With 63 units sold globally for Q1, LiveWire ONE electric motorcycles sales were off 13% and consolidated revenue was reported to be down 25% year-over-year. Electric Motorcycles revenue was down 36% in the first quarter, due to lower unit sales of LiveWire ONE units and the inclusion of Harley-Davidson LiveWire units in Q1 2022 prior to the accounting carve-out.
“LiveWire continues to invest in advancing our core technologies and expanding our product portfolio,” claims Ryan Morrissey, President, LiveWire. “The Del Mar is rapidly moving towards production with the first deliveries in the U.S. targeted for Q3 2023. We’re excited to bring the brand to Europe with two outstanding products, first the LiveWire ONE and then the Del Mar.”
Electric Motorcycles revenue was down 36% in the first quarter, due to lower unit sales of LiveWire ONE units and the inclusion of Harley-Davidson LiveWire units in Q1 2022 prior to the accounting carve-out, notes Morrissey. In line with expectations, increased operating losses versus the first quarter of 2022 were the result of the planned increase in product development investments to advance the electric vehicle systems and deliver the Del Mar. Operating losses also incorporate the added planned costs of standing up a new organization, including growing headcount.
The group’s other brand, STACYC was also off in Q1. STACYC revenue was down 22% in the first quarter, due to our channel partners for electric balance bikes taking a more conservative approach to inventory in response to the macro environment as compared to the first quarter of 2022. STACYC’s operating loss for the first quarter was negative $0.1 million versus operating income of $1.0 million a year ago, driven by lower volumes.
First Quarter 2023 Business Highlights:
• Sold 63 LiveWire ONE electric motorcycles compared to 72 LiveWire ONE electric motorcycles in the prior year.
• Continued development of the Del Mar platform during the quarter to ready Del Mar for production ramp-up with first deliveries targeted for Q3 2023.
• On track to expand European distribution with retail partners in 4 priority markets with sales of LiveWire ONE expected to begin mid-May followed by Del Mar introduction.
2023 Financial Outlook
For the full year 2023, the Company reaffirms its initial guidance and continues to expect:
• Electric Motorcycle unit sales of 750 to 2,000
• LiveWire Group Operating Loss of $115 to $125 million
To support future ongoing operations, the Company has the following available liquidity:
• Cash and cash equivalents as of the end of Q1 2023 of $236 million
• A non-binding $200 million term sheet with majority shareholder