QuantumScape(QS) - 2024 Q4 - Annual Results

Partnership and Technology Development - QuantumScape achieved a significant milestone in 2024 by unveiling a partnership with PowerCo, aiming for gigawatt-hour scale production of the QSE-5 technology platform for electric vehicles[3] - The partnership with PowerCo is seen as a blueprint for expanding licensing engagements across the electric vehicle and energy storage industries[12][24] - QuantumScape aims to ship higher-volume QSE-5 B1 samples for customer testing in 2025, targeting initial volumes to support a demonstration phase with a prospective customer in 2026[11] - The company plans to transition from the Raptor to the Cobra separator process in 2025, which is expected to enhance production efficiency[5][9] Financial Performance - GAAP net loss for Q4 2024 was $114.7 million, while the full-year loss reached $477.9 million[16] - Adjusted EBITDA loss was $64.7 million in Q4 and $285 million for the full year, both within expectations[17] - The company ended 2024 with $910.8 million in liquidity, extending its cash runway into the second half of 2028[19] - Capital expenditures for Q4 2024 were $11.2 million, with full-year expenditures totaling $62.1 million, aligning with guidance[16] - Research and development expenses for Q4 2024 were $104,384 thousand, up from $96,397 thousand in Q4 2023, representing an increase of 10.3%[29] - Total operating expenses for the twelve months ended December 2024 were $525,207 thousand, compared to $479,030 thousand for the same period in 2023, reflecting an increase of 9.6%[29] - Interest income for the twelve months ended December 2024 was $46,024 thousand, a significant increase from $36,488 thousand in 2023, marking a growth of 26.5%[29] - Cash used in operating activities for the twelve months ended December 2024 was $274,555 thousand, compared to $240,025 thousand in 2023, an increase of 14.3%[30] - The company reported a net cash decrease of $33,839 thousand in Q4 2024, compared to a decrease of $108,300 thousand in Q4 2023, showing an improvement in cash flow[30] - Cash, cash equivalents, and restricted cash at the end of Q4 2024 were $158,914 thousand, slightly down from $160,572 thousand at the end of Q4 2023[30] - Stock-based compensation expense for the twelve months ended December 2024 was $144,653 thousand, down from $166,297 thousand in 2023, a decrease of 13.0%[30] - The company incurred depreciation and amortization expenses of $57,781 thousand for the twelve months ended December 2024, compared to $41,958 thousand in 2023, an increase of 37.8%[30] - The company reported a total comprehensive loss of $115,173 thousand for Q4 2024, compared to a loss of $109,914 thousand in Q4 2023, reflecting an increase of 4.3%[29] - The company reported a GAAP net loss attributable to common stockholders of $114.662 million for the three months ended December 31, 2024, compared to a loss of $109.066 million in the same period of 2023[31] - Adjusted EBITDA for the three months ended December 31, 2024, was a loss of $64.709 million, slightly worse than the loss of $60.749 million in the prior year[31] - The company incurred stock-based compensation expenses of $34.182 million for the three months ended December 31, 2024, compared to $37.924 million in the same period of 2023[31] - Depreciation and amortization expense for the three months ended December 31, 2024, was $29.800 million, up from $25.967 million in the same period of 2023[32] Challenges and Risks - The company anticipates significant challenges in scaling its battery technology and achieving commercial production quality, which may delay future goals[35] - The company faces risks related to its collaboration with PowerCo, including potential delays in industrializing its battery technology and meeting technical milestones[35] - The company may require additional fundraising to meet spending expectations, which could dilute investor ownership[35] - The company is subject to competition from major manufacturers and new entrants in the solid-state battery technology market[35] - The company cautions that forward-looking statements are subject to various risks and uncertainties that could materially affect actual results[36] - The company has encountered delays in developing new manufacturing equipment, which could impact production timelines[35]