Microvast (MVST) 8 Aug 242024 Q2 Earnings call transcript

Thank you for standing by. This is the conference operator. Welcome to the Microvast Second Quarter 2024 Earnings Call. [Operator Instructions] And the conference is being recorded. I would now like to turn the conference over to Mr. Officer Holdings. Financial Chief Ali, of Microvast Yaser Please go ahead.

you, joining us you, operator, for thank and Thank today. everyone,

second start up Holdings. me handing Mr. Joining on Wu overview Microvast Chairman will quarter updates. before before discuss today's Yang with a providing to quarter will of Wu Mr. some the Mr. Wu, detail XXXX call our to Founder, CEO financials it and more off our back high-level with outlook. wrap I operational is then of in

of this issued the Microvast Relations on call, press release, its of earnings Ahead the second which company's section found quarter website, ir.microvast.com. can be Investor

In to addition, prepared remarks. slide presentation have a accompany to the management's posted company's website we

may assumptions. statements expectations events. due of or As we on information the no current should include They views based statements and undertake a upon new to these to please this obligation forward-looking for that reminder, future and as and note or forward-looking to be statements not results revision revise relied made dates, of representative any release subsequent call publicly in

may results materially Actual a due and risks from variety of to differ uncertainties. expectations

on information could our our and results, other material important affect to SEC. factors filings please that refer the risks financial with more For

the conclusion section of replay this Microvast been webcast their Investor press in financial most from measures during addition call, or non-GAAP comparable These a GAAP GAAP the on We tables in may also results. of discuss be non-GAAP to be isolation the have in metrics should as measures for measures reconciled of Relations available substitute website. will considered our at this call. to not These and the release. After included end a

opening over turn to will remarks. the for I now, And Wu Mr. call

business $XX.X QX delivering Slide Thank you, margin The incredible for few of year-over-year the business maintaining at in EMEA. quarter XX% highlights of turn everyone, million. a from you, gross sales today's year-over-year. revenue as XXXX, second to growth joining comes quarter. a triple-digit We revenue year-over-year. and with posted record This growth increases cover Please growth I EMEA X this percentage a growth from second call. thank and while XX.X% improvement of for XXX% largely We saw achieved XX.X% in

join X. company expanding its vehicle successful Please in was me Slide on The further commercial footprint.

a boat We motor electric with entered have Norwegian in into strategic pioneer system. a partnership Evoy,

We a into have from the have market a customer. Korean tap to Korean and secured $XX million e-Bus begun order

efficiency. backlog successes. improvements XX.X%, year-over-year. quarter percentage the $XXX.X closed to for million company posted another banner continued expect and strive gross of growth a and significant adjusted we margin operational quarter yet company second posted point We The with at The and increase continue to XX a

So this come also with challenges.

delay pushed market, experienced addition In in light commercial in rollout the into decelerate to European of vehicle half year. CV this we customer second deliveries platforms of

Turning to Slide X.

We globally segments. technology. hour have X utilize our some These XX-point with hour amp in various commercial vehicle packs power and exciting new pack customers will XX cell amp MV-I and Gen customers

with the the aren't on ramp-up we have development. customers to prototype quite project significant progress While we publicly, product announce ready and made

with to motor systems. excited Evoy working are we Additionally, be on e-Boat

I discuss to more the Ali in to detail. would like financials over now turn call our Mr. to

I'll results. Thank everyone, financial spend thank Mr. tuning minutes XXXX QX you, for discussing you, and in. next Wu, our the few

commercial in main our with to vehicles continue QX This QX quarter line was booked increase P&L. OEMs Slide items markets a $XX of XXXX. million XX% growth to second QX as from million, I in We record our primarily will by EMEA X, an technologies. sales adopt revenue driven from $XX.X of strong turn Please demand and the summarize for

combination gross compensation expense margin XX.X% in increased XXXX, product percentage non-cash sales including adjusted more That's raw was QX improvement. QX and XX.X% QX in increase This after through material in compared settled to a due improving to mix gross cost margin in utilization, to point adjusting improved lower for XX.X% in better to margin to a favorable economies prices. compared factors, QX share-based of XXXX gross XXXX. XX of Our of XX.X% scale XXXX and

losses of in U.S. Operating million XXXX facilities due decided $XXX.X technology an in is and $XX.X the period. compared certain million expenses prior of LFP QX was seize to use shift the we assets increase to in the This long-lived as mainly in $XX.X XXX% which of loss towards in $XX were of impairment U.S. the buildings to under QX million impairment million, XXXX, for of year strategic our the from expense increase operating

impairment adjustments impairment in QX QX now. XXXX, loss XXXX. an loss, Without SBC After operating $XX.X in million been expense expense QX in $XX.X to would XXXX SG&A, non-cash have for were just to of million our due million the $XX.X for in million, adjusting mentioned adjusted compared mainly our $XX.X expense operating increase

reconciliations of at and fair in Slide our of adjusted GAAP adjusting the $XX.X of are the net was $XX.X to of QX loss to net these XXXX net and loss and these adjusted million $X.X in GAAP compared with X metrics liability release. metrics adjustments After million non-cash earnings shareholder press $XX.X XXXX. changes loan XXXX the tables an was warrant million expense in QX QX XXXX. SBC loss of in value QX is of in to net loss compared impact million included for in comparable non-GAAP convertible in most end The shown our

prior Slide XX shows to for of QX year geographic our revenue period. the breakdown the compared XXXX

outstanding booked we see, can sales increases. you As

by up ago was vehicle year customers key business ramps. our a EMEA as XX% of from began XXX% revenue, XX% up their for accounted year-over-year and Our

over I to Mr. outlook quarter. it our Wu with back the that, will briefly over And to go turn third for

which months. Thank upcoming you. Slide to provides a outlook XX, summary Please turn for

the primarily to be our year through and This to For million, the to range the midpoint. vehicle at increased quarter, customers. $XX growth QX X% be EMEA deliveries million ago is expect of APAC we from third generated to in $XX commercial revenue anticipated up a expected

We efficiencies our of maintaining continue XX%. and operational for to we target strive margin are gross

our delivering QX targeting will amp vehicle OEMs. R&D products. hour to expect We XX the up in be this new we to For do European XXXX the XXX% Huzhou we progress In series plan continuing EMEA, we growth the to revenue cells anticipated on from and and year-over-year APAC, Southeast more upcoming also Asia while facility. grow to than commercial deliveries ramp

solutions new For to markets focus Americas. in Clarksville, we while exploring on continue commercial the financing Americas, complete vehicle the to

Turning XX. Slide to

LFP cost, XXX our meet We a LFP are customers, excited to portfolio. XXX of hour a amp cell. is the newest amp hour provides and battery launch of battery the needs lifespan. specifications technology, reliability This line designed including the in enhanced host cell longer This new energy lower extensive our product renewable to

Our customers. domestically-produced Microvast expected for attractiveness and qualify are LFP for batteries Section to our economic their IRA enhancing XXX,

ownership can Microvast's robust XX-year optimize me in cost high-energy where container, a the density including design, boasting you a our MEX storage join with lifespan XX, on a new LFP-based and Slide combination hour Please overhaulable energy battery of total offering of new a up efficiency a XX-foot This benefits, X see solution. new to offers with compelling high product design. compact megawatt

this market. to We product are to bring work to excited

for quarter. look us you today. next all Thank you again We updating on forward progress to joining our