Core Viewpoint - The bullish rating on Enovix (NASDAQ: ENVX) is reiterated, driven by advancements in mass production capacity expected in Q4'24, indicating that commercialization is becoming more attainable [1]. Group 1: Company Insights - Enovix is making significant progress in its mass production capabilities, which is crucial for its commercialization efforts [1]. - The company is positioned within the technology, innovation, and sustainability sectors, focusing on emerging technologies and sustainable investing [1]. Group 2: Analyst Background - The analyst employs a "First Principles" approach to investment analysis, breaking down complex problems to identify overlooked opportunities [1]. - The analyst has a strong background in investment, private equity, and venture capital, with a proven track record of delivering strong returns [1].

UNITED STATES OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from__________to __________ Enovix Corporation Washington, D.C. 20549 FORM 10-K x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 SECURITIES AND EXCHANGE COMMISSION For the fiscal year ended December 29, 2024 Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securitie ...

Company Overview - Enovix is a Silicon Valley-based battery design and manufacturing firm specializing in 100% silicon anode lithium-ion batteries for consumer electronics [1] - The primary fabrication line, Fab2, located in Malaysia, exited testing in January 2025 and is now prepared for large-scale order fulfillment [1] Leadership and Background - The founder of Building Benjamins, Benjamin Halliburton, has a distinguished investment background, having founded Tradition Capital Management in 2000 and received accolades such as "PSN Manager of the Decade" for All-Cap in the 2000s and for Dividend Value in the 2010s [1] - Halliburton began his investment career at Merrill Lynch in 1986 and has continuously been involved in investing, earning an MBA with a focus on finance from Duke's Fuqua School of Business in 1990 [1] - He also holds the Chartered Financial Analyst designation and was recognized as the top-performing portfolio manager at Brundage, Story and Rose during the 1990s bull market [1]

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Financial Data and Key Metrics Changes - In Q4 2024, the company reported revenues of $9.6 million, which is near the high end of their guidance range. For the full year 2024, total revenues reached $23.1 million, a significant increase from $7.6 million in 2023, representing a year-over-year growth of approximately 204% [10][19]. - Non-GAAP EBITDA for Q4 was a loss of $11.7 million, which was better than the guidance of a loss between $19 million and $25 million. Non-GAAP EPS also showed a loss of $0.11, exceeding the guidance of a loss between $0.15 and $0.21 [19][21]. - The company ended the quarter with approximately $273 million in cash and cash equivalents, with capital expenditures (CapEx) in Q4 amounting to $16.4 million [20][21]. Business Line Data and Key Metrics Changes - The company completed its top manufacturing and product objectives for the quarter, including the Site Acceptance Testing (SAT) of its High-Volume Manufacturing (HVM) line and shipping the first samples of EX-2M to customers [11][12]. - The ramp-up of Fab2 in Malaysia was highlighted as a pivotal accomplishment, with yields exceeding those achieved in Fab1, indicating readiness for smartphone mass production by Q4 2025 [13][14]. Market Data and Key Metrics Changes - The company is focusing on segments with significant battery constraints, such as smart eyewear and the defense industry, which have emerged as unique growth opportunities. The defense sector has seen increased interest from drone manufacturers and defense suppliers since the US elections in November [15][16]. - The company has secured a purchase order from a marquee smart eyewear customer and is developing custom cells for this segment [12][15]. Company Strategy and Development Direction - The company is prioritizing smartphone markets while also exploring opportunities in smart eyewear and defense, where its technology offers a competitive advantage due to battery constraints [15][16]. - The design phase for EX-3M has officially begun, incorporating feedback from lead OEMs to align with their evolving requirements [18]. Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential upside from the defense industry and noted that the demand for higher capacity batteries is driven by applications such as AI, which consume significant energy [57][58]. - The company is confident in its manufacturing readiness and customer interest, with multiple customer audits ongoing [14][22]. Other Important Information - The company is in the process of optimizing its manufacturing lines to improve efficiency and throughput as it gains more visibility into customer demand [51][52]. - The company is also focused on expanding its capacity in response to customer qualifications and market demand, with plans to add additional manufacturing lines as needed [26][28]. Q&A Session Summary Question: What are the implications of new policies and tariffs on Enovix's operations? - Management indicated that there has been increased interest from defense and industrial customers in the US, and the company's manufacturing locations in Korea and Malaysia are favorable for shipping to the US, thus not seeing much effect from tariffs [24]. Question: What is the current guidance for adding manufacturing lines and capacity? - The company has completed SAT of its HVM line in Malaysia, which has a capacity of approximately 9.5 million to 10 million batteries per year. They are planning to add up to four lines in total [26][27]. Question: Can you provide insights on the growth profile of a drone customer? - While specific customer details could not be disclosed, management noted significant interest in high-rate batteries for applications requiring fast discharge, indicating a growing market [33][34]. Question: What is the status of the EX-2M and EX-3M models? - The EX-2M has received positive feedback from OEMs, and the design phase for EX-3M has commenced, focusing on increased energy density and customer requirements [41][43]. Question: How quickly can the company ramp up production for new lines? - The company is stockpiling long lead time items to reduce the timeline for adding new lines, with expectations that the second line will be set up significantly faster than the first [97][98]. Question: What is the expected CapEx for 2025? - The company has budgeted between $30 million to $40 million for CapEx in 2025, focusing on long lead time items and additional manufacturing capacity [110]. Question: How does the sales cycle work for cellphones? - The sales cycle involves working closely with customers to meet their requirements, with the expectation that cells can be qualified for multiple models over time, extending into 2026 [120][124].

Group 1 - Enovix Corporation reported a quarterly loss of $0.11 per share, better than the Zacks Consensus Estimate of a loss of $0.17, and improved from a loss of $0.28 per share a year ago, representing an earnings surprise of 35.29% [1] - The company posted revenues of $9.72 million for the quarter ended December 2024, exceeding the Zacks Consensus Estimate by 8.63%, and up from $7.38 million in the same quarter last year [2] - Enovix Corporation has surpassed consensus EPS estimates three times over the last four quarters, indicating a positive trend in earnings performance [2] Group 2 - The stock has added approximately 2.7% since the beginning of the year, while the S&P 500 has gained 4.2%, suggesting underperformance relative to the broader market [3] - The current consensus EPS estimate for the upcoming quarter is -$0.15 on revenues of $5.45 million, and for the current fiscal year, it is -$0.62 on revenues of $36.44 million [7] - The Zacks Industry Rank for Alternative Energy - Other is in the top 36% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Investor Presentation February 2025 Safe Harbor Statement Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, including, without limitation, statements regarding our ability to build and scale our advanced silicon-anode lithium-ion battery; our production and commercialization timeline; our ability to meet milestones and deliver on our objectives and expectations; our ability to maintain a comp ...

Financial Performance - Fourth quarter 2024 revenues reached a record $9.7 million, up 30% year-over-year, with full year revenues of $23.1 million, a 202% increase from $7.6 million in 2023[4] - Revenue for Q4 2024 was $9.717 million, an increase of 31.5% compared to $7.381 million in Q4 2023[38] - Revenue for fiscal year 2024 was $23,074,000, significantly up from $7,644,000 in fiscal year 2023, indicating a growth of approximately 201%[47] - The GAAP net loss attributable to the company was $37.5 million in Q4 2024, compared to $22.5 million in the previous quarter[17] - Net loss attributable to Enovix for Q4 2024 was $37.465 million, compared to a loss of $59.977 million in Q4 2023[38] - Net loss attributable to Enovix for fiscal year 2024 was $222,241,000, compared to $214,071,000 in fiscal year 2023, representing an increase in loss of approximately 5.5%[45] - The company reported a GAAP net loss per share of $1.27 for fiscal year 2024, compared to $1.35 for fiscal year 2023, reflecting an improvement of approximately 5.9%[48] Operational Highlights - The company shipped early engineering samples of smartphone batteries to its lead OEM, confirming successful safety tests and expanding engagements to 7 of the top 8 smartphone OEMs[4] - A landmark prepaid purchase order was secured from a global AI technology leader for next-generation smart eyewear batteries, indicating strong demand in the emerging market[4] - The company completed Site Acceptance Testing for its High-Volume Manufacturing line in Malaysia, a key milestone for scaling production[4] - The company is focused on mass production of smartphone batteries by late 2025, supported by strategic partnerships and purchase orders[9] - The company anticipates commercial shipments of batteries for smart eyewear and other IoT products by mid-2025[30] - Enovix expects to commence mass production in 2025 and achieve full utilization of the first HVM line in 2026[30] - The company plans to finalize the EX-3M design in Q1 2025, with expectations for improved energy density and cycle life[30] Financial Metrics - Year-end cash and cash equivalents totaled $272.9 million, following approximately $107 million in net proceeds from an equity offering[20] - Cash and cash equivalents increased to $272.869 million as of December 29, 2024, up from $233.121 million as of December 31, 2023[36] - Cash and cash equivalents at the end of the period increased to $274,691,000 from $235,123,000, marking a rise of approximately 17%[40] - Net cash used in operating activities for fiscal year 2024 was $(108,633,000), slightly higher than $(104,636,000) in fiscal year 2023, indicating a 3.8% increase in cash outflow[40] - Free Cash Flow for fiscal year 2024 was $(184,821,000), compared to $(166,431,000) in fiscal year 2023, showing an increase in cash outflow of approximately 11%[46] Cost Management - Adjusted EBITDA loss improved to $11.7 million in Q4 2024, compared to a loss of $21.6 million in the previous quarter[18] - Adjusted EBITDA for fiscal year 2024 was $(82,794,000), an improvement from $(102,415,000) in fiscal year 2023, reflecting a reduction in losses of about 19.2%[45] - Stock-based compensation expense for fiscal year 2024 was $57,621,000, down from $69,093,000 in fiscal year 2023, indicating a decrease of about 16.7%[48] - The company aims to manage expenses effectively to realize annual cost savings goals while capitalizing on industry trends[30] - Total operating expenses for Q4 2024 were $35.568 million, down from $52.389 million in Q4 2023[38] Asset Management - Total assets decreased to $527.169 million as of December 29, 2024, from $564.304 million as of December 31, 2023[36] - The company incurred capital expenditures of $76,188,000 in fiscal year 2024, compared to $61,795,000 in fiscal year 2023, representing an increase of approximately 23%[46] - GAAP gross margin for fiscal year 2024 was $(2,045,000), an improvement from $(55,417,000) in fiscal year 2023, indicating a significant reduction in losses[47] - Gross margin improved to $1.052 million in Q4 2024 from a loss of $12.388 million in Q4 2023[38] Market Outlook - The smart eyewear market is projected to reach multiple tens of millions of units by 2028, presenting a significant growth opportunity for the company[4] - For Q1 2025, the company expects revenue between $3.5 million and $5.5 million, with a GAAP EPS loss projected between $0.23 and $0.29[21]

Core Insights - Enovix Corporation reported record revenues for Q4 2024 at $9.7 million, a 202% increase from $7.6 million in 2023, and full-year revenues reached $23.1 million [5][13] - The company is focused on launching its first smartphone battery and converting its IoT pipeline into contracted backlog, with strong demand for high-energy-density solutions [1][2] - Enovix is strategically investing in the AI-enabled smart eyewear market, anticipating significant growth driven by advancements in hardware and software ecosystems [3] Financial Performance - Q4 2024 revenues were $9.7 million, up more than 30% year-over-year, with a gross margin of $1.1 million, marking the company's first positive gross margin [5][13] - Full-year 2024 revenues were $23.1 million, a significant increase from $7.6 million in 2023 [5][13] - The company ended 2024 with cash and cash equivalents of $272.9 million, following net proceeds of approximately $107 million from an equity offering [18] Manufacturing and Product Development - Enovix completed Site Acceptance Testing (SAT) for its High-Volume Manufacturing (HVM) line in Malaysia, a key milestone for scaling production [7] - The company shipped early engineering samples of its EX-2M battery to customers, confirming successful safety tests [5][11] - Enovix is on track for commercial smartphone battery launches in 2025, with engagements expanding to 7 of the top 8 smartphone OEMs [5][8] Market Trends and Opportunities - The demand for batteries with capacities near 7,000 milliamp-hours is increasing among OEMs to support next-generation AI applications [4] - The smart eyewear market is projected to reach tens of millions of units by 2028, presenting a significant opportunity for Enovix [3] - There is a growing interest from defense sector customers seeking battery solutions that comply with supply chain requirements, contributing to revenue growth [6] Strategic Partnerships and Customer Engagement - Enovix has secured a landmark prepaid purchase order from a global technology leader in AI for next-generation smart eyewear [5] - The company is actively pursuing customer opportunities in IoT, focusing on segments where its technology has a competitive advantage [9] - Enovix is advancing development agreements with major automotive OEMs, aligning with its capital-efficient strategy [10]

Group 1 - Michael Wiggins De Oliveira is an inflection investor, focusing on buying undervalued companies at pivotal moments when their profitability is expected to improve significantly over the next year [1] - The investment strategy emphasizes technology and the Great Energy Transition, including uranium, with a concentrated portfolio of approximately 15 to 20 stocks and an average holding period of 18 months [1] - Michael has over 10 years of experience in analyzing companies, particularly in the tech and energy sectors, and has built a following of over 40,000 on Seeking Alpha [2] Group 2 - Michael leads the investing group Deep Value Returns, which offers insights through a concentrated portfolio of value stocks, timely updates on stock picks, and a weekly webinar for live advice [2] - The Deep Value Returns group provides support for both new and experienced investors, fostering an active and vibrant community accessible via chat [2]