Q2 2024 Quantumscape Corp Earnings Call Transcript
Key Points
- QuantumScape Corp (QS) announced a landmark agreement with PowerCo, the battery company of the Volkswagen Group, which is expected to extend their cash runway into 2028.
- The deal includes a $130 million prepayment of royalties for a non-exclusive license covering an initial production volume of 40-gigawatt hours per year, with an option to expand to 80-gigawatt hours.
- QuantumScape Corp (QS) has shipped Alpha-2 prototype cells to multiple customers in the automotive and consumer electronics sectors, indicating robust customer engagement.
- The company demonstrated thermal stability of their prototype battery cells up to 300 degrees centigrade, significantly higher than conventional lithium-ion cells, which enhances safety.
- QuantumScape Corp (QS) ended the quarter with $938 million in liquidity, providing a strong financial position to support ongoing operations and development.
- GAAP operating expenses and GAAP net loss were $134.5 million and $123 million, respectively, indicating significant financial losses.
- Adjusted EBITDA loss was $72.5 million in Q2, and the company maintains a full-year 2024 guidance for adjusted EBITDA loss of between $250 million and $300 million.
- The $130 million prepayment of royalties from the PowerCo deal is contingent on satisfactory technical progress, which introduces uncertainty.
- The company’s commercialization pathway and long-term capital requirements remain dependent on the success of the PowerCo deal and other potential partnerships.
- QuantumScape Corp (QS) faces significant work and challenges to achieve their ambitions, including the industrialization of their technology to gigawatt-hour scale.
Good morning. My name is Mark, and I will be your conference operator today. At this time, I would like to welcome everyone to the QuantumScape Corp's second quarter 2024 earnings call. (Operator Instructions)
I will now turn the call over to John Saager, QuantumScape's Vice President of Capital Markets and FP&A. John, you may begin your conference.
Thank you, operator. Good afternoon, and thank you to everyone for joining QuantumScape's second quarter 2024 earnings call. To supplement today's discussion, please go to our IR website at ir.quantumscape.com to view our shareholder letter.
Before we begin, I want to call your attention to the Safe Harbor provision for forward-looking statement that is posted on our website as part of our quarterly update. Forward-looking statements generally relate to future events, future technology progress or future financial or operating performance. Our expectations and beliefs regarding these matters may not
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