Microvast Holdings, Inc. Q2 FY2024 earnings call

• Record second quarter revenue of $83.7 million with 12% YoY growth and a gross margin of 32.5% (17.2% YoY improvement).
• Significant growth in EMEA business with 401% YoY growth.
• Entered strategic partnership with Evoy, secured a $40 million order from a Korean e-Bus customer, and closed the quarter with a backlog of $278.6 million.
• Adjusted gross margin improved to 34.3% (17pp YoY increase).
• Challenges include decelerated rollout of light commercial vehicle platforms in Europe and delay in CV customer deliveries to second half of the year.
• New customers in various commercial vehicle segments, progress on product ramp-up and prototype development with new customers.

In Q2 2024, Microvast posted a record revenue of $83.7 million, a 12% year-over-year growth. The gross margin was 32.5%, with a 17.2% year-over-year improvement. The EMEA business saw a triple-digit growth of 401% year-over-year and accounted for 55% of the revenue. The adjusted gross margin was 34.3%, a 17 percentage point increase year-over-year.

• Third quarter revenue expected to be in the range of $85 million to $90 million, up 9% midpoint from Q3 2023.
• Target gross margin of 25%.
• APAC to deliver 21 amp-hour cells from Huzhou facility and focus on growth in Southeast Asia and R&D progress on new products.
• EMEA Q3 2024 revenue expected to grow over 100% YoY and ramp up series deliveries to European commercial vehicle OEMs.
• Americas to focus on financing solutions for Clarksville and explore new commercial vehicle markets.
• Launch of 565 amp-hour LFP cell and ME6 energy storage solution.

• Decelerated rollout of light commercial vehicle platforms in European market.
• Delay in CV customer deliveries pushed into second half of the year.

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