Ideanomics, Inc. Reports Q3 2022 Financial Results

Rhea-AI Summary

Ideanomics (NASDAQ: IDEX) reported third quarter 2022 revenues of $24.3 million, with electric vehicle and services revenue increasing 54.7% year-over-year to $16.2 million. US revenue declined to $12.7 million from $18.0 million in Q3 2021, while total EV revenues from the US and Europe surged 400% to $8.8 million. However, gross profit fell to $(0.7) million, resulting in a gross margin of (2.7%). Business highlights include Energica's delivery of 88 motorcycles for the G20 Summit and US Hybrid's technology supply for zero-emission street sweepers.

Positive

• Revenue from electric vehicles and charging services rose 54.7%, boosting overall revenue to $24.3 million.
• Significant increase of 400% in EV revenue from the US and Europe amounting to $8.8 million.
• Energica secured a deal to supply 88 motorcycles for the G20 Summit.

Negative

• Gross profit decreased to $(0.7) million from $4.0 million in Q3 2021.
• US revenue declined by $5.3 million compared to the same quarter last year.

• Revenues for the quarter ended September 30, 2022, were $24.3 million
• Energica provided 88 motorcycles for the upcoming G20 Summit in Bali, Indonesia.
• US Hybrid supplying technology for 62 zero emission street sweepers to GEP

NEW YORK, Nov. 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 third quarter 2022 operating results for the period ended September 30, 2022.

"In the third quarter Ideanomics showed the value and strength of our growing EV businesses, highlighted by Energica's deal to provide motorcycles for the Indonesian National Police, which will be utilized at the upcoming G20 summit. Solectrac, like Energica, is also experiencing demand based growth and has expanded its manufacturing capacity resulting in a significant increase in unit production, while US Hybrid is on track towards profitability by the end of 2023. Furthermore, our WAVE business secured its first fleet customer in Q3. We look forward to continuing to demonstrate how our differentiated products and technologies drive revenue growth across our EV brands," said Alf Poor, CEO of Ideanomics. 

Selected Business Updates and Highlights

• Energica announced that it will provide 88 motorcycles for the upcoming G20 Summit in Bali, Indonesia.
• US Hybrid announced it is supplying Global Environmental Products with its proprietary electric and hybrid electric propulsion kits for use in the construction of 62 zero emission street sweepers
• Ideanomics announced eleven new dealer partnerships to enhance the availability of Solectrac electric tractors across the United States
• Solectrac partners with Nolan Manufacturing to produce Solectrac's e25 electric tractors with additional models slated for future production
• Ideanomics announced an agreement with ABC Companies, a leading provider of motorcoach, transit and specialty passenger transport equipment in the USA and Canada allowing them to become a certified reseller of WAVE's industry-leading wireless inductive charging technology in North America.
• WAVE successfully tested its 500kW wireless charger at the Port of Los Angeles
• Ideanomics launched a product design studio to create a new generation of high-performance electric mobility and charging solutions
• Ideanomics welcomed new Chief Financial Officer Stephen Johnston

Ideanomics Third quarter 2022 Operating Results  

Revenue for the third quarter was $24.3 million, demonstrating strong year-over-year in Ideanomics' growing EV business.  Revenue from electric vehicle and charging product and services in the third quarter of 2022 was $16.2 million versus $10.5 million in the third quarter of 2021, an increase of 54.7%. Revenue from the US in the third quarter of 2022 was $12.7 million versus $18.0 million in the third quarter of 2021, a decrease of $5.3 million. EV, charging and battery revenue from the U.S. and Europe was $8.8 million, four times higher than Q3 of last year. We expect EV revenues from the US and Europe to continue to grow as we shift spending to focus on increasing operating capacity and fulfilling market demand.

Gross Profit 

Gross profit for the third quarter was $(0.7) million, which represented a Gross Margin of (2.7%). Gross profit for the third quarter of 2021 was $4.0 million.   

Conference Call Information

Ideanomics' management, including Alf Poor (Chief Executive Officer), Stephen Johnston (Chief Financial Officer), Robin Mackie (President, Ideanomics Mobility) and Tony Sklar (SVP of Investor Relations), will host live an earnings release conference call at 4:30 pm ET, Wednesday, November 9, 2022. 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=UtFdo7X5 

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				Nine Months Ended
	September 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021
Revenue from sales of products (including from a related party of $10, $0 and      $10, $1, for the three and nine months ended September 30, 2022 and 2021,      respectively)	$           15,746		$            9,676		$            55,157		$            21,149
Revenue from sales of services	8,412		16,336		28,461		64,339
Other revenue	120		$               569		253		$              1,159
Total revenue	24,278		26,581		83,871		86,647
Cost of revenue from sales of products (including from a related party of $0, $4 and      $0, $8 for  the three and nine months ended September 30, 2022 and 2021,      respectively)	18,198		9,934		58,963		20,445
Cost of revenue from sales of services	6,691		12,165		23,879		41,441
Cost of other revenue	48		531		179		1,063
Total cost of revenue	24,937		22,630		83,021		62,949
Gross profit	(659)		3,951		850		23,698
Operating expenses:
Selling, general and administrative expenses	37,710		37,750		113,555		74,419
Research and development expense	849		184		2,543		429
Asset impairment	378		15,183		1,030		15,183
Goodwill impairment	—		5,850		—		5,850
Change in fair value of contingent consideration, net	—		(5,099)		(131)		(7,006)
Litigation settlement	2		216		44		5,216
Depreciation and amortization	2,271		1,779		5,838		4,548
Total operating expenses	41,210		55,863		122,879		98,639
Loss from operations	(41,869)		(51,912)		(122,029)		(74,941)
Interest and other income (expense):
Interest income	957		417		2,560		812
Interest expense	(456)		(308)		(1,523)		(1,683)
Gain on extinguishment of debt	—		300		—		300
Loss on disposal of subsidiaries, net	(30)		—		(218)		(1,264)
Gain on remeasurement of investment	—		—		10,965		2,915
Other income, net	2,574		8		4,460		507
Loss before income taxes and non-controlling interest	(38,824)		(51,495)		(105,785)		(73,354)
Income tax benefit	400		944		925		9,971
Impairment of and equity in gain (loss) of equity method investees	(429)		(1,447)		(2,357)		(2,062)
Net loss	(38,853)		(51,998)		(107,217)		(65,445)
Net loss attributable to common shareholders	(38,853)		(51,998)		(107,217)		(65,445)
Net loss attributable to non-controlling interest	1,439		187		3,525		459
Net loss attributable to Ideanomics, Inc. common shareholders	$         (37,414)		$         (51,811)		$        (103,692)		$          (64,986)
Earnings (loss) per share
Basic	$             (0.08)		$             (0.11)		$              (0.21)		$              (0.15)
Diluted	$             (0.08)		$             (0.11)		$              (0.21)		$              (0.15)
Weighted average shares outstanding:
Basic	494,061,205		473,829,962		496,392,410		432,989,602
Diluted	494,061,205		473,829,962		496,392,410		432,989,602

 

IDEANOMICS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (USD in thousands)
	September 30, 2022		December 31, 2021
ASSETS
Current assets:
Cash and cash equivalents	$                     25,186		$                   269,863
Accounts receivable, net	6,000		3,338
Contract assets	3,767		2,772
Amount due from related parties	534		266
Notes receivable from third parties	83,863		54,907
Notes receivable from related party	400		697
Inventory	29,530		6,159
Prepaid expenses	15,075		20,015
Other current assets	5,673		4,490
Total current assets	170,028		362,507
Property and equipment, net	10,170		2,905
Intangible assets, net	78,645		42,546
Goodwill	68,711		16,161
Operating lease right of use assets	16,835		12,827
Financing  lease right of use assets	1,376		—
Long-term investments	23,319		35,588
Other non-current assets	1,235		903
Total assets	$                   370,319		$                   473,437
LIABILITIES, CONVERTIBLE REDEEMABLE PREFERRED STOCK, REDEEMABLE NON-CONTROLLING INTEREST AND EQUITY
Current liabilities
Accounts payable	$                     22,782		$                       6,674
Deferred revenue (including customer deposits of $2,681 and $3,163 as of September 30, 2022 and December 31, 2021, respectively)	3,540		5,392
Accrued salaries	7,916		8,957
Amount due to related parties	2,223		1,102
Other current liabilities	8,831		7,137
Current portion of operating lease liabilities	3,878		3,086
Current portion of financing lease liabilities	348		—
Current contingent consideration	767		648
Promissory note-short term	2,424		312
Convertible promissory note due to third-parties-short term	9,250		57,809
Total current liabilities	61,959		91,117
Promissory note-long term	1,559		—
Operating lease liability-long term	12,808		9,647
Financing lease liability-long term	1,253		—
Non-current contingent consideration	100		350
Deferred tax liabilities	7,972		5,073
Other long-term liabilities	770		620
Total liabilities	86,421		106,807
Commitments and contingencies (Note 19)
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      September 30, 2022 and December 31, 2021	1,262		1,262
Equity:
Common stock - $0.001 par value; 1,500,000,000 shares authorized, 517,134,223 shares issued and outstanding as      of September 30, 2022 and 497,272,525 and 344,861,295 shares issued and outstanding as of December 31, 2021,	517		497
Treasury Stock	4,639		—
Additional paid-in capital	980,232		968,066
Accumulated deficit	(709,451)		(605,758)
Accumulated other comprehensive income	(13,162)		222
Total Ideanomics, Inc. shareholders' equity	262,775		363,027
Non-controlling interest	19,861		2,341
Total equity	282,636		365,368
Total liabilities, convertible redeemable preferred stock, redeemable non-controlling interest and equity	$                  370,319		$                  473,437

 

IDEANOMICS, INC. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) (USD in thousands)
	Three Months Ended				Nine Months Ended
	September 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021
Net loss	$       (38,853)		$       (51,998)		$     (107,217)		$       (65,445)
Other comprehensive income (loss), net of nil tax:
Changes in fair value of available-for-sale securities	—		4		—		(16)
Foreign currency translation adjustments	(8,127)		(951)		(15,930)		(1,683)
Comprehensive loss	(46,980)		(52,945)		(123,147)		(67,144)
Comprehensive loss (gain) attributable to non-controlling interest	3,075		273		6,756		864
Comprehensive loss attributable to Ideanomics, Inc. common shareholders	$        (43,905)		$        (52,672)		$     (116,391)		$        (66,280)

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SOURCE Ideanomics

FAQ

What were Ideanomics' Q3 2022 revenue figures?

Ideanomics reported revenues of $24.3 million for Q3 2022.

How much did electric vehicle revenue increase year-over-year for Ideanomics?

Electric vehicle and charging services revenue increased by 54.7% year-over-year, totaling $16.2 million.

What is the gross profit for Ideanomics in Q3 2022?

The gross profit for Ideanomics in Q3 2022 was $(0.7) million, reflecting a gross margin of (2.7%).

What significant business updates did Ideanomics announce?

Energica will provide 88 motorcycles for the G20 Summit and US Hybrid is supplying technology for 62 zero-emission street sweepers.

What factors contributed to the decline in US revenue for Ideanomics?

US revenue declined by $5.3 million, down to $12.7 million compared to Q3 2021.