Amprius Technologies, Inc. Q3 FY2024 earnings call

• Amprius saw over double revenue from Q2 and engaged with 53 new customers in Q3. - Signed $20 million of customer contracts and 2 LOIs with Fortune 500 industrial leaders in the light electric vehicle segment. - Delivered 360 Wh/kg EV battery cells to USABC and developed gigawatt-hour scale contract manufacturing capacities. - Partnered with USABC, delivering EV cells that surpassed initial goals, achieving 360 Wh/kg energy density, 1,200 Wh/kg power density, 90% charge in 15 minutes, and 1,000 cycle life. - Offered 14 SKUs of silicon anode batteries with energy densities from 350 Wh/kg to 450 Wh/kg. - Completed production line specifications and design drawings for Colorado facility, and continued ramping up Fremont facility to up to 2 megawatt scale.

In the third quarter, total revenue was $7.9 million. Product revenue was $6.1 million, representing an 81% sequential increase and a 176% year-over-year increase. Development services and grant revenue totaled $1.8 million. Of the 94 customers shipped to in Q3, only 4 accounted for greater than 10% of revenue, consistent with prior quarters.

• Plan to recognize $20 million revenue from customers by May 2025. - Near-term revenue growth expected from SiCore, with focus on growing into operational profitability. - Expect to spend another $1 million on supporting equipment to complete the 2-megawatt line in Fremont. - Monitoring industry dynamics, funding, and sector changes for Colorado facility next steps.

Q: Can you talk about customers in late-stage negotiations with potential 10 megawatt hours or more and cadence of customer announcements?

A: Have 2 customers with $20 million combined revenue delivered within the year, expect revenue recognized by May. Have 3 other high-volume potential customers.

Q: Path to operational cash flow breakeven?

A: SiCore product is profitable day one, near-term revenue growth from SiCore expected to drive towards operational profitability as capacity constraints are removed.

Q: Investments needed to support drive towards breakeven revenue levels?

A: Added 2 salespeople, focused on business development and adding key R&D resources to Fremont team.

Q: Recognition of $20 million revenue?

A: Plan to recognize revenue by May 2025, already started shipping product in Q3.

Q: Customer strategy, servicing many small volumes vs. large customers?

A: Focus on large customers with substantial volume for easier product development, manufacturing, and service.

Q: Potential for $20 million contracts to grow?

A: Important customers who will likely have additional orders next year as current orders satisfy half their demand.

Q: Milestones for LOI in electric vehicle space?

A: Need to perfect cell design, planning to give first batch of samples, customer to inspect factory in December (delayed), testing samples first before factory inspection.

Q: Drivers of increased customer receptivity?

A: Technology leadership, available manufacturing capacity, and shorter qualification cycles depending on application.

Q: Impact of Colorado facility spending on gross margin?

A: $2.4 million spent in Q3 on Colorado facility, design and construction specifications substantially completed in October, expecting spending to ramp down. Q3 COGS related to Colorado was ~$2.9 million, margin expected to improve in Q4 due to removal of this spend.

Q: Fremont facility CapEx?

A: $1 million to finish build-out for 2-megawatt capacity in Fremont, normal run rate CapEx for replacement and upgrade, not material.