LiveWire shares 2023 Q4 and full year financial results
LiveWire Group recently reported its fourth quarter and full year results for 2023.
“LiveWire concluded 2023 with a strong Q4 performance, delivering on units and operating loss guidance for the full year with the successful delivery to market of S2 Del Mar, the first model built on our S2 platform that continues to generate a positive response from the media, our retailers and our riders,” says Karim Donnez, CEO of LiveWire. “We expect 2024 to be a year highlighted by product innovation, market expansion and continued cost improvements.”
2023 highlights and financial results
- Launched the Del Mar, the first model built with an all-new in-house developed battery pack, power electronics, motor, telematics and associated software
- Unit sales of 660 electric motorcycles, up double digits versus the prior year
- Consolidated operating loss in line with our expectations driven by product development costs relating to the S2 platform, delivery of the Del Mar, a provision for an obligation for excess inventory components and additional costs to stand up the organization as a stand-alone public company
- Ended the year with 126 retail partners globally
Q4 2023 summary of results
- Unit sales of 514 electric motorcycles, with an increase in consolidated revenue of 64% versus the prior year
- Consolidated operating loss increase over the prior year of $4.9 million resulting primarily from costs related to increased volume and a provision for an obligation for excess inventory components
- Continued investment in developing models on the S2 platform
LiveWire Group, Inc. – consolidated results
| $ in millions* | 4th quarter | Full Year | ||||||||||
| 2023 | 2022 | Change | 2023 | 2022 | Change | |||||||
| Revenue | $15.1 | $9.2 | 64 | % | $38.0 | $46.8 | (19 | %) | ||||
| Operating (Loss) | ($33.8 | ) | ($28.9 | ) | 17 | % | ($116.0 | ) | ($85.0 | ) | 36 | % |
| Net Loss | ($33.1 | ) | ($22.4 | ) | 48 | % | ($109.6 | ) | ($78.9 | ) | 39 | % |
LiveWire Group, Inc. – segment results
| $ in millions*, except units | 4th quarter | Full Year | ||||||||||
| 2023 | 2022 | Change | 2023 | 2022 | Change | |||||||
| Electric Motorcycles | ||||||||||||
| LiveWire (units) | 514 | 69 | 645 | % | 660 | 547 | 21 | % | ||||
| Harley-Davidson LiveWire (units) | — | — | 0 | % | — | 50 | (100 | %) | ||||
| Electric Motorcycle Shipments (units) | 514 | 69 | 645 | % | 660 | 597 | 11 | % | ||||
| Revenue | $8.0 | $1.6 | 400 | % | $11.5 | $14.0 | (18 | %) | ||||
| Operating (Loss) | ($34.2 | ) | ($29.7 | ) | 15 | % | ($116.6 | ) | ($89.1 | ) | 31 | % |
| $ in millions* | 4th quarter | Full Year | ||||||||||
| 2023 | 2022 | Change | 2023 | 2022 | Change | |||||||
| STACYC Segment | ||||||||||||
| Revenue | $7.1 | $7.6 | (7 | %) | $26.5 | $32.8 | (19 | %) | ||||
| Operating Income | $0.4 | $0.8 | (50 | %) | $0.6 | $4.2 | (86 | %) | ||||
| *Amounts may not add up due to rounding | ||||||||||||
The company’s consolidated net loss was $109.6 million for the year ended 2023 compared to $78.9 million for the year ended 2022. The increase of $30.7 million was in line with our expectations driven by a provision for an obligation for excess inventory components, increased selling, administrative and engineering expenses for product development costs relating to the S2 platform, delivery of the Del Mar and additional costs to stand up the organization as a stand-alone public company. The company also had an increase of $9.1 million of non-operating mark-to-market expense resulting from the increase in the fair value of warrant liabilities year-over-year which was offset by an increase of $9.3 million in interest income.
The company’s consolidated net loss was $33.1 million for the fourth quarter of 2023 as compared to $22.4 million in the same period the prior year driven by the segment results noted below, an increase of $6.7 million of non-operating mark-to-market expense related to the increase in fair value of the outstanding warrants as of December 31, 2023 as compared to December 31, 2022, offset by an increase of $1.2 million in interest income.
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 Motorcycle revenue increased in the fourth quarter of 2023 compared to the same quarter in the prior year due to sales of Del Mar units. Increased operating losses compared to the fourth quarter of 2022 were primarily related to increased costs as a result of increased volumes and a provision for an obligation for excess inventory components.
STACYC volumes were up in the fourth quarter of 2023 compared to 2022, while revenue and operating income were down due to product mix and pricing.
2024 financial outlook
For the full year 2024, the company expects:
- Electric Motorcycle sales of 1,000 to 1,500 revenue units
- Operating Loss of $115 million to $125 million
