Written by Cláudio Afonso | LinkedIn | X
Electric vehicle maker Canoo published its third-quarter earnings results on Wednesday, reporting cash and cash equivalents of $1.53 million, down 82% from the previous year.
Revenue rose sequentially from $605,000 to $900,000, although the number of vehicles delivered between July and September remains unknown. In November 2022, Canoo announced it had secured $2 billion in customer orders, stating these orders were ready for the start of production scheduled for later that month.
Loss from operations increased from about $48.8 million to $59.2 million while total assets slightly decreased year over yer to $523,289 — from $542,005.
In September, the company, led by Tony Aquila, withdrew its 2024 revenue guidance along with projections for its manufacturing run rate, vehicle production, and deliveries for 2024 and beyond.
In a statement, Canoo’s CEO Tony Aquila said the company is “grateful for the support of our customers, partners, their belief in us, and in our amazing product,” before commenting on the recent measures to reduce cash burn.
“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,” the executive stated.
Aquila calls the current phase “a difficult and critical period” and reiterates the ambition to “get back on track with our step-level manufacturing plan”.
“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,” Canoo CEO said.
Canoo shares traded 10.5% higher less than an hour after the results were released, following a 15% drop at Wednesday’s close.
The company expects cash outflow to range between $30 million to $40 million while adjusted EBITDA is forecasted to be between $(30) million to $(35) million.
Earlier this month, the company reported that its Chief Financial Officer, Greg Ethridge, and General Counsel, Hector Ruiz, both resigned effective October 31.
Implied volatility data indicated earlier today that the market anticipates a move of approximately 21.6%, or $0.15, following the release of results versus the median move over the past eight quarters of 6.8%.
The stock reached a new record low last week at $0.37 after the company announced that it is furloughing 30 factory workers in its Oklahoma plant until late January next year as a timeline for mass production start remains unknown.
Last week, the startup announced it entered into a $12 million secured revolving credit facility with AFV Management Advisors, LLC, an entity founded by the company’s CEO Tony Aquila.
Written by Cláudio Afonso | LinkedIn | X
