Ideanomics (IDEX) Reports Q1 Loss of $0.08

Ideanomics (NASDAQ: IDEX) reported Q1 EPS of ($0.08), versus ($0.18) reported last year.

Ideanomics First Quarter 2020 Operating Results

• Revenue for the three months ended March 31, 2020 was $0.4 million as compared to $26.9 million for the same period in 2019, a decrease of $26.6 million, or 99%. The revenue in the first quarter of 2019 included $26.8M from the provision of Digital Asset Management Services, there was no revenue from this source in the current quarter. In the current quarter we recorded US$55,000 from the sale of EV taxis, achieving these sales during a period when almost all economic activity in China was at a standstill is a testament to the dedication and innovation of our China based sales and operations team. The US$55,000 of EV revenue was recorded on a Net basis as under the US GAAP rules relating to revenue recognition it was determined that Ideanomics acted in an agent capacity for these sales rather than as principal. For information purposes only, if we had acted in a Principal capacity the Revenues would have been approximately US$300,000, with a related Cost of Revenue of approximately US$245,000 with a Gross Profit on the EV transactions of US$55,000
• Performance on a sequential basis, revenues saw improvement in the first quarter of $0.4 million versus $63,000 in the fourth quarter ending December 31, 2019.
• In March 2019, the Company entered into an agreement with GTD whereby the Company provided digital asset management services. The revenue was recognized based on the progress of completion of services. The Company recognized $26.6 million for the period ended March 31, 2019 and the remaining $14.1 million was recognized in the remainder of 2019.
• In the first quarter of 2020, the Company is gradually ramping up its business related to EVs and recognized $0.1 million revenue from the sales of EVs. The EV revenues for the current quarter were recorded on an Agency (Net) basis because the Company acted as an agent rather than principal in these transactions.

"While we were impacted through the Covid-19 lockdown in China during Q1, we were able to push forward with developing our pipeline and even processed some deliveries to show our systems and procedures are ready to fulfill orders at scale. To have achieved any deliveries in China during the first quarter is a testament to the determination and tenacity of our teams on the ground," said Alf Poor, CEO of Ideanomics. "We look forward to Q2 and beyond, including an AGM in the summer of this year to showcase both the MEG business and the formal ribbon-cutting on our new 1MM square feet EV center in Qingdao."

For earnings history and earnings-related data on Ideanomics (IDEX) click here.

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