Financial Performance - Xos achieved a record revenue of $56.0 million in 2024, representing a 25% increase from $44.5 million in 2023[4] - Revenues for Q4 2024 were $11,474,000, a decrease of 37.5% compared to $18,376,000 in Q4 2023[21] - Net loss for Q4 2024 was $(18,981,000), compared to a net loss of $(13,827,000) in Q4 2023, representing a 37.5% increase in losses[21] - The company reported a total comprehensive loss of $(18,981,000) for Q4 2024, compared to $(13,827,000) in Q4 2023[21] Unit Deliveries - The company delivered 297 units in 2024, up from 283 units in 2023[4] - Xos received its largest customer order in 2025 for 193 units from UPS, expected to be delivered in 2025[4] - The company launched the next-generation Xos Hub and received a significant order for 19 units sold to Caltrans[4] - Xos's outlook for 2025 projects revenue between $50.2 million and $65.8 million, with unit deliveries forecasted between 320 and 420 units[6] Gross Margins and Operating Expenses - GAAP gross margins improved from a negative 2.9% in 2023 to positive 7.1% in 2024, while non-GAAP gross margins increased from negative 5.2% to positive 18%[4] - Operating expenses were reduced by $13.8 million, or 21.7%, compared to 2023[4] - Total operating expenses for Q4 2024 were $10,855,000, down 17.5% from $13,155,000 in Q4 2023[21] - Research and development expenses for Q4 2024 were $1,936,000, down 53.4% from $4,143,000 in Q4 2023[21] Cash Flow and Liquidity - The company reported $3.3 million of net cash provided by operating activities and achieved its first quarter of positive Free Cash Flow of $3.3 million[1] - Free cash flow for Q4 2024 was $3,298,000, compared to $(852,000) in Q4 2023, indicating a significant improvement[22] - Cash and cash equivalents stood at $11.0 million as of December 31, 2024, compared to $11.6 million in 2023[20] Liabilities - The total liabilities increased to $64.7 million in 2024 from $48.5 million in 2023[20] Losses and Improvements - Gross loss for Q4 2024 was $(3,717,000), compared to a gross profit of $1,327,000 in Q4 2023[21] - Non-GAAP operating loss for Q4 2024 was $(6,365,000), an improvement from $(10,926,000) in Q4 2023[22] - Non-GAAP gross profit for Q4 2024 was $2,667,000, compared to $631,000 in Q4 2023, showing a positive trend[22] Shareholder Information - The weighted average shares outstanding increased to 8,034,000 in Q4 2024 from 5,933,000 in Q4 2023 due to a reverse stock split[21]

Xos, Inc. (XOS) Q4 2024 Earnings Conference Call March 28, 2025 04:30 PM ET Company Participants Conference Call Operator - OperatorDavid Slaciu - General CounselDakota Semler - Chief Executive OfficerGiordano Sordoni - Chief Operating OfficerLiana Pagosian - Acting Chief Financial OfficerConference Call Moderator - Moderator Conference Call Participants Craig Irwin - Analyst, Roth Capital PartnersMike Schliske - Analyst, D.A. DavidsonTed Jackson - Analyst, Northland Securities Conference Call Operator Good ...

Core Insights - Xos, Inc. reported a significant financial performance for the year 2024, achieving $56.0 million in revenue, a 25% increase from $44.5 million in 2023 [4][6] - The company achieved its first positive Free Cash Flow of $3.3 million and positive gross margins of approximately 7% for GAAP and 18% for non-GAAP [1][6] - Xos expanded its customer base and product offerings, including partnerships with Blue Bird and UPS, marking a successful year of innovation and growth [3][6] Financial Highlights - For Q4 2024, revenues were $11.5 million, down from $15.8 million in Q3 2024, while the full year revenue was $56.0 million compared to $44.5 million in 2023 [4][6] - The company reported a net loss of $19.0 million for Q4 2024, an increase from a net loss of $10.5 million in Q3 2024, but a significant reduction from a net loss of $75.8 million in 2023 [4][6] - Non-GAAP gross profit for the full year was $10.0 million, compared to a loss of $2.3 million in 2023, indicating improved operational efficiency [4][6] Operational Achievements - Xos delivered 297 units in 2024, an increase from 283 units in 2023, reflecting growth in production capabilities [6] - The company successfully launched the next-generation Xos Hub and received a significant order for 19 units from Caltrans [6] - Xos has become a primary electric vehicle vendor for last-mile delivery fleets at UPS and FedEx Ground, showcasing its market penetration [3][6] 2025 Outlook - The company projects revenues between $50.2 million and $65.8 million for 2025, with expected unit deliveries ranging from 320 to 420 units [7][6] - Non-GAAP operating loss is anticipated to improve to between $17.2 million and $14.0 million [7] - Xos aims to continue its growth trajectory by leveraging its technological advancements and expanding its customer base [6]

Core Viewpoint - Xos, Inc. is set to release its fourth quarter 2024 operating results on March 28, 2025, followed by a conference call to discuss these results [1]. Group 1: Conference Call and Webcast Details - The conference call will take place on March 28, 2025, at 4:30 p.m. EDT / 1:30 p.m. PDT [2]. - Participants can access the call via a U.S. toll-free number or an international dial-in option, with a conference ID provided for access [2]. - An audio replay of the call will be available until midnight on March 28, 2025, with specific numbers provided for replay access [3]. Group 2: Company Overview - Xos, Inc. is a prominent technology company specializing in electric truck manufacturing and fleet services for battery-electric fleets [4]. - The company focuses on medium- and heavy-duty commercial vehicles designed for last-mile and back-to-base routes, utilizing proprietary technologies for cost efficiency [4]. - Xos vehicles are positioned as easier to maintain and more cost-effective on a total cost of ownership basis compared to traditional internal combustion engine vehicles [4].

Core Insights - Xos, Inc. has successfully added its Xos Hub™ to the General Services Administration (GSA) Schedule, facilitating easier procurement for federal agencies [1][3] - The Xos Hub™ is designed to provide significant cost savings for federal agencies by reducing operational expenses associated with electric vehicles (EVs) [2] - The Hub is a mobile energy storage system and DC fast charger that can be operational within a day, bypassing common infrastructure deployment delays [2][4] Company Overview - Xos, Inc. specializes in fleet electrification and energy solutions, focusing on medium- and heavy-duty commercial vehicles [8] - The company leverages proprietary technologies to deliver sustainable transportation solutions that enhance total cost of ownership (TCO) and reduce maintenance needs [8] Product Features - The Xos Hub™ is a trailer-mounted, rapidly deployable EV charging unit that eliminates lengthy infrastructure and permitting requirements [4][5] - It is designed for various applications, including stopgap charging for EV fleets, remote charging, and backup power during outages [4] - The Hub ensures interoperability with a wide range of OEMs and vehicle models, making it a versatile mobile charging solution [5][6] Procurement Process - The Xos Hub™ is available for purchase on GSA Advantage, which streamlines the government procurement process with pre-established pricing and terms [3] - The procurement process is expedited for government buyers, allowing for quicker identification of needs and purchasing [3]

Core Insights - Xos, Inc. has received a purchase order from Crown Linen Service, Inc. for two fully electric 22' stepvans, highlighting a commitment to sustainability and reducing environmental impact [1] - The integration of electric vehicles into Crown Linen's fleet is part of their strategy to provide environmentally responsible services while maintaining efficiency and reliability [2] - Xos' electric vehicles are designed to deliver long-term total cost of ownership (TCO) savings, making them a cost-effective choice for businesses [2][3] Company Overview - Xos, Inc. is a technology company and electric truck manufacturer focused on battery-electric fleets, specifically for medium- and heavy-duty commercial vehicles [4] - The company utilizes proprietary technologies to offer battery-electric vehicles that are easier to maintain and more cost-efficient compared to internal combustion engine vehicles [4] Crown Linen Service, Inc. Overview - Founded in 1914, Crown Linen Service, Inc. specializes in linen and uniform rental services, serving various industries including healthcare and food and beverage [5] - The company has a strong reputation for excellence and has been family-owned and operated for over 100 years [5] Sustainability Initiatives - Crown Linen has implemented several sustainability initiatives, including waste reduction, recycling programs, and energy efficiency measures [6][8][9] - The company is transitioning to electric vehicles as part of its broader sustainability goals, which also include solar panel installations and upgraded lighting systems [10][9] Industry Trends - The uniform and linen industry is increasingly adopting electric vehicles to enhance sustainability efforts while improving operational efficiency [3]

Financial Performance - Revenues for Q3 2024 were $15,790,000, a decrease of 5.4% compared to $16,696,000 in Q3 2023[19] - Gross profit for Q3 2024 was $2,864,000, compared to a gross profit of $1,985,000 in Q3 2023, indicating an improvement in profitability[19] - Total operating expenses decreased to $12,555,000 in Q3 2024 from $14,610,000 in Q3 2023, reflecting cost reduction efforts[19] - The net loss for Q3 2024 was $10,512,000, an improvement from a net loss of $14,107,000 in Q3 2023[19] - Total comprehensive loss for the three months ended September 30, 2023, was $(14,051) thousand, compared to $(10,512) thousand for the same period in 2024, indicating a decrease of 3,539 thousand[20] - Net loss per share (diluted) for the three months ended September 30, 2023, was $(2.40), while for the same period in 2024, it improved to $(1.32), reflecting a 45% reduction in loss per share[20] - The net and comprehensive loss for the three months ended September 30, 2024, was $(10,512) thousand, compared to $(14,051) thousand for the same period in 2023, indicating an improvement of 25%[23] - The total comprehensive loss for the nine months ended September 30, 2023, was $(61,277) thousand, while for the same period in 2024, it was $(31,178) thousand, reflecting a significant reduction of 49%[20] - The company reported a net loss of $(23,578) thousand for the six months ended June 30, 2023, which improved to $(9,663) thousand for the same period in 2024, indicating a 59% reduction in losses[23] - The net loss for the nine months ended September 30, 2024, was $31.2 million, compared to a net loss of $62.0 million for the same period in 2023, indicating a 49.7% improvement[25] Cash and Liquidity - Cash and cash equivalents decreased to $8,432,000 as of September 30, 2024, down from $11,640,000 at the end of 2023[18] - The company is focused on improving liquidity and working capital availability through operational cost reduction measures[6] - The company plans to continue raising capital through various strategies, including debt financing and equity financing, to support its operations and growth[40] - The company’s liquidity is critical as it continues to incur net losses and cash outflows while scaling operations to meet anticipated demand[37] - The company’s ability to access capital is uncertain, which raises substantial doubt about its ability to continue as a going concern[39] - As of September 30, 2024, the Company has substantial doubt about its ability to continue as a going concern for at least one year, unless it can collect on accounts receivable or obtain new capital[42] Assets and Liabilities - Accounts receivable increased significantly to $36,441,000 as of September 30, 2024, compared to $15,142,000 at the end of 2023, indicating potential growth in sales[18] - Inventories rose to $42,398,000 as of September 30, 2024, up from $37,843,000 at the end of 2023, suggesting increased production or stockpiling[18] - The company reported a total of $120,513,000 in assets as of September 30, 2024, compared to $93,684,000 at the end of 2023, reflecting overall growth[18] - The total stockholders' equity decreased from $57,560 thousand as of September 30, 2023, to $50,841 thousand by September 30, 2024, a decline of approximately 12%[23] - Other current liabilities increased to $21.31 million as of September 30, 2024, compared to $16.82 million as of December 31, 2023[73] - Other non-current liabilities rose to $18.94 million as of September 30, 2024, from $8.56 million as of December 31, 2023[74] Operational Performance - In Q3 2024, the company delivered 78 vehicles and 16 powertrains, a decrease from 104 vehicles and 1 powertrain in Q3 2023, representing a 25% decline in vehicle deliveries[171] - Revenue for Q3 2024 was $14.9 million, down from $16.0 million in Q3 2023, reflecting a 6.9% decrease, with 95% of revenue from vehicle and powertrain sales[171] - For the nine months ended September 30, 2024, the company delivered 216 vehicles and 30 powertrains, compared to 171 vehicles and 3 powertrains in the same period of 2023, marking a 26.4% increase in vehicle deliveries[173] - Revenue for the nine months ended September 30, 2024, was $41.5 million, up from $24.8 million in the same period of 2023, indicating a 67.9% increase, with 93% of revenue from vehicle and powertrain sales[173] Strategic Initiatives - Future growth strategies include the commercialization of new products and services, as well as potential market expansion and strategic partnerships[6] - The company acquired ElectraMeccanica on March 26, 2024, for a total consideration of 1,766,388 shares of Common Stock, supplemented by approximately $50.2 million in net cash[177] - The company implemented a reduction in workforce, terminating approximately 26% of its total workforce to improve liquidity and working capital[178] - Senior executives, including the CEO and COO, accepted temporary salary reductions of 20% to 50% effective October 28, 2024, as part of cost-cutting measures[179] Stock and Financing - The Company issued Convertible Debentures totaling $35.0 million, with $20.0 million sold on August 11, 2022, and an additional $15.0 million on September 21, 2022[83] - The Company entered into a note purchase agreement with Aljomaih Automotive Co. for a convertible promissory note of $20.0 million, maturing on August 11, 2025[41] - The Company recorded interest expense of $0 in relation to the Convertible Debentures during the three months ended September 30, 2024, compared to $0.2 million for the same period in 2023[96] - The Company recorded interest expense of $0.5 million related to the Note during the three months ended September 30, 2024, consistent with the same period in 2023[103] Market and Economic Conditions - Supply chain disruptions continue to impact the company, with ongoing shortages for specific components and increased shipping costs due to global economic conditions[183] - The stock price as of September 30, 2024, was $4.55, down from $7.98 on December 31, 2023, reflecting a decrease of 43.5%[162]

Financial Data and Key Metrics Changes - The company generated $15.8 million in revenue for Q3 2024, an increase from $15.5 million in Q2 2024, with a gross margin of 18.1% compared to 13.1% in the previous quarter [5][25][26] - Operating expenses decreased to $12.6 million from $13.4 million in the prior quarter, leading to a non-GAAP operating loss of $6.6 million, improved from a loss of $9.7 million [27][28] - Cash and cash equivalents totaled $9.2 million, with negative free cash flow of $11.7 million, significantly improved from negative $26.1 million in Q2 2024 [28][29] Business Line Data and Key Metrics Changes - The company delivered 94 units in Q3 2024, a 4.4% increase from the previous quarter, with a notable ramp-up in hub product deliveries, shipping nearly 12 units [5][9][10] - The StepVan business saw a positive shift with increased strip chassis deliveries, enhancing working capital turnover [9][10] - The powertrain business delivered its first product for a Blue Bird school bus, indicating growth in the electric school bus market [9][10] Market Data and Key Metrics Changes - The company is experiencing growing momentum in customer and product diversity, with significant deliveries to major clients like Waymo and Xcel Energy [10][11][12] - The hub product is gaining traction, with increasing interest from various industries, reflecting strong demand for mobile charging solutions [12][13] Company Strategy and Development Direction - The company is focused on reducing operational expenses and improving cash flow, with measures including workforce reduction and temporary salary cuts for executives [16][29] - There is a strategic emphasis on enhancing production efficiency and cost reductions, particularly in the Tennessee facility, which is central to operations [19][20][23] - The company is adapting to potential federal changes, including tariffs on imported components, by reshoring production and diversifying supplier sources [21][22][23] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in the industry, including delays in charging infrastructure and customer pressures for competitively priced vehicles, but remains optimistic about long-term potential [33] - The company updated its revenue guidance for 2024, expecting a range of $54.1 million to $67.6 million, with a narrower non-GAAP operating loss forecast [31] Other Important Information - The backlog of delivered incentives exceeds $25 million, with efforts underway to streamline the collection process [14][30] - The company has implemented over $10,000 in cost reductions over the past year, with additional reductions planned [19] Q&A Session Summary Question: Opportunity on the drivetrain side - Management highlighted the immense opportunity in the powertrain business, leveraging intellectual property for other OEMs, with markets like mobile command centers and school buses showing strong growth potential [36][37][39] Question: Inventory clarification - The company builds products to order, with raw materials accounting for about 70% of total inventory, and aims to optimize inventory flows [43][45] Question: Working capital improvements - Management acknowledged the need to reduce inventory turns and improve accounts receivable collection, anticipating significant progress in Q4 [56][60] Question: Convertible note and balance sheet - The convertible note has moved to current liabilities, with ongoing discussions about future plans as it matures in Q3 2025 [63][64] Question: Sale of energy credits - The company does not anticipate regular transactions of energy credits but expects periodic opportunities that could enhance margins [66][67]

Group 1: Earnings Performance - Xos, Inc. reported a quarterly loss of $1.32 per share, which was better than the Zacks Consensus Estimate of a loss of $1.39, and an improvement from a loss of $2.40 per share a year ago, resulting in an earnings surprise of 5.04% [1] - The company has surpassed consensus EPS estimates for the last four quarters, but reported revenues of $15.79 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 28.67% and down from $16.7 million year-over-year [2] Group 2: Stock Performance and Outlook - Xos shares have declined approximately 35.6% since the beginning of the year, contrasting with the S&P 500's gain of 25.5% [3] - The company's future stock performance will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] Group 3: Earnings Estimates and Industry Context - The current consensus EPS estimate for the upcoming quarter is -$1.34 on revenues of $25.16 million, and for the current fiscal year, it is -$5.37 on revenues of $75.99 million [7] - The Automotive - Domestic industry, to which Xos belongs, is currently ranked in the bottom 27% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Revenue and Deliveries - Generated revenues of $15.8 million in Q3 2024, a slight increase of 1.9% from $15.5 million in Q2 2024, but a decrease of 5.4% from $16.7 million in Q3 2023[2] - Delivered 94 units in Q3 2024, up from 90 units in Q2 2024, but down from 105 units in Q3 2023[2] - Revenues for the three months ended September 30, 2024, were $15,790, a decrease of 5.4% compared to $16,696 for the same period in 2023[16] - Forecasted unit deliveries for 2024 are between 320 and 400 units, including stepvans and powertrain products[4] Financial Performance - Reported a net loss of $10.5 million in Q3 2024, compared to a net loss of $9.7 million in Q2 2024[3] - The net loss for the three months ended September 30, 2024, was $(10,512), an improvement from $(14,107) in the same period of 2023[16] - Non-GAAP operating loss for the three months ended September 30, 2024, was $(6,643), compared to $(11,219) for the same period in 2023, indicating a significant reduction in operational losses[18] - Free cash flow for the three months ended September 30, 2024, was $(11,665), compared to $(8,423) for the same period in 2023, reflecting increased cash usage[17] - The company reported a total comprehensive loss of $(10,512) for the three months ended September 30, 2024, compared to $(14,051) for the same period in 2023[16] Margins and Profitability - Achieved gross margins of 18.1% in Q3 2024, an increase from 13.1% in Q2 2024 and 11.9% in Q3 2023[2] - Non-GAAP gross profit for Q3 2024 was $3.7 million, up from $2.0 million in Q2 2024[3] - Gross profit for the three months ended September 30, 2024, was $2,864, an increase from $1,985 in the same period last year, resulting in a gross margin improvement[16] - Non-GAAP gross profit for the three months ended September 30, 2024, was $3,665, compared to $1,149 for the same period in 2023, showing a substantial improvement[19] Expenses and Cash Flow - Total operating expenses decreased to $12,555 for the three months ended September 30, 2024, down from $14,610 in the same period of 2023, reflecting a reduction of 14.5%[16] - Research and development expenses for the three months ended September 30, 2024, were $2,619, down from $4,516 in the same period of 2023, a decrease of 42%[16] - Cash and cash equivalents decreased to $9.2 million as of September 30, 2024, down from $20.7 million at the end of Q2 2024[3] Assets and Outlook - Total assets increased to $120.5 million as of September 30, 2024, compared to $93.7 million at the end of 2023[13] - The company revised its 2024 revenue outlook to between $54.1 million and $67.6 million[4] - Xos began serial production of the Xos Hub, a multi-EV mobile charger, addressing the urgent need for charging infrastructure[2]