NASDAQ$ENVX

Enovix Corporation · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Reported first revenue and completed technology qualifications with three Strategic Accounts.

Enovix reported its first revenue of $5.1 million in Q2 2022, primarily from service revenue and a small contribution from commercial battery cells. The company shipped Fab-1 cells to 10 OEMs and four distributors globally. Technology qualifications were completed with three Strategic Accounts, and a follow-on evaluation contract was awarded for the U.S. Army's Conformal Wearable Battery program.

  • First revenue reported, totaling $5.1 million, with $5.0 million from a single customer.
  • Completed technology qualifications with three Strategic Accounts.
  • Awarded a follow-on evaluation contract for the U.S. Army's Conformal Wearable Battery program.
  • Active designs and design wins in the revenue funnel increased to $414 million.

Headline financials

Total Revenue

$5.1M

No prior period
EPS (adj)

-$0.13

Previous: -$0.21+38.1%
Adjusted EBITDA

-$18M

Previous: -$11.8M-52.4%
Capital Expenditures

-$14.5M

Previous: $13.4M-207.8%
Free Cash Flow

-$15.6M

Previous: -$5.49M-184.5%
Net Income

-$1.14M

Previous: -$14.3M+92.1%
Operating Income

-$28M

Previous: -$14.2M-97.6%
Gross Profit

-$638K

Previous: -$112K-469.6%
Cash & Equivalents

$385M

Previous: $4.95M+7670.8%
Total Assets

$487M

Previous: $74.7M+552.6%

Revenue & EPS history

Enovix · Revenue · Quarterly

$5.1M

Q2 2022
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Forward guidance

The company now expects between $6 million and $8 million of revenue for full-year 2022 and expects to use between $160 million and $180 million of cash.

Tailwinds

  • Prioritizing improvement activities in Fab-1 during the current quarter over shipments.
  • Continue to expect revenue to consist of product and service revenue, with service revenue being a significant factor.
  • Lowering cash use guidance primarily due to the timing of capital equipment orders.
  • Well positioned to provide a domestic supply of batteries for the military.
  • Actively pursuing partnership strategies with leading automotive OEMs and various U.S. Department of Energy programs.

Headwinds

  • Prioritizing manufacturing improvements over shipments in Q3.
  • Equipment depreciation and idle costs are expected to increase.
  • Need to increase manufacturing throughput and yield metrics.
  • The company GAAP gross profit was a loss of $0.6 million.
  • The company GAAP loss was $1.1 million.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

+1.6%

Avg return

Earnings day

+0.9%

Avg return

5 days after

+3.5%

Avg return

30 days after

52%

11 / 21 earnings

Positive

+51.3%

Q1 2024

Best reaction

-44.2%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+4.4%-14.9%-4.6%
Q4 2025-3.3%-17.6%-15.0%
Q3 2025+0.7%+4.5%-33.3%
Q1 2025-8.4%-9.1%+13.7%
Q4 2024+2.6%-15.6%-24.5%
Q3 2024-8.2%-20.8%-19.1%
Q2 2024-17.4%-19.2%-32.5%
Q1 2024+51.3%+56.2%+69.6%
Q4 2023-12.3%-22.0%-29.1%
Q3 2023+15.3%+2.5%+10.7%
Q2 2023-2.0%+13.1%-26.8%
Q1 2023-16.8%-13.7%-4.3%
Q4 2022+16.3%+7.7%+41.0%
Q3 2022-44.2%-43.1%-34.9%
Q2 2022+46.6%+72.3%+46.1%
Q1 2022+3.3%+3.1%+46.2%
Q3 2020+4.6%+6.0%-21.5%
Q3 2021+0.5%+14.3%+12.3%
Q4 2020-5.8%-4.1%+11.0%
Q2 2021-4.8%-3.8%+7.9%
Q1 2021+12.1%+23.8%+60.7%
Q2 2020
Q1 2020

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