Eve Air Mobility is an aerospace company dedicated to the development of an eVTOL (electric Vertical Takeoff and Landing) aircraft and the Urban Air Mobility (UAM) ecosystem that includes aircraft development, Service & Operations Solutions and Vector, an Urban Air Traffic Management (Urban ATM) system. Eve is pre-revenue; we do not expect meaningful revenues, if any, during the development phase of our aircraft, and we expect financial results to be mostly related to costs associated with the program’s development during this period.

Eve reported a net loss of $36.4 million in 2Q24 versus $31.4 million in 2Q23. Net loss increased due to higher Research & Development (R&D) – these are costs and activities necessary to advance in the development of our suite of products and solutions for UAM – despite a decrease in Selling, General & Administrative (SG&A) and a positive impact in the fair value of our outstanding derivatives.  R&D expenses were $36.3 million in 2Q24, versus $21.8 million in 2Q23 and were primarily driven by the Master Services Agreement (MSA) with Embraer who performs several developmental activities for Eve. These efforts continue to intensify as the development of the eVTOL progresses, including the purchase of parts, assembly of our first full-scale prototype, and continued engineering, program development and testing infrastructure expenses.

SG&A, decreased to $5.4 million in 2Q24, from $6.6 million in 2Q23, primarily driven by a combination of lower outsourced services and payroll costs – the latter reflect the forfeiture of Restricted Stock Units (RSUs) positively impacting SG&A during the quarter.  Eve also reduced Director & Officers insurance expenses after renegotiating and lengthening terms with our provider. Lastly, Eve benefitted from the c.10% depreciation of the Brazilian Real BRL vs. the USD during the quarter, as most of SG&A expenses are incurred in Brazilian currency. The reduction in SG&A is despite an increase in Eve’s headcount, as well as industrialization and other costs associated with Eve’s Brazilian eVTOL manufacturing site, located in the city of Taubaté.

The increase in R&D expenses was partly offset by a $2.1 million gain in 2Q24 related to the fair value of derivatives (due to marking to market of Eve’s private warrants), vs. a $6.8 million loss in 2Q23. Eve’s total cash used by operations and capital expenditures in 2Q24 was $31.4 million, versus $27.8 million in 2Q23. R&D expenses associated with Eve’s aircraft development were the main contributors to the higher cash consumption during the quarter.

Lastly and subsequent to 2Q24, Eve entered into subscription agreements with financial and strategic investors, including Embraer, Space Florida and Nidec – our electric-motor supplier for $95.6 million in new equity financing. The additional funding will strengthen our Balance Sheet and will help support our operations and program investments in the upcoming years. Eve’s cash, cash equivalents, financial investments and related party loan receivable was $206.5 million and total liquidity would have been $338.0 million as of June 30th, 2024.

For additional information, please access the full 2Q24 Earnings Results release, available at the Investor Relations website ir.eveairmobility.com

Webcast details

Management will discuss the results on a conference call on Tuesday, August 06, 2024 at 8:00 AM (Eastern Time). The webcast will be publicly available in the Upcoming Events section of the company website (www.eveairmobility.com).

To listen by phone, please dial 1-844-826-3033 or 1-412-317-5185. A replay of the call will be available until August 20, 2024, by dialing 1-844-512-2921 or 1-412-317-6671 and entering passcode 10190411.

Webcast access here.