Xos, Inc (XOS)

[WeTheMarket]

Market Leader Xos Positioned for Strong 2024 by Gross Margin Improvement and Pending Acquisition
Thu, 21 Mar 2024
Link to Press Release https://api.kscope.io/ks-doc-view?key=89b2f999-30a9-11ee-acee-0ed29589fc89&content=benznews&docid=3abdde7a47be3a2f117d67f23312a44dfeb49cca
Link to webcast https://viavid.webcasts.com/starthere.jsp?ei=1655220&tp_key=d4e9555402

Full Year Revenue increased 22% year-over-year

Strong positive gross margins in the third and fourth quarters of 2023

Entered into a definitive agreement to acquire ElectraMeccanica and significantly strengthen Xos' balance sheet

LOS ANGELES, CA / ACCESSWIRE / March 21, 2024 / Xos, Inc. (NASDAQ:XOS) ("Xos" or the "Company"), a leading electric truck manufacturer and fleet services provider, today reported financial results for the fourth quarter and year ended December 31, 2023.


Full Year 2023 Highlights:

- 2023 revenue improved significantly to $44.5 million from $36.4 million in 2022
- Achieved positive gross margins in the third and fourth quarters of 2023, supported by the release of an updated stepvan platform
- Bolstered position as the EV stepvan market leader with deliveries of 283 units to the largest fleets in North America, including FedEx Ground, UPS, Loomis, Canada Post, UniFirst, and Penske
- Reduced quarterly operating expenses by 43% in two years
- Subsequent to year end, entered into a definitive arrangement agreement to acquire ElectraMeccanica in an all-stock transaction that is expected to include over $45 million in cash to support Xos' ongoing operations
- Subsequent to year end, announced the updated Xos Hub™, a rapidly deployable charging unit designed to help expedite the electrification of fleets with 280kWh of energy capacity and charging rates of up to 160kW

Dakota Semler, Chief Executive Officer of Xos, commented, "Last year was a year of positive milestones for Xos. Our customers continued to demonstrate robust demand for Xos EVs, which resulted in record back-to-back quarters in the second half of 2023. Importantly, we achieved our goal to deliver positive gross margins while substantially reducing operating expenses. Finally, we positioned Xos to strengthen its liquidity through the planned acquisition of ElectraMeccanica."


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(1) For further information about how we calculate Non-GAAP gross profit (loss) and Non-GAAP operating loss, see below for the reconciliations of GAAP to non-GAAP financial measures provided in the tables included in this release.

(2) Includes cash, cash equivalents, restricted cash, and marketable debt securities, available-for-sale (for the year-ended December 31, 2022).

2024 Outlook:

Xos' outlook for 2024 is as follows:

- Revenue $66.7 to $100.4 million
- Non-GAAP operating loss $48.7 to $43.7 million
- Unit Deliveries (1) 400 to 600 units
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(1) Unit deliveries forecast includes stepvans and our powertrain and Xos Hub products.

Liana Pogosyan, Acting Chief Financial Officer of Xos, added, "Launching our gross margin positive stepvan, setting delivery records in the third and fourth quarter, and securing meaningful capital via our expected acquisition of ElectraMeccanica have each strengthened Xos' position. These accomplishments provide me with confidence that we will continue to deliver on our targets in 2024 and beyond. As a result, we expect to deliver strong revenue growth of approximately 88% year-over-year at the midpoint of our guidance range."

The outlook provided above is based on management beliefs and expectations as of the date of this press release. The results are based on assumptions that are believed to be reasonable as of this date, but may be materially affected by many factors, as discussed below in "Cautionary Statement Regarding Forward-Looking Statements." Actual results may vary from the outlook above and the variations may be material. The Company undertakes no intent or obligation to publicly update or revise any of these projections, whether as a result of new information, future events or otherwise, except as required by law.

Conference Call and Webcast Details

Date / Time: Thursday, March 21, 2024, at 4:30 p.m. EDT / 1:30 p.m. PDT

Webcast: https://viavid.webcasts.com/starthere.jsp?ei=1655220&tp_key=d4e9555402

U.S. Toll-Free Dial In: 1-833-816-1411

International Dial In: 1-412-317-0507

Conference ID: 10186286

To access the call, please dial in approximately ten minutes before the start of the call.

For those unable to participate in the live call, an audio replay will be available following the call through midnight Thursday, April 4, 2024. To access the replay, please call 1-844-512-2921 or 1-412-317-6671 (International) and enter access code 10186286. A replay of the webcast will also be archived shortly after the call and can be accessed on the Company's website.

About Xos, Inc.

Xos is a leading technology company, electric truck manufacturer, and fleet services provider for battery-electric fleets. Xos vehicles and fleet management software are purpose-built for medium- and heavy-duty commercial vehicles that travel on last-mile, back-to-base routes. The company leverages its proprietary technologies to provide commercial fleets with battery-electric vehicles that are easier to maintain and more cost-efficient on a total cost of ownership (TCO) basis than their internal combustion engine counterparts. For more information, please visit www.xostrucks.com.