NASDAQ$MVST

Microvast Holdings Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Microvast reported strong year-over-year revenue growth and improved gross margin, led by commercial vehicle production in Europe and record backlog.

Microvast reported a 16.4% increase in revenue to $75.0 million, exceeding guidance, and achieved a record backlog of $675.9 million, up 541.9% year-over-year. Gross margin improved from 7.5% to 15.3%. The company is focused on ramping up production in its Huzhou, China facility and commencing trial production in its Clarksville, Tennessee facility in Q4.

  • Revenue increased 16.4% year-over-year to $75.0 million, exceeding guidance.
  • Record backlog of $675.9 million, up 541.9% year-over-year.
  • Gross margin increased to 15.3% from 7.5% in the prior year.
  • Net loss improved to $26.1 million compared to $44.2 million in the prior year.

Headline financials

Total Revenue

$75M

Previous: $64.4M+16.4%
EPS (adj)

-$0.02

Previous: -$0.05+60.0%
Gross margin

15.3%

No prior period
Capital Expenditures

-$93.6M

Previous: -$67.9M-37.9%
Free Cash Flow

-$120M

Previous: -$112M-6.8%
Net Income

-$26.1M

Previous: -$44.2M+41.0%
Operating Income

-$26.9M

Previous: -$45M+40.3%
Gross Profit

$11.5M

Previous: $4.84M+136.7%
Cash & Equivalents

$143M

Previous: $334M-57.2%
Total Assets

$998M

Previous: $972M+2.7%
Stock-Based Comp

$17.9M

Previous: $25.5M-30.1%

Revenue & EPS history

Microvast · Revenue · Quarterly

$75M

Q2 2023+16.4%vs Q2 2022
Beat estimate in 10 of 13 quarters(77%)
ActualEstimate

Forward guidance

The company expects to add to its record backlog, with continued growth in orders and backlog for the rest of the year. For Q3 2023, the Company expects revenue to be in the range of $72 million to $80 million and $348 million to $368 million for the full year 2023. Capital expenditures for the full year are anticipated to be in the range of $180.0 million to $210.0 million

Tailwinds

  • Continued ramp-up of deliveries to customers of 53.5Ah cells from Huzhou, China to meet strong demand
  • Trial production in Clarksville, Tennessee remains on track for Q4
  • Company expects to add to its record backlog
  • Expects continued growth in orders and backlog for the rest of the year
  • Revenue to be in the range of $72 million to $80 million for Q3 2023

Headwinds

  • Revenue for the full year 2023 between $348 million to $368 million
  • Capital expenditures for the full year are anticipated to be in the range of $180.0 million to $210.0 million
  • Changes in the highly competitive market
  • Risk that the company may not be able to execute its growth strategies or achieve profitability
  • The impact of inflation

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 2023

Historical avgQ2 2023

+14.0%

Avg return

Earnings day

+8.6%

Avg return

5 days after

+14.8%

Avg return

30 days after

43%

12 / 28 earnings

Positive

+308.0%

Q3 2024

Best reaction

-29.5%

Q4 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-5.6%-33.8%-47.4%
Q4 2025+7.1%-30.7%-19.9%
Q3 2025-10.1%-22.9%-32.9%
Q1 2025+30.0%+41.4%+75.7%
Q4 2024+32.5%+53.0%+60.7%
Q3 2024+308.0%+268.2%+546.2%
Q2 2024-5.2%-11.4%-33.3%
Q1 2024+8.7%+11.7%-6.4%
Q4 2023-29.5%-41.2%-51.7%
Q3 2023+3.0%-1.1%-15.6%
Q2 2023-2.0%-16.5%-11.7%
Q1 2023+57.1%+39.5%+23.5%
Q4 2022-4.6%-3.8%-1.5%
Q3 2022+8.4%+9.3%-14.1%
Q2 2022+4.2%+3.2%-10.9%
Q1 2022+10.8%+26.3%-26.3%
Q4 2021-4.6%-17.3%-31.1%
Q3 2021-3.6%-7.7%-22.6%
Q4 2020-3.6%-7.7%-22.6%
Q2 2021-6.6%-14.2%-11.5%
Q1 2021+2.2%+1.1%-2.3%
Q3 2020-0.3%+0.5%+68.6%
Q2 2020+0.0%-0.1%-0.2%
Q1 2020+0.4%+0.4%+1.0%
Q4 2019-2.9%-4.3%-0.1%
Q3 2019-0.1%-0.4%+0.1%
Q2 2019-0.5%-0.6%-0.4%
Q1 2019-0.2%-0.1%-0.1%

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