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Dec 31, 2021
AYRO Q4 2021 Earnings Report
Announced year-end 2021 financial results and provided a corporate update.
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