Canoo (US:GOEV)2022-11-10 01:49Financial Data and Key Metrics Changes - Cash used in operations for the nine months ended September 30, 2022, was $329.9 million, compared to $180.6 million for the same period in 2021 [36] - Capital expenditures were $88.8 million for the nine months ended September 30, 2022, compared to $74 million for the same period in 2021 [36] - GAAP net loss was $117.7 million for the quarter, compared to a GAAP net loss of $80.9 million in the prior year period [38] - Adjusted EBITDA was negative $80.8 million for the year compared to negative $85.8 million in the prior year period [38] - The company reduced cash burn by 25% over the last quarter [33] Business Line Data and Key Metrics Changes - The company has over $2 billion in total orders in its pipeline, with stage three contractual commitments growing to $750 million, or 18,000 units, representing a 224% growth over the last quarter [25] - Stage 2 orders grew by 57% over the last quarter, totaling 42,000 units [25] - The company has completed 118 vehicles in the gamma build phase [11] Market Data and Key Metrics Changes - The company is focused on high-grade commercial customers and has secured a landmark NASA contract, expanding its total addressable market (TAM) into government and defense opportunities [17] - The company has developed partnerships with Oklahoma, Arkansas, and the Cherokee Nation, creating an estimated 3,400 new high-tech American jobs [16] Company Strategy and Development Direction - The company aims to achieve a 20,000 unit run rate capacity in 2023, doubling that capacity in 2024 [11] - The company has pivoted to domestic manufacturing and is focused on creating unique intellectual property (IP), increasing its patents by 13% to a total of 205 [11] - The company is strategically targeting grade A and triple B credit customers to ensure favorable cash flow [55] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the current global economic and geopolitical disruptions but emphasizes a long-term strategy focused on shareholder value [9] - The company is taking a disciplined phased expansion approach to production based on committed orders, which is seen as a prudent move in a turbulent economy [29] - Management is optimistic about the demand for their products, citing a strong pipeline and positive customer feedback [55] Other Important Information - The company has made significant investments in machinery, equipment, and tooling, with over $300 million allocated [11] - The company has successfully completed its gamma builds and is ready to start production, with the first sellable vehicle deliveries expected in the back half of Q1 2023 [20][28] Q&A Session Summary Question: Is there any risk of double spending on the new facility versus the Pryor location? - Management clarified that the Oklahoma City facility will focus on defense and specialty products, ensuring no overlap with the Pryor location [46] Question: Is the sequential drop in R&D spending part of cost-saving efforts or a natural evolution? - Management indicated it is a combination of both, as they focus on ramping down while preparing for commercialization [48] Question: What are the financing needs to start making deliveries in the upcoming quarters? - Management discussed the importance of a disciplined capital plan and highlighted the availability of $170 million in their ATM program [49][50] Question: Are there any signs of slowing in the customer pipeline due to economic concerns? - Management reported a strong pipeline focused on grade A customers, indicating no significant slowdown [55] Question: Is the company reconsidering its near-shoring activities due to easing supply chain costs? - Management confirmed ongoing efforts to bring components into the U.S. and improve efficiency without sacrificing functionality [57] Question: Can you elaborate on the allocation of production as ramp-up begins? - Management emphasized the importance of flexibility in delivery schedules to meet customer expectations without over-promising [63]