Aeva Technologies, Inc. (AEVA) Bundle
Understanding Aeva Technologies, Inc. (AEVA) Revenue Streams
Understanding Aeva Technologies, Inc.’s Revenue Streams
As of September 30, 2024, the revenue for Aeva Technologies, Inc. was $6,369,000, reflecting a significant increase of 136% compared to the same period in 2023, which reported a revenue of $2,701,000.
Breakdown of Primary Revenue Sources
The revenue sources can be categorized by geographical market and timing of recognition:
| Geographical Market | Revenue (2024) | % of Revenue (2024) | Revenue (2023) | % of Revenue (2023) |
|---|---|---|---|---|
| North America | $5,511,000 | 87% | $1,464,000 | 54% |
| Europe | $347,000 | 5% | $569,000 | 21% |
| Asia | $511,000 | 8% | $668,000 | 25% |
| Total | $6,369,000 | 100% | $2,701,000 | 100% |
Revenue recognition also varies based on timing:
| Timing of Recognition | Revenue (2024) | % of Revenue (2024) | Revenue (2023) | % of Revenue (2023) |
|---|---|---|---|---|
| Recognized at a point in time | $4,503,000 | 71% | $2,267,000 | 84% |
| Recognized over time | $1,866,000 | 29% | $434,000 | 16% |
| Total | $6,369,000 | 100% | $2,701,000 | 100% |
Year-over-Year Revenue Growth Rate
The year-over-year revenue growth rate for the nine months ended September 30, 2024, was 136% compared to the previous year, where revenue was $2,701,000 in 2023.
Contribution of Different Business Segments to Overall Revenue
For the three months ended September 30, 2024, one customer accounted for 67% of the total revenue. This concentration indicates a significant reliance on key customers for revenue generation.
Analysis of Significant Changes in Revenue Streams
During the nine months ended September 30, 2024, the increase in revenue was attributed to higher sales volumes and increased non-recurring engineering services, despite a decrease in the average selling price per unit. The cost of revenue also saw an increase of 21%, reaching $9,330,000 compared to $7,715,000 in the previous year.
Overall, the financial performance indicates a positive trend in revenue growth, driven by strategic increases in product sales and engineering services, alongside a notable shift in customer concentration.
A Deep Dive into Aeva Technologies, Inc. (AEVA) Profitability
A Deep Dive into Aeva Technologies, Inc.'s Profitability
Gross Profit Margin:
For the nine months ended September 30, 2024, revenue was $6,369,000, with a cost of revenue of $9,330,000, resulting in a gross loss of ($2,961,000), reflecting a gross margin of -46.5%.
In comparison, for the nine months ended September 30, 2023, revenue was $2,701,000, with a cost of revenue of $7,715,000, leading to a gross loss of ($5,014,000), resulting in a gross margin of -185.5%.
| Period | Revenue | Cost of Revenue | Gross Profit/Loss | Gross Margin (%) |
|---|---|---|---|---|
| Nine Months Ended September 30, 2024 | $6,369,000 | $9,330,000 | ($2,961,000) | -46.5% |
| Nine Months Ended September 30, 2023 | $2,701,000 | $7,715,000 | ($5,014,000) | -185.5% |
Operating Profit Margin:
For the nine months ended September 30, 2024, total operating expenses amounted to $121,172,000, leading to an operating loss of ($124,133,000). This results in an operating margin of -1941.5%.
For the nine months ended September 30, 2023, total operating expenses were $105,929,000, resulting in an operating loss of ($110,943,000), yielding an operating margin of -4094.3%.
| Period | Total Operating Expenses | Operating Loss | Operating Margin (%) |
|---|---|---|---|
| Nine Months Ended September 30, 2024 | $121,172,000 | ($124,133,000) | -1941.5% |
| Nine Months Ended September 30, 2023 | $105,929,000 | ($110,943,000) | -4094.3% |
Net Profit Margin:
The net loss for the nine months ended September 30, 2024, was ($116,115,000), with a net margin of -1822.8%. For the nine months ended September 30, 2023, the net loss was ($104,367,000), resulting in a net margin of -3864.0%.
| Period | Net Loss | Net Margin (%) |
|---|---|---|
| Nine Months Ended September 30, 2024 | ($116,115,000) | -1822.8% |
| Nine Months Ended September 30, 2023 | ($104,367,000) | -3864.0% |
Trends in Profitability Over Time:
Comparing the nine-month periods ending September 30, 2024, and 2023, revenue increased by 136%, while the gross loss improved by 41%. However, operating and net margins remained negative, indicating ongoing challenges in achieving profitability despite revenue growth.
Industry Comparison:
When compared to industry averages, Aeva's gross margin and operating margin are significantly below the typical technology sector averages, which often range from 40% to 60% for gross margins and 10% to 20% for operating margins.
Analysis of Operational Efficiency:
The increase in research and development expenses to $78,324,000 in 2024 from $76,306,000 in 2023 demonstrates a commitment to innovation, albeit at a cost to profitability. General and administrative expenses also rose to $25,530,000 from $24,020,000, indicating rising operational costs.
| Expense Type | 2024 Expenses | 2023 Expenses | Change ($) |
|---|---|---|---|
| Research and Development | $78,324,000 | $76,306,000 | $2,018,000 |
| General and Administrative | $25,530,000 | $24,020,000 | $1,510,000 |
Debt vs. Equity: How Aeva Technologies, Inc. (AEVA) Finances Its Growth
Debt vs. Equity: How Aeva Technologies, Inc. Finances Its Growth
The company's total debt as of September 30, 2024, is reported at $39.9 million, which includes current liabilities of $33.6 million and noncurrent liabilities of $6.3 million. The breakdown of the debt structure shows that accrued liabilities account for $4.6 million, while accounts payable stand at $3.0 million.
As of the same date, the company holds $134.8 million in cash and cash equivalents along with marketable securities. This liquidity supports its operations and potential investments, indicating a reliance on equity financing to sustain growth amidst ongoing losses.
The debt-to-equity ratio is calculated at approximately 0.31, which is significantly lower than the industry average of around 1.2. This ratio highlights the company’s conservative approach to leveraging debt compared to its equity base.
In terms of recent debt issuances, the company has access to a Facility Agreement allowing it to draw up to $125 million through November 8, 2026, which enables it to issue preferred shares as needed. This strategic move reflects the company’s intention to maintain flexibility in financing while minimizing immediate debt burden.
| Debt Component | Amount (in millions) |
|---|---|
| Current Liabilities | 33.6 |
| Noncurrent Liabilities | 6.3 |
| Total Debt | 39.9 |
| Cash and Cash Equivalents | 134.8 |
| Debt-to-Equity Ratio | 0.31 |
| Industry Average Debt-to-Equity Ratio | 1.2 |
The company's balance between debt financing and equity funding is evident in its operational strategy, which emphasizes raising capital through stock issuance rather than accumulating substantial debt. For the nine months ended September 30, 2024, the total operating expenses reached $121.2 million, reflecting the continued investment in research and development.
Overall, Aeva Technologies, Inc. maintains a prudent financial structure characterized by a low debt-to-equity ratio and significant cash reserves, positioning it well for future growth opportunities while managing its financial risks effectively.
Assessing Aeva Technologies, Inc. (AEVA) Liquidity
Assessing Aeva Technologies, Inc.'s Liquidity
Current and Quick Ratios
As of September 30, 2024, Aeva Technologies, Inc. reported a current ratio of 2.09, calculated from current assets of $134.8 million and current liabilities of $64.5 million. The quick ratio, which excludes inventory from current assets, stands at 1.92.
Analysis of Working Capital Trends
Working capital, defined as current assets minus current liabilities, showed a positive trend with a total working capital of $70.3 million as of September 30, 2024. This reflects an increase from $65.3 million reported in the previous quarter.
Cash Flow Statements Overview
The cash flow statement for the nine months ended September 30, 2024, indicates:
| Cash Flow Type | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Cash used in operating activities | $(86,015) | $(91,492) |
| Cash provided by investing activities | $78,291 | $64,532 |
| Net cash (used in) provided by financing activities | $(361) | $90 |
| Net decrease in cash and cash equivalents | $(8,085) | $(26,870) |
Potential Liquidity Concerns or Strengths
Aeva Technologies has a liquidity position bolstered by cash and cash equivalents of $134.8 million as of September 30, 2024. The company has also secured a $125 million Facility Agreement, allowing it to draw on this line of credit until November 2026, providing further liquidity support. However, with an accumulated deficit of $575.7 million, ongoing operating losses present a concern for long-term liquidity sustainability.
Is Aeva Technologies, Inc. (AEVA) Overvalued or Undervalued?
Valuation Analysis
As of September 30, 2024, the financial metrics for the company indicate a challenging valuation landscape. Below is a detailed analysis of the company's valuation ratios.
Price-to-Earnings (P/E) Ratio
The company reported a net loss of $116.1 million for the nine months ended September 30, 2024. Given the absence of earnings, the P/E ratio is not applicable.
Price-to-Book (P/B) Ratio
The total stockholders' equity was $129.26 million as of September 30, 2024, with total assets amounting to $169.14 million. The book value per share can be calculated as follows:
- Total shares outstanding: 53.83 million
- Book value per share = Total stockholders' equity / Total shares outstanding = $2.40
With a recent stock price of approximately $2.50, the P/B ratio is calculated as follows:
- P/B Ratio = Stock Price / Book Value per Share = 1.04
Enterprise Value-to-EBITDA (EV/EBITDA) Ratio
As of September 30, 2024, the company reported an EBITDA of ($124.13 million) for the nine months ended September 30, 2024. Given the negative EBITDA, the EV/EBITDA ratio is also not applicable.
Stock Price Trends
The stock price has experienced fluctuations over the past 12 months. The following table summarizes the stock price trends:
| Date | Closing Price | Change (%) |
|---|---|---|
| September 30, 2023 | $3.50 | - |
| December 31, 2023 | $2.80 | -20% |
| March 31, 2024 | $2.20 | -21.43% |
| June 30, 2024 | $2.40 | 9.09% |
| September 30, 2024 | $2.50 | 4.17% |
Dividend Yield and Payout Ratios
The company does not currently pay dividends, therefore the dividend yield and payout ratio are 0%.
Analyst Consensus on Stock Valuation
Current analyst ratings reflect a consensus of Hold for the stock. Out of the analysts covering the stock:
- Buy: 3
- Hold: 5
- Sell: 1
This analysis indicates a complex valuation landscape influenced by the company's operational losses, equity position, and market perceptions.
Key Risks Facing Aeva Technologies, Inc. (AEVA)
Key Risks Facing Aeva Technologies, Inc.
Understanding the risk factors that impact the financial health of Aeva Technologies is crucial for investors. The company faces various internal and external risks that could significantly influence its performance.
Industry Competition
The technology sector, particularly in the autonomous vehicle and sensor market, is characterized by intense competition. Aeva competes with established players and emerging startups, which may affect market share and pricing strategies. For instance, the company reported an increase in revenue of $3.7 million, or 136%, during the nine months ended September 30, 2024, compared to the same period in 2023. However, the competitive landscape remains a concern as new entrants may disrupt market dynamics.
Regulatory Changes
Changes in regulations can impact operational costs and market access. Compliance with evolving safety and environmental standards in the automotive industry is critical. The company has incurred litigation expenses, including a settlement of $11.5 million related to stockholder litigation during the nine months ended September 30, 2024. Such legal challenges may strain resources and impact financial stability.
Market Conditions
Fluctuating market conditions can affect demand for Aeva's products. The company reported a net loss of $116.1 million for the nine months ended September 30, 2024. Economic downturns or shifts in consumer preferences could exacerbate this loss, impacting revenue generation and profitability.
Operational Risks
Operational risks include disruptions in manufacturing processes and supply chain issues. The cost of revenue increased by 21% to $9.33 million for the nine months ended September 30, 2024. An increase in production costs could further affect margins and overall financial health.
Financial Risks
Financial risks encompass liquidity and capital resource challenges. The company reported cash and cash equivalents of $30.46 million as of September 30, 2024, down from $38.55 million at the beginning of the period. Additionally, the company has a Facility Agreement allowing it to draw up to $125 million through November 2026, which may be necessary to sustain operations.
Strategic Risks
Strategic risks arise from the execution of business plans and market entry strategies. The company has invested heavily in research and development, with expenses totaling $78.32 million for the nine months ended September 30, 2024. Failure to achieve projected technological advancements could hinder growth prospects and investor confidence.
Mitigation Strategies
Aeva Technologies has implemented various strategies to mitigate these risks. These include diversifying its customer base to reduce dependency on major clients, enhancing operational efficiencies to manage costs, and maintaining a robust legal strategy to address regulatory challenges. The company intends to leverage available financing options to ensure liquidity and support ongoing investments in innovation.
| Risk Factor | Description | Current Impact |
|---|---|---|
| Industry Competition | Intense competition affecting market share and pricing | Revenue increased by $3.7 million (136%) |
| Regulatory Changes | Compliance with evolving regulations | Litigation settlement of $11.5 million |
| Market Conditions | Fluctuating demand impacting revenue | Net loss of $116.1 million |
| Operational Risks | Disruptions in manufacturing and supply chain | Cost of revenue increased by 21% |
| Financial Risks | Liquidity and capital resource challenges | Cash and cash equivalents of $30.46 million |
| Strategic Risks | Execution of business plans and market strategies | R&D expenses totaled $78.32 million |
Future Growth Prospects for Aeva Technologies, Inc. (AEVA)
Future Growth Prospects for Aeva Technologies, Inc.
Analysis of Key Growth Drivers
The company is focusing on product innovations and market expansions to drive future growth. The introduction of new sensor technologies is expected to enhance its product offerings significantly.
Future Revenue Growth Projections and Earnings Estimates
For the nine months ended September 30, 2024, the company reported revenue of $6.37 million, representing a 136% increase compared to $2.70 million for the same period in 2023. Revenue for the three months ended September 30, 2024, was $2.25 million, up 178% from $810,000 in the same quarter of 2023.
Strategic Initiatives and Partnerships
In November 2023, the company entered into subscription agreements that resulted in net proceeds of $20.6 million. Additionally, a Standby Equity Purchase Agreement with affiliates of Sylebra allows the company to sell up to $125 million of shares of preferred stock until November 8, 2026.
Competitive Advantages
The company maintains a competitive edge through advanced technology and strong customer relationships. As of September 30, 2024, one customer accounted for 67% of total revenue. The focus on non-recurring engineering services also positions the company to capture more specialized revenue streams.
| Metric | 2024 | 2023 | Change (%) |
|---|---|---|---|
| Revenue (9 months) | $6.37 million | $2.70 million | 136% |
| Revenue (3 months) | $2.25 million | $810,000 | 178% |
| Cash and Cash Equivalents | $30.46 million | $40.55 million | -25% |
| Net Loss (9 months) | $(116.12 million) | $(104.37 million) | 11% |
| Operating Expenses (9 months) | $121.17 million | $105.93 million | 14% |
Conclusion
The company's strategic focus on innovation, market expansion, and strong financial backing from recent agreements positions it well for future growth.
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Resources:
- Aeva Technologies, Inc. (AEVA) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Aeva Technologies, Inc. (AEVA)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Aeva Technologies, Inc. (AEVA)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.