QuantumScape Corp Q4 FY2024 earnings call

Key Achievements in 2024:

• Shipped Alpha-2 samples with advanced packaging and high-loading cathodes.
• Ramped Raptor separator heat-treatment process.
• Began low-volume B0 production of QSE-5 cells with high energy density, fast charging, and safety features.
• Released Cobra separator heat-treatment equipment.
• Unveiled partnership with PowerCo for industrializing QSE-5 technology.

2025 Goals:

• Transition baseline process from Raptor to Cobra for higher-volume B1 sample production.
• Install higher-volume cell production equipment in collaboration with PowerCo.
• Ship QSE-5 B1 samples for customer testing to support launch program in 2026.
• Expand commercial engagements with two automotive OEMs and build relationships across battery value chain.

No specific breakdown of product segments with financial performance and revenue contributions provided in the transcript.

2025 Forecast:

• CapEx expected between $45 million and $75 million.
• Adjusted EBITDA loss expected between $250 million and $280 million.
• Liquidity ended 2024 at $910.8 million, extending cash runway into second half of 2028.

Risks:

• Uncertainties posed by difficulty in predicting future outcomes, as noted in forward-looking statements and SEC filings. Risks include those related to technology development, market adoption, and geopolitical factors affecting operations and partnerships.

Q: About the active discussion with two auto OEMs, do you sense more, same, or less engagement amid uncertain EV policies?

A: No reduction in engagement; customers see long-term secular growth in electrification and see us as the solution to battery-related EV adoption impediments.

Q: Thoughts on scale up location for PowerCo given IRA and Trump admin changes?

A: PowerCo has announced factories in Germany, Spain, Canada; not officially announced US locations, but will consider long-term in light of policy changes.

Q: Discussing Chinese OEMs and geopolitical landscape?

A: Haven't explicitly talked about specific Chinese OEMs; have relationships with six large OEMs covering diverse automotive landscape.

Q: Color on 2026 launch, demo vs full launch, revenue recognition?

A: B1 samples go into launch customer's demo program; cash flows may occur ahead of licensing revenue, including NRE payments, etc., with licensing revenue following successful technology transfer.