Archer Aviation (NYSE: ACHR) reported its second-quarter results on Monday, and the two numbers that matter most sit at opposite ends of the release. The air taxi maker expects an adjusted EBITDA loss of $170 million to $200 million for the third quarter. And it closed out June holding $1.56 billion in cash, cash equivalents, and short-term investments.
Set one number against the other and the arithmetic is simple: At the top of that guidance, Archer's money covers roughly two more years of losses. What has to happen inside them? This Rare Signal Is Flashing Again.
In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » After all, this is a company still almost entirely ahead of its revenue.
Second-quarter sales were $5 million, mostly from operating Hawthorne Airport in Los Angeles, against a net loss of $263 million. None of that is surprising for a business building an aircraft program and a defense platform at once. But it does make the balance sheet the number to watch.
As of this writing, shares sit near $6.60 after sliding 5% on Friday. Adjusted EBITDA (a non-GAAP measure of earnings before interest, taxes, depreciation, and amortization, with further adjustments that exclude items like stock-based compensation) is the figure Archer guides on. A year ago, the quarterly loss on that basis was $118.7 million.
This year's first quarter came in at $172.5 million, and the second at $177.1 million. And the new guidance brackets that number rather than shrinking it. Total operating expenses rose 61% year over year to $284 million.
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