ANAHEIM, CA - Phoenix Motor Inc. (NASDAQ:PEV), a manufacturer of electric buses and provider of electrification solutions, has reported a significant increase in its financial results for the second quarter ended June 30, 2024. The company's revenue soared by 937% to $12.03 million, up from $1.16 million in the same period last year. Gross profit also rose to $1.83 million, recovering from a gross loss of $0.06 million in Q2 2023.
The net loss for the company showed improvement, decreasing to $2.26 million compared to a net loss of $3.18 million in the prior year's quarter. Phoenix Motor's cash position strengthened, with cash and cash equivalents reaching $1.40 million as of June 30, 2024, a significant increase from just $0.03 million at the end of 2023. Additionally, total equity showed a positive shift to $21.86 million, moving up from a negative equity position of $4.84 million as of December 31, 2023.
Operational highlights include the delivery of five 40' ZX5 battery electric buses to the University of California, Irvine in May 2024 and a contract to supply four all-electric transit buses to the University of California San Diego, with deliveries expected in early 2025. The company also unveiled new branding at the Advanced Clean Transportation (ACT) Expo and began production of its fourth-generation drivetrain for Class-4 shuttle buses and trucks.
Phoenix Motor has made strategic appointments to strengthen its leadership, with Dr. Lewis Liu taking on the role of Chief Operating Officer and Michael Yung becoming the Chief Financial Officer as of April 17, 2024. The company also negotiated a key waiver with a note holder, which eliminated a potential $12 million convertible promissory note issuance.
In a statement, CEO Denton Peng expressed satisfaction with the quarter's growth and financial performance, attributing it to the rapid integration of the new transit segment. Peng emphasized the company's commitment to innovation and scaling production to meet the growing demand for electric vehicles.
The press release also included forward-looking statements, cautioning readers about the potential risks and uncertainties that could impact the company's future performance. These risks include the need for additional capital, growing demand for the company's products, profitability, supply chain challenges, and market conditions.
The information in this article is based on a press release statement from Phoenix Motor Inc.
In other recent news, Phoenix Motor Inc. has reported a record-breaking Q1, with net revenues of $9.4 million and a net income of $14.8 million. This success is primarily attributed to the acquisition of a leading zero-emission bus manufacturer, which has enabled Phoenix Motor to secure a 40% market share in North America's electric transit bus market. In addition, the company has announced the upcoming delivery of four all-electic transit buses to the University of California San Diego in 2025, marking a significant step in their expansion within the electric transportation sector.
Despite facing potential delisting from Nasdaq due to non-compliance with the exchange's minimum bid price requirement, Phoenix Motor has been granted an extension until April 7, 2025, to regain compliance. The company's total assets have grown to $78.7 million, meeting Nasdaq's listing standards, and a robust order backlog of $200 million is expected to significantly contribute to future revenues.
Phoenix Motor has also partnered with the Bay Area Founders Club to establish an Artificial Intelligence development center in Silicon Valley. This move aims to advance the company's initiatives in electric and autonomous bus technologies. These recent developments highlight Phoenix Motor's ongoing commitment to innovation and growth in the electric vehicle market.
InvestingPro Insights
Phoenix Motor Inc.'s (NASDAQ:PEV) impressive revenue growth of 937% in Q2 2024 is further supported by InvestingPro data, which shows a robust revenue growth of 428.92% for the most recent quarter. This aligns with the company's reported financial results and underscores the rapid expansion of its electric vehicle business.
Despite the strong top-line growth, InvestingPro Tips highlight that Phoenix Motor is "quickly burning through cash" and "may have trouble making interest payments on debt." These insights suggest that while the company is experiencing rapid growth, it may face challenges in managing its financial obligations, which is crucial for investors to consider alongside the positive revenue trends.
The company's stock performance has been volatile, with InvestingPro data showing a strong return of 32.71% over the last month, contrasting with a year-to-date price total return of -52.26%. This volatility is consistent with the InvestingPro Tip that the "stock generally trades with high price volatility," which may be of interest to investors considering the company's recent operational developments and market position in the electric vehicle sector.
For readers interested in a more comprehensive analysis, InvestingPro offers 11 additional tips for Phoenix Motor Inc., providing a deeper understanding of the company's financial health and market performance.
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