2Q22 Results: Revenue Jumps 44.1% Y/Y with Growing PyroThin Demand; Net Loss Widens to $24.1 Million



KEY POINTS
  • Revenue grew 44.1% Y/Y and 18.8% Q/Q to $45.6 million, driven by increasing market adoption of the company’s PyroThin thermal barriers in the EV market and healthy growth in the energy and industrial infrastructure. Complete results can be accessed here.
  • Management reiterated its growth targets of 2x revenue from 2021 to 2023 and 3x from 2023 to 2025 to approximately $720 million. Aspen expects to become cash flow positive in 2024.
  • PyroThin thermal barrier revenue increased ~42% Q/Q to $10.8 million (23.5% of total revenue). Energy industrial revenue accounted for the balance share at $34.8 million, growing at ~13% sequentially.
  • Aspen forecasts a threefold rise in thermal barrier revenues in 2022 (from $18 million to $52-62 million), driven by orders from GM and Toyota. By 2025, it expects this avenue to account for 75% of total revenue.
  • Net loss increased by $17.4 million Y/Y to $24.1 million or $0.68 per share, while adjusted EBITDA loss widened by $14.9 million Y/Y to $18.3 million, as the company increased opex investments in personnel, infrastructure, and related activities to support its PyroThin thermal barrier and battery materials businesses.
  • Aspen ended the quarter with $162.2 million in cash and incurred a capital expenditure of $37.9 million in 2Q for R&D and IT facility upgrades, Plant 2 construction, and PyroThin fabrication tooling in Mexico (shipped first production parts from Mexico assembly facility).
  • Development of Plant 2 is on track as the company aims to complete the first phase in late 2023. Upon completing the second phase, it expects to generate $1.6 billion in revenue, 35% in gross profit, and 25% in EBITDA margins across both the plants.
  • Aspen’s full-year 2022 outlook remains unchanged, with total revenue expected at $180-200 million, net loss at $79.8-86.8 million, adjusted EBITDA at $(55.0)-(62.0) million, and net loss per share at $2.16-2.35.
  • Our prior content on Aspen can be accessed here.

EARNINGS SNAPSHOT

Revenue grew 44.1% Y/Y and 18.8% Q/Q to $45.6 million, driven by increasing market adoption of the company’s PyroThin thermal barriers in the EV market and healthy growth in the energy and industrial infrastructure. Complete results can be accessed here.

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