View, Inc. (Nasdaq: VIEW) (“View” or the “Company”), a leader in
smart building platforms and technologies, today announced
financial results for Q3 2022.
“I am proud of the View team and what we have accomplished
together building great products and serving our customers well to
drive transformation in the real estate industry,” said Dr. Rao
Mulpuri, CEO of View. “With proven products installed in 100
million square feet of buildings and market leading customers, we
are excited about the next stage of our journey. We have in place
the manufacturing capacity, operational infrastructure, and capital
to support our growth and execute on our profitability
milestones.”
Q3 2022 ResultsQ3 2022 revenue of $24 million
represents a 26% year-over-year increase from Q3 2021, due to
growth across all product lines, including Smart Glass, Smart
Building Platform and Smart Building Technologies. Year-to-date
revenue of $57 million represents a 25% year-over-year
increase.
Q3 2022 cost of revenues of $49 million represents a 5%
year-over-year decrease from Q3 2021. The decrease in cost of
revenues was primarily driven by a decrease in new contract loss
accruals, recently implemented cost savings initiatives and
improved inventory management, partially offset by higher costs
associated with increased Smart Building Platform revenues and
higher production requirements. Year-to-date cost of revenue
declined by 6% y/y compared to the same period in 2021. Cost of
revenues continue to decrease as a percentage of revenues,
reflecting the benefit of growing revenues over the Company’s fixed
costs.
View incurred $16 million in Research and Development
(“R&D”) expenses in Q3 2022, a decrease of 57% from Q3 2021.
The decrease in R&D expenses was primarily driven by a
reduction in depreciation expense following a one-time charge in Q3
2021 of $14 million, completion of R&D projects and cost
savings initiatives.
View incurred $41 million in Selling, General and Administrative
(“SG&A”) expenses, an increase of 8% from Q3 2021, primarily
due to an increase in non-cash Employee Stock Based Compensation
expense. Other spending in SG&A was held relatively flat
compared to the year prior.
$200 million Convertible NotesOn October 27th,
View announced it raised $200 million in Convertible Senior Notes
to support the Company’s continued growth and path to
profitability. The investment was led by RXR-affiliated investment
vehicles, with participation from USAA Real Estate, Anson Funds,
and the Environmental Strategies Group of BNP Paribas Asset
Management, as well as other new and existing investors.
This investment by leading real estate developers and operators
represents an endorsement of View’s leadership position and vision
for transforming real estate into more sustainable, healthier, and
smarter infrastructure built to better serve users.
Investment Tax CreditIn August, the Inflation
Reduction Act of 2022 was signed into law and included smart
windows under Section 48 ITC, which provides a tax credit similar
to solar, wind and storage. This is a major inflection point for
the industry and is intended to accelerate deployment of smart
windows.
View Smart Windows are expected to qualify for a 30% to 50% tax
credit. The Company expects ITC to bring smart windows to cost
parity with conventional windows and be the catalyst to drive mass
adoption of smart windows.
Full Year 2022 OutlookWith continued execution
and momentum year-to-date, the Company reaffirms full year 2022
revenues in the range of $100 million to $110 million, driven by
volume growth, strong ASPs, and continued traction with Smart
Building Platform and Smart Building Technologies products.
Conference Call and Webcast DetailsView will
host a conference call to discuss its results on November 8th,
2022, at 1:30 p.m. Pacific Time / 4:30 p.m. Eastern Time. The live
webcast of the call can be accessed at the View Investor Relations
website at https://investors.view.com, along with the Company's
earnings press release.
The U.S. dial-in for the call is 1-877-524-8416 (1-412-902-1028
for non-U.S. callers). Callers should ask to join the View, Inc.
call. A replay of the conference call will be available for 1 week
after the call, while an archived version of the webcast will be
available on the View Investor Relations website for 90 days. The
U.S. dial-in for the conference call replay is 1-877-660-6853
(1-201-612-7415 for non-U.S. callers). The replay access code is
13734266.
Forward-Looking StatementsThis press release
and certain materials View files with the SEC, as well as
information included in oral statements or other written statements
made or to be made by View, other than statements of historical
fact, contain certain forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995, as
amended. These forward-looking statements are based on current
expectations, estimates, assumptions, projections, and management’s
beliefs, that are subject to change. There can be no assurance that
these forward-looking statements will be achieved; these statements
are not guarantees of future performance and are subject to certain
risks, uncertainties, and other factors, many of which are beyond
View’s control and are difficult to predict. Therefore, actual
outcomes and results may differ materially from what is expressed
or forecasted in such forward-looking statements. View’s business
is subject to a number of risks, which are described more fully in
View’s Annual Report on Form 10-K for the year ended December 31,
2021, and subsequent Quarterly Reports on Form 10-Q. View
undertakes no obligation to update forward-looking statements to
reflect events or circumstances after the date hereof.
Financial Information; Non-GAAP Financial
MeasuresThis press release contains certain financial
information and data that was not prepared in accordance with
United States generally accepted accounting principles (“GAAP”).
These non-GAAP measures, and other measures that are calculated
using such non-GAAP measures, are an addition to, and not a
substitute for or superior to, measures of financial performance
prepared in accordance with GAAP and should not be considered as an
alternative to any performance measures derived in accordance with
GAAP.
The Company presents these non-GAAP amounts because management
believes they provide useful information to management and
investors regarding certain financial and business trends relating
to View’s financial condition and results of operations, and they
assist management and investors in comparing the Company's
performance across reporting periods on a consistent basis. View’s
management uses these non-GAAP measures for trend analyses, for
purposes of determining management incentive compensation and for
budgeting and planning purposes. View believes that the use of
these non-GAAP financial measures provides an additional tool for
investors to use in evaluating operating results and trends in and
in comparing View’s financial measures with those of other similar
companies, many of which present similar non-GAAP financial
measures to investors. View’s management does not consider these
non-GAAP measures in isolation or as an alternative to financial
measures determined in accordance with GAAP.
However, there are a number of limitations related to the use of
these non-GAAP measures and their nearest GAAP equivalents. For
example, other companies may calculate non-GAAP measures
differently, or may use other measures to calculate their financial
performance, and therefore View’s non-GAAP measures may not be
directly comparable to similarly titled measures of other
companies.
Reconciliations from GAAP to non-GAAP results are included in
the financial statements contained in this release.
About ViewView is the leader in smart building
technologies that transform buildings to improve human health and
experience, reduce energy consumption and carbon emissions, and
generate additional revenue for building owners. View Smart Windows
use artificial intelligence to automatically adjust in response to
outdoor conditions, eliminating the need for blinds and increasing
access to natural light. Every View installation includes a
cloud-connected smart building platform that can easily be extended
to reimagine the occupant experience. View’s products are installed
in offices, apartments, airports, hotels, and educational
facilities. For more information, please visit: www.view.com.
For further information:
Investors: Samuel
MeehanView, Inc. IR@View.com 408-493-1358
VIEW, INC.Condensed
Consolidated Statements of Comprehensive
Loss(unaudited)(in thousands, except share and per share
data)
|
Three Months Ended September 30, |
|
Nine Months Ended |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Revenue |
$ |
23,762 |
|
|
$ |
18,884 |
|
|
$ |
57,090 |
|
|
$ |
45,579 |
|
Costs and expenses: |
|
|
|
|
|
|
|
Cost of revenue |
|
49,126 |
|
|
|
51,828 |
|
|
|
129,219 |
|
|
|
137,617 |
|
Research and development |
|
15,554 |
|
|
|
36,314 |
|
|
|
56,157 |
|
|
|
73,924 |
|
Selling, general, and administrative |
|
41,174 |
|
|
|
38,210 |
|
|
|
124,888 |
|
|
|
94,543 |
|
Total costs and expenses |
|
105,854 |
|
|
|
126,352 |
|
|
|
310,264 |
|
|
|
306,084 |
|
Loss from operations |
|
(82,092 |
) |
|
|
(107,468 |
) |
|
|
(253,174 |
) |
|
|
(260,505 |
) |
Interest and other expense
(income), net |
|
|
|
|
|
|
|
Interest expense, net |
|
58 |
|
|
|
287 |
|
|
|
324 |
|
|
|
5,906 |
|
Other expense (income), net |
|
118 |
|
|
|
(100 |
) |
|
|
259 |
|
|
|
6,320 |
|
Gain on fair value change, net |
|
(226 |
) |
|
|
(13,078 |
) |
|
|
(6,511 |
) |
|
|
(18,426 |
) |
Loss on extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
10,018 |
|
Interest and other (income) expense, net |
|
(50 |
) |
|
|
(12,891 |
) |
|
|
(5,928 |
) |
|
|
3,818 |
|
Loss before provision
(benefit) for income taxes |
|
(82,042 |
) |
|
|
(94,577 |
) |
|
|
(247,246 |
) |
|
|
(264,323 |
) |
Provision (benefit) for income
taxes |
|
23 |
|
|
|
(425 |
) |
|
|
77 |
|
|
|
(416 |
) |
Net and comprehensive
loss |
$ |
(82,065 |
) |
|
$ |
(94,152 |
) |
|
$ |
(247,323 |
) |
|
$ |
(263,907 |
) |
|
|
|
|
|
|
|
|
Net loss per share, basic and
diluted |
$ |
(0.38 |
) |
|
$ |
(0.44 |
) |
|
$ |
(1.15 |
) |
|
$ |
(1.64 |
) |
Weighted-average shares used in calculation of net loss per share,
basic and diluted |
|
214,775,043 |
|
|
|
212,154,820 |
|
|
|
214,422,143 |
|
|
|
160,497,517 |
|
VIEW, INC.Condensed
Consolidated Balance Sheets(unaudited)(in thousands)
|
September 30,2022 |
|
December 31,2021 |
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
51,272 |
|
|
$ |
281,081 |
|
Accounts receivable, net of allowances |
|
23,934 |
|
|
|
30,605 |
|
Inventories |
|
17,852 |
|
|
|
10,267 |
|
Prepaid expenses and other current assets |
|
34,529 |
|
|
|
21,579 |
|
Total current assets |
|
127,587 |
|
|
|
343,532 |
|
Property and equipment,
net |
|
262,549 |
|
|
|
268,401 |
|
Restricted cash |
|
16,444 |
|
|
|
16,462 |
|
Right-of-use assets |
|
19,167 |
|
|
|
21,178 |
|
Other assets |
|
27,186 |
|
|
|
29,493 |
|
Total assets |
$ |
452,933 |
|
|
$ |
679,066 |
|
Liabilities and
Stockholders’ Equity |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
15,232 |
|
|
$ |
24,186 |
|
Accrued expenses and other current liabilities |
|
54,782 |
|
|
|
59,456 |
|
Accrued compensation |
|
11,430 |
|
|
|
9,508 |
|
Deferred revenue |
|
7,677 |
|
|
|
11,460 |
|
Total current liabilities |
|
89,121 |
|
|
|
104,610 |
|
Debt, non-current |
|
13,225 |
|
|
|
13,960 |
|
Sponsor earn-out
liability |
|
1,260 |
|
|
|
7,624 |
|
Lease liabilities |
|
20,485 |
|
|
|
22,997 |
|
Other liabilities |
|
41,068 |
|
|
|
50,537 |
|
Total liabilities |
|
165,159 |
|
|
|
199,728 |
|
Stockholders’ equity: |
|
|
|
Common stock |
|
22 |
|
|
|
22 |
|
Additional paid-in capital |
|
2,792,406 |
|
|
|
2,736,647 |
|
Accumulated deficit |
|
(2,504,654 |
) |
|
|
(2,257,331 |
) |
Total stockholders’ equity |
|
287,774 |
|
|
|
479,338 |
|
Total liabilities and stockholders’ equity |
$ |
452,933 |
|
|
$ |
679,066 |
|
VIEW, INC.Condensed
Consolidated Statements of Cash Flow(unaudited)(in
thousands)
|
Nine Months Ended September 30, |
|
|
2022 |
|
|
|
2021 |
|
Cash flows from operating
activities: |
|
|
|
Net loss |
$ |
(247,323 |
) |
|
$ |
(263,907 |
) |
Adjustments to reconcile net loss
to net cash used in operating activities: |
|
|
|
Depreciation and amortization |
|
17,797 |
|
|
|
35,200 |
|
Loss on extinguishment of debt |
|
— |
|
|
|
10,018 |
|
Gain on fair value change, net |
|
(6,511 |
) |
|
|
(18,426 |
) |
Stock-based compensation |
|
58,835 |
|
|
|
55,207 |
|
Other |
|
1,008 |
|
|
|
1,524 |
|
Net changes in operating assets and liabilities |
|
(28,007 |
) |
|
|
(8,360 |
) |
Net cash used in operating
activities |
|
(204,201 |
) |
|
|
(188,744 |
) |
Cash flows from investing
activities: |
|
|
|
Purchases of property and equipment |
|
(14,396 |
) |
|
|
(15,419 |
) |
Disbursement under loan receivable |
|
(5,160 |
) |
|
|
— |
|
Acquisition, net of cash acquired |
|
— |
|
|
|
(4,938 |
) |
Net cash used in investing
activities |
|
(19,556 |
) |
|
|
(20,357 |
) |
Cash flows from financing
activities: |
|
|
|
Repayment of revolving debt facility |
|
— |
|
|
|
(257,454 |
) |
Repayment of other debt obligations |
|
(735 |
) |
|
|
— |
|
Payments of obligations under finance leases |
|
(400 |
) |
|
|
(520 |
) |
Proceeds from issuance of common stock upon exercise of stock
options |
|
— |
|
|
|
403 |
|
Proceeds from reverse recapitalization and PIPE financing |
|
— |
|
|
|
815,184 |
|
Payment of transaction costs related to reverse
recapitalization |
|
— |
|
|
|
(41,655 |
) |
Taxes paid related to the net share settlement of equity
awards |
|
(3,076 |
) |
|
|
— |
|
Net cash (used in) provided by financing
activities |
|
(4,211 |
) |
|
|
515,958 |
|
Net (decrease) increase in cash,
cash equivalents, and restricted cash |
|
(227,968 |
) |
|
|
306,857 |
|
Cash, cash equivalents, and
restricted cash, beginning of period |
|
297,543 |
|
|
|
74,693 |
|
Cash, cash equivalents,
and restricted cash, end of period |
$ |
69,575 |
|
|
$ |
381,550 |
|
Supplemental disclosure
of cash flow information: |
|
|
|
Cash paid for interest |
$ |
55 |
|
|
$ |
19,366 |
|
Non-cash investing
and financing activities: |
|
|
|
Payables and accrued liabilities
related to purchases of property and equipment |
$ |
1,569 |
|
|
$ |
2,749 |
|
Conversion of redeemable
convertible preferred stock to common stock |
$ |
— |
|
|
$ |
1,812,678 |
|
Conversion of redeemable
convertible preferred stock warrants to common stock warrants |
$ |
— |
|
|
$ |
7,267 |
|
Common stock issued in exchange
for services associated with the reverse recapitalization |
$ |
— |
|
|
$ |
7,500 |
|
Common stock issued upon vesting
of restricted stock units |
$ |
6,651 |
|
|
$ |
539 |
|
VIEW, INC.Selected
Financials and Reconciliation of GAAP Measures
to Non-GAAP Measures(unaudited)(in
thousands)
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Revenue |
|
|
|
|
|
|
|
Revenue |
$ |
23,762 |
|
|
$ |
18,884 |
|
|
$ |
57,090 |
|
|
$ |
45,579 |
|
|
|
|
|
|
|
|
|
Cost of
revenue |
|
|
|
|
|
|
|
GAAP cost of revenue |
$ |
49,126 |
|
|
$ |
51,828 |
|
|
$ |
129,219 |
|
|
$ |
137,617 |
|
Stock-based compensation |
|
(418 |
) |
|
|
(1,286 |
) |
|
|
(1,126 |
) |
|
|
(3,461 |
) |
Non-GAAP cost of
revenue |
$ |
48,708 |
|
|
$ |
50,542 |
|
|
$ |
128,093 |
|
|
$ |
134,156 |
|
|
|
|
|
|
|
|
|
Research and
development expense |
|
|
|
|
|
|
|
GAAP Research and development
expense |
$ |
15,554 |
|
|
$ |
36,314 |
|
|
$ |
56,157 |
|
|
$ |
73,924 |
|
Stock-based compensation |
|
(2,032 |
) |
|
|
(2,670 |
) |
|
|
(3,587 |
) |
|
|
(6,213 |
) |
Non-GAAP research and
development expense |
$ |
13,522 |
|
|
$ |
33,644 |
|
|
$ |
52,570 |
|
|
$ |
67,711 |
|
|
|
|
|
|
|
|
|
Selling, general, and
administrative expense |
|
|
|
|
|
|
|
GAAP selling, general, and
administrative expense |
$ |
41,174 |
|
|
$ |
38,210 |
|
|
$ |
124,888 |
|
|
$ |
94,543 |
|
Stock-based compensation |
|
(20,776 |
) |
|
|
(18,514 |
) |
|
|
(54,122 |
) |
|
|
(45,533 |
) |
Non-GAAP selling,
general, and administrative expense |
$ |
20,398 |
|
|
$ |
19,696 |
|
|
$ |
70,766 |
|
|
$ |
49,010 |
|
|
|
|
|
|
|
|
|
Net loss |
|
|
|
|
|
|
|
GAAP net loss |
$ |
(82,065 |
) |
|
$ |
(94,152 |
) |
|
$ |
(247,323 |
) |
|
$ |
(263,907 |
) |
Stock-based compensation |
|
23,226 |
|
|
|
22,470 |
|
|
|
58,835 |
|
|
|
55,207 |
|
Gain on fair value change, net |
|
(226 |
) |
|
|
(13,078 |
) |
|
|
(6,511 |
) |
|
|
(18,426 |
) |
Loss on extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
10,018 |
|
Non-GAAP net loss |
$ |
(59,065 |
) |
|
$ |
(84,760 |
) |
|
$ |
(194,999 |
) |
|
$ |
(217,108 |
) |
|
|
|
|
|
|
|
|
Adjusted
EBITDA |
|
|
|
|
|
|
|
GAAP loss from operations |
$ |
(82,092 |
) |
|
$ |
(107,468 |
) |
|
$ |
(253,174 |
) |
|
$ |
(260,505 |
) |
Stock-based compensation |
|
23,226 |
|
|
|
22,470 |
|
|
|
58,835 |
|
|
|
55,207 |
|
Non-GAAP loss from
operations |
|
(58,866 |
) |
|
|
(84,998 |
) |
|
|
(194,339 |
) |
|
|
(205,298 |
) |
Depreciation and amortization |
|
5,923 |
|
|
|
21,180 |
|
|
|
17,797 |
|
|
|
35,200 |
|
Adjusted EBITDA |
$ |
(52,943 |
) |
|
$ |
(63,818 |
) |
|
$ |
(176,542 |
) |
|
$ |
(170,098 |
) |
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