Executive Summary

Revenue fell 56% to $2.393M in Q3 2022, driven by semiconductor supply shortages and termination of the NPI phase of a major customer program; gross profit was $284K .
Net loss widened to $76.5M due to $30.8M of other financing costs and a $38.9M loss on debt extinguishment tied to financing activities; net loss per share was $(7.59) .
Adjusted EBITDA loss improved to $(3.816)M from $(7.464)M YoY on cost cuts and workforce reductions; management highlighted ongoing portal/software upgrades slated for Q1 2023 .
Guidance: Q4 2022 revenue $2.3–$2.9M and Adjusted EBITDA loss $(2.8)M–$(3.8)M; FY 2022 revenue $11.4–$12.0M and Adjusted EBITDA loss $(20.6)M–$(21.6)M; FY 2023 revenue $14–$17M and Adjusted EBITDA loss $(6.5)M–$(8.5)M .
Liquidity remains tight: negative working capital of $91.4M, $0.9M cash (including restricted), covenant breaches on the LSA, and substantial doubt about going concern absent new financing—key stock reaction drivers will be capital structure resolution and operational normalization .

What Went Well and What Went Wrong

What Went Well

Adjusted EBITDA loss improved YoY to $(3.816)M on successful cost-cutting; nine-month commentary underscores broader cost actions despite revenue pressures .
Strategic milestone: completed SPAC business combination and Nasdaq listing, enabling focus on growth initiatives and potential inorganic opportunities .
Product roadmap: “upcoming customer-facing portal software upgrades” in Q1 2023 to improve inventory management and engagement; “we are excited to bring technology to help industry participants better cope with supply chain disruptions and shortages,” said CEO Joy Weiss .

What Went Wrong

Revenue down 56% YoY to $2.393M on semiconductor shortages and the end of an NPI phase for a significant program; gross profit compressed to $284K .
Heavy financing-related losses: $30.8M other financing costs, $38.9M debt extinguishment; interest expense rose to $2.356M in the quarter .
Liquidity stress and covenant breaches: negative working capital of $91.4M, $0.9M cash (including restricted), and LSA covenant defaults leading to callable debt; management disclosed substantial doubt about going concern without new financing .

Financial Results

Quarterly Comparison (Q3 2021 → Q3 2022)

Metric ($USD Thousands unless noted)	Q3 2021	Q3 2022
Revenue	5,437	2,393
Gross Profit	292	284
Net Loss	(10,342)	(76,511)
Net Loss Per Share (basic & diluted, $)	(1.05)	(7.59)
Adjusted EBITDA	(7,464)	(3,816)

Notes:

Prior quarter (Q2 2022) figures were not disclosed in accessible TMPO filings; only three-month and nine-month data are provided.

Year-to-Date Comparison (Nine Months Ended Sep 30)

Metric ($USD Thousands unless noted)	9M 2021	9M 2022
Revenue	13,354	9,146
Gross Profit	2,658	1,005
Net Loss	(24,388)	(96,518)
Gross Margin (%)	20%	11%
Adjusted EBITDA	(16,448)	(17,782)

Segment breakdown: Not applicable; the company reports as a single manufacturing platform .

Selected balance sheet/liquidity disclosures:

Cash, cash equivalents, and restricted cash: $0.9M as of Sep 30, 2022 .
Negative working capital: $(91.4)M as of Sep 30, 2022 .
Variable-rate borrowings outstanding: $83.5M as of Sep 30, 2022 .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue ($M)	Q4 2022	Not disclosed in this filing	2.3 – 2.9	Updated
Adjusted EBITDA ($M)	Q4 2022	Not disclosed in this filing	(2.8) – (3.8)	Updated
Revenue ($M)	FY 2022	Not disclosed in this filing	11.4 – 12.0	Updated
Adjusted EBITDA ($M)	FY 2022	Not disclosed in this filing	(20.6) – (21.6)	Updated
Revenue ($M)	FY 2023	Not disclosed in this filing	14.0 – 17.0	Initiated/Updated
Adjusted EBITDA ($M)	FY 2023	Not disclosed in this filing	(6.5) – (8.5)	Initiated/Updated

Earnings Call Themes & Trends

Note: No Q3 2022 earnings call transcript was found in the document catalog; themes rely on management’s press release commentary and the Form 8-K MD&A.

Topic	Previous Mentions (Q1/Q2 2022)	Current Period (Q3 2022)	Trend
Supply chain constraints (semiconductors)	Identified as driving longer order-to-revenue cycles; higher direct material costs; backlog increased .	Primary cause of revenue decline; portal upgrade aimed at inventory management to mitigate disruptions .	Persistent headwind; operational mitigation in focus.
Product/technology portal	Ongoing development of software platform; data-driven manufacturing .	Customer-facing portal upgrade scheduled Q1 2023; intended to enhance self-service and efficiency .	Execution milestone upcoming.
Financing and capital structure	LSA covenant breaches; callable debt; multiple bridge notes and warrant issuances; pro forma details .	SPAC closing; PIPE issuances; LSA amended and restated; heavy financing costs and debt extinguishment loss .	Transition to public entity; urgent need for stabilized financing.
Liquidity/going concern	Cash burn; negative working capital; substantial doubt without financing .	Continued liquidity strain; guidance assumes operational continuity .	Critical risk persists.
Customer concentration/backlog	Two customers 26% and 23% of 9M revenue; backlog increased .	Shipments expected “in line” with internal expectations in Q4; revenue impacted by partially completed orders at year-end .	Monitoring demand softness and program changes.
Inorganic growth	Target-rich M&A narrative; platform intended to yield top/bottom-line benefits .	Post-listing, expects ability to pursue acquisitions; integration of software releases to drive cost structure improvement .	Contingent on capital availability.

Management Commentary

“We are thrilled to announce the successful completion of our business combination and public listing… As a company that specializes in helping other businesses design new products, we are excited to bring technology to help industry participants better cope with supply chain disruptions and shortages.” — Joy Weiss, CEO .
“We are excited to reveal our upcoming customer-facing portal software upgrades… scheduled to launch in Q1 2023… we plan to slightly increase our marketing expenditures in 2023 to promote the new platform.” — Joy Weiss .
Financial outlook emphasizes positive impact from public listing, focus on organic and potential strategic acquisitions, and increased investments in marketing, sales, and software platform .

Q&A Highlights

No Q3 2022 earnings call transcript was available in the document catalog; consequently, no Q&A themes or guidance clarifications can be provided from a call [ListDocuments: earnings-call-transcript returned 0].

Estimates Context

Wall Street consensus estimates via S&P Global for Q3 2022 were unavailable due to missing Capital IQ mapping for TMPO at the time of request (tool error indicates no CIQ mapping for TMPO). As a result, comparisons to consensus cannot be made for this quarter [GetEstimates error].
Values retrieved from S&P Global were unavailable for this company/period; consensus coverage appears limited.

Key Takeaways for Investors

Revenue headwinds are principally supply-chain driven and program-specific; near-term visibility hinges on component availability and customer program trajectories .
Financing-related losses dominated the P&L; stabilizing the capital structure (resolving covenant breaches, securing liquidity) is the primary risk mitigation required to address going concern uncertainty .
Adjusted EBITDA improved YoY in Q3 on cost actions; further improvement in FY 2023 guidance implies benefits from software releases and lower cost structure if execution and demand hold .
The Q1 2023 portal launch is a tangible catalyst; successful rollout and customer adoption could enhance throughput, inventory management, and margin profile .
Customer concentration and demand softness in key programs warrant monitoring; diversification and backlog conversion are critical to revenue stabilization .
Trading implications: near term likely driven by financing updates and operational milestones (portal launch, supply chain normalization); medium term depends on scaling revenue to guidance ranges and delivering cost structure improvements .

Source Notes

Primary source documents read in full: Q3 2022 8‑K Item 2.02 with Exhibit 99.1 press release and associated Form 8‑K providing unaudited condensed statements and MD&A ; broader transaction and liquidity disclosures from the December 6, 2022 Form 8‑K –.
No earnings call transcript or additional Q3 press releases were found in the catalog; prior-quarter discrete earnings data were not available beyond six‑ and nine‑month disclosures [ListDocuments results above].

Tempo Automation Holdings, Inc. (TMPO)·Q3 2022 Earnings Summary