What happened
Shares of Arbe Robotics (ARBE -2.84%) fell by as much as 22.3% in trading on Thursday after the autonomous driving technology company reported its fourth-quarter financial results. Shares closed the session down by 21.6%
So what
Revenue for the quarter was just $150,000, down from $500,000 a year ago and well short of the $1.95 million that analysts had been expecting.
It's net loss was $11.1 million, an improvement from its $15.8 million loss a year ago. But the loss was $0.17 per share, which was worse than the $0.14 per share loss that analysts expected.
Management said that 2023 revenue will be $5 million to $7 million with an adjusted EBITDA loss of $32 million to $35 million. Analysts had been forecasting $40.8 million in revenue, so this guidance was well short of the bar Wall Street had set.
Now what
There are not a lot of positives to take away from this quarter. The company is working on ramping up production, but clearly, its sales numbers aren't going to be meaningful anytime soon. And with losses mounting, the $54.2 million in cash on its balance sheet will be gone soon.
I don't think this drop is an opportunity to buy shares. If the company is going to recover, investors can wait until it gets its operations to some sustainable level. For now, it's a high-risk stock that doesn't seem to have a long runway, and that's why I'm staying away today.