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Sep 30, 2022
Eve Q3 2022 Earnings Report
Eve reported a net loss due to higher R&D and SG&A expenses, as well as non-cash charges related to warrant expenses.
Key Takeaways
Eve Air Mobility reported a net loss of $36.7 million in Q3 2022, driven by increased R&D and SG&A expenses, and non-cash warrant expenses. The company's cash position at the end of the quarter was $329.9 million. Eve also announced support from Brazil’s National Development Bank (BNDES) with two credit lines totaling $92.5 million.
Net loss of $36.7 million in 3Q22, compared to $3.8 million in 3Q21.
R&D expenses increased to $14.3 million in 3Q22, driven by a Master Service Agreement (MSA) with Embraer.
Net cash provided by financing activities reached $15.0 million in 3Q22, supported by investment from United Airlines.
Cash position of $329.9 million at the end of 3Q22.
Forward Guidance
Management expects cash consumption to intensify going forward, as further program advancements will demand increased engineering, test and administrative support through its direct employees, suppliers and our MSA agreement with Embraer and Atech.
Positive Outlook
- Partnership with Porsche Consulting to establish a flexible and cost-effective industrialization strategy.
- Initial production site planned in Brazil to maximize synergies with product development and Embraer's expertise.
- United Airlines Ventures invested $15 million in Eve with a conditional purchase agreement for 200 aircraft plus 200 options.
- Eve conducted a North American UAM simulation in Chicago to study operations and passenger journeys.
- Eve is developing Urban Air Traffic Management (UATM) software to safely scale the UAM industry globally.
Challenges Ahead
- Expected increase in cash consumption as program advancements require more support.
- Potential changes in the initial order pipeline as it is based on non-binding letters of intent.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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