NASDAQ$ENVX

Enovix Corporation · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Enovix made steady operational progress in Fab-1, improved yield, and shipped cells for qualification programs and pre-production builds.

Enovix reported third-quarter revenue of $8,000, driven by shipments of qualification batteries from Fab-1 while focusing on yield improvement activities. They also made progress with Strategic Accounts, including a new design win and a cooperation agreement with a major consumer electronics company.

  • Shipped production cells to 25 OEMs, including three Strategic Accounts.
  • Announced a non-binding Memorandum of Understanding with a Strategic Account for wearable, mobile, and computing applications.
  • Grew the design win portion of the revenue funnel by 20%+ QoQ due to progress on a program with a Strategic Account.
  • Continued to optimize the first production line in Fab-1 for higher yield and throughput, and completed learnings for Gen2.

Headline financials

Total Revenue

$8K

No prior period
EPS (adj)

-$0.15

Previous: -$0.08-87.5%
Adjusted EBITDA

-$20.2M

Previous: -$15.5M-30.4%
Capital Expenditures

-$31.4M

Previous: $10.9M-386.8%
Free Cash Flow

-$113M

Previous: -$44.8M-153.2%
Net Income

-$82M

Previous: -$10.8M-656.7%
Operating Income

-$33.7M

Previous: -$19.2M-75.4%
Gross Profit

-$6.62M

Previous: -$104K-6266.3%
Cash & Equivalents

$349M

Previous: $339M+3.0%
Total Assets

$468M

Previous: $415M+12.6%

Revenue & EPS history

Enovix · Revenue · Quarterly

$8K

Q3 2022
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Forward guidance

Enovix expects revenue between $6 million and $8 million for full-year 2022. They now expect to use between $130 million and $150 million of cash for full-year 2022 and nominally expect to exit the year with $300 million of cash.

Tailwinds

  • High-energy density is a critical need for product designers in the portable electronics market.
  • Batteries often make up a small fraction of the cost of premium portable electronics, which gives us the opportunity to earn premium average selling prices and margins given the value assigned to higher energy density.
  • Consumer electronics design and qualification cycles are significantly shorter than other applications such as automotive, enabling quicker volume production and revenue realization.
  • Focusing on portable electronics market applications ahead of EVs is the right strategy for any advanced battery company because of the economic and time-to-market advantages.
  • Seeding entry into the EV market by sampling batteries to EV OEMs and demonstrating batteries featuring 100% active silicon anode paired with EV-class cathode materials.

Headwinds

  • Entering the EV battery market requires billions of dollars of capital to build Gigafactories.
  • EV battery market offers lower prices per kWh than mobile electronics.
  • EV battery market demands long qualification cycles.
  • There is more work to be done in the coming quarters.
  • The company is dialing back Gen1 throughput enhancement activities and anticipate achieving lower overall output from Fab-1 in 2023 in favor of focusing on the Gen2 Autoline, which is the engine for the company's future scaling.

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 Q3 2022

Historical avgQ3 2022

+1.6%

Avg return

Earnings day

+0.9%

Avg return

5 days after

+3.9%

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%
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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