Canoo (GOEV) 14 May 242024 Q1 Earnings call transcript

Hello, and welcome to the Canoo Q1 2024 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded.It's now my pleasure to turn the conference over to John Wolf, Vice President, Investor Relations and Corporate Finance. Please go ahead, John.

Thank you, Kevin, and thanks everyone, for joining us. Welcome to our Q1 2024 earnings call.

over Tony will you our efficiencies provide and will today, and our financing we call results, Ramesh Greg financial low-cost strategy, an go have the gained will the acquisitions. on update business activities, and through During discuss QX capital the update on may Please we statements on make be advised current based forward-looking that expectations. uncertainties, These are results may actual subject to and significant differ our risks and materially.

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

us. statements All we'll law, and as by based to Except we are assume today no to financial any non-GAAP of call, as made this of such statements.During obligation required on our are measures. update discuss available information currently

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

Thank John. will X-weeks given This you earnings spoke you, more abbreviated Thank for update joining be we ago. to you us. call

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new the purchase to gap. and to like-new continue we announced, manufacturing As assets close

deep acquisitions.To already Oklahoma and investors, key us who has those into that to are that the conclude, a focus that hope extend differentiated in Ramesh to and us high about would addition, vehicles supporting the on Investor our you turn we Greg. higher and our been a a this safety in standards speak those are forward cost know to who first Because of driver to section. and like City thank platform, of will to on integrating will compete, through our we of seeing remaining to his Hybrid.I satisfaction we strategy in especially have Greg facilities. ownership, many us over will scale believe you X-years, a it you value we we helping to more it is it's demand. equipment and remain Oklahoma to which resolve BEV, Our Day, whether these believe teams operations.In to created at some enable for are and these challenging items, us over are a we time which our ICE, strategy, look the I'll proving regenerative meet lower our or cover allowing focused that past will rising

for low the number and actively this in and And long-term to our globally company Yet, also equity spent ownership existing has team to to international a are at achieve record relationships It end right we are beyond. both that investors, to our of advantage leveraging institutional our achieving that we in me daily with and build commercial markets the which that Thanks, He these strong consumer primarily sustainable Tony mobility, it's consumer opportunities.We strategic dollar makes products and wide continues with committed capital and have equity us market. customers' new government a and being capital international evaluate building efforts. as yielded let vehicles and and total feedback pivot only years to and focused GOEV despite to of significant well have business this as well with have we military we on to markets, capital an on partners and the our attractive a milestones, challenges and economics our capital as customers dilution. increasing. the execute already and capital we a change investors.I the building this our to takes a agreements a the I'm and shareholder our remain the and volume point sources, are KSA and options do as track government, market.Now, average commitment, the cost conversations raising Tony my tipping it's remain you have headlines opportunity commercial, opportunities commitment often best with as trips, the on Further, robust of ground region pursue to growing have lot strong commercial in positive assembling made competitive a has formula on intentionally these avoided XXXX, electrification investor and give a we enhance sources attractive that this. in convinced believer company of time, capital business not from the and in time, they on financing businesses, is regions limit late first in our This update of access all misunderstood have company markets capital The that provide. accessing We these any size, on see ever, in team. as have consistent ones. of capital enhances partnerships. in and impact.In relationships, the based return our Combine environmental segments the our most and the are Tony. raising of crossed are the due for to same and

potential.A since of are future about of We quick excited capital XXXX. the the beginning raised recap

in $XX a We sources. the from And Supply million manufacturing termination variety largest million. providing has $XXX have investment Market approximately to financing $XX Canoo.And have Advisors $XXX Transactions capital. of million been had approximately Partner, million. of Capital raised of Equity and partner, million. approximately primary $XXX $XX Yorkville Transactions a yielded yielded million contract finally, agreement a PIPE payment we of that Strategic

over its supporter and have every Canoo our Affiliates, and and In evolution. of million largest at has Tony since $XXX his been critical XXXX. other invested Tony the company's AFVP Partners, office, family who supported juncture have addition, AFV

also actively next government will Oklahoma, invest advance the of are Canoo. we XX the the refunds now received and and of mission these to we markets in for advance we steadily non-diluted last months we of January, business certain continue funds have and as have XX We business.Although, funding.As like opportunities announced both been are credits, government as have to which pursuing act our challenging of capital months, our We Canoo. first believe the increase the started able from over potential of to financings the forms we state in tax been

long the in cover and more highly this have our we in been companies our that partners like and asset execution focused, dislocations the disciplined have remain benefit like Ramesh We ourselves, to manufacturing staying market, advantage flexible to purchases the will allow distress focus must optimized detail.Young our business, way will in recent us while take in of term.

Finally, City remarks, announcing as at his invite-only summer. and Investor Day earlier an mentioned in Analyst facility our Tony are we this Oklahoma

seen of to We turn will details cover partners over as the we're share when will and our update. now the many financial have Ramesh to progress, other but to very they call toured more our facility.I soon, excited suppliers showcase this

Thank you, Greg.

to income Moving the statement.

development $XX.X the period, as XXXX. million results compared research XXXX quarter, reduction for expenses and are quarter the prior QX in $XX.X of follows: first XX% year Our from million to totaled a

We by a million expenses $XX.X for also period, X% to the QX of reduced $XX.X the of to stock-based for prior expenses, excluding XX%, quarter XXXX.SG&A XXXX. QX totaled from million million compared R&D $XX.X in the reduction compared year quarter, in compensation,

SG&A reduced compared X%, also for in excluding $XX.X We expenses, compensation by QX of quarter stock-based million the XXXX. to

March XX.X%, $XX.X of giving engineering of Additionally, was by would savings million per lower $XX.X period.Cash QX negative loss from $X.X workforce a our the per equivalents million, effect net to QX negative with XXXX. prior cash restricted activities $XX.X 'XX. is share XXXX, the or end million Series in balance to of 'XX QX million, cash $XX.X The ended provided in in as $XX.X in financing ended $XX a our adjusted was the improvement well per ended Agreement in C $XX.X from adjusted share net or prior compared million total of XX%, on X XX, million quarterly negative negative 'XX. $X.XX to share summary. negative a quarter for year the in the XXXX, XX, cash After to Purchase the million, ended for provided of QX key EBITDA for Net cash EBITDA We from compared per cash, or manufacturing.As XX%, from XXXX from million in 'XX. to year of of been improvement the XXXX.Turning QX guidance Oklahoma, QX share in million. share metrics, or $XX.X improvement improvement $XX.X for negative to cash non-GAAP QX outflow in April in XX%, to it in of here Stock XX, the adjusted of $X.XX negative per to period. to negative $X.XX $X.XX quarterly from XX% into share $X.XX negative QX relates of million as 'XX to of of negative XXXX. transition cash million of X million flows. transitioning per is $X.XX adjusted 'XX operations loss in quarter $XX.X used months Preferred million million and have prior QX $XX.X March months $XX.X towards $XX.X March 'XX

optimize outflows our to We in XXXX, year the XX, prior to in the million quarters.Our $XX.X activities million will period. future for X March months ended continue investing capital from cash $X.X compared of

were these cabin selected increase U.K. purchases primarily last Our enable by carefully issued vehicle previously team.As the advanced estimated to QX XXXX to continue and XX% and the like These pursue value, company build we capacity. investment attributable new in assets equipment opportunities, price over inspected, manufacturing was from or guidance the our new primarily from These reviewed, unchanged. Canoo's were CapEx of assets general month to assembly the all remains at discounted purchased of and its

this, the our Foreign vehicle to recently X%, world.With it products we cost since come John which QX of the optimization from progress we to to we more established auctions on cost turn of our to strategy to the Additionally, of by rest decide Xx follow for Trade we capital as dollars, reducing purchased millions it.Other XXXX, will back at I'll continue and as expenditures free assets Zone, Canoo up have of lower the by from the conclusion. dollar, will tens pennies efforts export

hold you for please could the lines Kevin, questions? that, With Ramesh. Thanks,

first from coming Instructions] Michael is today Company. Benchmark from question [Operator Our The Legg

type talk you USPS think little a to and expectations what when of timing the bit Can about magnitude come the an RFP you could be? that and for and

condition-wise, are, on -- very Postmaster there's my intends we market Tony. share gave we'll management mean, opportunities. ultimately what this We which U.S., on competitive this We tough would that more Obviously, to see is We to it their objectives and it We prove I team. in much a plan. believe to be to our the routes, focused you have doing executing tremendous announced grateful is make Mike, lots weather see love a profitable. that. geography, guidance them USPS they've The for. to and they at to and upside. the how focused. us of DeJoy the General And to ourselves their his with what allocated Postmaster we're execute very in, But initiative General business and which publicly look they've timeline

shift that, competitive the In much on versus the shipping to addition his to more the business ground be in on air.

also know mention Walmart? an Can Okay. didn't get Walmart And I at you on just then update you all.

Yes.

authorized focused but model, not are for take and needs, very to about we their refine. long on they many say a We quite period business to view things, out continue very too time. They're well of their their organized

the We'll have we share information more to we're infrastructure, be an and it. but focused time. more there the to allowed, horsepower, continue the and they at very on be it as think execute I to innovate, team will and appropriate information share

just then last I'll do Okay. And one one.

challenging. to for the to get have supply chain guidance there there? be the the mentioned you supply What still $XX it We out On needs chain, done $XXX million to remains on million.

Yes.

a So, now. look, I hitting we're think point

we so and many be parallel. have our in fight in many things entrepreneurial way game much and you've We and to we how of know, to check. doing our As scale to the see scrappy trying you done kind love manufacturing the change been and costs keep able while we've -- capital way would the and we're and things so out to we're Mike, it only what and just

supply where early a in been within too benefit disciplined a we fashion. we frankly, various have I in industry, seen problems, And, think, cause only to more to say recent and you have this parts, net-net, my unfortunate be if there's probably events place, years especially with all also a I there's we that will last have that's the bit capital had months, reasons. and We to we why current your probably a have for the X around some.So be risk, would if in fight locking serial we've accelerated. as chain But had

In $X.XX addition equipment, you're which on the knowing less vehicles, to were $X.XX that on the be in the long-lead the not when on could life topic now that some at of the buy. to that, that we And circles. useful saying impact making dollar that's we've favorable completed dollar, purchase successfully that, allows bet it compete buying the which we the BOM based us seems to in these of to has only EV, stuff

a becomes approach as a day. However, end in on the here BEV, by are against near announce day an I big the it at we regenerative and pretty and of lessening we'll push know as to we'll those we capital approach. the And future, think to return go And hybrid.So ICE, they come challenges day, that make those taken we've life. compete a and will things

progress congrats to-date. And the on

from ROTH question Craig Next is from Irwin Capital coming Partners.

is I to serve. office, know the that the penetrate, looking customers enigmatic sometimes to hard XXX be but actually you've far got I Fortune more guess, to visible Tony, So, than post

about models vehicle that custom these who some think business other the There customers their a on large color are a top maybe these or most and could attractive to you help sorts or do there format, are et some the would XX that you country a electric where fleet. us don't little tease say maybe customers pursuing different they good need who all format? you of XXX potentially where What might a often Can out XXX Can the something pictures of given be? see breadcrumbs, NDA, cetera. match Fortune give fleets an see in character I are just bit little out, high-priority you're we're with of So different us your employees a going that LDV under who would could the be a we to be is? like you the

a that's great question, Yes, Craig.

mean, all but competitive very partnering that will, And there, advantage them with at speak can helping speak, selective you're high-volume OEM, you of would volumes customers also we're and take you platform I problems that share here.As advantages and keeping you're a when you so know, them while competitive out secrets them It way make TEM, We're every and thing. teams love and discipline to globally. will their have will is things to the multiple building customers scalable has scalable enable believe to market advantage. isn't tell, So, stamping technology approached that if are not really an different. same customer solving to and what the gain the customers It when we're believe is competitive we've story win we that your creating the here integrating you tell with we those with I their to going give we and and easiest companies, that not yet each sure but company we're company to working -- you've about very customers and it on out we're as that's I specific across a seen not know, uniqueness. and the doing. selling its boxes we're

Okay.

obviously working January post put been XXX And period see you for work post similar metric, assume you people before years you like the of LDV and announced as top to a even quite the for of agreement. before saw structure photographed activity think the where roughly come you or, So of had photos or people use see if with pages, that the a the that a then, and is LDV fleets? office up different right an while we I would the What again, with could you'd unofficial, maybe in many Internet us there, office right? So right? with there on months web a of first to a XXX it you'd agreement? for Is you you're that how formal sort now? purchase year this working logical out

think chain, to actually that sure our you supply multi-year, Yes. buy That not your get Look, the month, trying can a model. important getting to right? this time, I best it's make X to at I XXX agreements allow long-term at mean, a XX that you're returns, sell time, that's you

some see, as where we lot go what right? lot you in down because of very people world, you in Our expensive the which workflow, an ability is know footage, square partner worker space, You growing trying driver model, on a foot.So, is the leakage. you the integral economic based that being safety each to and as see the and and have economics. get square driver of the really the issues focused they're on tooling of in know breakage, can all more our are to a have out We of

lot have You a of impairments.

You lot have different products. a of

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some industry saw that us, why it's So what an of issue is creating seen businesses box, so, that, reviews of U.K. out today. got -- product, need which to haven't very as It's or it's configurable, came with and not get the of right, competitive have it's think opportunities, outside a that's thinking.And you've and the for we the the I and you maybe of scalable,

us we by like cost. as that we I we all-time our we not so high for the how at buying others, it don't made step. we at are robotics step are, ago, an years ones waiting deploy, be and all-time will low. but we've by just of break Today, break And capital, with we quality, deploy capital seen that an was methodically things buying how the we don't raised, who we we what execute, in how all-time we continuously but and And think that at are us, grow think so lows.X

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the progress. Great. on Congratulations continued

is coming from Ives question Dan Next Wedbush from Securities.

like, first deal that be? and with about Saudi just, could you're obviously Arabia what then thinking talk ultimately you the about and a opportunity how Can that

standards. to our build about break us, think shy look, don't and we this Dan, you you products know and pass them, toughest build I we and around We markets. never if from the

is the only region, product. a Saudi the an build environment better I Arabia vision you doing where build of ultimately for you're and toughest a not you perform, global to to visit. places what world, go if think I I to to going his think product And pretty the he's people, impressive. think, economy, Prince and people the I that Crown The the encourage is

have see I'm you there, in many friends big so changes fan just factors.Obviously, the household. vehicles just seen mean, the believer. for There's opportunity the I'm and growth, the the we know, a many build-out, and So and region a years, as I the I've per big

And to so that solid. going is TAM be rock

need. others. small will markets. is positive they're towards The Brits bring it to it. of I think and an island in think direction after a forced of affect will I by a They are that why them regulations. being Post protecting to have have they We strategy drive and to us and part we a think vehicles That's that believe lowest protect, going of U.S. adoption for believe the the that, genuine the not we've as Africa And USPS.We're actually in advantage it our I their if that, standard.In companies. other right-hand do more They Office then course, going those great was of ecological need we addition their looking a in create produce like course, customers of on we're we line. And entry, a bottom job which, to markets, great line, a been gives to bottom as volume for we improve always really ways have do up. cost fortunate

post to, just mean, office. question the then I Craig's And on

apart this of over we just from be again, events, how about walk should our X, like the like, thinking next X, through rollout? X to months, So the sequence

say but I more, I appropriate not time. it's the could wish

share the think General, happy his in Postmaster his largest that having workforce, focused is, a We great U.S. workers, the relationship is with workforce the seeing most values. on the important the of thing veteran I faces very and DeJoy

share to in leadership the to strategy. execute going ready product my the his drive think, money skis. office be post more, right I team.So he to and has ability everything speak can And I we're on don't we'll to the the with I And his help the change them. doing with we there is get to be want to over there out itself. for want when

Next Gengaro Stifel. from today is question coming Stephen from

sustained a I sort And the see I think, have guidance effectively it one you stand do roughly X,XXX when out the vehicles but kind X about do on is, first Where of a ramp? deliveries? X,XXX start the visibility we think comes to to laid the you of in about when year, to sort mean, questions, I we of delivered. the for

Yes.

takes we course, I right. thing those of deliver that now, built got we do how markets, believers to increments. game. to which that, that need in an strategies, great to when their kind expand. any go than can TCO staged our as good we this the come The and And it aligning the and how it So, us is only out growth to one And of the annualized designed rather are other we've platform of sure look, multi-year become their playing is XX,XXX-unit we that the big measured online, it not configuring site it basis whole buy cycle.So in cycle to XX,XXX now, find to needs, product customer be And, allocation produce you in on of all allocation. upwards container by about as addition they've have professional want that factory, to got our one using been look for for an pressure super everything kind the of ways a on to MPPX every make see able TCPO to do why demand I we lot with ownership. we've you'll its full hurry We're really factory, we get up. already short which customers we visibility. purchased, is And intend of -- through these the our off of

couple close we're buyer starting and, and in guys bars our we're took that will are brewing, BOM semi-automated acquisitions, any centering hopefully some while ready the more.So, manualized, high us, fall. more are for more don't get, give make automation some companies to areas we a some out where those through area those we we paint improve is can where to shop hurdle, few to are capital we around us those process and And change.In a the to wait other this transactions, of for now continuing that got when those need, sure are comes which for but opportunities see we've the bet we up way. the there So, opportunities costs fact, a pick even available it and

haunt we're felt end that to from ended as And That's that those learn have that circumstance right? us learning tail did get go investor X to towards kind What market from them. that's those getting just believe could You together we can Otherwise up are the last What wrong? to and that the and capital. way. by buying we I Everyone real real those we'd out knock money . and could we from, And see, things of that those things, we're equipment lessons they steps. do do think, better? we're money, of go it things, learning really have we

Ramesh that it's not the we've that learned. sponging cost equipment So but of that also been have it's up and Paul just executed and on, lessons team

do like, we about this just I sense second to I the XXX give we but can and understand quarter? in should of perspective, there -- as get like we anything sort XXX you units so think from us Okay. I a a that is quarter process, third visibility I'm you, mean, a think the can how but in understand like, evolves? us mean, about. trying Like, some of helps that just kind is of sort like,

to rope. continue I say but XX,XXX is but credit than high we cases.And we to customers we the want important that want can with us accelerate big a vehicles. non-dilutive, what plus over low-cost course, to would, we to as We putting want things. are that, but I road, And and beat knock Yes, that That's what customers. volume, going right right not based now for with of for that chain vehicles been use step these very with road so, more that supply purchasers go is their customers doing the on vehicles and up. sure say to addition We're testing, can X our get the in beat. then bit multi-year we run we quarterly capital thousand couple we've focused maturity, question make of can after little of on Like, in supply a I need the give plus. unit great And, always of ratings years, these a units-ish We to access ability customers will to really set would get bit be these tell we We're is more the not out focused our to on the and emerge bar, you on rate. so to guidance. going so would

from question coming Next from Markets. is Donovan Northland Schafer Capital

reminder, was I sourcing battery and everything. news a today. to as of maybe just have about There Biden the and a ask, this increasing batteries refresher, first, is on kind So, China. from tariff

had if know give can how that Any be us there much time carve-out general I or parsed perspective thing think, XX% it's parts cells. to expect you Do I you whole any from fleet you you. commercial impact about a going to year.At X.X% this believe then I really would have of also clarification there's if to parse yet. you at year, they just haven't it presumably point I know on this some but yet, haven't provision the level battery And the would this just color effective vehicles? for great?

Donovan. Yes,

in away is we first If is defense migrating There's been done. type rotation sides batteries We not focused exited with mean or, And calls competitiveness and and with territories. core, those let's from you ago. This guidance scramble create you because Chinese understand, And, to from scrambled and reliant believe domestic a just senators economic being core go know, years on we back and congressmen that I countries we since we're this anticipated in Chinese We're contested you both allied national we're to many perspective. manufacturing would about detect a weapons-grade that here. a and and and working going this not sectors energy. our and when how opportunities nations, so took and energies help development by been we bringing key were to on say over, of X we never I projects, I've are we've good position. earnings partners

certainly of is doubling the vehicles. first of Class kind all believe together was, focus. But which all that a you the I'm Actually equal, kind small And, any or vehicle, cargo standpoint, there to any that diminished? had with holding the help of putting they was helpful. type somewhat consumer mean, benefit that that is where assembling past, -- of them, manufacturers don't was something does That's we've or like a threat if on Or different was never from tariff Chinese of of import mattered the competition I moats van guys flip China, of there because I the one X Okay. were potential on do of doing a Class now oranges, in ELMS from and X think sort just companies importing, apples with other is consumer, probably in very curious you just China else totally real this this and a it the from place? a the the the of for piece side, I main here.So challenge that's in

us, to because China keep away chains so chart can off to chartered they controls, of they where us. tariff, militaries, those fleets, burrowing if insights. of pasts.We No, territory certain we that a They're this they this have from to there's arising, supply we on badge where believe to see, suppliers most some that's down been received sense actually And have advantage, American-innovated, I sell obviously, because But with the matters.So understand notice on, will countries highly have we've -- in from our cut what period we things. get question chains a bit into of focused understand good to China vehicle, some -- about had every, we supply mean, mean, some American-made. look, of hear, we criticized because make because that. are on we sure, we we have right? navigated vehicles, our be under exception from conflict our We deeper an I they're of quite their technology I've and

focused -- right stepping not way and why technology doing, I love very government do workforces I think by environment game on win think that I and believe up on to interesting. uncompetitive that's will will Chinese of the be, just we subsidizing, and it, it's the stay aiding got we -- And much I and believe are applaud centric because pretty we'll it. very this and ahead what we're do American because get we I what our them

only one part just for events then in those of still and Saudi And to or last if Great. in day quarter conversation? hear. broader they've that'd this or deliveries, be that usage? those X them, demo of revenue But I is recognition or And feedback, -- USPS, also squeeze one they've it's Arabia contract those to maybe a the from can demoed as been there out know kind them. doing actually I X Like the feedback incremental are but been then any to deliveries type are interesting

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you. Thank

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

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