Microvast (MVST)2024-11-12 21:52Financial Performance - Q3 2024 revenue reached $101.4 million, a 26.6% increase from $80.1 million in Q3 2023[2] - Net profit for Q3 2024 was $13.2 million, compared to a net loss of $26.2 million in Q3 2023[2] - Adjusted EBITDA for Q3 2024 was positive $28.6 million, a significant improvement from negative $5.3 million in Q3 2023[2] - Year-to-date revenue for 2024 was $266.4 million, a 31.9% increase from $202.0 million in the same period of 2023[3] - Revenues for the nine months ended September 2024 reached $266,414,000, a 32% increase from $202,042,000 in the same period of 2023[32] - Adjusted net profit for the three months ended September 2024 was $16,782,000, compared to a loss of $10,268,000 in the same period of 2023[34] - The company reported a net profit of $13,247,000 for the three months ended September 2024, a significant improvement from a loss of $26,172,000 in the same period of 2023[34] Profitability and Margins - Gross margin improved to 33.2%, up from 22.3% in Q3 2023, marking a 10.9 percentage point increase[2] - Gross profit for the three months ended September 30, 2024, was $33,612 thousand, compared to $17,884 thousand in the same period of 2023, representing an increase of 87.8%[24] - Gross profit for the nine months ended September 2024 was $78,032,000, representing a gross margin of 29.3%, compared to $34,203,000 and a gross margin of 16.9% in the prior year[32] - The adjusted gross margin for the nine months ended September 2024 was 30.6%, up from 19.2% in the same period of 2023[31] Expenses and Cost Management - Operating expenses decreased to $27.5 million in Q3 2024 from $44.7 million in Q3 2023[2] - Total operating expenses decreased to $27,508 thousand for the three months ended September 30, 2024, down from $44,674 thousand in the same period of 2023, a reduction of 38.5%[24] - Research and development expenses for the three months ended September 30, 2024, were $10,692 thousand, down from $13,241 thousand in the same period of 2023, a decrease of 19.2%[24] Cash Flow and Liquidity - As of September 30, 2024, cash and cash equivalents totaled $115.0 million, compared to $93.8 million at the end of 2023[2] - Cash and cash equivalents increased to $63,585 thousand as of September 30, 2024, compared to $44,541 thousand as of December 31, 2023, an increase of 42.7%[23] - The company reported a net cash used in operating activities of $3,287 thousand for the nine months ended September 30, 2024, compared to $70,350 thousand in the same period of 2023, indicating improved cash flow management[26] - Cash, cash equivalents, and restricted cash at the end of the period totaled $114,967,000, an increase from $89,212,000 at the end of September 2023[29] Capital Expenditures and Investments - Capital expenditures in Q3 2024 were $30.6 million, down from $59.9 million in Q3 2023[2] - The company is focusing on R&D for new products, including the ME6 ESS container solution and solid-state batteries[5] Balance Sheet and Liabilities - Total current assets increased to $437,571 thousand as of September 30, 2024, from $425,606 thousand as of December 31, 2023, a growth of 2.3%[23] - Total liabilities decreased to $511,797 thousand as of September 30, 2024, from $532,542 thousand as of December 31, 2023, a decline of 3.9%[23] Borrowings and Financial Activities - The company generated $70,373,000 from borrowings in the nine months ended September 2024, significantly up from $18,439,000 in the same period of 2023[28] - The company incurred a loss on disposal of property, plant, and equipment amounting to $810 thousand for the nine months ended September 30, 2024[26] - Non-cash settled share-based compensation for the nine months ended September 2024 amounted to $30,298,000, compared to $51,602,000 in the same period of 2023[34] - The company experienced an effect of exchange rate changes resulting in a decrease of $4,598,000 in cash flows[28]