- Quarterly revenue of $0.9 million, and year-to-date revenue of $1.50 million
- Quarterly Adjusted EBITDA was $(37.7) million, an improvement of 2% versus Q3 2023
- Adjusted Net Loss Per Share was $(0.54), a 67% improvement versus $(1.71) in Q3 2023 and comparable to $(0.61) per share in Q2 2024
- Quarterly cash outflow of $31.3 million in Q3 2024, compared to cash outflow of $39.4 million in Q2, 2024, a 20.7% reduction between Q3 and Q2 2024, and a 58.6% reduction from Q3 2023.
- Our consolidation of operations from California to Texas and Oklahoma will result in estimated future savings of approximately $12 million - $14 million on an annualized basis, with potential for additional savings.
"We are grateful for the support of our customers, partners, their belief in us, and in our amazing product. While we focus on our core markets we must continue to take aggressive actions to consolidate our operations, reduce costs, and catch-up to our plan. This starts from the top led by a committed Executive team, which is willing to take short-term pay cuts for long-term incentives and believes in the value we create for our customers, associates and shareholders.” said Tony Aquila, Investor, Executive Chairman, and CEO. "This will continue to be a difficult and critical period as we do everything we can to get the capital in place, bring jobs back online, and get back on track with our step-level manufacturing plan.”
Third Quarter and Recent Business Updates:
- North America realignment and relocation of corporate headquarters from California to Texas
- Consolidating our facilities from six to three, which has and will continue to impact our workforce until we are back on track with our step level manufacturing
- Achieved final activation of Oklahoma City facility Foreign Trade Zone
- UK Market: Established legal entity, launched commercial operations, received regulatory Individual Vehicle Approval with less than 2% changes to bill of materials, and signed service partners
- Commenced first pilot in the UK with one of the country's largest fleet operators
- As of September 30, 2024, we had cash, cash equivalents and restricted cash of $16 million.
- GAAP net income (loss) and comprehensive income (loss) of $3 million and $(112) million for the three and nine months ended September 30, 2024, compared to a GAAP net loss and comprehensive loss of $(112) million and $(274) million for the three and nine months ended September 30, 2023. The GAAP net loss and comprehensive loss for the three and nine months ended September 30, 2024 included a gain of $62 million and gain of $101 million on the fair value change of the warrant and derivative liability, respectively.
- Adjusted EBITDA of $(38) million and $(125) million for the three and nine months ended September 30, 2024, compared to $(40) million and $(170) million for the three and nine months ended September 30, 2023.
- Adjusted Net Loss of $(43) million and $(143) million for the three and nine months ended September 30, 2024, compared to $(46) million and $(187) million for the three and nine months ended September 30, 2023.
- Adjusted EPS per share of $(0.54) and $(2.14) for the three and nine months ended September 30, 2024, compared to $(1.71) and $(8.34) for the three and nine months ended September 30, 2023.
- Net cash used in operating activities totaled $110 million for the nine months ended September 30, 2024, compared to $191 million for the nine months ended September 30, 2023.
- Net cash used in investing activities was $10 million during the nine months ended September 30, 2024, compared to $45 million during the nine months ended September 30, 2023.
- Net cash provided by financing activities was $115 million during the nine months ended September 30, 2024, compared to $209 million during the nine months ended September 30, 2023.
Based on our current projections, Canoo expects the following guidance for Q4, 2024:
- Cash Outflow - $30 million to $40 million
- Adjusted EBITDA - $(30) million to $(35) million
Conference Call Information
Canoo will host a conference call to discuss the results today, November 13, 2024, at 5:00 PM ET.
To listen to the conference call via telephone dial (877) 407-9169 (U.S.) and (201) 493-6755 (international callers/U.S. toll) and enter the conference ID number 13750015. To listen to the webcast, please go to investors.canoo.com. A telephone replay will be available until November 27, 2024, at (877) 660-6853 (U.S.) and (201) 612-7415 (international callers/U.S. toll), with Conference ID number 13750015. To listen to the webcast replay, please go to investors.canoo.com.
About Canoo
Founded in 2017, Canoo Inc. (NASDAQ: GOEV) is an automotive tech company that manufactures electric cargo vehicles, built to deliver, for large commercial, government and fleet customers globally. The company has developed design-forward innovative electric vehicles with steer-by-wire technology on its common modular platform with end-to-end software plus power solutions. Canoo's platform is purpose-built to maximize the vehicle interior space and is customizable to support a wide range of business and government applications. Headquartered in Justin, Texas, Canoo has teams located in California, Michigan and Oklahoma with world-class vehicle and battery facilities in Oklahoma City. For more information please visit www.canoo.com and investors.canoo.com.
Third Quarter 2024 Financial Results
CANOO INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except par values)
UNAUDITED
| September 30,
2024 | December 31, 2023 | ||||||
| Assets | |||||||
| Current assets | |||||||
| Cash and cash equivalents | $ | 1,533 | $ | 6,394 | |||
| Restricted cash, current | 3,936 | 3,905 | |||||
| Inventory | 9,913 | 6,153 | |||||
| Prepaids and other current assets | 13,597 | 16,099 | |||||
| Total current assets | 28,979 | 32,551 | |||||
| Property and equipment, net | 368,740 | 377,100 | |||||
| Restricted cash, non-current | 10,600 | 10,600 | |||||
| Operating lease right-of-use assets | 30,194 | 36,241 | |||||
| Deferred warrant asset | 50,175 | 50,175 | |||||
| Deferred battery supplier cost, non-current | 28,900 | 30,000 | |||||
| Other non-current assets | 5,701 | 5,338 | |||||
| Total assets | $ | 523,289 | $ | 542,005 | |||
| Liabilities and stockholders' equity | |||||||
| Liabilities | |||||||
| Current liabilities | |||||||
| Accounts payable | $ | 81,015 | $ | 65,306 | |||
| Accrued expenses and other current liabilities | 75,085 | 63,901 | |||||
| Convertible debt, current | 42,640 | 51,180 | |||||
| Derivative liability, current | - | 860 | |||||
| Financing liability, current | 3,604 | 3,200 | |||||
| Total current liabilities | 202,344 | 184,447 | |||||
| Contingent earnout shares liability | - | 41 | |||||
| Operating lease liabilities, non-current | 33,158 | 35,722 | |||||
| Derivative liability, non-current | 9,888 | 25,919 | |||||
| Financing liability, non-current | 28,620 | 28,910 | |||||
| Warrant liability, non-current | 26,618 | 17,390 | |||||
| Other liabilities | 702 | - | |||||
| Total liabilities | $ | 301,330 | $ | 292,429 | |||
| Commitments and contingencies (Note 12) | |||||||
| Redeemable preferred stock, $0.0001 par value; 10,000 authorized, 62 and 45 shares issued and outstanding as of September 30, 2024, and December 31, 2023, respectively. | $ | 8,780 | $ | 5,607 | |||
| Stockholders' equity | |||||||
| Common stock, $0.0001 par value; 2,000,000 authorized as of September 30, 2024, and December 31, 2023, respectively; 87,195 and 37,591 issued and outstanding as of September 30, 2024 and December 31, 2023, respectively (1) | 9 | 4 | |||||
| Additional paid-in capital (1) | 1,807,403 | 1,725,809 | |||||
| Accumulated deficit | (1,594,233) | (1,481,844) | |||||
| Total preferred stock and stockholders' equity | 221,959 | 249,576 | |||||
| Total liabilities, preferred stock and stockholders' equity | $ | 523,289 | $ | 542,005 | |||
CANOO INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share values)
UNAUDITED
| Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Revenue | $ | 891 | $ | 519 | $ | 1,497 | $ | 519 | |||||||
| Cost of revenue | 170 | 903 | 2,015 | 903 | |||||||||||
| Gross margin | 721 | (384) | (518) | (384) | |||||||||||
| Operating Expenses | |||||||||||||||
| Research and development expenses, excluding depreciation | 17,502 | 21,965 | 60,676 | 107,651 | |||||||||||
| Selling, general and administrative expenses, excluding depreciation | 22,604 | 24,925 | 77,276 | 85,195 | |||||||||||
| Depreciation | 3,752 | 1,495 | 10,505 | 10,632 | |||||||||||
| Reorganization and related exit costs | 16,055 | - | 16,055 | - | |||||||||||
| Total operating expenses | 59,913 | 48,385 | 164,512 | 203,478 | |||||||||||
| Loss from operations | (59,192) | (48,769) | (165,030) |
| |||||||||||