Nikola Corporation Reports Third Quarter 2024 Results
Record 88 wholesale deliveries of hydrogen fuel cell electric trucks in Q3, up 22% quarter over quarter
FCEV Fleet adoption up 78% year-to-date, with 16 end fleets deploying Nikola FCEVs, 32 distinct end fleets across both powertrains
Expanded dealer network for the first time since launch of the FCEV
Reiterating our year-end volume guidance of 300-350 FCEVs
PHOENIX, Oct. 31, 2024 /PRNewswire/ -- Nikola Corporation (NASDAQ:NKLA), a global leader in zero-emissions transportation and energy supply and infrastructure solutions, via the HYLA brand, today reported financial results and business updates for the quarter ended September 30, 2024.
"Year-to-date, we had record sales of hydrogen fuel cell electric trucks, a 78% increase in FCEV fleet adoption, and a nearly 350% increase in hydrogen fuel dispensed at our commercial stations," said Steve Girsky, President and CEO of Nikola. "We also returned 78 BEV "2.0s" back to end fleets and dealers. With every truck delivered and fueled at our HYLA stations, we continue to deliver proof points to the market that zero-emission trucks are driving the future of Class 8 mobility."
Hydrogen Fuel Cell Electric TruckWe delivered record sales of 88 FCEVs to our dealer network, up 22% from last quarter. On the retail front, we continued to see strong organic growth from existing end fleets. National fleet partners such as Kenan Advantage Group and DHL Supply Chain recently announced deployment of Nikola FCEVs and noted the important role we play in not only helping them meet their sustainability goals, but those of their end customers, which includes Nestlé and Diageo.
We expanded our dealer network for the first time since the launch of our FCEV with the addition of GTS Group, in Southern California. GTS, a successful traditional truck dealership, recently introduced a new division, created for the sales and service of Nikola trucks called "Next Generation Truck" or NGT. This additional dealer brings the number of Nikola sales and service locations up to nineteen across the U.S.
We reiterate FCEV volume guidance of 300-350 trucks by year-end.
HYLA EnergyWe expect to deliver 10 HYLA fueling solutions by year-end. We are focusing our strategy on providing more support at existing stations to better serve our customers as we scale. Operationally, over the lifetime of the entire HYLA network, we have recorded more than 5900 fueling events, dispensing more than 210 metric tons of hydrogen, for an average of 36kg per fill. The year-to-date ramp-up in mobile hydrogen refueling stations has been very strong. Since we began measuring commercial fueling operations in Q1, total hydrogen dispensing has grown nearly 350% year-to-date.
Battery-Electric TruckWe are excited that the BEV "2.0" is back on the road, hauling freight, and validating its use case. Since putting the BEV 2.0 back into service, 19 end fleets have accumulated more than 715K in-service road miles. The BEV 2.0 has been the truck of choice for our end fleets not only for its performance but also to meet the sustainability goals of end fleet partners. Program-to-date, we've returned 78 BEVs back to the market to overwhelmingly positive feedback.
Third Quarter Operational and Financial Highlights
Three Months EndedSeptember 30,
Nine Months EndedSeptember 30,
(In thousands, except share and per share data)
2024
2023
2024
2023
Trucks produced
83
N/A
203
96
Trucks shipped
90
3
203
79
Total revenues
$ 25,181
$ (1,732)
$ 63,997
$ 24,307
Gross profit (loss)
$ (61,943)
$ (125,503)
$ (174,244)
$ (175,831)
Gross margin
(246) %
7246 %
(272) %
(723) %
Loss from operations
$ (178,791)
$ (226,167)
$ (455,278)
$ (521,993)
Net loss from continuing operations
$ (199,781)
$ (425,764)
$ (481,177)
$ (711,025)
Net loss on discontinued operations
$ ,
$ ,
$ ,
$ (101,661)
Net loss
$ (199,781)
$ (425,764)
$ (481,177)
$ (812,686)
Adjusted EBITDA (1)
$ (123,610)
$ (188,563)
$ (337,037)
$ (417,318)
Net loss from continuing operations per share, basic and diluted
$ (3.89)
$ (14.90)
$ (10.12)
$ (30.20)
Net loss from discontinued operations
$ ,
$ ,
$ ,
$ (4.32)
Non-GAAP net loss per share, basic and diluted(1)
$ (2.75)
$ (9.04)
$ (8.05)
$ (21.97)
Weighted-average shares outstanding, basic and diluted
51,388,962
28,573,800
47,553,460
23,544,174
(1) A reconciliation of the non-GAAP versus GAAP information is provided below in the financial statement tables in this press release.
Webcast and Conference Call InformationNikola will host a webcast to discuss its third quarter results and business progress at 7:30 a.m. Pacific Time (10:30 a.m. Eastern Time) on October 31, 2024. To access the webcast, parties in the United States should follow this link.
The live audio webcast, along with supplemental information, will be accessible on the Company's Investor Relations website here. A recording of the webcast will also be available following the earnings call.
About Nikola CorporationNikola Corporation's mission is clear: pioneering solutions for a zero-emissions world. As an integrated truck and energy company, Nikola is transforming commercial transportation, with our Class 8 vehicles, including battery-electric and hydrogen fuel cell electric trucks, and our energy brand, HYLA, driving the advancement of the complete hydrogen refueling ecosystem, covering supply, distribution and dispensing.
Nikola headquarters is based in Phoenix, Ariz. with a manufacturing facility in Coolidge, Ariz.
Experience our journey to achieve your sustainability goals at nikolamotor.com or engage with us on social media via Facebook @nikolamotorcompany, Instagram @nikolamotorcompany, YouTube @nikolamotorcompany, LinkedIn @nikolamotorcompany or X / Twitter @nikolamotor
Forward-Looking StatementsThis press release contains certain forward-looking statements within the meaning of federal securities laws with respect to Nikola Corporation (the "Company"), including statements relating to: the Company's belief that the third quarter is an example of how it is executing its strategic and operational objectives by strengthening its resolve to push forward, meet the demands of end fleets, and lay a path for a sustainable future; the Company's belief that zero-emission trucks are driving the future of Class 8 mobility; the Company's beliefs regarding its role in helping to meet sustainability goals; the Company's future financial and business performance, truck sale guidance, business plan, strategy, focus, opportunities and milestones; the benefits and momentum in the Company's profitability flywheel; customer demand for trucks; the Company's beliefs regarding its competition and competitive position; the Company's business outlook; the Company's expectations regarding hydrogen refueling solutions and timelines; expectations related to the battery-electric truck recall; and the Company's beliefs regarding the benefits and attributes of its trucks, and customer experience. These forward-looking statements other than statements of historical fact, and generally are identified by words such as "believe," "project," "expect," "anticipate," "estimate," "intend," "strategy," "future," "opportunity," "plan," "may," "should," "will," "would," and similar expressions. Forward-looking statements are predictions, projections, and other statements about future events based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: the Company's ability to continue as a going concern; the Company's cash needs and obligations, and changes in its cash needs and obligations; the Company's its ability to raise sufficient capital to continue to operate its business; the Company's ability to achieve cost reductions and decrease its cash usage; the ability of the Company to successfully execute its business plan; design and manufacturing changes and delays, including shortages of parts and materials and other supply challenges; the continued availability of hydrogen refueling solutions; general economic, financial, legal, regulatory, political and business conditions and changes in domestic and foreign markets; demand for and customer acceptance of the Company's trucks and hydrogen refueling solutions; the results of customer pilot testing; the execution and terms of definitive agreements with strategic partners and customers; the failure to convert LOIs or MOUs into binding orders; the cancellation of orders; risks associated with development and testing of fuel cell power modules and hydrogen storage systems; risks related to the recall, including higher than expected costs, the discovery of additional problems, delays retrofitting the trucks and delivering such trucks to customers, supply chain and other issues that may create additional delays, order cancellations as a result of the recall, litigation, complaints and/or product liability claims, and reputational harm; risks related to the rollout of the Company's business and milestones and the timing of expected business milestones; the effects of competition on the Company's business; the Company's capital needs ability to raise capital; the Company's ability to achieve cost reductions and decrease its cash usage; the grant, receipt and continued availability of federal and state incentives; and the factors, risks and uncertainties regarding the Company's business described in the "Risk Factors" section of the Company's Quarterly Report on Form 10-Q, for the quarter ended June 30, 2024 filed with the SEC, in addition to the Company's subsequent filings with the SEC. These filings identify and address other important risks and uncertainties that could cause the Company's actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and, except as required by law, the Company assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.
Use of Non-GAAP Financial MeasuresThis press release references Adjusted EBITDA and non-GAAP net loss per share, basic and diluted, all of which are non-GAAP financial measures and are presented as supplemental measures of the Company's performance. The Company defines Adjusted EBITDA as earnings before interest expense, taxes, depreciation and amortization, stock-based compensation expense, and certain other items determined by the Company. Non-GAAP net loss is defined as net loss adjusted for stock-based compensation expense and certain other items determined by the Company. Non-GAAP net loss per share, basic and diluted is defined as non-GAAP net loss divided by weighted average basic and diluted shares outstanding. These non-GAAP measures are not substitutes for or superior to measures of financial performance prepared in accordance with generally accepted accounting principles in the United States (GAAP) and should not be considered as an alternative to any other performance measures derived in accordance with GAAP.
The Company believes that presenting these non-GAAP measures provides useful supplemental information to investors about the Company in understanding and evaluating its operating results, enhancing the overall understanding of its past performance and future prospects, and allowing for greater transparency with respect to key financial metrics used by its management in financial and operational-decision making. However, there are a number of limitations related to the use of non-GAAP measures and their nearest GAAP equivalents. For example, other companies may calculate non-GAAP measures differently or may use other measures to calculate their financial performance, and therefore any non-GAAP measures the Company uses may not be directly comparable to similarly titled measures of other companies.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
(Unaudited)
Three Months EndedSeptember 30,
Nine Months EndedSeptember 30,
2024
2023
2024
2023
Revenues:
Truck sales
$ 24,847
$ (2,368)
$ 61,008
$ 19,693
Service and other
334
636
2,989
4,614
Total revenues
25,181
(1,732)
63,997
24,307
Cost of revenues:
Truck sales
82,205
122,679
222,946
195,902
Service and other
4,919
1,092
15,295
4,236
Total cost of revenues
87,124
123,771
238,241
200,138
Gross loss
(61,943)
(125,503)
(174,244)
(175,831)
Operating expenses:
Research and development (1)
41,800
41,966
121,458
168,286
Selling, general, and administrative (1)
41,629
57,982
