Aeva Technologies, Inc. — Q1 2024 Form 10-Q
Reporting period: Three months ended March 31, 2024. Financial figures are unaudited; dollar amounts below are in millions unless stated otherwise. Aeva develops FMCW-based 4D LiDAR and related software. It describes itself as a development-stage company whose revenue primarily comes from prototype sales and engineering services.
Key financial metrics
| Metric | Q1 2024 | Q1 2023 / comparison |
|---|---|---|
| Revenue | $2.1 | $1.1; up 84% |
| Cost of revenue | $3.5 | $2.5; up 38% |
| Gross loss / gross margin | $(1.4) / (66%) | $(1.4) / (120%) |
| Operating expenses | $36.0 | $35.9 |
| Operating loss | $(37.3) | $(37.3) |
| Net loss | $(35.3) | $(35.2) |
| Net loss per share | $(0.67) | $(0.80) |
| Cash used in operating activities | $(31.0) | $(36.0) |
| Cash and cash equivalents | $29.6 at March 31 | $38.5 at December 31, 2023 |
| Marketable securities | $159.7 at March 31 | $182.5 at December 31, 2023 |
Cash, cash equivalents and marketable securities totaled $189.3 million at quarter-end, down from $221.0 million at December 31, 2023. The company reported $26.6 million in total liabilities, including lease and warrant liabilities, and no borrowings are identified in the provided filing text. Current assets were $197.4 million and current liabilities $16.6 million. Interest income was $2.5 million; income tax provision was zero.
Material changes versus the prior-year quarter
- Revenue rose by $1.0 million, mainly from $0.8 million more prototype-unit sales and $0.2 million more engineering services; lower average prototype selling prices partly offset the increase.
- Cost of revenue rose by $1.0 million as unit sales and engineering-service costs increased. Gross loss was roughly unchanged, though gross margin improved as a percentage of revenue.
- Operating expenses were nearly flat: research and development decreased 2%, general and administrative increased 7%, and selling and marketing decreased 3%.
- Net loss was broadly flat. Operating cash use improved by $5.1 million, while investment maturities and purchases drove $22.0 million of net investing cash inflow.
- Basic and diluted loss per share improved to $0.67 from $0.80; weighted-average shares increased to 52.7 million from 43.9 million. The filing retrospectively adjusts share data for a 1-for-5 reverse stock split effected March 18, 2024.
Outlook, risks and unusual items
- Management expects operating expenses in 2024 to be similar to 2023 or slightly higher. It expects continued operating losses and says existing liquidity should fund operating and capital expenditure needs for at least 12 months from issuance of the statements.
- The company says it may need additional capital or to use its standby equity facility unless product revenue becomes sufficient to cover operating costs, working capital and capital expenditures.
- The facility permits, but does not require, up to $125 million of preferred-stock sales through November 2026. Advances are subject to conditions, including a qualifying new OEM program award with at least 50,000 units. The preferred stock carries a 7% annual dividend and senior liquidation preference; availability is therefore conditional and financing may be dilutive or costly.
- Revenue concentration is high: two customers generated 39% and 36% of Q1 revenue. Three customers represented 44%, 15% and 12% of receivables at quarter-end.
- Key risks include commercialization and customer-program delays, ability to meet production costs and margins, competition, and potential need for further financing. The company reported a $0.5 million inventory impairment and $5.3 million of stock-based compensation in the quarter.
- A putative Delaware class action filed March 7, 2024 names former InterPrivate Acquisition Corp. parties, not Aeva or its current directors or officers. Aeva disclosed certain indemnification rights granted to former IPV directors and officers in connection with the merger; the filing does not quantify any potential exposure.
- Management reported effective disclosure controls and no material change in internal control over financial reporting. It reported no material changes to risk factors from its 2023 Form 10-K.
Important facts for investors to verify
- Whether prototype and engineering revenue converts into durable production programs, and the timing and volume of any OEM awards.
- Whether gross margins improve as volumes scale and manufacturing costs decline.
- Cash burn and liquidity runway, including the timing and terms of any future capital raise or facility draw.
- Customer concentration, receivable collection and customer-program dependence.
- The conditions, dividend and potential dilution associated with the preferred-stock facility, and any material developments in the disclosed litigation or indemnification matters.