Loading...
•
Oct 02, 2022
Enovix Q3 2022 Earnings Report
Enovix made steady operational progress in Fab-1, improved yield, and shipped cells for qualification programs and pre-production builds.
Key Takeaways
Enovix reported third-quarter revenue of $8,000, driven by shipments of qualification batteries from Fab-1 while focusing on yield improvement activities. They also made progress with Strategic Accounts, including a new design win and a cooperation agreement with a major consumer electronics company.
Shipped production cells to 25 OEMs, including three Strategic Accounts.
Announced a non-binding Memorandum of Understanding with a Strategic Account for wearable, mobile, and computing applications.
Grew the design win portion of the revenue funnel by 20%+ QoQ due to progress on a program with a Strategic Account.
Continued to optimize the first production line in Fab-1 for higher yield and throughput, and completed learnings for Gen2.
Forward Guidance
Enovix expects revenue between $6 million and $8 million for full-year 2022. They now expect to use between $130 million and $150 million of cash for full-year 2022 and nominally expect to exit the year with $300 million of cash.
Positive Outlook
- High-energy density is a critical need for product designers in the portable electronics market.
- Batteries often make up a small fraction of the cost of premium portable electronics, which gives us the opportunity to earn premium average selling prices and margins given the value assigned to higher energy density.
- Consumer electronics design and qualification cycles are significantly shorter than other applications such as automotive, enabling quicker volume production and revenue realization.
- Focusing on portable electronics market applications ahead of EVs is the right strategy for any advanced battery company because of the economic and time-to-market advantages.
- Seeding entry into the EV market by sampling batteries to EV OEMs and demonstrating batteries featuring 100% active silicon anode paired with EV-class cathode materials.
Challenges Ahead
- Entering the EV battery market requires billions of dollars of capital to build Gigafactories.
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...