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Dec 31, 2021

Microvast Q4 2021 Earnings Report

Microvast's financial performance saw revenue growth but was impacted by increased operating expenses and product warranty costs.

Key Takeaways

Microvast reported a 39% increase in revenue for Q4 2021 compared to Q4 2020, but experienced a net loss due to increased operating expenses and a reduction in gross profit. The company's backlog grew significantly, and it ended the year with a strong cash position.

Revenue increased by 39% to $66.8 million in Q4 2021 compared to $48.1 million in Q4 2020.

Gross profit decreased to $1.15 million in Q4 2021 from $8.7 million in Q4 2020.

Net loss was $46.6 million in Q4 2021, compared to a net loss of $4.6 million in Q4 2020.

Operating expenses increased to $52.2 million in Q4 2021 from $14.6 million in Q4 2020, driven by share-based compensation and increased headcount.

Total Revenue
$48.1M
Previous year: $48.1M
+0.0%
EPS
-$0.17
Previous year: -$0.53
-67.9%
Gross Profit
$1.15M
Previous year: $8.69M
-86.8%
Cash and Equivalents
$536M
Previous year: $21.5M
+2394.0%
Free Cash Flow
-$67.5M
Previous year: -$3.41M
+1879.1%
Total Assets
$995M
Previous year: $405M
+146.0%

Microvast

Microvast

Forward Guidance

Microvast anticipates revenue growth for FY 2022 and Q1 2022, along with significant capital expenditures for capacity expansions and R&D.

Positive Outlook

  • Revenue for FY 2022 is expected to grow 35% - 45% compared to FY 2021.
  • Revenue for the first quarter ending March 31, 2022 is projected to be between $32 million and $34 million.
  • Projected Q1 2022 revenue represents growth of approximately 115% - 128% over Q1 2021.
  • Capital expenditures are planned for manufacturing capacity expansions in Huzhou, China and Clarksville, Tennessee.
  • Investments will be made in research and development projects at the facility in Orlando, Florida.