Archer Aviation (ACHR -2.07%), a pioneer in electric vertical takeoff and landing (eVTOL) aircraft, released its results on May 9 for the first quarter. The company experienced a net loss of $0.36 per share, missing analysts' estimates slightly. Overall, the net loss of $116.5 million slightly exceeded year-ago numbers.
Despite challenges, the leader in urban air mobility has been making progress toward the goal of producing specialized aircraft.
| Metrics | Q1 2024 | Analyst Estimates | Q1 2023 | Change (YOY) |
|---|---|---|---|---|
| Net loss (in millions) | ($116.5) | N/A | ($113.1) | N/A |
| Earnings per share | ($0.36) | ($0.31) | ($0.46) | N/A |
| Operating expenses (in millions) | $142.2 | N/A | $112.0 | 27% |
| Cash & equivalents (in millions) | $405.8 | N/A | $449.9 | -9.8% |
Data sources: Company results from company. Analyst estimates from FactSet.
Understanding Archer Aviation
Archer Aviation is embarking on revolutionizing urban mobility through its electric aircraft, designed for vertical takeoff and landing. At its core, Archer aims to make air travel an accessible option for city commutes, drastically reducing travel time in congested cities.
Recently, the company has been laser-focused on achieving certification from the Federal Aviation Administration (FAA) for its eVTOL aircraft, Midnight. The company has also struck partnerships with the Abu Dhabi Investment Office and automaker Stellantis.
Quarter highlights
During the quarter, Archer made considerable strides in FAA certification, a key hurdle for commercial viability. The achievement of milestones such as battery pack drop tests and landing gear tests are notable indicators of progress.
The announcement of a framework agreement with the Abu Dhabi Investment Office marks a significant step toward global expansion, providing a potentially sizable new revenue stream in the future.
On the operational front, Archer is accelerating its manufacturing capabilities, a vital step toward scalability. The completion of a high-volume battery pack manufacturing line and progress in the Georgia facility's construction are key to the company's strategy.
Looking forward
Looking ahead, the company is projecting total non-GAAP operating expenses of $80 million to $95 million for the upcoming quarter.
Archer Aviation aims to maintain its momentum toward FAA certification, an essential step for launching its commercial operations. The company's partnerships and expansion into new markets should also improve its path toward scaling and profitability.
Investors ought to keep an eye on Archer's progress in FAA certifications, manufacturing ramp-up, and evolution of strategic partnerships as indicators of its long-term chances of success in the urban air mobility market.
