Aeva Technologies, Inc. (AEVA)·Q2 2024 Earnings Summary

Executive Summary

• Revenue increased to $2.00M, up 168% year over year (Q2’23: $0.74M) and roughly flat sequentially (Q1’24: $2.11M), as shipments and NRE from Daimler Truck supported the quarter .
• GAAP operating loss widened to $48.9M (Q2’23: $38.2M), primarily due to an $11.5M de‑SPAC litigation settlement; non‑GAAP operating loss was $32.0M (Q2’23: $31.1M) .
• Liquidity remains solid: $160.2M in cash and marketable securities plus an undrawn $125.0M facility (total liquidity $285.2M at quarter‑end), supporting execution into 2026 SOP with Daimler Truck and near‑term Nikon industrial launch .
• Strategic momentum: continued scaling of Daimler/Torc on‑road deployments, final validation complete for Nikon ahead of Q4’24 deliveries, selection by a top U.S. defense security organization for critical infrastructure, and a top‑10 passenger OEM RFQ decision still expected in 2024; a second top‑10 passenger OEM collaboration also initiated .
• No quantified financial guidance was provided; timelines were reaffirmed (Daimler SOP 2026; Nikon Q4’24 launch). S&P Global consensus estimates were unavailable at query time, so we cannot assess beats/misses vs. Street this quarter. Values retrieved from S&P Global were unavailable due to rate limits.

What Went Well and What Went Wrong

• What Went Well

  • Daimler/Torc program tracking: “on track with Daimler Truck’s Program Milestones… continued sensor shipments” (exclusive long/ultra‑long‑range LiDAR) .
  • New verticals and validation: Final validation for Nikon completed ahead of Q4’24 deliveries; first expansion into security with selection by a top U.S. defense security organization .
  • Strategic positioning and readiness: Achieved ISO/IEC 27001:2022 certification, reinforcing Tier‑1 supplier readiness; CEO: “We continue to achieve key milestones… and see opportunity to continue securing additional program wins in 2024.” .
  • Management quote: “We believe the demand for Aeva’s unique FMCW technology… is only beginning… we see opportunity to continue securing additional program wins in 2024.” – S. Salehian .

• What Went Wrong

  • GAAP operating loss widened to $48.9M, impacted by an $11.5M litigation settlement related to the de‑SPAC transaction; gross margin remained negative with gross loss of $(0.85)M .
  • Revenue base remains small ($2.00M), limiting operating leverage near term despite strategic progress .
  • Cash burn continues though moderating: gross cash use was $29.9M in Q2 (vs. $32.6M in Q1), necessitating continued discipline while converting pipeline to revenue .

Financial Results

Quarterly P&L snapshot (oldest → newest)

Q2 year-over-year

Liquidity and cash usage

Vs. estimates

Note: S&P Global consensus detail was unavailable at query time due to provider rate limits; therefore, we cannot assess beats/misses vs. Street for Q2 2024. Values retrieved from S&P Global were unavailable at the time of analysis.

Operational KPIs and milestones

Segment breakdown: The company does not report segments; Q2 revenue was driven by sensor shipments to multiple customers and NRE from Daimler Truck .

Guidance Changes

Earnings Call Themes & Trends

Management Commentary

• Strategic progress: “We continue to achieve key milestones on our production programs… while also making significant strides on additional automotive opportunities with multiple global top 10 passenger OEMs looking to adopt 4D LiDAR.” – S. Salehian .
• Capital position: “At the end of the quarter, our total liquidity stood at $285.2 million… We believe this capital position will continue to enable us to support our existing production partners… and convert more of our commercial momentum to additional production program wins.” – S. Sinha .
• Market adoption: “We are highly encouraged by the industry’s growing recognition that FMCW can help enable more advanced capabilities, including automated driving at highway speeds.” – S. Dardashti .
• New verticals: “Aeva 4D LiDAR was selected by a top U.S. national defense security organization… first deliveries expected later this year.” – Press release .
• Industrial launch readiness: “We successfully completed the final validation of our LiDAR‑on‑Chip module in Nikon’s product… preparing for deliveries to Nikon in Q4.” – S. Dardashti .

Q&A Highlights

• Security vertical economics: Management indicated materially higher ASPs than automotive, “around order of magnitude higher,” and expects this initial win to catalyze further security/defense opportunities .
• Manufacturing readiness ahead of plan: Dedicated Fabrinet LiDAR‑on‑Chip line was completed “a bit ahead of schedule,” supporting Daimler scaling, Nikon Q4’24 deliveries, and future programs .
• Passenger OEM timeline: Despite broader industry delays among some peers, Aeva reiterated expectation for a top‑10 passenger OEM award decision in 2024; commercial discussions have begun .
• Nikon scope: Multi‑year program with high ASPs; volumes akin to a mobility program, with initial launches end‑2024 and ramp over time .

Estimates Context

• We attempted to pull S&P Global consensus for Q2’24 revenue and EPS, but data were unavailable at query time due to provider rate limits. As such, we cannot determine beat/miss vs. Street for Q2’24. Values retrieved from S&P Global were unavailable at the time of analysis.
• Given Aeva’s early‑stage revenue profile and limited coverage, we would expect consensus to be sparse and volatile; we will update with S&P Global data upon availability.

Key Takeaways for Investors

• Execution on milestones remains solid across auto (Daimler/Torc), industrial (Nikon), and now security, broadening end‑market optionality and de‑risking the path to commercialization .
• Near‑term P&L remains loss‑making; Q2 GAAP loss was elevated by an $11.5M litigation settlement. On a non‑GAAP basis, losses were roughly flat YoY, while cash burn modestly improved sequentially .
• Liquidity of $285.2M supports multi‑program execution into the 2026 SOP for Daimler and Q4’24 Nikon launch; runway appears adequate against current cash use rates, but conversion of RFQs to awards will be critical .
• Two top‑10 passenger OEM engagements (one at award‑decision stage, another at collaboration stage) are key catalysts; awards here could be stock‑moving given potential volume leverage beyond Daimler Truck .
• Structural advantages of FMCW/4D LiDAR (instant velocity, interference immunity, ultra‑long range) remain central to Aeva’s thesis and align with regulatory push for higher‑speed safety performance .
• Watch for: (1) passenger OEM award in 2024, (2) Nikon shipments commencing Q4’24, (3) further security/defense wins, (4) continued Daimler/Torc fleet scaling, and (5) updated liquidity/burn trajectory. Positive outcomes on these could compress risk premium and support multiple expansion .

Citations:

• Q2 2024 8‑K and Exhibit 99.1 press release:
• Q2 2024 earnings call transcript:
• Q1 2024 8‑K and call:
• Q4 2023 8‑K:
• Other relevant press releases (security, ISO, rail):