Eve (EVEX) - 2022 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company reported a net loss of $11.8 million for Q2 2022 and $21.3 million for the first half of the year, with R&D expenses of $9.8 million in Q2 and nearly $20 million in the first half [27][26] - Cash burn for the first six months of 2022 was $13.2 million, positively impacted by accounts payable of approximately $10 million related to Embraer's development services [29][30] - The company ended Q2 with approximately $330 million in cash following a net capital raise of $329 million in May [30] Business Line Data and Key Metrics Changes - The company has signed letters of intent for over 2,000 eVTOL aircraft from 22 different launch customers, indicating a diversified order book with no single customer representing more than 10% of the total [13][24] - The non-binding backlog is valued at almost $6 billion, with expectations for significant cash flow from progress down payments as letters of intent are converted into firm orders [25] Market Data and Key Metrics Changes - The company has received orders from 10 countries across six continents, showcasing a global market presence [24] - The partnership with Embraer provides access to a global infrastructure critical for development, certification, and future maintenance services [12] Company Strategy and Development Direction - The company aims to launch its eVTOL and Urban Air Mobility ecosystem by 2026, leveraging its partnership with Embraer for development and certification advantages [8][9] - The strategy includes a holistic approach to Urban Air Mobility, focusing on aircraft design, service, support, and air traffic management [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the certification process with Brazil's ANACC and ongoing discussions with the FAA and EASA, highlighting a clear path to certification [14][15] - The company remains focused on Urban Air Mobility while exploring defense applications through its partnership with BAE Systems and Embraer [46] Other Important Information - The company has initiated several tests, including simulations and proof-of-concept flights, to validate its eVTOL design and operational capabilities [17][70] - The design changes announced at the Farnborough Airshow aim to enhance controllability and reduce weight, contributing to energy efficiency [36][37] Q&A Session Summary Question: Next steps in the eVTOL certification process with ANACC - Management indicated multiple steps ahead, with plans to align with the FAA later this year, leveraging bilateral agreements to streamline certification [32][33] Question: Clarification on the loan agreement with Embraer - Management clarified that the company invested cash with Embraer rather than raising debt, providing a good return on investment [34] Question: Rationale behind design changes announced at Farnborough - The design changes allow for reduced power requirements and improved controllability, enhancing the vehicle's efficiency and flexibility [36][37] Question: Plans for autonomy and near-term milestones - The company is gathering data in urban environments to advance autonomous capabilities, with a focus on developing a modular architecture for future autonomous functions [63][66] Question: Insights on proof-of-concept flight testing - Management emphasized ongoing testing and simulations to refine the final design, with expectations for more mature aircraft leading up to production readiness [68][71]