SES AI (SES) Q4 2023 earnings summary

Executive summary

• Pre-commercialization Li-Metal battery developer; no customer revenue to date and net losses expected until at least 2028 as commercialization is targeted for 2027.

• Transitioned from A-Sample to B-Sample development in Q4 2023; one OEM B-Sample JDA was signed in November.

Financial highlights

• FY2023 operating expenses were $78.2M, down 1.8% YoY; R&D rose 9.7% to $30.7M while G&A fell 8.0% to $47.5M.

• FY2023 operating loss was $78.2M and net loss was $53.4M, versus $79.6M and $51.0M, respectively, in FY2022.

• Interest income increased to $16.7M from $6.2M; the Sponsor Earn-Out fair-value gain was $6.8M, down from $25.4M in FY2022.

• Cash, cash equivalents and short-term investments totaled $332.4M at Dec. 31, 2023; accumulated deficit was $198.7M.

Outlook and guidance

• B-Sample development and initial production targeted for 2024, C-Samples for 2026, and commercial production for 2027; operating and net losses are expected through at least 2028.

• FY2024 R&D expense and capital expenditures are expected to increase significantly as hiring, cell testing, prototype development and pilot-facility expansion continue.

• Cash and marketable securities are expected to fund working capital and capex for at least 12 months from the report date and through commercialization; additional capital may be needed for delays or U.S. supply-chain investment.