EX-99.1 2 d419797dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

 

LOGO

View Announces Q3 Results and Reaffirms 2022 Full Year Guidance; Completes $200M Financing

Q3 2022 Financial Highlights

 

   

Third quarter revenue of $24 million grew 46% q/q compared to $16 million in Q2 2022 and grew 26% y/y compared to $19 million for the same period in 2021

 

   

Year-to-date revenues of $57 million represent 25% y/y growth compared to $46 million for the same period in 2021 and year-to-date cost of revenue declined by 6% y/y compared to the same period in 2021

 

   

Revenue growth, cost reduction initiatives and working capital management significantly improved cash used in operations from $82 million in Q2 2022 to $51 million in Q3 2022, in line with management’s expectations for improving cash burn in 2H 2022

 

   

Management reaffirms full year 2022 revenue guidance of $100 million to $110 million

Key Announcements

 

   

View is seeing acceleration in customer interest following the passage of the Inflation Reduction Act of 2022 which includes a 30% to 50% Investment Tax Credit (ITC) for smart windows

 

   

View completed $200 million financing through the sale of convertible senior notes to support the Company’s continued growth and path to profitability

 

   

The investment was led by RXR-affiliated investment vehicles, with participation from USAA Real Estate, Anson Funds, and the Environmental Strategies Group of BNP Paribas Asset Management

 

   

Scott Rechler, Chairman and CEO of RXR, has joined View’s Board of Directors

Milpitas, CA, November 8, 2022: View, Inc. (Nasdaq: VIEW) (“View” or the “Company”), a leader in smart building platforms and technologies, today announced financial results for Q3 2022.

“I am proud of the View team and what we have accomplished together building great products and serving our customers well to drive transformation in the real estate industry,” said Dr. Rao Mulpuri, CEO of View. “With proven products installed in 100 million square feet of buildings and market leading customers, we are excited about the next stage of our journey. We have in place the manufacturing capacity, operational infrastructure, and capital to support our growth and execute on our profitability milestones.”

Q3 2022 Results

Q3 2022 revenue of $24 million represents a 26% year-over-year increase from Q3 2021, due to growth across all product lines, including Smart Glass, Smart Building Platform and Smart Building Technologies. Year-to-date revenue of $57 million represents a 25% year-over-year increase.

Q3 2022 cost of revenues of $49 million represents a 5% year-over-year decrease from Q3 2021. The decrease in cost of revenues was primarily driven by a decrease in new contract loss accruals, recently implemented cost savings initiatives and improved inventory management, partially offset by higher costs associated with increased Smart Building Platform revenues and higher production requirements. Year-to-date cost of revenue declined by 6% y/y compared to the same period in 2021. Cost of revenues continue to decrease as a percentage of revenues, reflecting the benefit of growing revenues over the Company’s fixed costs.


View incurred $16 million in Research and Development (“R&D”) expenses in Q3 2022, a decrease of 57% from Q3 2021. The decrease in R&D expenses was primarily driven by a reduction in depreciation expense following a one-time charge in Q3 2021 of $14 million, completion of R&D projects and cost savings initiatives.

View incurred $41 million in Selling, General and Administrative (“SG&A”) expenses, an increase of 8% from Q3 2021, primarily due to an increase in non-cash Employee Stock Based Compensation expense. Other spending in SG&A was held relatively flat compared to the year prior.

$200 million Convertible Notes

On October 27th, View announced it raised $200 million in Convertible Senior Notes to support the Company’s continued growth and path to profitability. The investment was led by RXR-affiliated investment vehicles, with participation from USAA Real Estate, Anson Funds, and the Environmental Strategies Group of BNP Paribas Asset Management, as well as other new and existing investors.

This investment by leading real estate developers and operators represents an endorsement of View’s leadership position and vision for transforming real estate into more sustainable, healthier, and smarter infrastructure built to better serve users.

Investment Tax Credit

In August, the Inflation Reduction Act of 2022 was signed into law and included smart windows under Section 48 ITC, which provides a tax credit similar to solar, wind and storage. This is a major inflection point for the industry and is intended to accelerate deployment of smart windows.

View Smart Windows are expected to qualify for a 30% to 50% tax credit. The Company expects ITC to bring smart windows to cost parity with conventional windows and be the catalyst to drive mass adoption of smart windows.

Full Year 2022 Outlook

With continued execution and momentum year-to-date, the Company reaffirms full year 2022 revenues in the range of $100 million to $110 million, driven by volume growth, strong ASPs, and continued traction with Smart Building Platform and Smart Building Technologies products.

Conference Call and Webcast Details

View will host a conference call to discuss its results on November 8th, 2022, at 1:30 p.m. Pacific Time / 4:30 p.m. Eastern Time. The live webcast of the call can be accessed at the View Investor Relations website at https://investors.view.com, along with the Company’s earnings press release.

The U.S. dial-in for the call is 1-877-524-8416 (1-412-902-1028 for non-U.S. callers). Callers should ask to join the View, Inc. call. A replay of the conference call will be available for 1 week after the call, while an archived version of the webcast will be available on the View Investor Relations website for 90 days. The U.S. dial-in for the conference call replay is 1-877-660-6853 (1-201-612-7415 for non-U.S. callers). The replay access code is 13734266.

Forward-Looking Statements

This press release and certain materials View files with the SEC, as well as information included in oral statements or other written statements made or to be made by View, other than statements of


historical fact, contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. These forward-looking statements are based on current expectations, estimates, assumptions, projections, and management’s beliefs, that are subject to change. There can be no assurance that these forward-looking statements will be achieved; these statements are not guarantees of future performance and are subject to certain risks, uncertainties, and other factors, many of which are beyond View’s control and are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. View’s business is subject to a number of risks, which are described more fully in View’s Annual Report on Form 10-K for the year ended December 31, 2021, and subsequent Quarterly Reports on Form 10-Q. View undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date hereof.

Financial Information; Non-GAAP Financial Measures

This press release contains certain financial information and data that was not prepared in accordance with United States generally accepted accounting principles (“GAAP”). These non-GAAP measures, and other measures that are calculated using such non-GAAP measures, are an addition to, and not a substitute for or superior to, measures of financial performance prepared in accordance with GAAP and should not be considered as an alternative to any performance measures derived in accordance with GAAP.

The Company presents these non-GAAP amounts because management believes they provide useful information to management and investors regarding certain financial and business trends relating to View’s financial condition and results of operations, and they assist management and investors in comparing the Company’s performance across reporting periods on a consistent basis. View’s management uses these non-GAAP measures for trend analyses, for purposes of determining management incentive compensation and for budgeting and planning purposes. View believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating operating results and trends in and in comparing View’s financial measures with those of other similar companies, many of which present similar non-GAAP financial measures to investors. View’s management does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP.

However, there are a number of limitations related to the use of these non-GAAP measures and their nearest GAAP equivalents. For example, other companies may calculate non-GAAP measures differently, or may use other measures to calculate their financial performance, and therefore View’s non-GAAP measures may not be directly comparable to similarly titled measures of other companies.

Reconciliations from GAAP to non-GAAP results are included in the financial statements contained in this release.

About View

View is the leader in smart building technologies that transform buildings to improve human health and experience, reduce energy consumption and carbon emissions, and generate additional revenue for building owners. View Smart Windows use artificial intelligence to automatically adjust in response to outdoor conditions, eliminating the need for blinds and increasing access to natural light. Every View installation includes a cloud-connected smart building platform that can easily be extended to reimagine the occupant experience. View’s products are installed in offices, apartments, airports, hotels, and educational facilities. For more information, please visit: www.view.com.


For further information:

Investors:

Samuel Meehan

View, Inc.

IR@View.com

408-493-1358


VIEW, INC.

Condensed Consolidated Statements of Comprehensive Loss

(unaudited)

(in thousands, except share and per share data)

 

     Three Months Ended     Nine Months Ended  
     2022     2021     2022     2021  

Revenue

   $ 23,762     $ 18,884     $ 57,090     $ 45,579  

Costs and expenses:

        

Cost of revenue

     49,126       51,828       129,219       137,617  

Research and development

     15,554       36,314       56,157       73,924  

Selling, general, and administrative

     41,174       38,210       124,888       94,543  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total costs and expenses

     105,854       126,352       310,264       306,084  
  

 

 

   

 

 

   

 

 

   

 

 

 

Loss from operations

     (82,092     (107,468     (253,174     (260,505

Interest and other expense (income), net

        

Interest expense, net

     58       287       324       5,906  

Other expense (income), net

     118       (100     259       6,320  

Gain on fair value change, net

     (226     (13,078     (6,511     (18,426

Loss on extinguishment of debt

     —         —         —         10,018  
  

 

 

   

 

 

   

 

 

   

 

 

 

Interest and other (income) expense, net

     (50     (12,891     (5,928     3,818  
  

 

 

   

 

 

   

 

 

   

 

 

 

Loss before provision (benefit) for income taxes

     (82,042     (94,577     (247,246     (264,323

Provision (benefit) for income taxes

     23       (425     77       (416
  

 

 

   

 

 

   

 

 

   

 

 

 

Net and comprehensive loss

   $ (82,065   $ (94,152   $ (247,323   $ (263,907
  

 

 

   

 

 

   

 

 

   

 

 

 
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss per share, basic and diluted

   $ (0.38   $ (0.44   $ (1.15   $ (1.64
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted-average shares used in calculation of net loss per share, basic and diluted

     214,775,043       212,154,820       214,422,143       160,497,517  
  

 

 

   

 

 

   

 

 

   

 

 

 


VIEW, INC.

Condensed Consolidated Balance Sheets

(unaudited)

(in thousands)

 

     September 30,
2022
    December 31,
2021
 

Assets

    

Current assets:

    

Cash and cash equivalents

   $ 51,272     $ 281,081  

Accounts receivable, net of allowances

     23,934       30,605  

Inventories

     17,852       10,267  

Prepaid expenses and other current assets

     34,529       21,579  
  

 

 

   

 

 

 

Total current assets

     127,587       343,532  

Property and equipment, net

     262,549       268,401  

Restricted cash

     16,444       16,462  

Right-of-use assets

     19,167       21,178  

Other assets

     27,186       29,493  
  

 

 

   

 

 

 

Total assets

   $ 452,933     $ 679,066  
  

 

 

   

 

 

 

Liabilities and Stockholders’ Equity

    

Current liabilities:

    

Accounts payable

   $ 15,232     $ 24,186  

Accrued expenses and other current liabilities

     54,782       59,456  

Accrued compensation

     11,430       9,508  

Deferred revenue

     7,677       11,460  
  

 

 

   

 

 

 

Total current liabilities

     89,121       104,610  

Debt, non-current

     13,225       13,960  

Sponsor earn-out liability

     1,260       7,624  

Lease liabilities

     20,485       22,997  

Other liabilities

     41,068       50,537  
  

 

 

   

 

 

 

Total liabilities

     165,159       199,728  

Stockholders’ equity:

    

Common stock

     22       22  

Additional paid-in capital

     2,792,406       2,736,647  

Accumulated deficit

     (2,504,654     (2,257,331
  

 

 

   

 

 

 

Total stockholders’ equity

     287,774       479,338  
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 452,933     $ 679,066  
  

 

 

   

 

 

 


VIEW, INC.

Condensed Consolidated Statements of Cash Flow

(unaudited)

(in thousands)

 

     Nine Months Ended
September 30,
 
     2022     2021  

Cash flows from operating activities:

    

Net loss

   $ (247,323   $ (263,907

Adjustments to reconcile net loss to net cash used in operating activities:

    

Depreciation and amortization

     17,797       35,200  

Loss on extinguishment of debt

     —         10,018  

Gain on fair value change, net

     (6,511     (18,426

Stock-based compensation

     58,835       55,207  

Other

     1,008       1,524  

Net changes in operating assets and liabilities

     (28,007     (8,360
  

 

 

   

 

 

 

Net cash used in operating activities

     (204,201     (188,744
  

 

 

   

 

 

 

Cash flows from investing activities:

    

Purchases of property and equipment

     (14,396     (15,419

Disbursement under loan receivable

     (5,160     —    

Acquisition, net of cash acquired

     —         (4,938
  

 

 

   

 

 

 

Net cash used in investing activities

     (19,556     (20,357
  

 

 

   

 

 

 

Cash flows from financing activities:

    

Repayment of revolving debt facility

     —         (257,454

Repayment of other debt obligations

     (735     —    

Payments of obligations under finance leases

     (400     (520

Proceeds from issuance of common stock upon exercise of stock options

     —         403  

Proceeds from reverse recapitalization and PIPE financing

     —         815,184  

Payment of transaction costs related to reverse recapitalization

     —         (41,655

Taxes paid related to the net share settlement of equity awards

     (3,076     —    
  

 

 

   

 

 

 

Net cash (used in) provided by financing activities

     (4,211     515,958  
  

 

 

   

 

 

 

Net (decrease) increase in cash, cash equivalents, and restricted cash

     (227,968     306,857  

Cash, cash equivalents, and restricted cash, beginning of period

     297,543       74,693  
  

 

 

   

 

 

 

Cash, cash equivalents, and restricted cash, end of period

   $ 69,575     $ 381,550  
  

 

 

   

 

 

 

Supplemental disclosure of cash flow information:

    

Cash paid for interest

   $ 55     $ 19,366  

Non-cash investing and financing activities:

    

Payables and accrued liabilities related to purchases of property and equipment

   $ 1,569     $ 2,749  

Conversion of redeemable convertible preferred stock to common stock

   $ —       $ 1,812,678  

Conversion of redeemable convertible preferred stock warrants to common stock warrants

   $ —       $ 7,267  

Common stock issued in exchange for services associated with the reverse recapitalization

   $ —       $ 7,500  

Common stock issued upon vesting of restricted stock units

   $ 6,651     $ 539  


VIEW, INC.

Selected Financials and Reconciliation of GAAP Measures to Non-GAAP Measures

(unaudited)

(in thousands)

 

     Three Months Ended
September 30,
    Nine Months Ended
September 30,
 
     2022     2021     2022     2021  

Revenue

        

Revenue

   $ 23,762     $ 18,884     $ 57,090     $ 45,579  
  

 

 

   

 

 

   

 

 

   

 

 

 

Cost of revenue

        

GAAP cost of revenue

   $ 49,126     $ 51,828     $ 129,219     $ 137,617  

Stock-based compensation

     (418     (1,286     (1,126     (3,461
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP cost of revenue

   $ 48,708     $ 50,542     $ 128,093     $ 134,156  
  

 

 

   

 

 

   

 

 

   

 

 

 

Research and development expense

        

GAAP Research and development expense

   $ 15,554     $ 36,314     $ 56,157     $ 73,924  

Stock-based compensation

     (2,032     (2,670     (3,587     (6,213
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP research and development expense

   $ 13,522     $ 33,644     $ 52,570     $ 67,711  
  

 

 

   

 

 

   

 

 

   

 

 

 

Selling, general, and administrative expense

        

GAAP selling, general, and administrative expense

   $ 41,174     $ 38,210     $ 124,888     $ 94,543  

Stock-based compensation

     (20,776     (18,514     (54,122     (45,533
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP selling, general, and administrative expense

   $ 20,398     $ 19,696     $ 70,766     $ 49,010  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss

        

GAAP net loss

   $ (82,065   $ (94,152   $ (247,323   $ (263,907

Stock-based compensation

     23,226       22,470       58,835       55,207  

Gain on fair value change, net

     (226     (13,078     (6,511     (18,426

Loss on extinguishment of debt

     —         —         —         10,018  
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP net loss

   $ (59,065   $ (84,760   $ (194,999   $ (217,108
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

        

GAAP loss from operations

   $ (82,092   $ (107,468   $ (253,174   $ (260,505

Stock-based compensation

     23,226       22,470       58,835       55,207  
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP loss from operations

     (58,866     (84,998     (194,339     (205,298

Depreciation and amortization

     5,923       21,180       17,797       35,200  
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

   $ (52,943   $ (63,818   $ (176,542   $ (170,098