Most people have never heard of Mobileye, a Jerusalem company specializing in Advanced driver Assisted Systems, yet some forecasts predict a value of more than one billion dollars for it, marking yet another stunning Israeli success story.
Mobileye, founded by company CEO Professor Amnon Shashua, develops vehicle safety solutions using image-processing technologies. The company is registered and headquartered in Holland and has offices in Nicosia, Tokyo and Detroit.
A recent analysis commissioned by an investor offered Calcalist a rare glimpse behind the scenes of the company, which the accountancy firm valued at at $751 million.
Since its foundation in 1998, the company has raised about $157 million in investments. Its shareholders include Goldman Sachs and Motorola and according to IVC-ONLINE, also First International Bank’s FIBI Bank and General Motors.
Research shows that Mobileye is still in the red. Although projected to end 2012 with doubled sales amounting to $45 million, it is expected to report losses. Nonetheless, forecasts cite 2013 as the tipping point where it will switch to a massive $42 million operating profit, which is expected to swell to nearly a half a billion dollars in the following three years.
By now, Mobileye’s systems have been incorporated into vehicles made by General Motors, BMW and Volvo. Future contracts include manufacturers such as Hyundai, Mitsubishi, Peugeot Citroën, Opel, Ford and Honda.
The recent evaluation set forth four future scenarios for the company’s operations:
According to the first scenario, based on Mobileye’s forecasts, the company’s new contracts will catapult its revenue to $45 million by the end of 2012, and increasing revenues to $726 million in 2016. This forecast represents a current value of $1.1 billion.
The least optimistic scenario proposes a slow penetration rate ending in 2019 and projects $130 million revenues for 2015 and a $538 revenue for 2019, setting a current market value of $416 million.
The final valuation of $751 million represents the average valuation of all four scenarios.
Article originally published by Calcalist in Hebrew