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Jun 30, 2024
Eve Q2 2024 Earnings Report
Eve reported a net loss due to higher Research & Development expenses, despite a decrease in Selling, General & Administrative expenses and a positive impact in the fair value of outstanding derivatives.
Key Takeaways
Eve Air Mobility reported a net loss of $36.4 million in Q2 2024, which increased compared to a net loss of $31.4 million in Q2 2023. The increase was primarily driven by higher Research & Development expenses, partially offset by lower Selling, General & Administrative expenses and a gain in the fair value of derivatives. Eve's total cash used by operations and capital expenditures in 2Q24 was $31.4 million.
Net loss increased due to higher Research & Development (R&D) expenses.
SG&A decreased primarily driven by lower outsourced services and payroll costs.
Eve entered into subscription agreements for $95.6 million in new equity financing after 2Q24.
Eve's total cash used by operations and capital expenditures in 2Q24 was $31.4 million.
Eve
Eve
Forward Guidance
Eve expects sequentially higher investments and expenses in the quarters ahead due to intensifying engineering engagement as well as potential supplier payments. Eve expects a total cash consumption between $130 and $170 million in 2024.
Positive Outlook
- The additional funding will strengthen our Balance Sheet and will help support our operations and program investments in the upcoming years.
- Eve continues to progress with its eVTOL development and testing phase, and has achieved key program milestones.
- Eve also secured additional Service & Operations Solutions contracts with customers that increases our revenue visibility as we enter into service, aided by Embraer’s heritage and global network.
- Eve has now selected and contracted most of the component suppliers for our eVTOL.
- Eve is planning on expanding the site’s capacity on a modular basis, with four equally-sized modules with a capacity for 120 units/year, for a disciplined and capital-efficient investment approach.
Challenges Ahead
- Eve is pre-revenue; we do not expect meaningful revenues, if any, during the development phase of our aircraft.
- Net loss increased due to higher Research & Development (R&D).
- Operating cash consumption production site, Eve expects a total cash consumption between $130 and $170 million in 2024.
- The initial order pipeline is based on non-binding LOIs and is therefore subject to change, consistent with customary aviation practices.
- As of 2Q24, Eve has deployed $67.3 million in the program, additional program activities will require an increase in the number of engineering hours.