Ideanomics Inc (NASDAQ:IDEX) posted its second quarter 2020 results on Monday that saw the company post the largest revenue from its mobile energy group (MEG) since the company started electric vehicle sales.
Revenue for the three months ended June 30 was $4.7 million, largely driven by its Sales to Financing to Charging (S2F2C) business model gaining traction in the electric vehicle sector, according to the New York-based firm.
"We are very pleased with the pace of our sales growth in the new energy vehicle industry," said Alf Poor, CEO of Ideanomics in a statement accompanying the results. "As the rate of global electric vehicle (EV) adoption continues to rise and technology advancements make EVs more accessible, our S2F2C business model is positioned to add value for commercial fleet operators in all areas of their business."
READ: Ideanomics says Harvest Global Investments and affiliate Harvest Alternative Investments will advise company
The technology company’s sales-to-financing division's four key business segments are built around commercial EV sales: lease financing fund supported sales; cash and non-fund sales; Qingdao EV hub sales; and Treeletrik and ex-China sales.
The charging division's four key business segments are focused on energy sales: pre-paid electricity sales for commercial EV fleets; EV fast-charging network sales; 5G Smarty City energy sales; and consolidated energy purchasing card with China Union Pay.
The firm also put up gross profits of $255,000, or a gross margin of 4.9%, while its operating expense was $16.5 million as compared to $8 million during the same period a year prior due to a one-time non-cash impairment charge of $6.2 million as the firm terminated its New York office lease. Excluding the impairment charge, operating expenses for the second quarter was $10.3 million.
Loss from operations came in at $16.3 million compared to $5.7 million in the prior period.
In a statement, Ideonomics said its management “continues to look for ways to reduce costs and allocate spending to the projects with the highest rate of return.”
Ideanomics ended the quarter with $36 million in cash.
Contact Angela at [email protected]
Follow her on Twitter @AHarmantas