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Zapata Computing Holdings (ZPTA) investor relations material

Zapata Computing Holdings Q2 2024 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q2 2024 earnings summary14 Aug, 2024

Executive summary

  • Q2 2024 revenue grew to $2.0M, up 40% year-over-year, driven by software license deliveries and strong enterprise demand.

  • Completed merger with Andretti Acquisition Corp., resulting in Nasdaq listing and significant changes to capital structure and reporting.

  • Expanded partnerships with Andretti Global, DARPA, D-Wave, Tech Mahindra, KPMG, and a new CRADA with U.S. Special Operations Command.

  • Net loss widened to $15.6M, impacted by one-time public listing costs and $8.2M non-cash derivative liability expense.

  • Substantial doubt exists about ability to continue as a going concern due to recurring losses and need for additional capital.

Financial highlights

  • Q2 2024 revenue: $2.0M (up from $1.43M Q2 2023); gross margin: 36% (up from 19.7%).

  • Operating loss: $7.37M; net loss: $15.6M, including $8.2M non-cash charge from derivative liability.

  • Operating expenses rose to $8.1M, mainly due to $2.8M in professional services and public company costs.

  • Cash and equivalents at June 30, 2024: $7.16M; net cash used in operations: $6.11M in Q2 2024.

  • Weighted-average shares outstanding: 32.2M in Q2 2024.

Outlook and guidance

  • Management expects continued growth as the $30M+ sales pipeline matures, with gross margins improving as projects advance.

  • No specific forward guidance; one-time public company charges expected to moderate in H2 2024.

  • Ongoing operating losses and negative cash flows anticipated as investments in R&D and sales continue.

  • Substantial additional funding is needed to support operations and growth strategy.

  • Company is pursuing all available funding options, including public and private investments.

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Frequently asked questions

Zapata Computing Holdings Inc. is a company that specializes in industrial generative artificial intelligence software. It develops subscription-based solutions designed to address complex challenges across various industries, including defense, manufacturing, automotive, and finance. The company’s offerings include its proprietary platform, Orquestra, which accelerates the Model Development Lifecycle (MDLC) and enables the deployment of AI applications tailored to specific industrial needs. Zapata Computing is headquartered in Boston, Massachusetts, and its shares are listed on the NASDAQ.

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