Advanced air mobility company Eve has published its latest quarterly results.
“Eve reported a net loss of USD25.8 million in 1Q23 versus USD10.0 million in 1Q22. The higher net losses were driven by higher Research & Development (R&D) expenses, which are costs and activities necessary to progress the eVTOL design, including the Master Service Agreement (MSA) with Embraer, and an increase in Selling, General & Administrative (SG&A) expenses,” said the company. “Higher R&D and SG&A expenses during the quarter were partly offset by financial investment income and FX gains of USD4.3 million in the 1Q23 versus a gain of USD0.4 million in the 1Q22 as Eve benefits from higher interest rates on its cash investments.
“R&D expenses were USD21.5 million in 1Q23, compared with USD9.1 million in 1Q22. Our R&D efforts are primarily driven by the MSA with Embraer that performs several development activities for Eve. These efforts continue to intensify as the design of Eve’s eVTOL advances, including internal design, engineering, and program development and testing infrastructure.
“SG&A expenses increased from USD1.3 million in the 1Q22 to USD6.2 million in the 1Q23, mainly due to the growth in the number of direct employees at Eve, who perform critical corporate and administrative functions including, strategy, sales, legal, supply chain and finance activities.
“Including employees contracted through the MSA with Embraer and its subsidiaries, Eve now has approximately 600 headcounts engaged in the development of its eVTOL and other elements of the UAM ecosystem, versus approximately 400 in 1Q22.
“During the first quarter of 2023, Eve’s total cash consumption was USD19.9 million, versus USD1.9 million in 1Q22. R&D associated with Eve’s aircraft development and SG&A expenses mentioned above were the main contributors for the higher cash consumption during the quarter. This was partly offset by an increase in accounts payable, mostly related to the MSA agreement with Embraer and higher accrued expenses – these grew by USD5.7 million in the quarter, totaling USD28.1 million at the end of 1Q23.
“At the end of 1Q23, Eve’s liquidity position was USD294.6 million – including cash, cash equivalents, financial investments, and related-party loan receivables, versus USD310.6 million at the end of 4Q22. As of 1Q23, Eve did not have any debt on its balance sheet. The proceeds from the business combination with Zanite Acquisition Corp., and strategic PIPE investors raised in 2022, combined with potential advances from customers and current and future finance lines are the main sources of capital to fund Eve’s development and certification of its eVTOL.
“Eve’s 1Q23 total liquidity – including still-undrawn BNDES credit lines of USD96.8 million (to be disbursed throughout 2023 and 2024), was approximately USD390 million.
“Eve’s program development milestones and financial estimates for 2023 remain unchanged. We expect to conclude the selection of main equipment suppliers in the first half of 2023 and start the assembly of our first full-scale eVTOL prototype during the second half of 2023, followed by the test campaign in 2024. Eve’s total cash consumption expected for 2023 remains in a range of USD130 million to USD150 million, and includes all expenses such as R&D, SG&A and capital expenditures. For additional information, please access the full 1Q23 Earnings release, available in the Investor Relations website at ir.eveairmobility.com.”
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