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Q2 2022 Highlights
- Second quarter revenue of $16 million and first half of 2022 revenue of $33 million compared to $17 million and $27 million for the same periods in 2021, representing a 4% y/y decline and 25% y/y growth, respectively
- Second quarter GAAP cost of revenue of $40 million; first half of 2022 GAAP cost of revenue of $80 million represents a 7% y/y decline from first half 2021 cost of revenue of $86 million
- Major customer wins and installations in Q2 2022 include Amazon (Office), 10 World Trade (BGI: Lifesciences), Dallas Fort Worth (Airport), Phoenix Sky Harbor (Airport), Missoula Montana (Airport), Credit Union of Colorado (Office) and Versante Hotel (Hotel)
- Management reaffirms full year 2022 revenue guidance of $100 million to $110 million, with second half revenues of $67 million to $77 million representing y/y growth of 41% to 62%
Key Announcements
- Electrochromic Windows included under Investment Tax Credit in the Inflation Reduction Act of 2022. Senate passed bill brings cost parity for electrochromic windows to traditional windows
- View secures up to $100 million in committed equity financing
- In addition, the Company is pursuing additional sources of capital
MILPITAS, Calif., Aug. 08, 2022 (GLOBE NEWSWIRE) — View, Inc. (Nasdaq: VIEW) (“View” or the “Company”), a leader in smart building platforms and technologies, today announced financial results for Q2 2022.
“View’s mission has always been to use technology to solve the existential threats of climate change and to improve human health. We applaud the Senate for moving forward with the Inflation Reduction Act of 2022, representing the biggest investment in climate technology adoption in U.S. history. When enacted, the Dynamic Glass Investment Tax Credit (ITC) would make smart windows cost neutral to traditional windows and this represents a major inflection point for widespread adoption,” said Dr. Rao Mulpuri, CEO of View.
“We are on track to execute on our growth plan in 2022 and reiterate full-year revenue guidance in the range of $100 million to $110 million. We have already made significant investments in our manufacturing capacity and operational infrastructure and are ready to scale. With these investments in place, we look forward to serving the rapidly growing demand for smart windows from our customers and gain accretive benefits to our financials,” said Dr. Mulpuri.
Electrochromic Windows Included in Investment Tax Credit Expansion Passed by the SenateView applauds the Senate for passing the Inflation Reduction Act of 2022, comprising the largest investment in climate technologies in U.S. history. The legislation is a critical step forward for the country as it aims to reduce energy consumption from buildings, reduce carbon emissions, improve energy security, and create American manufacturing jobs.
Buildings consume 39% of all energy in the U.S. (Energy Information Administration, link). Decades of research and significant capital have been invested to develop and commercialize smart glass technology, with proven energy benefits. Smart windows have been installed in office, residential, healthcare, education, and transportation sectors across the U.S.
This legislation will bring smart windows to cost parity with traditional windows and will be a catalyst to drive mass adoption of smart windows. Widespread adoption of smart windows will significantly reduce energy consumption and lower peak demand on the American power grid while also creating high-tech, high-paying American manufacturing jobs.
Q2 2022 ResultsQ2 2022 revenue of $16 million represents a 4% year-over-year decrease from Q2 2021, due to timing of projects that are expected to be produced and shipped in the second half of 2022. First half of 2022 revenue of $33 million represents a 25% year-over-year increase from the first half of 2021.
Q2 2022 cost of revenues of $40 million represents a 20% year-over-year decrease from Q2 2021. The decrease in cost of revenues was primarily driven by a decrease in new contract loss accruals, product mix, favorable factory yields, and lower stock-based compensation expense, partially offset by higher costs associated with increased new Smart Building Platform revenues, higher factory costs following the scaling of the factory in the second half of 2021, and higher levels of inventory reserves.
View incurred $21 million in Research and Development (“R&D”) expenses in Q2 2022, a decrease of approximately 1% from Q2 2021. The Company continues to invest in innovative products and services to widen the leadership gap in an industry ripe for change.
View incurred $41 million in Selling, General and Administrative (“SG&A”) expenses, an increase of $6 million, or 18%, from Q2 2021, due to legal, consulting and accounting expenses associated with the audit and restatement of the Company’s financials, which was completed in June 2022 with the filing of the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, and the Company’s quarterly reports for the quarters ended March 31, June 30 and September 30, 2021.
Full Year 2022 OutlookFollowing strong annual growth in 2021 and continued momentum in the first half of 2022, the Company expects to achieve full year 2022 revenues in the range of $100 million to $110 million, consistent with previous guidance, driven by volume growth, strong ASPs, and continued traction with the newly-launched Smart Building Platform and Smart Building Technologies products.
$100 million Committed Equity FacilityView today announced that it has entered into Common Stock Purchase Agreements and a Registration Rights Agreement with CF Principal Investments, LLC, an affiliate of Cantor Fitzgerald L.P., and an affiliate of Yorkville Advisors, which provide for a committed equity facility under which the Company has the option, but not the obligation, to sell up to $100 million of its common stock to the purchasers over a 36-month period, subject to certain terms and conditions, including an effective registration statement covering the resale of shares sold and daily volume limitations. Additional information regarding the terms of the financing will be set forth in the Company’s Current Report on Form 8-K.
Liquidity and FinancingAs of June 30, 2022, the Company had $111 million in cash on hand. The Company has determined that there is substantial doubt about its ability to continue as a going concern as its existing cash balance will not be adequate to fund its forecasted operating costs and meet its obligations beyond November 2022, excluding any capital that may be raised through the Company’s committed equity facility or other additional sources being pursued. To address its cash needs, the Company continues to pursue additional sources of capital while driving reductions in cash burn through working capital management, reduced general and administrative spend following the completion of the restatement, and leveraging fixed costs over higher revenues in the second half of 2022. If the Company is unable to obtain adequate capital resources to fund its obligations, View will formulate additional plans to extend cash availability, including modifying its operations to reduce spending.
While the Company is seeking to raise additional capital, there can be no assurances that the necessary financing will be available on terms acceptable to the Company, or at all. If the Company is unable to obtain adequate capital resources to fund operations, it would not be able to continue to operate its business pursuant to the Company’s current business plan and it would pursue other options, including modifying its operations to reduce spending to a sustainable level by, among other things, delaying, scaling back or eliminating some or all of its ongoing or planned investments in corporate infrastructure, business development, sales and marketing, research and development and other activities, which would have a material impact on its operations and its ability to increase revenues, or it may be forced to discontinue operations entirely.
Recent Business Highlights and Key Customer Wins in Q2 2022On June 20, 2022, View announced (link) its smart windows have been installed at Phoenix Sky Harbor International Airport’s (PHX) new “Eighth Concourse” at Terminal 4, also known as T4 S1. Phoenix Sky Harbor is part of a growing list of airports across the country with View Smart Glass, including LGA, BOS, SFO, DFW, CLT, ORD, SEA, MEM, GEG, BZN, and MSO.
On June 14, 2022, View announced (link) its smart windows have been installed at Dallas Fort Worth International Airport’s (DFW) new “High C” gates. View Smart Glass is a key component of DFW’s leadership in transforming the travel experience and delighting passengers.
On May 16, 2022, View announced (link) its smart windows have been installed at Missoula Montana Airport’s (MSO) new South Concourse Terminal expansion project. View Smart Windows enable MSO’s expansion project objectives to lower the airport’s carbon footprint and establish MSO as Montana’s flagship airport.
On April 25, 2022, View announced (link) its smart windows will be installed at Credit Union of Colorado’s corporate headquarters in Denver’s up-and-coming Central Park neighborhood. With View Smart Windows, Credit Union of Colorado designed its new headquarters to encourage post-Covid back to work and create a competitive edge for attracting and retaining talent.
On April 11, 2022, View announced (link) that Amazon had completed installation of View Smart Windows in its new leased office at 16331 NE 72nd Way in Redmond, Washington. Amazon is a global leader in innovative programs for employee health and wellbeing, and this office building extends Amazon’s core initiative.
On April 8, 2022, View announced (link) a…
Read More: View Announces Q2 Earnings, Reaffirms 2022 Guidance and Provides Update on Financing;