Canoo (GOEV) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 revenue of $605,000, driven by USPS deliveries, DoD DIU contract revenue, and expansion in the UK and Saudi Arabia markets.

• Delivered first right-hand drive LDV 190s to USPS, completed rigorous field testing, and advanced pilots with Red Sea Global and in the UK and Saudi Arabia.

• Relocated headquarters to Texas, continued migration to Oklahoma facilities, and acquired Arrival U.K. manufacturing assets.

• Received multiple design and industry awards, including Red Dot and Green Good Design.

• Implemented employee reorganization at Torrance, CA, with up to $3M in charges.

Financial highlights

• Q2 2024 revenue reached $605,000, the highest to date, with cost of revenue at $1.8M and a negative gross margin of $1.2M.

• Adjusted EBITDA for Q2 2024 was $(38.6)M, a 38% year-over-year and 20% sequential improvement.

• Adjusted Net Loss per share improved to $(0.61) from $(3.14) year-over-year.

• GAAP net loss for Q2 2024 was $(5.0)M, compared to $(70.9)M in Q2 2023, aided by a $48.3M gain on fair value change of warrant and derivative liability.

• Cash, cash equivalents, and restricted cash were $19.1M as of June 30, 2024; pro forma for July PPA proceeds, $33.2M.

Outlook and guidance

• Reaffirmed prior cash flow guidance; expects Adjusted EBITDA between $(120)M and $(140)M for H2 2024.

• Focus remains on finalizing customer configurations, aligning production for 2025–2026, and expanding in the UK and Saudi Arabia.

• Substantial doubt exists about the ability to continue as a going concern without additional capital.