SES AI Corp Q3 FY2024 earnings call

• Early commercial revenue in urban air mobility and drones: UAN lines completed site acceptance tests, won cell supply agreements including with SoftBank, converted EV A-sample lines to UAM lines.
• B-samples passed EV safety test: 100 mPOWER lithium metal B-sample cells successfully passed GB38031 2020, a major milestone towards C-samples and start of production.
• AI accelerated battery material discovery: Established electrolyte foundry, partnered with NVIDIA, built world's largest molecular property database, expects revenue contracts later this year.
• AI for manufacturing and safety: UAM lines have AI for manufacturing installed, AI for safety embedded in cells with 95% prediction accuracy, 100% with integration.

No detailed financial performance by product segment provided in the transcript.

• Updated full year 2024 guidance: Total cash usage expected $80 million to $95 million (down from $100 million to $120 million), cash usage from operations $70 million to $80 million (down from $85 million to $95 million), capital expenditures $10 million to $15 million (down from $15 million to $25 million).
• Expect strong balance sheet to provide liquidity well into 2028.
• Anticipate around $7 million in the fourth quarter from milestone payments and down payments.

Risks and uncertainties detailed in latest earnings release and SEC filings, including those that could materially differ results from expectations.

Q: Shawn Severson asks about revenue mechanism for AI in 4Q.

A: Qichao Hu explains combination of subscription and product revenue.

Q: Shawn Severson asks about growth of AI revenue, market entry.

A: Qichao Hu talks about 3 OEMs, electrolyte companies, ongoing projects.

Q: Winnie Dong asks about UAM revenue potential, SoftBank agreement.

A: Jing Nealis says project kicks off in Nov, continuing to first half next year, AI solution revenue expected in next few weeks.

Q: Winnie Dong asks about cell data sharing for AI model.

A: Qichao Hu says electrolyte data is computed in-house, manufacturing data from OEM partners.

Q: Shawn Severson asks about UAM commercialization update.

A: Qichao Hu says UAM market growing fast, 30 mPOWER cell tailored for UAM.

Q: Kyle Pilkington asks about cycle life for EV OEMs.

A: Qichao Hu talks about new molecule improving cycle life by 20%, AI for safety and charging protocols.