Eve Air Mobility reported a net loss of USD35.8 million in 3Q24 versus USD31.2 million in 3Q23. “Net loss increased due to higher Research & Development (R&D) – these are costs and activities necessary to advance in the development of our suite of products and solutions for the Urban Air Mobility (UAM) market, as well as Selling, General & Administrative (SG&A) expenses,” said the company in a press statement.
“R&D expenses were USD32.4 million in 3Q24, versus USD28.6 million in 3Q23 and were primarily driven by the Master Services Agreement (MSA) with Embraer who performs several development activities for Eve. These efforts continue to intensify with increasing maturity of the development of our eVTOL. Moreover, engagement of our engineering team continues high – after the roll-out of our engineering prototype in July, who are now performing a series of system and integration ground tests on the aircraft before its debut flight.
“In the meantime, SG&A increased to USD8.4 million in 3Q24, from USD5.0 million in 3Q23, primarily due to a combination of higher outsourced services, payroll costs and pre-operating industrialization costs associated with our first eVTOL plant, in the city of Taubaté in Brazil. These increases were partly offset by savings on Director & Officers insurance expenses after renegotiating and lengthening terms with our provider and a c.8% depreciation of the Brazilian Real (BRL) vs. the USD over the last year. Most of SG&A expenses are incurred in Brazilian currency. The growth in payroll expenses reflects mostly an increase in Eve’s headcount.
“The increase in R&D and SG&A was partly offset by a USD4.0 million gain in 3Q24 related to the fair value of derivatives (as private warrants were marked to market), vs. a USD0.9 million loss in 3Q23. Eve’s total cash used by operations and capital expenditures in 3Q24 was USD34.0 million, vs. USD22.4 million in 3Q23. R&D expenses associated with Eve’s development were the main contributors to the higher cash consumption during the quarter.
“Eve’s Cash, Cash Equivalents and Financial Investments totaled USD279.8 million at the end of 3Q24, and liquidity reached USD305 million, including USD25 million from the BNDES R&D standby facility available. Subsequent to 3Q24, Eve secured a new ~USD90 million credit line with the BNDES – Brazil’s National Development Bank, to support the necessary investments in our Taubaté site, and a new USD50 million loan with Citibank to support the funding of R&D. The additional funding will strengthen our Balance Sheet and support our operations and program investments in the upcoming years.
For more information
https://ir.eveairmobility.com/news-events/press-releases/detail/80/eve-holding-inc-reports-third-quarter-2024-results