NASDAQ:MVST Microvast Q2 2024 Earnings Report $2.05 +0.17 (+9.04%) Closing price 05/2/2025 04:00 PM EasternExtended Trading$2.06 +0.01 (+0.24%) As of 05/2/2025 07:59 PM Eastern Extended trading is trading that happens on electronic markets outside of regular trading hours. This is a fair market value extended hours price provided by Polygon.io. Learn more. Earnings HistoryForecast Microvast EPS ResultsActual EPS-$0.25Consensus EPS -$0.08Beat/MissMissed by -$0.17One Year Ago EPSN/AMicrovast Revenue ResultsActual Revenue$83.68 millionExpected Revenue$90.71 millionBeat/MissMissed by -$7.03 millionYoY Revenue GrowthN/AMicrovast Announcement DetailsQuarterQ2 2024Date8/9/2024TimeN/AConference Call DateThursday, August 8, 2024Conference Call Time5:00PM ETUpcoming EarningsMicrovast's Q1 2025 earnings is scheduled for Thursday, May 8, 2025, with a conference call scheduled on Monday, May 12, 2025 at 5:00 PM ET. Check back for transcripts, audio, and key financial metrics as they become available.Conference Call ResourcesConference Call AudioConference Call TranscriptSlide DeckPress Release (8-K)Quarterly Report (10-Q)Earnings HistoryCompany ProfileSlide DeckFull Screen Slide DeckPowered by Microvast Q2 2024 Earnings Call TranscriptProvided by QuartrAugust 8, 2024 ShareLink copied to clipboard.There are 3 speakers on the call. Operator00:00:00Thank you for standing by. This is the conference operator. Welcome to the MicroVast Second Quarter 2024 Earnings Call. As a reminder, all participants are in a listen only mode. And the conference is being recorded. Operator00:00:14I would now like to turn the conference to Mr. Yasser Ali, Chief Financial Officer of MicroVas Holdings. Please go ahead. Speaker 100:00:26Thank you, operator, and thank you, everyone, for joining us today. Joining me on today's call is Mr. Yang Wu, Founder, Chairman and CEO of MicroVast Holdings. Mr. Wu will start off with a high level overview of the quarter before providing some operational updates. Speaker 100:00:47I will then discuss our financials in more detail before handing it back to Mr. Wu to wrap up with our Q2 2024 outlook. Ahead of this call, MicroVest issued its 2nd quarter earnings press release, which can be found on the Investor Relations section of the company's website, ir. Microvast.com. In addition, we have posted a slide presentation the company's website to accompany management's prepared remarks. Speaker 100:01:24As a reminder, please note that statements made in this call may include forward looking statements and based on current expectations and assumptions. They should not be relied upon as representative of views for subsequent dates, and we undertake no obligation to revise or publicly release the results of any revision to these forward looking statements due to new information or future events. Actual results may differ materially from that could affect our financial results, please refer to our filings with the SEC. We may also discuss non GAAP financial measures during this call. These measures should be considered in addition to and not as a substitute for or in isolation from GAAP results. Speaker 100:02:32These non GAAP measures have been reconciled to their most comparable GAAP metrics in the tables included at the end of our press release. After the conclusion of this call, a webcast replay will be available on the Investor Relations section of MicroVast's website. And now, I will turn the call over to Mr. Wu for opening remarks. Speaker 200:02:57Thank you, and thank you, everyone, for joining today's call. Please turn to Slide 3 as I cover a few highlights from the Q2. The business posted record 2nd quarter revenue with 12% growth year over year in Q2 2024, delivering revenue of RMB83,700,000. We achieved this growth while maintaining a gross margin of 32.5 percent a 17.2% improvement year over year. This incredible growth comes largely from sales increases in EMEA Business year over year. Speaker 200:03:43We saw triple digit percentage growth of 4 0 1 percent for EMEA. Please join me on Slide 5. The company was successful in further expanding its commercial vehicle footprint. We have entered into a strategic partnership with Invoy, a Norwegian Pioneer in electric boat motor system. We have begun to tap into the Korean market and have secured a $40,000,000 order from a Korean e Bus customer. Speaker 200:04:18We closed the Q2 with a backlog of $278,600,000 and continue to strive for operational efficiency. The company posted significant improvements to adjusted gross margin at 34.3%, a 17 percentage point increase year over year. The company posted yet another banner quarter and we expect continued growth and successes. So this also come with challenges. In addition, to decelerate the rollout of light commercial vehicle platforms in European market, we experienced delay in CV customer deliveries push into second half of this year. Speaker 200:05:09Turning to Slide 6. We have some exciting new customer globally in various commercial vehicle segments. These customers will utilize Gen4 Packs and MV iPac with our 53.amp hour and a 48 amp hour cell technology. While we aren't quite ready to announce the projects publicly, We have made significant progress with the customers on product ramp up and prototype development. Additionally, we are excited to be working with Invoy on e boat motor systems. Speaker 200:05:50I would now like to turn the call over to Mr. Ali to discuss our financials in more detail. Speaker 100:05:58Thank you, Mr. Wu, and thank you, everyone, for tuning in. I'll spend the next few minutes discussing our Q2 2024 financial results. Please turn to Slide 8, and I will summarize the main line items from our Q2 P and L. We booked a record 2nd quarter with Q2 revenue of $83,700,000 an increase of 12% from $75,000,000 in Q2 2023. Speaker 100:06:30This growth was driven primarily by strong sales demand in EMEA markets for commercial vehicles as OEMs continue to adopt our technologies. Our gross margin improved to 32.5% in Q2 2024 compared to 15.3% in Q2 2023 after adjusting for non cash settled share based compensation expense and cost of sales, adjusted gross margin increased to 34 point 3% in Q2 2024 compared to 17.3% in Q2 2023. That's a 17 percentage point improvement. This increase in gross margin was due to a combination of factors, including better economies of scale through improving utilization, more favorable product mix and lower raw material prices. Operating expenses were $103,600,000 in Q2 2024 compared to $39,000,000 in Q2 2023, an increase of 166 percent from the prior year period. Speaker 100:07:57This increase in operating expense is mainly due to impairment loss of the long lived assets of $129,700,000 of which was for impairment losses in the U. S. As we decided to seize use of certain buildings and facilities under our strategic shift towards LFP technology in the U. S. Without adjustments or impairment loss, our operating expense would have been $38,700,000 in Q2 2024. Speaker 100:08:38After adjusting for non cash SBC expense in SG and A, our adjusted operating expense in Q2 2024 were $92,900,000 compared to $22,700,000 in Q2 2023, an increase of $70,200,000 mainly due to the impairment loss mentioned just now. GAAP net loss was $78,400,000 in Q2 2024 compared to net loss of $26,100,000 in Q2 2023. After adjusting for non cash SBC expense and changes in fair value of our warrant liability and convertible loan with shareholder, adjusted net loss was $64,700,000 in Q2 2024 compared to an adjusted net loss of $8,300,000 in Q2 2023. The impact of these adjustments is shown in Slide 9 and reconciliations of these non GAAP metrics to the most comparable GAAP metrics are included in the tables at the end of our earnings press release. Slide 10 shows the geographic breakdown of our revenue for Q2 2024 compared to the prior year period. Speaker 100:10:15As you can see, we booked outstanding sales increases. Our EMEA business was up by 4 0 1% year over year and accounted for 55% of our revenue, up from 13% a year ago as key customers began their vehicle ramps. And with that, I will turn it back over to Mr. Wu to briefly go over our outlook for the Q3. Speaker 200:10:42Thank you. Please turn to Slide 12, which provides a summary outlook for upcoming months. For the Q3, we expect revenue to be in the range of $85,000,000 to $90,000,000 up 9% from Q3 a year ago at the midpoint. This anticipated growth is primarily expected to be generated through increased deliveries to our APAC and EMEA commercial vehicle customers. We continue to strive for operational efficiencies, and we are maintaining our target gross margin of 25%. Speaker 200:11:27For APAC, we will be delivering 21 ampourer cells from our Huzhou facility. We plan to do this while we also targeting growth in Southeast Asia and continuing R and D progress on new upcoming products. In EMEA, we anticipate Q3 2024 revenue to grow more than 100% year over year and expect to ramp up the series deliveries to the European commercial vehicle OEMs. For the Americas, we continue to focus on financing solutions to compete at Clarksville. While exploring new commercial vehicle markets in the Americas. Speaker 200:12:17Turning to Slide 13. We are excited to launch our new battery technology, the 5 65 amp hour LFP cell. This is the newest product line in our extensive battery portfolio. The 565 ampoule LFP cell provides a host of specifications designed to meet the needs of renewable energy customers, including lower cost, enhanced reliability and a longer lifespan. Our domestically produced LFP batteries are expected to qualify for Aira Section 45X, enhancing their economic attractiveness for Microbus and our customers. Speaker 200:13:07Please join me on Slide 14, where you can see our new LFP based ME6 Energy Storage solution. This new product offers a compelling combination of benefits, including up to 30 year lifespan with Microvast's new overhaulable battery design, boosting a high energy density offering a 6 megawatt hour in a compact 21 foot container, high efficiency and optimized total cost ownership with a robust design, we are excited to work to bring this product to market. Thank you all for joining us today. We look forward to updating you on our progress again next quarter.Read morePowered by Conference Call Audio Live Call not available Earnings Conference CallMicrovast Q2 202400:00 / 00:00Speed:1x1.25x1.5x2x Earnings DocumentsSlide DeckPress Release(8-K)Quarterly report(10-Q) Microvast Earnings HeadlinesIs Microvast Holdings, Inc. (MVST) Among the Most Promising EV Battery Stocks According to Wall Street Analysts?May 1 at 12:42 AM | insidermonkey.comIs Microvast Holdings, Inc. (MVST) Among the Most Promising EV Battery Stocks According to Wall Street Analysts?April 30 at 11:43 PM | msn.comElon Set to Shock the World by May 1st ?Tech legend Jeff Brown recently traveled to the industrial zone of South Memphis to investigate what he believes will be Elon’s greatest invention ever… Yes, even bigger than Tesla or SpaceX.May 3, 2025 | Brownstone Research (Ad)Microvast Schedules First Quarter Earnings CallApril 30 at 5:00 PM | globenewswire.comMicrovast Holdings Names Carl Schultz CFOApril 11, 2025 | nasdaq.comMicrovast, Inc.: Microvast Holdings, Inc. Appoints Pat Schultz as Chief Financial OfficerApril 11, 2025 | finanznachrichten.deSee More Microvast Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like Microvast? Sign up for Earnings360's daily newsletter to receive timely earnings updates on Microvast and other key companies, straight to your email. Email Address About MicrovastMicrovast (NASDAQ:MVST) provides battery technologies for electric vehicles and energy storage solutions. The company offers a range of cell chemistries, such as lithium titanate oxide, lithium iron phosphate, and nickel manganese cobalt version 1 and 2. It also designs, develops, and manufactures battery components, such as cathode, anode, electrolyte, and separator. In addition, the company offers battery solutions for commercial vehicles and energy storage systems. Its commercial vehicle markets cover buses, trains, mining trucks, marine and port vehicles, and automated guided and specialty vehicles, as well as light, medium, heavy-duty trucks. It operates China, rest of the Asia Pacific, Europe, and the United States. Microvast Holdings, Inc. was incorporated in 2006 and is headquartered in Stafford, Texas.View Microvast ProfileRead more More Earnings Resources from MarketBeat Earnings Tools Today's Earnings Tomorrow's Earnings Next Week's Earnings Upcoming Earnings Calls Earnings Newsletter Earnings Call Transcripts Earnings Beats & Misses Corporate Guidance Earnings Screener Earnings By Country U.S. Earnings Reports Canadian Earnings Reports U.K. Earnings Reports Latest Articles Amazon Earnings: 2 Reasons to Love It, 1 Reason to Be CautiousMeta Takes A Bow With Q1 Earnings - Watch For Tariff Impact in Q2Palantir Earnings: 1 Bullish Signal and 1 Area of ConcernMicrosoft Crushes Earnings, What’s Next for MSFT Stock?Qualcomm's Earnings: 2 Reasons to Buy, 1 to Stay AwayAMD Stock Signals Strong Buy Ahead of EarningsAmazon's Earnings Will Make or Break the Stock's Comeback Upcoming Earnings Palantir Technologies (5/5/2025)Vertex Pharmaceuticals (5/5/2025)Realty Income (5/5/2025)Williams Companies (5/5/2025)CRH (5/5/2025)Advanced Micro Devices (5/6/2025)American Electric Power (5/6/2025)Constellation Energy (5/6/2025)Marriott International (5/6/2025)Energy Transfer (5/6/2025) Get 30 Days of MarketBeat All Access for Free Sign up for MarketBeat All Access to gain access to MarketBeat's full suite of research tools. 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There are 3 speakers on the call. Operator00:00:00Thank you for standing by. This is the conference operator. Welcome to the MicroVast Second Quarter 2024 Earnings Call. As a reminder, all participants are in a listen only mode. And the conference is being recorded. Operator00:00:14I would now like to turn the conference to Mr. Yasser Ali, Chief Financial Officer of MicroVas Holdings. Please go ahead. Speaker 100:00:26Thank you, operator, and thank you, everyone, for joining us today. Joining me on today's call is Mr. Yang Wu, Founder, Chairman and CEO of MicroVast Holdings. Mr. Wu will start off with a high level overview of the quarter before providing some operational updates. Speaker 100:00:47I will then discuss our financials in more detail before handing it back to Mr. Wu to wrap up with our Q2 2024 outlook. Ahead of this call, MicroVest issued its 2nd quarter earnings press release, which can be found on the Investor Relations section of the company's website, ir. Microvast.com. In addition, we have posted a slide presentation the company's website to accompany management's prepared remarks. Speaker 100:01:24As a reminder, please note that statements made in this call may include forward looking statements and based on current expectations and assumptions. They should not be relied upon as representative of views for subsequent dates, and we undertake no obligation to revise or publicly release the results of any revision to these forward looking statements due to new information or future events. Actual results may differ materially from that could affect our financial results, please refer to our filings with the SEC. We may also discuss non GAAP financial measures during this call. These measures should be considered in addition to and not as a substitute for or in isolation from GAAP results. Speaker 100:02:32These non GAAP measures have been reconciled to their most comparable GAAP metrics in the tables included at the end of our press release. After the conclusion of this call, a webcast replay will be available on the Investor Relations section of MicroVast's website. And now, I will turn the call over to Mr. Wu for opening remarks. Speaker 200:02:57Thank you, and thank you, everyone, for joining today's call. Please turn to Slide 3 as I cover a few highlights from the Q2. The business posted record 2nd quarter revenue with 12% growth year over year in Q2 2024, delivering revenue of RMB83,700,000. We achieved this growth while maintaining a gross margin of 32.5 percent a 17.2% improvement year over year. This incredible growth comes largely from sales increases in EMEA Business year over year. Speaker 200:03:43We saw triple digit percentage growth of 4 0 1 percent for EMEA. Please join me on Slide 5. The company was successful in further expanding its commercial vehicle footprint. We have entered into a strategic partnership with Invoy, a Norwegian Pioneer in electric boat motor system. We have begun to tap into the Korean market and have secured a $40,000,000 order from a Korean e Bus customer. Speaker 200:04:18We closed the Q2 with a backlog of $278,600,000 and continue to strive for operational efficiency. The company posted significant improvements to adjusted gross margin at 34.3%, a 17 percentage point increase year over year. The company posted yet another banner quarter and we expect continued growth and successes. So this also come with challenges. In addition, to decelerate the rollout of light commercial vehicle platforms in European market, we experienced delay in CV customer deliveries push into second half of this year. Speaker 200:05:09Turning to Slide 6. We have some exciting new customer globally in various commercial vehicle segments. These customers will utilize Gen4 Packs and MV iPac with our 53.amp hour and a 48 amp hour cell technology. While we aren't quite ready to announce the projects publicly, We have made significant progress with the customers on product ramp up and prototype development. Additionally, we are excited to be working with Invoy on e boat motor systems. Speaker 200:05:50I would now like to turn the call over to Mr. Ali to discuss our financials in more detail. Speaker 100:05:58Thank you, Mr. Wu, and thank you, everyone, for tuning in. I'll spend the next few minutes discussing our Q2 2024 financial results. Please turn to Slide 8, and I will summarize the main line items from our Q2 P and L. We booked a record 2nd quarter with Q2 revenue of $83,700,000 an increase of 12% from $75,000,000 in Q2 2023. Speaker 100:06:30This growth was driven primarily by strong sales demand in EMEA markets for commercial vehicles as OEMs continue to adopt our technologies. Our gross margin improved to 32.5% in Q2 2024 compared to 15.3% in Q2 2023 after adjusting for non cash settled share based compensation expense and cost of sales, adjusted gross margin increased to 34 point 3% in Q2 2024 compared to 17.3% in Q2 2023. That's a 17 percentage point improvement. This increase in gross margin was due to a combination of factors, including better economies of scale through improving utilization, more favorable product mix and lower raw material prices. Operating expenses were $103,600,000 in Q2 2024 compared to $39,000,000 in Q2 2023, an increase of 166 percent from the prior year period. Speaker 100:07:57This increase in operating expense is mainly due to impairment loss of the long lived assets of $129,700,000 of which was for impairment losses in the U. S. As we decided to seize use of certain buildings and facilities under our strategic shift towards LFP technology in the U. S. Without adjustments or impairment loss, our operating expense would have been $38,700,000 in Q2 2024. Speaker 100:08:38After adjusting for non cash SBC expense in SG and A, our adjusted operating expense in Q2 2024 were $92,900,000 compared to $22,700,000 in Q2 2023, an increase of $70,200,000 mainly due to the impairment loss mentioned just now. GAAP net loss was $78,400,000 in Q2 2024 compared to net loss of $26,100,000 in Q2 2023. After adjusting for non cash SBC expense and changes in fair value of our warrant liability and convertible loan with shareholder, adjusted net loss was $64,700,000 in Q2 2024 compared to an adjusted net loss of $8,300,000 in Q2 2023. The impact of these adjustments is shown in Slide 9 and reconciliations of these non GAAP metrics to the most comparable GAAP metrics are included in the tables at the end of our earnings press release. Slide 10 shows the geographic breakdown of our revenue for Q2 2024 compared to the prior year period. Speaker 100:10:15As you can see, we booked outstanding sales increases. Our EMEA business was up by 4 0 1% year over year and accounted for 55% of our revenue, up from 13% a year ago as key customers began their vehicle ramps. And with that, I will turn it back over to Mr. Wu to briefly go over our outlook for the Q3. Speaker 200:10:42Thank you. Please turn to Slide 12, which provides a summary outlook for upcoming months. For the Q3, we expect revenue to be in the range of $85,000,000 to $90,000,000 up 9% from Q3 a year ago at the midpoint. This anticipated growth is primarily expected to be generated through increased deliveries to our APAC and EMEA commercial vehicle customers. We continue to strive for operational efficiencies, and we are maintaining our target gross margin of 25%. Speaker 200:11:27For APAC, we will be delivering 21 ampourer cells from our Huzhou facility. We plan to do this while we also targeting growth in Southeast Asia and continuing R and D progress on new upcoming products. In EMEA, we anticipate Q3 2024 revenue to grow more than 100% year over year and expect to ramp up the series deliveries to the European commercial vehicle OEMs. For the Americas, we continue to focus on financing solutions to compete at Clarksville. While exploring new commercial vehicle markets in the Americas. Speaker 200:12:17Turning to Slide 13. We are excited to launch our new battery technology, the 5 65 amp hour LFP cell. This is the newest product line in our extensive battery portfolio. The 565 ampoule LFP cell provides a host of specifications designed to meet the needs of renewable energy customers, including lower cost, enhanced reliability and a longer lifespan. Our domestically produced LFP batteries are expected to qualify for Aira Section 45X, enhancing their economic attractiveness for Microbus and our customers. Speaker 200:13:07Please join me on Slide 14, where you can see our new LFP based ME6 Energy Storage solution. This new product offers a compelling combination of benefits, including up to 30 year lifespan with Microvast's new overhaulable battery design, boosting a high energy density offering a 6 megawatt hour in a compact 21 foot container, high efficiency and optimized total cost ownership with a robust design, we are excited to work to bring this product to market. Thank you all for joining us today. We look forward to updating you on our progress again next quarter.Read morePowered by