Financial Data and Key Metrics Changes - SES AI achieved a record revenue of $5.8 million in Q1 2025, indicating a strong start to the year [7][19] - The company expects full-year 2025 revenue guidance to be between $15 million to $25 million [20][49] - Gross margin for Q1 was reported at 79%, consistent with expectations, attributed to an asset-light business model [20][22] - The company concluded the quarter with a liquidity position of $240 million and no debt [22] Business Line Data and Key Metrics Changes - Revenue was primarily driven by contracts with automotive OEM customers for AI-enhanced lithium metal and lithium-ion batteries for EV applications [20] - The introduction of the Molecular Universe software and service platform aims to mass-produce material discovery and development services, which is the largest and most profitable revenue component [10][17] Market Data and Key Metrics Changes - The company is experiencing fierce global competition in the EV market and is adapting to new safety regulations [11] - There are currently over a dozen companies, including OEMs and battery companies, engaged in early access testing of the Molecular Universe platform [11][33] Company Strategy and Development Direction - SES AI is transitioning from a manufacturing-heavy model to a scalable software and service business model [16][17] - The launch of the Molecular Universe platform is expected to enhance the company's ability to deliver commercially practical solutions across all battery chemistries [15][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving revenue guidance and emphasized the importance of the current year as foundational for future growth [49] - The company is focused on maintaining high margins while controlling costs and deploying capital efficiently [22][23] Other Important Information - The Molecular Universe platform will be launched on April 29, 2025, with a live demonstration planned [15][18] - The company is exploring various pricing structures for the Molecular Universe, including subscription models and on-prem deployment options [40][42] Q&A Session Summary Question: Can you remind us of what cell type, the chemistry, and the capacity of your SK facility? - The Chungju facility has two lines for large pouch cells and smaller UAM cells, with the capability to add equipment for cylindrical and prismatic cells [26] Question: Can you remind us of the performance benefits from SES's 2170s with your improved electrolyte? - SES's 2170 cells can achieve over 6.5% mPOWER with stable performance, unlike competitors that struggle with high silicon content [28] Question: What types of customers are you engaged with outside of your two main partners? - The company is engaging with major battery companies, car manufacturers, and chemical and electrical companies, with over a dozen early access users [33] Question: What is the rationale for the authorization of the share buyback? - The share repurchase program is seen as an efficient capital allocation tool that will not impact liquidity [43][44] Question: Is revenue going to be mostly back-end loaded? - The company does not want to provide a quarterly cadence but is confident in achieving its revenue guidance based on the existing pipeline [48][49] Question: How will success of the Molecular Universe be measured going forward? - Success will be measured by the revenue generated from the Molecular Universe platform [51] Question: What are the expected gross margins medium and long-term? - The gross margin will depend on the mix of services and products, with software and services expected to have margins above 80% [58]

Financial Data and Key Metrics Changes - The company achieved a record revenue of $5.8 million in Q1 2025, positioning itself on track to meet its full-year revenue guidance of $15 million to $25 million [5][13] - The gross margin for Q1 was reported at 79%, consistent with expectations, attributed to an asset-light business model [13][14] - The company ended the quarter with a strong liquidity position of $240 million and no debt, expecting to exit 2025 with over $200 million in liquidity [14][15] Business Line Data and Key Metrics Changes - Revenue in Q1 was primarily driven by contracts with automotive OEM customers for AI-enhanced lithium metal and lithium-ion batteries for EV applications [13] - The company is expanding its service offerings through the launch of the Molecular Universe software and service platform, which aims to mass-produce material discovery and development services [10][12] Market Data and Key Metrics Changes - The company is experiencing fierce global competition in the EV market, with new safety regulations prompting the need for innovative solutions [7] - There are currently over a dozen companies, including OEMs and battery manufacturers, engaged in early access testing of the Molecular Universe platform [7][10] Company Strategy and Development Direction - The company is transitioning from a capital expenditure-heavy manufacturing model to a scalable software and service business model [11][12] - The launch of the Molecular Universe platform is expected to significantly enhance the company's revenue potential by providing solutions applicable across all battery chemistries and markets [10][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving revenue guidance for 2025 and emphasized the foundational nature of the current year for future growth [38] - The company aims to leverage its strong cash position to execute its vision and expand its commercial team to pursue greater opportunities [11][14] Other Important Information - The Molecular Universe platform will be launched on April 29, with a live demonstration planned to showcase its features and pricing structures [10][12] - The pricing structure for the Molecular Universe includes multiple tiers, offering both software subscriptions and on-premise deployment options for larger enterprises [31][32] Q&A Session Summary Question: Can you remind us of the cell type, chemistry, and capacity of your SK facility? - The Jeongju facility has two lines for large part cells and smaller UAM cells, with the capability to add equipment for cylindrical and prismatic cells [18] Question: What are the performance benefits from SCS's 2170s with your improved electrolyte? - The company's electrolyte enables stable performance for 2170 cells with high silicon content, achieving over 6.5 amp hours without gas issues [20] Question: Who are the potential customers for the Molecular Universe AI? - The initial version targets major battery companies, car manufacturers, and chemical and electrical companies, with over a dozen early access users already engaged [23] Question: What is the rationale for the share buyback authorization? - The share repurchase program is viewed as an efficient capital allocation tool, with no impact on the company's liquidity runway [33][34] Question: How will revenue ramp through the year? - The company expects stable revenue growth and is confident in achieving its guidance, with 2025 being a foundational year for significant growth in 2026 [38] Question: How will success of the Molecular Universe be measured? - Success will ultimately be measured by the revenue generated from the Molecular Universe platform [40] Question: What are the expected gross margins in the long term? - The gross margins will depend on the mix of services and products, with software and services expected to have margins above 80% [44]

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]

Cell Production OSES / A 117 on Al Al for Manufacturing Al for Safety Al for Science Letter to Our Shareholders Q2 2024 "Remembering that you are going to die is the best way I know to avoid the trap of thinking you have something to lose. You are already naked. There is no reason not to follow your heart." Steve Jobs Dear Shareholders, In this special letter, I want to talk about the seismic shift across any industry by generative AI and large language models (LLMs). AI represents a pivotal development of ...

Financial Performance - As of June 30, 2024, the company has not generated any revenue from sales, incurring net losses of $19.9 million for the three months ended June 30, 2024, compared to $12.9 million for the same period in 2023[94]. - For the six months ended June 30, 2024, the company incurred a net loss of $35.5 million, compared to a net loss of $29.2 million for the same period in 2023[116][117]. - Total cash outflow for the six months ended June 30, 2024, was $30.9 million, a significant decrease from $55.2 million in 2023[113]. Research and Development - Research and development expenses increased by 137% to $15.1 million for the three months ended June 30, 2024, compared to $6.3 million for the same period in 2023[97]. - The company has spent $30.9 million on gross research and development activities for the six months ended June 30, 2024, compared to $26.3 million for the same period in 2023[94]. - The company has signed joint development agreements (JDAs) with major automakers, including Hyundai, to further research and develop B-sample batteries, with plans to transition to C-sample in 2026 and commercial production in 2027[83][91]. Operating Expenses - Total operating expenses for the three months ended June 30, 2024, were $24.6 million, an increase of 28% from $19.3 million in the same period in 2023[95]. - General and administrative expenses decreased by 26% to $9.6 million for the three months ended June 30, 2024, compared to $12.9 million for the same period in 2023[102]. - The company expects to sustain substantial operating expenses without generating sufficient revenues for several years due to the capital-intensive nature of its business[111]. Cash and Investments - Cash and cash equivalents as of June 30, 2024, totaled $54.8 million, with investments in marketable debt and equity securities amounting to $239.9 million[110]. - Net cash used in operating activities was $31.1 million for the six months ended June 30, 2024, compared to $30.9 million for the same period in 2023[116][117]. - The company reported a net cash provided by investing activities of $0.5 million for the six months ended June 30, 2024, compared to a net cash used of $23.8 million in 2023[118]. Environmental Initiatives - The company is executing initiatives to improve environmental sustainability, including dry electrode technology and Li-Metal recycling[89]. Other Financial Metrics - Interest income for the three months ended June 30, 2024, was $4.0 million, slightly down from $4.1 million for the same period in 2023[105]. - The provision for income taxes for the six months ended June 30, 2024, increased to $0.3 million, compared to $0.5 million for the same period in 2023[109]. - Miscellaneous income for the six months ended June 30, 2024, was $0.3 million, a decrease from $0.4 million in 2023[108]. - Capital expenditures for the six months ended June 30, 2024, were $10.5 million, an increase from $7.8 million in 2023, primarily for lab machinery and equipment[120]. - The company has total contractual obligations of $56.4 million as of June 30, 2024, including purchase obligations and operating lease obligations[122]. Technology Development - The Avatar AI prediction accuracy improved from less than 60% in 2022 to 92% in 2023, with a target of reaching 95% by the end of 2024[87]. - The company is converting one of its EV A-sample lines to UAM cell production by the end of 2024, aiming to enhance profitability for UAM operators[85].