tuSimple(US:TSP)2023-09-27 20:31Revenue and Costs - Revenue for the three months ended March 31, 2023, decreased by $2.0 million, or 91%, to $215,000 compared to $2.26 million in the same period in 2022, primarily due to reduced volume of orders and loads [102]. - Cost of revenue for the same period decreased by $3.58 million, or 88%, to $508,000 from $4.09 million in 2022, aligning with the company's strategy to pause freight revenue operations in the U.S. segment [103]. Expenses - Research and Development (R&D) expenses decreased by $16.56 million, or 21%, to $61.6 million in Q1 2023 compared to $78.16 million in Q1 2022, with a notable 29% decrease in U.S. R&D expenses [105]. - Selling, General and Administrative (SG&A) expenses decreased by $3.53 million, or 11%, to $28.69 million in Q1 2023 from $32.22 million in Q1 2022, primarily due to restructuring efforts [108]. Financial Performance - The net loss for the three months ended March 31, 2023, was $81.21 million, compared to a net loss of $111.90 million in the same period in 2022, reflecting a reduction in losses [101]. - Adjusted EBITDA for Q1 2023 was $(69,525) thousand, a 13% improvement from $(80,235) thousand in Q1 2022 [115]. - U.S. segment Adjusted EBITDA improved to $(48,646) thousand in Q1 2023, a 21% decrease from $(61,752) thousand in Q1 2022 [116]. - APAC segment Adjusted EBITDA increased to $(20,879) thousand in Q1 2023, reflecting a 13% increase from $(18,483) thousand in Q1 2022 [116]. Cash and Investments - As of March 31, 2023, the company had $510.0 million in cash and cash equivalents and $397.0 million in short-term investments [118]. - Net cash used in operating activities decreased from $(100,630) thousand in Q1 2022 to $(87,680) thousand in Q1 2023 [121]. - Net cash used in investing activities increased from $(1,377) thousand in Q1 2022 to $(18,120) thousand in Q1 2023, primarily due to investments in marketable securities [122]. Restructuring and Strategy - The company initiated restructuring activities in Q4 2022, including a 25% reduction in total workforce and impairment of several capital assets [104]. - The company’s restructuring activities have contributed to a decrease in net losses, aligning costs with strategic priorities [121]. - The company plans to continue focusing on R&D to refine its L4 autonomous driving technology for scaled deployment and commercialization [92]. Autonomous Technology - The company has approximately 70 L4 autonomous semi-trucks currently operating, with 35 in the U.S. and 35 in APAC, in Driver In mode [93]. - The company is developing its Autonomous Freight Network (AFN) to provide autonomous freight capacity as a service, aiming for commercialization with retrofitted trucks [89]. Financing and Interest Rates - The company may seek additional equity or debt financing to support growth and technology development, which could dilute existing stockholder ownership [119]. - A hypothetical 100 basis point increase in interest rates would not materially impact the fair value of the company's investment portfolio as of March 31, 2023 [130]. - Interest income increased significantly by $9.4 million, or 2,047%, to $9.88 million in Q1 2023 compared to $460,000 in Q1 2022, driven by earnings from money market funds and short-term investments [111].