AYRO Q4 2021 Earnings Report
Key Takeaways
AYRO reported record revenue in Q4, driven by record unit deliveries of the Club Car Current LSEV. The company began development of the next-generation 411 fleet vehicle model year 2023 refresh, called the ‘AYRO Z’, and expects to launch it by year-end 2022.
Achieved record revenue in the fourth quarter due to record unit deliveries of Club Car Current LSEV.
Started development of the next-generation 411 fleet vehicle model year 2023 refresh, referred to as the ‘AYRO Z’.
Targeting launch of the AYRO Z by year-end 2022, designed for light-duty uses and featuring a major technology refresh.
Ended 2021 with a cash balance of $69.2 million.
AYRO
AYRO
Forward Guidance
AYRO anticipates a busy 2022 with the rollout of the AYRO Z, a next-generation light-duty electric truck. The company expects ongoing operating loss to narrow in 1Q22 and 2Q22 due to cost structure improvements. They also had one-time COGS expenses in 4Q21 related to the shift to a North American-based manufacturing and supply chain strategy that will not recur in future quarters.
Positive Outlook
- AYRO expects ongoing operating loss to narrow even further in 1Q22 and 2Q22 due to continued improvements in our cost structure.
- AYRO is ramping our development activities for the AYRO Z.
- AYRO had approximately $1.78 million in one-time cost of goods sold (COGS) expenses in 4Q21 related to the shift to our North American-based manufacturing and supply chain strategy that will not recur in future quarters.
- AYRO aims to introduce the AYRO Z by year-end.
- The AYRO Z is intended to be positioned for sale on the General Services Administration (GSA) schedule beginning in the fourth quarter of 2022.
Challenges Ahead
- Supply chain disruptions
- Continued impact from the coronavirus epidemic
- The costs, delays, and logistics of sourcing our components from China are less than ideal
- AYRO has a history of losses and has never been profitable
- The market for AYRO’s products is developing and may not develop as expected and AYRO, accordingly, may never meet its targeted production and sales goals