Fourth quarter revenue increased 113%
year-over-year to $1.5 million
Full-year revenue increased 30% year over year
to $3.9 million
Secured orders for over 1,000 sensors in the
fourth quarter
Quanergy Systems, Inc. (NYSE: QNGY), a leading provider of LiDAR
sensors and smart 3D solutions, today announced financial results
for the three months and full-year ended December 31, 2021.
Fourth Quarter 2021 Results
- Revenue of $1.5 million, up 113% year-over-year, and up 32%
sequentially from the third quarter of 2021
- Third consecutive quarter of sequential and year-over-year
growth
- Secured orders for over 1,000 sensors for a broad range of IoT
applications
- Net loss of $9.4 million vs $11.8 million in the fourth quarter
of 2020
- Non-GAAP Adjusted EBITDA loss of $8.5 million vs $9.0 million
in the fourth quarter of 2020
- Ended fourth quarter with cash and cash equivalents of $26.1
million
Full-Year 2021 Results
- Revenue of $3.9 million, up 30% year-over-year from $3.0
million in 2020
- Exceeded updated revenue plan of $3.6 million
- 1,065 sensors shipped in the full year
- Net loss of $63.5 million vs $35.8 million in 2020
- Non-GAAP Adjusted EBITDA loss of $28.0 million vs $24.3 million
in 2020
Subsequent to year-end, the Company completed its business
combination transaction on February 8, 2022, effectively
eliminating a debt balance of $106 million and providing near term
access to a $125 million equity facility.
"I am incredibly proud of our execution this year. We are seeing
strong end market engagement across our business and the LiDAR
sector as a whole,” said Kevin Kennedy, Chairman and CEO of
Quanergy. “As our industry-leading technology continues to pave the
way for new applications and increased penetration of existing
fields, Quanergy is well-positioned to capitalize on the tailwinds
of increased detection and data collection needs across the
world.”
Fourth Quarter 2021 Financial
Results
Sales for the fourth quarter of 2021 totaled $1.5 million,
compared with $704 thousand in the same period of 2020, with growth
driven primarily by growing customer demand for Quanergy’s security
and smart spaces solutions.
Gross loss was $191 thousand for the quarter, underpinning gross
margins of minus 13% which included a $540 thousand charge for
excess inventory taken in the fourth quarter of 2021 due to changes
in forecasted demand for certain products. Excluding this charge,
non-GAAP gross profit and gross margin would have been $349
thousand and 23%, respectively.
Net loss of $9.4 million for the fourth quarter of 2021 compared
to a net loss of $11.8 million in the fourth quarter of 2020.
Non-GAAP Adjusted EBITDA loss for the fourth quarter of 2021 was
$8.5 million, compared with $9.0 million for the same period in
2020.
At December 31, 2021, the Company had $26.1 million in cash and
cash equivalents, compared to $7.6 million at December 31,
2020.
Free Cash Flow (a non-GAAP measure defined as cash flow from
operations less capital expenditures) was negative $8.1 million,
compared with negative $6.4 million in the fourth quarter of 2020.
The higher cash burn was largely driven by business combination
preparation costs as well the timing of insurance premiums.
Key operational highlights
- The Company announced the successful demonstration of
Quanergy’s OPA-based solid-state LiDAR technology out to a range of
200 meters.
- Increased the Company’s customer count to nearly 400 and global
partners to over 50.
- The number of sensor units shipped increased sequentially by
more than 50% from Q3 2021 to Q4 2021.
- The average deal size continued to expand. The Company secured
eight deals larger than $150 thousand in fourth quarter of
2021.
- Expanded traction in industrial automation with initial
customer wins.
- Talent continued to grow, with the Company’s headcount growing
by more than 35% year-over-year.
- Strengthened the Company’s executive management team with the
additions of Kevin Amiri, as Senior Vice President Operations, and
Jerry Allison, as General Counsel and Corporate Secretary.
- Announced a partnership with Securitas France to provide the
security industry’s first remote mobile surveillance solution with
3D LiDAR integration.
- Released 10 new products, including QORTEX DTC 2.2, ideal for
challenging smart city and smart spaces applications, and M1 Edge,
a smart industrial automation solution that offers a 3x
price/performance advantage versus other solutions.
- Selected as the winner of the “Smart City Innovation of the
Year” from IoT Breakthrough Awards Program.
- On February 9, 2022, the Company’s Common Stock began trading
on the New York Stock Exchange under the new trading symbol “QNGY.”
As of March 29, 2022, there were 86,504,955 million shares of the
Company’s common stock issued and outstanding.
Q1 2022 Guidance
- Revenue guidance for the first quarter of 2022 reflects solid
customer and partner demand, partially offset by global supply
chain constraints which have impacted the Company’s ability to
fulfill orders according to normal delivery timelines.
- Quanergy expects first-quarter 2022 revenues of $1.1 - $1.3
million.
The Company’s expectations with respect to the first quarter of
2022 are based on its estimates and assumptions as of the date of
this press release and are subject to uncertainty. The Company’s
expectations with respect to revenues for the first quarter of 2022
are estimated. Actual revenues, for the first quarter of 2022 are
subject to completion of the Company’s financial closing procedures
for the period, and the actual and reported financial results for
the first quarter of 2022 may materially differ. As such, the
Company’s expectations with respect to the first quarter of 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.”
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 Adjusted
EBITDA, and Free Cash Flow are useful in evaluating its operating
performance. Quanergy calculates Adjusted EBITDA as net loss adding
back interest, stock based comp, income taxes, and other expenses
and before depreciation and amortization. Quanergy believes that
Adjusted EBITDA may be helpful to investors because it provides
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 our ability to generate additional cash from our business
operations. We define Free Cash Flow, as used in this press
release, 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 our performance or net
cash provided by operating activities as a measure of our
liquidity. Therefore, we believe it is important to view free cash
flow as supplemental to our 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 momentum of our business and the
LiDAR sector, new applications for our technology and increased
penetration in existing fields, our position to capitalize on
increased detection and data collection needs, and all information
included in the section titled “Q1 2022 Guidance”. 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, 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.
Consolidated Balance
Sheets
(in thousands, except share
and per share data)
December 31, 2021
December 31, 2020
Assets
Current assets:
Cash and cash equivalents
$
26,106
$
7,598
Restricted cash
70
70
Accounts receivable, net of allowance for
doubtful accounts of $224 and $224 at December 31, 2021 and 2020,
respectively
645
725
Inventory
3,242
4,817
Prepaid expenses and other current
assets
1,138
329
Total current assets
31,201
13,539
Property and equipment, net
1,908
2,809
Other long-term assets
3,539
181
Total assets
$
36,648
$
16,529
Liabilities, mezzanine equity and
stockholders’ deficit
Current liabilities
Accounts payable
$
2,375
$
1,550
Accrued expenses
2,435
2,088
Accrued settlement liability
2,500
2,500
Other current liabilities
737
560
Short-term debt
34,311
—
Total current liabilities
42,358
6,698
Long-term debt
16,153
33,443
Long-term debt - related party
16,670
5,957
Derivative liability
26,017
5,021
Other long-term liabilities
803
1,236
Total liabilities
102,001
52,355
Commitments and contingencies
Mezzanine equity:
Total mezzanine equity
152,978
152,978
Stockholders' deficit:
Common stock
1
-
Additional paid-in capital
89,326
55,310
Accumulated other comprehensive loss
(61)
(61)
Accumulated deficit
(307,597)
(244,053)
Total stockholders’ deficit
(218,331)
(188,804)
Total liabilities, mezzanine equity and
stockholders’ deficit
$
36,648
$
16,529
Quanergy Systems, Inc.
Consolidated Statements of
Operations
(in thousands, except share
and per share data)
Three Months ended December
31,
For the year ended December
31,
2021
(Unaudited)
2020
(Unaudited)
2021
2020
Net sales
$
1,503
$
704
$
3,928
$
3,015
Cost of goods sold
1,694
620
3,939
2,586
Gross profit (loss)
(191)
84
(11)
429
Operating expenses:
Research and development
4,961
4,684
17,011
15,373
Sales and marketing
2,405
1,560
8,286
6,486
General and administrative
2,511
4,244
15,653
9,472
Operating expenses
9,877
10,488
40,950
31,331
Loss from operations
(10,068)
(10,404)
(40,961)
(30,902)
Interest expense, net
(6,612)
(2,344)
(21,484)
(6,346)
Other income (expense), net
7,327
911
(1,073)
1,420
Loss before income taxes
(9,353)
(11,837)
(63,518)
(35,828)
Income tax provision
(11)
(2)
(26)
(7)
Net loss
$
(9,364)
$
(11,839)
$
(63,544)
$
(35,835)
Quanergy Systems, Inc.
Consolidated Statements of
Cash Flows
(in thousands)
For the year ended December
31,
2021
2020
Cash flows from operating
activities
Net loss
$
(63,544)
$
(35,835)
Adjustments to reconcile net loss to net
cash used in operating activities:
Stock-based compensation
11,972
5,443
Non-cash interest expense
21,155
5,927
Depreciation and amortization
948
1,192
Non-cash loss on issuance of convertible
notes
—
26
Change in fair value of debt derivative
liabilities
3,628
(1,402)
Bad debt expense
—
149
Non-cash gain on forgiveness of PPP
loan
(2,515)
-
Other
—
63
Accounts receivable
80
(109)
Inventory
1,575
852
Prepaid expenses and other current
assets
(809)
219
Other long-term assets
(3,358)
4
Accounts payable
825
(420)
Accrued expenses
347
245
Accrued settlement liability
—
2,500
Other current liabilities
5
(251)
Other long-term liabilities
(433)
(418)
Net cash used in operating activities
(30,124)
(21,815)
Cash flows from investing
activities
Proceeds from sale of property and
equipment
—
226
Purchase of property and equipment
(47)
-
Net cash provided by (used in) investing
activities
(47)
226
Cash flows from financing
activities
Proceeds from issuance of convertible
notes
37,225
415
Proceeds from issuance of convertible
notes to related parties
11,475
15,700
Payments for issuance costs of convertible
notes
(95)
(365)
Proceeds from PPP loan
—
2,515
Proceeds from exercises of stock
options
74
34
Net cash provided by financing
activities
48,679
18,299
Effect of exchange rate changes on cash,
cash equivalents and restricted cash
—
12
Net increase (decrease) in cash, cash
equivalents and restricted cash
18,508
(3,278)
Cash, cash equivalents and restricted cash
at beginning of period
7,668
10,946
Cash, cash equivalents and restricted cash
at end of period
$
26,176
$
7,668
Supplemental disclosures of cash flow
information:
Cash paid during the year for interest
$
334
$
452
Supplemental schedule of noncash
investing and financing activities
Issuance of common stock warrants
$
21,971
$
7,212
Fair value of debt derivative liabilities
related to issuance of convertible notes
$
26,189
$
5,231
Quanergy Systems, Inc. Reconciliation of
GAAP to Non-GAAP Financial Measures (Unaudited) (in
thousands)
Three months ended December
31,
The year ended December
31,
2021
2020
2021
2020
Net loss
$
(9,364)
$
(11,839)
$
(63,544)
$
(35,835)
Interest expense (income), net
6,611
2,344
21,484
6,346
Other expense (income), net
(7,287)
(907)
1,113
(1,414)
Stock-based compensation
1,318
1,120
11,972
5,443
Income taxes
11
2
26
7
Non-GAAP Operating Loss
$
(8,711)
$
(9,280)
$
(28,949)
$
(25,453)
Depreciation and amortization expense
228
275
948
1,192
Adjusted EBITDA
$
(8,483)
$
(9,005)
$
(28,001)
$
(24,261)
Three Months ended December
31,
2021
Net sales
$
1,503
Cost of Goods Sold
(1,694)
Gross profit (loss) on GAAP basis
(191)
Reserve for excess inventory taken
540
Gross profit (loss) on non-GAAP basis
$
349
Gross margin on GAAP basis
(13)%
Gross margin on non-GAAP basis
23%
Three months ended December
31,
The year ended December
31,
2021
2020
2021
2020
Net cash used in operating activities
$
(8,076)
$
(6,426)
$
(30,124)
$
(21,815)
Less purchases of property and
equipment
(29)
0
(47)
0
Free Cash Flow
$
(8,105)
$
(6,426)
$
(30,171)
$
(21,815)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220401005099/en/
Quanergy Systems Investor: Ryan Gardella
ryan.gardella@icrinc.com
Media: Neal Stein media@quanergy.com
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