GOEV - Earnings call transcript Q3 2024

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings. Welcome to the Canoo Q3 2024 Earnings Presentation.

[Operator Instructions]

Please note that this conference is being recorded. I will now turn the conference over to your host, Kunal Bhalla, Chief Financial Officer. you. Thank

begin. may You

Kunal Bhalla

for on everyone, earnings QX call. joining you, our us XXXX Thank

Tony differ on based risks efforts. our update will the may to results. will During call, significant that advised you materially. expectations. over QX update results we actual These our Please subject be go forward-looking provide on and our current capital and will raising statements uncertainties Ramesh make the may financial on an I business. are

that could business, reports factors XX-Q our future the For in the and of a and release, that Form affect financial results file with most SEC, please disclosure other discussion may and XX-K recent to including refer we and Form today's earnings our X-K.

as information based and as made of obligation us. assume Except statements. All today currently by to update of on law, we to required no statements are available such our any are

financial of in measures can we'll IR call, you it find website. measures, section the release, of earnings today's GAAP reconciliation a found to I'll Tony. can our which discuss on During over hand that, be the financial non-GAAP financial non-GAAP With these to measures

Tony Aquila

automotive capital independent. challenges the not inflation, plan. but earth materials transition that the rates, to is align step that to backdrop, Kunal. With until only fully have EVs, debate is disruptions we struggled becomes industry center also supply there level relates which navigate markets means with are America chain also of to volatility manufacturing the to rare Thanks, our interest in political The it facing as and

aggressive willing which must done as operations, are organization earlier our This markets, team, more are do with should on focus value which pay with more have what a in short-term the and building and the of be our on actions sharpen committed in and plan. we to creating meet it incentives, us long-term structure. take all our American executive in believes will back what starts flatter we including and XXXX. our and we product North realign to flatten capital I to disciplined be we takes, focused While With we cost and customers' continue step-level customers our Kunal efficient aligning operating and track us shareholders leaner, and cuts needed demand our cross-functional for our exchange and a with the solutions getting manufacturing raising more for to on that, core

Our X, footprint Pryor, consolidation. our Oklahoma Oklahoma. Justin, City X to Consolidating facilities and from Texas,

higher-paying jobs been a and have we've we some of to have advanced and we increase states through While of the manufacturing us. impacted upon we a been coaster, which our And engineering turbulence, heavy Oklahoma roller decision net of on brought Oklahoma made Unfortunately, to workforce City, or in the which furlough workforce. weighs XX most of recently, Texas. XX% teammates our has difficult our

online. This place period can but we jobs consolidate, those we will back will bring in continue capital and we be difficult to everything get as the in to a do critical

our relocations On the facilities to have from [indiscernible] date California Texas. positive, and to we XX achieved Oklahoma

base our as happy exports that we hear is with right-hand an share fleet pool blocks friendly also it's environmentally electrifying partners, supply only, customers Further, government Focus to both fleets supplier harmonization. our commercial, demand, and a partnership our Oklahoma our beneficial not business for prices for for of growing and part left established an be customer completed markets. of have will just import certifications our FTC many received firming suppliers and have established We building decision. on our chain economically are drive decision,

have received to appreciate order made vehicles. deposits we our have all orders the books. the difficult Therefore, serviceable entering this solely on consumer profitable decision will We that consumer on of know, until are many for focused or as high customers at we our we fewer fleet Thus, In not be market focus customer grade phase, for refund we you profitable our to and have consumer credit is but us lower scale. viable of date, volumes.

for with and vehicles. its originally business support a grateful prior the over on you pivoted the as have company have coming as market. very are -- But the We we started consumer quarters, or all the seen into focus strong the fleet

is to the fleets incentives also and After like country. have motion with diversifying We EV Vista our from change mandates major and vehicles XXX U.K., government-backed months and developed Improved successful and established time, validated cycle the the X vehicle and IVA, with completed engagements which a selected a we We pilot to the commercial with operations legal in markets requires approval, right-hand started platforms. our existing LDV in U.K. BOM X customer, product approved the pro which within a entity USPS, vehicle. with drive individual for X% XXX launch

wettest new markets, customers. automobile a platform enter validated with service a and have And during maintenance into vehicles reduces proven tested repair associations, fleet and us our the now and We time heavy pilot with SMR program by testing that expand been for Our uses. we our support agreement. busiest, coldest to a launch prestigious season. fleet selected to and for drive announced that flexibility these and has U.K. market used product a right-hand economically

with This U.K. our X backbone various are industries. is Phase a we country, the the diversifying to forward, the II rollout approach. Phase framework. mapping who represent customers in in of X-phased our Looking infrastructure

Rushing uses product and vehicles business not their sell tested model. it and they warranty product our We only road marketings. will and have debugged high risk [ is deliver underwriting customers after build, have for we our to to specific ]

new approved manufacturing X clean and support vans incentives the for of they net years X goals, Recently, budget. including available the to autumn automotive on large sold fleets. vehicles, XXXX X of XXXX. GBP U.K. X XX% the energy, million U.K. maximum XXXX as by Our XXX% Over chain, reapproved plug-in by government X,XXX sector, 'XX. part to be the The in the U.K. grant XXXX in zero-emission XXX providing supply and over GBP and billion sector emission

in track pools my past my We I of know over a me have office them. and operated followed have and new every localization, learned record, currencies. manufacturing, denominated understood et cetera. countries, who labor about those We company opened Importance XX days. XX For

Our modular call flexible architecture was designed [indiscernible], the multipurpose the we activities it platform. to support different as regions MPP, in

full for on strategy. Assemblies manufacturing as out U.K. topic more roll we this our

to opportunities, international build. LDVs for established also we As continue demand domestic Canoo

mandates, Department LDV a Submitted meet TAM to Current of California's to for approved, opens XXX turn General with agencies DGS, have available to state that, electrification few does Services, unable vehicles. Kunal. a With back for not application XXX. for vehicles contract enough agencies electric of thousand it our I'll if state over

Kunal Bhalla

the very Tony in and company's by to in have at pivotal confidence take Thank our you, I Tony. Officer me the on the role time entrusted Financial am this that Board as humbled already course and you Capital year previous most evolution. roles over my of tenure from recently of Chief purchasing Many of at me Staff, Development, Investor the across Canoo. know my X-plus Relations Markets, Corporate Chief

to and Tony, and had power have the business most members, Those potential experiences perspective an me work can together your will who I opportunities. insights I together, and given and for look operations, and understanding already welcome the forward learn this way. and along what questions opportunity challenges company's have and of now. of navigating as achieve of from But we me areas transparency to allow the importantly, strategy, I emphasize teamwork journey my a will and accountability team unique many

affiliated AFB reducing revenues highest reported will a month, me quarters. few the China. includes is LLC, from coming alternative And raised set our million and update on $XX revenue costs quarter opening we capital with in mentioned We activities, associated with waste, partner this quarter. negotiation up highlights you capital engineering lines independent our greater We Advisers options million his Now I mandate with on the in in further our service supply progress Board revenue. as supply this This margin approved in chain [indiscernible]. remarks, earlier chain and you facility [indiscernible]. onboarding a our raising quickly our secured Tony update this reduce at harmonization. $XXX,XXX let by clear: focus we cutting Management $XX MMT in credit higher

Finally, to a corn. during with role has in additional Ramesh stability forward financial Ramesh closely congratulate partnership functions, including over many been worked to and cover of finance to Chief our of that, I his leader, career, the at We With look initiatives. Murthy step pillar Ramesh the a many continuing turn great update. and very Ramesh on call I my the and into company Officer. will now time help Administrative navigate is

Ramesh Murthy

Thanks, Kunal.

walk through the year me for fiscal you quarter let the Now third XXXX. results

completion consolidation in $XX substantial efficiency in XXXX and QX savings product. of into the to of of our term Justin Torrance, million, million XXXX expenses reduction by California to $XX and while on expecting accomplishments focus to in include record-breaking our reflected the a site revenue $XXX,XXX drive further Key operating compared life-to-date savings our financial and about We driven discipline. continue in of approach of annualized XXXX development disciplined with our $X.X over Oklahoma QX of to The follows XX% million. long research QX revenues of of

income the statement. to Moving

expenses, XX% QX XXXX pilot million improvements excluding stock-based and EBITDA a million $XX.X in $XX.X the compared QX compensation, million XXXX the a to of follows: period, to support of year expenses, $XX.X million driven for third of negative adjusted from the quarter $X.X Our the results compensation, to customers reduction stock-based Research $XX.X million $XX.X totaled improvement prior SG&A and for Final million excluding quarter, programs. or and for XXXX. XXXX. prior year our quarterly from by QX as large quarter in period. development primarily million are X.X% engineering compared key in in testing $XX.X totaled negative

our We efficiency and optimize effort. footprint will to as part consolidation of continue cost a improve

months for to XX. X.XX $XX.X or key share QX same from relates X.X EBITDA negative summary: share of XX.X% September our per or it XXXX. net $X.X adjusted XX, loss adjusted million the per of metrics, to share X.XX negative the in improvement share in of million in [ As to XX.X% million negative X from in share improvement here negative negative per XXXX X.XX negative X.XX to negative negative quarterly XXXX 'XX ] XXXX. per for QX X.X% period X.XX QX or net improvement QX $XX.X is from of per our ended in loss non-GAAP adjusted

prior flow. $XX.X by the ended cash of September months compared decrease X was months for quarter to to $XX.X ended XX, was prior year. with in million for the the Cash ended used equivalents year X a September period. $XX.X XX, and the the million compared XX.X% XXXX, restricted We from provided Turning period, million in in cash, XXXX, prior to cash operations million. cash the $XX.X activities Net the cash $XX.X million financing

We future optimize will continue to the our quarters. capital in needs working

ended for quarter, million cash consolidation Our in between from from was $X.X We compared the months in to cash of million anticipate to coming outflows $XX $XX.X million locations. the million investing XXXX, to XX, September the our prior activities year period. be $XX X our outflow driven

it Tony Let back remarks. me to closing John? turn for

Tony Aquila

and Thanks, thank to support say our would you Recent in your stakeholders for believing I necessary. and like Ramesh. been tough, associates long-term vision. changes have but to customers, the suppliers,

the turn While the domestically we'll in our cost and automotive and to remain tightening it for on targeted a over cycle, space space the in preserve the EV commercial continue our focused is With to questions. we experiencing opportunities markets. that, operator growing discipline

Operator

[Operator Instructions]

from Our comes first with H.C. question Dayal Wainwright. Amit

Amit Dayal

cetera, So in slowly capital OpEx going sort faster of there is room, in the your just maybe that of business? sort front financing on production, you? you meet Or time Tony, what raise et aspect needs, of to want the address to allow a options different are sort of capital get the you frame. needs? you Are a the how working could elephant to this just view addressing And of to to in

any on be in front helpful. Just color what very would have options of you you

Tony Aquila

Yes.

happy for in few the in volume And working been from first the transactions been We've raising capital a encouragement also So letter government. see a -- use for But to time, stock. of looking to ATM of that, we've addition at some how the on available I we our from addition to that, U.S. think efforts. in programs we would just our efficiently. received

more financing in So line credit them they debt that put of related to I place plus gives until a the secure is us well. help revolving can options that as

And we the that, manufacturing In for that in supply creating also, so financing, purchase participate months we're addition we they X can the a which some banks in for company. it suppliers with can discussions to X shares generally growth finally of on to pull our order Tier chain. harmonize X our so on completed

capital non-dilutive we markets product this that part strong products where the So on localization. that with to that can entering very States over sovereign We we We're getting access as picked focus for as have raising working we we'll well is can. We of United allied phase. our nations got next incentives to bring the type investors as right.

we're the geography customers Now the expansion and service how we getting array.

we that Now got we've and and we have into reshape the that based agreement, learned from up we agreement completely our to on we on supply others a the got to system add some customers. to to catch the chain got some got harmonize configuration we have realign final to

chain. demand that. for supply ability our on But those of us So reduce are things cash with in conjunction our to that front-loading helps kind moving

So very on doing in a of on. though, those areas capital multiple we focused the level. step we'll focus are it, are And

raise at we words, much don't other In want too to capital once.

level now over years, a efficiency learned money we align and we believe it's I segments which maturity with obviously, -- understand we because these the capital. which and we customers, for of do be raising I think period enter our like feel young. of X which if maturity, where should of young we good, the is I well that spending at As is not highest company a on our

Amit Dayal

Understood. Okay.

this capabilities we production context, think in how production about timelines. should and So

XXXX. point. I'm any very helpful. be that with you needs visibility the customer guidance are terms thinking assumptions for But around is this in We have have for at how certain limited about meeting you of the and XXXX moment guessing resources would

Tony Aquila

Yes.

that XXXX. further per which there. in But anyone's and -- are good multiple we're jobs the the we of customers your that be along But are just are our behind of give by than comments we part moving in should X don't this their So you what the been plan, be is to did have hour of part at we day my way I we'd more up that's QX fact thought secrets, we'll think saw that probably and focused right of or quarter. detail. breakthroughs we now. vehicles But XXXX, some We have on, on exposed. the customers operate. now, per the the in That to based by disclose on some business jobs doing We consider pilot they point, we

tenant As leaving, access did is has you strategy. been was this had paint and know, something partners area We within -- purchased complex entire the manufacturing to facility, the the we gives us receive in notification that our which an that a shop. in

the the an bought from us shop. Of paint in course, will multiple hour per allow we and jobs building that established paint already to tenant,

ability do equipment, I to have that we'll lead, than was but paint the site about addition here, on this. know with on we'll been that there be investment is that we'll for We've deliberate because ahead the there's been we and down commentary slowed very capability. we the now investment schedule shop. the type of get today think better and knew it we as why even can of But do paint some of configured e-coat shop hopefully, tenant

MPPX and the to per hour that of battery hour have vehicles X will we're hour. to get the XX to but up for roughly do and on modules jobs per it, capable per We for jobs side some doing modifications we entire [indiscernible], X currently

chain the exiting facilities still and out we got that getting lumpy thing we up the a get in and So pieces crank is our piece we some supply our got biggest us there. got -- for smooth -- then now final now to know still tenant, to is City for the little We we're in still and production. Oklahoma

for the we'll slow it's means Xs the meantime, following of process. been is vehicles. and Oklahoma the proper In more Oklahoma. building all We've City regulations which vehicle built our MPP in build the out labeling manual

probably facilities, CapEx production. of color kind more you bit well gives that a as on So as

Operator

[Operator Instructions]

Our Boion next Stifel. Johan with question comes from

Unknown Analyst

potentially hand speculation might units I about there's a there's coming then anything tangible quick was in you guess, And right I some I into bit share? service. another had if want I wondering and talk drive on touch U.K. that the if postal terms of timing -- the on of to to or vehicles if little just follow-up.

Tony Aquila

Joe. Yes,

business, partners like So not as sure doing use we platform do never and business have customer to is to and I see others they activities ourselves may on pilots comment you their built our way protect of that with done us. operations. we way as And or we in may we experienced the optimize make the this have customers our work to we configurable or said, company

So that -- vehicle. imagine built delivery U.S. over a by we every we They have mail delivery stopping XX drive by now, right-hand have been would the feet. XX,XXX-plus well mile you to can I is and there's confirm the I probably miles,

So there drive are vehicles. right-hand

that's this and all certified, IDA at have kind tell I can you We of time.

Unknown Analyst

that's terms meaningful factory? you out were if guess of color volumes some how if see updates of production ramping relating to Oklahoma. we on, should manufacturing I coming wondering No, could start the any fair. shed I also I guess, at facilities there in in And your was

Tony Aquila

Yes.

get our aligned. fully before about think capital and this volumes, supply got meaningful I talk we in we've to reconfigured chain place

any TEM commercialize will, final a first-generation level of you know, their manufacturer where or many you land fuel We've if As period product. products, point. they go on a will their whatever, and that of OEMs hit through of kind

alignment. to access faster order supply to but a a anticipating also of and of we kind we capital have derivatives bit volume, chain of where bit a were little that in to got and in engineer capital. that's to the couple will We queue have out We still get

it's other. of And ramp so in up the each They're to tugging on harmony. tough divisions all constantly

some Unfortunately, we that I closer ramp weighs be in in talk on City. us as position how than a to better for we will But people it for ever. Oklahoma and will about think we're we in costs dislocation alignment now certain capital.

you see the on the talked As mandate. his manufacturing chain about of capital, lead Canoo supply as that time vehicles. announce have us with reconfigured correlation direct exception to a of the it's the part going to

Operator

comes question next our Alliance And Poe with Partners. Fratt Global from

Charles Fratt

questions. two had I

just secured clarify One, XX-day place? line one Just that you a put it's also and to can now facility? capital working Is clarify earlier on the that It's in comments. you've correct?

Tony Aquila

XX-month a it's No, facility, Poe.

Charles Fratt

it it -- thought or I thought But I was very months, days X in matures XX Tony?

Tony Aquila

think were sorry. of credit, grid the credit -- then the those I notes the of converted that line into letter

Charles Fratt

Okay.

So facility a it's XX-month then?

Tony Aquila

way loans, were that, credit will, if The bridge those until about think is to sorry, approve Board the Yes. like -- Poe could the independent that facility. is you

Charles Fratt

misheard, that that hear on in Yes. I'm clarifying thought I there or first sorry. progress favorable thanks that. program substantial you to response can little bit it said I I I differently, have getting if might a I had read progress then non-dilutive the I Did And think correctly? so, was on And capital and governmental I for -- but question, I loans. talked thought that? about you thought but heard expand you

Tony Aquila

letter our know. state, So the of you non-dilutive We we're capital. accessing some in a of recently have encouragement first red as received

we're of like the the and up much plan administrations course, new that opened this optimistic their most Elon that then, our share get or administration make manufacturing more its getting excited appropriate up an of of people as the wrap see to to share all will our type positions Our environment likely will out way on [indiscernible] country say, is kind up that figures manufacturing and they're American a Heartland self-independent. And programs we're in estimation and wrap administration funding. of let's and that they've bigger to

Charles Fratt

commitment the AFPM Can whatever I little do talking DOE And turns so a the the bit, a are just for ask administration about program letter of this you is? expect over? we acronym before

Tony Aquila

Yes.

to more So than difficult it the when market the would make itself. distribution be I will to -- decides its it predict government

time. We've so year last you, of or tell got encouragement discouragement. mostly a will the for got we letter of in I the So first letters

but we're positive that's only it. ones, And about that And we've applied to think so will in, a letter. administration coming announced areas the be super just by when we've but received got for maybe out programs. multiple sign you X of current the the And they way,

Charles Fratt

it like type commitments those the for program, at Tony, you were recently, programs? And big when is it huge programs is sustainable that look there -- aviation just X of the fuels were announced

Tony Aquila

No, meaningful for approach But that size not phasing big. to going, us. the we're for they're it's and our

Operator

there no comments. I'll closing questions time. are this any And the management hand back additional to at floor for

Tony Aquila

to today. would everyone, supporters reiterate joining no, we the team all and thanks our again, Thanks, out No, to operator, just, our us there. for

Operator

with parties And you. we Thank day. disconnect. good conclude a today's Have may that, All conference.

Canoo (GOEVQ) 13 Nov 242024 Q3 Earnings call transcript