Aspen Aerogels(US:ASPN)2022-10-29 12:38Financial Data and Key Metrics Changes - Q3 2022 revenue was $36.7 million, representing a 21% year-over-year growth [22] - Adjusted EBITDA was negative $23.2 million, compared to negative $7.8 million in Q3 2021 [29] - Net loss increased to $29.6 million or $0.75 per share, compared to a net loss of $7.8 million or $0.24 per share in the same quarter of 2021 [29] Business Line Data and Key Metrics Changes - EV thermal barrier revenues increased by 11% over the prior quarter to $11.9 million, and over 12-fold year-over-year [23] - Energy industrial revenues were $24.7 million, which was 16% lower than the same quarter last year and 29% lower than the previous quarter [24] - Material expenses for the quarter were $20.8 million, making up 57% of sales, which is over 10 percentage points higher than the long-term target [25] Market Data and Key Metrics Changes - Strong demand in LNG markets with several early wins in accelerated LNG projects [14] - Continued growth in North America and Latin America for LNG projects, with first shipments for the conversion of former drilling rigs to LNG assets [14] - High activity levels in the U.S., Europe, Asia, and Canada for refinery and petrochemical sectors [15] Company Strategy and Development Direction - The company aims to achieve a revenue target of $240 million in 2023 and $720 million in 2025 [11][17] - Focus on leveraging aerogel technology into diverse markets, including energy industrial and EV sectors [16] - Ongoing construction of Plant 2 in Georgia to support future revenue growth [17] Management's Comments on Operating Environment and Future Outlook - Management acknowledged supply chain challenges and inflationary pressures affecting operations [17] - Confidence in achieving 2023 revenue targets despite current market conditions [18] - Management emphasized the importance of strategic investors and government programs for financing growth [19][20] Other Important Information - The company published its inaugural ESG highlights report, emphasizing sustainability and corporate responsibility [21] - Capital expenditures for the year are expected to range between $200 million and $225 million [32] Q&A Session All Questions and Answers Question: Progress with European OEMs and potential awards - Management noted increased prototyping activity and clearer visibility on specific applications, expecting potential awards in 2023 [38][39] Question: Incremental revenue sources for the full year - Management indicated that Q4 revenue is expected to be around $20 million from EV thermal barriers, with the remainder coming from energy industrial products [44][45] Question: CO2 shortage impact and mitigation - Management confirmed ongoing CO2 shortages and described measures taken to increase storage capacity and manage supply [55][57] Question: Toyota's EV roadmap and potential volume increases - Management acknowledged ongoing engagement with Toyota and noted that current revenue plans only include awarded nameplates [66]