Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
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| As you know, our multi-purpose platform, or MPP, and many of the underlying technologies, electric drive unit, battery modules, and the system itself offer revenue generating potential for more than just complete vehicle sales |
| We see 2024 by the fact that we democratized the way the assembly line goes together, we'll be able to capitalize on a lot of those opportunities |
| We've also been able to utilize better labor arbitrage between California, if you will, and Oklahoma |
| We expect negative gross margin to improve on a per vehicle basis as we increase overall production levels and achieve commercial cost savings on material and labor costs |
| In summary, despite a very challenging market backdrop this year, we have successfully raised capital to achieve our objectives and will continue to do so |
| It was an historic day for our company and a very proud day for our team |
| So we feel the best we've ever felt |
| So we feel good about the 14,000 units |
| We are proud to be a creative and adaptive team and continue to find innovative ways to acquire long lead time capital intensive and environmentally sensitive items |
| And we have great liquidity and we have a strong base that is growing more towards the long-term side |
| So we're feeling good about as we step through 2024 based on the visibility of the macro environment we see, and we see lots of room for us to improve on everything we're giving guidance to today |
| First of all, when we had the privilege of working with a company like Walmart and its leadership team, they understand logistics and scaling better, I believe, better than anyone, especially in a very demanding manner in which customer delivery on location and as well as bring it to me |
| From my first days of meeting Canoo in mid-2020 and understanding the unique benefits of the modular platform and the technology stack, I had a strong belief in the substantial business opportunity for the company |
| My conviction about the company's success became stronger after getting to know Tony and the team here and witnessing the business model pivot that he directed in early 2022 |
| We have a strong track record of raising small amounts of capital and allocating it to different functional areas and using milestone-based achievements |
| The news focused towards well-funded, high credit quality commercial government and military customers appears to be well timed |
| It was an exciting and historic quarter for two reasons |
| It's an amazing workforce and it's got a lot of upside in it |
| Not only are our fleet customers contracted multi-year volume buyers with bankable credit profiles and are those who demand minimalism with maximum functionality and safety, these partners can help you fast-forward generations of continuous improvement, which will ultimately benefit our consumer customers when we increase and expand our delivery to these additional markets |
| So as those lines come up, our margins improve dramatically |
| Continuing order book, growth and pricing stability across our target segments |
| 3% sequential growth in the quarter on Stage 2 and Stage 3 orders, strong product acceptance on the commercial fleet side allows us to be more discerning on customer choice and modulate order acceptance given our very strong backlog |
| This improvement has resulted in our revised negative adjusted EBITDA guidance to now be between $85 million to $105 million for the second half of 2023, which is a 30% improvement from the guidance we have shared in the prior quarter |
| We are very proud of our partnership with the state of Oklahoma and its workforce |
| Our relentless focus and discipline of expense management, including the labor arbitrage as a result of change in labor mix from engineering to manufacturing and transition of our workforce to Oklahoma and our deliberate strategy to minimize long-term purchase commitments amongst other factors allow us to improve our negative adjusted EBITDA guidance |
| While times are tough, we are grateful that every day, more and more of you are becoming believers in our strategy that we introduced two plus years ago when we took over the direction and leadership of Canoo |
| For those of you that don't remember, the pivot was the change from a consumer-facing electric vehicle to the fleet-focused electric delivery vehicles that have now generated $750 million in committed orders or 18,000 units for key commercial customers and also large additional opportunities with government customers |
| They have an incredible amount of capabilities but they have large funds for the workforce development, which could give us even more competitive advantage |
| I mean, we're real, right? And they're very discerning customers that provided that revenue, and that revenue will grow quarter-over-quarter |
| I hope everybody is doing well |
| Statement |
|---|
| Our negative gross margin of 384,000 during the three months ended September 30th, 2023 was primarily due to the custom-built initial vehicle deliveries to NASA and certain increased logistics and freight costs |
| This business model shift turned out to be prescient, given the difficulties of consumer exposure in a high interest rate environment |
| Adjusted EPS was negative $0.07 per share for the quarter compared to adjusted EPS of negative $0.31 per share in the prior year period |
| The risk of manufacturing before rigorous testing has been blown out by the best, you run the risk of costly recalls |
| Look, as I mentioned, there have been substantial headwinds for Canoo and the whole EV market over the last 12 months |
| Adjusted EBITDA was negative $40.4 million for the quarter, compared to negative $80.8 million in the prior year period |
| Our monthly cash flows in Q3 of 2023 was approximately 40% lower than our average cash flow per month in 2022 |
| Our 2023 second half adjusted EBITDA guidance of negative $85 million to negative $105 million will bring our full year adjusted EBITDA guidance to negative $210 million to negative $235 million, which is approximately a 50% reduction from the prior year |
| Adjusted EBITDA of negative $120 million to negative $140 million and CapEx of $70 million to $100 million dollars |
| Are you still getting any issue with the supplies? I mean, I know the labor strike, the UAW labor strike, some of the suppliers had a little bit of a backlog |
| But at this time, for many reasons, based on the work we're doing, that name is being kept confident |
| But we still have things to prove |
| Second, our continuous optimization of operating expenses and narrowed focus on our milestones has resulted in the lowest adjusted negative EBITDA since we have been as a public company |
| GAAP net loss was $112 million for the quarter, compared to gap net loss of $117.7 million in the prior year period |
| In addition to that, we've seen a reduction in our CapEx |
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