- Full year 2023 GAAP revenue of $60.5 million and Pro Forma
revenue of $112.9 million, up 12% year-over-year, beating 2023
guidance.
- Full year 2023 GAAP Net Loss of $(250.7) million and Pro Forma
Net Loss of $(185.0) million, which includes investment in R&D
for electrification and software, stock-based compensation,
impairments, transaction costs and other non-recurring items.
- Full Year 2023 Pro Forma Adjusted EBITDA of $(50.9) million,
achieving 2023 guidance.
Surf Air Mobility is providing unaudited pro forma results for
the fourth quarter and year to date period ended December 31, 2023,
which assumes the acquisition of Southern Airways closed as of the
beginning of 2022.
Surf Air Mobility Inc. (NYSE: SRFM), a leading regional air
mobility platform, today reported its fourth quarter and full year
results. Please visit the Surf Air Mobility investor relations
website at investors.surfair.com for more information and to listen
to the accompanying earnings call at 5:00 pm eastern time.
“We are pleased to have beat our revenue guidance and achieved
our Adjusted EBITDA guidance for the year. Additionally, we’ve
achieved two significant milestones: our direct listing on the NYSE
and the completion of our merger with Southern Airways. We have
also advanced our growth pillars of expanding our leading regional
airline network and developing a proprietary powertrain technology
to electrify smaller aircraft,” said Stan Little, Surf Air
Mobility’s Chief Executive Officer.
FOURTH QUARTER BUSINESS
HIGHLIGHTS
- Deepened our partnership with Palantir to develop software that
will enhance operational efficiencies, improve our customer
experience, provide back-office intelligence, and unify our sales
and financial data. Palantir has also made progress developing our
new AI-enhanced ‘crew scheduling’ application.
- Advanced our initiative to electrify the Cessna Caravan along
with our lead partner AeroTEC. We are in the final stages of vendor
selection for key components including battery and electric motor
suppliers. We continue to work with the Caravan’s avionics
manufacturer, Garmin, to integrate our powertrain with the
aircraft’s displays.
- Entered into a memorandum of understanding (“MOU”) with
Brazil’s largest airline, Azul, on the commercial deployment of
electric Cessna Caravan within Azul’s existing fleet.
- Partnered with REGENT, a manufacturer of all-electric
seagliders, to establish a base for seaglider operations in Miami
that will provide passenger transport service for South Florida,
including routes from Miami, Fort Lauderdale, Palm Beach, and the
Caribbean Islands, in addition to previously announced service in
Hawaii.
- Appointed Oliver Reeves as Surf Air Mobility’s Chief Financial
Officer, leveraging his nearly two decades of experience in
investment management, enterprise technology, and insurance.
CURRENT DEVELOPMENTS
- Signed MOUs with numerous operators of Caravan fleets in
Africa, to convert their turbine powered aircraft to electric
powertrains with our proprietary electrification technology, once
certified. The carriers include: Safarilink, Yellow Wings, Auric
Air and Z. Boskovic. This represents 13% of the total Caravan fleet
operating in Africa under MOUs, to date.
- Entered into agreements to add new service routes connecting
Purdue University to Chicago, and with the city of Williamsport,
Pennsylvania to Washington, D.C. These two new routes will be
subsidized by local and private entities.
- Signed an MOU with Electra.aero, Inc. to secure delivery
positions for 90 eSTOL Aircraft, collaborate on incorporating Surf
Air Mobility technology into joint systems, and establish a
preferred leasing relationship.
- Strengthened our technology capabilities with the addition of
an outside team with deep experience across consumer,
transportation and logistics, marketplace, and ticketing
industries, to lead the software development for Surf Air
Mobility’s consumer technology and air operations, as well as build
certain tools for third party operators as part of our
Aircraft-as-a-Service offering, in partnership with Palantir.
FOURTH QUARTER FINANCIAL
HIGHLIGHTS
- Revenue
- GAAP revenue of $26.8 million. Pro forma revenue of $27.4
million for fourth quarter 2023, compared to $27.7 million for the
same period of the prior year.
- Net Loss
- GAAP Net Loss of $(110.5) million for fourth quarter of 2023
compared to $(23.8) million for the same period of the prior year,
which includes investment in R&D for electrification and
software technology, stock-based compensation, impairments,
transaction costs and other non-recurring items.
- Pro forma net loss of $(107.4) million for fourth quarter of
2023 compared to $(19.4) million for the same period of the prior
year, which includes investment in R&D for electrification and
software technology, stock-based compensation, impairments,
transaction costs and other non-recurring items.
- Pro forma Adjusted EBITDA
- Pro forma adjusted EBITDA of $(18.4) million for fourth quarter
2023, compared to $(12.6) million for the same period of the prior
year.
FULL YEAR FINANCIAL
HIGHLIGHTS
- Revenue
- GAAP revenue of $60.5 million. Pro forma revenue of $112.9
million for full year 2023, beating 2023 guidance.
- Net Loss
- GAAP net loss of $(250.7) million for full year 2023 compared
to $(74.4) million in prior year, which includes investment in
R&D for electrification and software technology, stock-based
compensation, impairments, transaction costs and other
non-recurring items.
- Pro forma net loss of $(185.0) million for full year 2023
compared to $(91.5) million in prior year, which includes
investment in R&D for electrification and software technology,
stock-based compensation, impairments, transaction costs and other
non-recurring items.
- Pro forma Adjusted EBITDA
- Pro forma adjusted EBITDA of $(50.9) million for the full year
2023, compared to $(49.4) million for the same period of the prior
year, achieving our 2023 guidance.
FIRST QUARTER 2024 FINANCIAL
OUTLOOK
- Revenue, in the range of $28.5 million to $29.5
million.
- Pro forma adjusted EBITDA, in the range of $(17.0)
million to $(14.0) million, which excludes the expected impact of
stock-based compensation, changes in fair value of financial
instruments, and other non-recurring items.
“Looking ahead in 2024 we are focused on balancing growth with
profitability, expense reduction, and disciplined capital
allocation centered around high ROI opportunities, including
potential route expansions,” stated Surf Air Mobility Chief
Financial Officer, Oliver Reeves.
Surf Air Mobility will provide full-year 2024 guidance at its
Investor Day to be held on June 7, 2024, at the New York Stock
Exchange.
About Surf Air Mobility
Surf Air Mobility, headquartered in Los Angeles, is a pioneering
regional air mobility platform dedicated to transforming regional
air travel through electrification. As owner of the largest
commuter airline operator in the US, Surf Air Mobility partners
with commercial leaders to develop innovative powertrain technology
for smaller aircraft, facilitating the electrification of existing
fleets and the widespread adoption of electric aircraft. Surf Air
Mobility’s mission is to drive substantial cost reductions and
environmental benefits to make regional flying more accessible and
affordable. Backed by a management team with extensive expertise
spanning aviation, electrification, and consumer technology, Surf
Air Mobility is poised to advance the future of sustainable air
travel.
Earnings Webcast
Interested parties can register in advance to listen to the
fourth quarter and full year 2023 webcast here, or can find a link
on the ‘Events & Presentations’ section of our investor
relations website. A replay of the call will also be available
online for 21 days following the call.
Forward-Looking Statements
This Press Release contains forward-looking statements within
the meaning of The Private Securities Litigation Reform Act of
1995, including statements regarding the anticipated benefits of
the transaction; Surf Air Mobility’s ability to anticipate the
future needs of the air mobility market; future trends in the
aviation industry, generally; Surf Air Mobility’s future growth
strategy and growth rate and its ability to access its financings
and expand its business. Readers of this release should be aware of
the speculative nature of forward-looking statements. These
statements are based on the beliefs of Surf Air Mobility’s
management as well as assumptions made by and information currently
available to Surf Air Mobility and reflect Surf Air Mobility’s
current views concerning future events. As such, they are subject
to risks and uncertainties that could cause actual results or
events to differ materially from those expressed or implied by such
forward-looking statements. Such risks and uncertainties include,
among many others: Surf Air Mobility’s future ability to pay
contractual obligations and liquidity will depend on operating
performance, cash flow and ability to secure adequate financing;
Surf Air Mobility’s limited operating history and that Surf Air
Mobility has not yet manufactured any hybrid-electric or
fully-electric aircraft; the powertrain technology Surf Air
Mobility plans to develop does not yet exist; any accidents or
incidents involving hybrid-electric or fully-electric aircraft; the
inability to accurately forecast demand for products and manage
product inventory in an effective and efficient manner; the
dependence on third-party partners and suppliers for the components
and collaboration in Surf Air Mobility’s development of
hybrid-electric and fully-electric powertrains and its advanced air
mobility software platform, and any interruptions, disagreements or
delays with those partners and suppliers; the inability to execute
business objectives and growth strategies successfully or sustain
Surf Air Mobility’s growth; the inability of Surf Air Mobility’s
customers to pay for Surf Air Mobility’s services; the inability of
Surf Air Mobility to obtain additional financing or access the
capital markets to fund its ongoing operations on acceptable terms
and conditions; the outcome of any legal proceedings that might be
instituted against Surf Air, Southern or Surf Air Mobility; changes
in applicable laws or regulations, and the impact of the regulatory
environment and complexities with compliance related to such
environment; and other risks and uncertainties indicated in the
prospectus. These and other risks are discussed in detail in the
periodic reports that Surf Air Mobility files with the SEC, and
investors are urged to review those periodic reports and Surf Air
Mobility’s other filings with the SEC, which are accessible on the
SEC’s website at www.sec.gov, before making an investment decision.
Surf Air Mobility assumes no obligation to update its
forward-looking statements except as required by law.
Footnotes:
Use of Non-GAAP Financial Measures: Surf Air Mobility uses
Adjusted EBITDA to identify and target operational results which is
beneficial to management and investors in evaluating operational
effectiveness. Pro Forma Adjusted EBITDA is a supplemental measure
of Surf Air Mobility’s performance that is not required by, or
presented in accordance with, U.S. GAAP. Pro Forma Adjusted EBITDA
is not a measurement of Surf Air Mobility’s financial performance
under U.S. GAAP and should not be considered as an alternative to
net income (loss) or any other performance measure derived in
accordance with U.S. GAAP. Surf Air Mobility’s calculation of this
non-GAAP financial measure may differ from similarly titled
non-GAAP measures, if any, reported by other companies. This
non-GAAP financial measure should not be considered in isolation
from, or as a substitute for, financial information prepared in
accordance with U.S. GAAP.
Non-GAAP financial measures have limitations in their usefulness
to investors because they have no standardized meaning prescribed
by GAAP and are not prepared under any comprehensive set of
accounting rules or principles. In addition, non-GAAP financial
measures may be calculated differently from, and therefore may not
be directly comparable to, similarly titled measures used by other
companies.
Surf Air Mobility presents Pro Forma Adjusted EBITDA because it
considers this measure to be an important supplemental measure of
its performance and believes it is frequently used by securities
analysts, investors, and other interested parties in the evaluation
of companies in its industry. Management believes that investors’
understanding of Surf Air Mobility’s performance is enhanced by
including this non-GAAP financial measure as a reasonable basis for
comparing its ongoing results of operations.
Consolidated Balance Sheets as of December 31, 2023, and
December 31, 2022:
December 31,
2023
December 31,
2022
Assets:
Current assets:
Cash
$
1,720
$
6
Accounts receivable, net
4,965
161
Prepaid expenses and other current
assets
11,051
7,755
Total current assets
17,736
7,922
Restricted cash
711
906
Property and equipment, net
45,991
624
Intangible assets, net and other
assets
32,390
3,102
Operating lease right-of-use assets
12,818
1,143
Finance lease right-of-use assets
1,343
—
Goodwill
—
—
Total assets
$
110,989
$
13,697
Liabilities, Redeemable Convertible
Preferred Shares and Shareholders’ Deficit:
Current liabilities:
Accounts payable
$
18,854
$
12,891
Accrued expenses and other current
liabilities
59,582
14,740
Deferred revenue
19,011
7,820
Current maturities of long-term debt
5,177
—
Operating lease liabilities, current
4,104
903
Finance lease liabilities, current
215
—
SAFE notes at fair value, current
25
149
Convertible notes at fair value,
current
7,715
15,948
Due to related parties, current
25,431
4,947
Total current liabilities
$
140,114
$
57,398
Long-term debt, net of current
maturities
$
20,617
$
—
Convertible notes at fair value, long
term
—
13,148
Operating lease liabilities, long term
5,507
246
Finance lease liabilities, long term
1,137
—
SAFE notes at fair value, long term
—
24,565
Due to related parties, long term
1,673
—
Other long-term liabilities
19,426
9,762
Total liabilities
$
188,474
$
105,119
Commitments and contingencies (Note
14):
Redeemable convertible preferred shares
$0.001 par value; 0 and 263,459,277 shares authorized as of
December 31, 2023 and December 31, 2022, respectively; 0 shares
issued and outstanding as of December 31, 2023 and 229,144,283
shares issued and outstanding as of December 31, 2022,
respectively; and aggregate liquidation preference of $0 as of
December 31, 2023 and $178,608 as of December 31, 2022
$
—
$
130,667
Shareholders’ equity (deficit):
Class B-6s convertible preferred shares,
$0.001 par value; 0 authorized shares as of December 31, 2023, and
98,799,158 authorized shares as of December 31, 2022; 0 shares
issued and outstanding as of December 31, 2023 and 71,478,742
shares issued and outstanding as of December 31, 2022
$
—
$
3,414
Preferred Stock, $0.0001 par value;
50,000,000 shares authorized; 0 shares issued and outstanding at
December 31, 2023, and December 31, 2022
—
—
Common shares, $0.0001 par value;
800,000,000 and 35,803,199 shares authorized as of December 31,
2023, and December 31, 2022, respectively; 76,150,437 shares issued
and outstanding as of December 31, 2023, and 12,487,438 shares
issued and outstanding as of December 31, 2022
8
1
Additional paid-in capital
525,042
126,335
Accumulated deficit
$
(602,535
)
$
(351,839
)
Total shareholders’ deficit
$
(77,485
)
$
(222,089
)
Total liabilities, redeemable convertible
preferred shares, and shareholders’ deficit
$
110,989
$
13,697
Consolidated Statements of Operations for the Year Ended
December 31, 2023: (in thousands, except share and per share
data):
Year Ended December
31,
2023
2022
Revenue
$
60,505
$
20,274
Operating expenses:
Cost of revenue, exclusive of depreciation
and amortization
61,918
24,824
Technology and development
20,850
3,289
Sales and marketing
10,028
5,214
General and administrative
100,669
36,824
Depreciation and amortization
3,762
1,027
Impairment of goodwill
60,045
—
Total operating expenses
257,272
71,178
Operating loss
$
(196,767
)
$
(50,904
)
Other income (expense):
Changes in fair value of financial
instruments carried at fair value, net
$
(50,230
)
$
(27,711
)
Interest expense
(2,969
)
(596
)
Gain (loss) on extinguishment of debt
(326
)
5,951
Other expense
(3,708
)
(1,102
)
Total other income (expense),
net
$
(57,233
)
$
(23,458
)
Loss before income taxes
(254,000
)
(74,362
)
Income tax benefit
3,304
—
Net loss
$
(250,696
)
$
(74,362
)
Net loss per share applicable to common
shareholders, basic and diluted
$
(6.35
)
$
(5.51
)
Weighted-average number of common shares
used in net loss per share applicable to common shareholders, basic
and diluted
39,466,906
13,492,823
Unaudited Pro Forma Financial Measures; Revenue, Net Loss,
and the Reconciliation of Pro forma Net Loss to Pro forma
Adjusted EBITDA for the Year Ended December 31, 2023 and the
Year Ended December 31, 2022 (in thousands):
Year Ended December
31,
2023
2022
Revenue- Pro forma
$
112,869
$
100,546
Net Loss- Pro Forma
(184,987
)
(91,540
)
Addback:
Depreciation and amortization
8,393
2,897
Impairment of goodwill
60,045
—
Interest expense
5,083
(949
)
Income tax expense (benefit)
(225
)
(6,904
)
Stock-based compensation expense
48,252
10,447
Changes in fair value of financial
instruments
—
11,111
Transaction costs
—
22,322
Data license fees
12,500
—
Share settlement for contract
termination
—
3,175
Adjusted EBITDA- Pro Forma
(50,939
)
(49,441
)
View source
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For Press: press@surfair.com
For Investors: investors@surfair.com
Grafico Azioni Surf Air Mobility (NYSE:SRFM)
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Grafico Azioni Surf Air Mobility (NYSE:SRFM)
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