TuSimple Announces First Half 2023 Results
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."
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.
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.
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.
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.
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:
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.
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.
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SOURCE TuSimple Holdings, Inc.
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