Financial Data and Key Metrics Changes - The company reported a net loss of $31 million in Q2 2023, compared to a loss of $22 million in the same period last year, reflecting increased R&D efforts [61] - Cash consumption in the first half of 2023 was $48 million, more than double the $22 million from the first half of 2022, indicating higher R&D expenditures [43] - The company ended Q2 2023 with $269 million in cash, and with additional credit lines, total liquidity exceeds $370 million, sufficient to fund operations into 2025 [44][138] Business Line Data and Key Metrics Changes - The company invested approximately $22 million in program development during Q2 2023, up from $10 million a year ago, primarily for eVTOL development [59] - SG&A expenses were $7 million in Q2 2023, down from $16 million last year, with the previous year's figures including nonrecurring IPO expenses [60] Market Data and Key Metrics Changes - The company has announced Letters of Intent (LOIs) for 850 aircraft from 28 different customers across 14 countries, indicating a diversified customer base [39] - The company is focusing on key cities for urban air mobility, including San Francisco and Rio de Janeiro, to accelerate its market presence [41] Company Strategy and Development Direction - The company aims to develop a sustainable urban air mobility ecosystem, transforming urban transportation globally [21] - The initial factory will be located in Taubate, Brazil, to optimize production processes and leverage Embraer's resources [45][46] - The company is committed to maintaining a competitive edge by focusing on operational costs and efficiency through a simple design and strategic supplier agreements [75][90] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the development timeline and operational costs, with expectations to begin assembling the first prototype by the end of the year [19][50] - The FAA has agreed to recognize the primary certification process through ANAC, which is critical for the company's development program [26] - Management emphasized the importance of supplier agreements in reducing operational costs and enhancing aircraft performance [119][147] Other Important Information - Johann Bordais will join as CEO effective September 1, bringing extensive experience from Embraer Services and Support [30] - The company has begun manufacturing components for its first prototype and plans to initiate a test campaign next year [50] Q&A Session Summary Question: What are the aircraft performance specifications and production costs? - Management reiterated that they are targeting the same high-level performance metrics, including a range of approximately 100 kilometers and capacity for four passengers [66][67] Question: How are supplier agreements structured? - Supplier agreements are comprehensive, covering development and production phases, with payments linked to eVTOL development milestones [72][74] Question: What are the expected operational costs compared to competitors? - Management indicated a clear advantage in operational costs, estimating a double-digit percentage advantage over competitors due to their design and maintenance strategies [90][94] Question: How will the company manage service and support as it enters the market? - The company plans to leverage Embraer's existing infrastructure and expertise to build a robust service and support network, minimizing initial capital expenditures [82][108] Question: When can the company expect to convert LOIs into firm orders? - The conversion of LOIs into firm agreements is expected to begin approximately 18 months before aircraft delivery, contingent on certification milestones [108][125]
Eve (EVEX) - 2023 Q2 - Earnings Call Transcript