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Microvast (MVST) - 2024 Q2 - Earnings Call Transcript
MVSTMicrovast (MVST)2024-08-09 17:27
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Financial Data and Key Metrics - Q2 2024 revenue reached a record 83.7million,a1283.7 million, a 12% YoY increase from 75 million in Q2 2023 [5][8] - Gross margin improved to 32.5% in Q2 2024, up from 15.3% in Q2 2023, with adjusted gross margin at 34.3%, a 17 percentage point increase YoY [5][8] - Operating expenses surged to 103.6millioninQ22024,primarilyduetoa103.6 million in Q2 2024, primarily due to a 64.9 million impairment loss related to long-lived assets in the US [9] - GAAP net loss was 78.4millioninQ22024,comparedtoanetlossof78.4 million in Q2 2024, compared to a net loss of 26.1 million in Q2 2023, with adjusted net loss at 64.7million[10]BusinessLineDataandKeyMetrics−EMEAbusinesssawa40164.7 million [10] Business Line Data and Key Metrics - EMEA business saw a 401% YoY growth, accounting for 55% of total revenue, up from 13% a year ago [5][10] - The company secured a 40 million order from a Korean e-Bus customer and entered a strategic partnership with Evoy for electric boat motor systems [5][6] - Backlog at the end of Q2 2024 stood at 278.6million[5]MarketDataandKeyMetrics−EMEAmarketdrovesignificantrevenuegrowth,withtriple−digitpercentagegrowthincommercialvehiclesales[5][8]−ThecompanybegantappingintotheKoreanmarketandexpectscontinuedgrowthinAPACandEMEAregions[5][11]CompanyStrategyandIndustryCompetition−Thecompanyisfocusingonoperationalefficiencyandexpandingitscommercialvehiclefootprint,includingpartnershipsandnewmarketentries[5][6]−AstrategicshifttowardsLFPtechnologyintheUSledtotheimpairmentofcertainassets[9]−Newbatterytechnology,includingthe565amp−hourLFPcellandME6energystoragesolution,isbeingdevelopedtomeetrenewableenergycustomerneeds[12]ManagementCommentaryonOperatingEnvironmentandFutureOutlook−Managementhighlightedchallenges,includingdelaysinlightcommercialvehicleplatformrolloutsinEuropeandcustomerdeliverydelays[6]−ForQ32024,revenueisexpectedtobebetween278.6 million [5] Market Data and Key Metrics - EMEA market drove significant revenue growth, with triple-digit percentage growth in commercial vehicle sales [5][8] - The company began tapping into the Korean market and expects continued growth in APAC and EMEA regions [5][11] Company Strategy and Industry Competition - The company is focusing on operational efficiency and expanding its commercial vehicle footprint, including partnerships and new market entries [5][6] - A strategic shift towards LFP technology in the US led to the impairment of certain assets [9] - New battery technology, including the 565 amp-hour LFP cell and ME6 energy storage solution, is being developed to meet renewable energy customer needs [12] Management Commentary on Operating Environment and Future Outlook - Management highlighted challenges, including delays in light commercial vehicle platform rollouts in Europe and customer delivery delays [6] - For Q3 2024, revenue is expected to be between 85 million and $90 million, with a target gross margin of 25% [11] - EMEA revenue is anticipated to grow over 100% YoY in Q3 2024, driven by increased deliveries to commercial vehicle OEMs [11] Other Important Information - The company is exploring new commercial vehicle markets in the Americas and focusing on financing solutions for the Clarksville facility [11] - The new LFP-based ME6 energy storage solution offers a 30-year lifespan and high energy density, targeting optimized total cost of ownership [12] Q&A Session - No specific questions or answers were provided in the transcript [13]