Ideanomics, Inc. Reports Q3 2020 Financial Results
- Revenues for the three months ended September 30, 2020, was
$10.6 million, an increase of 2.3x compared to Q2 2020 and 3.4x
compared to Q3 2019
- Strong cash position, finished the quarter with $27.6
million
- Q3 revenues were supported by strong growth in the Taxi and
Ridesharing segment
- Strategic Investment into California e-tractor company,
Solectrac, which services agricultural and specialty vehicle
market
NEW YORK, NY -- November 9, 2020 -- InvestorsHub
NewsWire -- Ideanomics (NASDAQ: IDEX)
("Ideanomics" or the "Company"), a global company focused on
monetizing the adoption of commercial electric vehicles and
associated energy consumption, as well as enabling the next
generation of financial services and fintech products, announced
today its third quarter 2020 operating results for the period
ended September 30, 2020 (a full copy of the Company's
10-Q report is available at www.sec.gov).
Conference Call: Ideanomics' management, including Alf
Poor (Chief Executive Officer), Conor
McCarthy (Chief Financial Officer) and Tony
Sklar (SVP of Investor Relations), will host live an earnings
release conference call at 4:30 pm ET, Monday, November
9, 2020. http://investors.ideanomics.com. Time permitting,
Ideanomics management will answer questions during the live Q&A
session. A replay of the earnings call will be available soon after
the conclusion of the event.
To join the webcast, please visit the 'Events &
Presentations' section of the Ideanomics corporate website
(https://investors.ideanomics.com/), or copy/paste this
link:
https://78449.themediaframe.com/dataconf/productusers/ssc/mediaframe/41438/indexl.html
"We reported our third consecutive quarter of MEG revenue
growth, and our pipeline gives us confidence that we can maintain
this momentum through our product and service offerings and global
footprint," said Alf Poor, CEO of Ideanomics. "The MEG
division in China, Treeletrik in Malaysia, and Medici
Motor Works and Solectrac in the U.S. are all progressing towards
our objectives for the remainder of 2020, and into 2021 and beyond.
Strong growth in our taxi and ridesharing business is continuing
and we are beginning to bring other revenues online in Q4,
including activity in the bus segment of our business."
Ideanomics Third Quarter 2020 Operating
Results
Revenue for the three months ended September 30, 2020,
was $10.6 million, of which $10.1 million were
generated by the Company's MEG business unit; this represents the
largest revenues earned by MEG since the Company commenced
business.
In the third quarter of 2020, the Company continued to develop
its MEG business and recognized $10.6 million revenue
from the sales of vehicles, which included revenue of $1.3
million from the sale of traditional combustion engine
vehicles. In the third quarter of 2020 the Company acted in both a
Principal and Agent capacity in relation to vehicle sales. For
those contracts in which it acted in a Principal capacity revenues
were recorded on a Gross basis and for those contracts where it
acted in an Agent capacity the revenues were recorded on a Net
basis.
Gross Profit
Gross profit for the three months ended September 30,
2020 was $0.7 million, as compared to gross profit in the
amount of $2.9 million during the same period in
2019.
Operating Loss
The Loss from Operations was $12.0 million as compared
to $9.4 million in the prior period. The increased
Operating Loss is almost entirely due to the lower gross profit in
the current quarter.
About Ideanomics
Ideanomics is a global company that
facilitates the adoption of commercial electric vehicles and
supports next-generation financial services and fintech products.
Our electric vehicle division, Mobile Energy Global (MEG) provides
group purchasing discounts on commercial electric vehicles, EV
batteries and electricity, as well as financing and charging
solutions; we refer to this business model as sales to financing to
charging (S2F2C). Ideanomics Capital provides intelligent and
innovative services for the fintech industry. Together, MEG and
Ideanomics Capital provide our global customers and partners with
more efficient solutions.
The company is headquartered in New York, NY, with offices
in Beijing, Hangzhou, and Qingdao, and operations in
the U.S., China, Ukraine, and Malaysia.
Safe Harbor Statement
This press release contains certain statements that may include
"forward looking statements". All statements other than statements
of historical fact included herein are "forward-looking
statements." These forward-looking statements are often identified
by the use of forward-looking terminology such as "believes,"
"expects" or similar expressions, involve known and unknown risks
and uncertainties, and include statements regarding our intention
to transition our business model to become a next-generation
financial technology company, our business strategy and planned
product offerings, our intention to phase out our oil trading and
consumer electronics businesses, and potential future financial
results. Although the Company believes that the expectations
reflected in such forward-looking statements are reasonable, they
do involve assumptions, risks and uncertainties, and these
expectations may prove to be incorrect. You should not place undue
reliance on these forward-looking statements, which speak only as
of the date of this press release. The Company's actual results
could differ materially from those anticipated in these
forward-looking statements as a result of a variety of risks and
uncertainties, such as risks related to: our ability to continue as
a going concern; our ability to raise additional financing to meet
our business requirements; the transformation of our business
model; fluctuations in our operating results; strain to our
personnel management, financial systems and other resources as we
grow our business; our ability to attract and retain key employees
and senior management; competitive pressure; our international
operations; and other risks and uncertainties disclosed under the
sections entitled "Risk Factors" and "Management's Discussion and
Analysis of Financial Condition and Results of Operations" in our
most recent Form 10-K and Form 10-Q filed with the Securities and
Exchange Commission, and similar disclosures in subsequent reports
filed with the SEC, which are available on the SEC website
at www.sec.gov. All forward-looking statements
attributable to the Company or persons acting on its behalf are
expressly qualified in their entirety by these risk factors. Other
than as required under the securities laws, the Company does not
assume a duty to update these forward-looking statements.
Investor Relations and Media Contact
Tony Sklar, VP of Communications
1441 Broadway, Suite 5116, New York, NY 10018
ir@ideanomics.com
Valerie Christopherson / Lora Wilson
Global Results Communications (GRC)
+1 949 306 6476
valeriec@globalresultspr.com
SOURCE Ideanomics
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