QuantumScape(QS) - 2024 Q2 - Quarterly Results

Financial Performance - GAAP operating expenses for Q2 were $134.5 million, with a GAAP net loss of $123.0 million; Adjusted EBITDA loss was $72.5 million[12] - The company maintains its full-year 2024 guidance for Adjusted EBITDA loss to be between $250 million and $300 million[12] - Operating expenses for the three months ended June 30, 2024, were $134,457 thousand, up from $123,542 thousand for the same period in 2023, indicating an increase of approximately 11.5%[30] - Research and development expenses rose to $97,746 thousand for the three months ended June 30, 2024, compared to $86,453 thousand for the same period in 2023, marking an increase of about 13.2%[30] - Net loss attributable to common stockholders for the three months ended June 30, 2024, was $(122,975) thousand, compared to $(116,521) thousand for the same period in 2023, reflecting a loss increase of approximately 5.5%[30] - The GAAP net loss attributable to common stockholders for the three months ended June 30, 2024, was $122,975,000, compared to a loss of $116,521,000 for the same period in 2023, representing an increase of 3.9%[32] - Adjusted EBITDA for the three months ended June 30, 2024, was $(72,513,000), compared to $(63,522,000) for the same period in 2023, indicating a decline of 14.9%[32] - Non-GAAP operating loss for the three months ended June 30, 2024, was $(86,632,000), up from $(73,550,000) in the same period of 2023, reflecting a 17.8% increase in losses[32] - Basic and diluted net loss per share for the three months ended June 30, 2024, was $(0.25), compared to $(0.26) for the same period in 2023, indicating a slight improvement in loss per share[30] Cash Flow and Liquidity - The company ended Q2 with $938 million in liquidity, supporting its ongoing development and production efforts[12] - Cash, cash equivalents, and restricted cash at the end of the period increased to $214,436 thousand from $250,363 thousand at the beginning of the period, showing a decrease of about 14.3%[31] - Net cash used in operating activities for the three months ended June 30, 2024, was $(65,151) thousand, compared to $(57,675) thousand for the same period in 2023, indicating an increase in cash outflow of approximately 12.9%[31] - Proceeds from maturities of marketable securities were $509,204 thousand for the three months ended June 30, 2024, compared to $261,440 thousand for the same period in 2023, representing an increase of about 94.9%[31] Assets and Liabilities - Total current assets decreased from $1,083,517 thousand as of December 31, 2023, to $973,469 thousand as of June 30, 2024, representing a decline of approximately 10.2%[29] - Total liabilities increased from $161,801 thousand as of December 31, 2023, to $214,702 thousand as of June 30, 2024, reflecting an increase of about 32.5%[29] - Total stockholders' equity decreased from $1,338,407 thousand as of December 31, 2023, to $1,180,269 thousand as of June 30, 2024, reflecting a decline of approximately 11.8%[29] Production and Technology Developments - QuantumScape announced a licensing agreement with PowerCo, extending its cash runway into 2028, an 18-month increase from previous guidance[1] - The agreement includes a $130 million prepayment of royalties and a non-exclusive license for an initial production volume of 40 GWh per year, with an option to expand to 80 GWh, sufficient for approximately one million vehicles annually[2] - The Raptor process is on track to enable initial low-volume B-sample production of the QSE-5 product, with Cobra set to facilitate higher-volume production next year[6] - Prototype cells based on the Alpha-2 design demonstrated thermal stability up to 300°C, significantly higher than conventional lithium-ion cells, which fail between 174°C and 185°C[9] - The collaboration with PowerCo is expected to minimize the time to gigawatt-hour scale production and potentially quadruple capacity compared to the previous joint venture arrangement[20] - The partnership with PowerCo is seen as a template for future collaborations, leveraging their industrial expertise to address production challenges[4] Other Financial Information - Stock-based compensation for the three months ended June 30, 2024, was $47,825,000, slightly down from $49,992,000 in the same period of 2023[32] - Depreciation and amortization expense for the three months ended June 30, 2024, was $14,119,000, compared to $10,028,000 for the same period in 2023, showing a 40.8% increase[32] - Interest expense for the three months ended June 30, 2024, was $(11,454,000), compared to $(6,717,000) for the same period in 2023, indicating an increase in interest costs[32] Legal and Forward-Looking Statements - The company is currently involved in a pending settlement of a securities class action litigation, which may impact future financial results[32] - Forward-looking statements indicate that the company anticipates future developments in its battery technology and operational plans, although specific outcomes remain uncertain[34] - The company emphasizes the importance of reviewing reconciliations of non-GAAP financial measures to GAAP measures for a comprehensive understanding of financial performance[33]