Ideanomics, Inc. Reports Q2 Financial Results

Rhea-AI Summary

Ideanomics (IDEX) reported second quarter 2022 revenues of $34.2 million, driven by growth in its electric vehicle (EV) businesses, particularly Energica and Solectrac. The company experienced a year-over-year revenue decline of $10.6 million in US revenues, primarily due to lower sales at Timios. However, gross profit fell to $1.5 million, reflecting a gross margin of 4.4%, down from $9.0 million in the same quarter last year. Recent launches, including the Experia electric motorcycle and the establishment of Ideanomics Energy, are expected to support ongoing revenue growth.

Positive

• Introduced Ideanomics Energy, increasing service offerings.
• Energica launched the new 'Experia' electric motorcycle.
• Energica and Solectrac demonstrated significant revenue growth.

Negative

• US revenue declined by $10.6 million, primarily due to lower revenues at Timios.
• Gross profit decreased to $1.5 million from $9.0 million year-over-year.

-     Revenues for the quarter ended June 30, 2022, were $34.2 million
-     Launched Ideanomics Energy increasing our services and offerings
-     Energica launched new bike Experia in addition to Energica Inside

NEW YORK, Sept. 9, 2022 /PRNewswire/ -- Ideanomics (NASDAQ: IDEX) ("Ideanomics" or the "Company"), a global company focused on accelerating the commercial adoption of electric vehicles, announced today its second quarter 2022 operating results for the periods ended June 30, 2022.

"In the second quarter Ideanomics was able to  demonstrate our growing EV businesses, highlighted by our strong revenue growth at both Energica and Solectrac. Their new facility in Sonoma will allow us to produce more tractors in response to demand. Additionally, Energica announced its newest bike, the 'Experia', in addition to Energica Inside. These developments will enable us to continue to drive the revenue growth these businesses are experiencing," said Alf Poor, CEO of Ideanomics.

Selected Business Updates and Highlights

• Solectrac opened new CA facility, ramping out production capacity
• Energica Day at Nasdaq in Times Square, NY
• Energica expanded their lineup by revealing 'Experia' a new green tourer electric motorcycle
• US Hybrid announced near-zero emission natural gas-powered hybrid powertrain for drayage and long-haul trucks
• Energica Launched Energica Inside to help accelerate industry shift to EV
• Introduced Ideanomics Energy; signed first customer agreement with Coast Counties Peterbilt
• InoBat and Ideanomics announced plans to build R&D and battery production facility in Indiana

Ideanomics Second Quarter 2022 Operating Results  

Revenue for the second quarter was $34.2 million, demonstrating strong year-over-year growth highlighted by Ideanomics' growing EV business. Revenue from the US in the second quarter of 2022 was $14.4 million versus $25.0 million in the second quarter of 2021, a decrease of $10.6 million due to lower revenues at Timios, but was offset with significant growth in revenues at both our Energica and Solectrac brands. We expect global revenues from EV to continue to grow as we incorporate Energica into our product offerings and our worldwide customer base expands.

Gross Profit 

Gross profit for the second quarter was $1.5 million, which represented a Gross Margin of 4.4%. Gross profit for the second quarter of 2021 was $9.0 million.   

Conference Call Information

As a reminder, the upcoming Conference Call will cover the fourth quarter and full-year 2021 in addition to the first quarter and second quarter 2022 results. Details are as follows: Ideanomics' management, including Alf Poor (Chief Executive Officer), Conor McCarthy (Chief Financial Officer), Robin Mackie (President of Ideanomics Mobility) and Tony Sklar (SVP of Investor Relations), will host a live conference call at 8:30 a.m. ET, Friday, September 9, 2022 to discuss the preliminary results. Time permitting, Ideanomics management will answer questions from the Say platform and during the live Q&A session. A replay of the earnings call will be available soon after the conclusion of the event. 

To join the webcast, please visit the 'Events & Presentations' section of the Ideanomics corporate website (http://www.ideanomics.com/), or copy/paste this link:
https://event.choruscall.com/mediaframe/webcast.html?webcastid=7uvVDWR3

About Ideanomics
Ideanomics (NASDAQ: IDEX) is a global group with a simple mission: to accelerate the commercial adoption of electric vehicles. By bringing together vehicles and charging technology with design, implementation, and financial services, we provide the completeness of solutions needed for the commercial world to commit to an EV future. To keep up with Ideanomics, please follow the company on social @ideanomicshq or visit https://ideanomics.com.

Safe Harbor Statement
This press release contains "forward-looking statements" within the meaning of the federal securities laws. All statements other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects," or similar expressions, involve known and unknown risks and uncertainties, and include the statement regarding the completion of the business combination within a certain period of time, if ever. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, they do involve assumptions, risks, and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of risks and uncertainties, such as risks related to: our ability to obtain necessary regulatory approvals and other risks and uncertainties disclosed under the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our most recent Form 10-K and Form 10-Q filed with the Securities and Exchange Commission, and similar disclosures in subsequent reports filed with the SEC, which are available on the SEC website at www.sec.gov.. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these risk factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

Investor Relations and Media Contact

Ideanomics,Inc.
Tony Sklar, SVP of Investor Relations
1441 Broadway, Suite 5116 New York, NY 10018
Email: ir@ideanomics.com

Theodore Rolfvondenbaumen
Communications Director
Email: trolfvondenbaumen@ideanomics.com 

 

IDEANOMICS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (USD in thousands)
	Three Months Ended				Six Months Ended
	June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021
Revenue from sales of products (including from a related party of $—,  $—  and $- , $1, for the three and six months ended June 30, 2022 and 2021, respectively)	$           24,534		$            6,957		$            39,411		$            11,472
Revenue from sales of services	9,589		22,794		20,049		48,004
Other revenue	79		$               376		133		$                 590
Total revenue	34,202		30,127		59,593		60,066
Cost of revenue from sales of products (including from a related party of $4 and $0, $8 for the three and six months ended June 30, 2022 and 2021, respectively)	25,027		6,060		40,765		10,512
Cost of revenue from sales of services	7,605		14,663		17,188		29,277
Cost of other revenue	81		373		131		533
Total cost of revenue	32,713		21,096		58,084		40,322
Gross profit	1,489		9,031		1,509		19,744
Operating expenses:
Selling, general and administrative expenses	38,750		19,780		75,845		36,669
Research and development expense	680		235		1,694		245
Asset  impairment	572		—		653		—
Change in fair value of contingent consideration, net	—		(2,401)		(131)		(1,907)
Litigation settlement	42		—		42		5,000
Depreciation and amortization	2,282		1,441		3,567		2,769
Total operating expenses	42,326		19,055		81,670		42,776
Loss from operations	(40,837)		(10,023)		(80,161)		(23,032)
Interest and other income (expense):
Interest income	840		238		1,603		395
Interest expense	(488)		(801)		(1,067)		(1,375)
Loss on disposal of subsidiaries, net	(42)		(1,234)		(188)		(1,264)
Gain on remeasurement of investment	—		2,915		10,965		2,915
Other income, net	1,696		837		1,887		499
Loss before income taxes and non-controlling interest	(38,831)		(8,068)		(66,961)		(21,862)
Income tax benefit	147		1,682		525		9,027
Equity in gain (loss) of equity method investees	(589)		(461)		(1,928)		(615)
Net loss	(39,273)		(6,847)		(68,364)		(13,450)
Deemed dividend related to warrant repricing	—		—		—		—
Net loss attributable to common shareholders	(39,273)		(6,847)		(68,364)		(13,450)
Net loss attributable to non-controlling interest	1,506		152		2,086		272
Net loss attributable to Ideanomics, Inc. common shareholders	$         (37,767)		$           (6,695)		$           (66,278)		$           (13,178)
Earnings (loss) per share
Basic	$             (0.08)		$             (0.02)		$              (0.13)		$              (0.03)
Diluted	$             (0.08)		$             (0.02)		$              (0.13)		$              (0.03)
Weighted average shares outstanding:
Basic	497,792,525		433,098,279		497,577,331		412,230,966
Diluted	497,792,525		433,098,279		497,577,331		412,230,966

 

IDEANOMICS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (USD in thousands)
	June 30, 2022		December 31, 2021
ASSETS
Current assets:
Cash and cash equivalents	$              85,508		$            269,863
Accounts receivable, net	6,657		3,338
Contract assets	3,115		2,772
Amount due from related parties	303		266
Available-for-sale securities	3,312		—
Notes receivable third parties	69,830		54,907
Notes receivable from related party	1,004		697
Inventory	23,770		6,159
Prepaid expenses	23,187		20,015
Other current assets	5,129		4,490
Total current assets	221,815		362,507
Property and equipment, net	8,318		2,905
Intangible assets, net	84,367		42,546
Goodwill	72,098		16,161
Operating lease right of use assets	17,740		12,827
Long-term investments	25,518		35,588
Other non-current assets	1,345		903
Total assets	$            431,201		$            473,437
LIABILITIES, CONVERTIBLE REDEEMABLE PREFERRED STOCK, REDEEMABLE NON-CONTROLLING INTEREST AND EQUITY
Current liabilities
Accounts payable	$              16,310		$               6,674
Deferred revenue (including customer deposits of $4,407 and $3,163 as of June 30, 2022 and December 31, 2021, respectively)	6,048		5,392
Accrued salaries	6,269		8,957
Amount due to related parties	2,394		1,102
Other current liabilities	12,792		7,137
Current portion of operating lease liabilities	3,926		3,086
Current contingent consideration	722		648
Promissory note-short term	3,591		312
Convertible promissory note due to third-parties-short term	33,437		57,809
Total current liabilities	85,489		91,117
Promissory note-long term	1,716		—
Operating lease liability-long term	13,638		9,647
Non-current contingent consideration	145		350
Deferred tax liabilities	8,799		5,073
Other long-term liabilities	724		620
Total liabilities	110,511		106,807
Commitments and contingencies (Note 18)
Convertible redeemable preferred stock and Redeemable non-controlling interest:
Series A - 7,000,000 shares issued and outstanding, liquidation and deemed liquidation preference of $3,500,000 as of June 30, 2022 and December 31, 2021	1,262		1,262
Equity:
Common stock - $0.001 par value; 1,500,000,000 shares authorized, 497,272,524 shares and 497,272,525 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively	498		497
Additional paid-in capital	973,701		968,066
Accumulated deficit	(672,037)		(605,758)
Accumulated other comprehensive income	(5,691)		222
Total Ideanomics, Inc. shareholders' equity	296,472		363,027
Non-controlling interest	22,956		2,341
Total equity	319,427		365,368
Total liabilities, convertible redeemable preferred stock, redeemable non-controlling interest and equity	$            431,201		$            473,437

 

IDEANOMICS, INC. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) (USD in thousands)
	Three Months Ended				Six Months Ended
	June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021
Net loss	$        (39,273)		$          (6,847)		$        (68,364)		$        (13,450)
Other comprehensive income (loss), net of nil tax:
Changes in fair value of available-for-sale securities	—		(20)		—		(20)
Foreign currency translation adjustments	(10,220)		(40)		(7,803)		(733)
Comprehensive loss	(49,493)		(6,907)		(76,167)		(14,203)
Comprehensive loss (gain) attributable to non-controlling interest	3,385		158		3,681		591
Comprehensive loss attributable to Ideanomics, Inc. common shareholders	$        (46,108)		$          (6,750)		$        (72,486)		$        (13,612)

 

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SOURCE Ideanomics

FAQ

What were Ideanomics' revenues for Q2 2022?

Ideanomics reported revenues of $34.2 million for the second quarter of 2022.

How much did Ideanomics' gross profit decline in Q2 2022?

Gross profit for Q2 2022 was $1.5 million, down from $9.0 million in Q2 2021.

What new products did Ideanomics launch in Q2 2022?

In Q2 2022, Ideanomics launched the 'Experia' electric motorcycle and Ideanomics Energy.

How did US revenues change for Ideanomics in Q2 2022?

US revenues decreased by $10.6 million to $14.4 million in Q2 2022 compared to Q2 2021.

What is the expected growth outlook for Ideanomics?

Ideanomics expects global revenues from electric vehicles to continue to grow as they expand their offerings and customer base.