NYSE$EVEX

Eve Holding Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Eve reported a net loss, driven by increased R&D and SG&A expenses, which were partially offset by financial investment income and FX gains.

Eve Air Mobility reported a net loss of $31.2 million in Q3 2023, compared to a net loss of $36.7 million in Q3 2022. The increased losses were primarily due to higher Research & Development (R&D) and Selling, General & Administrative (SG&A) expenses, partially offset by financial investment income and FX gains. Total liquidity, including undrawn BNDES credit lines, stood at $342.5 million.

  • Net loss was $31.2 million in Q3 2023, compared to $36.7 million in Q3 2022.
  • R&D expenses doubled to $28.6 million, driven by the Master Service Agreement (MSA) with Embraer.
  • Total cash consumption was $22.4 million in Q3 2023, compared to $17.3 million in Q3 2022.
  • Cash, cash equivalents, financial investments, and related-party loan with Embraer totaled $256.4 million at the end of Q3 2023.

Headline financials

EPS (adj)

-$0.11

Previous: -$0.14+21.4%
Total Liquidity

$343M

No prior period
Capital Expenditures

-$2.68K

Previous: $419K-100.6%
Free Cash Flow

-$22.4M

Previous: -$17M-31.8%
Net Income

-$31.2M

Previous: -$36.7M+15.1%
Operating Income

-$33.7M

Previous: -$38.6M+12.7%
Gross Profit

-$58.3K

No prior period
Cash & Equivalents

$10.1M

Previous: $77.9M-87.0%
Total Assets

$262M

Previous: $334M-21.6%
R&D Expense

$28.6M

No prior period
Stock-Based Comp

$1.52M

Previous: $1.56M-3.0%

Revenue & EPS history

Eve · Revenue · Quarterly

$44.7M

Q1 2025
Beat estimate in 1 of 2 quarters(50%)
ActualEstimate

Forward guidance

Eve anticipates total cash consumption between $130 and $150 million for 2023, primarily in the eVTOL development program and SG&A expenses. They expect to continue drawing from BNDES credit lines through the end of 2024 and are confident that their current liquidity is sufficient to fund operations well into 2025.

Tailwinds

  • Expects to continue drawing from BNDES credit lines through the end of 2024.
  • Confident that current liquidity is sufficient to fund operations well into 2025.
  • Eve anticipates 2023 total cash consumption to be closer to the low end of the expected range of $130 to $150 million.
  • Initiated the Joint-Definition Phase (JDP) of development program.
  • Eve received initial funds from Brazil’s National Development Bank to support eVTOL development

Headwinds

  • Expects sequentially higher investments and expenses in the quarters ahead due to intensifying engineering engagement as well as potential supplier payments.
  • Additional program activities will require an increase in the number of engineering hours and the acquisition of raw materials and parts/components to continue building full-scale prototype.
  • Potential supplier payments will now occur in 2024 given Eve’s continuous effort to preserve cash, shifting cash outflow and payments to the right from 4Q23 to 1Q24 onwards.
  • Will continue to select suppliers and receive equipment during the remainder of 2023 and first half of 2024 that will trigger additional cash consumption in the coming months.
  • Cash-consumption estimates are calculated using an expected exchange rate of R$5.20/US$1 for the full year of 2023

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 13 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

-1.2%

Avg return

Earnings day

+2.7%

Avg return

5 days after

+9.6%

Avg return

30 days after

26%

5 / 19 earnings

Positive

+5.1%

Q4 2022

Best reaction

-6.0%

Q3 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026-2.0%+13.7%+10.6%
Q3 2025-3.9%+0.0%+22.0%
Q1 2025-2.6%+19.8%+42.5%
Q4 2024-1.6%+13.7%+15.2%
Q3 2024-6.0%+4.6%+43.5%
Q1 2024-2.9%-5.1%-11.3%
Q4 2023+0.8%+1.0%+4.4%
Q3 2023-0.9%-6.0%-8.5%
Q2 2023-4.6%-7.6%-3.6%
Q1 2023+2.8%+3.2%+2.8%
Q4 2022+5.1%+7.1%+26.3%
Q3 2022-3.6%-3.0%-1.1%
Q2 2022-0.8%-6.3%-17.6%
Q1 2022-2.2%
Q2 2021-0.1%
Q4 2021-0.1%
Q3 2021+0.0%
Q1 2021-0.2%
Q4 2020+0.1%

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