Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $3.5 million with a gross margin of 74% primarily driven by contracts with automotive OEM customers for AI-enhanced lithium metal and lithium-ion battery materials for EV applications [15] - The company affirmed its full-year 2025 revenue guidance of $15 million to $25 million [15] - Cash utilized for operations in Q2 was $10.8 million, representing a 51% decrease from Q2 2024 and a 53% decrease from Q1 2025 [16] - The company concluded the quarter with a strong liquidity position of $229 million and no debt [16] Business Line Data and Key Metrics Changes - The company is focusing on five areas for revenue growth: software and service, materials, sales, EV development service, and energy storage systems (ESS) [10][12] - The acquisition of UC Energy is expected to provide a foothold in the global ESS market, with projected revenue growth from approximately $10 million to $15 million for the full year 2025 [17] Market Data and Key Metrics Changes - The global ESS market is projected to be $300 billion, presenting significant growth opportunities for the company [17] - The company is experiencing increased revenue from drones and urban air mobility (UAM) applications, with a focus on updating and certifying its supply chain to meet customer demands [28] Company Strategy and Development Direction - The company aims to accelerate the world's energy transition through material discovery and battery management, leveraging its Molecular Universe platform [5][12] - The integration of hardware and software solutions is a key focus, with plans to enhance the AI platform and explore inorganic acquisition opportunities [12][17] - The company is actively recruiting top talent to strengthen its material discovery team [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the continued momentum in profitability and revenue growth through strategic acquisitions and partnerships [5][17] - The company is focused on demonstrating the superiority of its AI platform in solving complex problems that human scientists cannot, which is expected to drive wider adoption [32] Other Important Information - The company has initiated share repurchases, canceling 871,754 shares for a total investment of $1.1 million at approximately $1.27 per share [17] Q&A Session Summary Question: Can you elaborate on the acquisition of UC Energy and future M&A opportunities? - Management highlighted UC Energy's established presence in the ESS market and its hardware capabilities, which will enhance the company's material development and data integration [21][22] - The company is open to exploring additional M&A opportunities across various applications, including drones and ESS [23] Question: What is the status of the UAM and drone opportunities? - Management noted an increase in revenue from drones and UAM, with ongoing efforts to update the supply chain to meet customer needs [28] Question: What feedback is being received from enterprises using the Molecular Universe platform? - Enterprises are primarily seeking more accurate results rather than additional features, with a focus on solving complex problems that human scientists have struggled with [37] Question: When can we expect the next release of the Molecular Universe platform? - The next version is expected to be released around September to October, which will include more accurate cell-level data [39]
SES AI (SES) - 2025 Q2 - Earnings Call Transcript