpassing the estimated £421 million. Mobileye reported adjusted earnings per share of 21p, compared to the consensus estimate of 13p.