SES AI Corp Q2 FY2025 earnings call

• Achieved strong quarter with progress on product revenue development and profitability. Molecular Universe has over 30 companies trial testing the enterprise level. - Progress through 4 stages: chatbot (Molecular Universe 0), AI agent (Deep Space in Molecular Universe 0.5), physical AI (integration with physical systems like ESS, EV), and revenue machine (focus on software/service, materials, sales, EV development service, ESS). - Acquired UZ Energy to enter ESS physical AI. - Financially disciplined with $229 million liquidity, no debt, and allocated capital to AI platform enhancements, growth, and share repurchases.

In the second quarter, revenue was $3.5 million with a 74% gross margin. Revenue sources include software and service from the Molecular Universe tool platform, materials production and sales of novel electrolytes and other battery materials, sales of AI-enhanced lithium metal and high-silicon lithium-ion cells, EV development service, and ESS hardware and software solutions.

• Affirmed full-year 2025 revenue guidance of $15 million to $25 million. - Expect to grow UZ Energy's projected revenue from $10-15 million in 2025 to exponentially larger in coming years. - Allocate capital to AI platform enhancements, growth, and share repurchases.

• Risks related to forward-looking information, including uncertainties where actual results may differ from expectations, as detailed in SEC filings.

Q: Can you tell us more about UZ Energy, its genesis and how to leverage it? Also, details on other M&A opportunities?

A: UZ Energy is an early ESS company with good hardware capability. Integration with UZ allows material development from Molecular Universe, hardware integration, and data access. Looking for other M&A opportunities in areas empowered by Molecular Universe.

Q: Update on UAM and drone opportunity, revenue capacity, and software trial with 30 companies?

A: Revenue from drones and UAM has increased. Working on certifying Korea line for compliance. Current capacity is higher than current orders. For software, 30 companies are trial testing, and key is demonstrating Molecular Universe can solve problems harder than human scientists. Next version expected in Sept-Oct with more accurate cell level data.