Microvast Holdings, Inc. (NASDAQ:MVST) Q3 2023 Earnings Call Transcript

Microvast Holdings, Inc. (NASDAQ:MVST) Q3 2023 Earnings Call Transcript November 9, 2023

Microvast Holdings, Inc. (MVST), failed to meet earnings expectations for the third quarter of 2023, reporting an EPS of $-0.08345, falling short of the estimated $-0.06.

Operator: Welcome to the Microvast Third Quarter 2023 Earnings Call. Please be advised that this call is being recorded and all participants are in listen-only mode. [Operator Instructions] I’d like to introduce Rodney Worthen, Microvast’s Director of Investor Relations. Rodney, the floor is yours.

Rodney Worthen: Thank you, operator, and thank you all for joining us today. Present on today’s call are Mr. Yang Wu, Founder, Chairman and CEO; Mr. Zach Ward, President; and Mr. Craig Webster, Chief Financial Officer. Microvast’s third quarter 2023 earnings press release and slide presentation can be found on the Investor Relations section of our website at ir.microvast.com. Please note that some of our statements during this call are forward-looking and are subject to various risks and uncertainties that could affect our financial results. We also utilize non-GAAP financial measures, which are reconciled to GAAP metrics in our press release.

Yang Wu: Thank you all for being here today. I want to start by providing an overview of our performance in the third quarter, followed by operational and financial highlights. We achieved a 107% year-over-year revenue growth in Q3 2023, with revenue reaching $80.1 million. Our gross margins improved significantly, and we closed the quarter with a record backlog of $678.7 million. We also have exciting updates regarding our Huzhou facility capacity expansion and operational developments in our U.S. and Colorado facilities. Now, I will turn it over to Zach Ward and Craig Webster to discuss additional operational and financial details.

Zach Ward: Thank you, Mr. Wu. I’d like to share updates on our U.S. and Colorado operations, as well as our collaborations with various automotive companies. Our U.S. operations in Clarksville are progressing, and we are on track to deliver qualified cells and generate Section 45X IRA credits from the second quarter of 2024. We also achieved a significant order intake and continued our upward trajectory in revenue growth, despite project delays. Additionally, we have established partnerships with leading companies such as Otokar, REE Automotive, and Higer bus, to equip their platforms with our advanced battery technology.

These collaborations further strengthen our position in the electric vehicle and energy storage markets. We are excited about the progress we have made and look forward to providing more updates in the future.

Craig Webster: Thank you, Zach. Now, I will delve into our financial performance in more detail. Despite missing earnings expectations, we have seen remarkable revenue growth and gross margin improvements. Our strong order intake and backlog demonstrate the increasing demand for our products in the commercial vehicle and energy storage segments. We remain focused on maintaining our financial stability and enhancing our operational efficiency.

In conclusion, our third quarter performance reflects our commitment to innovation and strategic partnerships, and we are optimistic about our outlook for the remainder of the year. Thank you all for joining us today, and we look forward to your questions.

The webcast of this call will be available on the Investor Relations section of our website. [End of Call]

Reference

Olivia Carter

Olivia Carter revs up excitement in the world of NASCAR. As a dedicated motorsports enthusiast, she covers race results, driver profiles, and the latest developments in the NASCAR world, keeping fans on the edge of their seats.