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Dec 31, 2020
Aspen Aerogels Q4 2020 Earnings Report
Aspen Aerogels reported a decrease in revenue and net loss compared to the same quarter last year, impacted by COVID-19.
Key Takeaways
Aspen Aerogels reported a decrease in revenue for the fourth quarter, from $46.5 million to $23.0 million. The company experienced a net loss of $6.2 million, compared to a net loss of $1.0 million in the fourth quarter of 2019. The company is focusing on leveraging its aerogel technology platform into high-value markets, including electric vehicles.
Total revenue for the fourth quarter was $23.0 million, a decrease from $46.5 million in the fourth quarter last year.
Net loss for the fourth quarter was $6.2 million, compared to a net loss of $1.0 million in the fourth quarter of 2019.
Net loss per share for the fourth quarter was $0.23, compared to $0.04 in the fourth quarter last year.
The company achieved a significant design win for its PyroThinTM thermal barriers with a major U.S. automotive OEM.
Forward Guidance
Aspen Aerogels expects COVID-19 to continue to constrain demand in energy infrastructure markets in 2021. Revenue is projected to be roughly in line with 2020, with potential upside. Gross margin is expected to improve to approximately 20%. The company plans to increase investment in its electric vehicle opportunities by $6.0 million.
Positive Outlook
- Total revenue is expected to range between $100.0 million and $108.0 million.
- Gross margin is expected to improve to approximately 20% from 15% in 2020.
- Demand will rebound when the pandemic subsides and access restrictions for contractors in energy infrastructure facilities are removed.
- Initiatives to reduce raw material costs and enhance manufacturing productivity will help improve gross margin.
- Strong growth is expected in the EV thermal barrier business.
Challenges Ahead
- COVID-19 pandemic will continue to constrain demand for Aspen’s products in the energy infrastructure markets.
- Net loss is expected to range between $21.0 million and $25.0 million.
Historical Earnings Impact
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