Canoo (US:GOEV)2023-05-15 22:43Financial Data and Key Metrics Changes - The GAAP net loss for Q1 2023 was $90.7 million, an improvement from a net loss of $125.4 million in the prior year period [32] - Adjusted EBITDA was negative $67.1 million for the quarter, compared to negative $117.4 million in the prior year period [32] - Capital expenditures for the quarter were $18.4 million, down from $28.4 million in Q1 2022, reflecting a migration to Oklahoma City [29] Business Line Data and Key Metrics Changes - The order book is now valued at $2.8 billion, growing 5% quarter-over-quarter in Stage 2 and Stage 3 orders [26] - Research and development expenses totaled $47.1 million for the quarter, a 43% reduction from $82.5 million in the prior year period [52] - SG&A expenses were $29.8 million, down 46% from $55.6 million in the prior year period [52] Market Data and Key Metrics Changes - The company is focused on zero-emission technology-driven vehicles, with a growing demand in targeted geographies and segments [6][20] - The average age of vehicles has reached an all-time high of 12 to 14 years, indicating a potential market for new vehicles [20] Company Strategy and Development Direction - The company aims to deliver a high return on capital platform, focusing on commercial customers who order in volume [21] - A dual path manufacturing investment strategy is in place, adjusting for the amount of capital accessed in the short term [53] - The company plans to achieve a manufacturing run rate of 20,000 by the end of 2023 and 40,000 by 2024, with targeted gross margin positivity by 2025 [54][47] Management's Comments on Operating Environment and Future Outlook - The management acknowledges challenges in the traditional automotive industry due to rising interest rates and economic uncertainties [5] - The company is optimistic about the future, focusing on innovative designs and reducing complexity in manufacturing [43][46] - Management emphasizes the importance of proving their business model and optimizing cash usage to build shareholder value [67] Other Important Information - The company has secured a long-term lease for the Oklahoma City manufacturing facility, which helps reduce capital burden [10] - The company is engaged with NASA for vehicle performance and functionality, which is seen as a significant partnership [25] Q&A Session Summary Question: Impact of SEC-related comments on operations and shipments - Management stated that the company's activities have concluded, and they are waiting for the commission's approval, with no impact on operational capabilities [56] Question: Timeline for initial production setup - Limited production has begun, with plans to deliver NASA vehicles in the upcoming quarter, marking the start of revenue generation [57] Question: Updates on Walmart order - Management indicated that there would be announcements in the coming quarter regarding the Walmart order [70]