SES AI Reports First Quarter 2024 Earnings Results; Affirms 2024 Outlook

Rhea-AI Summary

SES AI reported its first quarter 2024 earnings results, affirming the 2024 outlook. The company highlighted key achievements, including operating a Li-Metal line in an automotive OEM's facility and securing two B-sample development JDAs. They emphasized progress in the UAM market and the conversion of an existing line to dedicated UAM cells. The CEO highlighted a collaboration with Hyundai and Kia, signaling advancements towards commercializing Li-Metal technology for automotive and UAM applications.

Positive

• SES AI reported significant achievements in the first quarter of 2024, including the successful operation of a Li-Metal line within an automotive OEM's facility.

• The company secured two B-sample development JDAs, indicating progress in product development and innovation.

• SES AI's focus on the UAM market and the expected conversion of an existing line to dedicated UAM cells demonstrate strategic advancements.

• The collaboration with Hyundai and Kia represents a major milestone, positioning SES AI as a leader in commercializing Li-Metal technology for automotive and UAM applications.

Negative

• None.

Insights

Financial Analyst

SES AI's affirmation of its 2024 outlook provides a stable forecast for investors, indicating management's confidence in the company's operational direction and financial health. The mention of a game-changing collaboration with Hyundai and Kia is noteworthy. It suggests SES AI’s Li-Metal technology has potential for significant market penetration, especially considering the automotive giants' scale. Robust partnerships in the tech sector often lead to enhanced R&D capabilities and can speed up commercialization, possibly resulting in increased market share and revenue growth. Investors should monitor the UAM cell production, as it may represent a new revenue stream and diversification opportunity. However, it's critical to assess whether SES AI's current valuation accounts for the anticipated growth from these developments or if market expectations have inflated the stock price.

Technology Industry Analyst

The technological advancement SES AI demonstrates, being the first to operate a Li-Metal battery line within an automotive OEM, indicates leadership in an emerging and potentially disruptive field. Li-Metal batteries are known for their high energy density, which is a key differentiator in the electric vehicle market. The progress in B-sample development JDAs (Joint Development Agreements) signals that the company is moving closer to a commercially viable product. These agreements are pivotal in the tech industry, as they often lead to improved products through collaborative innovation. For investors, the tech's maturing phase is a critical time to gauge whether a company can transition from R&D to a successful product offering. However, the cost implications and scalability of SES AI's battery technology should be evaluated, as these factors will influence the company's profitability and market share in the long term.

Energy Sector Analyst

The Urban Air Mobility (UAM) market is an emerging sector with substantial growth projections. SES AI's advancement in this area, especially with the expected conversion of an existing line to dedicated UAM cells, might position the company at the forefront of this nascent industry. This is critical as early movers in new markets can establish strong brand recognition and customer loyalty. For the energy sector, such a development is significant, as it opens up a new application for battery technology beyond traditional automotive uses. Investors would do well to consider the potential size of the UAM market and SES AI's capacity to meet future demand, along with regulatory developments which could impact the rate of UAM commercialization. Closer scrutiny of SES AI's production capabilities and cost structure in relation to UAM cell production will be necessary to fully understand the investment potential.

Highlights

• The world’s first to build and operate a Li-Metal line within an automotive OEM’s facility.
• The first Li-Metal battery company to have two B-sample development JDAs.
• The UAM market opportunity is closer to commercialization with B-sample progress and the expected conversion of an existing line to dedicated UAM cells.
• The 2024 outlook previously issued on February 26, 2024 is affirmed.

WOBURN, Mass.--(BUSINESS WIRE)-- SES AI Corporation (“SES AI”) (NYSE: SES), a global leader in the development and manufacturing of high-performance Li-Metal batteries, today announced its first quarter 2024 business results for the period ended March 31, 2024.

The Company posted a Letter to Our Shareholders on its Investor Relations website from Founder and CEO Dr. Qichao Hu and Chief Financial Officer Jing Nealis, which provides a business update and details on first quarter 2024 results.

“The game-changing collaboration with Hyundai Motor Company and Kia Corporation is one of the more significant milestones we have reached to date,” stated Dr. Qichao Hu, Founder and CEO. “Moving to the next phase of our contract with these partners, together with other agreements and UAM cell production we are anticipating later this year, reinforces our lead in the race to commercialize our Li-Metal technology for both automotive and UAM applications.”

The Company will hold a conference call on Friday, May 3, 2024 at 9:00 a.m. Eastern Time. A webcast of the live conference call will be available through SES’s Investor Relations website, https://investors.ses.ai. The following link can be used to register in advance for the call: https://events.q4inc.com/attendee/700378152, and the following link can be used by investors to submit questions in advance of the call by Thursday, May 2, 2024 at 11:00 p.m. Eastern Time.

The conference call can also be accessed live over the phone by dialing the following numbers:

United States (Toll Free): +1-833-470-1428
International: https://www.netroadshow.com/conferencing/globalnumbers?confId=63415
Access Code: 848873

A webcast replay will be available shortly after the call at: https://investors.ses.ai/events-and-presentations/events/default.aspx.

About SES AI:

SES AI Corp. (NYSE: SES) is powering the future of global electric transportation on land and in the air with the world’s most advanced Li-Metal batteries. SES AI is the first battery company in the world to accelerate its pace of innovation by utilizing superintelligent AI across the spectrum of its business, from research and development; materials sourcing; cell design; engineering and manufacturing; to battery health and safety monitoring. Founded in 2012, SES AI is an Li-Metal battery developer and manufacturer headquartered in Boston and with operations in Singapore, Shanghai, and Seoul. Learn more at SES.AI.

SES AI may use its website as a distribution channel of material company information. Financial and other important information regarding SES AI is routinely posted on and accessible through the Company’s website at www.ses.ai. Accordingly, investors should monitor this channel, in addition to following SES AI’s press releases, Securities and Exchange Commission filings and public conference calls and webcasts.

Forward-Looking Statements

This press release contains statements that SES AI believes are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, statements relating to expectations for future financial performance, business strategies or expectations for our business. These statements are based on the beliefs and assumptions of the management of SES AI. Although SES AI believes that its plans, intentions and expectations reflected in or suggested by these forward-looking statements are reasonable, it cannot provide assurance that it will achieve or realize these plans, intentions or expectations. These statements constitute projections, forecasts and forward-looking statements, and are not guarantees of performance. Such statements can be identified by the fact that they do not relate strictly to historical or current facts. When used in this press release, words such as “anticipate”, “believe”, “can”, “continue”, “could”, “estimate”, “expect”, “forecast”, “intend”, “may”, “might”, “plan”, “possible”, “potential”, “predict”, “project”, “seek”, “should”, “strive”, “target”, “will”, “would” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking.

You should not place undue reliance on these forward-looking statements. Should one or more of a number of known and unknown risks and uncertainties materialize, or should any of SES AI’s assumptions prove incorrect, our actual results or performance may be materially different from those expressed or implied by these forward-looking statements. Some factors that could cause actual results to differ include, but are not limited to the following risks: risks related to the development and commercialization of SES AI’s battery technology and the timing and achievement of expected business milestones; risks relating to the uncertainty of achieving and maintaining profitability; risks relating to the uncertainty of meeting future capital requirements; the ability of SES to integrate its products into electric vehicles (“EVs”) and Urban Air Mobility (“UAM") and other applications; the risk that delays in the pre-manufacturing development of SES AI’s battery cells could adversely affect SES AI’s business and prospects; risks relating to the development of the UAM market and demand for batteries from the UAM industry; potential supply chain difficulties; the ability of SES AI to engage target original equipment manufacturers (“OEMs”) customers successfully and integrate SES AI’s products into EVs manufactured by OEM customers; the ability to obtain raw materials, components or equipment through new or existing supply relationships; risks resulting from SES AI’s joint development agreements and other strategic alliances and investments; product liability and other potential litigation, regulation and legal compliance; SES AI’s ability to attract, train and retain highly skilled employees and key personnel; developments in alternative technology or other fossil fuel alternatives; risks related to SES AI’s intellectual property; business, regulatory, political, operational, financial and economic risks related to SES AI’s business operations outside the United States; SES AI has identified material weaknesses in its internal control over financial reporting and may identify material weaknesses in the future or otherwise fail to develop or maintain an effective system of internal controls; the volatility of SES AI’s common stock and value of SES AI’s public warrants; and the other risks described in “Part I, Item 1A. Risk Factors” in our annual report on Form 10-K for the fiscal year ended December 31, 2023 filed with the Securities and Exchange Commission (“SEC”) on February 27, 2024 and other documents filed from time to time with the SEC. There may be additional risks that SES AI presently knows and/or 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 SES AI’s expectations, plans or forecasts of future events and views only as of the date of this press release. SES AI anticipates that subsequent events and developments will cause its assessments to change. However, while SES AI may elect to update these forward-looking statements at some point in the future, SES AI specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing SES AI’s assessments as of any date subsequent to the date of this press release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240502964429/en/

For the media:

pr@ses.ai

For investors:

ir@ses.ai

Source: SES AI Corporation

FAQ

What did SES AI announce in their first quarter 2024 earnings results?

SES AI announced its first quarter 2024 business results, highlighting key achievements and affirming the 2024 outlook.

When will SES AI hold a conference call to discuss the earnings results?

SES AI will hold a conference call on Friday, May 3, 2024, at 9:00 a.m. Eastern Time to discuss the earnings results.

Where can investors access the webcast of the conference call?

Investors can access the webcast of the conference call through SES's Investor Relations website at https://investors.ses.ai.