7/7/25 - $ses - Still my fav R/R in battery

7/7/25 :: VROCKSTAR :: SES
Still my fav R/R in battery

- revenue is scaling
- 1Q revenue tripled 4Q last year
- mgmt's speech on last call was "15-25 mm" for 2025
- their software platform is ramping across core (EV/auto) OEMs and basically anyone (tier 1 battery co's)
- if you look at their PnL R&D is 20 mm. that's what they're burning, really. and they will end year w $200 mm in cash
- so when you consider this thing is $100 mm enterprise value...
- revenue is ramping and they're finding PMF and probably one of the most specialized/ interesting tools on mkt for AI-based battery-chemistry discovery
- this thing is dirt chip
- "yes" the sub $1 ticker risks nasdaq compliance
- "yes" lately this has meant reverse split and no-bueno-stock-px-reaction
- but i'd posit here, that any reverse split wouldn't see that death spiral back to $1 mainly b/c of the big cash component, scaling revenue and most co's that do it... do it out of obligation... and their revenue/ cash burn are going the wrong way (this is the oppose)
- while i had to dump EOSE after digging in
- I come back to these guys as perhaps the more interesting software-capital-light-starting-to-reach-inflection-cash-heavy-balance-sheet plays out there for less than a small fries at MCD

what do you think?

V