Canoo (US:GOEV)2021-03-30 04:14Financial Data and Key Metrics Changes - In Q4 2020, research and development expense was $19 million, down from $28.6 million in the prior year period, while excluding stock-based compensation, it was $31.3 million [29] - SG&A expense in Q4 2020 was $35.7 million compared to $7.1 million in the prior year period, with adjusted figures being $11.2 million [29] - GAAP net loss for Q4 2020 was $12.3 million, an improvement from a loss of $42.7 million in the prior year [29] - Full year 2020 revenue was $2.6 million, up from the prior year, with a GAAP net loss of $89.8 million compared to $182.4 million in the previous year [30] - The company ended 2020 with $702.4 million in cash, with cash used in operations for the year at $107.1 million, down from $171.5 million in the prior period [31] Business Line Data and Key Metrics Changes - The company is shifting its manufacturing strategy into two phases, with Phase 1 focusing on contract manufacturing for the MPP1 LV derivative and Phase 2 involving a mega micro-factory for high-volume derivatives [8] - The decision to deemphasize contract engineering services aims to accelerate the creation of IP and launch derivatives, enhancing return on capital [9] Market Data and Key Metrics Changes - The global EV market is projected to grow at a 32% CAGR over the next 10 years, with EVs expected to account for 25% of new car sales by 2030 [16] - The U.S. transportation sector contributes 28% of greenhouse gases, making the switch to EVs a significant opportunity for carbon reduction [14] Company Strategy and Development Direction - The company aims to capitalize on the full multi-owner lifecycle of vehicles, focusing on aftermarket and customization to create revenue touchpoints [12] - The strategy includes a focus on engineering IP to broaden the total addressable market (TAM) and a shift towards commercial and mobility professional users [78] - The company plans to maintain a balance between contract manufacturing and in-house production to optimize geographic expansion and meet demand [68] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the impact of COVID-19 on operations and plans to report on industry impacts in future quarterly reports [9] - The company is focused on building a world-class executive team and enhancing its commercialization strategy over the next four to six quarters [7] Other Important Information - The company has accumulated nearly 500,000 testing and validation miles on its vehicles, providing valuable data for development [26] - The company is targeting a total of 100 new hires in 2021 to support its growth strategy [37] Q&A Session Summary Question: Can you discuss the hiring process and expected growth in operating expenses? - The company is targeting about 100 new full-time employees and is using aggressive tactics to attract talent in a competitive market [37] Question: Can you clarify the deemphasis on engineering services? - The company believes focusing on creating IP will drive better shareholder value than acting as a contract engineering house [42] Question: What is the status of the contract manufacturing process? - The company is in discussions with finalists for contract manufacturing and plans to announce partnerships soon [56] Question: How does the company view competition from legacy automakers? - The company believes competitors will struggle with suboptimal designs by modifying existing ICE platforms, while it offers a uniquely designed EV platform [70] Question: Is the subscription model still a possibility? - The company plans to keep the subscription model but will limit it to under 20% of sales to manage financial risks effectively [93]