Eve (US:EVEX)2024-08-10 08:59Financial Data and Key Metrics Changes - The company invested $36 million in program development during Q2 2024, primarily in eVTOL aircraft and urban air traffic management software [16] - A net loss of $36 million was reported for Q2 2024, with operations consuming $31 million, an increase of $4 million compared to the same period in 2023 [16][17] - The company ended Q2 2024 with $206 million in cash, down $16 million from Q1 2024, and has approximately $38 million available from a preapproved credit line [17][18] Business Line Data and Key Metrics Changes - The total preorder backlog stands at 2,900 aircraft valued at $14.5 billion, reflecting a diverse customer base across 13 countries [14] - The company has secured contracts with 12 customers for maintenance, repair, and overhaul (MRO) services, potentially generating $1.2 billion in revenue over the first five years of operation [15] Market Data and Key Metrics Changes - The company is developing a strong network of partners in infrastructure and energy to address challenges in urban air mobility [15] - The company has received nonbinding Letters of Intent (LOIs) from 30 different customers, indicating a broad interest in its eVTOL solutions [14] Company Strategy and Development Direction - The company aims to create a new ecosystem for urban air mobility, focusing on both aircraft development and service support [15] - The eVTOL will utilize Embraer's fifth-generation fly-by-wire system, providing a competitive advantage in safety and passenger comfort [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving certification and entering service by 2026, leveraging Embraer's resources and expertise [63] - The company is closely monitoring the delivery of electric motors, which are critical for the flight test campaign [24][25] Other Important Information - The company announced an additional equity raise of $96 million, enhancing its liquidity to approximately $340 million post-funding [18][19] - The recent depreciation of the Brazilian currency against the U.S. dollar is expected to reduce cash consumption in dollar terms [27] Q&A Session Summary Question: Expectations on electric motor delivery and factors for building conforming prototypes - Management expects the motors to be delivered in the second semester, allowing for the start of the flight test campaign [24][25] Question: Liquidity and cash burn expectations - Management indicated that despite a higher cash burn next year, it should not be significantly higher than this year due to favorable currency conditions [26][27] Question: Test sites and timeline for testing - The company plans a gradual opening of the flight envelope, starting with hover flight tests and moving to partial transition tests [32][34] Question: Certification plans and market developments - The certification process remains focused on ANAC, with efforts to align requirements with other authorities, including the UAE [36][37] Question: Production volumes and supply chain for batteries - BAE has been selected as the battery supplier, with confidence in their ability to ramp up production as needed [40][41] Question: Aftermarket support plans - The company will be the face to the customer, exploring various models for aftermarket support, including leveraging Embraer's extensive service network [46] Question: Rationale for equity raise - The equity raise was seen as an opportunity to strengthen liquidity and attract strategic investors, providing a longer runway for operations [48][49] Question: Timeline for pre-delivery payments (PDPs) - The company expects to start converting LOIs into firm orders within the next 12 months, leading to initial deposits [56][57]