Microvast Holdings, Inc. Q3 FY2024 earnings call

• Microvast is focused on improving efficiency and profitability. In 2024, it has been executing strategies in EMEA and APAC while implementing cost-cutting measures in the U.S.
• Achieved profitability in Q3 2024 with a net profit of $13.2 million and adjusted EBITDA of $29 million, a historical milestone.
• It is a vertical integrated battery technology company, focused on innovation. Has commercialized products across technology stack and has new products like ME6 LFP ESS containers and silicon enhanced cell technologies, with progress on all solid-state battery.
• Q3 2024 posted record revenue with 27% year-over-year growth, gross margin improved by 10.9 points, operating expenses reduced to $27.5 million in Q3 2024 from $44.7 million in Q3 2023.

In Q3 2024, Microvast achieved a record revenue of $101.4 million, up 27% from $80.1 million in Q3 2023. The EMEA business grew by 212% year-over-year and accounted for 59% of the quarterly revenue. The gross margin improved to 33.2% in Q3 2024, up from 22.3% in Q3 2023. Adjusted EBITDA reached $29 million and the company reported a GAAP net profit of $13.2 million in Q3 2024, compared to a net loss of $26.2 million in Q3 2023. The domestic Lithium Battery segment in the U.S. achieved profitability with a net profit of $13.2 million and adjusted EBITDA of $29 million.

• For the fourth quarter, expects revenue in the range of $90 million to $95 million, full year anticipated revenue growth in the range of 15% to 18%.
• Maintains target gross margin of at least 25%.
• APAC business targets production capacity improvements at Huzhou facility and progressing towards new products.
• EMEA business anticipates an 80% revenue increase year-over-year and aims to secure new strategic partners.
• American segment focuses on expansion of commercial vehicle footprint and exploring full financing solutions for Clarksville facility.