Capital Injection and Robust Margins Position Xos, Inc. for a Strong 2024
Xos, a leading electric truck manufacturer, reported a significant financial turnaround in Q1 2024, with a 180% year-over-year revenue growth to $13.2 million and industry-leading gross margins of 21.2%. The company completed the acquisition of ElectraMeccanica, boosting its cash position by approximately $50.2 million. Xos delivered 62 units in the quarter and launched the updated Xos Hub mobile charging solution. Despite the progress, Xos still reported a net loss of $11 million, which is an improvement compared to the $24.3 million net loss in the same period last year. The outlook for 2024 includes expected revenue between $66.7 million and $100.4 million, and unit deliveries ranging from 400 to 600 units.
- 180% year-over-year revenue growth, reaching $13.2 million.
- Achieved industry-leading gross margins of 21.2%.
- Acquisition of ElectraMeccanica added approximately $50.2 million to cash position.
- Delivered 62 units, contributing to strong revenue figures.
- 2024 revenue outlook projected between $66.7 million and $100.4 million.
- Expected unit deliveries in 2024 range from 400 to 600 units.
- Reported a net loss of $11 million for Q1 2024.
- Loss from operations stands at $10.2 million.
- Inventories slightly decreased from $37.8 million at the end of 2023 to $36.6 million.
- Cash and cash equivalents, including restricted cash, only $47.3 million by the end of Q1 2024.
Insights
The acquisition of ElectraMeccanica added
However, the net loss of
The acquisition of ElectraMeccanica not only bolsters Xos' financial position but also potentially expands its market share, given ElectraMeccanica’s existing customer base and technological assets. The revenue forecast of
The unit delivery forecast of 400 to 600 units demonstrates Xos' confidence in meeting increasing demand, although achieving the higher end of this range will be important for maintaining investor confidence and ensuring economies of scale.
The launch of the updated Xos Hub mobile charging solution is a significant development. As EV adoption grows, the infrastructure to support these vehicles becomes crucial. Mobile charging solutions are especially valuable for fleet operators who need flexible and scalable charging options. This product diversification is a strategic move that could position Xos not just as a vehicle manufacturer but as a comprehensive EV solutions provider.
Furthermore, the powertrain sales to Winnebago and a large bus OEM highlight Xos’ capabilities in producing versatile and reliable EV components. This could lead to further partnerships and product integrations, enhancing Xos' market penetration and revenue streams.
Improved cash position with
Delivered
Achieved industry-leading
LOS ANGELES, CA / ACCESSWIRE / May 15, 2024 / Xos, Inc. (NASDAQ:XOS) ("Xos" or the "Company"), a leading electric truck manufacturer and fleet services provider, today reported financial results for the first quarter ended March 31, 2024.
First Quarter 2024 Highlights:
- Completed acquisition of ElectraMeccanica, adding approximately
$50.2 million (excluding certain costs paid at closing) to Xos' cash balance - Launched the updated Xos Hub mobile charging solution
- Delivered 62 units and generated revenues of
$13.2 million - Achieved gross margins of
21.2%
Dakota Semler, Chief Executive Officer of Xos, commented, "The
First Quarter 2024 Financial Highlights
(in millions) | 31 Mar 2024 | 31 Dec 2023 | ||||||
Inventories | $ | 36.6 | $ | 37.8 | ||||
Cash and cash equivalents and restricted cash(1) | $ | 47.3 | $ | 11.6 | ||||
| Three Months Ended | ||||||||
(in millions) | 31 Mar 2024 | 31 Mar 2023 | ||||||
Revenues | $ | 13.2 | $ | 4.7 | ||||
Gross profit (loss) | $ | 2.8 | $ | (0.9 | ) | |||
Non-GAAP gross profit (loss) (2) | $ | 1.7 | $ | (1.8 | ) | |||
Net loss | $ | (11.0 | ) | $ | (24.3 | ) | ||
Loss from operations | $ | (10.2 | ) | $ | (20.0 | ) | ||
Non-GAAP operating loss(2) | $ | (9.3 | ) | $ | (18.9 | ) | ||
(1) Includes cash and cash equivalents and restricted cash (for March 31, 2024).
(2) For further information about how we calculate Non-GAAP gross profit (loss) and Non-GAAP operating loss, see below for the reconciliations of GAAP to non-GAAP financial measures provided in the tables included in this release.
2024 Outlook:
Xos' outlook for 2024 is as follows:
| Revenue | ||
| Non-GAAP operating loss | ||
| Unit Deliveries (1) | 400 to 600 units |
(1) Unit deliveries forecast includes stepvans and our powertrain and Xos Hub products.
Liana Pogosyan, Acting Chief Financial Officer of Xos, added, "Xos' strong capital position and healthy gross margins demonstrate the health of our core business. With the launch of new products, like our updated Hub and recent powertrain sales to Winnebago and a large bus OEM, we are on a path to build the first self-sustaining commercial EV company in the U.S."
The outlook provided above is based on management beliefs and expectations as of the date of this press release. The results are based on assumptions that are believed to be reasonable as of this date, but may be materially affected by many factors, as discussed below in "Cautionary Statement Regarding Forward-Looking Statements." Actual results may vary from the outlook above and the variations may be material. The Company undertakes no intent or obligation to publicly update or revise any of these projections, whether as a result of new information, future events or otherwise, except as required by law.
Conference Call and Webcast Details
| Date / Time: | Wednesday, May 15, 2024, at 4:30 p.m. EDT / 1:30 p.m. PDT | |
| Webcast: | https://viavid.webcasts.com/starthere.jsp?ei=1667727&tp_key=3b0fe355e3 | |
| U.S. Toll-Free Dial In: | 1-833-816-1411 | |
| International Dial In: | 1-412-317-0507 | |
| Conference ID: | 10188592 |
To access the call, please dial in approximately ten minutes before the start of the call.
For those unable to participate in the live call, an audio replay will be available following the call through midnight Wednesday, May 29, 2024. To access the replay, please call 1-844-512-2921 or 1-412-317-6671 (International) and enter access code 10188592. A replay of the webcast will also be archived shortly after the call and can be accessed on the Company's website.
About Xos, Inc.
Xos is a leading technology company, electric truck manufacturer, and fleet services provider for battery-electric fleets. Xos vehicles and fleet management software are purpose-built for medium- and heavy-duty commercial vehicles that travel on last-mile, back-to-base routes. The company leverages its proprietary technologies to provide commercial fleets with battery-electric vehicles that are easier to maintain and more cost-efficient on a total cost of ownership (TCO) basis than their internal combustion engine counterparts. For more information, please visit www.xostrucks.com.
Non-GAAP Financial Measures
The financial information in this press release has been presented in accordance with United States generally accepted accounting principles ("GAAP") as well as on a non-GAAP basis to supplement Xos' condensed consolidated financial results. Xos' non-GAAP financial measures include operating cash flow less CapEx (Free Cash Flow), non-GAAP operating loss and non-GAAP gross profit (loss), which are defined below.
"Operating cash flow less CapEx (Free Cash Flow)" is defined as net cash used in operating activities minus purchases of property and equipment.
"Non-GAAP operating loss" is defined as loss from operations adjusted for stock-based compensation, inventory write-downs and physical inventory and other adjustments.
"Non-GAAP gross profit (loss)" is defined as gross profit (loss) minus inventory write-downs and physical inventory and other adjustments.
Xos believes that the use of operating cash flow less CapEx (Free Cash Flow), non-GAAP operating loss and non-GAAP gross profit (loss) reflects additional means of evaluating Xos' ongoing operating results and trends. The presentation of these measures should not be construed as an inference that Xos' future results will be unaffected by unusual or non-recurring items. It is important to note Xos' computation of operating cash flow less CapEx (Free Cash Flow), non-GAAP operating loss and non-GAAP gross profit (loss) may not be comparable to other similarly titled measures computed by other companies, because not all companies may calculate operating cash flow less CapEx (Free Cash Flow), non-GAAP operating loss and non-GAAP gross profit (loss) in the same fashion. Non-GAAP information is not prepared under a comprehensive set of accounting rules and therefore, should only be read in conjunction with financial information reported under GAAP when understanding Xos' operating performance. A reconciliation between historical GAAP and non-GAAP financial information is provided in this press release.
This release includes a forward-looking outlook for non-GAAP operating loss. The Company is not able to provide, without unreasonable effort, a reconciliation of the outlook for non-GAAP operating loss because the Company does not currently have sufficient data to accurately estimate the variables and individual adjustments included in the most directly comparable GAAP measure that would be necessary for such reconciliations, including (a) stock-based compensation, (b) total operating expenses and (c) other nonrecurring expenses that cannot reasonably be estimated in advance. These adjustments are inherently variable and uncertain and depend on various factors that are beyond Xos' control and as a result Xos is also unable to predict their probable significance. Therefore, because management cannot estimate on a forward-looking basis without unreasonable effort the impact these variables and individual adjustments will have on its reported results in accordance with GAAP, it is unable to provide a reconciliation of the non-GAAP measures included in its outlook for 2024.
Cautionary Statement Regarding Forward-Looking Statements
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. These forward-looking statements include, but are not limited to, statements regarding projected financial and performance information for 2024; expectations and timing related to product deliveries and customer demand; sufficiency of existing cash reserves; customer acquisition and order metrics; ability to access additional capital and Xos' long-term strategy and future growth. These forward-looking statements may be identified by the words "believe," "plan," "project," "potential," "seem," "seek," "expect," "anticipate," "estimate," "intend," "strategy," "future," "target," "opportunity," "plan," "may," "could," "should," "will," "would," "will be," "will continue," "will likely result," and similar expressions and any other statements that predict or indicate future events or trends or that are not statements of historical matters, although not all forward-looking statements contain such identifying words. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: (i) Xos' ability to implement business plans, forecasts, and other expectations, and identify and realize additional opportunities, (ii) Xos' limited operating history, (iii) cost increases and delays in production due to supply chain shortages in the components needed for the production of Xos' vehicle chassis and battery system, (iv) Xos' ability to meet production milestones and fulfill backlog orders, (v) changes in the industries in which Xos operates, (vi) variations in operating performance across competitors, (vii) changes in laws and regulations affecting Xos' business, (viii) Xos' ability to implement its business plan or meet or exceed its financial projections, (ix) Xos' ability to retain key personnel and hire additional personnel, particularly in light of current and potential labor shortages, (x) the risk of downturns and a changing regulatory landscape in the highly competitive electric vehicle industry, (xi) Xos' ability to service its indebtedness, (xii) macroeconomic and political conditions, and (xiii) the outcome of any legal proceedings that may be instituted against Xos. All forward-looking statements included in this press release are expressly qualified in their entirety by, and you should carefully consider, the foregoing factors and the other risks and uncertainties described under the heading "Risk Factors" included in Xos' Annual Report on Form 10-K for the year ended December 31, 2023 filed with the U.S. Securities and Exchange Commission (the "SEC") on March 29, 2024 and Xos' other filings with the SEC, copies of which may be obtained by visiting Xos' Investors Relations website at https://investors.xostrucks.com/ or the SEC's website at www.sec.gov. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Xos assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. Xos does not give any assurance that it will achieve its expectations.
Contacts
Xos Investor Relations
Xos Media Relations
Xos, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
Unaudited
| March 31, 2024 | December 31, 2023 | |||||||
(in thousands, except par value) | ||||||||
Assets | ||||||||
Cash and cash equivalents | $ | 46,168 | $ | 11,640 | ||||
Restricted cash | 1,115 | - | ||||||
Accounts receivable, net | 20,320 | 15,142 | ||||||
Inventories | 36,621 | 37,843 | ||||||
Prepaid expenses and other current assets | 8,577 | 7,070 | ||||||
Total current assets | 112,801 | 71,695 | ||||||
Property and equipment, net | 13,638 | 14,660 | ||||||
Operating lease right-of-use assets, net | 4,587 | 4,991 | ||||||
Other non-current assets | 3,954 | 2,338 | ||||||
Total assets | $ | 134,980 | $ | 93,684 | ||||
Liabilities and Stockholders' Equity | ||||||||
Accounts payable | $ | 2,272 | $ | 2,756 | ||||
Other current liabilities | 20,033 | 16,817 | ||||||
Total current liabilities | 22,305 | 19,573 | ||||||
Earn-out shares liability | 42 | 39 | ||||||
Common stock warrant liability | 563 | 395 | ||||||
Convertible debt, non-current | 19,932 | 19,920 | ||||||
Other non-current liabilities | 24,332 | 8,561 | ||||||
Total liabilities | 67,174 | 48,488 | ||||||
Stockholders' Equity | ||||||||
Common Stock 7,750 and 5,941 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively | 1 | 1 | ||||||
Preferred Stock 0 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively | - | - | ||||||
Additional paid-in capital | 232,069 | 198,456 | ||||||
Accumulated deficit | (164,264 | ) | (153,261 | ) | ||||
Total stockholders' equity | 67,806 | 45,196 | ||||||
Total liabilities and stockholders' equity | $ | 134,980 | $ | 93,684 | ||||
Xos, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations and Comprehensive Loss
(Unaudited)
| Three Months Ended March 31, | ||||||||
(in thousands, except per share amounts) | 2024 | 2023 | ||||||
Revenues | $ | 13,162 | $ | 4,697 | ||||
Cost of goods sold | 10,374 | 5,574 | ||||||
Gross profit (loss) | 2,788 | (877 | ) | |||||
Operating expenses | ||||||||
General and administrative | 8,959 | 11,599 | ||||||
Research and development | 3,074 | 5,749 | ||||||
Sales and marketing | 998 | 1,804 | ||||||
Total operating expenses | 13,031 | 19,152 | ||||||
Loss from operations | (10,243 | ) | (20,029 | ) | ||||
Other expense, net | (584 | ) | (4,151 | ) | ||||
Change in fair value of derivative instruments | (168 | ) | (97 | ) | ||||
Change in fair value of earn-out shares liability | (3 | ) | (52 | ) | ||||
Loss before provision for income taxes | (10,998 | ) | (24,329 | ) | ||||
Provision for income taxes | 5 | 2 | ||||||
Net loss | $ | (11,003 | ) | $ | (24,331 | ) | ||
Other comprehensive loss | ||||||||
Marketable debt securities, available-for-sale | ||||||||
Change in net unrealized gain, net of tax of | - | 402 | ||||||
Total comprehensive loss | $ | (11,003 | ) | $ | (23,929 | ) | ||
Net loss per share (1) | ||||||||
Basic | $ | (1.80 | ) | $ | (4.32 | ) | ||
Diluted | $ | (1.80 | ) | $ | (4.32 | ) | ||
Weighted average shares outstanding (1) | ||||||||
Basic | 6,108 | 5,628 | ||||||
Diluted | 6,108 | 5,628 | ||||||
(1) Shares for the three months ended March 31, 2023 have been retrospectively adjusted for the 1-for-30 reverse stock split that occurred on December 6, 2023.
Reconciliation of Operating Cash Flow less CapEx (Free Cash Flow), Non-GAAP Operating Loss and Non-GAAP Gross Profit (Loss):
Operating Cash Flow less CapEx (Free Cash Flow):
| Three Months Ended March 31, | Three Months Ended December 31, | |||||||||||
(in thousands) | 2024 | 2023 | 2023 | |||||||||
Net cash used in operating activities | $ | (14,589 | ) | $ | (15,326 | ) | $ | (631 | ) | |||
Purchase of property and equipment | (30 | ) | (253 | ) | (221 | ) | ||||||
Free-Cash Flow | $ | (14,619 | ) | $ | (15,579 | ) | $ | (852 | ) | |||
Non-GAAP Operating Loss:
| Three Months Ended March 31, | Three Months Ended December 31, | |||||||||||
(in thousands) | 2024 | 2023 | 2023 | |||||||||
Loss from operations | $ | (10,243 | ) | $ | (20,029 | ) | $ | (11,828 | ) | |||
Stock-based compensation | 2,006 | 2,012 | 1,598 | |||||||||
Inventory reserves | (803 | ) | (471 | ) | (721 | ) | ||||||
Physical inventory and other adjustments | (298 | ) | (453 | ) | 25 | |||||||
Non-GAAP Operating Loss | $ | (9,338 | ) | $ | (18,941 | ) | $ | (10,926 | ) | |||
Non-GAAP Gross Profit (Loss):
| Three Months Ended March 31, | Three Months Ended December 31, | |||||||||||
(in thousands) | 2024 | 2023 | 2023 | |||||||||
Gross profit (loss) | $ | 2,788 | $ | (877 | ) | $ | 1,327 | |||||
Inventory reserves | (803 | ) | (471 | ) | (721 | ) | ||||||
Physical inventory and other adjustments | (298 | ) | (453 | ) | 25 | |||||||
Non-GAAP Gross Profit (Loss) | $ | 1,687 | $ | (1,801 | ) | $ | 631 | |||||
SOURCE: Xos, Inc.
View the original press release on accesswire.com
FAQ
What financial improvements did Xos report in Q1 2024?
How much did Xos' acquisition of ElectraMeccanica add to its cash position?
What was Xos' net loss for Q1 2024?
How many units did Xos deliver in Q1 2024?
What is Xos' revenue outlook for 2024?
What is the expected range of unit deliveries for Xos in 2024?
What new product did Xos launch in Q1 2024?
