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Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Num ...

SES AI Corporation (NYSE:SES) Q1 2025 Earnings Conference Call April 25, 2025 9:00 AM ET Company Participants Kyle Pilkington - Chief Legal Officer Qichao Hu - Founder and Chief Executive Officer Jing Nealis - Chief Financial Officer Conference Call Participants Mark Shooter - William Blair Winnie Dong - Deutsche Bank John Roy - Water Tower Research Operator Hello everyone and welcome to the SES AI First Quarter 2025 Earnings Release and Call. My name is Nadia and I'll be coordinating the call today. [Opera ...

SES AI (SES) Q1 2025 Earnings Call April 25, 2025 09:00 AM ET Company Participants Kyle Pilkington - Chief Legal OfficerQichao Hu - Founder, Chairman & CEOJing Nealis - Chief Financial OfficerMark Shooter - Sr. Associate - Energy & Sustainability Equity ResearchWinnie Dong - Director, Equity ResearchJohn Roy - Managing Director Operator Hello, everyone, and welcome to the SESAI First Quarter twenty twenty five Earnings Release and Call. My name is Nadia, and I'll be coordinating the call today. I will now h ...

Revenue Results - SES AI Corporation reported preliminary unaudited revenue results for Q1 2025, with estimates subject to finalization[4] - The financial information provided is preliminary and based on management's estimates as of the press release date[5] Financial Reporting Standards - The company emphasizes that preliminary estimates should not replace full financial statements prepared in accordance with GAAP[5]

Revenue and Financial Performance - Revenue for the year ended December 31, 2024 was $2.0 million, primarily from service-related contracts with OEMs [236]. - Total revenue for 2024 was $2,040,000, compared to no revenue in 2023 [293]. - Gross profit for 2024 was $1,288,000, with a cost of revenues of $752,000 [293]. - The company incurred net losses of $100.2 million and $53.4 million for the years ended December 31, 2024 and 2023, respectively [235]. - Net loss for 2024 was $100,185,000, compared to a net loss of $53,400,000 in 2023, indicating an increase in losses of 87.5% [293]. - The company reported a total comprehensive loss of $100,805,000 in 2024, compared to $53,762,000 in 2023 [293]. - Interest income for the year ended December 31, 2024 was $15.0 million, a decrease of $1.7 million from $16.7 million in 2023 [249]. Expenses - Cost of revenue for the year ended December 31, 2024 was $0.8 million, mainly attributable to personnel costs [238]. - Research and development expenses increased by $41.5 million, or 135.2%, to $72.1 million for the year ended December 31, 2024, compared to $30.7 million in 2023 [241]. - General and administrative expenses decreased by $9.1 million, or 19.1%, to $38.4 million for the year ended December 31, 2024, compared to $47.5 million in 2023 [247]. - Total share-based compensation expense for 2024 was $19.935 million, down from $20.649 million in 2023, a decrease of 3.4% [422]. - The company recorded stock-based compensation expense of $19.9 million in 2024, contributing to the net loss reported [258]. Cash and Investments - As of December 31, 2024, the company had total cash and cash equivalents of $128.8 million and short-term investments in marketable securities of $133.7 million [254]. - Cash provided by investing activities was $108.2 million for the year ended December 31, 2024, compared to a cash outflow of $32.7 million for 2023 [261]. - Net cash used in operating activities was $66.1 million for the year ended December 31, 2024, primarily due to a net loss of $100.2 million [258]. - The company had received but not yet earned 12 billion Korean won (approximately $8.1 million) as of December 31, 2024, disclosed as a noncurrent liability [387]. - The company had cash and cash equivalents of $128.8 million as of December 31, 2024, an increase from $85.7 million as of December 31, 2023 [378]. Liabilities and Obligations - Total liabilities rose to $51,475,000 in 2024 from $47,860,000 in 2023, an increase of 5% [291]. - The total contractual obligations as of December 31, 2024, amount to $46.5 million, with $33.6 million in purchase obligations and $12.9 million in operating lease obligations [264]. - The total future minimum lease payments under existing operating leases as of December 31, 2024, amounted to $10.562 million after imputed interest [392]. Research and Development - The company is focused on scaling up manufacturing processes to achieve commercialization in EVs and UAMs at a global scale [233]. - The company expects research and development expenses to remain consistent in 2025 compared to 2024 [241]. - Research and development credits totaled $8.575 million for the year ended December 31, 2024, compared to $23.065 million for the year ended December 31, 2023 [377]. - Research and development costs are expensed as incurred, including employee compensation, materials, and consultant payments [356]. Stock and Equity - As of December 31, 2024, the Company had 317,676,034 shares of Class A common stock and 43,881,251 shares of Class B common stock issued and outstanding [406]. - The total common stock available for future issuance as of December 31, 2024, is 76,795,708 shares [416]. - The SES AI Corporation 2021 Plan has 37,263,345 shares available for future issuance as of December 31, 2024 [419]. - The number of outstanding RSUs increased to 13,282,923 by December 31, 2024, from 6,359,474 at the end of 2023, a growth of 108.5% [423]. Foreign Currency and Risk Management - The company is exposed to foreign currency risks, particularly in China and South Korea, but engages in minimal transactions outside of its functional currency [275]. - The company has not hedged its foreign currency exposure but may consider doing so in the future [275]. - A 100 basis point increase in U.S. interest rates would decrease the fair value of short-term investments by approximately $0.5 million [274]. Compliance and Governance - The company’s financial statements are presented in conformity with U.S. generally accepted accounting principles [280]. - The company’s management is responsible for the financial statements, while the independent auditor provides an opinion based on the audit [281]. - The company’s audit included evaluating the accounting principles used and significant estimates made by management [283].

Financial Data and Key Metrics Changes - SES AI reported Q4 2024 revenue of $2 million, marking its first revenue milestone and a transition to a revenue-generating business [21] - The company achieved a gross margin of 63%, indicating a strong value proposition for its technology [22] - Operating expenses for Q4 were $30.4 million, primarily driven by R&D and administrative costs [22] - The liquidity position at the end of the quarter was $262.5 million, ensuring the ability to fund ongoing projects [23] - For the full year 2024, total cash usage was $78.3 million, below the previous guidance of $80 million to $95 million [23] Business Line Data and Key Metrics Changes - SES AI signed contracts totaling up to $10 million for developing AI-enhanced lithium-metal and lithium-ion batteries for EVs with two automotive OEM partners [9] - The company is expanding into Battery Energy Storage Systems (BESS), signing an MOU with AISPEX for up to $45 million [13] Market Data and Key Metrics Changes - The company is focusing on multiple markets, including EVs, drones, robotics, and BESS, which broadens its addressable market significantly [33] - The revenue outlook for 2025 is projected to be between $15 million and $25 million, driven by expanding partnerships and commercialization efforts [26] Company Strategy and Development Direction - SES AI is transitioning from a CapEx-heavy model to a CapEx-light model, focusing on selling AI models and core battery materials [18] - The company aims to leverage its AI technology and electrolytes to generate revenue earlier than anticipated and tap into adjacent verticals [18] - The strategy includes a focus on contract manufacturing to achieve high margins and expand its market presence [37] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, emphasizing the importance of AI in driving growth and innovation [17] - The company is well-positioned for continued growth and disciplined investment in 2025, with a focus on financial discipline and strategic investments [27] Other Important Information - SES AI has made significant advancements in its AI models, enhancing battery performance and safety through improved data training [76] - The company is developing a subscription model for its AI solutions, which could provide ongoing revenue streams [47] Q&A Session Summary Question: What led to the shift in strategy? - The shift was motivated by the realization that the technology could be applied to multiple battery chemistries, expanding the addressable market significantly [33] Question: Can you provide details on the contract manufacturing economics? - The gross margin of 63% in Q4 was a mix of AI models and actual sales, with future margins expected to evolve based on volume and application [36] Question: How do you see the revenue opportunity for software versus hardware? - The company aims to transition to a high-margin software business while initially using hardware as a hook to attract customers [44] Question: What is the prognosis for selling high-silicon cells into automotive? - Both high-silicon and lithium-metal cells are being developed in parallel, with the company addressing OEMs that previously were not targeted due to form factor limitations [80]

SES AI (SES) Q4 2024 Earnings Call February 25, 2025 05:00 PM ET Company Participants Kyle Pilkington - Chief Legal OfficerQichao Hu - Founder, Chairman & CEOJing Nealis - Chief Financial OfficerMark Shooter - Sr. Associate - Energy & Sustainability Equity Research Conference Call Participants Winnie Dong - AnalystBrian Gordon - Senior Research Analyst Operator Good afternoon. Thank you for attending today's SCSAI Fourth Quarter twenty twenty four Business and Financial Results. My name is Jaylen. I'll be y ...

Financial Results - SES AI Corporation reported preliminary unaudited revenue results for Q4 2024, with figures subject to finalization[4] - The financial information provided is preliminary and based on management's estimates as of the press release date[5] - The company emphasizes that preliminary estimates should not replace full financial statements prepared in accordance with GAAP[5]

Financial Data and Key Metrics Changes - In Q3 2024, the company's GAAP operating expenses were $34.2 million, with cash used in operations amounting to $22.7 million and capital expenditures at $1.5 million [18] - The company ended Q3 with $274 million in liquidity and updated its full-year 2024 guidance, expecting total cash usage to be between $80 million to $95 million, down from a previous estimate of $100 million to $120 million [19] Business Line Data and Key Metrics Changes - The company reported early commercial revenue in urban air mobility (UAM) and drones, having completed site acceptance tests for UAM lines and signed cell supply agreements, including with SoftBank [6][7] - The B-sample lithium metal cells successfully passed the GB38031 2020 safety tests, marking a significant milestone towards commercialization for electric vehicles (EV) [8][15] Market Data and Key Metrics Changes - The UAM market is growing rapidly, particularly in China, with the company tailoring its new cell product specifically for UAM applications, which includes both passenger and large cargo drones [38] - The lithium metal cells provided by the company offer a power density of 400 watts per kg, significantly higher than the 250 watts per kg of lithium-ion cells, enhancing flight duration and payload capacity [40] Company Strategy and Development Direction - The company is focused on the commercialization of next-generation lithium metal batteries and AI solutions, with an all-in strategy on AI to enhance battery material discovery and manufacturing processes [5][10] - The establishment of an electrolyte foundry and partnerships with NVIDIA are part of the strategy to leverage advanced computing for battery material development [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the potential of AI to transform the battery industry, with expectations of entering a revenue pipeline from AI solutions in the near future [22][16] - The company anticipates strong interest from existing and new partners for its AI solutions, with contracts expected to be signed soon [34] Other Important Information - The company has achieved a 95% prediction accuracy with its AI for safety, and when integrated with AI for manufacturing, it can achieve 100% accuracy [14][16] - The company is also focused on reducing general and administrative spending while investing in talent and GPU resources to support its AI initiatives [30] Q&A Session Summary Question: What is the revenue mechanism for AI solutions? - The revenue model will include a combination of subscription fees for using the AI model and product revenue from new electrolyte products [22] Question: How will the company grow its customer base for AI solutions? - The company is working with three OEMs as initial customers and has been approached by top electrolyte and battery manufacturers for potential projects [25] Question: What is the revenue potential associated with UAM customers? - While specific details are confidential, the project with SoftBank will kick off in November and continue into the first half of next year, with potential revenue expected throughout 2025 [32] Question: How is the company addressing cycle life requirements for EV OEMs? - The company is working on new molecules that improve cycle life by about 20% and is also optimizing charging protocols using AI tools [42]