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SES AI Corp (SES)·Q1 2025 Earnings Summary

Executive Summary

  • Record quarter: revenue $5.793M and gross margin 79%, driven by EV OEM development contracts and initial 2170 cell sales; net loss improved to $12.4M and diluted EPS to $(0.04) .
  • Affirmed FY2025 revenue guidance of $15–$25M and reiterated expectation to exit 2025 with above $200M liquidity; announced a $30M share repurchase authorization .
  • Molecular Universe MU‑0 launched with five pricing tiers (free .edu, $150/user/mo, $1,000/team/mo, Enterprise, Joint Development), enabling scalable AI-for-Science monetization across chemistries and customers .
  • Key catalysts: commercialization progress with two EV OEMs, MU‑0 rollout, BESS pipeline via AISPEX MOU, and buyback authorization; all support capex‑light, software/services‑heavy margin mix above 60% over time .

What Went Well and What Went Wrong

What Went Well

  • Record revenue and high gross margin: $5.793M revenue, 79% gross margin; “we had a great quarter booking record revenue of $5.8 million” — Qichao Hu .
  • Commercial momentum: on track to complete EV B‑samples with two OEMs; strong early response to 2170 cylindrical cells for robotics/drones; SK facility strategically valuable amid tariff/geopolitical uncertainty .
  • Scalable AI monetization: MU‑0 launched with five tiers; >12 early-access testers pre‑launch; “largest and most profitable revenue component” positioned for rapid expansion .

What Went Wrong

  • Continued operating losses: GAAP opex $27.8M; EBIT (loss from operations) $(23.3)M despite high gross margin .
  • Cash burn persists: cash used in operations $(22.8)M; capex $0.9M; liquidity mix tilted to short‑term investments vs cash .
  • Estimates transparency: S&P Global consensus EPS and revenue for Q1 2025 not available, limiting external beat/miss framing (see Estimates Context).

Financial Results

MetricQ1 2024Q4 2024Q1 2025
Revenue ($USD Millions)$0.000 $2.040 $5.793
Gross Profit ($USD Millions)$0.000 $1.288 $4.557
Gross Margin (%)n/a 63.0% 79.0%
EBIT (Loss from Operations) ($USD Millions)$(21.271) $(29.133) $(23.273)
Net Income ($USD Millions)$(15.557) $(34.545) $(12.432)
Diluted EPS ($)$(0.05) $(0.11) $(0.04)
Cash Used in Operations ($USD Millions)$(8.979) $(12.3) $(22.833)
Capital Expenditure ($USD Millions)$6.758 $0.2 $0.916
Liquidity (Cash + ST Investments) ($USD Millions)$—$262.5 ~$240

Notes:

  • Liquidity Q4 2024 from press release; Q1 2025 stated as ~$240M with no debt .
  • Gross margin Q1 2025 from CFO remarks; Q4 2024 margin per press release .

Q1 2025 Actual vs Consensus (S&P Global)

MetricActualConsensusDelta
Revenue ($USD Millions)$5.793 n/a*n/a
EPS (Diluted, $)$(0.04) n/a*n/a

*Values retrieved from S&P Global; consensus unavailable for Q1 2025.

Segment Breakdown (Q1 2025)

Segment/SourceCommentary
EV OEM development (Li‑Metal & Li‑ion)Primary revenue driver in Q1 .
2170 cylindrical cells (Robotics/Drones)Initial sales contributed; strong customer response .
BESS (AISPEX MOU)Revenue expected as projects deploy; not a Q1 contributor .
Molecular Universe (Software/Services)MU‑0 launched; monetization tiers announced; revenue trajectory expected .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY 2025$15M–$25M (issued Feb 25) $15M–$25M (affirmed Apr 24) Maintained
Liquidity (Exit FY 2025)FY 2025Not explicitly quantified; liquidity into 2028 Above $200M expected New quantitative target
Share Repurchase Authorizationn/an/aUp to $30M repurchase program New
Gross Margin OutlookMulti‑yearn/aMix‑dependent, aiming above 60% longer‑term New qualitative outlook

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 2024)Previous Mentions (Q4 2024)Current Period (Q1 2025)Trend
AI/Technology initiativesBuilt largest molecular property DB; AI for Safety 95–100% prediction accuracy “All in on AI” strategy; revenue sources from AI for Science/Safety; MU mapping 10^11 molecules MU‑0 launched; five pricing tiers; >12 early access; platform positioned as largest/profitable revenue component Scaling commercialization
EV program statusB‑samples passed GB38031‑2020 safety (major milestone) Contracts up to $10M with two OEMs On track to complete B‑sample; discussing next steps with two OEMs Advancing to commercialization
2170 product performanceUAM 30 mPOWER cell introduced; displacing 2170 Li‑ion Unveiled AI‑enhanced 2170; entry into humanoid robots/Li‑ion EV Electrolyte enables high‑silicon 2170 (>6.5–7Ah) with stable performance and no gas Improving specs/adoption
Supply chain/geopolitics/tariffsn/an/aSK Chungju facility strategic amid tariff tension; conversion to pouch, potential cylindrical/prismatic Risk mitigation via footprint
BESSAI for Safety + Manufacturing (Avatar); AISPEX MOU up to 100 MWh Expect BESS market “10x larger than automotive” Expect contributions in 2025; affirmed revenue outlook Building pipeline
Margin profilen/aQ4 GM 63% Q1 GM 79%; longer‑term mix implies >60% margins Structural improvement via software/services

Management Commentary

  • “We had a great quarter booking record revenue of $5.8 million… our Board approved a $30 million share repurchase program.” — Qichao Hu, CEO .
  • “Revenue for the first quarter was $5.8 million… we delivered a strong gross margin of 79%… concluded the quarter with a strong liquidity position of $240 million with no debt.” — Jing Nealis, CFO .
  • “Molecular Universe is… an end‑to‑end service ranging from material discovery to cell manufacturing… benefits can be applied to all battery chemistries and all battery markets.” — Qichao Hu .
  • “Going forward… software and services have very good margin above 80%… products 20–30%… mix above 60% margin.” — Jing Nealis .

Q&A Highlights

  • SK (Chungju) facility strategy: two pouch lines converted from EV A‑sample; capability to add cylindrical/prismatic; strategic amid tariff/geopolitical risks .
  • 2170 high‑silicon performance: SES electrolyte enables stable >6.5–7Ah 2170 with no gas vs typical 5.5Ah, addressing cycle life and FEC‑related gassing issues .
  • MU‑0 pricing/rollout: five tiers (software vs software+services), mix of subscription, on‑prem, molecule synthesis/formulation/testing, IP “hidden galaxies” royalty model; share buyback rationale tied to strong liquidity/runway .
  • Revenue cadence: avoiding quarterly guidance; on track for $15M–$25M for FY2025; foundational year for significant 2026 growth .
  • Success metrics: MU revenue is the ultimate metric; intent to accelerate R&D cycles (months vs years, smaller teams) .
  • Margin trajectory: mix shift to software/services supports >60% margins longer‑term .

Estimates Context

  • S&P Global consensus for Q1 2025 EPS and Revenue was unavailable at the time of review; therefore, beat/miss vs Street cannot be determined. Values retrieved from S&P Global.

Where estimates may need to adjust:

  • Street models likely to incorporate higher gross margin profile (79% actual) and MU‑0 monetization ramp; cadence remains uncertain given contract timing and mix .

Key Takeaways for Investors

  • High‑quality revenue ramp with strong unit economics: Q1 revenue $5.793M, GM 79%; sequential growth vs Q4 ($2.040M, 63%) indicates improving margin mix .
  • Structural margin expansion potential from MU‑0 software/services and EV OEM development work; management targets >60% blended margins longer‑term .
  • Liquidity robust (~$240M, no debt) with a newly authorized $30M buyback; exit FY2025 liquidity >$200M provides runway for commercialization .
  • Commercial traction with two EV OEMs approaching B‑sample completion; 2170 product differentiation addresses high‑silicon stability, positioning for robotics/drones and Li‑ion EV niches .
  • BESS opportunity (AISPEX MOU) and Avatar AI safety/manufacturing solution expand TAM beyond automotive; potential 2025 contributions .
  • Near‑term trading: catalysts include MU‑0 adoption updates, OEM milestone progress (B‑sample to C‑sample), and buyback activity; lack of consensus data may create volatility around narrative rather than numeric beats/misses .
  • Medium‑term thesis: capex‑light model with software/services monetization, diversified end‑markets (EV, robotics/drones, BESS), and improving cost discipline support path to scaled revenue with resilient margin profile .