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Sep 30, 2021

Archer Aviation Q3 2021 Earnings Report

Archer debuted as a public company and shared its Q3 2021 financial results.

Key Takeaways

Archer Aviation successfully completed its business combination in September and received $802M in net cash proceeds. The company exited the quarter with $796 million in cash and cash equivalents. GAAP operating expense of $176 million plus interest expense related to our SVB loan resulted in a third quarter GAAP net loss of $177 million. Our third quarter non-GAAP operating expense was $29M, resulting in an adjusted EBITDA loss of $28M.

Completed business combination and received $802M in net cash proceeds.

Exited the quarter with $796M in cash and cash equivalents.

Reached agreement with the FAA on a certification basis of our eVTOL aircraft through a signed G-1 Issue Paper.

Relocated Maker from design and development facility to the hangar facility from which we will conduct our Maker test fights.

EPS
-$2
Previous year: -$0.32
+525.0%
Total Operating Expenses
$176M
Net Loss
-$177M
Adjusted EBITDA
-$28M
Cash and Equivalents
$796M
Previous year: $146K
+545864.6%
Free Cash Flow
-$59.6M
Previous year: -$15.6M
+281.9%
Total Assets
$806M
Previous year: $385K
+209361.0%

Archer Aviation

Archer Aviation

Forward Guidance

For Q4 2021, Archer anticipates total GAAP operating expense of $65 - 70 million and non-GAAP operating expense of $35 - 40 million.

Positive Outlook

  • Continued progress on path to Type Certification of our production aircraft.
  • Agreed upon a G-1 Certification Basis with the FAA in September.
  • Working towards goal of receiving our G-2 Issue Paper in 2022 and our Type Certification of our production aircraft before the end of 2024.
  • Plan to begin construction on manufacturing facility in 2022 and target having construction completed in 2023.
  • Intend to launch and begin initial testing of our mobile booking application in 2023 to optimize a seamless experience for our customers.

Challenges Ahead

  • Key challenges and critical milestones ahead on our path to commercialization of our aircraft and UAM ecosystem.
  • Conducting Maker’s first test flight, which is planned to be a hover flight occurring later this year.
  • Impact of future fair market value of our common stock and other factors on stock-based compensation expense.
  • Certain items that impact non-GAAP operating expense are uncertain or out of our control and cannot be reasonably predicted.
  • Stock-based compensation expense is impacted by factors difficult to predict, subject to frequent change, or not within our control.