LiveWire Group, Inc. (“LiveWire” or the “Company”) (NYSE: LVWR)
today reported fourth quarter and full year 2024 results.
“In 2024, we undertook several initiatives to navigate the
market dynamics and turned challenges into opportunities to
reposition the business for 2025. We now expect to reduce our cash
burn by 40% or more in 2025 compared to 2024. The Company plans to
continue establishing its leadership in the EV space. With our
world-class products, first-class team, and best-in-the-industry
retail partners, we will continue to relentlessly improve the
fundamentals of the business and position ourselves for long-term
success,” said Karim Donnez, CEO, LiveWire.
2024 Highlights and Financial Results
- S2 continues to lead the way with:
- S2 Del Mar® winning MCN’s Best Electric Bike of 2024
- Production of two new models, Mulholland and Alpinista, off the
S2 platform
- Announced collaboration with KYMCO on an electric maxi-scooter
project leveraging the S2 platform
- Completed consolidation of business operations in Milwaukee,
Wisconsin
- Reduced consolidated selling, administrative and engineering
expense by $12.6 million from the completion of the development
work on the S2 platform in the prior year, and initiatives taken
during the year around streamlining of headcount
- Consolidated operating loss decreased by $5.6 million, or 5%,
from 2023 driven by a decrease in Electric Motorcycle segment
operating loss of $11.1 million offset by an increase in STACYC
segment operating loss of $5.5 million
Fourth Quarter 2024 Summary of Results
- Unit sales of 236, a 138% increase over third quarter 2024
- Consolidated operating loss decreased by $8.5 million from 2023
driven by a decrease in consolidated selling, administrative and
engineering expense
- Aligned the Company’s go-to-market strategy with Europe moving
to a wholesale model and entered Spain and Italy markets
LiveWire Group,
Inc. – Consolidated Results
$ in millions*
4th quarter
Full Year
2024
2023
Change
2024
2023
Change
Motorcycle Units
236
514
(54%)
612
660
(7%)
Electric Balance Bike Units
8,350
8,354
0%
18,549
32,113
(42%)
Consolidated Revenue
$10.8
$15.1
(29%)
$26.6
$38.0
(30%)
Electric Motorcycles
$3.5
$8.0
(56%)
$8.4
$11.5
(27%)
STACYC
$7.3
$7.1
2%
$18.3
$26.5
(31%)
Consolidated Operating Income
(Loss)
($25.2)
($33.8)
25%
($110.4)
($116.0)
5%
Electric Motorcycles
($24.7)
($34.2)
28%
($105.5)
($116.6)
10%
STACYC
($0.6)
$0.4
(225%)
($4.9)
$0.6
(881%)
Net Loss
($22.8)
($33.1)
31%
($93.9)
($109.6)
14%
*
Amounts may not add up or recalculate due
to rounding
The Company’s consolidated net loss was $93.9 million for the
year ended 2024 compared to $109.6 million for the year ended 2023.
The decrease of $15.7 million was driven by:
- a decrease in selling, administrative and engineering expense
of $12.6 million resulting from the completion of development work
on the S2 platform in the prior year, and initiatives taken during
the year around streamlining of headcount, offset by a decrease in
revenue, and
- an increase in non-operating income of $14.8 million related to
the decrease in fair value of the outstanding warrants as of
December 31, 2024, offset by a decrease of $4.8 million in interest
income as compared to prior year.
The Company’s consolidated net loss was $22.8 million for the
fourth quarter 2024 as compared to $33.1 million in the same period
prior year driven by the segment results noted below, an increase
of $3.3 million of non-operating income related to the decrease in
fair value of the outstanding warrants as of December 31, 2024,
offset by a decrease of $1.5 million in interest income as compared
to prior year.
LiveWire Group, Inc. is comprised of two business segments:
- Electric Motorcycles – focused on the sale of electric
motorcycles and related products
- STACYC – focused on the sale of electric balance bikes for kids
and related products
Electric Motorcycles
Electric Motorcycles revenue decreased in the fourth quarter of
2024 compared to the same quarter in the prior year due to lower
unit sales and product mix. Operating loss decreased by $9.5
million driven by a $9.2 million reduction in selling,
administrative and engineering expense from decreased product
development expense compared to prior year and other cost reduction
activities.
STACYC
STACYC volumes were flat in the fourth quarter of 2024 compared
to 2023 while revenue increased by $138 thousand from increased
dealer and online sales offset by decreased sales to the Company’s
third party branded distributor. Selling, general and
administrative expenses increased by $554 thousand primarily driven
by planned product development costs and increased marketing
initiatives.
2025 Financial Outlook
For the full year 2025, the Company expects:
- Electric Motorcycle sales of 1,000 to 1,500 revenue units
- LiveWire Group operating loss of $70 to $80 million
Webcast
The public is invited to attend an audio webcast from 8:00-9:00
a.m. CST. LiveWire leadership will be joining the Harley-Davidson,
Inc. audio webcast to discuss our results, developments in the
business, and updates to the Company’s outlook. The webcast login
can be accessed at
https://investor.livewire.com/news-events-1/events/default.aspx.
The audio replay will be available by approximately 10:00 a.m.
CST.
About LiveWire
LiveWire has a dedicated focus on the electric motorcycle
sector. LiveWire’s majority shareholder is Harley-Davidson, Inc.
LiveWire comes from the lineage of Harley-Davidson and is
capitalizing on a decade of its learnings in the EV sector. With a
dedicated focus on EV, LiveWire plans to develop the technology of
the future and to invest in the capabilities needed to lead the
transformation of motorcycling. www.livewire.com
Cautionary Note Regarding Forward-Looking Statements
The Company intends that certain matters discussed in this press
release are “forward-looking statements” intended to qualify for
the safe harbor from liability established by the Private
Securities Litigation Reform Act of 1995. All statements other than
statements of historical facts contained in this press release,
including statements concerning possible or assumed future actions,
business strategies, events or results of operations, and any
statements that refer to projections, forecasts or other
characterizations of future events or circumstances, including any
underlying assumptions, are forward-looking statements. These
statements involve known and unknown risks, uncertainties and other
important factors that may cause our actual results, performance or
achievements to be materially different from any future results,
performance or achievements expressed or implied by the
forward-looking statements. Words or phrases such as “anticipate,”
“believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “is
on track,” “may,” “might,” “objective,” “ongoing,” “plan,”
“potential,” “predict,” “project,” “remain committed,” “should,”
“target,” “will” and “would,” or similar words or phrases, or the
negatives of those words or phrases, may identify forward-looking
statements, but the absence of these words does not necessarily
mean that a statement is not forward-looking. The forward-looking
statements in this press release are only predictions. We have
based these forward-looking statements largely on our current
expectations and projections about future events and financial
trends that we believe may affect our business, financial condition
and results of operations. These forward-looking statements speak
only as of the date of this press release and are subject to a
number of important factors that could cause actual results to
differ materially from those in the forward-looking statements,
including the risks, uncertainties and assumptions described in
prior public filings titled “Risk Factors.” These forward-looking
statements are subject to numerous risks, including, without
limitation, the following: our history of losses and expectation to
incur significant expenses and continuing losses for the
foreseeable future; our limited operating history, the rollout of
our business and the timing of expected business milestones,
including our ability to develop and manufacture electric vehicles
of sufficient quality and appeal to customers on schedule and on a
large scale; our financial and business performance, including
financial projections and business metrics and any underlying
assumptions thereunder; our ability to obtain funding for our
operations and manage costs; our future capital requirements and
sources and uses of cash; changes in our strategy, future
operations, financial position, estimated revenues and losses,
projected costs, prospects and plans, including our ability to
effectively execute the Company’s relocation and streamlined
headcount plan within expected costs and time and our ability to
realize the expected savings in 2024 and on an ongoing annual
basis; retail partners being unwilling to participate in our
go-to-market business model or their inability to establish or
maintain relationships with customers for our electric vehicles;
our ability to attract and retain a large number of customers;
challenges we face as a pioneer into the highly-competitive and
rapidly evolving electric vehicle industry; our operational and
financial risks if we fail to effectively and appropriately
separate the LiveWire business from the H-D business; H-D making
decisions for its overall benefit that could negatively impact our
overall business; our relationship with H-D and its impact on our
other business relationships; our ability to leverage contract
manufacturers, including H-D and Kwang Yang Motor Co., Ltd., a
Taiwanese company (“KYMCO”), to contract manufacture our electric
vehicles; potential delays in the design, manufacture, financing,
regulatory approval, launch and delivery of our electric vehicles;
building out our supply chain, including our dependency on our
existing suppliers and our ability to source suppliers, in each
case many of which are single-sourced or limited-source suppliers,
for our critical components such as batteries and semiconductor
chips; our ability to rely on third-party and public charging
networks; our ability to attract and retain key personnel; our
business, expansion plans and opportunities, including our ability
to scale our operations and manage our future growth effectively;
the effects on our future business of competition, the pace and
depth of electric vehicle adoption generally and our ability to
achieve planned competitive advantages with respect to our electric
vehicles and products, including with respect to reliability,
safety and efficiency; our business and H-D’s business overlapping
and being perceived as competitors; our inability to maintain a
strong relationship with H-D or to resolve favorably any disputes
that may arise between us and H-D; our dependency on H-D for a
number of services, including services relating to quality and
safety testing. If those service arrangements terminate, it may
require significant investment for us to build our own safety and
testing facilities, or we may be required to obtain such services
from another third-party at increased costs; any decision by us to
electrify H-D products, or the products of any other company; our
expectations regarding our ability to obtain and maintain
intellectual property protection and not infringe on the rights of
others; potential harm caused by misappropriation of our data and
compromises in cybersecurity; changes in laws, regulatory
requirements, governmental incentives and fuel and energy prices;
the impact of health epidemics, including the COVID-19 pandemic, on
our business, the other risks we face and the actions we may take
in response thereto; litigation, regulatory proceedings,
complaints, product liability claims and/or adverse publicity; and
the possibility that we may be adversely affected by other
economic, business and/or competitive factors. Because
forward-looking statements are inherently subject to risks and
uncertainties, some of which cannot be predicted or quantified and
some of which are beyond our control, you should not rely on these
forward-looking statements as predictions of future events. The
events and circumstances reflected in our forward-looking
statements may not be achieved or occur, and actual results could
differ materially from those projected in the forward-looking
statements. Moreover, we operate in an evolving environment. Some
of these risks and uncertainties may in the future be amplified by
new risk factors and uncertainties that may emerge from time to
time, and it is not possible for management to predict all risk
factors and uncertainties. As a result of these factors, we cannot
assure you that the forward-looking statements in this press
release will prove to be accurate. Except as required by applicable
law, we do not plan to publicly update or revise any
forward-looking statements contained herein, whether as a result of
any new information, future events, changed circumstances, or
otherwise. You should read this earnings release completely and
with the understanding that our actual future results may be
materially different from what we expect. We qualify all of our
forward-looking statements by these cautionary statements.
LiveWire Group, Inc.
Consolidated Statements of
Operations
(In thousands, except per
share amounts)
(Unaudited)
(Unaudited)
(Unaudited)
Three months ended
Twelve months ended
December 31,
2024
December 31,
2023
December 31,
2024
December 31,
2023
Revenue, net
$
10,761
$
15,091
$
26,633
$
38,023
Costs and expenses:
Cost of goods sold
16,115
20,279
39,416
43,795
Selling, administrative and engineering
expense
19,890
28,567
97,573
110,217
Total operating costs and expenses
36,005
48,846
136,989
154,012
Operating loss
(25,244
)
(33,755
)
(110,356
)
(115,989
)
Interest income
840
2,365
5,704
10,537
Change in fair value of warrant
liabilities
1,639
(1,688
)
10,770
(4,020
)
Loss before income taxes
(22,765
)
(33,078
)
(93,882
)
(109,472
)
Income tax provision
17
15
43
78
Net loss
$
(22,782
)
$
(33,093
)
$
(93,925
)
$
(109,550
)
Net loss per share, basic and diluted
$
(0.11
)
$
(0.16
)
$
(0.46
)
$
(0.54
)
Weighted-average shares, basic and
diluted
203,301
202,672
203,206
202,504
LiveWire Group, Inc.
Consolidated Balance
Sheets
(In thousands)
(Unaudited)
December 31,
2024
December 31,
2023
ASSETS
Current assets:
Cash and cash equivalents
$
64,437
$
167,904
Accounts receivable, net
3,874
4,295
Accounts receivable from related party
399
3,402
Inventories, net
26,942
32,122
Other current assets
2,709
3,004
Total current assets
98,361
210,727
Property, plant and equipment, net
34,012
37,682
Goodwill
8,327
8,327
Deferred tax assets
7
4
Lease assets
765
1,868
Intangible assets, net
1,058
1,347
Other long-term assets
5,430
6,192
Total assets
$
147,960
$
266,147
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$
1,738
$
3,554
Accounts payable to related party
9,762
20,371
Accrued liabilities
17,960
21,189
Current portion of lease liabilities
394
1,152
Total current liabilities
29,854
46,266
Long-term portion of lease liabilities
405
792
Deferred tax liabilities
118
93
Warrant liabilities
1,549
12,319
Other long-term liabilities
919
814
Total liabilities
32,845
60,284
Shareholders' equity:
Preferred Stock
—
—
Common Stock
20
20
Treasury Stock
(3,413
)
(1,969
)
Additional paid-in-capital
344,409
339,783
Accumulated deficit
(225,913
)
(131,988
)
Accumulated other comprehensive income
12
17
Total shareholders' equity
115,115
205,863
Total liabilities and shareholders'
equity
$
147,960
$
266,147
LiveWire Group, Inc.
Consolidated Statements of
Cash Flows
(In thousands)
(Unaudited)
Twelve months ended
December 31,
2024
December 31,
2023
Cash flows from operating activities:
Net loss
$
(93,925
)
$
(109,550
)
Adjustments to reconcile net loss to net
cash used in operating activities
Depreciation and amortization
10,041
5,832
Change in fair value of warrant
liabilities
(10,770
)
4,020
Stock compensation expense
4,626
8,926
Provision for doubtful accounts
230
53
Deferred income taxes
22
74
Inventory write-down
5,750
2,719
Cloud computing arrangements development
costs
(45
)
(1,312
)
Other, net
(244
)
(117
)
Changes in current assets and
liabilities:
Accounts receivable, net
192
(2,023
)
Accounts receivable from related party
3,003
(2,877
)
Inventories
(569
)
(5,626
)
Other current assets
540
1,621
Accounts payable and accrued
liabilities
(2,101
)
160
Accounts payable to related party
(10,609
)
14,638
Net cash used by operating activities
(93,859
)
(83,462
)
Cash flows from investing activities:
Capital expenditures
(8,068
)
(13,462
)
Net cash used by investing activities
(8,068
)
(13,462
)
Cash flows from financing activities:
Repurchase of common stock
(1,444
)
(1,969
)
Proceeds received from exercise of
warrants
—
1,557
Net cash used by financing activities
(1,444
)
(412
)
Effect of exchange rate changes on cash
and cash equivalents
(96
)
—
Net decrease in cash and cash
equivalents
$
(103,467
)
$
(97,336
)
Cash and cash equivalents:
Cash and cash equivalents—beginning of
period
$
167,904
$
265,240
Net decrease in cash and cash
equivalents
(103,467
)
(97,336
)
Cash and cash equivalents—end of
period
$
64,437
$
167,904
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250205101695/en/
Media Contact: Jenni Coats (414) 343-7902 Financial
Contact: Shawn Collins (414) 343-8002
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