Eve Air Mobility has announced its second quarter 2024 financial results. Eve reported a net loss of USD36.4 million in 2Q24 versus USD31.4 million in 2Q23. Net loss increased due to higher Research & Development (R&D) despite a decrease in Selling, General & Administrative (SG&A) and a positive impact in the fair value of our outstanding derivatives. “R&D expenses were USD36.3 million in 2Q24, versus USD21.8 million in 2Q23 and were primarily driven by the Master Services Agreement (MSA) with Embraer who performs several developmental activities for Eve,” said the company. “These efforts continue to intensify as the development of the eVTOL progresses, including the purchase of parts, assembly of our first full-scale prototype, and continued engineering, program development and testing infrastructure expenses.
“SG&A, decreased to USD5.4 million in 2Q24, from USD6.6 million in 2Q23, primarily driven by a combination of lower outsourced services and payroll costs – the latter reflect the forfeiture of Restricted Stock Units (RSUs) positively impacting SG&A during the quarter. Eve also reduced Director & Officers insurance expenses after renegotiating and lengthening terms with our provider. Lastly, Eve benefitted from the c.10% depreciation of the Brazilian Real BRL vs. the USD during the quarter, as most of SG&A expenses are incurred in Brazilian currency. The reduction in SG&A is despite an increase in Eve’s headcount, as well as industrialization and other costs associated with Eve’s Brazilian eVTOL manufacturing site, located in the city of Taubaté.
“The increase in R&D expenses was partly offset by a USD2.1 million gain in 2Q24 related to the fair value of derivatives (due to marking to market of Eve’s private warrants), vs. a USD6.8 million loss in 2Q23. Eve’s total cash used by operations and capital expenditures in 2Q24 was USD31.4 million, versus USD27.8 million in 2Q23. R&D expenses associated with Eve’s aircraft development were the main contributors to the higher cash consumption during the quarter.
“Lastly and subsequent to 2Q24, Eve entered into subscription agreements with financial and strategic investors, including Embraer, Space Florida and Nidec – our electric-motor supplier for USD95.6 million in new equity financing. The additional funding will strengthen our Balance Sheet and will help support our operations and program investments in the upcoming years. Eve’s cash, cash equivalents, financial investments and related party loan receivable was USD206.5 million and total liquidity would have been USD338.0 million as of June 30th, 2024.
For more information
https://www.eveairmobility.com/eve-holding-inc-reports-second-quarter-2024-results/