Last 12 Months Bookings of $8.8 Million; 100%
Year-over-Year Growth
Quanergy Systems, Inc. (NYSE: QNGY) (“Quanergy”), a leading
provider of LiDAR sensors and smart 3D solutions, today announced
financial results for the three months ended June 30, 2022.
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the full release here:
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Second Quarter 2022 Highlights
- Last 12 month bookings1 increased 100% year-over-year to $8.8
million
- Second quarter revenue of $1.2 million, within the guidance
range, and up 31% year-over-year
- Second quarter GAAP net loss of $25.7 million compared to $20.5
million in the second quarter of 2021
- Second quarter adjusted EBITDA loss of $12.5 million compared
to $6.6 million in the second quarter of 2021, an increase driven
primarily by purchasing surcharges, growth investments and public
company costs
- Ended the second quarter with cash, cash equivalents and
restricted cash of $18.8 million
“The second quarter marked a continuation of our growth
trajectory with the company posting its fifth consecutive
year-over-year increase in quarterly revenue. Our business is in a
growth mode, supported by strong increases in bookings, deal sizes
and our customer pipeline,” said Kevin Kennedy, Chairman and CEO.
“We expect our bookings and revenues to continue seeing the benefit
of increased market fit, repeatability and scale, driven by the
superior accuracy, performance and total cost of ownership of our
security, industrial and flow management solutions.”
1
Bookings are defined as non-cancellable
orders expected to be delivered within 12 months of purchase order
receipt.
Second Quarter 2022 Financial
Results
Revenue for the second quarter of 2022 totaled $1.2 million,
compared with $905 thousand in the same period of 2021,
representing year-over-year growth of 31%. The conversion of
bookings to revenue during the quarter was constrained primarily by
the ramping of the company’s manufacturing capacity and the timing
of certain bookings that were received late in the quarter.
GAAP gross profit was negative $1.3 million for the quarter,
compared to $145 thousand in the second quarter of 2021. Excluding
stock-based compensation expense, non-GAAP adjusted gross profit
was negative $1.1 million for the quarter, compared to $166
thousand in the second quarter of 2021. Non-GAAP adjusted gross
profit in the second quarter of 2022 was adversely impacted by $1.1
million of purchasing surcharges expensed during the quarter,
ongoing supply chain constraints and transitory manufacturing
costs.
GAAP net loss was $25.7 million for the quarter compared to
$20.5 million for the same period in 2021.
Adjusted EBITDA loss for the second quarter of 2022 was $12.5
million compared with $6.6 million for the same period in 2021, an
increase driven primarily by purchasing surcharges, increased
investments to support growth and public company costs.
As of June 30, 2022, the Company had $18.8 million in cash, cash
equivalents and restricted cash on its balance sheet. During the
second quarter, $9.9 million was drawn from the GEM share
subscription facility leaving $115 million outstanding under the
facility.
Net cash from operating activities was negative $10.6 million in
the second quarter of 2022 versus negative $7.8 million in the
second quarter of 2021. Free cash flow was negative $10.8 million
in the second quarter of 2022 compared with negative $7.9 million
in the prior year period.
Key Operational Highlights
- Signed a multi-million-dollar deal with Prime Secured to
enhance surveillance and access control at a major casino
- Audio Technology selected Quanergy’s M Series sensors and
QORTEX DTC perception software to provide perimeter intrusion
detection for a critical military site in Egypt
- The Nanjing Port Group selected Quanergy’s M Series sensors to
help the busy Chinese port reduce accidents and false alarms
- Quanergy and PARIFEX partnered on the first 3D LiDAR-based
highway monitoring and enforcement system which was certified by a
French testing body
- Introduced the M1 Edge PoE sensor – the world’s first 2D 360°
POE LiDAR sensor – offering higher detection accuracy at a lower
price than competing solutions for Perimeter Intrusion Detection
and industrial applications
- Welcomed Lori Sundberg as Chief Human Resources Officer; Lori
is an accomplished HR professional that has served in senior
positions with Western Digital, Jacobs, American Express, among
others
- Appointed Lisa Kelley to the Board of Directors in August 2022;
Lisa is an experienced finance and operations executive, with more
than 25 years of success across multiple industries including
electronics and manufacturing
Outlook for 2022
- Customer demand for Quanergy’s solutions is constructive,
evidenced by robust bookings growth and other indicators, including
pipeline growth and land-and-expand trends
- Quanergy currently expects 2022 bookings of $14.0 - $18.0
million, consistent with prior revenue guidance and representing
121% year-over-year growth at the midpoint
- Due to the ramping of manufacturing capacity and ongoing supply
chain limitations, Quanergy is guiding to Q3 2022 revenues of $1.75
- $2.5 million and full year 2022 revenues of $7.0 - $9.0
million
The Company’s expectations with respect to Q3 2022 and full year
2022 are estimated. Actual revenues for Q3 2022 and full year 2022
are subject to completion of the Company’s financial closing
procedures for the period, and the actual and reported financial
results for Q3 2022 and full year 2022 may materially differ. As
such, the Company’s expectations with respect to Q3 2022 and full
year 2022 are inherently unpredictable and actual results and
outcomes could differ materially for a variety of reasons,
including the factors discussed below under “Forward-Looking
Statements.”
2022 Second Quarter Conference Call and Webcast Quanergy
is hosting a conference call and webcast today, August 11, 2022,
beginning at 4:30 p.m. ET to discuss the Company’s preliminary
second quarter 2022 results and other matters. Both the call and
the webcast are open to the general public. The conference call
number is 201-389-0920 and the conference ID number is 13731117
(domestic or international). Please call five minutes prior to the
presentation to ensure that you are connected.
About Quanergy Systems, Inc. Quanergy’s (NYSE: QNGY and
QNGY.WS) mission is to create powerful, affordable smart LiDAR
solutions for automotive and IoT applications to enhance people’s
experiences and safety. Quanergy has developed the only true 100%
solid-state CMOS LiDAR sensor built on optical phased array (OPA)
technology to enable the mass production of low-cost, highly
reliable 3D LiDAR solutions. Through Quanergy’s smart LiDAR
solutions, businesses can now leverage real-time, advanced 3D
insights to transform their operations in a variety of industries
including industrial automation, physical security, smart cities,
smart spaces and much more. Quanergy solutions are deployed by
nearly 400 customers across the globe. For more information, please
visit us at www.quanergy.com.
Non-GAAP Financial Measures
In addition to its results determined in accordance with
generally accepted accounting principles in the United States
(“GAAP”), Quanergy believes the non-GAAP measures of non-GAAP
adjusted gross profit, adjusted EBITDA and free cash flow are
useful in evaluating its operating performance. Quanergy calculates
non-GAAP adjusted gross profit as gross profit adding back
stock-based compensation expense included in cost of goods sold.
Quanergy calculates non-GAAP adjusted EBITDA as net loss adding
back stock-based compensation expense, depreciation and
amortization, interest expense and income, change in fair value of
derivatives, gain on forgiveness of PPP loan, and income tax
provision (benefit). Quanergy believes that non-GAAP adjusted gross
profit and non-GAAP adjusted EBITDA may be helpful to investors
because they provide consistency and comparability with past
financial performance and may be helpful in comparing with other
companies, some of which use similar non-GAAP information to
supplement their GAAP results. Free cash flow is a non-GAAP
financial measure. Management believes, however, that free cash
flow is an important financial measure for use in evaluating the
Company’s financial performance, as it measures the Company’s
ability to generate additional cash from its business operations.
Quanergy defines free cash flow as cash flow from operations less
capital expenditures. Free cash flow should be considered in
addition to, rather than as a substitute for, net loss as a measure
of performance or net cash provided by operating activities as a
measure of liquidity. Therefore, Quanergy believes it is important
to view free cash flow as supplemental to the entire statement of
cash flows. The non-GAAP financial information is presented for
supplemental informational purposes only and should not be
considered a substitute for financial information presented in
accordance with GAAP and may be different from similarly titled
non-GAAP measures used by other companies. Reconciliation tables of
the most comparable GAAP financial measures to the non-GAAP
financial measures are included at the end of this press
release.
Forward-Looking Statements
This press release includes certain statements that are not
historical facts but are forward-looking statements for purposes of
the safe harbor provisions under the United States Private
Securities Litigation Reform Act of 1995. Forward-looking
statements generally are accompanied by words such as “believe,”
“may,” “will,” “estimate,” “continue,” “anticipate,” “intend,”
“expect,” “should,” “would,” “plan,” “predict,” “potential,”
“seem,” “seek,” “future,” “outlook,” “project,” “will likely
result” and similar expressions that predict or indicate future
events or trends or that are not statements of historical matters.
All statements, other than statements of present or historical fact
included in this press release, are forward-looking statements,
including statements regarding the trajectory and growth of our
business, our customer pipeline, expectations regarding bookings
and revenues and the benefit of market fit, repeatability and
scale, our projects with Prime Secured, Audio Technology, Nanjing
Port Group, and PARIFEX, and all information included in the
section titled “Outlook for 2022”. These forward-looking statements
involve significant risks and uncertainties that could cause actual
results to differ materially from expected results. Most of these
factors are outside Quanergy’s control and are difficult to
predict. Factors that may cause such differences include, but are
not limited to: changes in domestic and foreign business, market,
financial, political and legal conditions; the overall level of
consumer demand for Quanergy’s products; general economic
conditions and other factors affecting consumer confidence,
preferences, and behavior; disruption and volatility in the global
currency, capital, and credit markets; the ability to maintain the
listing of Quanergy’s securities on the New York Stock Exchange;
the financial strength of Quanergy’s customers; Quanergy’s ability
to implement its business strategy; changes in governmental
regulation; Quanergy’s exposure to litigation claims and other loss
contingencies; disruptions and other impacts to Quanergy’s
business, as a result of the COVID-19 global pandemic and
government actions and restrictive measures implemented in
response; stability of Quanergy’s suppliers and the impact of
supply chain constraints, as well as consumer demand for its
products, in light of disease epidemics and health-related concerns
such as the COVID-19 global pandemic; the impact that global
climate change trends may have on Quanergy and its suppliers and
customers; Quanergy’s ability to protect patents, trademarks and
other intellectual property rights; any breaches of, or
interruptions in, Quanergy’s information systems; fluctuations in
the price, availability and quality of electricity and other raw
materials and contracted products as well as foreign currency
fluctuations; Quanergy’s ability to utilize potential net operating
loss carryforwards; changes in tax laws and liabilities, tariffs,
legal, regulatory, political and economic risks; and other risks
and uncertainties indicated in Quanergy’s filings with the U.S.
Securities and Exchange Commission. In addition, forward-looking
statements reflect Quanergy’s expectations, plans or forecasts of
future events and views only as of the date of this press release.
Quanergy anticipates that subsequent events and developments will
cause its assessments to change. However, while Quanergy may elect
to update these forward-looking statements at some point in the
future, Quanergy specifically disclaims any obligation to do so,
except as required by law.
Quanergy is a registered trademark of Quanergy Systems. All
other trademarks and trade names contained herein may be those of
their respective owners.
© 2022, Quanergy Systems, Inc. All rights reserved.
Quanergy Systems, Inc.
Condensed Consolidated Balance
Sheet
(in thousands, except share and
per share data)
(unaudited)
June 30, 2022
December 31, 2021
Assets
Current assets:
Cash and cash equivalents
$
18,719
$
26,106
Restricted cash
70
70
Accounts receivable, net of allowance for
doubtful accounts of $224 at June 30, 2022 and December 31,
2021
820
645
Inventory
5,521
3,242
Prepaid expenses and other current
assets
12,915
1,138
Total current assets
38,045
31,201
Property and equipment, net
1,867
1,908
Other long-term assets
11,116
3,539
Total assets
$
51,028
$
36,648
Liabilities and stockholders’ equity /
(deficit)
Current liabilities
Accounts payable
$
4,475
$
2,375
Accrued expenses
3,317
2,435
Accrued settlement liability
2,750
2,500
Other current liabilities
5,086
737
Short-term debt
—
34,311
Related party payable
1,070
—
Total current liabilities
16,698
42,358
Long-term debt
—
16,153
Long-term debt - related party
—
16,670
Derivative liability
496
26,017
Other long-term liabilities
9,026
803
Total liabilities
26,220
102,001
Commitments and contingencies (Note
15)
Stockholders’ equity / (deficit):
Common stock, $0.0001 par value.
300,000,000 and 80,071,901 shares authorized as of June 30, 2022
and December 31, 2021, respectively; 129,613,549 and 57,020,151
shares issued and outstanding as of June 30, 2022 and December 31,
2021 respectively.
13
6
Additional paid-in capital
462,827
242,299
Accumulated other comprehensive loss
(79
)
(61
)
Accumulated deficit
(437,953
)
(307,597
)
Total stockholders’ equity / (deficit)
24,808
(65,353
)
Total liabilities and stockholders’
equity
$
51,028
$
36,648
Quanergy Systems, Inc.
Condensed Consolidated
Statements of Operations
(in thousands, except share and
per share data)
(unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
2022
2021
2022
2021
Net sales
$
1,189
$
905
$
2,556
$
1,288
Cost of goods sold
2,453
760
4,306
1,257
Gross loss
(1,264
)
145
(1,750
)
31
Operating expenses:
Research and development
6,441
3,740
19,265
8,097
Sales and marketing
4,092
2,223
11,288
3,968
General and administrative
6,219
6,699
48,011
9,192
Operating expenses
16,752
12,662
78,564
21,257
Loss from operations
(18,016
)
(12,517
)
(80,314
)
(21,226
)
Other income (expense):
Interest expense, net
(10
)
(5,277
)
(40,054
)
(8,961
)
Other income (expense), net
(7,645
)
(2,667
)
(9,982
)
(4,984
)
Loss before income taxes
(25,671
)
(20,461
)
(130,350
)
(35,171
)
Income tax provision
(3
)
(6
)
(6
)
(10
)
Net loss
$
(25,674
)
$
(20,467
)
$
(130,356
)
$
(35,181
)
Net loss attributable per share to common
stockholders, basic and diluted
$
(0.22
)
$
(0.30
)
$
(1.27
)
$
(0.54
)
Weighted-average shares used to compute
net loss attributable per share to common stockholders, basic and
diluted
117,864,896
67,111,977
102,868,390
65,096,986
Quanergy Systems, Inc.
Condensed Consolidated
Statements of Cash Flows
(in thousands)
(unaudited)
Six Months Ended June
30,
2022
2021
Cash flows from operating
activities
Net loss
$
(130,356
)
$
(35,181
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Stock-based compensation
56,812
7,306
Non-cash interest expense
40,071
8,727
Change in fair value of derivative
liabilities
1,025
7,499
Change in fair value of share-settled
forward asset
8,956
Non-cash bonus expense
1,412
—
Depreciation and amortization
472
490
Non-cash lease expense
333
—
Paid-in-kind interest and accrued interest
on repayment of 2022 Notes
(9,341
)
—
Gain on extinguishment of debt
—
(2,515
)
Other
—
(70
)
Changes in operating assets and
liabilities:
Accounts receivable
(175
)
290
Inventory
(2,279
)
446
Prepaid expenses and other current
assets
(1,907
)
166
Other long-term assets
(1
)
(1,780
)
Accounts payable
1,835
629
Accrued expenses
(61
)
(222
)
Accrued settlement liability
250
—
Other current liabilities
(452
)
—
Other long-term liabilities
77
(251
)
Net cash used in operating activities
(33,329
)
(14,466
)
Cash flows from investing
activities
Purchases of property and equipment
(431
)
(5
)
Net cash used in investing activities
(431
)
(5
)
Cash flows from financing
activities
Related party proceeds from PIPE
financing
36,950
—
Proceeds from Business Combination and
PIPE financing
13,414
—
Proceeds from draw down on GEM
agreement
9,900
Payments of offering costs
(8,188
)
—
Repayment of 2022 Notes
(25,813
)
—
Proceeds from exercise of stock
options
58
74
Proceeds from exercise of common stock
warrants
70
—
Proceeds from issuance of convertible
notes
—
37,130
Proceeds from issuance of convertible
notes to related parties
—
11,475
Net cash provided by financing
activities
26,391
48,679
Effect of exchange rate changes on cash,
cash equivalents and restricted cash
(18
)
(6
)
Net increase (decrease) in cash, cash
equivalents and restricted cash
(7,387
)
34,202
Cash, cash equivalents and restricted cash
at beginning of period
26,176
7,668
Cash, cash equivalents and restricted cash
at end of period
$
18,789
$
41,870
Supplemental disclosures of cash flow
information:
Cash paid during the period for
interest
$
9,326
$
236
Supplemental schedule of noncash
investing and financing activities:
Conversion of redeemable convertible
preferred stock to common stock
$
152,978
$
—
Conversion of 2023 Notes into equity
$
101,978
$
—
Issuance of common stock warrants
$
17,602
$
21,970
Assumption of net liabilities from
Business Combination
$
15,956
$
—
Issuance of share-settled forward
asset
$
10,027
Offering costs paid in common stock
$
9,531
$
—
GEM commitment fee
$
2,500
$
—
Fair value of debt derivative liabilities
related to issuance of convertible notes
$
—
$
17,540
Quanergy Systems, Inc.
Reconciliation of GAAP to
Non-GAAP Financial Measures
(in thousands)
(unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
2022
2021
2022
2021
Non-GAAP Adjusted Gross Profit
Gross profit (loss)
$
(1,264
)
$
145
$
(1,750
)
$
31
Stock-based compensation expense
154
21
837
41
Non-GAAP adjusted gross profit
$
(1,110
)
$
166
$
(913
)
$
72
Adjusted EBITDA
Net loss
(25,674
)
(20,467
)
(130,356
)
(35,181
)
Stock-based compensation expense
5,251
5,725
56,812
7,306
Depreciation and amortization
244
239
472
490
Interest expense
25
5,279
40,071
8,964
Interest income
(15
)
(2
)
(17
)
(3
)
Change in fair value of derivatives
7,645
5,182
9,982
7,499
Gain on forgiveness of PPP loan
—
(2,515
)
—
(2,515
)
Income tax provision (benefit)
3
6
6
10
Adjusted EBITDA
(12,521
)
(6,553
)
(23,030
)
(13,430
)
Free Cash Flow
Net cash used in operating activities
(10,583
)
(7,848
)
(33,329
)
(14,466
)
Less: Purchase of property and
equipment
(229
)
(5
)
(431
)
(5
)
Free Cash Flow
(10,812
)
(7,853
)
(33,760
)
(14,471
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220811005504/en/
Quanergy Systems Investor Contact: Ryan Gardella
ryan.gardella@icrinc.com
Media Contact: Shannon Van Every media@quanergy.com
Quanergy Systems (NYSE:QNGY)
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