Canoo held its second quarter earnings presentation on August 14, 2024 but if you were hoping for updated production numbers you came away disappointed.
Much of the call was spent going over news previously reported by EV Rider.
Perhaps the biggest news for investors is that Canoo continues to have the ability to raise capital ahead of meaningful volume production.
The EV startup reported it’s raised an additional $104 million year-to-date and set a quarterly revenue record of $605,000.
Canoo Q2 Investor Call Audio
After delivering a handful of EVS to the U.S. Postal Service in May for testing, CEO Tony Aquila and his team are preparing to go after a big order from the USPS and from international customers thanks in large part to Canoo’s ability to deliver right-hand-drive vehicles.
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“We are focused on the upcoming USPS RFP for electric vehicles expected later this year or in early Q1 of ’25 for an estimated 10 to 12,000 units in that RFP,” Aquila said.
Saudi Arabia could also become a big market for Canoo where Red Sea Global has now completed its 45-day testing of Canoo EVs. Aquila said the testing took place “over 3,000 miles in rigorous desert conditions, sand rock for 80% of the miles heat, 50% of the days were over 100°, with Max of 120°F and average ambient temperature of 99°.”
A significant portion of the call was spent updating investors on Walmart, which is perhaps Canoo’s highest profile customer.
“It was July of 2022 when we announced Walmart’s order. We partnered with the Walmart team and completed two years of extensive testing and refining of specifications and use cases,” Aquila said.
The theme of the call was basically that Canoo is getting its cost structure down while continuing the build out at its Oklahoma City plant and finalizing EV configurations for orders already received. A good portion of the call was also spent discussing future sales prospects both in the U.S. and abroad.
There was no hint of how many actual EVs have been built so far this year. Earlier Canoo said it expected to build approximately 3,000 EVs in 2024.
Unlike many EV manufacturers, Canoo is forecasting it will be able to turn a profit on a relatively low production volume. “And so we’re not scattered, we’re not weakened, we’re not burning capital, you know, and we’re really focused on being profitable. You know, starting to breakthrough at 24,000.” Canoo’s CEO said.
Canoo Q2 2024 Earnings Report News Release
- Quarterly revenue record of $605K
- Quarterly Adjusted EBITDA was $(38.6) million, an improvement of 38% versus Q2 2023, and an improvement of 20% versus Q1 2024
- Adjusted Net Loss Per Share was $(0.61), a 46% improvement from $(1.13) per share in Q1 2024
- 33% or $20.7 million reduction in Operating Expenses versus Q1 2024
- Reduced total quarterly cash outflow by $39 million or 49% in Q2 2024 versus Q2 2023
- Relocating headquarters from California to Texas and continued migration to our Oklahoma City and Pryor, OK facilities
- Successfully concluded Red Sea Global pilot in extreme terrains and climatic conditions
- Advanced our customer acquisition of large commercial fleets in the US, UK and Middle-East which allows us to take advantage of our right and left hand drive products
- Received 50 containers of Arrival UK assets year-to-date
Oklahoma City facility Foreign Trade Zone approved for activation
JUSTIN, Texas, Aug. 14, 2024 (GLOBE NEWSWIRE) — Canoo Inc. (Nasdaq: GOEV), a high-tech advanced mobility company, today announced its financial results for the second quarter of 2024.
“This quarter represented good progress with US and international customers completing pilots and testing. We are focused on left-hand drive and right-hand drive large fleet customers and finalizing their configurations,” said Tony Aquila, Investor, Executive Chairman and CEO. “This demonstrates our platform’s versatility and stability, a result of more than 34,000 recent real world, industrial use customer miles.”
Second Quarter and Recent Business Updates:
- Deliveries to US Postal Service of right-hand drive LDV 190s; on the road delivering mail
- Successful Supplier Engagement Days with approximately half of bill of materials represented in Oklahoma City
- Announced entering of Saudi Arabia market with commercial vehicle sales to Jazeera Paints
- 23% of capital raised in Q2 2024 from non-dilutive sources
- Completed initial milestone of Phase 3 of the contract with Defense Innovation Unit, a division of the U.S. Department of Defense supporting the government’s advanced energy systems research needs
Second Quarter Financial Highlights:
- As of June 30, 2024, we had cash, cash equivalents and restricted cash of $19.1 million. After giving effect to net proceeds from the July 2024 PPA totaling $14.1 million, our cash, cash equivalents and restricted cash balance would have been $33.2 million on June 30, 2024.
- GAAP net loss and comprehensive loss of $(5.0) million and $(115.6) million for the three and six months ended June 30, 2024, compared to a GAAP net loss and comprehensive loss of $(70.9) million and $(161.6) million for the three and six months ended June 30, 2023. The GAAP net loss and comprehensive loss for the three and six months ended June 30, 2024 included a gain of $48.3 million and gain of $38.8 million on the fair value change of the warrant and derivative liability, respectively, a loss on fair value change of convertible debt of $(8.5) million and $(67.1) million, respectively, and a loss on extinguishment of debt of $0.0 million and gain on extinguishment of debt of $24.5 million respectively.
- Adjusted EBITDA of $(38.6) million and $(86.9) million for the three and six months ended June 30, 2024, compared to $(62.3) million and $(129.4) million for the three and six months ended June 30, 2023.
- Adjusted Net Loss of $(42.7) million and $(100.0) million for the three and six months ended June 30, 2024, compared to $(69.1) million and $(141.1) million for the three and six months ended June 30, 2023.
- Adjusted EPS per share of $(0.61) and $(1.66) for the three and six months ended June 30, 2024, compared to $(3.14) and $(7.02) for the three and six months ended June 30, 2023.
- Net cash used in operating activities totaled $83.4 million for the six months ended June 30, 2024, compared to $129.5 million for the six months ended June 30, 2023.
- Net cash used in investing activities was $6.9 million during the six months ended June 30, 2024, compared to $33.9 million during the six months ended June 30, 2023.
- Net cash provided by financing activities was $88.5 million during the six months ended June 30, 2024, compared to $132.2 million during the six months ended June 30, 2023.
2024 Business Outlook
Based on our current projections, Canoo reaffirms its prior cash flow guidance. Additionally, due to the pacing of capital and supply chain harmonization, Canoo expects its Adjusted EBITDA to be between $(120) million to $(140) million for the second half of 2024.
See “Non-GAAP Financial Measures” section herein for an explanation of Adjusted EBITDA. The Company is unable to provide a reconciliation for forward-looking guidance of Adjusted EBITDA to net loss, the most closely comparable GAAP measure, because certain material reconciling items, such as depreciation and amortization and interest expense cannot be estimated due to factors outside of the Company’s control and could have a material impact on the reported results. A reconciliation is not available without unreasonable effort.
Editorial Disclosure: The author of this post is a Canoo shareholder.