SES AI (SES)2024-11-01 02:14Financial Data and Key Metrics Changes - In Q3 2024, the company's GAAP operating expenses were $34.2 million, with cash used in operations amounting to $22.7 million and capital expenditures at $1.5 million [18] - The company ended Q3 with $274 million in liquidity and updated its full-year 2024 guidance, expecting total cash usage to be between $80 million to $95 million, down from a previous estimate of $100 million to $120 million [19] Business Line Data and Key Metrics Changes - The company reported early commercial revenue in urban air mobility (UAM) and drones, having completed site acceptance tests for UAM lines and signed cell supply agreements, including with SoftBank [6][7] - The B-sample lithium metal cells successfully passed the GB38031 2020 safety tests, marking a significant milestone towards commercialization for electric vehicles (EV) [8][15] Market Data and Key Metrics Changes - The UAM market is growing rapidly, particularly in China, with the company tailoring its new cell product specifically for UAM applications, which includes both passenger and large cargo drones [38] - The lithium metal cells provided by the company offer a power density of 400 watts per kg, significantly higher than the 250 watts per kg of lithium-ion cells, enhancing flight duration and payload capacity [40] Company Strategy and Development Direction - The company is focused on the commercialization of next-generation lithium metal batteries and AI solutions, with an all-in strategy on AI to enhance battery material discovery and manufacturing processes [5][10] - The establishment of an electrolyte foundry and partnerships with NVIDIA are part of the strategy to leverage advanced computing for battery material development [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the potential of AI to transform the battery industry, with expectations of entering a revenue pipeline from AI solutions in the near future [22][16] - The company anticipates strong interest from existing and new partners for its AI solutions, with contracts expected to be signed soon [34] Other Important Information - The company has achieved a 95% prediction accuracy with its AI for safety, and when integrated with AI for manufacturing, it can achieve 100% accuracy [14][16] - The company is also focused on reducing general and administrative spending while investing in talent and GPU resources to support its AI initiatives [30] Q&A Session Summary Question: What is the revenue mechanism for AI solutions? - The revenue model will include a combination of subscription fees for using the AI model and product revenue from new electrolyte products [22] Question: How will the company grow its customer base for AI solutions? - The company is working with three OEMs as initial customers and has been approached by top electrolyte and battery manufacturers for potential projects [25] Question: What is the revenue potential associated with UAM customers? - While specific details are confidential, the project with SoftBank will kick off in November and continue into the first half of next year, with potential revenue expected throughout 2025 [32] Question: How is the company addressing cycle life requirements for EV OEMs? - The company is working on new molecules that improve cycle life by about 20% and is also optimizing charging protocols using AI tools [42]