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Jun 30, 2023
Microvast Q2 2023 Earnings Report
Microvast reported strong year-over-year revenue growth and improved gross margin, led by commercial vehicle production in Europe and record backlog.
Key Takeaways
Microvast reported a 16.4% increase in revenue to $75.0 million, exceeding guidance, and achieved a record backlog of $675.9 million, up 541.9% year-over-year. Gross margin improved from 7.5% to 15.3%. The company is focused on ramping up production in its Huzhou, China facility and commencing trial production in its Clarksville, Tennessee facility in Q4.
Revenue increased 16.4% year-over-year to $75.0 million, exceeding guidance.
Record backlog of $675.9 million, up 541.9% year-over-year.
Gross margin increased to 15.3% from 7.5% in the prior year.
Net loss improved to $26.1 million compared to $44.2 million in the prior year.
Microvast
Microvast
Forward Guidance
The company expects to add to its record backlog, with continued growth in orders and backlog for the rest of the year. For Q3 2023, the Company expects revenue to be in the range of $72 million to $80 million and $348 million to $368 million for the full year 2023. Capital expenditures for the full year are anticipated to be in the range of $180.0 million to $210.0 million
Positive Outlook
- Continued ramp-up of deliveries to customers of 53.5Ah cells from Huzhou, China to meet strong demand
- Trial production in Clarksville, Tennessee remains on track for Q4
- Company expects to add to its record backlog
- Expects continued growth in orders and backlog for the rest of the year
- Revenue to be in the range of $72 million to $80 million for Q3 2023
Challenges Ahead
- Revenue for the full year 2023 between $348 million to $368 million
- Capital expenditures for the full year are anticipated to be in the range of $180.0 million to $210.0 million
- Changes in the highly competitive market
- Risk that the company may not be able to execute its growth strategies or achieve profitability
- The impact of inflation