A – Dan Galves: Yes. I think maybe I’ll start and then maybe Moon can talk a little bit more. So cloud-enhanced ADAS has the potential to generate recurring annual revenue from the maintenance of the map. Those volumes are still relatively small because it was really just a couple of platforms from Volkswagen Group. Ford will be adding REM to their Blue crude. So the volume should start to ramp pretty significantly next year. But the function of annual recurring revenue if you want to see kind of repeated years building up a cumulative number of cars, and that’s when it starts to make a big difference. So we’ll see some effect next year of the recurring revenue, but it could get much more meaningful in the future years. I think that on software bundle revenue, we’re really encouraged by the feedback that we’re getting from consumers in China at the end of the day to take these, the supervision functionality and pay an incremental cost from the consumer perspective, obviously, that’s going to come from whether they value the system or not.
That’s why we think that the free trial was a really good idea because there is a lot of value in the system and it’s better for people to experience that rather than make them make the decision before they’ve ever experienced it. And just one thing to reiterate is of the beta users of that system, 95% said that they would pay for the system. We don’t think that the penetration rate is going to end up that high, but it’s a really encouraging sign. I don’t know if Moran has anything else to end, and that should start to happen in the second half of next year. Moran?
A – Moran Shemesh Rojansky: Yes. So yes, so neither the volumes or recurring revenues are a major material impact this year in 2023. But we see the growth trajectory on ASP, the Claudine, AWS and RAM revenue will start to provide some modest tailwinds to ASP in 2024. And as Dan mentioned, for supervision, it’s only in maybe the back half of 2024 after the traveling tenant.
A – Dan Galves: Yes. But to be more concrete about supervision with Diker, every customer that is converted to paying for MDP is a few hundreds of dollars to mobile. That’s the average.
Aaron Rakers: Yes. Very helpful. And then I think there was a comment in the prepared remarks that I think it was in the context of also Zika and other brands within the Geely Group had you said could add significant volume in the near future. Can you help us appreciate that a little bit more? What are you kind of referring to there? It sounds like within Geely?
A – Dan Galves: Yes. Within Geely, it’s more design wins. So we’re working on more platforms beyond the 2025 timeframe.
Aaron Rakers: Okay. Thank you very much.
Operator: Our next question comes from Emmanuel Rosner with Deutsche Bank. Please, go ahead.
Emmanuel Rosner: Thank you very much. First of all, I would also like to express my sauce prayers and support to the Mobileye family in a horrible circumstances. I wanted to ask you first on your the FAW we obviously extremely encouraging in a new customer and then start pretty soon in late 2024. Can you just frame for us again the scope of what the current win is in terms of the brand and perhaps vehicle models or what timeline? And then what would be the timeline around potential expansion of it and in which direction would that relationship expand?
A – Dan Galves: So the relationship is on design wins of supervision starting from end of 2024. So it’s the same domain controller that is running on the Z vehicle, so the IQ 6, it’s IQ 5. It’s a rollout for old brands of FAW starting from end of 2024. I think more than 6 brands. Then a year later, based on IQ 6 is the shelf. So they are going to be one of the first customers post our 4 also customer, but also SAW on the shore with the first system of IQ 6 will include also one of our imaging radars. So it’s not just the domain controller, but also we’ll start providing also sensors. So that’s the scope of the relationship.
Emmanuel Rosner: Then in your prepared remarks, you also alluded potential expansion to some of the joint venture brands. How would that play out? Who needs to take this sort of decision? And what is the timeline for that?
Amnon Shashua: Yes, I don’t know it’s a speculation. It’s difficult to put a probability on it. But I believe that a successful rollout of supervision on FAW’s owned brands would be a good catalysis to start moving to the joint venture brands as well. But at the moment, there is nothing concrete there.
Emmanuel Rosner: Understood. And I guess just following up quickly then, since this is launching already in late 2024, obviously, helping with some of your supervision volumes next year. I understand your point on higher confidence in 2025, 2026 since this is the bulk of the launches, but still curious about your latest mark-to-market on what 2024 volumes could look like for supervision is a little bit more than doubling this year, still on track, especially with the addition of FAW.
Amnon Shashua: Yes. I think this is a good estimate about doubling what we have in 2023, slightly more, but this is a good estimate.
Emmanuel Rosner: Yes, we feel the same as we did last quarter when we made the comment.
Amnon Shashua: Great. Thank you.
Operator: Our next question comes from Pierre Ferragu with New Street Research. Please go ahead.
Pierre Ferragu: So, I think you made interesting comments about China in your prepared remarks. It must be like a very interesting market at the moment with you guys ramping up supervision. And at the same time, you have like a handful of competitors who started to pull on the market like in the hands of drivers of consumers kind of like sales driving features that provide like, I would say, a similar service but with more compute and more sensors, more than just camera. And I’d love to hear how much you’ve been able to assess the difference in user experiences between supervision and these alternative features. And how you feel about it is, at the end of the day, all these systems competing within that like a very similar ground. Are they offering very similar experiences, or do you see like significant differences emerging between supervision and what the rest of the market has been able to put on the road so far?
