• Revenue: $2.3 million in Q3, driven by sensor shipments to automotive and industrial customers, including the Daimler truck program.
• Non-GAAP Operating Loss: $31.4 million for the quarter.
• Gross Cash Use: $26.4 million in Q3, consisting of $25.9 million in operating cash use and $0.5 million in capital expenditure.
• Liquidity: Totaled $259.8 million at the end of Q3, with $134.8 million in cash equivalents and marketable securities, and $125 million of available undrawn equity facility.

• Warning! GuruFocus has detected 5 Warning Signs with AEVA.

Release Date: November 06, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Aeva Technologies Inc (NYSE:AEVA) secured a major industrial production win for security applications with a multiyear supply agreement, starting with deployments at JFK and SFO airports.
• The company achieved a significant milestone with Daimler Truck and Torque, validating fully driverless operations at highway speeds, showcasing progress in autonomous truck commercialization.
• Aeva was selected for a major European passenger OEM's automated vehicle validation program, highlighting the growing interest in its FMCW technology.
• The company advanced to the final stage of an RFQ with a global top 10 passenger OEM, indicating strong potential for future production program wins.
• Aeva successfully pulled forward the first shipments of its Atlas product by six months, enhancing its ability to support recent production wins and capitalize on market interest.

Negative Points

• Revenue for Q3 was $2.3 million, indicating a need for further scaling to meet financial expectations.
• The non-GAAP operating loss for the quarter was $31.4 million, reflecting ongoing financial challenges.
• Gross cash use was $26.4 million, highlighting significant cash outflows that may impact liquidity.
• Despite progress, the company faces risks and uncertainties that could affect future results, as noted in their forward-looking statements.
• Aeva's financial position relies on $125 million of available undrawn equity facility, which may imply potential future dilution if accessed.

Q & A Highlights

Q: Can you discuss the growth potential and customer interest in the security sector over the next 12 to 24 months? A: Soroush Dardashti, CEO, highlighted that Aeva has secured a multi-year production supply agreement with Indoor Lab, starting with deployments at JFK and SFO airports. This represents a significant opportunity, with estimated revenue potential of up to $50 million over the next few years. The company is excited about expanding into industrial security applications and sees potential for further growth as Indoor Lab and other applications expand.

Q: What are the remaining manufacturing hurdles for the Torque production, and what can be shared with the public markets? A: Soroush Dardashti, CEO, stated that Aeva is on track with Daimler Truck and Torque, having met all milestones. The focus is now on scaling sensor shipments and validating Torque's fleets. The company aims to bring up the production line for Atlas to support mass SOP in 2026, aligning with Daimler's market entry in 2027.

Q: Can you provide an update on the Tier 1 OEM win and the remaining milestones for the global Tier 1 program? A: Soroush Dardashti, CEO, explained that Aeva has made significant progress with a global Top 10 passenger OEM, having passed critical manufacturing quality audits and aligned on technical requirements. The company is in the final stages of the RFQ process and is discussing commercial terms, gaining confidence in the OEM's decision-making process.

Q: Are there other competitors in the down-select process for the Tier 1 OEM program? A: Soroush Dardashti, CEO, mentioned that Aeva is in the final stages of the RFQ process, having gone through multiple down-selects. The company believes it is in a strong position with the passenger OEM.

Q: How does the financial opportunity with Innovation Labs play out as you develop a pipeline together? A: Soroush Dardashti, CEO, noted that the partnership with Indoor Labs is a multi-year production deal with committed volumes. The estimated revenue potential is approximately $50 million over the next few years, with opportunities for growth as the platform expands to new sites and applications.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.