Beam Global (BEEM, Financial) has announced a strategic joint venture with the Platinum Group, a prominent entity in the United Arab Emirates. This collaboration will lead to the formation of Beam Middle East, a new entity focused on producing and marketing Beam Global's innovative sustainable infrastructure solutions. These solutions cater to transportation electrification, energy storage, energy security, and smart city initiatives across the Middle East and Africa.
The strategic move aims to tap into lucrative markets outside the U.S., with particular emphasis on the Middle East's growing demand for sustainable technology. By 2030, the addressable revenue in this region, particularly in countries like the UAE, Saudi Arabia, Qatar, Oman, and Jordan, is projected to reach $516.5 million. Additionally, BeamBike units alone could garner $245 million in the same timeframe, while the UAE's eBike market is expected to grow to $443.8 million by 2030.
The new venture, Beam Middle East LLC, will be a 50/50 partnership, incorporated in Abu Dhabi. Beam Global will share its proprietary technologies and provide ongoing support, while the Platinum Group will utilize its local relationships, manage sales, and build manufacturing capabilities. The headquarters will be situated in Masdar City, Abu Dhabi.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 4 analysts, the average target price for Beam Global (BEEM, Financial) is $4.38 with a high estimate of $7.00 and a low estimate of $2.50. The average target implies an upside of 184.09% from the current price of $1.54. More detailed estimate data can be found on the Beam Global (BEEM) Forecast page.
Based on the consensus recommendation from 4 brokerage firms, Beam Global's (BEEM, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Beam Global (BEEM, Financial) in one year is $3.71, suggesting a upside of 140.91% from the current price of $1.54. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Beam Global (BEEM) Summary page.
BEEM Key Business Developments
Release Date: May 15, 2025
- Revenue: $6.3 million for Q1 2025, down from the previous year.
- Gross Profit: $0.5 million with an 8% gross margin; non-GAAP gross margin of 21% after excluding non-cash items.
- Operating Expenses: $16 million, including $10.8 million goodwill impairment.
- Net Loss: $15.5 million, including $12.5 million in non-cash expenses; non-GAAP net loss of $2.8 million.
- Cash Balance: $2.5 million at the end of March 2025.
- Net Cash Used for Operating Activities: $1.8 million for Q1 2025.
- International Revenue: 25% of total revenue in Q1 2025.
- Sales Orders: Increased by 23% over Q4 2024.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Beam Global (BEEM, Financial) reported a significant increase in sales of its flagship product, EV ARC, in the first quarter.
- The company has successfully diversified its revenue streams, with 53% of revenues now coming from commercial customers, up from 16% in the previous year.
- International expansion is gaining momentum, with international customers contributing 25% of total revenue in Q1 2025, up from 11% in Q1 2024.
- Beam Global (BEEM) has no debt and sufficient cash and working capital to continue operations, with a focus on generating positive gross profits.
- The company is seeing strong growth in non-government sales, with a 41% year-over-year increase, demonstrating the effectiveness of its strategy to expand its commercial business.
Negative Points
- Beam Global (BEEM) experienced a decrease in revenue to $6.3 million in Q1 2025, about half of what it was during the same period the prior year.
- The company reported a net loss of $15.5 million in Q1 2025, significantly higher than the $3 million net loss in Q1 2024.
- A goodwill impairment of $10.8 million was recognized due to a decrease in stock price, impacting the company's financials.
- Gross profit margins decreased to 8% in Q1 2025 from 10% in Q1 2024, although non-GAAP gross margins were higher.
- The cessation of US Federal government orders for electric vehicle charging infrastructure has negatively impacted revenue, requiring Beam Global (BEEM) to adjust its sales strategy.
