QuantumScape Corp (QS, Financial) released its Q3 2023 earnings report on October 25, 2023, highlighting significant progress in prototype testing, customer engagement, product development, and manufacturing scale-up. The company's A0 prototype cell achieved over 1,000 full cycle equivalents with over 95% discharge energy retention in one prospective customer’s battery testing labs. This result sets a new high-water mark for lithium-metal battery performance.
Customer Engagement and Product Development
QS is focusing on the development of QSE-5, its first commercial product, designed to have ~5 amp-hours (Ah) of capacity. The company is collaborating closely with a prospective launch customer in the automotive sector for QSE-5. Beyond automotive, QS remains engaged with prospective customers in the consumer electronics sector, and in Q3, entered into a technology evaluation agreement with a leading global consumer electronics player.
Manufacturing Scale-Up and Financial Outlook
In Q3, QS began process qualification of Raptor equipment on schedule. The company also took delivery, installed, and commissioned key pieces of equipment related to process automation. For the third quarter, capital expenditures were $18M. GAAP operating expenses were $121M. Cash operating expenses, defined as operating expenses less stock-based compensation and depreciation, were $63.5M. QS ended Q3 with over $1.1B in liquidity and forecasts that its cash runway will extend into 2026.
Strategic Outlook
QS's strategic focus for 2023 is to transition from prototype to product. The company's key milestones are all aimed at advancing product development to build a sufficient level of technical and manufacturing maturity to enable initial production of QSE-5. QS is also taking steps to strengthen its long-term strategic position, including fortifying its balance sheet, extending its forecasted cash runway into 2026, and securing funding for pivotal development and deployment milestones.
Financial Statements
The report also includes the company's Condensed Consolidated Balance Sheets, Statements of Operations and Comprehensive Loss, and Statements of Cash Flows. QS encourages investors to read more on its financial information, business outlook, and risk factors in its quarterly and annual SEC filings on its investor relations website.
Explore the complete 8-K earnings release (here) from QuantumScape Corp for further details.
