QuantumScape (QS) Q2 2024 earnings summary

Executive summary

• Announced a landmark licensing agreement and new Collaboration Agreement with PowerCo (Volkswagen Group's battery company), enabling rapid industrialization and commercialization of solid-state lithium-metal battery technology at gigawatt-hour scale, replacing a prior joint venture.

• The deal extends the cash runway into 2028, with an 18-month extension, and provides a $130 million prepayment of royalties upon technical milestones.

• Alpha-2 prototype cells shipped to multiple automotive and consumer electronics customers; robust customer engagement continues.

• QuantumScape is a development-stage company with no revenue and an accumulated deficit of $3.1 billion as of June 30, 2024.

• The company expects to incur significant expenses and losses for the foreseeable future as it advances product development and manufacturing scale-up.

Financial highlights

• Q2 capital expenditures were $18.9 million, mainly for QSE-5 prototype production and Cobra process equipment.

• GAAP operating expenses were $134.5 million; GAAP net loss was $123 million; adjusted EBITDA loss was $72.5 million.

• Net loss for the first half of 2024 was $243.6 million, up from $221.2 million year-over-year.

• Cash, cash equivalents, and marketable securities totaled $937.9 million as of June 30, 2024.

• Research and development expenses increased 13% year-over-year to $97.7 million in Q2 2024.

Outlook and guidance

• Full-year 2024 capital expenditures expected at the lower end of $70–$120 million guidance.

• Maintains full-year 2024 adjusted EBITDA loss guidance of $250–$300 million.

• Cash runway now projected into 2028, with further extension possible through additional fundraising; additional capital may be needed if milestones are delayed.

• Entry into the IP License Agreement with PowerCo and receipt of the $130 million initial royalty is contingent on meeting certain milestones.