Achieved 45% quarter-over-quarter and 137% year-over-year growth in unit deliveries
Achieved 18% quarter-over-quarter and 227% year-over-year revenue growth
Delivered fourth consecutive quarter of positive gross margins
Reaffirming annual guidance of the remainder of the year
LOS ANGELES, Aug. 13, 2024 (GLOBE NEWSWIRE) — Xos, Inc. (NASDAQ: XOS) (“Xos” or the “Company”), a leading electric truck manufacturer and fleet services provider, today reported financial results for the second quarter ended June 30, 2024.
Second Quarter 2024 Highlights:
- Generated revenues of $15.5 million, up from $13.2 million last quarter and $4.8 million in the second quarter of 2023
- Delivered 90 units, up from 62 units last quarter and 38 units in the second quarter of 2023
- Achieved gross margins of 13.1%, down from 21.2% last quarter, due to product mix shift and inventory adjustments, and up from negative 78.4% in the second quarter of 2023
- Announced strategic powertrain partnership with Blue Bird, a prominent school bus manufacturer leading the charge in EVs
Dakota Semler, Chief Executive Officer of Xos, commented, “Xos’ focus on building strong relationships with leading fleets, suppliers, and partners has positioned us to win. We are leveraging our first-mover advantage to grow our deliveries, maintain strong margins, and build a self-sustaining business. Our strategic partnerships with Blue Bird and Winnebago are a critical part of realizing these goals and a testament to the reliability, efficiency, and innovation that Xos is bringing to the commercial electric vehicle market.”
Second Quarter 2024 Financial Highlights
| (in millions) | 30 Jun 2024 | 31 Mar 2024 | 31 Dec 2023 | |||
| Inventories | $ | 41.4 | $ | 36.6 | $ | 37.8 |
| Cash and cash equivalents and restricted cash(1) | $ | 20.7 | $ | 47.3 | $ | 11.6 |
| Three Months Ended | ||||||
| (in millions) | 30 Jun 2024 | 31 Mar 2024 | ||||
| Revenues | $ | 15.5 | $ | 13.2 | ||
| Gross profit | $ | 2.0 | $ | 2.8 | ||
| Non-GAAP gross profit(2) | $ | 2.0 | $ | 1.7 | ||
| Net loss | $ | (9.7 | ) | $ | (11.0 | ) |
| Loss from operations | $ | (11.4 | ) | $ | (10.2 | ) |
| Non-GAAP operating loss(2) | $ | (9.7 | ) | $ | (9.3 | ) |
____________________________
(1) Includes cash and cash equivalents and restricted cash. Xos had no restricted cash at December 31, 2023.
(2) For further information about how we calculate Non-GAAP gross profit and Non-GAAP operating loss, see below for the reconciliations of GAAP to non-GAAP financial measures provided in the tables included in this release.
2024 Outlook:
Xos’ outlook for 2024 is as follows:
| Revenue | $66.7 to $100.4 million |
| Non-GAAP operating loss | $48.7 to $43.7 million |
| Unit Deliveries (1) | 400 to 600 units |
____________________________
(1) Unit deliveries forecast includes stepvans and our powertrain and Xos Hub products.
Liana Pogosyan, Acting Chief Financial Officer of Xos, added, “This quarter, we continued on our path to building the first self-sustaining commercial EV company in the U.S. by growing our revenues and maintaining strong gross margins. We expect to see further improvement in the second half of the year as delivery volumes increase.”
The outlook provided above is based on management beliefs and expectations as of the date of this press release. The results are based on assumptions that are believed to be reasonable as of this date, but may be materially affected by many factors, as discussed below in our “Cautionary Statement Regarding Forward-Looking Statements” disclaimer. Actual results may vary from the outlook above and the variations may be material. The Company undertakes no intent or obligation to publicly update or revise any of these projections, whether as a result of new information, future events or otherwise, except as required by law.
Conference Call and Webcast Details
To access the call, please dial in approximately ten minutes before the start of the call.
For those unable to participate in the live call, an audio replay will be available following the call through midnight Tuesday, August 27, 2024. To access the replay, please call 1-844-512-2921 or 1-412-317-6671 (International) and enter access code 10190972. A replay of the webcast will also be archived shortly after the call and can be accessed on the Company’s website.
About Xos, Inc.
Xos is a leading technology company, electric truck manufacturer, and fleet services provider for battery-electric fleets. Xos vehicles and fleet management software are purpose-built for medium- and heavy-duty commercial vehicles that travel on last-mile, back-to-base routes. The company leverages its proprietary technologies to provide commercial fleets with battery-electric vehicles that are easier to maintain and more cost-efficient on a total cost of ownership (TCO) basis than their internal combustion engine counterparts. For more information, please visit www.xostrucks.com.
Non-GAAP Financial Measures
The financial information in this press release has been presented in accordance with United States generally accepted accounting principles (“GAAP”) as well as on a non-GAAP basis to supplement Xos’ condensed consolidated financial results. Xos’ non-GAAP financial measures include operating cash flow less CapEx (Free Cash Flow), non-GAAP operating loss and non-GAAP gross profit (loss), which are defined below.
“Operating cash flow less CapEx (Free Cash Flow)” is defined as net cash used in operating activities minus purchases of property and equipment.
“Non-GAAP operating loss” is defined as loss from operations adjusted for stock-based compensation, inventory write-downs and physical inventory and other adjustments.
“Non-GAAP gross profit (loss)” is defined as gross profit (loss) minus inventory write-downs and physical inventory and other adjustments.
Xos believes that the use of operating cash flow less CapEx (Free Cash Flow), non-GAAP operating loss and non-GAAP gross profit (loss) reflects additional means of evaluating Xos’ ongoing operating results and trends. The presentation of these measures should not be construed as an inference that Xos’ future results will be unaffected by unusual or non-recurring items. It is important to note Xos’ computation of operating cash flow less CapEx (Free Cash Flow), non-GAAP operating loss and non-GAAP gross profit (loss) may not be comparable to other similarly titled measures computed by other companies, because not all companies may calculate operating cash flow less CapEx (Free Cash Flow), non-GAAP operating loss and non-GAAP gross profit (loss) in the same fashion. Non-GAAP information is not prepared under a comprehensive set of accounting rules and therefore, should only be read in conjunction with financial information reported under GAAP when understanding Xos’ operating performance. A reconciliation between historical GAAP and non-GAAP financial information is provided in this press release.
Cautionary Statement Regarding Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements regarding projected financial and performance information for 2024; expectations and timing related to product deliveries and customer demand; sufficiency of existing cash reserves; customer acquisition and order metrics; ability to access additional capital and Xos’ long-term strategy and future growth. These forward-looking statements may be identified by the words “believe,” “plan,” “project,” “potential,” “seem,” “seek,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “target,” “opportunity,” “plan,” “may,” “could,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions and any other statements that predict or indicate future events or trends or that are not statements of historical matters, although not all forward-looking statements contain such identifying words. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: (i) Xos’ ability to implement business plans, forecasts, and other expectations, and identify and realize additional opportunities, (ii) Xos’ limited operating history, (iii) cost increases and delays in production due to supply chain shortages in the components needed for the production of Xos’ vehicle chassis and battery system, (iv) Xos’ ability to meet production milestones and fulfill backlog orders, (v) changes in the industries in which Xos operates, (vi) variations in operating performance across competitors, (vii) changes in laws and regulations affecting Xos’ business, (viii) Xos’ ability to implement its business plan or meet or exceed its financial projections, (ix) Xos’ ability to retain key personnel and hire additional personnel, particularly in light of current and potential labor shortages, (x) the risk of downturns and a changing regulatory landscape in the highly competitive electric vehicle industry, (xi) Xos’ ability to service its indebtedness, (xii) macroeconomic and political conditions, and (xiii) the outcome of any legal proceedings that may be instituted against Xos. All forward-looking statements included in this press release are expressly qualified in their entirety by, and you should carefully consider, the foregoing factors and the other risks and uncertainties described under the heading “Risk Factors” included in Xos’ Annual Report on Form 10-K for the year ended December 31, 2023 filed with the U.S. Securities and Exchange Commission (the “SEC”) on March 29, 2024 and Xos’ other filings with the SEC, copies of which may be obtained by visiting Xos’ Investors Relations website at https://investors.xostrucks.com/ or the SEC’s website at www.sec.gov. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Xos assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. Xos does not give any assurance that it will achieve its expectations.
Contacts
Xos Investor Relations
Xos Media Relations
| Xos, Inc. and Subsidiaries | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| Unaudited | ||||||||
| June 30, |
December 31, |
|||||||
| (in thousands, except par value) | 2024 | 2023 | ||||||
| Assets | ||||||||
| Cash and cash equivalents | $ | 19,656 | $ | 11,640 | ||||
| Restricted cash | 1,030 | – | ||||||
| Accounts receivable, net | 29,744 | 15,142 | ||||||
| Inventories | 41,356 | 37,843 | ||||||
| Prepaid expenses and other current assets | 8,335 | 7,070 | ||||||
| Total current assets | 100,121 | 71,695 | ||||||
| Property and equipment, net | 12,988 | 14,660 | ||||||
| Operating lease right-of-use assets, net | 4,177 | 4,991 | ||||||
| Other non-current assets | 6,145 | 2,338 | ||||||
| Total assets | $ | 123,431 | $ | 93,684 | ||||
| Liabilities and Stockholders’ Equity | ||||||||
| Accounts payable | $ | 3,097 | $ | 2,756 | ||||
| Other current liabilities | 16,953 | 16,817 | ||||||
| Total current liabilities | 20,050 | 19,573 | ||||||
| Convertible debt, non-current | 19,944 | 19,920 | ||||||
| Earn-out shares liability | 6 | 39 | ||||||
| Common stock warrant liability | 435 | 395 | ||||||
| Other non-current liabilities | 23,772 | 8,561 | ||||||
| Total liabilities | 64,207 | 48,488 | ||||||
| Stockholders’ Equity | ||||||||
| Common Stock $0.0001 par value per share, authorized 1,000,000 shares, 7,891 and 5,941 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively | 1 | 1 | ||||||
| Preferred Stock $0.0001 par value per share, authorized 10,000 shares, 0 shares issued and outstanding at June 30, 2024 and December 31, 2023 | – | – | ||||||
| Additional paid-in capital | 233,150 | 198,456 | ||||||
| Accumulated deficit | (173,927 | ) | (153,261 | ) | ||||
| Total stockholders’ equity | 59,224 | 45,196 | ||||||
| Total liabilities and stockholders’ equity | $ | 123,431 | $ | 93,684 | ||||
| Xos, Inc. and Subsidiaries Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) |
||||||||||||||||
| (in thousands, except per share amounts) | Three Months Ended June 30, |
Six Months Ended June 30, |
||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Revenues | $ | 15,535 | $ | 4,754 | $ | 28,697 | $ | 9,451 | ||||||||
| Cost of goods sold | 13,505 | 8,479 | 23,879 | 14,053 | ||||||||||||
| Gross profit (loss) | 2,030 | (3,725 | ) | 4,818 | (4,602 | ) | ||||||||||
| Operating expenses | ||||||||||||||||
| General and administrative | 9,176 | 9,816 | 18,135 | 21,415 | ||||||||||||
| Research and development | 2,998 | 5,181 | 6,072 | 10,930 | ||||||||||||
| Sales and marketing | 1,224 | 1,761 | 2,222 | 3,565 | ||||||||||||
| Total operating expenses | 13,398 | 16,758 | 26,429 | 35,910 | ||||||||||||
| Loss from operations | (11,368 | ) | (20,483 | ) | (21,611 | ) | (40,512 | ) | ||||||||
| Other income (expense), net | 1,545 | (3,963 | ) | 961 | (8,114 | ) | ||||||||||
| Change in fair value of derivative instruments | 128 | 307 | (40 | ) | 210 | |||||||||||
| Change in fair value of earn-out shares liability | 36 | 563 | 33 | 511 | ||||||||||||
| Loss before provision for income taxes | (9,659 | ) | (23,576 | ) | (20,657 | ) | (47,905 | ) | ||||||||
| Provision for income taxes | 4 | 2 | 9 | 4 | ||||||||||||
| Net loss | $ | (9,663 | ) | $ | (23,578 | ) | $ | (20,666 | ) | $ | (47,909 | ) | ||||
| Other comprehensive loss | ||||||||||||||||
| Marketable debt securities, available-for-sale | ||||||||||||||||
| Change in net unrealized gain, net of tax of $0, for the three and six months ended June 30, 2024 and 2023 | – | 281 | – | 683 | ||||||||||||
| Total comprehensive loss | $ | (9,663 | ) | $ | (23,297 | ) | $ | (20,666 | ) | $ | (47,226 | ) | ||||
| Net loss per share (1) | ||||||||||||||||
| Basic | $ | (1.23 | ) | $ | (4.14 | ) | $ | (2.96 | ) | $ | (8.45 | ) | ||||
| Diluted | $ | (1.23 | ) | $ | (4.14 | ) | $ | (2.96 | ) | $ | (8.45 | ) | ||||
| Weighted average shares outstanding (1) | ||||||||||||||||
| Basic | 7,864 | 5,700 | 6,986 | 5,667 | ||||||||||||
| Diluted | 7,864 | 5,700 | 6,986 | 5,667 | ||||||||||||
(1) Shares for the three and six months ended June 30, 2023 have been retrospectively adjusted for the 1-for-30 reverse stock split that occurred on December 6, 2023.
Reconciliation of Operating Cash Flow less CapEx (Free Cash Flow), Non-GAAP Operating Loss and Non-GAAP Gross Profit (Loss):
Operating Cash Flow less CapEx (Free Cash Flow):
| Three Months Ended June 30, |
Six Months Ended June 30, |
Three Months Ended March 31, |
||||||||||||||||||
| (in thousands) | 2024 | 2023 | 2024 | 2023 | 2024 | |||||||||||||||
| Net cash used in operating activities | $ | (25,987 | ) | $ | (14,716 | ) | $ | (40,576 | ) | $ | (30,042 | ) | $ | (14,589 | ) | |||||
| Purchase of property and equipment | (126 | ) | (1,101 | ) | (156 | ) | (1,354 | ) | (30 | ) | ||||||||||
| Free-Cash Flow | $ | (26,113 | ) | $ | (15,817 | ) | $ | (40,732 | ) | $ | (31,396 | ) | $ | (14,619 | ) | |||||
Non-GAAP Operating Loss:
| Three Months Ended June 30, |
Six Months Ended June 30, |
Three Months Ended March 31, |
||||||||||||||||||
| (in thousands) | 2024 | 2023 | 2024 | 2023 | 2024 | |||||||||||||||
| Loss from operations | $ | (11,368 | ) | $ | (20,483 | ) | $ | (21,611 | ) | $ | (40,512 | ) | $ | (10,243 | ) | |||||
| Stock-based compensation | 1,634 | 2,054 | 3,640 | 4,066 | 2,006 | |||||||||||||||
| Inventory reserves | (433 | ) | 413 | (1,236 | ) | (58 | ) | (803 | ) | |||||||||||
| Physical inventory and other adjustments | 430 | 1,031 | 132 | 578 | (298 | ) | ||||||||||||||
| Non-GAAP Operating Loss | $ | (9,737 | ) | $ | (16,985 | ) | $ | (19,075 | ) | $ | (35,926 | ) | $ | (9,338 | ) | |||||
Non-GAAP Gross Profit (Loss):
| Three Months Ended June 30, |
Six Months Ended June 30, |
Three Months Ended March 31, |
||||||||||||||||||
| (in thousands) | 2024 | 2023 | 2024 | 2023 | 2024 | |||||||||||||||
| Gross profit (loss) | $ | 2,030 | $ | (3,725 | ) | $ | 4,818 | $ | (4,602 | ) | $ | 2,788 | ||||||||
| Inventory reserves | (433 | ) | 413 | (1,236 | ) | (58 | ) | (803 | ) | |||||||||||
| Physical inventory and other adjustments | 430 | 1,031 | 132 | 578 | (298 | ) | ||||||||||||||
| Non-GAAP Gross Profit (Loss) | $ | 2,027 | $ | (2,281 | ) | $ | 3,714 | $ | (4,082 | ) | $ | 1,687 | ||||||||
