Q3 2023 Financial Highlights
- Revenue Growth: Q3’23 revenue of
$38 million grew 61% year-over-year compared to$24 million in Q3’22. - Gross Margin Improvement: Higher quality revenue and lower fixed costs drove improving margins year-over-year:
- Gross Margin improved from (
$25 million ) in Q3’22 to ($4 million ) in Q3’23, which included$6 million of charges from changes in estimated manufactured per-unit costs due to a revised future production outlook and$0.3 million of non-cash stock-based compensation expense. - Gross Margin, without the future production outlook adjustments described above, was positive in Q3’23.
- Gross Margin improved from (
- Reduction in R&D and SG&A Expenses: Cost reduction actions resulted in significant savings in R&D and SG&A expenses in the quarter:
- R&D expense was
$7 million lower (43%) in Q3’23 compared to the same period in the prior year. Non-GAAP R&D expense was$6 million lower (42%) in Q3’23 compared to the same period in the prior year. - SG&A expense was
$16 million lower (38%) in Q3’23 compared to the same period in the prior year. Non-GAAP SG&A expense was$4 million lower (20%) in Q3’23 compared to the same period in the prior year.
- R&D expense was
- Continued Progress towards Profitability: Revenue growth, improving gross margins, and lower R&D and SG&A expenses resulted in:
- Loss from operations was (
$208 million ) in Q3’23 including a$170 million non-cash charge for impairment of long-lived assets and$11 million of non-cash stock-based compensation expense. - Non-GAAP loss from operations, as adjusted for these items, improved from (
$59 million ) in Q3’22 to ($28 million ) in Q3’23. - Non-GAAP Adjusted EBITDA improved from (
$53 million ) in Q3’22 to ($23 million ) in Q3’23.
- Loss from operations was (
- Cash Burn Reduction and Improvement in Cash Management: Revenue growth and lower structural fixed costs improved quarterly cash burn year-over-year in Q3’23:
- Net cash used in operating activities improved by
$19 million (37%) year-over-year, from ($51 million ) in Q3’22 to ($32 million ) in Q3’23.
- Net cash used in operating activities improved by
Key Announcements and Outlook
$50 million Senior Secured Credit Facility: The Company announced a$50 million financing in the form of a Senior Secured Credit Facility from an investor consortium comprised of strategic real estate investorsCantor Fitzgerald , RXR, Anson and Affinius.- Additional Actions taken to Improve Cash Burn: In
October 2023 , the Company took additional actions to reduce structural fixed costs, improving both factory fixed costs and operating expenses. The Company expects these savings to be approximately$10 million annualized from Q3’23, which will be partially realized in Q4’23 and fully realized in Q1’24. - Updating 2023 Revenue Guidance: Management updates FY2023 revenue guidance to be in the range of
$110 million to$120 million , representing 13% year-over-year growth at the midpoint of the range.
“View continues to make progress on our path to profitability and we remain laser-focused on cash management and reducing cash burn. In the quarter, we significantly lowered our structural fixed costs and improved quarterly cash burn,” said Dr.
Q3 2023 Results
Q3 2023 revenue of
Q3 2023 cost of revenues of
Research and Development (“R&D”) expenses of
Selling, General and Administrative (“SG&A”) expenses of
Outlook Changes and Impairment of Long-Lived Assets
During the third quarter of 2023, due to a continued decline in economic and market conditions, including a continued and sustained decline in our market capitalization, rising interest rates and a prolonged outlook for a continued slow-down in the real estate market, as well as a limited amount of additional financing being secured and revised projections for our future operating results, we determined that a triggering event existed requiring our assets to be evaluated for impairment as of
The Company recorded charges of
Liquidity and Financing
The Company has continued to take steps to pursue greater efficiency and lower its structural costs. Most recently, the Company took further actions in
To address our cash needs, we continue to seek additional sources of capital. While the Company has raised sufficient capital to fund operations in the past, there can be no assurance that the necessary additional financing will be available on terms acceptable to the Company, or at all. As there can be no assurance that such necessary financing will be available, we may execute other strategic alternatives to maximize stakeholder value, including further expense reductions, sale of all or portions of the business, corporate capital restructuring or formal reorganization, or liquidation of assets.
Conference Call and Webcast Details
View will host a conference call to discuss its financial results at
Title:
Date/Time:
Participant Dial-In: +1-877-524-8416 / +1-412-902-1028
Webcast Link: https://event.choruscall.com/mediaframe/webcast.html?webcastid=Kt3Yupjk
Forward-Looking Statements
This press release and certain materials View files with the
These forward-looking statements are based on current expectations, estimates, assumptions, projections and management’s beliefs, that are subject to change. There can be no assurance that these forward-looking statements will be achieved; these statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, many of which are beyond View’s control and are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. View’s business is subject to a number of risks which are described more fully in View’s Annual Report on Form 10-K for the year ended
Financial Information; Non-GAAP Financial Measures
This press release contains certain financial information and data that was not prepared in accordance with
The Company presents these non-GAAP amounts because management believes they provide useful information to management and investors regarding certain financial and business trends relating to View’s financial condition and results of operations, and they assist management and investors in comparing the Company's performance across reporting periods on a consistent basis. View’s management uses these non-GAAP measures for trend analyses, for purposes of determining management incentive compensation and for budgeting and planning purposes. View believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating operating results and trends in and in comparing View’s financial measures with those of other similar companies, many of which present similar non-GAAP financial measures to investors. View’s management does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP.
The Company excludes the following items from its non-GAAP measures:
Non-cash stock-based compensation expense: We excluded the non-cash stock-based compensation expense from our non-GAAP financial measures, primarily because it is a non-cash expense. We believe that it is useful to investors to understand our operational performance, liquidity, and our steps toward reaching cash profitability. While stock-based compensation expense constitutes an ongoing and recurring expense, such expense is excluded from our non-GAAP financial measures because it is not an expense that requires cash settlement and is not used by management to assess the core profitability of our business operations. We further believe that excluding this item from our non-GAAP results is useful to investors in that it allows for period-over-period comparability.
Non-cash impairment of long-lived assets: We excluded the non-cash charge for impairment of long-lived assets from our non-GAAP financial measures, because it is a non-cash expense and it does not constitute an ongoing and recurring expense. We believe that it is useful to investors to understand our operational performance, liquidity, and our steps toward reaching cash profitability. We further believe that excluding this item from our non-GAAP results is useful to investors in that it allows for period-over-period comparability.
Restructuring costs: We excluded the restructuring costs from our non-GAAP financial measures because it does not constitute an ongoing and recurring expense. We further believe that excluding this item from our non-GAAP results is useful to investors in that it allows for period-over-period comparability.
There are a number of limitations related to the use of these non-GAAP measures and their nearest GAAP equivalents. For example, other companies may calculate non-GAAP measures differently, or may use other measures to calculate their financial performance, and therefore View’s non-GAAP measures may not be directly comparable to similarly titled measures of other companies.
Reconciliations from GAAP to non-GAAP results are included in the financial statements contained in this release.
About View
View is the leader in smart building technologies that transform buildings to improve human health and experience, reduce energy consumption and carbon emissions, and generate additional revenue for building owners. View Smart Windows use artificial intelligence to automatically adjust in response to outdoor conditions, eliminating the need for blinds and increasing access to natural light. Every View installation includes a cloud-connected smart building platform that can easily be extended to reimagine the occupant experience. View’s products are installed in offices, apartments, airports, hotels, and educational facilities. For more information, please visit: www.view.com.
For further information:
IR@View.com
Condensed Consolidated Statements of Comprehensive Loss
(unaudited)
(in thousands, except share and per share data)
Three Months Ended | Nine Months Ended | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
Revenue | $ | 38,220 | $ | 23,762 | $ | 84,602 | $ | 57,090 | |||||||
Cost of revenue | 42,573 | 49,126 | 124,596 | 129,219 | |||||||||||
Gross loss | (4,353 | ) | (25,364 | ) | (39,994 | ) | (72,129 | ) | |||||||
Operating expenses: | |||||||||||||||
Research and development | 8,918 | 15,554 | 31,573 | 56,157 | |||||||||||
Selling, general, and administrative | 25,518 | 41,174 | 74,429 | 124,888 | |||||||||||
Impairment of long-lived assets | 170,300 | — | 174,300 | — | |||||||||||
Restructuring costs | (662 | ) | — | 4,845 | — | ||||||||||
Total operating expenses | 204,074 | 56,728 | 285,147 | 181,045 | |||||||||||
Loss from operations | (208,427 | ) | (82,092 | ) | (325,141 | ) | (253,174 | ) | |||||||
Interest and other expense (income), net: | |||||||||||||||
Interest expense, net | 4,399 | 58 | 11,530 | 324 | |||||||||||
Other expense, net | 158 | 118 | 439 | 259 | |||||||||||
Gain on fair value change, net | — | (226 | ) | (513 | ) | (6,511 | ) | ||||||||
Interest and other expense (income), net | 4,557 | (50 | ) | 11,456 | (5,928 | ) | |||||||||
Loss before provision for income taxes | (212,984 | ) | (82,042 | ) | (336,597 | ) | (247,246 | ) | |||||||
Provision for income taxes | 62 | 23 | 98 | 77 | |||||||||||
Net and comprehensive loss | $ | (213,046 | ) | $ | (82,065 | ) | $ | (336,695 | ) | $ | (247,323 | ) | |||
Net loss per share, basic and diluted | $ | (53.06 | ) | $ | (22.93 | ) | $ | (84.54 | ) | $ | (69.21 | ) | |||
Weighted-average shares used in calculation of net loss per share, basic and diluted | 4,015,307 | 3,579,584 | 3,982,824 | 3,573,700 | |||||||||||
Condensed Consolidated Balance Sheets
(unaudited)
(in thousands)
2023 | 2022 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 50,618 | $ | 95,858 | |||
Short-term investments | — | 102,284 | |||||
Accounts receivable, net of allowances | 42,571 | 42,407 | |||||
Current contract assets | 20,384 | 14,587 | |||||
Inventories | 16,699 | 17,373 | |||||
Short-term restricted cash | 14,000 | 1,859 | |||||
Prepaid expenses and other current assets | 14,560 | 21,851 | |||||
Total current assets | 158,832 | 296,219 | |||||
Property and equipment, net | 81,462 | 262,360 | |||||
Restricted cash | 726 | 16,448 | |||||
Right-of-use assets | 18,957 | 18,485 | |||||
Note receivable | 6,000 | 6,999 | |||||
Other assets | 25,461 | 18,515 | |||||
Total assets | $ | 291,438 | $ | 619,026 | |||
Liabilities and Stockholders’ Equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 10,232 | $ | 21,099 | |||
Accrued expenses and other current liabilities | 57,209 | 72,410 | |||||
Accrued compensation | 8,544 | 9,799 | |||||
Deferred revenue | 11,284 | 9,199 | |||||
Total current liabilities | 87,269 | 112,507 | |||||
Debt, non-current | 208,331 | 218,837 | |||||
Sponsor earn-out liability | — | 506 | |||||
Lease liabilities | 19,329 | 19,589 | |||||
Warranty liability | 26,989 | 29,337 | |||||
Other liabilities | 17,458 | 17,758 | |||||
Total liabilities | 359,376 | 398,534 | |||||
Stockholders’ equity: | |||||||
Common stock | — | — | |||||
Additional paid-in capital | 2,863,177 | 2,814,912 | |||||
Accumulated deficit | (2,931,115 | ) | (2,594,420 | ) | |||
Total stockholders’ equity | (67,938 | ) | 220,492 | ||||
Total liabilities and stockholders’ equity | $ | 291,438 | $ | 619,026 | |||
Condensed Consolidated Statements of Cash Flow
(unaudited)
(in thousands)
Nine Months Ended | |||||||
2023 | 2022 | ||||||
Cash flows from operating activities: | |||||||
Net loss | $ | (336,695 | ) | $ | (247,323 | ) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
Depreciation and amortization | 16,472 | 17,797 | |||||
Gain on fair value change, net | (513 | ) | (6,511 | ) | |||
Stock-based compensation | 32,562 | 58,835 | |||||
Non-cash interest expense | 14,126 | — | |||||
Impairment of long-lived assets | 174,300 | — | |||||
Other | 2,639 | 1,008 | |||||
Net changes in operating assets and liabilities | (42,494 | ) | (28,007 | ) | |||
Net cash used in operating activities | (139,603 | ) | (204,201 | ) | |||
Cash flows from investing activities: | |||||||
Purchases of property and equipment | (7,510 | ) | (14,396 | ) | |||
Purchases of short-term investments | (106,032 | ) | — | ||||
Maturities of short-term investments | 210,133 | — | |||||
Disbursement under loan receivable | (3,001 | ) | (5,160 | ) | |||
Net cash provided by (used in) investing activities | 93,590 | (19,556 | ) | ||||
Cash flows from financing activities: | |||||||
Payment of debt issuance costs | (228 | ) | — | ||||
Payment of other debt obligations | (735 | ) | (735 | ) | |||
Payments of obligations under finance leases | (409 | ) | (400 | ) | |||
Taxes paid related to the net share settlement of equity awards | (1,436 | ) | (3,076 | ) | |||
Net cash used in financing activities | (2,808 | ) | (4,211 | ) | |||
Net decrease in cash, cash equivalents, and restricted cash | (48,821 | ) | (227,968 | ) | |||
Cash, cash equivalents, and restricted cash, beginning of period | 114,165 | 297,543 | |||||
Cash, cash equivalents, and restricted cash, end of period | $ | 65,344 | $ | 69,575 | |||
Supplemental disclosure of cash flow information: | |||||||
Cash paid for interest | $ | 155 | $ | 55 | |||
Non-cash investing and financing activities: | |||||||
Payables and accrued liabilities related to purchases of property and equipment | $ | 265 | $ | 1,569 | |||
Right of use assets obtained in exchange for operating lease liabilities | $ | 2,624 | $ | — | |||
Common stock issued upon vesting of restricted stock units | $ | 3,513 | $ | 6,651 | |||
Common stock issued upon conversion of Convertible Notes | $ | 18,000 | $ | — | |||
Selected Financials and Reconciliation of GAAP Measures to Non-GAAP Measures
(unaudited)
(in thousands)
Three Months Ended | Nine Months Ended | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
Cost of revenue | |||||||||||||||
GAAP cost of revenue | $ | 42,573 | $ | 49,126 | $ | 124,596 | $ | 129,219 | |||||||
Stock-based compensation | (297 | ) | (418 | ) | (1,020 | ) | (1,126 | ) | |||||||
Non-GAAP cost of revenue | $ | 42,276 | $ | 48,708 | $ | 123,576 | $ | 128,093 | |||||||
Gross income (loss) | |||||||||||||||
Revenue | $ | 38,220 | $ | 23,762 | $ | 84,602 | $ | 57,090 | |||||||
GAAP gross loss | $ | (4,353 | ) | $ | (25,364 | ) | $ | (39,994 | ) | $ | (72,129 | ) | |||
Stock-based compensation | 297 | 418 | 1,020 | 1,126 | |||||||||||
Non-GAAP gross income (loss) | $ | (4,056 | ) | $ | (24,946 | ) | $ | (38,974 | ) | $ | (71,003 | ) | |||
GAAP gross loss margin | (11)% | (107)% | (47)% | (126)% | |||||||||||
Non-GAAP gross income (loss) margin | (11)% | (105)% | (46)% | (124)% | |||||||||||
Research and development expense | |||||||||||||||
GAAP research and development expense | $ | 8,918 | $ | 15,554 | $ | 31,573 | $ | 56,157 | |||||||
Stock-based compensation | (1,022 | ) | (2,032 | ) | (3,216 | ) | (3,587 | ) | |||||||
Non-GAAP research and development expense | $ | 7,896 | $ | 13,522 | $ | 28,357 | $ | 52,570 | |||||||
Selling, general, and administrative expense | |||||||||||||||
GAAP selling, general, and administrative expense | $ | 25,518 | $ | 41,174 | $ | 74,429 | $ | 124,888 | |||||||
Stock-based compensation | (9,291 | ) | (20,776 | ) | (28,326 | ) | (54,122 | ) | |||||||
Non-GAAP selling, general, and administrative expense | $ | 16,227 | $ | 20,398 | $ | 46,103 | $ | 70,766 | |||||||
Selected Financials and Reconciliation of GAAP Measures to Non-GAAP Measures (Continued)
(unaudited)
(in thousands)
Three Months Ended | Nine Months Ended | |||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||
Total operating expense | ||||||||||||||||||||
GAAP total operating expense | $ | 204,074 | $ | 56,728 | $ | 285,147 | $ | 181,045 | ||||||||||||
Impairment of long-lived assets | (170,300 | ) | — | (174,300 | ) | — | ||||||||||||||
Restructuring costs | 662 | — | (4,845 | ) | — | |||||||||||||||
Stock-based compensation | (10,313 | ) | (22,808 | ) | (31,542 | ) | (57,709 | ) | ||||||||||||
Non-GAAP total operating expense | $ | 24,123 | $ | 33,920 | $ | 74,460 | $ | 123,336 | ||||||||||||
Net loss | ||||||||||||||||||||
GAAP net loss | $ | (213,046 | ) | $ | (82,065 | ) | $ | (336,695 | ) | $ | (247,323 | ) | ||||||||
Impairment of long-lived assets | 170,300 | — | 174,300 | — | ||||||||||||||||
Restructuring costs | (662 | ) | — | 4,845 | — | |||||||||||||||
Stock-based compensation | 10,610 | 23,226 | 32,562 | 58,835 | ||||||||||||||||
Gain on fair value change, net | — | (226 | ) | (513 | ) | (6,511 | ) | |||||||||||||
Non-GAAP net loss | $ | (32,798 | ) | $ | (59,065 | ) | $ | (125,501 | ) | $ | (194,999 | ) | ||||||||
Adjusted EBITDA | ||||||||||||||||||||
GAAP loss from operations | $ | (208,427 | ) | $ | (82,092 | ) | $ | (325,141 | ) | $ | (253,174 | ) | ||||||||
Impairment of long-lived assets | 170,300 | — | 174,300 | — | ||||||||||||||||
Restructuring costs | (662 | ) | — | 4,845 | — | |||||||||||||||
Stock-based compensation | 10,610 | 23,226 | 32,562 | 58,835 | ||||||||||||||||
Non-GAAP loss from operations | (28,179 | ) | (58,866 | ) | (113,434 | ) | (194,339 | ) | ||||||||||||
Depreciation and amortization | 5,456 | 5,923 | 16,472 | 17,797 | ||||||||||||||||
Non-GAAP Adjusted EBITDA | $ | (22,723 | ) | $ | (52,943 | ) | $ | (96,962 | ) | $ | (176,542 | ) |
Source:
2023 GlobeNewswire, Inc., source