Canoo (GOEV) 1 Apr 242023 Q4 Earnings call transcript

Hello, and welcome to the Canoo Fourth Quarter and Full Year 2023 Earnings Conference Call and Webcast. [Operator Instructions] As a reminder, this conference is being recorded.

It's now my pleasure to turn the call over to [ John Wolf ], Head of Investor Relations. Please go ahead, John.

thank full for year and our us Kevin, and QX XXXX you, you, joining everyone, on Thank earnings call.

Tony Ethridge perspective outlook update 'XX financial call, and on over the and our the will and full on go you During year and our Ramesh strategy, will Greg our also will for on an results XXXX. QX provide financing activities, update business provide some

subject on that differ advised making may significant current and expectations. uncertainties, we are materially. may based be Please forward-looking our These be to results and risks statements actual

affect For refer future with the a that discussion today's our of factors Form disclosure and including the SEC Form results that earnings please reports could XX-K business, recent may and other on our most we and file in X-Ks. release financial to XX-Q and

our based are as no All statements. any today made us. on by such information are obligation law, of of Except available we assume to update required as and statements to currently

we'll call, measures. discuss financial this During non-GAAP

You financial to measures measures hand on website. With over of I'll IR which release, section to these be the can that, non-GAAP can today's earnings financial of in it GAAP our reconciliation Tony. find the found

today. John. Thanks, everyone, for joining Thanks, us

it Boeing of amounts heard was the impacted high quite news slow X-plus the like billions have shareholder Even to and seen We've to and to the to before expensive years it us capital, perils and market racing down. way which and the big of path value. that profitability. hard and tens dangerous When endless with hurry in volume of the others, and learned for highlighted opposite, it's all is success has You've recent and ready. fact, those being problems, up of the from asset-light has big opportunities the hurrying to

job to business, through our We advantage us tough tell works an made doesn't learned what gives when our we is as what took it. decisions knew you and customers. have shareholders about been knew, we've what competitive, realistic it It's always and shared what our we and and our from

We to do based this us. with across been and different an do right experience our on things it's successful the building And experience easy has team's from industries, because differently thing businesses others for not my task.

Early we IP large us. highly invest for was democratize and needed But pivot $X opportunities to and expand on, We it trillion with over and had decided high-volume software. in with profitable a our a TAM delivery technology. our control market, contracts to to multiyear that

in-house. all global created it we activities, that scalable brought a platform repair addresses including We customer So service some maintenance workflows.

our an and refine we didn't went customer under with us credit, base. customers discerning large fleet that We government fatigue. high-grade could consumers, after help resistant go orders, bankable economically and customers after industrial stress Built product

our We with customers' developed presold can delivery be manufacturing product to We capital itself. to road which our efficient demand. vehicle at move step-level process to with we XX,XXX to delivery customers. talked This time mix increments the validate to that our a takes the CapEx multiyear schedules maps, integrate process. beyond functionality, extends and unit our we scale you so Then vehicle about

We have very a market. seen difficult

so. by have we and raising we amounts continue milestone, adapted disciplined deployment will capital our approach need capital each We do for only of the to

reduce dislocations we second just can of new new slide were advantage analysts evolve, our to on lead see worried in market have investors to these a in times. didn't We that with months who scale of ago on put XX these many we equipment. you, on and to and just unthinkable the disagree long continue owner We conditions being operations. items that you. purchase was This assets. of dollar position securing new the that near as you by As CapEx $X.XX would focused to take front remain or the

XXXX in which compared believe makes directly shareholder opportunity This of XX% initial spending resulted our of $XXX guidance attractive reduction in an recent that date very a important unrealized CapEx is approach to in attributable or to $XX a million, sector. stock value. unstoppable light and our in to million We our disciplined dislocations capital investment and

by Achieving people the a of lot designation team. took zone the many work foreign trade on

one including important let strategy to USPS of globally an Up me The of apparent America in our and will our value we generate highlights. our coming the prices. by few largest facility. City our building the quarters, expansion being opportunities purchase of integrating in delivering transition vehicles block our benefits, by of vertically permanent geographic the Made cost but give our components at XXX electrification workforces newly become veteran vehicles. driving you more the of our facility, $XX incremental acquired additional in is capital Oklahoma with LDV million For it reducing country. drive this in reduction, USPS these is the will largest opportunities working you competitive our to to one working key suppliers. Recently, right-hand in powered fleets the It critical moving the a Enhances capital assets announced into while more

vehicle May. steer-by-wire be technology. right-hand drive to the out them mail with your working are first provide for starting We our delivering proud Look to this

showcase vehicle weeks. in We U.K. commercial our vehicles fleet the several will at coming drive events right-hand

in which to in customers delivered vehicles customers. sale Over in QX, in NASA QX. international and our progress the at been completed XXXX, the X customers. and for our made allocated delivered have X delivered manufacturing were completed XX significant advanced past to business. We've product, midyear our year, XX XX demo and scale of to we to completed vehicles

than of our X achieve readiness. manufacturing run is year step-level OKC Our plant rate schedule in on assembly targeted less XX,XXX to

out about high cost in On a minute, our talk a roll we'll that things centers. there's the about slide, strategy without you'll service our -- of in which product important see up is how to couple that

addition In issues. don't By charging having it our to -- you customer that, concentrated to fine-tuning base. network customers,

action we've to X way in can we teams a it, have needs. sustainable X fast In that, customer's These building done blocks building within addition a the important hours for business. available very are to

harmonizing X scale. our on focus now We to What that supply our will in you lost elements and support is chain to been have many optimizing shift before step-level place have manufacturing. to has you key

slow. to be up to to You got not go disciplined hurry

move Henry And platform workforce A and to new the that's that of delivery, thoughts. quickly, economics They study have to how product the this successful asked been skyrockets. optimized there weakest your this bring X,XXX of workforce come be know may is you stops and little we himself, across you a step-level you harmonized because slide. XX,XXX recent can year. I step manufacturing must going otherwise, slide. We've bit your you Many units manufacturing, as that your is have your low very focused after from A relevant X,XXX-ish sales. I'd see people the across product, training, highly the the in can manufacturing picked level cost time, you of aligns it rate organization -- your on is confluence supply can safety, You first that continuous all journey in your customer come history, production to together, quality that be to have you unpopular through And after produce as cannot run done and and of about entrants a the support in back and that out and functions talk you it right. have focused have And that and tracking how the as step and to of I at us Because These the while the all aftersales. your is see like great on it same to can up volume to elements, quality very the example rates. XX,XXX support because and point chain. process. to way quality you the run with on that. trained break the your in manufacturing, you step-level seemed why

further slides drill look down you it our in when the encourage to at we a steadfast we deeper We have remain appreciate you help production can get We a questions strategy. and ask few into that our prepared and belief and understand so to to bit Q&A the what.

you and as in we And This get very We economics of your are sure case. actually your cautious that starts -- is CapEx. with produce really if that rate actually thought not more that's volume, the the your telling make In embedded logic situation a a can well. It the do run very better. lot not to slide next get everybody in slide others. of

way cause based on as ahead down phase their your examples if you're this was positive we weakest skyrocket the can while But If to see slow in heavy, difficult, Tesla here. of cost successful you're ability purely can you and your you produce, too like will you CapEx that will example, ultimately to and study was link, violence. see it chaotic as and your

with run didn't and profitable stepped do scale we because grow lean. one said, annual to see, and of showed increments. This could work unit was XX,XXX XXX,XXX key chain, Elon you I We down it "Manufacturing we luxury elements have us a up And solid capacity. wish just believed would can which X their focused slide business units were They one. would grow here. go hell." We factory, through but X,XXX But had and a have learn understand those unit their it. you more we your where ago, as receive didn't as with on through work on didn't a would It's economics year moved areas that and bases a to volume. as has rate, be into As the you don't how harmonizing stayed the big We think you customer where right. slide and they hot you all markets. from focused to in thing the a everybody is we We because economics went and they supply they could

As help. you can see, it doesn't

got get right. it to first You've

states, opportunities Same-day year had customer and to point few we over do test driven We've deployments. quarters. X have few action XX,XXX the any across harmonizing miles our well. customers' disciplined the prevailed year rollout teams very our disclosed you about things as quarters customers, the that has had of many system, our constantly over over I our fine-tuning above, first and data on product in from supply our mix with Now have collecting very focused chain of that a the and better workflows. vehicles will collaboration strategy, understanding our to this be We're the including the our with mentioned last across map, fast X we upgrades earlier, of and

I'm going to turn for now over financial Greg some it to metrics.

Tony. Thanks,

is build team executing supporting story refounding company. the properly Our successful on and that's of happened. We've lot the to hard about repositioning, perfectly explained. amount The quiet the smoke to of foundation for telling talked positioned that's materials not Tony needed reasons tell We the story first XXXX. very the of to company, and the to right a focused what but his a has every been work now this been of market. to this also evolution has refounding clear on since gone I'm the the focused day for I'm and in him

an company. are IP-sensitive We

my now progress particularly we're Tony's we're process tend market But and to transition. to make understand investors job we sure understand our underspeak, So it's the in when out the vision. and the and of

have need. the be the let's raise But capital clear, we've the scratched we very only since we last call, just and been active very surface. We that earnings will

too We mistakes of and capital progress. also on been to have is made continue much in industry, will have them but raising milestones capital. many and our based raise There one

effectively only much at time. You deploy so one capital can

recap activities that QX, capital. funded million strategic XXXX, we was partner. or the raising equity was to in $XX international million Just including were And million an from $XXX financing the equity-linked raised in of of successful $XX that

to use. and other debt to put into towards All forms we of make capital as capital will continue was move forms additional accessing of XXXX. of we And this well non-dilutive very progress

federal non-dilutive Oklahoma, state from other the we we announced, Some And state's of also DOE we as first of support. see appreciate received side. of our progress recently you may be funding capital. expect the and wondering about very and to the the much But we on forms

manufacturing. We And next appropriately believe good many and government apply DOE for continue the be focused on a our industry. The very for we but support we and to will phase on been programs battery monitor technology, are of forms critical focused think have materials we candidate.

statistics. with been was been battery reminder been has ATVM DOE $XX billion the has a but Almost approved different conditionally $XX only XX% materials, funded or on XX Just focused $X.X billion companies. about across of billion, on has quick actually funded. of The that some technology

yet. So to not this opportunity. we us It be very map follow the this access And missed road continue to to we're have hasn't excited come to funding. to just able

pass guidance. and the our this to to cover financials going I'm Now to over Ramesh

Thank you, Greg.

results Let walk me and for calibration. XXXX. fiscal This for through you a year fourth year the the was the quarter of

this We driven desired very by focus year, past milestones. are was discipline our to of achieve proud our which financial operational our

a to engineering from and XX% key reduction professional in transition resulting from and our include well services. reduction from XX% a legal workforce the of primarily and Key reduction SEC XX% from areas accomplishments to year-over-year, other Oklahoma, XX% need, as expenses, from research saving as in California other expenses resolution development

operating After phased our turned we having XXXX, lowest manufacturing. a we've have company, ramp gradual QX expenses and quarterly a public achieved since been the and began cautious of in corner

deliveries Revenues $X.X Department to NASA were Innovation revenues year in fiscal amounts certain also commercial $X.X Revenues of million and to certain well as and from fourth QX deliveries engineering XXXX. delivery of Defense's, year in Our were the million, milestones from generated XXXX the of as quarter generated from include completion the the our respectively. Unit. battery and of XXXX fiscal modules Defense our in

ramp delivering vehicles in commercial at manufacturing the our approach of here. phased are beginning We

We are in revenue over rest the million schedules to during of match XX, measured that expect months with with a X pace the cost to ramp to the at customers. our agreed XXXX. volumes delivery of ended incurred XXXX being $X.X December We

and assembly revenues, Our an involved parts amortized costs and components cost primarily components. of capitalized parts, vehicle include our in labor and costs of tooling and producing

Moving to income the statement.

loss XXXX XX% basis, negative fourth was and reduction development $XX.X from million Our net QX and of million SG&A million expense the QX of net compared the $XXX.X of million prior to 'XX. XX% for XXXX 'XX. expenses in from $XX.X the million compared research development quarter research an fourth On $XX.X for totaled period, to $XX.X of compared $XXX totaled for net XXXX, quarter year quarter loss XX% for to GAAP a a compared XXXX million follows: an million negative year GAAP from million annual year. GAAP period, year from compared results a from in in $XXX.X for $XX.X a in the year. SG&A are to as in On negative a million a million reduction XX% XXXX $XX was $XXX.X $XXX.X $XXX.X prior period. quarter, the XXXX. prior negative XXXX, to million reduction XX% prior expenses reduction prior XXXX, basis, was compared in of annual the was reduction loss million 'XX for to

and was $XX.X Adjusted for negative compared $XX.X the a to negative post-split million per share XXXX. Adjusted Adjusted compared for in quarter, EPS the the negative of for negative negative compared million the adjusted share $XXX.X year the in prior $X.XX for for to million $XXX.X $X.XX Adjusted EBITDA pre-split, share was million EPS period. quarter EPS from negative reduction the EBITDA per XXXX year post-split period. XX% $X.XX prior $X.XX was share XXXX, quarter was for per negative year. per to the of negative

summary. flow Cash

and operations to with used We $X.X months advances was Cash million, million flow. XX ended from December in of our the to of after proceeds XX a XXXX prepaid million. in the for the $XX.X $XX to effect cash million equivalents, been the our total have cash compared ended cash $XXX.X year for giving million quarter would balance $XXX.X cash prior period. Turning

XX, provided Our a the for ended months XXXX, months to the cash December for prior the XX, December cash capital XX net amount -- million provided months million by to for Net million. financing for were XX the XX compared expenditures for $XXX.X December million $XXX.X $XX.X total compared activities ended $XX.X XXXX, of was ended XX, XXXX.

QX Our in approximately month lower outflow flow than cash 'XX cash in XXXX. of was per XX% monthly average our

We as XXXX. optimize continue into to move cash we

guidance. our to Moving

and outflow is million annual Our million follows: cash XXXX between guidance of for between as to $XX million revenues a to $XX $XXX quarter. million $XX per

expansion adjusted Our fully over discipline allow helps guidance. From factors, ramp of labor manufacturing tools high-volume to of combined units year. and switching approach thereby relentless investments or Oklahoma, upcoming asset negative avoiding amongst to improve tools our with prior to high CapEx management, produced. CapEx focus our to These our to arbitrage, our a workforce to production, us amortization like utilize to us initial our perspective, and to assets, other opportunities are expense including optimize seeking and a our transition which for allow acquire EBITDA low-volume over us new new phased align with pace distressed reasons, in this

seek CapEx to will quarters. As distressed our in assets, acquire to we future opportunities provide continue we the guidance

to closing it remarks. for back Tony Turning

Thanks, Ramesh.

guys marathon, can it's not a see, a you As sprint.

you and markets, to to in chains remind IP, been alignment committed rollout raising well controlling our are their stay We with with down and on highly the have large disciplined road workflows, manufacturing approach, product coordinating of as that who our profitable few validating or customers as bases supply Some our customer our resistant dependent and have. we not economically on EV have stepped manufacturing, very our times been focused want a China we've being to on everyone this others. we Developing capital.

and without couldn't can you do, of do. we hard in we lean hundreds tell effective done so. company's in this of not, we've our us an a our in And in than what clear. to very is certain at can said the we We who this and the of what time that takes all call life otherwise We everybody deploy do we we're more able proud continue I've can that Again, than done. always in, story it, capital I have take to this the they coming XXX%. And put we I'm case, we because have, it. own even And support know forward that's and what as a and market customers, how gap. millions you stand less the it effective have of reduce very our continue we particular this have deploy will our coming May, you in that closing very opportunities become being more to our up get what will you, doing, much to and to they've and will do. team always so that money done and in and spent what and partners I And earnings associates you has and to know chain thank phase believes worked quarters, the spend been we And have it we have would in others. it's everyone supply to front It's we In want and look only how increments. that's prove believe to about

Operator, the Kevin, you line questions? can thanks for up open

ROTH is MKM. Irwin from [Operator question Craig Instructions] from First coming today

give starts using on they've really year vehicles later going deliveries I excited year. you most investors had about results guys after to And this Dallas right? some testing those services in fit probably Walmart, excited be the from this I experience you what a been But Can is learning? for think, are now, to the a Tony, post the the just is? over So or them office informing has guess And of your is this is customer area. strategy? are vehicle format color on the vehicle you the for using guys Walmart How maybe production a and and little provide? maybe us What how

and us and and been proprietary partner testing. your And it's workflows. well they completely. integrate with mile amount, We year to how -- It's just how are fine-tune customers, they to about your what testing. so of how But doing things delivery don't has so last that weather and a And as schedule in a and it's and on. workflow they're we addressing it vehicles. will very of need, over a been really as just being Craig, sell It's their conditions their Walmart extreme it's tremendous we've configuration respect Yes. learned tested point, rollout others. been work year a hasn't helped been We

we so and then so that try receiving on. get step and vehicles to on surprised So slow down we they really take don't

from NASA us So customers, you're do. that Army. we but also a lot tried which We we that will taught we what go learned the point to think making a from them, need a teach well. U.S. as lot lot learned I exactly us the is to is customers after

we effectively. as a So start can and roll little have start possible rollout and to we out out we consistently of rolling then as backtracking schedule. And

I is Understood. over know, the last potential people that there, of spent your breadth equipment the color you acquiring needs, of hopefully, other also that actually buy Understood. story us bring don't what's months down on that reduction of Canoo. possible you're you're little Then at at? strategy to quarters? you're the able if in money could to you out Can next to lot acquire couple things a of for necessary in maybe biggest these And some at us of opportunities have the a CapEx months to probably the give far if frame out new and the in acquire as CapEx looking as change looking the

Yes.

the our you I it risk XXX a ourselves. XX IP, XXX patents control don't and Craig, economics as up we close to amount pivoted -- So the in-house. and key don't we unique we have end now. -- We do brought manufacturing went little -- -- focused has on realized and our you items our very to a it contract think enough to work and we And went strategy, this When things you getting in got with into, beginning. bulletproofing of kinds we of part we was been remember, We we of platform right. those increased say, and from the have

that fine-tuning was we product knew itself. time, at that But the

So down for pouring locking not -- getting and large volume foundation the was smart.

ready. capital, our the So an didn't me know investor me want bubble mathematics, investors' We in to risk these not being living to as It the technology weren't everybody that we make you 'XX can new knew well. it's seemed it we through 'XX, like curves.

And We them. the so -- this all you've step time manufacturing those We get focus around, with And likely to tracked a volumes the track, few more perceived chose the level actually that that did on that. studied and would continue got we competitors in laps we make the that do we leaks around not studied to right. to it, the as make pieces volume on early.

unfortunate had in discipline We but strategies to because shareholders happen them, we see that, it's more opportunities event And fortunately, secondary we've wait. for also out there. the fortunate that but it fruition, that the to to It's has. come our these had didn't things

the Understood. progress. congratulations on Well,

coming Gengaro Stephen Stifel. from Next question is from

just bit. -- of this and just on understand a guess help I up of sort line that me maybe questioning little following

my incremental you're units with I goes these along to thought was, about way question Oklahoma that you assets capacity. want readiness I to I XX,XXX I just I that understand sure make that of the And ask So that. buying are before in had think City. it

to in Tesla you're production. capacity areas, we of really to it areas it that and we had like to go And came up lock keep we back things we XX,XXX. remember online, some of some hybrid in manual you at So certain manual be still of want yes, they This on is how automated mass if trying fixed, able because -- other down certain you some eye a an you that kind above that was that automation. in But into want -- to were rate. have so processes that it had call some

gaps. close of this So us those helped kind

to now where actually example, a now workforce the haunted frame, versus at manhours the wells the are that we we know, automation on kind manufacturers. And MPPX, we hybrid using to as holds which of help today, of inspect we're holds which to towards as have to you that took additional be packs. on for And the modular robotics have AI Like having move it these many some us steps going the XX.X of battery preparing things activity. look

using We increased less higher accuracy an in and with hour AI, a can have sigma now operation our that than performed be rate.

if getting that we're there's costs focused BOM you to economics, right. our So -- will, get starts this to our and really on,

you You down then have go lay to them. too are fast, to that around things move becomes fixed tough and it

that things advantages knew manual others. the equipment were purchase kept we there at could So technology or were that we that do advantages purchasing could we things that if we from -- we're successful

detailed that more was way put makes the was that gives together. but That you what sense. our response, a Hopefully, strategy

why That you clearly about XX,XXX more understand start it but units basically No, built. necessary you thinking sort money, me of [indiscernible] no. units, just of the you're in how of not I XX,XXX because efficiency before creating I spending was get not efficiency mean help. the more increases being does made around the terms

So was very that helpful.

Yes.

You ] how can imagine otherwise usually that much fixed caught [ would be cost.

you our If of the on of to amount in up the IP. own example And tough slide parts, we you when make the increased minimized why gave is it the look companies, it volume of an that wrong. technology that foundation number that's at we very other get

to product. get is right This right right. economics able it way you're deliver to yes, a to So the the high-quality do and to to be

outflow think how trigger you're to I we question of should mean, to of you But I when and parameters. we these on we of kind -- just kind the the the on around then think needs. evolves. and some you're the going types the And to timing provided centered mean, other of that? try sort sort sort of need the those that guidance going quarter as clearly, year to gap more meet when Great. per that capital should funding number to capital of the of about pull about finances? about How think cash

Yes.

So look, difficult sure to I for. think than more we the had market our ability strategy But the had hoped been for has down. it ratchet

some of it refining be If these didn't you burning and feedback. lot with because to going of put They're companies their takes cash customer balance that sheet. And burn lot you can us think they're cash still We're went a high, of about high-volume product facilities, as cash. good they're money. maturation because the it, people to punished on out stewards going and see, of a people's we

So I And very we living up as pick example, think base, I ourselves But to the customer aligned of to from the not. align less to the base, on news migrate to to we're customer how the where very cost we've we're positive down already perspective, good being to of expand, kind than for able start where savings automate, a expand, arbitrage. to we're where sequence up focused is the because areas. the reduced manufacturing by, XX% of the to to significantly think, California, in in is Oklahoma workforce our picking there so

a you companies, So of some will a facility CapEx link waste. while chain. more we figure good if don't our likely we're growth, take weakest It take will The get got young out you you'll capital no have, to it as strong align because get you you money. all, But matter as and only to how the the it in right. most It in shareholders' supply bigger you your to the what to while tailwind. more right, the burn build you will

as that. few We to up. big focus big, continue That's start next the we ramp quarters ourselves work for to a on

Boeing, And level at the that X,XXX-unit endless thing to journey, did history, step Elon said in how one want as guys the inspirations goes it And amounts see are The entrepreneurs from time, can't I time, you we've capital figured to hell. back tried manufacturing. how manufacturing the be to to those is we But the learn they Elon's them, these I to earlier, out know, it threshold what like let of people same to quality called attention felt push time, the see did. they pay bring pain had the they studied what together, Henry's curve. and us, you do what they did, that all in it whether through of

than You duties. your can perform the can't things faster move workforce

to have done could geographically saw a a at good our another produce pour quality volumes. can really to as that. manufacturer studying this the level that will we of well. do model at lot at Japanese We've low company at quality You when they level. that expand gives be the we globally -- so that We end replicate day, ability margin be the can And us of

Your next from Dan question is Ives Wedbush coming Securities. from

that's give talk just the million end high you $XXX big just low the a revenue terms So range, the about year? when pretty guidance, and obviously, for the $XX you in that of Can million. to the end variables

Yes.

your up you've harmonize So reason thing why got is to bring supply got because to Dan, variable the why, the chain, workforce. your this you

to reality wanted You've got The have to it go of anyone, now they see a We right right? be. are don't post the is lot wide because of things.

per have If and chose it. harmonize would our our lose you would granted, it, could push. to up to we rate deploy more but supply go it could unit Now chain the with because up go capital, and in we cost advantage your you accelerate we error discipline,

tens And what has not amounts They with build of grow the and That's customers. have margin, it business the us. of in it's and -- why studied plan customers' with unit us is we It's That's don't testing. our though actually produced. That has months not very multiyear for workflow plan has for thousands increments we a feedback testing. last proven presold, standard manufacturing customers extensibility XX-plus orders. unit XX,XXX and beating we are given do. who years why the theoretical That's of been can just tested that those function to that high us. U.S. with want are Army we much to step-level unbelievably or on aligned We per that a product multiple the valuable as it. into problems. has that to successful units these why cash They well were of into will we're burning as That's massive continue

perspective, not a you Great. Is your because timing And capital to of that need like take operation? the here. you're then I you're mean to is like that's sort it just just side, point the going taking stop. as from point on fund -- one not the really

I we Yes. get all our suppliers mean, our harmonized. workforce got got look, right completely to now, get we've trained. And to

customers. of And building on understand way work. And it us on of doing when other of our with fleet the curve doesn't they're they we're in support this. schedule our want to it that. actually it. large customers. end of the aligned the having doing power They've They been continue be don't And the we'll that's So

down have build. the control $XX and into you that will to We'll million our so sprinkle burn ability technologies just we month. but help rate we'll a month that, to our deploy efficiency as million low up don't can a pace. capitalize as We'll the us, have international at probably But after this $XX few we markets study. And that a

not as capital we're wildly to deploy for forms. capital us So available even in to to we arrange its various be going

it's do. to thing right So the

question coming Capital Northland from next Schafer is Markets. Your Donovan from

or million-plus coming post you've from the allows don't vehicle the to workers and a be in the a ask both to forth. would know, user when case But delivery post volume the very -- got sort office use And So In back experience we volume. experience, where post that just vehicle, first office, which space case so things with wouldn't over and, profile. the in you again. that and X frequency astronauts anticipate office, large to standpoint, NASA, want out they're suits with and high ingress user the you it about the person about I the from of so certain -- a larger dollar of a and lead like of I egress NASA to talk the over highlight and

that -- maybe of is, whatever? just it's case beyond lot question is, guess the question launch, I curious to better space -- -- NASA, do launch the not focus how on initial I'm others to experience So the volume. where how a do convince leverage of But you and you it's the take or the

Yes.

large launch. of for can just fleets to for brand stent launch. people one miles to be able see of there, key NASA be X.X I the to to benefit. customers think And young longest that's be our -- government that selected And a the provider. a Artemis billion every company see to by first and time for X have that We control literally watch

again. learned from platform as in that can very size the you dollars, to other that The about bring because to fully as well platform of taught and to kitted from know extend our of us great our ability elements snag what nothing that individuals XXX a from and we to as go. suits deal the our has can those existing benefit we is they tens workflows all stumble go went millions we ingress, even we continue wrong. to platform The learned, and and continue are platform in egress, important up expand are We XXX

actually vehicle. other to us many probably had ingress, information which that every many, on something would giving NASA engineers invaluable. We have egress, was similar up from So what ended would really

work you've work very way And vehicles, the very is the from different. is you around you vehicle vehicle can enter can way element driven our the egress the If you see The the ingress, is different. different.

learn that things are these them. we from So

exponentially and rugged, to all start inside speak, we the For a of are behaviors. ingress. egress require Those protect certain What what their ability things. learned liquid have incredible to and has very some be those similar close data. an give do what business. behaviors and And goods place, the a The in to get then protection, they you Army, so things. to in faster that need, world similar you goods of the kinds Walmarts just vehicle of as that stop their extension open data, But

align they actually money when take people, problem of easy we a them is with to because we we So picked them. committed would return things and young solving were But company to it's and develop those how a a shot. for help we to to how these course, we can up. not things all be our us lined big product convince with and try this And to that less saw then, of what guys are -- capital using mission

it, and very appreciate proud are about I acknowledging we you So it.

it on a team back came say order. they vehicle. quite and would office, they is They it USPS shot to decision. team us gave right-hand in it, other assembling tested vehicle. I postmaster drive thing, comes first they while took team the impressive. the to this And What world-class the our the drive market. to his post test ran for the their done the when right-hand a the making without made us But has prove is They going and general

underserved, automotive already we company, other the as people we in right-hand that, U.K., a our a U.K. underserved. the in market of got that my minute built from And great element we in that we very massive says So course, is announced workforce. And to happened, business had which it. lean and markets the are always It's

perfectly fits product in that Our marketplace.

take where get we do trying can So out figure always before it the those faith. to we're how proven kind of of we things, things to leap

Okay. And to of follow a That actually EV then sense. I on charging lot makes wanted up infrastructure.

So I appreciate.

remarks, about in with prepared companies a fleets, position certainly them cases some that with has the focusing place. to the large large challenge on in large you a -- infrastructure that fleets in fleets. get in even think talked better But I very been puts

them how the if in get have them infrastructure for you're to where to Or enough delivery place you out the you're for -- with question where take pushing do -- condition far infrastructure and is, trying there, -- of in are delivery? are trying my not to is procurement, so in their getting Do engaging then to think maybe take you written a get customers in you they time And way contracts? don't if have charging they reasons, a don't how to own that they place? it's is things

customers started been real us them your why real have list. that aligned mobility charge. -- there. to certain out. there. to them anxiety more certain It actually is sell figure a of configurations forcing hoof. can't Henry which because sell out around in this customer partnerships. better . Range concentrate And doing bringing a rollouts We and because luxury state have creates is interest, not those of priority came have you thing opportunities was instead upon we of don't a to your you're service model help build, But these when Actually, we not charge by have it see it are terms vehicles. when you Ford you the business to where greater our They're anyone We their who to priority and you a have to for thing immediate wheels on they on actually

sure the it, so very we an don't all is to realistic been delivery know never infrastructure. try We've our on What focused about to We And is. their the universal, we charging do adaptable and types. oversell had on make people that, how it's we've but their routes. different issue schedule technology with we

of our One known is business benefits routes. these activity are of the

out lot unknown and it So versus to easier unrestricted figure it's a systems.

our the that, control that in customer developed to fleet systems settings can vehicle. the the are such In addition

workflow. So they that. That's That's capital things That's which less greenhouse And a activities. gas certain of technology based can efficiency. range because increased used range different set on and return extends minimize be on keep emissions drivers. we've workflow to

supporters even So we've mentioned, on that. out, be our really DOE, the we're would help concentrated us, take need time away those that. as before get time, the that of that, us. side to for of giving they're the to risk just Greg it's rolling the money But on things materials, big with same loans entertainable raw like the at We as

know help because base. is there, We particularly next XX,XXX so vehicles on we us with market in will market to sensitive up the economically customer We step know because capital. want that to is the a And there. the infrastructure XX,XXX. return not these our next that yield It's see the

the precursor And right, customer. is infrastructure so qualify before that it charging getting we

coming is from Wainwright. Joshi question Next from H.C. Sameer

are purchased. we or fully on what will bit that? once for Or that? Just or And that little should be line XXXX, seeing clarification months be -- light And from to implemented? well, Like have them? more this? assets you upgrades from lead the a Will a first, manufacturing is you customization now, modification, we costs with then they there X the benefits time it start And associated using the 'XX? when already are are any

Yes.

deployed. the of equipment Some is

some is it being needs of modification. deployed Some it of and

So your is question really spans across all the elements answer. the

brand-new extended of of We brought cost. But in-house this If has as here, We've the of you integration as some I we alluding that change up we've the them. of have warranties worked with to. you that the we small we be the elements, may actual this part far And at gotten to are programming strategy. many costs relatively know In is you question as most got look cases, can the systems, slide the U.K. controllers. see got some power and which to manufacturers. think a

risk. be So at we caught wouldn't

Our manufacture. done our help at great to with to along those ability to job product team skill us bring developing has sets accelerate a AI our

Understood. And achievements. XXXX of another the on then outlook and just sort one

centers. service Is of these you X-state will service One begin that within XXXX? X with centers? of or will or centers states the and X the rollout maybe Or items a have or rollout is X X

Yes.

in, we've to can of we parachute if where to have we team So teams. centered elite so that's a They'll out mapped kind them. around deploy We team. why They're much facilities, important have explained -- like rollout and our our we customers a special soldiers. necessary,

that, often can night do and show X you up vehicles that to team have are to you of ships, have the -- activities fast action lot your addition have running a X and In and location. service on at when

areas activities better. XX% So improving going to some news I deploying but are we're with air. our getting that. been we're think successfully our better over-the-air XX-plus, releases, and close We've been good have upgrades the is our of the all over There's

of it because years. these like it's customer dice. be rolling way vehicles, gotten X vehicles And from and As I we're along many can think that driving we're not base mean, the know, farther has touch with just of go. actually I been for you electric we've the the help

to how even of experience. I in the your plugging many ICE into And the vehicle. vehicles, key software devices is problems mean your have with your you

keeping So we're keeping very it upgradable. to it democratized and simple, sensitive

upgrade the hardware you that as So piece of changes, hardware. can

to profitable us very well. car. and a have as business interest, They us, win. new very of a it's important win, also our way a don't to To we for aligning You buy customers' that is

from next Jaime from Your R.F. Perez is coming question Lafferty. today

sort purchase status optimized? any up everything I purchased? in the guys Has get that it place? to you The capital the you need and mean, do What's that asset running? you that been sort of of equipment is of

And news cases big Yes. those rather if it's than in I a we didn't to see some the make because, stuff drive it unfortunately, new work. it's is literally. as facilities equipment. that new product The good hard markets it, with all bought see wanted mean of this and at

but able pick the somewhere software it. we normal always So some in and just it's the on we've power In we us, $X.XX Others for programming probably in-house, been there's for it's robotics a to say fixed But $X.XX up. brought in-house. translation. because probably just to cases, brought of net those I'd it yes, dollar cost expense. some is that most

of a few got So maybe we points variable.

all we up. that sized But no,

actually were money. we ones on even and hey, We'll to help the buy the before Often We'll the what Our because the sell buy. don't it here's ignite we will were to And want. what give them move. we buy equipment, you team first and we've the site we'll the like, made went got try money. all, we'll we process we

is -- direct you this but know, So... So as right? Jaime, value, shareholder

question. talked Because know on from fleet more we EV management? know on infrastructure. I side. you I Tony development Any What the One come software a that? Right. about about

Yes.

am kept can motion, TEM to got until you where we've very customers. that I pretty them as look, tell. I is excited are this things me, bit fact will bring as to very, at benefit versus quiet -- important about So an how things OE our a excited the customers. as very a and really you -- a we we and similar to in always far we a very, it's our the area look tell I'm to to an meaningful we thing OEM,

from configurations will our be So because software we're on And things a to margins. By at is, about long-term the up learning capital lot customer software obviously, and and Henry time, we base. the that you're ours entering did, the for proprietary amazing the that. but revenue posted a this of at to this way, you market answer us exposing residual a what in not example relationship greater time over the return makes of ours, on course, not is for Elon that when look a basis including

question is coming next from Raymond from James. Your Pavel Molchanov

guys to Can a clarify, Are look you buying distressed kind particular at fab Or only buy. stuff open entire just an I of would looking you for equipment? to as physical be interesting site? for you

Yes.

I site right to on some a physical aligned really there. now. you They as a partners, deep and dead that working we very, location. capital have we're tell cautious on we piece very of continue refine to not us will diving States know, sovereign So the to ability tooling things price. center you But pay invest have from partner respect look, partner. with the sovereign where helping our evolve And us the We're to We're with That chain. have what United how is supply we're move we as being and out will the into is help water.

import. zone, do the dead-center IXX. everything do have on we to We free and of trade mass ] do which We we export, U.S. can a can a [ means we can need

to cost our is So deliver less.

less. receive Our cost to is

move, that we If So say with to got have us sovereign it I would and helping who paid a be makes deal it it less with relined somebody a strategic would sense. expand. and where aligned was was

in open that you Yes. that Atlantic? European-based production context, footprint establishing across given from company. acquisition Absolutely. fact, to a the was your in a Are recent And

continents be I'll last that couple for this people mean, in some of as the with engaged I leaving for, been this late years week we in a of cases, lay next out. X.X week, meetings we've or

model. history very my company, moved our countries me alignment We business study profitably. from were -- grew figured linguistically, my and scalability. the We you last socially If with our to out we and XX we product

point It's things where hit the to these have of get kind before my not volume was earlier X pillars, curve. all that the you impressive pull you back. So to right, got to

are there that lined And is when We're And so focused the answer well you'll on likely is those pieces underway, about plan. is up hear when plan. a and it.

Poe next from Fratt question Our coming from today Partners. Global Alliance is

make going so the understand I'll call us you quick on that? help over is Or include long. CapEx? outflow it Does since and the Can that above number? just cash CapEx

incremental the includes helps automate it No, asked one as earlier us. about -- questions us for purchases do of It more. what the whether

Elon developed We mean, we're process a have great just following hybrid -- I the we and Henry ones. like did.

so number And is inclusive. our

in first out are million, just range annual a $XX.X year, Or half And are to if then annual the $XX be you in revenue, -- even quarter evenly ramp that first we a you the is looking -- the at second put revenue? within on million the more through break it would quarter?

I we're the What's we Otherwise, run the have the workforce really this It's get at aligned, I the we to by to have say can't the it a We've phase, we're different without in, is the you phase, probably say really X,XXX giving information breaking. go quarterly chain way. trained. proven units we history. to important XX,XXX about have units, supply to economics once than right. time got to once that mean, revenue. we'd the it's would rate in rather

what that's move We're then able next execute focused to focused that being to increment. So we're on. the on and

working on far the with critical. right every what it release depends these workflow As getting are as and we're customer, we the economics on quarter,

do built done and well. got It's on XX,XXX, As that right it we're as we'll because just and out negative things they those is that's the them focused clients rollouts, percent margin still in unit. our way step expect we'll -- be you those can to XX,XXX have what units, the and getting XXX-plus whatever, see, they with very conjunction

we charge we supply and our because to with mature, want a on And minimum the -- them things. and we that our on off X, of level agreements that just things a allow the sure And store place lot I make that's vehicles, with that have But the certain because we we do to mean visit and accuracy their customers over they level, infrastructure, ability a later. they we rollouts their the the hours chain try truth lot we give are accept service focus year that know aligns do have way, up coming then of vehicles there's that. into with and people play can them hurried to by that customers, into we put in work. our only rushed a when of it give and them of to any

here doing don't what it customer And you everything. is we're it, it, value understand I and And this of built we're the joke business. largest service right. a lose know maintenance do This we repair because the will networks in no you we my uptime doing is if is other right stuff.

the So our way not doing is most telling guidance any know and chain supply capability. our you other important consistency thing we're that we workforce and our economics, and We're this giving way the it. that's than cross product threshold quality we our

follow-up final Our Gengaro a is Stephen today from Stifel. from question

of XXXX, and half it kind kind year back we we When developing of being growing think the about throughout quickly. and think should Just more in cadence the weighted? about revenue the

consistently out we're and up. a stepping you for and we've and we're more now it And if it it to at us do. how laying don't you're if believer that we'll how it's approach, we've definitely reason be vehicles, going mean, want what our much which slowed would building a I everything that down, good of look said we we lose we in we'd displaying tell and there's are be you because done very money you doing -- otherwise, to

you see things in the aviation I this it the and scaling. projections what of versus So from will of reality can just and back stop -- mean it's industry analyze things industry gets to -- the you

or the for We further back closing to reached like over our end of to floor comments. I'd any session. question-and-answer management turn the

thank company, going to you of for Thank us do to we're to you. we your commitment I'd just here it build like everybody today in and great and questions, your time a and all help America, your hope join us.

Thank does you. teleconference conclude webcast. That today's and

disconnect your line We and wonderful you have today. your may at time, participation for You this thank a day.