On October 26, 2023, LiveWire Group Inc (LVWR, Financial) released its third quarter financial results. The company reported a consolidated net loss of $14.6 million, a decrease of 30% from the same period in the previous year. This was driven by the segment results noted below, an $8.0 million of non-operating mark-to-market income related to the decrease in fair value of the outstanding warrants as of the end of the quarter and $2.7 million in interest income.
Financial Highlights
The company's consolidated revenue for the quarter was $8.1 million, a 45% decrease from Q3 2022. The Electric Motorcycles segment contributed $1.3 million to the revenue, marking a 73% decrease from the previous year. The STACYC segment contributed $6.8 million, a 30% decrease from Q3 2022.
LiveWire's consolidated operating loss for the quarter was $25.3 million, a 21% increase from the same period in the previous year. The Electric Motorcycles segment reported an operating loss of $25.7 million, a 14% increase from Q3 2022, while the STACYC segment reported an operating income of $0.4 million, a 74% decrease from the previous year.
Business Updates
During the third quarter, LiveWire commenced production on Del Mar, the first bike on the company's S2 platform. The company also continued to invest in building its retail network infrastructure to support Del Mar and future bikes, ending the quarter with 126 retail partners globally. Furthermore, LiveWire continued product development of new models on the S2 platform.
Outlook for 2023
For the full year 2023, the company affirms its guidance as follows: Electric Motorcycle unit sales of 600 to 1,000 and LiveWire Group operating loss of $115 to $125 million.
Financial Statements Summary
As of September 30, 2023, LiveWire had total assets of $295.9 million, including $199.9 million in cash and cash equivalents. The company's total liabilities stood at $57.4 million, resulting in total shareholders' equity of $238.5 million.
For the nine months ended September 30, 2023, LiveWire reported a net loss of $76.5 million. The company used $55.9 million in cash for operating activities and $11.0 million for investing activities. Financing activities provided $1.6 million in cash.
LiveWire's financial performance in Q3 2023 reflects the company's ongoing efforts to establish itself in the electric motorcycle sector. Despite the challenges, the company remains committed to delivering innovative products and expanding its global retail network.
Explore the complete 8-K earnings release (here) from LiveWire Group Inc for further details.
