NYSE$SES

Ses Ai Corp · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

SES AI reported an operating loss in Q3 2022 and continued to focus on developing Li-Metal battery technology.

SES AI Corporation reported an operating loss of $21.7 million for the third quarter of 2022, driven by increased general and administrative, and research and development expenses. The company focused on the development of Li-Metal battery technology and AI-powered safety software. They also made progress on mid-2023 milestones, including delivering "A-sample" batteries and transitioning to "B-sample" batteries.

  • SES Korea pilot facility was completed and ready-to-use in September, producing about 100 large Apollo-based cells.
  • Shanghai Giga facility was fully operational in Q3 and has produced about 1,000 Apollo-based cells since January.
  • The company shared 50 Ah cell data with OEM JDA partners and began shipping cells to some partners.
  • The ability to predict failures in large 50 and 100 Ah cells has increased from 0 to approximately 60% in the past few months.

Headline financials

Total Revenue

$0.00

No prior period
EPS (adj)

-$0.08

Previous: -$0.18+55.6%
Capital Expenditures

$604K

Previous: $926K-34.8%
Free Cash Flow

-$10.3M

Previous: -$1.62M-534.2%
Net Income

-$24.3M

Previous: -$10.6M-129.0%
Operating Income

-$21.7M

Previous: -$10.8M-100.4%
Cash & Equivalents

$395M

Previous: $255K+154738.8%
Total Assets

$442M

Previous: $277M+59.6%
Stock-Based Comp

$7.21M

Previous: $2.94M+145.0%

Revenue & EPS history

Ses Ai · Revenue · Quarterly

$0

Q3 2022
Beat estimate in 2 of 3 quarters(67%)
ActualEstimate

Forward guidance

SES AI is focused on achieving mid-2023 milestones and leveraging the Inflation Reduction Act. They are working to deliver and optimize "A-sample" batteries, transition to "B-sample" batteries, and establish supply chains for key materials. The company expects to use cash to support the development of Li-Metal battery technology and AI-powered safety software.

Tailwinds

  • Attractive tax credits and incentives for battery manufacturing and supply chain build-out in North America from the Inflation Reduction Act.
  • Good progress on mid-2023 milestones, including delivering "A-sample" batteries and transitioning to "B-sample" batteries.
  • Continued development of all aspects of Li-Metal battery technology and AI-powered safety software platform Avatar.
  • Expect to end the year with over $350 million of cash.
  • Topics at Battery World will include data and performance of our large format cells, AI-based battery health monitoring developments, and further thoughts on our supply chain initiatives.

Headwinds

  • The development and building large 50 and 100 Ah cells has been incredibly difficult and, candidly, much harder than we expected.
  • Encountered complex problems, including poor pressed density of wide format lithium-metal foils.
  • Powder arising from using lasers to cut our anodes that can lead to cells shorting.
  • Optimizing pressure distribution over a larger area.
  • Developing accurate health monitoring algorithms for large cells without any data initially

Historical earnings impact

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

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2022

Historical avgQ3 2022

+1.5%

Avg return

Earnings day

-0.7%

Avg return

5 days after

-7.7%

Avg return

30 days after

57%

12 / 21 earnings

Positive

+28.4%

Q1 2022

Best reaction

-36.3%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-4.9%-16.4%-0.8%
Q4 2025-36.3%-25.7%-41.8%
Q3 2025-1.8%+4.0%-2.7%
Q2 2025-23.7%-17.5%-23.4%
Q1 2025+18.5%+3.5%+9.6%
Q4 2024-5.1%-31.6%-35.2%
Q3 2024-12.7%-15.7%-32.3%
Q1 2024-5.4%-6.1%-15.5%
Q4 2023+23.2%+21.7%+20.3%
Q3 2023+5.3%+2.6%+12.2%
Q2 2023+2.7%-4.3%-22.4%
Q1 2023+10.7%+2.7%+42.3%
Q4 2022+1.5%+0.4%-11.2%
Q3 2022+7.4%+5.0%-24.5%
Q2 2022+11.6%+11.2%+3.4%
Q1 2022+28.4%+50.0%-7.1%
Q4 2021+6.6%+1.9%-26.5%
Q3 2021+5.7%+0.4%-5.4%
Q2 2021+0.2%+0.4%+1.1%
Q1 2021-0.7%-0.3%-1.2%
Q4 2020-0.7%-0.3%-1.2%
Q3 2019
Q2 2019
Q4 2018
Q3 2018
Q2 2018
Q1 2018
Q4 2017
Q3 2017
Q2 2017
Q1 2017
Q4 2016
Q3 2016
Q2 2016
Q1 2016
Q4 2015
Q3 2015

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