NASDAQ$MVST

Microvast Holdings Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Reported record Q2 revenue and increased gross margin.

Microvast reported a record Q2 revenue of $83.7 million, an 11.6% increase year-over-year. The gross margin improved significantly from 15.3% to 32.5%. However, the company experienced a net loss of $78.4 million, compared to a net loss of $26.1 million in Q2 2023.

  • Record Q2 revenue, increased 11.6% year over year to $83.7 million.
  • Gross margin increased from 15.3% to 32.5%, a 17.2 percentage point improvement year over year.
  • Net loss of $78.4 million, compared to net loss of $26.1 million in Q2 2023.
  • Capital expenditures decreased to $2.9 million, compared to $57.7 million in Q2 2023.

Headline financials

Total Revenue

$83.7M

Previous: $75M+11.6%
EPS

-$0.25

Previous: -$0.02-1150.0%
Gross margin

32.5%

Previous: 15.3%+112.4%
Adjusted gross margin

34.3%

No prior period
Adjusted EBITDA

-$78.4M

No prior period
Capital Expenditures

-$13.2M

Previous: -$93.6M+85.9%
Free Cash Flow

-$91.6M

Previous: -$120M+23.5%
Net Income

-$78.4M

Previous: -$26.1M-200.7%
Operating Income

-$75.6M

Previous: -$26.9M-181.5%
Gross Profit

$27.2M

Previous: $11.5M+137.3%
Cash & Equivalents

$68.2M

Previous: $143M-52.2%
Total Assets

$985M

Previous: $998M-1.3%
R&D Expense

$10.1M

No prior period
Stock-Based Comp

$12.1M

Previous: $17.9M-32.1%

Revenue & EPS history

Microvast · Revenue · Quarterly

$83.7M

Q2 2024+11.6%vs Q2 2023
Beat estimate in 10 of 13 quarters(77%)
ActualEstimate

Forward guidance

For Q3 2024, Microvast is targeting revenue growth of 6% to 12% year-over-year, with revenue guidance of $85 million to $90 million. The company is also targeting operational efficiencies, providing a gross margin target of 25%.

Tailwinds

  • Targeting revenue growth of 6% to 12% year over year.
  • Revenue guidance of $85 million to $90 million.
  • Targeting operational efficiencies.
  • Gross margin target of 25%.
  • Ongoing R&D progress towards new product development.

Headwinds

  • Shifting long-term U.S. ESS market focus to producing LFP battery systems instead of NMC battery solutions at its Clarksville, Tennessee facility.
  • Continuing to consolidate the Company’s U.S. operations in Clarksville.
  • Exploring strategic alternatives to enhance liquidity including the sale of certain U.S. non-core real estate assets.
  • Exploring new customer projects in the Americas, including Canada.
  • Embarking on additional projects in APAC and EMEA that expand our presence in differentiated commercial vehicle markets

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 2024

Historical avgQ2 2024

+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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