SEGMENT INFORMATION

6 Months Ended

Jul. 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 July 1, 2023
					Amounts not
					allocated to
U.S. dollars in millions	Mobileye		Other		segments		Consolidated
Revenues	$	446	$	8	$	—	$	454
Cost of revenues		127		2		101		230
Research and development, net		201		10		—		211
Sales and marketing		9		3		17		29
General and administrative		15		2		—		17
Segment performance	$	94	$	(9)	$	(118)	$	(33)
Other financial income (expense), net		—		—		—		15
Loss before taxes on income		—		—		—		(18)
Share-based compensation		50		5		—		55
Depreciation of property and equipment		8		—		—		8

	Three months ended July 2, 2022
					Amounts not
					allocated to
U.S. dollars in millions	Mobileye		Other		segments		Consolidated
Revenues	$	454	$	6	$	—	$	460
Cost of revenues		115		1		115		231
Research and development, net		172		7		—		179
Sales and marketing		9		2		18		29
General and administrative		8		—		3		11
Segment performance	$	150	$	(4)	$	(136)	$	10
Interest income (expense) with related party, net		—		—		—		(6)
Other financial income (expense), net		—		—		—		4
Income before taxes on income		—		—		—		8
Share-based compensation		32		4		—		36
Depreciation of property and equipment		5		—		—		5

	Six months ended July 1, 2023
					Amounts not
					allocated to
U.S. dollars in millions	Mobileye		Other		segments		Consolidated
Revenues	$	896	$	16	$	—	$	912
Cost of revenues		261		3		217		481
Research and development, net		425		21		—		446
Sales and marketing		22		6		34		62
General and administrative		32		5		—		37
Segment performance	$	156	$	(19)	$	(251)	$	(114)
Other financial income (expense), net		—		—		—		23
Loss before taxes on income		—		—		—		(91)
Share-based compensation		116		11		—		127
Depreciation of property and equipment		15		—		—		15

	Six months ended July 2, 2022
					Amounts not
					allocated to
U.S. dollars in millions	Mobileye		Other		segments		Consolidated
Revenues	$	843	$	11	$	—	$	854
Cost of revenues		207		2		240		449
Research and development, net		341		18		—		359
Sales and marketing		17		5		42		64
General and administrative		12		3		3		18
Segment performance	$	266	$	(17)	$	(285)	$	(36)
Interest income (expense) with related party, net		—		—		—		(5)
Other financial income (expense), net		—		—		—		5
Loss before taxes on income		—		—		—		(36)
Share-based compensation		68		8		—		76
Depreciation of property and equipment		10		—		—		10

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

	Three months ended				Six months ended
	July 1,		July 2,		July 1,		July 2,
U.S. dollars in millions	2023		2022		2023		2022
China		110		143		269		234
Germany		86		77		169		102
USA		93		109		173		229
South Korea		41		29		81		55
United Kingdom		46		44		77		113
Poland		20		22		42		44
Czech Republic		14		—		30		—
Hungary		25		16		34		37
Rest of World		19		20		37		40
Total	$	454	$	460	$	912	$	854

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 92% and 92% of our revenue for each of the three months ended July 1, 2023 and July 2, 2022, respectively and 90% and 92% of our revenue for each of the six months ended July 1, 2023 and July 2, 2022, respectively.

Major Customers

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

	Three months ended				Six months ended
	July 1,		July 2,		July 1,		July 2,
	2023		2022		2023		2022
Percent of total revenues:
Customer A	32	%	37	%	28	%	43	%
Customer B	23	%	22	%	27	%	15	%
Customer C	14	%	13	%	13	%	15	%

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

	As of
	July 1,		December 31,
	2023		2022
Percent of total accounts receivables balance:
Customer A	32	%	32	%
Customer B	21	%	19	%
Customer C	18	%	25	%