Canoo Inc. Announces Second Quarter 2024 Results
Canoo Inc. (Nasdaq: GOEV) reported its Q2 2024 financial results, showing progress in customer acquisition and operational efficiency. The company achieved a quarterly revenue record of $605K and improved its Adjusted EBITDA by 38% year-over-year to $(38.6) million. Canoo reduced its operating expenses by 33% compared to Q1 2024 and decreased total quarterly cash outflow by 49% year-over-year.
Key developments include successful pilots with international customers, advancements in large commercial fleet acquisitions, and the relocation of headquarters from California to Texas. The company also made progress in its Oklahoma City facility and received approval for Foreign Trade Zone activation.
Canoo reaffirmed its cash flow guidance for 2024 and expects Adjusted EBITDA to be between $(120) million to $(140) million for the second half of the year.
Canoo Inc. (Nasdaq: GOEV) ha riportato i risultati finanziari per il secondo trimestre del 2024, mostrando progressi nell'acquisizione di clienti e nell'efficienza operativa. L'azienda ha raggiunto un record trimestrale di ricavi di 605K dollari e ha migliorato il suo EBITDA Adjusted del 38% rispetto all'anno precedente, portandolo a $(38.6) milioni. Canoo ha ridotto le spese operative del 33% rispetto al primo trimestre del 2024 e ha diminuito il totale delle uscite di cassa trimestrali del 49% rispetto all'anno precedente.
Tra i principali sviluppi ci sono stati piloti di successo con clienti internazionali, progressi nell'acquisizione di grandi flotte commerciali e il trasferimento della sede centrale dalla California al Texas. L'azienda ha anche fatto progressi nella sua struttura di Oklahoma City e ha ottenuto l'approvazione per l'attivazione della Zona di Commercio Straniero.
Canoo ha ribadito le sue previsioni sui flussi di cassa per il 2024 e si aspetta che l'EBITDA Adjusted si attesti tra $(120) milioni e $(140) milioni per la seconda metà dell'anno.
Canoo Inc. (Nasdaq: GOEV) informó sus resultados financieros del segundo trimestre de 2024, mostrando avances en la adquisición de clientes y en la eficiencia operativa. La compañía logró un récord de ingresos trimestrales de 605K dólares y mejoró su EBITDA Ajustado en un 38% en comparación con el año anterior, alcanzando $(38.6) millones. Canoo redujo sus gastos operativos en un 33% en comparación con el primer trimestre de 2024 y disminuyó el total mensual de flujo de caja en un 49% interanual.
Los desarrollos clave incluyen pilotos exitosos con clientes internacionales, avances en la adquisición de grandes flotas comerciales y el traslado de la sede de California a Texas. La compañía también avanzó en su instalación de Oklahoma City y recibió aprobación para la activación de la Zona de Comercio Exterior.
Canoo reafirmó su guía de flujo de efectivo para 2024 y espera que el EBITDA Ajustado esté entre $(120) millones y $(140) millones para la segunda mitad del año.
Canoo Inc. (Nasdaq: GOEV)는 2024년 2분기 재무 결과를 발표하며 고객 확보 및 운영 효율성에서 진전을 보였습니다. 회사는 605K 달러의 분기별 매출 기록을 달성하고, 조정된 EBITDA를 전년 대비 38% 개선하여 $(38.6) 백만을 기록했습니다. Canoo는 2024년 1분기 대비 운영 비용을 33% 줄였으며, 전년 대비 총 분기 현금 유출을 49% 감소시켰습니다.
주요 개발 사항으로는 국제 고객과의 성공적인 파일럿, 대형 상업용 차량 인수의 발전, 본사를 캘리포니아에서 텍사스로 이전한 것입니다. 회사는 또한 오클라호마 시티 시설에서 진전을 이루었으며 외국 무역 지역 활성화를 위한 승인을 받았습니다.
Canoo는 2024년 현금 흐름 가이드를 재확인했으며, 하반기 조정 EBITDA가 $(120) 백만에서 $(140) 백만 사이가 될 것으로 예상하고 있습니다.
Canoo Inc. (Nasdaq: GOEV) a publié ses résultats financiers pour le deuxième trimestre 2024, montrant des progrès dans l'acquisition de clients et l'efficacité opérationnelle. La société a atteint un record de revenus trimestriels de 605K dollars et a amélioré son EBITDA ajusté de 38% d'une année sur l'autre, le portant à $(38.6) millions. Canoo a réduit ses dépenses d'exploitation de 33% par rapport au premier trimestre 2024 et a diminué le flux de trésorerie trimestriel total de 49% d'une année sur l'autre.
Les développements clés incluent des pilotes réussis avec des clients internationaux, des avancées dans l'acquisition de grandes flottes commerciales, et le déménagement du siège social de la Californie vers le Texas. La société a également progressé dans son installation à Oklahoma City et a obtenu l'approbation pour l'activation de la zone de commerce extérieur.
Canoo a réaffirmé ses prévisions de flux de trésorerie pour 2024 et s'attend à ce que l'EBITDA ajusté soit compris entre $(120) millions et $(140) millions pour la seconde moitié de l'année.
Canoo Inc. (Nasdaq: GOEV) hat die Finanzergebnisse für das zweite Quartal 2024 veröffentlicht und Fortschritte bei der Kundengewinnung sowie der operativen Effizienz gezeigt. Das Unternehmen erzielte einen quartalsweise Rekordumsatz von 605K Dollar und verbesserte sein bereinigtes EBITDA um 38% im Vergleich zum Vorjahr auf $(38.6) Millionen. Canoo reduzierte seine Betriebskosten im Vergleich zum ersten Quartal 2024 um 33% und verringerte den gesamten quartalsweisen Cashflow-Rückgang um 49% im Jahresvergleich.
Zu den wichtigsten Entwicklungen zählen erfolgreiche Pilotprojekte mit internationalen Kunden, Fortschritte beim Erwerb großer Nutzfahrzeugflotten und der Umzug des Hauptsitzes von Kalifornien nach Texas. Das Unternehmen machte auch Fortschritte in seiner Einrichtung in Oklahoma City und erhielt die Genehmigung zur Aktivierung der Freihandelszone.
Canoo bestätigte seine Cashflow-Prognose für 2024 und erwartet, dass das bereinigte EBITDA für die zweite Jahreshälfte zwischen $(120) Millionen und $(140) Millionen liegen wird.
- Quarterly revenue record of $605K
- Adjusted EBITDA improved by 38% year-over-year to $(38.6) million
- 33% reduction in Operating Expenses compared to Q1 2024
- 49% decrease in total quarterly cash outflow year-over-year
- Successful pilots with international customers and progress in large commercial fleet acquisitions
- Approval for Foreign Trade Zone activation at Oklahoma City facility
- GAAP net loss of $(5.0) million for Q2 2024
- Adjusted Net Loss of $(42.7) million for Q2 2024
- Net cash used in operating activities totaled $83.4 million for H1 2024
- Projected Adjusted EBITDA loss between $(120) million to $(140) million for H2 2024
Insights
Canoo's Q2 2024 results show mixed signals. On the positive side, the company achieved a quarterly revenue record of
However, concerns persist. The company's cash position of
Canoo's strategic shift is evident in its focus on large commercial fleets and international expansion. The successful pilots with Red Sea Global and entry into the Saudi Arabian market with Jazeera Paints demonstrate the versatility of Canoo's platform. The company's ability to offer both left-hand and right-hand drive vehicles is a significant advantage in targeting global markets.
The relocation of headquarters from California to Texas, along with the migration to Oklahoma facilities, should help reduce costs. However, the electric vehicle market is highly competitive and Canoo's
- Quarterly revenue record of
$605 K - Quarterly Adjusted EBITDA was
$(38.6) million , an improvement of38% versus Q2 2023, and an improvement of20% versus Q1 2024 - Adjusted Net Loss Per Share was
$(0.61) , a46% improvement from$(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 or49% 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
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.
Conference Call Information
Canoo will host a conference call to discuss the results today, August 14, 2024, at 5:00 PM ET.
To listen to the conference call via telephone dial (877) 407-9169 (U.S.) and (201) 493-6755 (international callers/U.S. toll) and enter the conference ID number 13748003. To listen to the webcast, please go to investors.canoo.com. A telephone replay will be available until August 28, 2024, at (877) 660-6853 (U.S.) and (201) 612-7415 (international callers/U.S. toll), with Conference ID number 13748003. To listen to the webcast replay, please go to investors.canoo.com.
About Canoo
Canoo Inc.'s (NASDAQ: GOEV) mission is to bring EVs to Everyone. The company has developed breakthrough electric vehicles that are reinventing the automotive landscape with their pioneering technologies, unique design, and business model that spans multiple owners across the full lifecycle of the vehicle. Canoo designed a modular electric platform that is purpose-built to maximize the vehicle interior space and is customizable for all owners in the vehicle lifecycle, to support a wide range of business and consumer applications. Canoo has teams in California, Texas, Oklahoma, and Michigan. For more information, visit www.canoo.com and investors.canoo.com.
| Second Quarter 2024 Financial Results | |||||||
| CANOO INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except par values) UNAUDITED | |||||||
| June 30, 2024 | December 31, 2023 | ||||||
| Assets | |||||||
| Current assets | |||||||
| Cash and cash equivalents | $ | 4,513 | $ | 6,394 | |||
| Restricted cash, current | 3,983 | 3,905 | |||||
| Inventory | 9,302 | 6,153 | |||||
| Prepaids and other current assets | 15,557 | 16,099 | |||||
| Total current assets | 33,355 | 32,551 | |||||
| Property and equipment, net | 380,129 | 377,100 | |||||
| Restricted cash, non-current | 10,600 | 10,600 | |||||
| Operating lease right-of-use assets | 34,489 | 36,241 | |||||
| Deferred warrant asset | 50,175 | 50,175 | |||||
| Deferred battery supplier cost, non-current | 28,900 | 30,000 | |||||
| Other non-current assets | 5,674 | 5,338 | |||||
| Total assets | $ | 543,322 | $ | 542,005 | |||
| Liabilities and stockholders' equity | |||||||
| Liabilities | |||||||
| Current liabilities | |||||||
| Accounts payable | $ | 73,634 | $ | 65,306 | |||
| Accrued expenses and other current liabilities | 70,591 | 63,901 | |||||
| Convertible debt, current | 47,228 | 51,180 | |||||
| Derivative liability, current | — | 860 | |||||
| Financing liability, current | 3,573 | 3,200 | |||||
| Total current liabilities | 195,026 | 184,447 | |||||
| Contingent earnout shares liability | — | 41 | |||||
| Operating lease liabilities, non-current | 34,035 | 35,722 | |||||
| Derivative liability, non-current | 33,242 | 25,919 | |||||
| Financing liability, non-current | 28,727 | 28,910 | |||||
| Warrant liability, non-current | 55,995 | 17,390 | |||||
| Total liabilities | $ | 347,025 | $ | 292,429 | |||
| Commitments and contingencies (Note 11) | |||||||
| Redeemable preferred stock, | $ | 7,546 | $ | 5,607 | |||
| Stockholders’ equity | |||||||
| Common stock, | 7 | 4 | |||||
| Additional paid-in capital (1) | 1,786,235 | 1,725,809 | |||||
| Accumulated deficit | (1,597,491 | ) | (1,481,844 | ) | |||
| Total preferred stock and stockholders’ equity | 196,297 | 249,576 | |||||
| Total liabilities, preferred stock and stockholders’ equity | $ | 543,322 | $ | 542,005 | |||
(1) Periods presented have been adjusted to reflect the 1-for-23 reverse stock split on March 8, 2024.
| CANOO INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share values) UNAUDITED | |||||||||||||||
| Three months ended June 30, | Six months ended June 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Revenue | $ | 605 | $ | — | $ | 605 | $ | — | |||||||
| Cost of revenue | 1,845 | — | 1,845 | — | |||||||||||
| Gross margin | (1,240 | ) | — | (1,240 | ) | — | |||||||||
| Operating Expenses | |||||||||||||||
| Research and development expenses, excluding depreciation | 16,784 | 38,582 | 43,174 | 85,686 | |||||||||||
| Selling, general and administrative expenses, excluding depreciation | 21,804 | 30,421 | 54,672 | 60,270 | |||||||||||
| Depreciation | 3,364 | 4,562 | 6,753 | 9,137 | |||||||||||
| Total operating expenses | 41,952 | 73,565 | 104,599 | 155,093 | |||||||||||
| Loss from operations | (43,192 | ) | (73,565 | ) | (105,839 | ) | (155,093 | ) | |||||||
| Other (expense) income | |||||||||||||||
| Interest expense | (1,551 | ) | (2,264 | ) | (7,174 | ) | (2,560 | ) | |||||||
| Gain on fair value change in contingent earnout shares liability | 15 | 59 | 41 | 2,564 | |||||||||||
| Gain on fair value change in warrant and derivative liability | 48,308 | 5,623 | 38,836 | 22,965 | |||||||||||
| Loss on fair value change in convertible debt and other | (8,532 | ) | — | (67,116 | ) | — | |||||||||
| Gain (Loss) on extinguishment of debt and other | (4 | ) | (949 | ) | 24,462 | (27,688 | ) | ||||||||
| Other income (expense), net | (4 | ) | 226 | 1,143 | (1,790 | ) | |||||||||
| Loss before income taxes | (4,960 | ) | (70,870 | ) | (115,647 | ) | (161,602 | ) | |||||||
| Provision for income taxes | — | — | — | — | |||||||||||
| Net loss and comprehensive loss attributable to Canoo | $ | (4,960 | ) | $ | (70,870 | ) | (115,647 | ) | (161,602 | ) | |||||
| Less: dividend on redeemable preferred stock | 1,077 | — | 1,939 | — | |||||||||||
| Less: additional deemed dividend on redeemable preferred stock | — | — | — | — | |||||||||||
| Net loss and comprehensive loss available to common shareholders | (6,037 | ) | (70,870 | ) | (117,586 | ) | (161,602 | ) | |||||||
| Per Share Data: | |||||||||||||||
| Net loss per share, basic and diluted (1) | $ | (0.09 | ) | $ | (3.22 | ) | $ | (1.95 | ) | $ | (8.04 | ) | |||
| Weighted-average shares outstanding, basic and diluted (1) | 69,619 | 21,982 | 60,199 | 20,100 | |||||||||||
(1) Periods presented have been adjusted to reflect the 1-for-23 reverse stock split on March 8, 2024.
| CANOO INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) UNAUDITED | |||||||
| Six months ended June 30, | |||||||
| 2024 | 2023 | ||||||
| Cash flows from operating activities: | |||||||
| Net loss | $ | (115,647 | ) | $ | (161,602 | ) | |
| Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
| Depreciation | 6,845 | 9,137 | |||||
| Non-cash operating lease expense | 1,752 | 1,658 | |||||
| Stock-based compensation expense | 12,082 | 16,543 | |||||
| Gain on fair value change of contingent earnout shares liability | (41 | ) | (2,564 | ) | |||
| Loss (Gain) on fair value change in warrants liability | (22,046 | ) | (23,015 | ) | |||
| Loss (Gain) on fair value change in derivative liability | (16,790 | ) | 50 | ||||
| Loss (Gain) on extinguishment of debt and other | (24,462 | ) | 27,688 | ||||
| Loss on fair value change in convertible debt and other | 67,116 | — | |||||
| Non-cash debt discount | 3,142 | 1,538 | |||||
| Non-cash interest expense | 3,410 | 1,386 | |||||
| Financing charges incurred upon issuance of PPAs | 910 | 800 | |||||
| Common shares issued to vendor for services | 658 | 250 | |||||
| Changes in assets and liabilities: | |||||||
| Inventory | (3,149 | ) | (2,358 | ) | |||
| Prepaid expenses and other current assets | 543 | (2,060 | ) | ||||
| Other assets | 764 | (2,614 | ) | ||||
| Accounts payable, accrued expenses and other current liabilities | 1,494 | 5,619 | |||||
| Net cash used in operating activities | (83,419 | ) | (129,544 | ) | |||
| Cash flows from investing activities: | |||||||
| Purchases of property and equipment | (6,923 | ) | (33,905 | ) | |||
| Net cash used in investing activities | (6,923 | ) | (33,905 | ) | |||
| Cash flows from financing activities: | |||||||
| Proceeds from sale of employee retention credits | 9,013 | — | |||||
| Payment of offering costs | — | (400 | ) | ||||
| Proceeds from exercise of YA warrants | — | 21,223 | |||||
| Proceeds from issuance of shares under PIPEs | — | 8,750 | |||||
| Proceeds from employee stock purchase plan | 114 | 635 | |||||
| Proceeds from issuance of shares under RDO, net of issuance cost | — | 50,961 | |||||
| Proceeds from convertible debenture | — | 45,120 | |||||
| Payment of transaction costs | — | (25 | ) | ||||
| Payment made on financing arrangement | — | (205 | ) | ||||
| Proceeds for issuance of shares under ATM | — | 1,155 | |||||
| Payment made on I-40 lease | (1,428 | ) | — | ||||
| Proceeds from PPA, net of issuance costs | 97,347 | 5,001 | |||||
| Repayment of PPAs | (33,007 | ) | — | ||||
| Proceeds from preferred shares transaction | 16,500 | — | |||||
| Net cash provided by financing activities | 88,539 | 132,215 | |||||
| Net decrease in cash, cash equivalents, and restricted cash | (1,803 | ) | (31,234 | ) | |||
| Cash, cash equivalents, and restricted cash | |||||||
| Cash, cash equivalents, and restricted cash, beginning of period | 20,899 | 50,615 | |||||
| Cash, cash equivalents, and restricted cash, end of period | $ | 19,096 | $ | 19,381 | |||
| Reconciliation of cash, cash equivalents, and restricted cash to the Condensed Consolidated Balance Sheets | |||||||
| Cash and cash equivalents at end of period | $ | 4,513 | $ | 4,993 | |||
| Restricted cash, current at end of period | 3,983 | 3,788 | |||||
| Restricted cash, non-current at end of period | 10,600 | 10,600 | |||||
| Total cash, cash equivalents, and restricted cash at end of period shown in the Condensed Consolidated Statements of Cash Flows | $ | 19,096 | $ | 19,381 | |||
Non-GAAP Financial Measures
EBITDA, Adjusted EBITDA, Adjusted Net Loss and Adjusted Earnings Per Share ("EPS")
“EBITDA” is defined as net loss before interest expense, income tax expense or benefit, and depreciation and amortization. “Adjusted EBITDA” is defined as EBITDA adjusted for stock-based compensation, restructuring charges, asset impairments, non-routine legal fees, and other costs associated with exit and disposal activities, acquisition and related costs, changes to the fair value of contingent earnout shares liability, changes to the fair value of warrant and derivative liability, changes to the fair value of the derivative asset, changes to the fair value of convertible debt, loss on extinguishment of debt, and any other one-time non-recurring transaction amounts impacting the statement of operations during the year. "Adjusted Net Loss" is defined as net loss adjusted for stock-based compensation, restructuring charges, asset impairments, non-routine legal fees, and other costs associated with exit and disposal activities, acquisition and related costs, changes to the fair value of contingent earnout shares liability, changes to the fair value of warrants and derivative liability, changes to the fair value of the derivative asset, changes to the fair value of convertible debt, loss on extinguishment of debt, and any other one-time non-recurring transaction amounts impacting the statement of operations during the year. "Adjusted EPS" is defined as Adjusted Net Loss on a per share basis using the weighted average shares outstanding.
EBITDA, Adjusted EBITDA, Adjusted Net Loss, and Adjusted EPS are intended as a supplemental measure of our performance that is neither required by, nor presented in accordance with, GAAP. We believe EBITDA, Adjusted EBITDA, Adjusted Net Loss, and Adjusted EPS when combined with net loss and net loss per share are beneficial to an investor’s complete understanding of our operating performance. We believe that the use of EBITDA, Adjusted EBITDA, Adjusted Net Loss, and Adjusted EPS provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial measures with those of comparable companies, which may present similar non-GAAP financial measures to investors. However, you should be aware that when evaluating EBITDA, Adjusted EBITDA, Adjusted Net Loss, and Adjusted EPS we may incur future expenses similar to those excluded when calculating these measures. In addition, our presentation of these measures should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. Our computation of EBITDA, Adjusted EBITDA, Adjusted Net Loss, and Adjusted EPS may not be comparable to other similarly titled measures computed by other companies, because all companies may not calculate EBITDA, Adjusted EBITDA, Adjusted Net Loss, and Adjusted EPS in the same fashion.
Because of these limitations, EBITDA, Adjusted EBITDA Adjusted Net Loss, and Adjusted EPS should not be considered in isolation or as a substitute for performance measures calculated in accordance with GAAP. We manage our business utilizing EBITDA, Adjusted EBITDA, Adjusted Net Loss, and Adjusted EPS as supplemental performance measures.
| CANOO INC. | ||||||||||||||||||||||||
| NON-GAAP RECONCILIATION TABLE (in thousands) | ||||||||||||||||||||||||
| These non-GAAP financial measures, when presented, are reconciled to the most closely comparable U.S. GAAP measure as disclosed below for the three and six months ended June 30, 2024 and 2023, respectively (in thousands): | ||||||||||||||||||||||||
| Three Months Ended June 30, | ||||||||||||||||||||||||
| 2024 | 2023 | |||||||||||||||||||||||
| EBITDA | Adjusted EBITDA | Adjusted Net Loss | EBITDA | Adjusted EBITDA | Adjusted Net Loss | |||||||||||||||||||
| Net loss | $ | (4,960 | ) | $ | (4,960 | ) | $ | (4,960 | ) | $ | (70,870 | ) | $ | (70,870 | ) | $ | (70,870 | ) | ||||||
| Interest expense (a) | 641 | 641 | — | 2,264 | 2,264 | — | ||||||||||||||||||
| Provision for income taxes | — | — | — | — | — | — | ||||||||||||||||||
| Depreciation (b) | 3,456 | 3,456 | — | 4,562 | 4,562 | — | ||||||||||||||||||
| Gain on fair value change in contingent earnout shares liability | — | (15 | ) | (15 | ) | — | (59 | ) | (59 | ) | ||||||||||||||
| Gain on fair value change in warrant and derivative liability | — | (48,308 | ) | (48,308 | ) | — | (5,623 | ) | (5,623 | ) | ||||||||||||||
| Gain (Loss) on extinguishment of debt and other | — | 4 | 4 | — | 949 | 949 | ||||||||||||||||||
| Loss on fair value change in convertible debt and other | — | 8,532 | 8,532 | — | — | — | ||||||||||||||||||
| Financing charges incurred upon issuance of PPAs | — | 910 | 910 | — | — | — | ||||||||||||||||||
| Other (income) expense, net | — | 4 | 4 | — | (226 | ) | (226 | ) | ||||||||||||||||
| Stock-based compensation | — | 1,128 | 1,128 | — | 6,707 | 6,707 | ||||||||||||||||||
| Adjusted Non-GAAP amount | $ | (863 | ) | $ | (38,608 | ) | $ | (42,705 | ) | $ | (64,044 | ) | $ | (62,296 | ) | $ | (69,122 | ) | ||||||
| (a) Excluding (b) Includes | ||||||||||||||||||||||||
| US GAAP net loss per share | ||||||||||||||||||||||||
| Basic | N/A | N/A | (0.09 | ) | N/A | N/A | (3.22 | ) | ||||||||||||||||
| Diluted | N/A | N/A | (0.09 | ) | N/A | N/A | (3.22 | ) | ||||||||||||||||
| Adjusted Non-GAAP net loss per share (Adjusted EPS): | ||||||||||||||||||||||||
| Basic | N/A | N/A | (0.61 | ) | N/A | N/A | (3.14 | ) | ||||||||||||||||
| Diluted | N/A | N/A | (0.61 | ) | N/A | N/A | (3.14 | ) | ||||||||||||||||
| Weighted-average common shares outstanding: | ||||||||||||||||||||||||
| Basic | N/A | N/A | 69,619 | N/A | N/A | 21,982 | ||||||||||||||||||
| Diluted | N/A | N/A | 69,619 | N/A | N/A | 21,982 | ||||||||||||||||||
| Six Months Ended June 30, | ||||||||||||||||||||||||
| 2024 | 2023 | |||||||||||||||||||||||
| EBITDA | Adjusted EBITDA | Adjusted Net Loss | EBITDA | Adjusted EBITDA | Adjusted Net Loss | |||||||||||||||||||
| Net loss | $ | (115,647 | ) | $ | (115,647 | ) | $ | (115,647 | ) | $ | (161,602 | ) | $ | (161,602 | ) | $ | (161,602 | ) | ||||||
| Interest expense (a) | 6,264 | 6,264 | — | 2,560 | 2,560 | — | ||||||||||||||||||
| Provision for income taxes | — | — | — | — | — | — | ||||||||||||||||||
| Depreciation (b) | 6,845 | 6,845 | — | 9,137 | 9,137 | — | ||||||||||||||||||
| Gain on fair value change in contingent earnout shares liability | — | (41 | ) | (41 | ) | — | (2,564 | ) | (2,564 | ) | ||||||||||||||
| Gain on fair value change in warrant and derivative liability | — | (38,836 | ) | (38,836 | ) | — | (22,965 | ) | (22,965 | ) | ||||||||||||||
| Loss on fair value change in convertible debt and other | — | 67,116 | 67,116 | — | — | — | ||||||||||||||||||
| (Gain) Loss on extinguishment of debt and other | — | (24,462 | ) | (24,462 | ) | — | 27,688 | 27,688 | ||||||||||||||||
| Financing charges incurred upon issuance of PPAs | — | 910 | 910 | — | — | |||||||||||||||||||
| Other (income) expense, net | — | (1,143 | ) | (1,143 | ) | — | 1,790 | 1,790 | ||||||||||||||||
| Stock-based compensation | — | 12,082 | 12,082 | — | 16,543 | 16,543 | ||||||||||||||||||
| Adjusted Non-GAAP amount | $ | (102,538 | ) | $ | (86,912 | ) | $ | (100,021 | ) | $ | (149,905 | ) | $ | (129,413 | ) | $ | (141,110 | ) | ||||||
| (a) Excluding (b) Includes | ||||||||||||||||||||||||
| US GAAP net loss per share | ||||||||||||||||||||||||
| Basic | N/A | N/A | (1.95 | ) | N/A | N/A | (8.04 | ) | ||||||||||||||||
| Diluted | N/A | N/A | (1.95 | ) | N/A | N/A | (8.04 | ) | ||||||||||||||||
| Adjusted Non-GAAP net loss per share (Adjusted EPS): | ||||||||||||||||||||||||
| Basic | N/A | N/A | (1.66 | ) | N/A | N/A | (7.02 | ) | ||||||||||||||||
| Diluted | N/A | N/A | (1.66 | ) | N/A | N/A | (7.02 | ) | ||||||||||||||||
| Weighted-average common shares outstanding: | ||||||||||||||||||||||||
| Basic | N/A | N/A | 60,199 | N/A | N/A | 20,100 | ||||||||||||||||||
| Diluted | N/A | N/A | 60,199 | N/A | N/A | 20,100 | ||||||||||||||||||
Forward-Looking Statements
The information in this press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “estimate,” “plan,” “project,” “forecast,” “intend,” “will,” “expect,” “anticipate,” “believe,” “seek,” “target” or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding access to capital, estimates and forecasts of financial and performance metrics, expectations and timing related to commercial product launches and the achievement of operational milestones, including the ability to meet and/or accelerate anticipated production timelines, Canoo's ability to capitalize on commercial opportunities, current or anticipated customer orders, and expectations regarding the development of facilities. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of Canoo’s management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of Canoo. These forward-looking statements are subject to a number of risks and uncertainties, including changes in domestic and foreign business, market, financial, political and legal conditions; Canoo's ability to continue as a going concern; Canoo's ability to access existing and future sources of capital via debt or equity markets, which will impact execution of its business plans and could require Canoo to terminate or significantly curtail its operations; Canoo's history of losses; Canoo's ability to adequately control the costs associated with its operations; Canoo's ability to successfully build and tool its manufacturing facilities, establish or continue a relationship with a contract manufacturer or failure of operation of Canoo's facilities ; the rollout of Canoo's business and the timing of expected business milestones and commercial launch; future market adoption of Canoo's offerings; risks related to Canoo's go-to-market strategy and manufacturing strategy; the effects of competition on Canoo's future business, and those factors discussed under the captions “Risk Factors” and “Management's Discussion and Analysis of Financial Condition and Results of Operations" in Canoo's Annual Report on Form 10-K for the fiscal year ended December 31, 2023 filed with the U.S. Securities and Exchange Commission (the “SEC”) on April 1, 2024, as well as its past and future Quarterly Reports on Form 10-Q and other filings with the SEC, copies of which may be obtained by visiting Canoo's Investors Relations website at investors.canoo.com or the SEC's website at www.sec.gov. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that Canoo does not presently know or that Canoo currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect Canoo’s expectations, plans or forecasts of future events and views as of the date of this press release. Canoo anticipates that subsequent events and developments will cause Canoo’s assessments to change. However, while Canoo may elect to update these forward-looking statements at some point in the future, Canoo specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Canoo’s assessments as of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements.
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