Lucid Announces Third Quarter 2023 Financial Results
- Lucid reported Q3 revenue of
$137.8 million driven by customer deliveries of 1,457 vehicles in the quarter - Production of the Lucid Air Pure RWD began in September and is in the process of ramping up; production of the Lucid Air Sapphire also began in September, thus completing the
Lucid Air lineup - General assembly production shifted to Phase 2 of Lucid's factory in
Arizona ; Lucid opened its first manufacturing plant inSaudi Arabia - Lucid closed the Aston Martin transaction and commenced the strategic technology arrangement
- Lucid appoints
Marc Winterhoff as its first-ever Chief Operating Officer, overseeing daily operations and execution across global manufacturing, supply chain, sales and service, marketing, and international markets - Lucid Gravity, the company's all new luxury electric SUV, will be unveiled on
November 16 at the LA Auto Show; start of production remains on track for late 2024 - Production outlook for 2023 is revised to 8,000 – 8,500 vehicles from prior guidance of more than 10,000 to prudently align with deliveries
Lucid reported Q3 revenue of
"We delivered on our commitments to complete the
"We are seeing results from our targeted marketing approach, as the majority of new demand came from customers who had their first contact with Lucid in the quarter," said
Lucid will host a conference call for analysts and investors at
About
Lucid's mission is to inspire the adoption of sustainable energy by creating advanced technologies and the most captivating luxury electric vehicles centered around the human experience. The company's first car, the Air, is a state-of-the-art luxury sedan with a
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Trademarks
This communication contains trademarks, service marks, trade names and copyrights of Lucid Group, Inc. and its subsidiaries and other companies, which are the property of their respective owners.
Forward Looking Statements
This communication includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "estimate," "plan," "project," "forecast," "intend," "will," "shall," "expect," "anticipate," "believe," "seek," "target," "continue," "could," "may," "might," "possible," "potential," "predict" or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding financial and operating outlook and guidance, future capital expenditures and other operating expenses, ability to control costs, expectations and timing related to commercial product launches, including the Gravity SUV, production and delivery volumes, expectations regarding market opportunities and demand for Lucid's products, the range and performance of Lucid's vehicles, plans and expectations regarding the Gravity SUV, including performance, driving range, features, specifications, and Gravity's potential impact on markets, plans and expectations regarding Lucid's software, plans and expectations regarding Lucid's systems approach to the design of the vehicle, plans and expectations regarding Lucid's integration with NACS, including timing and benefits, estimate of the length of time Lucid's existing cash, cash equivalents and investments will be sufficient to fund planned operations, plans and expectations regarding its future capital raises and funding strategy, the timing of vehicle deliveries, future manufacturing capabilities and facilities, studio and service center openings, ability to mitigate supply chain and logistics risks, plans regarding the Phase 2 expansion of Lucid's AMP-1 factory, including timing, installed capacity and potential benefits, ability to vertically integrate production processes, future sales channels and strategies, future market launches and international expansion, including plans and expectations for the AMP-2 manufacturing facility in
Non-GAAP Financial Measures and Key Business Metrics
Condensed consolidated financial information has been presented in accordance with US GAAP ("GAAP") as well as on a non-GAAP basis to supplement our condensed consolidated financial results. Lucid's non-GAAP financial measures include Adjusted EBITDA and Free Cash Flow which are discussed below.
Adjusted EBITDA is defined as net loss before (1) interest expense, (2) interest income, (3) provision for income taxes, (4) depreciation and amortization, (5) change in fair value of common stock warrant liability, (6) stock-based compensation and (7) restructuring charges. Lucid believes that Adjusted EBITDA provides useful information to Lucid's management and investors about Lucid's financial performance. Free Cash Flow is defined as net cash used in operating activities less capital expenditures. Lucid believes that Free Cash Flow provides useful information to Lucid's management and investors about the amount of cash generated by the business after necessary capital expenditures.
These non-GAAP financial measures facilitate management's internal comparisons to Lucid's historical performance. Management believes that it is useful to supplement its GAAP financial statements with this non-GAAP information because management uses such information internally for its operating, budgeting, and financial planning purposes. Management also believes that presentation of the non-GAAP financial measures provides useful information to Lucid's investors regarding measures of our financial condition and results of operations that Lucid uses to run the business and therefore allows investors to better understand Lucid's performance. However, these non-GAAP financial and key performance measures have limitations as analytical tools and you should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP.
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 Lucid's operating performance. In addition, other companies, including companies in Lucid's industry, may calculate non-GAAP financial measures and key performance measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of Lucid's non-GAAP financial measures and key performance measures as tools for comparison. A reconciliation between GAAP and non-GAAP financial information is presented below.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (in thousands, except share and per share data) |
||||
|
|
|||
ASSETS |
||||
Current assets: |
||||
Cash and cash equivalents |
$ 1,164,391 |
$ 1,735,765 |
||
Short-term investments |
3,258,206 |
2,177,231 |
||
Accounts receivable, net |
23,370 |
19,542 |
||
Inventory |
798,974 |
834,401 |
||
Prepaid expenses |
76,368 |
63,548 |
||
Other current assets |
70,185 |
81,541 |
||
Total current assets |
5,391,494 |
4,912,028 |
||
Property, plant and equipment, net |
2,673,057 |
2,166,776 |
||
Right-of-use assets |
221,657 |
215,160 |
||
Long-term investments |
479,727 |
529,974 |
||
Other noncurrent assets |
175,299 |
55,300 |
||
TOTAL ASSETS |
$ 8,941,234 |
$ 7,879,238 |
||
LIABILITIES |
||||
Current liabilities: |
||||
Accounts payable |
$ 104,602 |
$ 229,084 |
||
Accrued compensation |
61,542 |
63,322 |
||
Finance lease liabilities, current portion |
8,964 |
10,586 |
||
Other current liabilities |
862,752 |
634,567 |
||
Total current liabilities |
1,037,860 |
937,559 |
||
Finance lease liabilities, net of current portion |
77,019 |
81,336 |
||
Common stock warrant liability |
78,943 |
140,590 |
||
Long-term debt |
1,995,673 |
1,991,840 |
||
Other long-term liabilities |
345,724 |
378,212 |
||
Total liabilities |
3,535,219 |
3,529,537 |
||
STOCKHOLDERS' EQUITY |
||||
Common stock, par value 1,829,314,736 shares outstanding as of |
229 |
183 |
||
Additional paid-in capital |
14,981,851 |
11,752,138 |
||
|
(20,716) |
(20,716) |
||
Accumulated other comprehensive loss |
(10,363) |
(11,572) |
||
Accumulated deficit |
(9,544,986) |
(7,370,332) |
||
Total stockholders' equity |
5,406,015 |
4,349,701 |
||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
$ 8,941,234 |
$ 7,879,238 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) (in thousands, except share and per share data) |
|||||||
Three Months Ended |
Nine Months Ended |
||||||
2023 |
2022 |
2023 |
2022 |
||||
Revenue |
$ 137,814 |
$ 195,457 |
$ 438,120 |
$ 350,468 |
|||
Costs and expenses |
|||||||
Cost of revenue |
469,722 |
492,483 |
1,526,051 |
1,030,795 |
|||
Research and development |
230,758 |
213,761 |
694,035 |
600,218 |
|||
Selling, general and administrative |
189,691 |
176,736 |
556,209 |
563,707 |
|||
Restructuring charges |
518 |
— |
24,546 |
— |
|||
Total cost and expenses |
890,689 |
882,980 |
2,800,841 |
2,194,720 |
|||
Loss from operations |
(752,875) |
(687,523) |
(2,362,721) |
(1,844,252) |
|||
Other income (expense), net |
|||||||
Change in fair value of common stock warrant liability |
60,316 |
140,146 |
61,647 |
998,319 |
|||
Interest income |
66,064 |
24,373 |
145,594 |
27,284 |
|||
Interest expense |
(3,340) |
(7,613) |
(17,138) |
(22,521) |
|||
Other income (expense), net |
(763) |
665 |
(1,024) |
9,898 |
|||
Total other income, net |
122,277 |
157,571 |
189,079 |
1,012,980 |
|||
Loss before provision for income taxes |
(630,598) |
(529,952) |
(2,173,642) |
(831,272) |
|||
Provision for income taxes |
296 |
149 |
1,012 |
540 |
|||
Net loss |
(630,894) |
(530,101) |
(2,174,654) |
(831,812) |
|||
Net loss attributable to common stockholders, basic |
(630,894) |
(530,101) |
(2,174,654) |
(831,812) |
|||
Change in fair value of dilutive warrants |
— |
(140,146) |
— |
(998,319) |
|||
Net loss attributable to common stockholders, diluted |
$ (630,894) |
$ (670,247) |
$ (2,174,654) |
$ (1,830,131) |
|||
Weighted average shares outstanding attributable to common stockholders |
|||||||
Basic |
2,284,446,783 |
1,676,048,504 |
2,010,916,100 |
1,666,693,217 |
|||
Diluted |
2,284,446,783 |
1,690,963,548 |
2,010,916,100 |
1,686,576,589 |
|||
Net loss per share attributable to common stockholders |
|||||||
Basic |
$ (0.28) |
$ (0.32) |
$ (1.08) |
$ (0.50) |
|||
Diluted |
$ (0.28) |
$ (0.40) |
$ (1.08) |
$ (1.09) |
|||
Other comprehensive income (loss) |
|||||||
Net unrealized gains (losses) on investments, net of tax |
$ 1,554 |
$ (12,575) |
$ 2,590 |
$ (13,266) |
|||
Foreign currency translation adjustments |
(1,967) |
— |
(1,381) |
— |
|||
Total other comprehensive income (loss) |
(413) |
(12,575) |
1,209 |
(13,266) |
|||
Comprehensive loss attributable to common stockholders |
$ (631,307) |
$ (542,676) |
$ (2,173,445) |
$ (845,078) |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (in thousands) |
|||||||
Three Months Ended |
Nine Months Ended |
||||||
2023 |
2022 |
2023 |
2022 |
||||
Cash flows from operating activities: |
|||||||
Net loss |
$ (630,894) |
$ (530,101) |
|
$ (831,812) |
|||
Adjustments to reconcile net loss to net cash used in operating activities: |
|||||||
Depreciation and amortization |
60,832 |
50,653 |
166,033 |
131,343 |
|||
Amortization of insurance premium |
9,114 |
10,264 |
30,242 |
25,188 |
|||
Non-cash operating lease cost |
6,593 |
5,302 |
18,871 |
14,254 |
|||
Stock-based compensation |
68,237 |
83,302 |
193,432 |
352,245 |
|||
Inventory and firm purchase commitments write-downs |
230,816 |
186,496 |
734,495 |
364,553 |
|||
Change in fair value of common stock warrant liability |
(60,316) |
(140,146) |
(61,647) |
(998,319) |
|||
Other non-cash items |
(19,286) |
(7,424) |
(46,990) |
(5,020) |
|||
Changes in operating assets and liabilities: |
|||||||
Accounts receivable |
(2,800) |
(1,119) |
(3,778) |
489 |
|||
Inventory |
(127,971) |
(302,202) |
(575,933) |
(906,054) |
|||
Prepaid expenses |
(12,027) |
(18,560) |
(43,062) |
(12,101) |
|||
Other current assets |
(4,808) |
(1,063) |
13,680 |
(33,262) |
|||
Other noncurrent assets |
(4,032) |
(11,526) |
(113,790) |
(39,082) |
|||
Accounts payable |
(18,811) |
2,620 |
(114,810) |
52,216 |
|||
Accrued compensation |
(7,460) |
(6,542) |
(1,781) |
16,644 |
|||
Operating lease liabilities |
(5,788) |
(3,817) |
(17,500) |
(10,761) |
|||
Other current liabilities |
(625) |
102,001 |
(44,005) |
281,545 |
|||
Other long-term liabilities |
5,644 |
12,396 |
25,993 |
20,191 |
|||
Net cash used in operating activities |
(513,582) |
(569,466) |
(2,015,204) |
(1,577,743) |
|||
Cash flows from investing activities: |
|||||||
Purchases of property, plant and equipment |
(192,517) |
(290,064) |
(638,002) |
(784,964) |
|||
Purchases of investments |
(1,438,001) |
(1,307,454) |
(3,585,254) |
(2,726,677) |
|||
Proceeds from maturities of investments |
498,081 |
125,353 |
2,480,570 |
125,353 |
|||
Proceeds from sale of investments |
— |
— |
148,388 |
— |
|||
Proceeds from government grant |
— |
97,267 |
— |
97,267 |
|||
Other investing activities |
— |
— |
(4,827) |
— |
|||
Net cash used in investing activities |
(1,132,437) |
(1,374,898) |
(1,599,125) |
(3,289,021) |
|||
Cash flows from financing activities: |
|||||||
Proceeds from issuance of common stock under Underwriting Agreement, net of issuance costs |
— |
— |
1,184,224 |
— |
|||
Proceeds from issuance of common stock under 2023 Subscription Agreement, net of issuance costs |
— |
— |
1,812,641 |
— |
|||
Payment for short-term insurance financing note |
— |
— |
— |
(15,330) |
|||
Payment for finance lease liabilities |
(1,455) |
(1,204) |
(4,534) |
(3,605) |
|||
Proceeds from borrowings |
38,654 |
13,565 |
42,920 |
20,228 |
|||
Repayments for borrowings |
— |
(6,653) |
— |
(6,653) |
|||
Proceeds from failed sale-leaseback transaction |
— |
31,700 |
— |
31,700 |
|||
Proceeds from exercise of stock options |
2,214 |
1,889 |
7,321 |
14,738 |
|||
Proceeds from employee stock purchase plan |
— |
— |
15,089 |
12,882 |
|||
Tax withholding payments for net settlement of employee awards |
(4,327) |
(21,654) |
(14,705) |
(212,895) |
|||
Payment for credit facility issuance costs |
— |
— |
— |
(6,631) |
|||
Net cash provided by (used in) financing activities |
35,086 |
17,643 |
3,042,956 |
(165,566) |
|||
Net decrease in cash, cash equivalents, and restricted cash |
(1,610,933) |
(1,926,721) |
(571,373) |
(5,032,330) |
|||
Beginning cash, cash equivalents, and restricted cash |
2,776,880 |
3,192,411 |
1,737,320 |
6,298,020 |
|||
Ending cash, cash equivalents, and restricted cash |
$ 1,165,947 |
$ 1,265,690 |
$ 1,165,947 |
$ 1,265,690 |
Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited) (in thousands) |
|||||||
Adjusted EBITDA |
|||||||
Three Months Ended |
Nine Months Ended |
||||||
2023 |
2022 |
2023 |
2022 |
||||
Net loss (GAAP) |
$ (630,894) |
$ (530,101) |
$ (2,174,654) |
$ (831,812) |
|||
Interest expense |
3,340 |
7,613 |
17,138 |
22,521 |
|||
Interest income |
(66,064) |
(24,373) |
(145,594) |
(27,284) |
|||
Provision for income taxes |
296 |
149 |
1,012 |
540 |
|||
Depreciation and amortization |
60,832 |
50,653 |
166,033 |
131,343 |
|||
Change in fair value of common stock warrant liability |
(60,316) |
(140,146) |
(61,647) |
(998,319) |
|||
Stock-based compensation |
68,237 |
83,302 |
194,875 |
352,245 |
|||
Restructuring charges |
518 |
— |
24,546 |
— |
|||
Adjusted EBITDA (non-GAAP) |
$ (624,051) |
$ (552,903) |
$ (1,978,291) |
$ (1,350,766) |
|||
Free Cash Flow |
|||||||
Three Months Ended |
Nine Months Ended |
||||||
2023 |
2022 |
2023 |
2022 |
||||
Net cash used in operating activities (GAAP) |
$ (513,582) |
$ (569,466) |
$ (2,015,204) |
$ (1,577,743) |
|||
Capital expenditures |
(192,517) |
(290,064) |
(638,002) |
(784,964) |
|||
Free cash flow (non-GAAP) |
$ (706,099) |
$ (859,530) |
$ (2,653,206) |
$ (2,362,707) |
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