Microvast Achieves Record Financial Performance In 2024 Amidst Expansion And Efficiency Gains
$MVST
Microvast Holdings, Inc. (NASDAQ:MVST), a prominent player in the advanced battery technology sector, has announced a significant uptick in its financial performance for the fiscal year 2024. The company reported a substantial 23.9% increase in annual revenue, amounting to $379.8 million, up from $306.6 million in the previous year. This growth was highlighted by a quarterly revenue of $113.4 million in the fourth quarter, marking an 8.4% increase year over year.
Its gross margin saw an improvement, rising from 18.7% in 2023 to 31.5% in 2024. This improvement in profitability is attributed to enhanced operational efficiencies and strategic expansions, particularly in the EMEA region.The gross margin for the fourth quarter alone stood 36.6%, compared to 22.0% in the same quarter the previous year.
Reporting a net loss of $195.5 million for the year, which is an increase from a net loss of $106.4 million in 2023. The net loss per share also widened from $0.34 in 2023 to $0.61 in 2024. However, adjusted EBITDA showed some signs of improvement, with a less negative figure of $44.8 million compared to $19.6 million in the previous year.
The company’s operational expenses were another area of increase, totaling $238.3 million for the year, up from $165.9 million in 2023. This rise was partly due to the investments in manufacturing capacity expansions, particularly in Huzhou, China. The higher expenses, the company managed to generate $2.8 million in cash from operations during the fourth quarter due to gains in operational efficiency.
Yang Wu, the Founder, Chairman and Chief Executive Officer of Microvast, expressed optimism about the company’s trajectory. “We achieved record quarterly revenue in the fourth quarter of 2024, beating revenue guidance. This brings our full year revenue growth to 23.9% and we delivered these revenues at a gross margin also above guidance. The revenue growth achieved in EMEA is encouraging and we would expect to continue this growth into 2025.”
Looking ahead to 2025, Microvast has set a revenue growth target of 18% to 25%, with a revenue guidance range of $450 million to $475 million. The company also aims to maintain a gross margin of around 30%, reflecting continued improvements in regional efficiencies and production utilization.
With a solid backlog of $401.3 million and significant advancements in operational efficiencies, Microvast is positioned to sustain its growth momentum and enhance its profitability in the coming years. The ongoing expansions and operational enhancements are expected to further solidify its market position as a leader in battery technologies for electric vehicles and energy storage solutions.
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