Ideanomics, Inc. Reports Q4 and Full Year 2023 Financial Results
Ideanomics (NASDAQ: IDEX) reported its fourth quarter and full year 2023 financial results on June 18, 2024. The company focuses on electric vehicles and associated charging products, having exited non-core businesses. Full-year revenue was $15.5 million, an 18.7% decrease from 2022. Gross profit for 2023 was negative $2.7 million, compared to negative $3.4 million in 2022. Key highlights include partnerships by Energica for all-electric solutions in aviation, marine, and off-road uses, and providing electric motorcycles for police fleets in France and Barbados. WAVE, another Ideanomics subsidiary, achieved the first OEM-approved wireless charging installation and continued projects with major logistics fleet customers.
- Energica announced partnerships for all-electric solutions in aviation, marine, and off-road uses.
- Energica selected to provide electric motorcycles to police services in France and Barbados.
- WAVE completed an industry-first OEM-approved installation of wireless charging.
- WAVE continued initial projects with major logistics fleet customers.
- Full-year revenue decreased by 18.7% to $15.5 million compared to 2022.
- Gross profit for the year was negative $2.7 million, though it improved from negative $3.4 million in 2022.
Insights
Ideanomics' financial results for the full year 2023 present a mixed picture.
For retail investors, the key takeaway is that while the company is moving in the right direction regarding profitability, it still faces challenges in growing its revenue. Investors might find it reassuring that the company is restructuring and focusing on last-mile and local delivery vehicles, which could be a growth area in the coming years. However, the negative gross profit continues to be a red flag, suggesting that the company is still in a turnaround phase and has a long way to go before becoming profitable.
Another point to consider is cash flow. Negative gross profit often translates to cash flow issues, which could affect the company's ability to fund its operations and growth initiatives without additional financing.
From a market perspective, Ideanomics' focus on last-mile and local delivery vehicles aligns with the growing trend towards electrification in logistics and transportation. This market is expected to grow substantially as environmental regulations tighten and more companies aim to reduce their carbon footprints. The partnerships announced for aviation, marine and off-road uses further diversify the company's potential revenue streams and market presence.
However, the industry remains competitive, with several well-established players. Ideanomics' ability to carve out a significant market share will depend on the effectiveness of their reorganization and the performance of their new product lines. Additionally, the announcement of partnerships and projects like the wireless charging installation and electric motorcycles for police fleets in France and Barbados are promising but will need to be monitored for their impact on the company's bottom line.
Overall, while the market opportunities are there, the execution risks remain high. Investors should watch closely how these initiatives translate into actual sales and profitability in future quarters.
NEW YORK, June 18, 2024 (GLOBE NEWSWIRE) -- Ideanomics (NASDAQ: IDEX) ("Ideanomics" or the "Company"), a global company focused on accelerating the commercial adoption of electric vehicles, announced today its fourth quarter and full year 2023 operating results for the period ended December 31, 2023.
Throughout 2023 Ideanomics continued executing its commitment to shareholders to exit non-core businesses and finalize a reorganization of the business to focus on last-mile and local delivery vehicles and associated charging products.
Full Year Highlights
- Energica Inside announced partnerships to develop all-electric solutions for aviation, marine, and off-road uses.
- Energica selected by police services in France and Barbados to provide electric motorcycles for police fleets.
- WAVE completes an industry-first OEM-approved installation of wireless charging.
- WAVE continues its initial projects with major logistics fleet customers.
Ideanomics Full Year 2023 Operating Results
Revenue for the Full Year was
Gross Profit
Gross profit for the Full Year was negative
Conference Call Information
Ideanomics' management, including Alf Poor (Chief Executive Officer) and Ryan Jenkins (Chief Financial Officer), recorded an earnings conference call. Please visit www.ideanomics.com and follow the link to listen to the call.
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.
Contact:
Tony Sklar, SVP of Investor Relations
1441 Broadway, Suite 5116, New York, NY 10018
ir@ideanomics.com
IDEANOMICS, INC. OPERATIONS (USD in thousands, except per share data)
| For the years ended December 31, | 2023 | 2022 | ||||
| Revenue from sales of products | ||||||
| Revenue from sales of services | 985 | 3,917 | ||||
| Other revenue | 764 | 344 | ||||
| Total revenue | 15,459 | 19,015 | ||||
| Cost of revenue from sales of products | 17,765 | 20,257 | ||||
| Cost of revenue from sales of services | 58 | 1,742 | ||||
| Cost of other revenue | 350 | 374 | ||||
| Total cost of revenue | 18,173 | 22,373 | ||||
| Gross profit | (2,714 | ) | (3,358 | ) | ||
| Operating expenses: | ||||||
| Selling, general and administrative expenses | 83,780 | 113,573 | ||||
| Research and development expense | 10,191 | 3,792 | ||||
| Asset impairments | 163,984 | 63,847 | ||||
| Goodwill impairments | 13,712 | 22,662 | ||||
| Change in fair value of contingent consideration, net | (73,768 | ) | (131 | ) | ||
| Litigation settlements | 89 | 225 | ||||
| Depreciation and amortization | 16,752 | 5,308 | ||||
| Total operating expenses | 214,740 | 209,276 | ||||
| Loss from operations | (217,454 | ) | (212,634 | ) | ||
| Interest and other income (expense): | ||||||
| Interest income | 316 | 3,449 | ||||
| Interest expense | (4,307 | ) | (2,909 | ) | ||
| Loss on disposal of subsidiaries, net | (1,152 | ) | (217 | ) | ||
| Gain on remeasurement of investment | — | 10,965 | ||||
| Other income, net | 12,505 | 865 | ||||
| Loss before income taxes and non-controlling interest | (210,092 | ) | (200,481 | ) | ||
| Income tax benefit | 5,242 | 1,574 | ||||
| Impairment of and equity in loss of equity method investees | — | (14,726 | ) | |||
| Net loss from continuing operations | (204,850 | ) | (213,633 | ) | ||
| Net loss from discontinued operations, net of tax | (29,276 | ) | (68,452 | ) | ||
| Net loss | (234,126 | ) | (282,085 | ) | ||
| Net loss attributable to common shareholders | (234,126 | ) | (282,085 | ) | ||
| Net loss attributable to non-controlling interest | 10,297 | 21,425 | ||||
| Net loss attributable to Ideanomics, Inc. common shareholders | $(223,829 | ) | $(260,660 | ) | ||
| Basic and diluted loss per share from continuing operations | ) | ) | ||||
| Basic and diluted loss per share from discontinued operations | ) | ) | ||||
| Basic and diluted loss per share | $(23.53 | ) | $(68.79 | ) | ||
| Weighted average shares outstanding: | ||||||
| Basic and diluted | 9,971,038 | 4,101,624 | ||||
IDEANOMICS, INC. CONSOLIDATED BALANCE SHEETS (USD in thousands)
| As of December 31, | 2023 | 2022 | ||||
| ASSETS | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | ||||||
| Accounts receivable, net | 1,037 | 2,107 | ||||
| Contract assets | 34 | 3,579 | ||||
| Amount due from related parties | — | 90 | ||||
| Notes receivable from third parties, net | 42 | 31,653 | ||||
| Inventory | 19,838 | 29,309 | ||||
| Prepaid expenses | 3,481 | 9,569 | ||||
| Other current assets | 1,882 | 5,096 | ||||
| Current assets of discontinued operations | 5,036 | 33,703 | ||||
| Total current assets | 32,599 | 118,020 | ||||
| Property and equipment, net | 12,904 | 7,845 | ||||
| Intangible assets, net | 23,667 | 43,622 | ||||
| Goodwill | 35,894 | 37,775 | ||||
| Operating lease right of use assets | 6,117 | 10,533 | ||||
| Long-term investments | — | 7,500 | ||||
| Other non-current assets | 2,861 | 2,276 | ||||
| Non-current assets of discontinued operations | 2,842 | 19,212 | ||||
| Total assets | $116,884 | $246,783 | ||||
| LIABILITIES, CONVERTIBLE REDEEMABLE PREFERRED STOCK AND EQUITY | ||||||
| Current liabilities | ||||||
| Accounts payable | ||||||
| Deferred revenue (including customer deposits of | 2,537 | 2,186 | ||||
| Accrued salaries | 5,347 | 6,851 | ||||
| Accrued expenses | 3,784 | 2,669 | ||||
| Amount due to related parties | 1,419 | 1,927 | ||||
| Other current liabilities | 13,181 | 9,287 | ||||
| Current portion of operating lease liabilities | 3,222 | 2,031 | ||||
| Current contingent consideration | 727 | 867 | ||||
| Promissory note due to related party-short term | 2,348 | 2,021 | ||||
| Promissory note due to third parties-short term | 14,615 | 9,578 | ||||
| Convertible promissory note due to third-parties | 7,524 | 3,928 | ||||
| Current liabilities of discontinued operations | 7,721 | 14,244 | ||||
| Total current liabilities | 117,633 | 80,813 | ||||
| Promissory note-long term | 3,943 | 1,957 | ||||
| Operating lease liability-long term | 10,890 | 8,566 | ||||
| Deferred tax liabilities | 1,946 | 2,509 | ||||
| Other long-term liabilities | 1,071 | 1,131 | ||||
| Non-current liabilities of discontinued operations | 1,672 | 5,212 | ||||
| Total liabilities | 137,155 | 100,188 | ||||
| Commitments and contingencies (Note 19) | ||||||
| Convertible redeemable preferred stock: | ||||||
| Series A - 7,000,000 shares issued and outstanding, liquidation and deemed liquidation preference of | 1,262 | 1,262 | ||||
| Series B - 60,000,000 shares authorized, 20,000,000 and 10,000,000 shares issued and 2,105,200 and 10,000,000 shares outstanding as of December 31, 2023 and 2022, respectively | 1,863 | 8,850 | ||||
| Series C - 2,000,000 shares authorized, 1,159,210 and 0 shares issued and 613,039 and 0 shares outstanding as of December 31, 2023 and 2022, respectively | 4,825 | — | ||||
| Equity: | ||||||
| Common stock - | 1,499 | 597 | ||||
| Additional paid-in capital | 1,071,520 | 1,004,082 | ||||
| Accumulated deficit | (1,090,579 | ) | (866,418 | ) | ||
| Accumulated other comprehensive (income) loss | (4,553 | ) | (6,104 | ) | ||
| Total Ideanomics, Inc. shareholder's equity | (22,113 | ) | 132,157 | |||
| Non-controlling interest | (6,108 | ) | 4,326 | |||
| Total equity | (28,221 | ) | 136,483 | |||
| Total liabilities, convertible redeemable preferred stock and equity | $116,884 | $246,783 | ||||
FAQ
What were Ideanomics' full year 2023 financial results?
What partnerships did Energica announce in 2023?
What was the significant achievement of WAVE in 2023?
How did Energica contribute to police services in 2023?
What was the gross profit of Ideanomics for the full year 2023?
