Workflow
QuantumScape(QS) - 2024 Q2 - Quarterly Results
QSQuantumScape(QS)2024-07-24 20:19

Financial Performance - GAAP operating expenses for Q2 were 134.5million,withaGAAPnetlossof134.5 million, with a GAAP net loss of 123.0 million; Adjusted EBITDA loss was 72.5million[12]−Thecompanymaintainsitsfull−year2024guidanceforAdjustedEBITDAlosstobebetween72.5 million[12] - The company maintains its full-year 2024 guidance for Adjusted EBITDA loss to be between 250 million and 300million[12]−OperatingexpensesforthethreemonthsendedJune30,2024,were300 million[12] - Operating expenses for the three months ended June 30, 2024, were 134,457 thousand, up from 123,542thousandforthesameperiodin2023,indicatinganincreaseofapproximately11.5123,542 thousand for the same period in 2023, indicating an increase of approximately 11.5%[30] - Research and development expenses rose to 97,746 thousand for the three months ended June 30, 2024, compared to 86,453thousandforthesameperiodin2023,markinganincreaseofabout13.286,453 thousand for the same period in 2023, marking an increase of about 13.2%[30] - Net loss attributable to common stockholders for the three months ended June 30, 2024, was (122,975) thousand, compared to (116,521)thousandforthesameperiodin2023,reflectingalossincreaseofapproximately5.5(116,521) thousand for the same period in 2023, reflecting a loss increase of approximately 5.5%[30] - The GAAP net loss attributable to common stockholders for the three months ended June 30, 2024, was 122,975,000, compared to a loss of 116,521,000forthesameperiodin2023,representinganincreaseof3.9116,521,000 for the same period in 2023, representing an increase of 3.9%[32] - Adjusted EBITDA for the three months ended June 30, 2024, was (72,513,000), compared to (63,522,000)forthesameperiodin2023,indicatingadeclineof14.9(63,522,000) for the same period in 2023, indicating a decline of 14.9%[32] - Non-GAAP operating loss for the three months ended June 30, 2024, was (86,632,000), up from (73,550,000)inthesameperiodof2023,reflectinga17.8(73,550,000) in the same period of 2023, reflecting a 17.8% increase in losses[32] - Basic and diluted net loss per share for the three months ended June 30, 2024, was (0.25), compared to (0.26)forthesameperiodin2023,indicatingaslightimprovementinlosspershare[30]CashFlowandLiquidity−ThecompanyendedQ2with(0.26) for the same period in 2023, indicating a slight improvement in loss per share[30] Cash Flow and Liquidity - The company ended Q2 with 938 million in liquidity, supporting its ongoing development and production efforts[12] - Cash, cash equivalents, and restricted cash at the end of the period increased to 214,436thousandfrom214,436 thousand from 250,363 thousand at the beginning of the period, showing a decrease of about 14.3%[31] - Net cash used in operating activities for the three months ended June 30, 2024, was (65,151)thousand,comparedto(65,151) thousand, compared to (57,675) thousand for the same period in 2023, indicating an increase in cash outflow of approximately 12.9%[31] - Proceeds from maturities of marketable securities were 509,204thousandforthethreemonthsendedJune30,2024,comparedto509,204 thousand for the three months ended June 30, 2024, compared to 261,440 thousand for the same period in 2023, representing an increase of about 94.9%[31] Assets and Liabilities - Total current assets decreased from 1,083,517thousandasofDecember31,2023,to1,083,517 thousand as of December 31, 2023, to 973,469 thousand as of June 30, 2024, representing a decline of approximately 10.2%[29] - Total liabilities increased from 161,801thousandasofDecember31,2023,to161,801 thousand as of December 31, 2023, to 214,702 thousand as of June 30, 2024, reflecting an increase of about 32.5%[29] - Total stockholders' equity decreased from 1,338,407thousandasofDecember31,2023,to1,338,407 thousand as of December 31, 2023, to 1,180,269 thousand as of June 30, 2024, reflecting a decline of approximately 11.8%[29] Production and Technology Developments - QuantumScape announced a licensing agreement with PowerCo, extending its cash runway into 2028, an 18-month increase from previous guidance[1] - The agreement includes a 130millionprepaymentofroyaltiesandanon−exclusivelicenseforaninitialproductionvolumeof40GWhperyear,withanoptiontoexpandto80GWh,sufficientforapproximatelyonemillionvehiclesannually[2]−TheRaptorprocessisontracktoenableinitiallow−volumeB−sampleproductionoftheQSE−5product,withCobrasettofacilitatehigher−volumeproductionnextyear[6]−PrototypecellsbasedontheAlpha−2designdemonstratedthermalstabilityupto300°C,significantlyhigherthanconventionallithium−ioncells,whichfailbetween174°Cand185°C[9]−ThecollaborationwithPowerCoisexpectedtominimizethetimetogigawatt−hourscaleproductionandpotentiallyquadruplecapacitycomparedtothepreviousjointventurearrangement[20]−ThepartnershipwithPowerCoisseenasatemplateforfuturecollaborations,leveragingtheirindustrialexpertisetoaddressproductionchallenges[4]OtherFinancialInformation−Stock−basedcompensationforthethreemonthsendedJune30,2024,was130 million prepayment of royalties and a non-exclusive license for an initial production volume of 40 GWh per year, with an option to expand to 80 GWh, sufficient for approximately one million vehicles annually[2] - The Raptor process is on track to enable initial low-volume B-sample production of the QSE-5 product, with Cobra set to facilitate higher-volume production next year[6] - Prototype cells based on the Alpha-2 design demonstrated thermal stability up to 300°C, significantly higher than conventional lithium-ion cells, which fail between 174°C and 185°C[9] - The collaboration with PowerCo is expected to minimize the time to gigawatt-hour scale production and potentially quadruple capacity compared to the previous joint venture arrangement[20] - The partnership with PowerCo is seen as a template for future collaborations, leveraging their industrial expertise to address production challenges[4] Other Financial Information - Stock-based compensation for the three months ended June 30, 2024, was 47,825,000, slightly down from 49,992,000inthesameperiodof2023[32]−DepreciationandamortizationexpenseforthethreemonthsendedJune30,2024,was49,992,000 in the same period of 2023[32] - Depreciation and amortization expense for the three months ended June 30, 2024, was 14,119,000, compared to 10,028,000forthesameperiodin2023,showinga40.810,028,000 for the same period in 2023, showing a 40.8% increase[32] - Interest expense for the three months ended June 30, 2024, was (11,454,000), compared to $(6,717,000) for the same period in 2023, indicating an increase in interest costs[32] Legal and Forward-Looking Statements - The company is currently involved in a pending settlement of a securities class action litigation, which may impact future financial results[32] - Forward-looking statements indicate that the company anticipates future developments in its battery technology and operational plans, although specific outcomes remain uncertain[34] - The company emphasizes the importance of reviewing reconciliations of non-GAAP financial measures to GAAP measures for a comprehensive understanding of financial performance[33]