Financial Highlights
- Restructured the company's operations with the aim to better
align capital spending with overall industry readiness and incurred
charges of $10.4 million.
- Reported Loss from Operations of $178.0
million and AEBITDA loss of $134.4
million for the six months ended June
30, 2023.
- Held $835.7 million of cash,
equivalents, and investments as of June 30,
2023.
SAN
DIEGO, Sept. 27, 2023 /PRNewswire/ -- TuSimple
(Nasdaq: TSP) today reported results for the first and second
quarters of 2023. TuSimple's quarterly financial results are
available in the company's quarterly reports on Form 10-Q filed
with the Securities and Exchange Commission and on the company's
investor relations website. For additional information and to view
the company's latest investor presentation, please
visit ir.tusimple.com.
"TuSimple continues to advance its technology with regular
testing and validation of our autonomous vehicle systems through
simulation and on-road testing in the U.S., China, and Japan," said Cheng Lu, CEO at TuSimple. "We
continue to expand our strong patent portfolio while navigating
significant change within the industry landscape and within
TuSimple. We are seeing positive results from the previously
announced restructurings in the U.S. in the form of more efficient
operations and increased collaboration amongst the technology team.
For the remainder of the year, we plan to remain focused on the
development and testing of our systems to expand safety, increase
reliability, and improve cost-effectiveness. We look forward to
sharing our progress on our third quarter 2023 earnings conference
call."
Financial Update
Select Financial
Data ($ in
millions)
|
Q1
2023
|
Q2
2023
|
Q2 2023 vs.
Q1 2023 Fav/(Unfav)
|
H1
2022
|
H1
2023
|
H1 2023 vs.
H1 2022 Fav/(Unfav)
|
Gross loss
|
(0.3)
|
(0.2)
|
0.1
|
(5.0)
|
(0.5)
|
4.5
|
Research and
development ("R&D") expense
|
(61.6)
|
(58.5)
|
3.1
|
(163.7)
|
(120.1)
|
43.6
|
Selling, general and
administrative ("SG&A") expense
|
(28.7)
|
(28.7)
|
0.0
|
(54.2)
|
(57.4)
|
(3.2)
|
Stock-based
compensation expense
(SBC: included within R&D and SG&A expenses)
|
(16.8)
|
(11.0)
|
5.8
|
(52.7)
|
(27.8)
|
24.9
|
R&D
|
(12.1)
|
(6.3)
|
5.8
|
(39.9)
|
(18.4)
|
21.5
|
SG&A
|
(4.7)
|
(4.7)
|
0.0
|
(12.8)
|
(9.4)
|
3.4
|
Loss from
operations
|
(90.6)
|
(87.4)
|
3.2
|
(222.9)
|
(178.0)
|
44.9
|
AEBITDA
loss[1]
|
(69.5)
|
(64.9)
|
4.6
|
(162.9)
|
(134.4)
|
28.5
|
U.S.
|
(48.6)
|
(42.0)
|
6.6
|
(123.9)
|
(90.6)
|
33.3
|
APAC
|
(20.9)
|
(22.9)
|
(2.0)
|
(39.0)
|
(43.8)
|
(4.8)
|
Interest
income
|
9.9
|
9.7
|
(0.2)
|
2.4
|
19.6
|
17.2
|
Cash, equivalents
and investments at end of period
|
909.0
|
835.7
|
(73.3)
|
1,157.9
|
835.7
|
(322.2)
|
|
|
|
|
|
|
|
|
|
|
|
|
1 AEBITDA loss is comprised of loss
from operations determined under GAAP minus depreciation and
amortization, finance lease interest expense allocated to cost of
revenue from truck leases, tax, and adjusted to exclude non-cash
expense stock-based compensation and restructuring expenses,
including severance and impairment losses. Reconciliations of
AEBITDA loss to the most directly comparable GAAP measures are
provided in the supplemental information of this
release.
|
Gross loss
For the six months ended June 30,
2023 ("H1 2023"), gross loss was $0.5
million, down 90% versus the first half of 2022 ("H1 2022").
This reduction relates to the previously announced pausing of
freight revenue operations in TuSimple's U.S. segment.
Restructuring expenses
In December 2022 and May 2023, TuSimple announced restructuring plans
to improve its cost structure, which included a reduction of the
company's global workforce and asset impairments. While a majority
of the plans' aggregate restructuring charges were recorded in the
fourth quarter 2022, a significant portion of these restructuring
plans were deployed in H1 2023. In connection with these plans, the
company incurred charges in Q1 2023 and Q2 2023 of $2.7 million and $7.8
million, respectively and recorded in R&D and SG&A
expenses as follows: (a) Q1 2023 - all $2.7
million recorded in R&D; and (b) Q2 2023 - $6.1 million recorded in R&D and $1.7 million recorded in SG&A.
R&D expense
The company incurred $120.1
million in R&D expense in H1 2023, down 27% versus H1
2022. Q2 2023 R&D expense amounted to $58.5 million, down 5% sequentially. These
decreases were mainly driven by a decrease in employee compensation
costs, including stock-based compensation ("SBC"), and R&D
fleet operating costs as a result of the restructuring plans,
partly offset by the restructuring charges mentioned
above.
SG&A expense
H1 2023 SG&A expense was $57.4
million, up 6% versus H1 2022, and Q2 2023 SG&A expense
was $28.7 million, flat sequentially.
The performance was due primarily to increased legal and
professional services costs in connection with ongoing litigation
and investigations and the restructuring events mentioned above,
partially offset by lower employee compensation costs, including
SBC, from workforce reductions.
SBC expense (included within R&D and SG&A
expenses)
H1 2023 SBC expense was $27.8
million, down 47% versus H1 2022. Q2 2023 SBC expense was
$11.0 million, down 35% sequentially.
These decreases were primarily driven by lower headcount, a
reversal of SBC expense (i.e., a benefit) associated with the
forfeiture of equity awards for employees that were impacted by the
restructuring events mentioned above and a decrease in the market
price of our stock versus the prior year.
Cash & Investment position
TuSimple held $835.7 million of
cash, cash equivalents, and short-term investments as of
June 30, 2023. Interest income
for H1 2023 was $19.6 million, up
over 700% versus H1 2022 as a result of higher yield performance on
the company's cash and investments. Q2 2023 interest income of
$9.7 million was down 2% sequentially
from lower investment balances.
AEBITDA loss
TuSimple's AEBITDA loss for H1 2023 was $134.4 million, down $28.5
million versus H1 2022. For Q2 2023, AEBITDA loss was
$64.9 million, down $4.6 million sequentially. These trends are the
net effect of TuSimple's segment performance as follows:
- U.S.: H1 2023 AEBITDA loss for the U.S. was $90.6 million, down $33.3
million versus H1 2022. Q2 2023 AEBITDA loss for the segment
was $42.0 million, down $6.6 million sequentially. The segment's
performance was mainly driven by lower employee compensation costs,
net of higher legal costs.
- APAC: H1 2023 AEBITDA loss for APAC was $43.8 million, up $4.8
million versus H1 2022. Q2 2023 AEBITDA loss was
$22.9 million, up $2.0 million sequentially. These trends are
primarily due to increased R&D expenses to expand R&D
operations in China and
Japan to further develop L4
capabilities in the region.
About TuSimple
TuSimple is a global autonomous driving technology company
headquartered in San Diego,
California, with operations in the
United States (the "U.S.") and in the Asia-Pacific region ("APAC"). Founded in 2015,
TuSimple is working to develop a commercial-ready, fully autonomous
(SAE Level 4) driving solution for long-haul heavy-duty trucks.
TuSimple aims to transform the $4
trillion global truck freight industry through the company's
leading AI technology, which is designed to make it possible for
trucks to drive safely, autonomously, operate nearly continuously,
and reduce fuel consumption by 10%+ relative to manually driven
trucks. Global achievements include the world's first fully
autonomous, 'driver-out' semi-truck run on open public roads in the
U.S. and China, and development of
the world's first Autonomous Freight Network. Visit us at
www.tusimple.com.
Disclaimer
This press release and any accompanying documents contain
forward looking statements. All statements other than statements of
historical fact contained in this press release, including
statements as to future results of operations and financial
position, planned products and services, business strategy and
plans, launch dates of products or services, the trajectory of our
Driver Out Pilot Program, our timeline to commercialization,
expected safety benefits of our autonomous semi trucks, objectives
of management for future operations of TuSimple Holdings Inc. and
its subsidiaries (the "Company", "we", "our," and "us"), market
size and growth opportunities, competitive position and
technological, and market trends, are forward looking statements.
Forward looking statements are inherently subject to risks and
uncertainties, some of which cannot be predicted or quantified. In
some cases, you can identify forward looking statements by terms
such as "will", "expect," "plan," "anticipate," "intend," "target,"
"project," "predict," "potential," "explore," or "continue" or the
negative of these terms or other similar words. The Company has
based these forward looking statements largely on its current
expectations and assumptions and on information available as of the
date of this letter. The Company assumes no obligation to update
any forward looking statements after the date of this letter,
except as required by law.
The forward looking statements contained in this press release
and the accompanying documents are subject to known and unknown
risks, uncertainties, assumptions, and other factors that may cause
actual results or outcomes to be materially different from any
future results or outcomes expressed or implied by the forward
looking statements. These risks, uncertainties, assumptions, and
other factors include, but are not limited to, those related to the
Company's ability to regain compliance with Nasdaq listing
standards, the Company's restructuring plan including potential
cost-savings, autonomous driving being an emerging technology, the
development of the Company's technologies and products, the
Company's limited operating history in a new market, the
regulations governing autonomous vehicles, changes in the Company's
board of directors and senior management, the Company's dependence
on its senior management team, the Company's reliance on
third-party suppliers, the Company's potential product liability or
warranty claims, the protection of the Company's intellectual
property, the Company's involvement in securities class action
litigation and in government or regulatory investigations,
inquiries, and actions, and the Company's plan to seek strategic
alternatives for its U.S. business. Moreover, the Company operates
in a competitive and rapidly changing environment, and new risks
may emerge from time to time. You should not put undue reliance on
any forward looking statements. Forward looking statements should
not be read as a guarantee of future performance or results and
will not necessarily be accurate indications of the times at, or
by, which such performance or results will be achieved, if at all.
It is not possible for the Company to predict all risks, nor can
the Company assess the impact of all factors on its business or the
markets in which it operates or the extent to which any factor, or
combination of factors, may cause actual results or outcomes to
differ materially from those contained in any forward looking
statements the Company may make.
You should carefully consider the foregoing factors and the
other risks and uncertainties described under the caption "Risk
Factors'' in our annual report on Form 10-K for the year ended
December 31, 2022. These SEC filings
identify and address other important risks and uncertainties that
could cause actual events and results to differ materially from
those contained in the forward looking statements. This press
release also contains estimates, forecasts, and other statistical
data relating to market size and growth and other industry data.
These data involve several assumptions and limitations, and you are
cautioned not to give undue weight to such estimates. The Company
has not independently verified the statistical and other industry
data generated by independent parties and contained in this press
release and, accordingly, it cannot guarantee their accuracy or
completeness. In addition, assumptions and estimates of the
Company's future performance and the future performance of the
markets in which the Company competes are necessarily subject to a
high degree of uncertainty and risk due to a variety of factors.
These and other factors could cause results or outcomes to differ
materially from those expressed in the estimates.
Financial Statements and Reconciliations of GAAP to Non-GAAP
metrics
See accompanying supplemental information.
TuSimple Investor Relations Contact: Ryan Amerman, ryan.amerman@tusimple.ai
TuSimple Media Contact: TuSimple PR Team, pr@tusimple.ai
TuSimple
|
|
|
|
Consolidated Balance
Sheets
|
|
|
|
|
|
|
|
(in thousands,
except share data)
|
December
31,
|
|
June
30,
|
(unaudited)
|
2022
|
2023
|
|
|
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
615,386
|
|
$
314,711
|
Short-term
investments
|
377,312
|
|
519,230
|
Accounts receivable,
net
|
1,377
|
|
91
|
Prepaid expenses and
other current assets
|
13,477
|
|
15,695
|
Total current
assets
|
1,007,552
|
|
849,727
|
Property and equipment,
net
|
17,083
|
|
13,393
|
Operating lease
right-of-use assets
|
44,952
|
|
41,686
|
Other assets
|
4,692
|
|
4,819
|
Total assets
|
$
1,074,279
|
|
$
909,625
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
9,855
|
|
$
5,838
|
Amounts due to joint
development partners
|
5,753
|
|
3,176
|
Accrued expenses and
other current liabilities
|
48,260
|
|
31,093
|
Short-term
debt
|
1,645
|
|
1,659
|
Operating lease
liabilities, current
|
6,007
|
|
6,226
|
Total current
liabilities
|
71,520
|
|
47,992
|
Operating lease
liabilities, noncurrent
|
42,169
|
|
38,628
|
Long-term
debt
|
3,668
|
|
2,849
|
Other
liabilities
|
2,441
|
|
11
|
Total
liabilities
|
119,798
|
|
89,480
|
Commitments and
contingencies
|
|
|
|
Stockholders'
equity:
|
|
|
|
Preferred
stock
|
—
|
|
—
|
Common stock
|
22
|
|
22
|
Additional
paid-in-capital
|
2,567,723
|
|
2,595,517
|
Accumulated other
comprehensive loss
|
(3,559)
|
|
(6,438)
|
Accumulated
deficit
|
(1,609,705)
|
|
(1,768,956)
|
Total stockholders'
equity
|
954,481
|
|
820,145
|
Total liabilities and
stockholders' equity
|
$
1,074,279
|
|
$
909,625
|
TuSimple
|
|
|
|
Consolidated
Statements of Operations
|
|
|
|
|
|
|
|
(in thousands,
except share and per share data)
|
Six Months Ended
June 30,
|
(unaudited)
|
2022
|
|
2023
|
Revenue
|
$
4,858
|
|
$
307
|
Cost of
revenue
|
9,856
|
|
754
|
Gross loss
|
(4,998)
|
|
(447)
|
Operating
expenses:
|
|
|
|
Research and
development
|
163,677
|
|
120,108
|
Selling, general and
administrative
|
54,232
|
|
57,422
|
Total operating
expenses
|
217,909
|
|
177,530
|
Loss from
operations
|
(222,907)
|
|
(177,977)
|
Interest
income
|
2,367
|
|
19,624
|
Other income (expense),
net
|
42
|
|
(898)
|
Loss before provision
for income taxes
|
(220,498)
|
|
(159,251)
|
Provision for income
taxes
|
—
|
|
—
|
Net loss
|
$
(220,498)
|
|
$
(159,251)
|
Net loss per share,
basic and diluted
|
$
(0.99)
|
|
$
(0.70)
|
Weighted-average shares
used in computing net loss per share, basic and diluted
|
223,159,618
|
|
227,202,197
|
TuSimple
|
|
|
|
Consolidated
Statements of Operations
|
|
|
|
|
|
|
|
(in thousands,
except share and per share data)
|
Three Months Ended
March 31,
|
(unaudited)
|
2022
|
|
2023
|
Revenue
|
$
2,264
|
|
$
215
|
Cost of
revenue
|
4,089
|
|
508
|
Gross loss
|
(1,825)
|
|
(293)
|
Operating
expenses:
|
|
|
|
Research and
development
|
78,158
|
|
61,602
|
Selling, general and
administrative
|
32,215
|
|
28,687
|
Total operating
expenses
|
110,373
|
|
90,289
|
Loss from
operations
|
(112,198)
|
|
(90,582)
|
Interest
income
|
460
|
|
9,877
|
Other income (expense),
net
|
(165)
|
|
(507)
|
Loss before provision
for income taxes
|
(111,903)
|
|
(81,212)
|
Provision for income
taxes
|
—
|
|
—
|
Net loss
|
$
(111,903)
|
|
$
(81,212)
|
Net loss per share,
basic and diluted
|
$
(0.50)
|
|
$
(0.36)
|
Weighted-average shares
used in computing net loss per share, basic and diluted
|
222,526,454
|
|
226,405,466
|
TuSimple
|
|
|
|
Consolidated
Statements of Operations
|
|
|
|
|
|
|
|
(in thousands,
except share and per share data)
|
Three Months Ended
June 30,
|
(unaudited)
|
2022
|
|
2023
|
Revenue
|
$
2,594
|
|
$
92
|
Cost of
revenue
|
5,767
|
|
246
|
Gross loss
|
(3,173)
|
|
(154)
|
Operating
expenses:
|
|
|
|
Research and
development
|
85,519
|
|
58,506
|
Selling, general and
administrative
|
22,017
|
|
28,735
|
Total operating
expenses
|
107,536
|
|
87,241
|
Loss from
operations
|
(110,709)
|
|
(87,395)
|
Interest
income
|
1,907
|
|
9,747
|
Other income (expense),
net
|
207
|
|
(391)
|
Loss before provision
for income taxes
|
(108,595)
|
|
(78,039)
|
Provision for income
taxes
|
—
|
|
—
|
Net loss
|
$
(108,595)
|
|
$
(78,039)
|
Net loss per share,
basic and diluted
|
$
(0.49)
|
|
$
(0.34)
|
Weighted-average shares
used in computing net loss per share, basic and diluted
|
223,785,825
|
|
227,989,816
|
TuSimple
|
|
|
|
Consolidated
Statements of Cash Flows
|
|
|
|
|
|
|
|
(in
thousands)
|
Six Months Ended
June 30,
|
(unaudited)
|
2022
|
|
2023
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
Net loss
|
$
(220,498)
|
|
$
(159,251)
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
Stock-based
compensation
|
52,678
|
|
27,764
|
Depreciation and
amortization
|
5,461
|
|
3,422
|
Noncash operating lease
expense
|
2,608
|
|
2,699
|
Accretion of discount
on short-term investments, net
|
—
|
|
(4,496)
|
Impairment of
long-lived assets
|
—
|
|
1,335
|
Other
adjustments
|
81
|
|
(91)
|
Changes in operating
assets and liabilities:
|
|
|
|
Accounts
receivable
|
(1,203)
|
|
1,286
|
Prepaid expenses and
other current assets
|
(6,380)
|
|
(2,267)
|
Other assets
|
2,708
|
|
593
|
Accounts
payable
|
549
|
|
(3,780)
|
Amounts due to joint
development partners
|
(2,265)
|
|
(2,577)
|
Accrued expenses and
other current liabilities
|
(8,578)
|
|
(19,729)
|
Operating lease
liabilities
|
(2,231)
|
|
(2,732)
|
Other
liabilities
|
411
|
|
(1)
|
Net cash used in
operating activities
|
(176,659)
|
|
(157,825)
|
Cash flows from
investing activities:
|
|
|
|
Purchases of short-term
investments
|
—
|
|
(209,165)
|
Proceeds from
maturities of short-term investments
|
—
|
|
68,857
|
Purchases of property
and equipment
|
(5,041)
|
|
(945)
|
Proceeds from disposal
of property and equipment
|
25
|
|
—
|
Purchases of intangible
assets
|
(132)
|
|
—
|
Net cash used in
investing activities
|
(5,148)
|
|
(141,253)
|
Cash flows from
financing activities:
|
|
|
|
Proceeds from the
issuance of common stock under the Employee Stock Purchase
Plan
|
1,292
|
|
—
|
Proceeds from exercised
stock options
|
1,558
|
|
30
|
Principal payments on
finance lease obligations
|
(587)
|
|
(277)
|
Principal payments on
loans
|
(747)
|
|
(805)
|
Net cash provided by
(used in) financing activities
|
1,516
|
|
(1,052)
|
Effect of exchange rate
changes on cash, cash equivalents, and restricted cash
|
(877)
|
|
(908)
|
Net decrease in cash,
cash equivalents, and restricted cash
|
(181,168)
|
|
(301,038)
|
Cash, cash equivalents,
and restricted cash - beginning of period
|
1,339,092
|
|
617,465
|
Cash, cash equivalents,
and restricted cash - end of period
|
$
1,157,924
|
|
$
316,427
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
2022
|
|
2023
|
Reconciliation of
cash, cash equivalents, and restricted cash to the condensed
consolidated balance sheets:
|
|
|
|
Cash and cash
equivalents
|
$
1,156,418
|
|
$
314,711
|
Restricted cash
included in prepaid expenses and other current assets
|
1,506
|
|
1,716
|
Total cash, cash
equivalents, and restricted cash
|
$
1,157,924
|
|
$
316,427
|
|
|
|
|
Supplemental
disclosure of cash flow information:
|
|
|
|
Cash paid for
interest
|
$
546
|
|
$
254
|
Supplemental
schedule of non-cash investing and financing
activities:
|
|
|
|
Acquisitions of
property and equipment included in liabilities
|
$
1,103
|
|
$
26
|
Right-of-use assets
obtained in exchange for operating lease obligations
|
$
47,419
|
|
$
35
|
Right-of-use assets
obtained in exchange for finance lease obligations
|
$
5,240
|
|
$
—
|
Vesting of early
exercised stock options
|
$
42
|
|
$
—
|
TuSimple
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Financial
Measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AEBITDA loss is
comprised of loss from operations determined in accordance with
U.S. generally accepted accounting principles ("GAAP") minus
depreciation and amortization, finance lease interest expense
allocated to cost of revenues from truck leases, tax, and adjusted
to exclude non-cash expense stock-based compensation and
restructuring expenses, including severance and impairment
losses.
TuSimple believes that AEBITDA loss, a non-GAAP financial measure,
provides meaningful information to assist management and investors
in understanding financial results and assessing prospects for
future performance as it provides a useful baseline for analyzing
the ongoing performance of the TuSimple business by excluding
non-cash items or items that may not be indicative of core
operating results. Because non-GAAP financial measures are not
standardized, it may not be possible to compare this measure with
other companies' non-GAAP measures having the same or similar
names. Therefore, TuSimple's non-GAAP financial measure should be
considered in addition to, not as a substitute for, or in isolation
from, the company's GAAP results.
TuSimple encourages investors and others to review its financial
information in its entirety, not to rely on any single financial
measure, and to view its non-GAAP measures in conjunction with GAAP
financial measures.
The following table reconciles GAAP loss from operations to AEBITDA
loss.
|
Reconciliation
Tables
|
|
(in
millions)
|
(unaudited)
|
Q1
'22
|
Q2
'22
|
Q3
'22
|
Q4
'22
|
Q1
'23
|
Q2
'23
|
|
Loss from operations
to adjusted EBITDA
|
|
|
|
|
|
|
|
Loss from
operations
|
$ (112.2)
|
$ (110.7)
|
$ (118.9)
|
$ (147.3)
|
$ (90.6)
|
$ (87.4)
|
|
Stock-based
compensation expense (1)
|
27.5
|
25.2
|
23.0
|
26.0
|
16.8
|
13.5
|
|
Depreciation and
amortization (1)
|
2.7
|
2.7
|
3.0
|
2.9
|
1.6
|
1.2
|
|
Restructuring
expense
|
1.7
|
—
|
—
|
25.3
|
2.7
|
7.8
|
|
Finance lease interest
expense included within cost of revenue
|
0.1
|
0.1
|
0.1
|
0.1
|
—
|
—
|
|
Adjusted
EBITDA
|
$ (80.2)
|
$ (82.7)
|
$ (92.8)
|
$ (93.0)
|
$(69.5)
|
$ (64.9)
|
|
(1) Excludes amounts
related to restructuring events
|
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
Six Months Ended
June 30,
|
(unaudited)
|
2022
|
2023
|
Loss from operations
to adjusted EBITDA
|
|
|
Loss from
operations
|
$ (222.9)
|
$ (178.0)
|
Stock-based
compensation expense (1)
|
52.7
|
30.3
|
Depreciation and
amortization (1)
|
5.4
|
2.8
|
Restructuring
expense
|
1.7
|
10.5
|
Finance lease interest
expense included within cost of revenue
|
0.2
|
—
|
Adjusted
EBITDA
|
$ (162.9)
|
$ (134.4)
|
(1) Excludes amounts
related to restructuring events
|
|
|
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SOURCE TuSimple Holdings, Inc.