Aspen Aerogels(US:ASPN)2023-08-02 16:00Financial Performance - Revenue for the six months ended June 30, 2023, was $93.7 million, an increase of $9.7 million, or 12%, from $84.0 million for the same period in 2022[116]. - Net loss for the six months ended June 30, 2023, was $32.2 million, with a net loss per share of $0.47, compared to a net loss of $43.5 million and a net loss per share of $1.27 for the same period in 2022[116]. - Adjusted EBITDA for the six months ended June 30, 2023, was $(24.8) million, an improvement from $(33.0) million for the same period in 2022[126]. - Total revenue for the three months ended June 30, 2023, increased by $2.6 million, or 6%, to $48.2 million compared to $45.6 million in the same period in 2022[147]. - Gross profit increased by $9.6 million, or 794%, to $8.4 million for the three months ended June 30, 2023, compared to a gross loss of $1.2 million in the same period in 2022[156]. - Total revenue increased by $9.7 million, or 12%, to $93.7 million for the six months ended June 30, 2023, from $84.0 million in the comparable period in 2022[166]. - Gross profit increased by $16.5 million, or 550%, to $13.5 million for the six months ended June 30, 2023, from a gross loss of $3.0 million in the comparable period in 2022[175]. Revenue Breakdown - Energy industrial revenue for the three months ended June 30, 2023, increased by $0.6 million, or 2%, to $35.5 million, while thermal barrier revenue increased by 17% to $12.6 million[149][151]. - Energy industrial revenue increased by $3.7 million, or 6%, to $69.4 million for the six months ended June 30, 2023, from $65.7 million in the same period in 2022[168]. - Thermal barrier revenue was $24.3 million for the six months ended June 30, 2023, compared to $18.4 million for the same period in 2022[170]. Cost and Expenses - Total cost of revenue decreased by $7.1 million, or 15%, to $39.8 million for the three months ended June 30, 2023, compared to $46.9 million in the same period in 2022[153]. - Energy industrial cost of revenue decreased by $2.9 million, or 10%, to $26.0 million, attributed to a $5.5 million decrease in material costs[154]. - Thermal barrier cost of revenue decreased by $4.2 million to $13.8 million, driven by a $3.2 million decrease in material costs[155]. - Total cost of revenue decreased by $6.7 million, or 8%, to $80.3 million for the six months ended June 30, 2023, from $87.0 million in the comparable period in 2022[172]. - Energy industrial cost of revenue decreased by $5.7 million, or 10%, to $51.0 million for the six months ended June 30, 2023, from $56.7 million in the same period in 2022[173]. Operating Expenses - Operating expenses are expected to increase in absolute dollars but remain consistent as a percentage of revenue in 2023[137]. - Research and development expenses are projected to increase in both absolute dollars and as a percentage of revenue in 2023[138]. - Research and development expenses decreased by $0.5 million, or 11%, to $4.0 million for the three months ended June 30, 2023, from $4.5 million in the same period in 2022[157]. - Sales and marketing expenses increased by $0.5 million, or 6%, to $8.1 million for the three months ended June 30, 2023, from $7.6 million in the same period in 2022[159]. - General and administrative expenses increased by $4.0 million, or 43%, to $13.4 million for the three months ended June 30, 2023, from $9.4 million in the same period in 2022[161]. - Sales and marketing expenses increased by $2.2 million, or 16%, to $15.9 million for the six months ended June 30, 2023, compared to $13.7 million in the same period in 2022[178]. - General and administrative expenses rose by $9.0 million, or 54%, to $25.6 million for the six months ended June 30, 2023, from $16.6 million in the comparable period in 2022[180]. Cash Flow and Investments - Cash and cash equivalents balance as of June 30, 2023, was $134.3 million, sufficient to support current operating requirements and initial capital expenditures[186]. - Net cash used in operating activities decreased to $32.3 million for the six months ended June 30, 2023, from $32.9 million in the comparable period in 2022[189]. - Net cash used in investing activities increased to $115.4 million for the six months ended June 30, 2023, compared to $52.4 million in the same period in 2022[191]. - The company has a convertible note outstanding with a principal balance of $113.0 million, bearing interest at SOFR plus 5.50% per annum if paid in cash[204]. - The company has $0.3 million of restricted cash to support outstanding letters of credit for commercial contracts[204]. Future Outlook and Strategy - The company is expanding aerogel manufacturing capacity and has plans for a second manufacturing plant in Georgia, with a target revenue capacity of approximately $550.0 million in 2024[115]. - The company expects to maintain strong revenue growth in 2023, driven by post-COVID recovery in the energy industrial market and accelerating demand in the electric vehicle market[128]. - The company plans to achieve a target revenue capacity of approximately $550.0 million in 2024, supported by productivity improvements and contract manufacturing strategies[184]. - The company is increasing investment in research and development for next-generation aerogel products and technologies, particularly for the electric vehicle market[185]. - The company expects future growth in the aerogel products market, particularly in the electric vehicle market, energy infrastructure insulation, and lithium-ion battery thermal barrier markets[197]. - The company anticipates capacity expansion with the planned construction of a second manufacturing facility in Georgia, aligning with demand from electric vehicle customers[198]. - The company believes in the commercial potential of its technology in the electric vehicle market and aims to increase revenue through contracts with major U.S. automotive manufacturers[198]. Market Risks - The company does not believe inflation has materially affected its results of operations but acknowledges potential future impacts[205]. - The company is exposed to market risks, including fluctuations in interest rates and potential exchange rate risks as it expands internationally[202]. - The company expects to manage capital expenditures and working capital balances effectively to support future growth[198].