From Big 4 to CFO: Conor Tierney's Journey to Leading a Lidar Tech Company

Value Drivers

Conor Tierney, CFO of AEye, a lidar sensor company, discusses his career journey, the lidar technology and market opportunity, AEye’s business model and financial strategy, and his advice for those starting their careers.

Originally from Ireland, Tierney began his career working for PwC in the Silicon Valley during the early 2000s. He gained valuable experience working on IPOs, carve-outs, and financial due diligence for private equity companies. He credits his time at Big 4 accounting firms for providing him with a solid foundation and accelerating his learning trajectory.

Tierney joined Glu Mobile, a mobile gaming company, where he witnessed the company’s struggles and eventual success with the launch of the Kim Kardashian game. He later joined Alphabet’s X division to spin out their drone delivery business, Wing Aviation. At Wing, he was involved in setting up the company's structure, working on the marketplace platform, and overseeing business intelligence.

Tierney then joined AEye, a company that develops and manufactures lidar sensors used for 3D vision in vehicles and machines.

He explains that AEye’s lidar technology addresses the problem of road safety, citing the increasing number of pedestrian fatalities and accidents globally. AEye’s lidar technology aims to improve upon existing camera and radar systems by providing higher resolution and reliable performance in all lighting conditions.

The company's business model involves partnering with Tier 1 automotive suppliers to manufacture and distribute their lidar sensors. This capital-light approach allows AEye to focus on developing their technology while leveraging the existing infrastructure of established partners.

Several key elements of Conor Tierney's approach to financial management:

Prioritize Cash Management: As CFO of AEye (NASDAQ: LIDR), a company operating in the capital-intensive and evolving automotive lidar market, Tierney places significant importance on cash management. A recurring theme in the podcast, Tierney highlights the need to "manage burn rate" and maintain a "balancing act" between investing in the product and managing runway.

Focus on Strategic ROI: Tierney emphasizes the CFO's role as a business partner, actively participating in strategic decision-making. He focuses on evaluating investment opportunities and ensuring resources are allocated to areas with the highest potential return on investment. This includes challenging the business to think through ROI on product development, carefully assessing market opportunities, and understanding the payback period for various investments.

Embrace Lean Operations and Creative Solutions: Tierney advocates for a lean approach to operations. At AEye, the finance team operates with a small core team, supplemented by temporary resources and consultants as needed. This demonstrates a willingness to embrace creative solutions to manage costs and maximize investment in R&D and product development.

Build a Strong Governance Framework: Drawing on his experience in public accounting and various corporate roles, Tierney prioritizes building a robust governance framework. This includes implementing necessary systems and controls to ensure financial reporting accuracy and compliance, which he believes is crucial for establishing credibility with the market and stakeholders.

Maintain Financial Discipline and Flexibility: While acknowledging the importance of supporting growth, Tierney emphasizes the need for financial discipline, particularly in volatile markets. He stresses the importance of being able to "dial up and dial down" investment levels as needed, adapting to changing market conditions while maintaining a stable baseline.

Chapter Summary

(00:01:00) Introduction and Background

(00:10:35) AEye and the Lidar Market Opportunity

(00:15:47) AEye's Business Model and Financial Strategy

(00:22:38) Leadership and Team Building

(00:26:19) The Evolving Role of the CFO and Technology's Impact

(00:29:09) Career Advice and Personal Reflections

(00:34:27) Book and Podcast Recommendations

(00:36:32) Saying No and Conclusion

Books and Podcast Recommendations

Essentialism: The Disciplined Pursuit of Less by Greg McKeown

https://www.amazon.com/Essentialism-Disciplined-Pursuit-Greg-McKeown/dp/0804137382

Measure What Matters: How Google, Bono, and the Gates Foundation Rock the World with OKRs by John Doerr

https://www.amazon.com/Measure-What-Matters-Google-Foundation/dp/0525536221

Diary of a CEO hosted by Steven Bartlett

https://stevenbartlett.com/doac/