Xos(XOS) - 2023 Q4 - Annual Results

Financial and Operational Highlights This section presents Xos's key financial and operational achievements and challenges for 2023, including revenue growth and profitability shifts Full Year 2023 Highlights Xos achieved significant milestones in 2023, including a 22% revenue increase, positive gross margins in H2, and a 43% reduction in quarterly operating expenses over two years 2023 vs 2022 Revenue (in millions) | Year | Revenue | | :--- | :--- | | 2023 | $44.5 | | 2022 | $36.4 | - Achieved positive gross margins in the third and fourth quarters of 2023, supported by the release of an updated stepvan platform[4] - Delivered 283 EV stepvan units to major fleets including FedEx Ground, UPS, Loomis, Canada Post, UniFirst, and Penske[4] - Entered into a definitive agreement to acquire ElectraMeccanica, an all-stock transaction expected to add over $45 million in cash to support operations[4] - Announced the updated Xos Hub™, a rapidly deployable charging unit with 280kWh capacity and charging rates up to 160kW[4] Fourth Quarter and Full Year 2023 Financial Highlights Xos reported Q4 2023 revenues of $18.4 million and full-year revenues of $44.5 million, achieving a $1.3 million gross profit in Q4 despite a full-year gross loss Key Financial Metrics (in millions) | Metric | Q4 2023 | Q3 2023 | FY 2023 | FY 2022 | | :--- | :--- | :--- | :--- | :--- | | Revenues | $18.4 | $16.7 | $44.5 | $36.4 | | Gross profit (loss) | $1.3 | $2.0 | $(1.3) | $(30.0) | | Net loss | $(13.8) | $(14.1) | $(75.8) | $(73.3) | | Loss from operations | $(11.8) | $(12.6) | $(65.0) | $(111.3) | | Cash equivalents & marketable securities | $11.6 | $23.4 | $11.6 | $89.3 | 2024 Outlook Xos projects strong 2024 growth with revenues between $66.7 million and $100.4 million, aiming for 400-600 unit deliveries and reduced non-GAAP operating loss 2024 Full Year Guidance | Metric | Outlook | | :--- | :--- | | Revenue | $66.7 to $100.4 million | | Non-GAAP operating loss | $48.7 to $43.7 million | | Unit Deliveries | 400 to 600 units | - The company expects strong revenue growth of approximately 88% year-over-year at the midpoint of its guidance range[6] - The unit delivery forecast for 2024 includes stepvans, powertrain products, and the new Xos Hub charging units[6] Financial Statements This section presents Xos's consolidated balance sheets and statements of operations, detailing the company's financial position and performance Consolidated Balance Sheets As of December 31, 2023, Xos's total assets decreased to $93.7 million from $189.9 million in 2022, driven by reduced cash and marketable securities Balance Sheet Comparison (in thousands) | Account | Dec 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Cash and cash equivalents | $11,640 | $35,631 | | Total current assets | $71,695 | $163,201 | | Total assets | $93,684 | $189,936 | | Total current liabilities | $19,573 | $45,766 | | Total liabilities | $48,488 | $77,861 | | Total stockholders' equity | $45,196 | $112,075 | Consolidated Statements of Operations and Comprehensive Loss Xos reported 2023 revenues of $44.5 million, significantly improving gross loss to $(1.3) million and reducing operating loss to $(65.0) million, with a net loss of $(75.8) million Full Year Statement of Operations (in thousands, except per share) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | Revenues | $44,523 | $36,376 | | Gross profit (loss) | $(1,290) | $(30,029) | | Total operating expenses | $63,675 | $81,319 | | Loss from operations | $(64,965) | $(111,348) | | Net loss | $(75,843) | $(73,325) | | Net loss per share (Basic) | $(13.11) | $(13.31) | Q4 Statement of Operations (in thousands) | Metric | Q4 2023 | Q4 2022 | | :--- | :--- | :--- | | Revenues | $18,376 | $8,571 | | Gross profit (loss) | $1,327 | $(7,975) | | Loss from operations | $(11,828) | $(25,919) | | Net loss | $(13,827) | $(19,687) | Non-GAAP Financial Measures and Reconciliations This section defines and reconciles Xos's non-GAAP financial measures to their most directly comparable GAAP counterparts, providing adjusted performance views Definition of Non-GAAP Measures Xos uses non-GAAP measures like "Operating cash flow less CapEx", "Non-GAAP operating loss", and "Non-GAAP gross profit (loss)" to provide a clearer view of operational trends - "Non-GAAP operating loss" is defined as loss from operations adjusted for stock-based compensation, inventory write-downs, physical inventory and other adjustments, and ElectraMeccanica transaction costs[14] - "Non-GAAP gross profit (loss)" is defined as gross profit (loss) minus inventory write-downs and physical inventory and other adjustments[14] - "Operating cash flow less CapEx (Free Cash Flow)" is defined as net cash used in operating activities minus purchases of property and equipment[13] Reconciliation of GAAP to Non-GAAP Measures Xos's Non-GAAP Operating Loss improved to $(58.1) million in 2023, with Non-GAAP Gross Loss narrowing to $(2.3) million and Free Cash Flow improving to $(40.7) million Non-GAAP Operating Loss Reconciliation (in thousands) | Description | Twelve Months Ended Dec 31, 2023 | Twelve Months Ended Dec 31, 2022 | | :--- | :--- | :--- | | Loss from Operations (GAAP) | $(64,965) | $(111,348) | | Stock-based compensation | $7,906 | $5,222 | | Inventory reserves | $(1,876) | $5,661 | | Physical inventory and other adjustments | $864 | $7,948 | | Non-GAAP Operating Loss | $(58,071) | $(92,517) | Non-GAAP Gross Profit (Loss) Reconciliation (in thousands) | Description | Twelve Months Ended Dec 31, 2023 | Twelve Months Ended Dec 31, 2022 | | :--- | :--- | :--- | | Gross profit (loss) (GAAP) | $(1,290) | $(30,029) | | Inventory reserves | $(1,876) | $5,661 | | Physical inventory and other adjustments | $864 | $7,948 | | Non-GAAP Gross Profit (Loss) | $(2,302) | $(16,420) | Other Information This section includes details on the earnings conference call and a cautionary statement regarding forward-looking information Conference Call and Webcast Details Details for the Q4 and full-year 2023 earnings conference call and webcast, held on March 21, 2024, are provided, including audio replay access - The earnings conference call was held on Thursday, March 21, 2024, at 4:30 p.m. EDT[9] - An audio replay of the call is available through April 4, 2024[10] Cautionary Statement Regarding Forward-Looking Statements This section outlines forward-looking statements regarding 2024 projections and growth strategy, subject to risks like supply chain issues and competition - Forward-looking statements include projections for 2024, expectations on product deliveries, customer demand, and long-term strategy[17] - Actual results may differ materially due to risks such as supply chain shortages, ability to meet production milestones, industry competition, and other factors listed in the company's SEC filings[18]