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Sep 30, 2023
Eve Q3 2023 Earnings Report
Eve reported a net loss, driven by increased R&D and SG&A expenses, which were partially offset by financial investment income and FX gains.
Key Takeaways
Eve Air Mobility reported a net loss of $31.2 million in Q3 2023, compared to a net loss of $36.7 million in Q3 2022. The increased losses were primarily due to higher Research & Development (R&D) and Selling, General & Administrative (SG&A) expenses, partially offset by financial investment income and FX gains. Total liquidity, including undrawn BNDES credit lines, stood at $342.5 million.
Net loss was $31.2 million in Q3 2023, compared to $36.7 million in Q3 2022.
R&D expenses doubled to $28.6 million, driven by the Master Service Agreement (MSA) with Embraer.
Total cash consumption was $22.4 million in Q3 2023, compared to $17.3 million in Q3 2022.
Cash, cash equivalents, financial investments, and related-party loan with Embraer totaled $256.4 million at the end of Q3 2023.
Eve
Eve
Forward Guidance
Eve anticipates total cash consumption between $130 and $150 million for 2023, primarily in the eVTOL development program and SG&A expenses. They expect to continue drawing from BNDES credit lines through the end of 2024 and are confident that their current liquidity is sufficient to fund operations well into 2025.
Positive Outlook
- Expects to continue drawing from BNDES credit lines through the end of 2024.
- Confident that current liquidity is sufficient to fund operations well into 2025.
- Eve anticipates 2023 total cash consumption to be closer to the low end of the expected range of $130 to $150 million.
- Initiated the Joint-Definition Phase (JDP) of development program.
- Eve received initial funds from Brazil’s National Development Bank to support eVTOL development
Challenges Ahead
- Expects sequentially higher investments and expenses in the quarters ahead due to intensifying engineering engagement as well as potential supplier payments.
- Additional program activities will require an increase in the number of engineering hours and the acquisition of raw materials and parts/components to continue building full-scale prototype.
- Potential supplier payments will now occur in 2024 given Eve’s continuous effort to preserve cash, shifting cash outflow and payments to the right from 4Q23 to 1Q24 onwards.
- Will continue to select suppliers and receive equipment during the remainder of 2023 and first half of 2024 that will trigger additional cash consumption in the coming months.
- Cash-consumption estimates are calculated using an expected exchange rate of R$5.20/US$1 for the full year of 2023