What caused XOS's earnings surprise in 2024?

Xos Inc. experienced a net income surprise of -$18.98 million for the quarter ended December 31, 2024. The company's financial results were negatively impacted by several factors:

1. **Revenue Growth Challenges**: Despite reporting a 37.6% revenue decrease to $11.47 million in the quarter compared to the previous year, analysts had expected $17.79 million. This discrepancy could be attributed to operational inefficiencies or market conditions affecting demand.
2. **Gross Margin Fluctuations**: Xos faced challenges in maintaining consistent gross margins. While the company achieved positive gross margins of approximately 7% and 18% non-GAAP gross margins for the full year 2024, these figures suggest that the company struggled to optimize its cost structure, which could have led to the earnings surprise.

In summary, Xos's earnings surprise was likely a result of a combination of revenue growth challenges and fluctuating gross margins.