Microvast, a leading innovator in lithium-ion battery technology, has released its unaudited condensed consolidated financial results for the second quarter ended June 30, 2024.
Q2 2024 Highlights:
- Revenue: $83.7 million, up 11.6% from $75.0 million in Q2 2023.
- Gross Margin: Increased to 32.5%, compared to 15.3% in Q2 2023; Non-GAAP adjusted gross margin rose to 34.3% from 17.3%.
- Operating Expenses: $103.6 million, a significant rise from $39.0 million in Q2 2023; Adjusted operating expenses were $92.9 million, up from $22.7 million.
- Net Loss: $78.4 million, compared to $26.1 million in Q2 2023; Non-GAAP adjusted net loss was $64.7 million versus $8.3 million.
- Net Loss Per Share: $0.25, compared to $0.08 in Q2 2023; Non-GAAP adjusted net loss per share was $0.21, compared to $0.02.
- Adjusted EBITDA: Negative $55.3 million, compared to negative $4.2 million in Q2 2023.
- Capital Expenditures: $2.9 million, down from $57.7 million in Q2 2023.
- Cash and Investments: $104.5 million as of June 30, 2024, up from $93.8 million at year-end 2023 but down from $195.8 million a year ago.
Reconciliations of gross profit to non-GAAP adjusted gross profit, and net loss to non-GAAP adjusted net loss and non-GAAP adjusted EBITDA are available in the detailed tables at the end of this release.
Q3 2024 Outlook:
- Revenue Growth: Expected increase of 6% to 12% year-over-year, with a revenue target of $85 million to $90 million.
- Gross Margin: Targeting a gross margin of 25%.
- R&D and Product Development: Progressing on new product innovations, including the launch of the 565Ah lithium iron phosphate (LFP) battery for ESS solutions.
- U.S. Market Focus: Shifting to LFP battery systems from NMC solutions at the Clarksville, Tennessee facility and continuing to consolidate U.S. operations there.
- Strategic Initiatives: Evaluating options to improve liquidity, including the sale of non-core real estate assets in the U.S.
- New Projects: Exploring opportunities in the Americas, Canada, APAC, and EMEA to expand in differentiated commercial vehicle markets.
Webcast Information:
Management will host a conference call and webcast on August 8, 2024, at 4:00 p.m. Central Time to discuss the financial results. The live webcast and slide presentation will be available on the Events & Presentations section of Microvast’s investor relations website here. A replay will be accessible after the event.
