SEGMENT INFORMATION

3 Months Ended

Apr. 01, 2023

SEGMENT INFORMATION

SEGMENT INFORMATION

NOTE 9 - SEGMENT INFORMATION

An operating segment is defined as a component of an enterprise for which discrete financial information is available and is reviewed regularly by the Chief Operating Decision Maker (“CODM”), or decision-making group, to evaluate performance and make operating decisions. The Company has identified its CODM as the Chief Executive Officer (“CEO”).

The Company’s organizational structure and management reporting supports two operating segments: Mobileye and Moovit. The CODM evaluates performance, makes operating decisions and allocates resources based on the financial data of these operating segments. Operating segments do not record inter-segment revenue.

Mobileye is the Company’s only reportable operating segment and Moovit is presented within “Other” as per ASC 280, Segment Reporting. Segment performance is the operating income reported excluding the amortization of acquisition-related intangible assets. The measure of assets has not been disclosed for each segment as it is not regularly reviewed by the CODM.

The accounting policies of the individual segments are the same as those described in the summary of significant accounting policies in Note 2 to the audited consolidated financial statements for the fiscal year ended December 31, 2022.

The following are segment results for each period as follows:

	Three months ended April 1, 2023
					Amounts not
					allocated to
U.S. dollars in millions	Mobileye		Other		segments		Consolidated
Revenues	$	450	$	8	$	—	$	458
Cost of revenues		134		1		116		251
Research and development, net		224		11		—		235
Sales and marketing		13		3		17		33
General and administrative		17		3		—		20
Segment performance	$	62	$	(10)	$	(133)	$	(81)
Other financial income (expense), net								8
Loss before taxes on income								(73)
Share-based compensation		66		6		—		72
Depreciation of property and equipment		7		—		—		7

	Three months ended April 2, 2022
					Amounts not
					allocated to
U.S. dollars in millions	Mobileye		Other		segments		Consolidated
Revenues	$	389	$	5	$	—	$	394
Cost of revenues		92		1		125		218
Research and development, net		169		11		—		180
Sales and marketing		8		3		24		35
General and administrative		4		3		—		7
Segment performance	$	116	$	(13)	$	(149)	$	(46)
Interest income (expense) with related party								1
Other financial income (expense), net								1
Loss before taxes on income								(44)
Share-based compensation		36		4		—		40
Depreciation of property and equipment		5		—		—		5

Total revenues based on the country that the product was shipped to were as follows:

	Three months ended
	April 1,		April 2,
U.S. dollars in millions	2023		2022
China		159		91
Germany		83		25
USA		80		120
South Korea		40		26
United Kingdom		31		69
Poland		22		22
Czech Republic		16		—
Hungary		9		21
Rest of World		18		20
Total	$	458	$	394

We generate the majority of our revenue from the sale of our EyeQ® SoCs to OEMs through sales to Tier 1 automotive suppliers. EyeQ® SoC sales represented approximately 88% and 92% of our revenue for each of the three months ended April 1, 2023 and April 2, 2022, respectively.

Major Customers

Revenue from major customers that amount to 10% or more of total revenue:

	Three months ended
	April 1,		April 2,
	2023		2022
Percent of total revenues:
Customer A	24	%	51	%
Customer B	30	%	*
Customer C	12	%	17	%

*Less than 10%

Accounts receivable balances of major customers that amount to 10% or more of total accounts receivable balance:

	As of
	April 1,		December 31,
	2023		2022
Percent of total accounts receivables balance:
Customer A	23	%	32	%
Customer B	21	%	19	%
Customer C	22	%	25	%

*Less than 10%