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Sep 30, 2023

Microvast Q3 2023 Earnings Report

Microvast's Q3 2023 earnings demonstrated significant revenue growth and improved gross margins.

Key Takeaways

Microvast reported a strong third quarter with a 107.5% increase in revenue year-over-year, reaching $80.1 million. The company also achieved a record backlog of $678.7 million, up 382.7% year-over-year, and improved gross margin to 22.3%.

Revenue increased by 107.5% year-over-year to $80.1 million.

Record backlog reached $678.7 million, a 382.7% increase year-over-year.

Gross margin improved to 22.3% from 5.2% in Q3 2022.

Net loss decreased to $26.2 million compared to $36.5 million in Q3 2022.

Total Revenue
$80.1M
Previous year: $38.6M
+107.5%
EPS
-$0.03
Previous year: -$0.06
-50.0%
Backlog
$679M
Previous year: $141M
+382.7%
Gross Profit
$17.9M
Previous year: $1.99M
+797.3%
Cash and Equivalents
$67.4M
Previous year: $296M
-77.2%
Free Cash Flow
-$78.7M
Previous year: -$11.9M
+563.5%
Total Assets
$1.02B
Previous year: $973M
+4.5%

Microvast

Microvast

Forward Guidance

Microvast anticipates adding major projects to its backlog and expects revenue to be in the range of $90 million to $100 million in Q4 2023, and $292 million to $302 million for the full year 2023.

Positive Outlook

  • Anticipates adding major projects to its record backlog.
  • Continued growth in orders.
  • Expects revenue to be in the range of $90 million to $100 million in Q4 2023.
  • Full year 2023 revenue expected to be $292 million to $302 million.
  • Continued ramp up of qualified product deliveries to customers of 53.5Ah cells from Huzhou, China.

Challenges Ahead

  • Work towards completion of construction and equipment installation in Clarksville, Tennessee to begin ramp up in Q1 2024.
  • Delivering qualified products into Q2 2024.
  • Begin incremental investment program for the Phase 3.2 additional capacity expansion.
  • New flexible automated production line in Huzhou, China to meet growing demand.
  • No specific negative financial guidance provided.