Ideanomics(US:IDEX)2019-11-14 18:48Financial Data and Key Metrics Changes - Revenue for Q3 2019 was $3.1 million, a decrease of approximately $40.6 million or 93% compared to $43.7 million in Q3 2018 [23] - Gross profit for Q3 2019 was approximately $2.9 million, representing an increase of 231% from $0.9 million in the same period in 2018, with a gross profit ratio of 92% compared to 2% in 2018 [26] - Total operating expenses for Q3 2019 were $12.3 million, an increase of approximately $5 million or 70% from $7.2 million in Q3 2018 [26] - Loss per share for Q3 2019 was $0.11, compared to a loss per share of $0.10 in Q3 2018 [27] Business Line Data and Key Metrics Changes - The company generated its first revenues from its electronic vehicle business, completing an order for 4,172 taxis and earning $2.9 million as commission [23][11] - The MEG business unit has been restructured into four distinct operating segments focused on heavy commercial vehicles, last-mile logistics vehicles, buses and coaches, and taxis [12] Market Data and Key Metrics Changes - The company anticipates delivering another 5,000 EV taxis in Q4 2019, with ongoing deliveries expected throughout 2020 [11][12] - A significant order of 35,000 EV taxis was announced to be delivered in 2020, contributing to future revenue [12] Company Strategy and Development Direction - The company plans to spin off or divest all non-core assets, focusing on two primary revenue divisions: the MEG business unit and the financial services business unit [7] - The MEG business model, termed S2F2C (sales to financing to charging), aims to create large-scale demand for energy by enabling conversions to electric vehicles [10][11] - The company is working on developing attractive financing programs for the EV market, with plans to roll out these programs in Q1 2020 [15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges in securing financing for EV vehicles, which has delayed revenue generation [54] - The company is optimistic about future revenue growth, particularly from the EV market, as fleet operators are under pressure to comply with government regulations on carbon emissions [54] Other Important Information - The company has added key personnel to its management team, including a new CFO and board members with relevant industry experience [8] - The company is actively seeking investors to swap its cryptocurrency holdings for more strategically aligned assets [21] Q&A Session Summary Question: Status of development in West Hartford regarding demolition and construction timeline - Management confirmed that demolition is underway, with expectations to complete it over the winter period [30][31] Question: Clarification on net revenue from EV taxis and future guidance - Management explained that the gross value of the recent taxi order would be approximately $48 million, with a cost of revenues around $45 million [33][35] Question: Breakdown of delivered vehicles and future updates - Management indicated that there are no anticipated taxi or bus sales in Malaysia for Q4, and deliveries will occur on a rolling basis [39][42] Question: Company's plan for defending shareholder value amid stock price decline - Management acknowledged the disappointing quarter but emphasized the importance of the new revenue streams from the EV business [54][56] Question: Expectations for analyst coverage and interpretation of company value - Management stated that they plan to provide more information to the market to spur analyst coverage and help interpret the company's value [56]