• Revenue increased 28.1% year over year to $47.0 million, exceeding original guidance
• Adjusted gross margin increased to 13.5%
• Achieved record backlog of $486.7 million
Microvast Holdings, Inc., a technology innovator that designs, develops and manufactures lithium-ion battery solutions, announced unaudited condensed consolidated financial results for the first quarter ended March 31, 2023 (“Q1 2023”).
“In the first quarter, we delivered stronger than anticipated year-over-year revenue growth, led by the initial production ramp up of several of our commercial vehicle customers in Europe” said Yang Wu, Microvast’s Founder, Chairman, President and Chief Executive Officer. “We are very pleased to have completed our expansion and have begun trial production in Huzhou, China which adds 2GWh of production capacity for our new 53.5Ah cell. In addition, our Clarksville, Tennessee facility remains on track for start of production in the fourth quarter, bringing our total 53.5Ah capacity additions this year to 4GWh. Customer adoption of our new cell is very strong and over 50% of our new capacity in Huzhou is already under contract.”
"We are pleased to report another quarter of solid growth with improving gross margins and another record backlog of $486.7 million, which really underpins our revenue plan for this year, and gives us the conviction to raise our guidance,” said Craig Webster, Microvast’s Chief Financial Officer. “We are very encouraged by the level of customer engagement and interest in our Clarksville plant, which along with anticipated IRA credits, is providing multiple project finance opportunities.”
Results for Q1 2023
• Revenue of $47.0 million, compared to $36.7 million in Q1 2022, an increase of 28.1%
• Gross margin increased to 10.3% from gross margin of 0% in Q1 2022; Non-GAAP adjusted gross margin increased to 13.5%, up from 5.2% in Q1 2022
• Operating expenses of $36.2 million, compared to $43.4 million in Q1 2022; Adjusted operating expenses of $19.8 million, compared to $31.1 million in Q1 2022
• Net loss of $29.6 million, compared to net loss of $43.8 million in Q1 2022; Non-GAAP adjusted net loss of $11.7 million, compared to non-GAAP adjusted net loss of $29.1 million in Q1 2022
• Net loss per share of $0.10 compared to net loss per share of $0.15 in Q1 2022; Non-GAAP adjusted net loss per share of $0.04, compared to non-GAAP adjusted net loss per share of $0.10 in Q1 2022
• Adjusted EBITDA of $(7.5) million in Q1 2023, compared to Adjusted EBITDA of $(23.1) million in Q1 2022
• Backlog as of March 31, 2023 was $486.7 million, representing growth of 302.9% compared to $120.8 million in backlog as of March 31, 2022 and sequential growth of 18.6% compared to $410.5 million in backlog at December 31, 2022.
• Capital expenditures of $35.9 million, compared to $41.1 million in Q1 2022, and were driven by investments in manufacturing capacity expansions in Huzhou, China and Clarksville, Tennessee
• Cash, cash equivalents, restricted cash and short-term investments equalled $285.8 million as of March 31, 2023, compared to $327.7 million as of December 31, 2022 and $470.7 million as of March 31, 2022
2023 Outlook
• Due to a stronger than expected Q1 2023 performance and underpinned by a record backlog of $486.7 million, the company is raising its full year 2023 revenue guidance to a range of $348 million and $368 million, reflecting year over year growth of 70% to 80%, up from 65% to 75% previously.
• For Q2 2023, the company expects revenue to be in the range of $63 million to $67 million.
• Deliveries of new 53.5Ah cell starting in second quarter from new cell, module and pack line in Huzhou, China and in fourth quarter from Clarksville, Tennessee
• Capital expenditures for the full year are anticipated to be in the range of $180.0 million to $210.0 million
