Archer Announces Third Quarter 2022 Results
Archer Aviation Inc. (ACHR) reported significant milestones in Q3 2022, including the completion of its first wing-borne flight with the Maker aircraft and the announcement of a groundbreaking eVTOL route with United Airlines between Newark Liberty and Downtown Manhattan. The company has projected Q4 2022 operating expenses between $100 million to $110 million. Despite a net loss of $91 million in Q3, cash reserves remain healthy at $600.6 million.
- Completed the first wing-borne flight with Maker demonstrator aircraft.
- Announced industry's first commercial eVTOL route with United Airlines.
- Significant cash reserves of $600.6 million.
- Reported a net loss of $91 million for Q3 2022.
- Total operating expenses reached $93.8 million.
Builds On Momentum Towards Commercialization with Continued Success of Maker’s Flight Test Program, Selection of Industry’s First Commercial eVTOL Route with United Airlines, and Upcoming Unveil of Midnight™
Archer will be conducting its earnings conference call at
The Company has issued a shareholder letter discussing its third quarter 2022 operating and financial results, as well as its fourth quarter 2022 estimates. The shareholder letter may be accessed on the Company’s Investor Relations website here.
The Company’s recent key operating highlights include:
- Completion of the first wing-borne flight with Maker demonstrator aircraft; on-track to complete first full transition flight in the coming weeks.
-
In partnership with United Airlines, announcement of the industry’s first specific commercial eVTOL aircraft route in the US: between
Newark Liberty International Airport and the Downtown Manhattan Heliport. - Unveiling of our production aircraft, Midnight™, at our upcoming Open House event.
Commenting on third quarter results,
“With the announcement of our first urban air mobility route in
Third Quarter 2022 Financial Results |
|||||
|
Q3 2022
|
|
Q3 20221
|
||
Total Operating Expenses |
$ |
93.8M |
|
$ |
61.1M |
Net Loss |
$ |
(91.0M) |
|
|
NA |
Adjusted EBITDA |
|
NA |
|
$ |
(60.1M) |
Cash, Cash Equivalents and Short-Term Investments |
$ |
600.6M |
|
|
NA |
- A reconciliation of non-GAAP financial measures to the most comparable GAAP measures is provided below in the section titled “Reconciliation of Selected GAAP To Non-GAAP Results for Q3 2022.”
Fourth Quarter 2022 Financial Estimates
Archer’s financial estimates for fourth quarter of 2022 are as follows:
-
GAAP total operating expenses of
$100 million $110 million -
Non-GAAP total operating expenses of
$70 million $80 million -
This reflects expected stock-based compensation, warrant expense and other one-time expenses of approximately
$30 million
-
This reflects expected stock-based compensation, warrant expense and other one-time expenses of approximately
We have not reconciled our non-GAAP total operating expense estimates because certain items that impact non-GAAP total operating expense are uncertain or out of our control and cannot be reasonably predicted. In particular, stock-based compensation expense is impacted by the future fair market value of our common stock and other factors, all of which are difficult to predict, subject to frequent change, or not within our control. The actual amount of these expenses during 2022 will have a significant impact on our future GAAP financials. Accordingly, a reconciliation of non-GAAP total operating expenses is not available without unreasonable effort.
About Archer
Archer is designing and developing electric vertical takeoff and landing aircraft for use in urban air mobility networks. Archer’s mission is to unlock the skies, freeing everyone to reimagine how they move and spend time. Archer's team is based in
To learn more, visit www.archer.com.
Forward Looking Statements
This press release contains forward looking statements regarding our future business plans and expectations, including statements regarding our estimates for the fourth quarter of 2022 and our Midnight aircraft. These forward looking statements are only predictions and may differ materially from actual results due to a variety of factors. The risks and uncertainties that could cause actual results to differ from the results predicted are more fully detailed under the caption "Risk Factors" in our Annual Report on Form 10-K for the year ended
Reconciliation of Selected GAAP To Non-GAAP Results for Q3 2022
Reconciliation of Total Operating Expenses (in millions; unaudited): A reconciliation of total operating expenses to non-GAAP total operating expenses for the three months ended
|
Three Months Ended
|
||
Total operating expenses |
$ |
(93.8 |
) |
Adjusted to exclude the following: |
|
||
|
|
0.5 |
|
Other warrant expense (2) |
|
6.0 |
|
Stock-based compensation (3) |
|
26.2 |
|
Non-GAAP total operating expenses |
$ |
(61.1 |
) |
(1) |
Amount includes non-cash warrant costs, classified as research and development expenses, for the warrants issued to |
(2) |
Other warrant expenses associated with the United warrant agreement |
(3) |
Amount includes stock-based compensation for options and restricted stock units issued to both employees and non-employees, including the grants issued to our founders in connection with the closing of the business combination. |
Reconciliation of Adjusted EBITDA (in millions; unaudited): A reconciliation of net loss to Adjusted EBITDA for the three months ended
|
Three Months Ended
|
||
Net loss |
$ |
(91.0 |
) |
Adjusted to exclude the following: |
|
||
Change in fair value of warrant liability (1) |
|
0.1 |
|
|
|
0.5 |
|
Other warrant expense (3) |
|
6.0 |
|
Depreciation and amortization expense |
|
1.0 |
|
Stock-based compensation (4) |
|
26.2 |
|
Interest income, net |
|
(1.5 |
) |
Accretion and amortization income of short-term investments |
|
(1.4 |
) |
Adjusted EBITDA |
$ |
(60.1 |
) |
(1) |
Amount includes changes in fair value of the public and private warrants, which are classified as warrant liabilities. |
(2) |
Amount includes non-cash warrant costs, classified as research and development expenses, for the warrants issued to |
(3) |
Other warrant expenses associated with the United warrant agreement |
(4) |
Amount includes stock-based compensation for options and restricted stock units issued to both employees and non-employees, including the grants issued to our founders in connection with the closing of the business combination. |
Non-GAAP Financial Measures
To supplement our condensed consolidated financial results prepared in accordance with GAAP, we use a number of non-GAAP financial measures to help us in analyzing and assessing our overall business performance, for making operating decisions and for forecasting and planning future periods. We consider the use of non-GAAP financial measures helpful in assessing our current financial performance, ongoing operations and prospects for the future as well as understanding financial and business trends relating to our financial condition and results of operations.
While we use non-GAAP financial measures as a tool to enhance our understanding of certain aspects of our financial performance and to provide incremental insight into the underlying factors and trends affecting our performance, we do not consider these measures to be a substitute for, or superior to, the information provided by GAAP financial measures. Consistent with this approach, we believe that disclosing non-GAAP financial measures to the readers of our financial statements provides useful supplemental data that, while not a substitute for GAAP financial measures, can offer insight in the review of our financial and operational performance and enables investors to more fully understand trends in our current and future performance.
In assessing our business during the quarter ended
Stock-Based Compensation Expense: We believe that providing non-GAAP measures excluding stock-based compensation expense, in addition to the GAAP measures, allows for better comparability of our financial results from period to period. We prepare and maintain our budgets and forecasts for future periods on a basis consistent with this non-GAAP financial measure. Further, companies use a variety of types of equity awards as well as a variety of methodologies, assumptions and estimates to determine stock-based compensation expense. We believe that excluding stock-based compensation expenses enhances our ability and the ability of investors to understand the impact of non-cash stock-based compensation on our operating results and to compare our results against the results of other companies.
Warrant Expense and Gains or Losses from Revaluation of Warrants: Expense from our common stock warrants issued to United Airlines,
Each of the non-GAAP financial measures presented in this release should not be considered in isolation from, or as a substitute for, a measure of financial performance prepared in accordance with GAAP and are presented for supplemental informational purposes only. Further, investors are cautioned that there are inherent limitations associated with the use of each of these non-GAAP financial measures as an analytical tool. In particular, these non-GAAP financial measures have no standardized meaning prescribed by GAAP and are not based on a comprehensive set of accounting rules or principles and many of the adjustments to the GAAP financial measures reflect the exclusion of items that are recurring and may be reflected in our financial results for the foreseeable future. In addition, the non-GAAP measures we use may be different from non-GAAP measures used by other companies, limiting their usefulness for comparison purposes. We compensate for these limitations by providing specific information in the reconciliation included in this release regarding the GAAP amounts excluded from the non-GAAP financial measures. In addition, as noted above, we evaluate the non-GAAP financial measures together with the most directly comparable GAAP financial information. Investors are encouraged to review the reconciliations of these non-GAAP measures to their most directly comparable GAAP financial measures included in this release.
Source: Archer
Text: ArcherIR
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For Investors
investors@archer.com
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