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REE Automotive .(REE) - 2024 Q3 - Quarterly Report
REEREE Automotive .(REE)2024-12-17 12:36
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Financial Performance - Liquidity improved by 47% to 88.8millionincashandcashequivalentsattheendofQ32024,comparedto88.8 million in cash and cash equivalents at the end of Q3 2024, compared to 60.5 million at the end of Q2 2024[5] - The net loss for Q3 2024 was 38.5million,anincreasefrom38.5 million, an increase from 10.8 million in Q2 2024 and 24.1millioninQ32023,primarilyduetonon−cashlosses[9]−FortheninemonthsendedSeptember30,2024,REEAutomotivereportedanetlossof24.1 million in Q3 2023, primarily due to non-cash losses[9] - For the nine months ended September 30, 2024, REE Automotive reported a net loss of 74,458,000, an improvement from a net loss of 78,975,000forthesameperiodin2023,representingadecreaseofapproximately6.478,975,000 for the same period in 2023, representing a decrease of approximately 6.4%[12] - The company generated net cash used in operating activities of 54,508,000 for the nine months ended September 30, 2024, compared to 66,189,000forthesameperiodin2023,indicatingareductionofabout17.766,189,000 for the same period in 2023, indicating a reduction of about 17.7%[12] - REE Automotive's cash, cash equivalents, and restricted cash at the end of the period increased to 91,294,000 from 37,766,000attheendofSeptember30,2023,reflectingasignificantincreaseofapproximately141.537,766,000 at the end of September 30, 2023, reflecting a significant increase of approximately 141.5%[12] - Adjusted EBITDA for the nine months ended September 30, 2024, was reported at (45,015,000), an improvement from (66,303,000)forthesameperiodin2023,showingareductionofabout32.1(66,303,000) for the same period in 2023, showing a reduction of about 32.1%[13] - Non-GAAP net loss for the nine months ended September 30, 2024, was (50,480,000), compared to (66,085,000)forthesameperiodin2023,indicatingadecreaseofapproximately23.6(66,085,000) for the same period in 2023, indicating a decrease of approximately 23.6%[15] - The company reported a Free Cash Flow of (57,331,000) for the nine months ended September 30, 2024, compared to (69,542,000)forthesameperiodin2023,representingareductionofabout17.5(69,542,000) for the same period in 2023, representing a reduction of about 17.5%[13] - REE Automotive's GAAP operating expenses for the nine months ended September 30, 2024, were 55,700,000, down from 81,518,000inthesameperiodof2023,adecreaseofapproximately31.781,518,000 in the same period of 2023, a decrease of approximately 31.7%[15] - The company raised 45,872,000 from the issuance of ordinary shares during the nine months ended September 30, 2024, compared to 611,000inthesameperiodof2023,markingasubstantialincrease[12]ProductDevelopmentandDelivery−ReservationsforREE′svehiclessurgedby230611,000 in the same period of 2023, marking a substantial increase[12] Product Development and Delivery - Reservations for REE's vehicles surged by 230% to 137 million, indicating strong demand across the value chain[5] - The company plans to deliver the first production P7 electric trucks to North American customers in the first half of 2025, with production ramp-up targeted for the second half of 2025[3] - Free cash flow burn narrowed by 15% year over year, reflecting operational efficiency and completion of the R&D phase of the P7 program[6] - The company reaffirmed its target to reach bill-of-materials (BoM) breakeven in the second half of 2025 with production of low hundreds of vehicles[5] - REE's service network expanded to 80 locations, making it one of North America's largest for pure commercial EVs[9] - The P7-S Software-Defined EV Chassis was recognized as a 2025 CES Innovation Awards honoree, highlighting the importance of software-defined vehicle technology[9] - REE's autonomous program with Airbus achieved a milestone with the first-ever autonomous drive on an active runway, showcasing the capabilities of its by-wire technology[9] Strategic Focus and Market Position - The company is focused on expanding its market presence and enhancing its technology, particularly in the area of autonomous vehicles and by-wire architecture[22] - REE is focused on commercializing its strategic plan, including the successful evaluation and marketing of its P7 lineup[24] - The company aims to maintain and advance relationships with current Tier 1 suppliers and strategic partners to scale manufacturing capacity[24] - REE's reliance on its UK Engineering Center of Excellence is critical for the design, validation, and testing of its products[24] Risks and Challenges - The company faces risks related to building out its supply chain and initial commercial production plans[24] - REE is exposed to intense competition in the e-mobility space, particularly from competitors with significantly more resources[24] - The ongoing military conflict in Israel and geopolitical uncertainties may impact REE's operations and market conditions[24] - Fluctuations in interest rates and foreign exchange rates pose additional risks to REE's financial performance[24] - The company must attract and retain a highly-skilled technical workforce to achieve its goals[24] - REE's ability to protect and maintain its intellectual property rights is crucial for its competitive advantage[24] - The impact of global economic conditions, including the COVID-19 pandemic and the conflict between Ukraine and Russia, remains a concern for REE[24]