NEW YORK and TEL AVIV, Israel – Gauzy Ltd. (NASDAQ: GAUZ), a developer of light and vision control technology, has announced the implementation of its Smart-Vision® camera monitor system (CMS) on buses operated by the Capital District Transportation Authority (CDTA) in New York. This initiative, part of a multi-year program aimed at enhancing road safety, marks the replacement of traditional side mirrors with advanced driver assistance systems (ADAS) on public transportation vehicles.
The technology was introduced during a special ceremony on October 3, 2024, reflecting the growing adoption of ADAS in the transit industry. Gauzy's CMS, marketed as Luminator Video Mirror in North America, is distributed exclusively by Luminator Technology Group for the transit market. The system is designed to reduce blind spots and improve driver visibility, which is expected to minimize collision risks and enhance passenger safety.
Gauzy's expansion in the commercial vehicle CMS/ADAS market is evident, with sales projections expected to exceed $100 million by the end of 2025. The company's technology has been gaining traction across North America, Europe, Asia, and Australia, with transportation officials expediting regulatory approvals for its installation.
The Smart-Vision® CMS is compatible with both 40- and 60-feet long bus models, offering a compact, aerodynamic camera design and interior displays that adapt to varying light conditions. This feature not only contributes to better driving comfort but also helps to reduce driver fatigue. The system's cameras are designed to withstand glare from the sun and other light sources, providing a consistent view for drivers. Additionally, the CMS is fully homologated according to UNECE standards and has been shown to cut accident-related costs by up to 60%.
The global mass transit bus market is anticipated to grow significantly, with a compound annual growth rate (CAGR) of 8.1% from 2023 to 2032, potentially reaching over $936 billion. Gauzy's CEO, Eyal Peso, expressed confidence in the company's ability to secure a substantial market share and strengthen its sales pipeline amidst this growth.
The adoption of Gauzy's Smart-Vision® CMS by CDTA highlights a broader industry trend towards prioritizing road safety and leveraging technology to achieve it. Gauzy anticipates announcing further agreements with public transportation agencies for its ADAS technology in the near future.
This article is based on a press release statement.
In other recent news, Gauzy Ltd. has reported a significant increase in its aeronautics business revenue for the first half of 2024, reaching approximately $20.2 million. This growth is attributed to the company's dominance in the aircraft shading market, where it now holds a 95% share. Gauzy anticipates a 40% increase in cockpit shading revenue in 2024 compared to 2023, projecting an aggregate revenue of $240 million over the next decade from this segment.
The company's Smart-Vision Camera Monitoring System (CMS) will also be implemented on city buses in Paris, starting with the 2024 Olympics, aiming to enhance road safety by improving driver visibility and reducing blind spots. As for financial performance, Gauzy expects Q2 revenues to range between $24.0 million and $24.5 million, a significant increase from the previous year. The first half of 2024 is projected to bring revenues between $48.7 million and $49.2 million, representing an approximate growth of 22% for Q2 and 31% for the first half of the year.
Finally, analysts from Stifel and TD Cowen have initiated a 'Buy' rating on Gauzy, with Stifel setting a price target of $18 and TD Cowen a price target of $24. Both firms highlight the potential for Gauzy to leverage its innovative technologies across various industries and customer segments. These developments indicate a strong belief in Gauzy's future potential, as demonstrated by the recent investment of $501,400 by key executives in the company.
InvestingPro Insights
As Gauzy Ltd. (NASDAQ: GAUZ) implements its Smart-Vision® camera monitor system on CDTA buses, investors may be interested in the company's financial health and market performance. According to InvestingPro data, Gauzy's revenue growth has been robust, with a 36.53% increase over the last twelve months as of Q2 2024, reaching $89.75 million. This aligns with the company's projected sales of over $100 million by the end of 2025 for its commercial vehicle CMS/ADAS market.
However, despite the strong revenue growth, InvestingPro Tips indicate that Gauzy is "quickly burning through cash" and is "not profitable over the last twelve months." This is reflected in the company's operating income margin of -39.45% for the same period. These factors may be important considerations for investors as Gauzy expands its market presence in the growing mass transit bus market.
The stock's recent performance has been challenging, with InvestingPro data showing a -48.81% price return over the past six months. This decline has brought the stock close to its 52-week low, which an InvestingPro Tip notes as "trading near 52-week low." This could present an opportunity for investors who believe in the company's long-term potential, especially given the projected growth in the global mass transit bus market.
For those seeking a more comprehensive analysis, InvestingPro offers additional insights with 10 more tips available for Gauzy Ltd., providing a deeper understanding of the company's financial position and market outlook.
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