Aeva Technologies, Inc. — Q2 2022 Form 10-Q
Reporting period: Quarter and six months ended June 30, 2022; unaudited. Aeva develops FMCW LiDAR-on-chip sensing technology and related software. The company describes itself as development-stage; customer sales primarily comprise prototype units and engineering services.
Financial performance
Amounts below are in millions of dollars except per-share data and percentages.
| Metric | Q2 2022 | Q2 2021 | Six months 2022 | Six months 2021 |
|---|---|---|---|---|
| Revenue | $1.49 | $2.60 | $2.63 | $2.91 |
| Gross profit (margin) | $0.50 (33.6%) | $1.18 (45.3%) | $0.26 (10.0%) | $1.31 (44.9%) |
| Operating expenses | $36.19 | $25.92 | $70.02 | $46.17 |
| Operating loss | $(35.69) | $(24.74) | $(69.76) | $(44.86) |
| Net loss | $(34.97) | $(24.07) | $(68.13) | $(43.53) |
| Net loss per share | $(0.16) | $(0.11) | $(0.31) | $(0.23) |
- Q2 product revenue rose 93% to $0.47 million, while professional-services revenue fell 56% to $1.03 million. For the first half, product revenue increased 27% to $0.68 million and services revenue declined 18% to $1.95 million.
- Research and development spending increased 38% in Q2 and 70% in the first half, largely reflecting higher payroll and product-development investment. Selling and marketing expenses also rose substantially; G&A increased 30% in Q2 but 4% for the half-year.
- Cash used in operations was $57.97 million in the first half, versus $33.99 million a year earlier. Capital spending was $3.87 million. Investing activities provided $74.38 million, primarily from net maturities of marketable securities; financing activities used $0.17 million.
- Cash and cash equivalents were $83.05 million and marketable securities were $295.88 million at June 30, totaling $378.92 million, down from $445.01 million at December 31, 2021. Accumulated deficit was $231.09 million.
- Total liabilities were $18.76 million, including $8.92 million of operating lease liabilities and a $0.27 million warrant liability. The filing reports no borrowings or other interest-bearing debt. Current assets were $393.43 million and current liabilities $12.49 million.
Changes, outlook and risks
- Revenue declined 43% in Q2 and 10% in the first half year over year; gross margins also contracted, particularly in the first half. Management attributed weaker services revenue to customer project timing and higher product costs partly to inventory impairment ($0.1 million in Q2; $0.8 million in the first half).
- Management expects continued operating losses as it invests in product development and says existing cash and marketable securities should fund operating and capital requirements for at least 12 months from the issuance of the financial statements. No specific revenue, earnings or margin guidance is provided.
- Management says revenue and gross margins may fluctuate as customer programs move from research and development toward commercialization. Profitability depends on converting customer relationships to production, meeting volume and cost targets, and achieving expected margins.
- Risks highlighted include commercialization and customer-program delays, competition and pricing pressure, manufacturing scale-up, reliance on customers and external partners, and uncertainty around COVID-19 and supply-chain disruption. Two customers represented 69% of Q2 revenue and 74% of first-half revenue; three customers represented 67% of receivables at period-end.
- Available-for-sale securities generated an unrealized loss of $3.41 million for the first half, recorded in comprehensive loss. Stock-based compensation was $12.22 million in the first half. The filing reports no material changes to risk factors since the 2021 Form 10-K, no material off-balance-sheet arrangements, and ordinary-course legal matters without a quantified material contingency.
Investor verification points
- Confirm customer concentration, project milestones, and whether development programs convert into production orders and recurring product revenue.
- Track operating cash burn, marketable-security balances and maturities, capital spending, and the assumptions underlying management’s stated liquidity runway.
- Assess the causes and persistence of gross-margin pressure, including prototype economics, inventory impairments, and manufacturing cost targets.
- Review growth in research and development costs, hiring, and stock-based compensation against commercialization progress.
- Verify exposure to customer or supplier concentration, supply-chain disruption, and any developments in legal, intellectual-property, or other contingencies.