Enovix Corporation (“Enovix”) (Nasdaq: ENVX), a global
high-performance battery company, announced today financial results
for second quarter 2024, which included the summary below from its
President and CEO, Dr. Raj Talluri.
Fellow Shareholders,
In the second quarter of 2024 we began producing our first
batteries in Malaysia and demonstrated strong commercial progress
with a handful of leading customers.
Our recent highlights include:
- Strong top-line growth: Revenue of $3.8 million in the second
quarter of 2024, up from $42,000 in the second quarter of 2023 and
above the mid-point of our forecast of $3.0 million to $4.0
million. We expect significant revenue growth from the first half
of 2024 to the second half of 2024.
- Commercial progress: We signed an agreement in the second
quarter of 2024 with a leading California-based technology company
to provide silicon batteries and packs for a mixed reality headset.
In addition, we recently signed a collaboration agreement with a
Fortune 200 company to provide silicon batteries for a fast-growing
IoT product that already has tens of millions of users
globally.
- Second deal in Automotive: We signed a memorandum of
understanding (“MOU”) with a high-performance global automotive OEM
aimed at scaling the Enovix architecture for the automotive market.
This is our second agreement signed in 2024 with a leading
automotive OEM.
- Malaysia factory buildout: We began production of first
batteries in Malaysia on our Agility Line, which recently completed
site acceptance testing (“SAT”). Additionally, we completed factory
acceptance testing (“FAT”) for our high-volume Gen2 Autoline for
all key modules.
- Extended runway: We are on track to execute upon our goal of
over $35 million in annualized savings based on relocating our
high-cost California manufacturing to Malaysia. We additionally
took actions to strengthen our balance sheet through an
at-the-market (“ATM”) offering, completed in the second quarter,
giving us a strong runway.
We enter the third quarter of 2024 beginning to scale up in
Malaysia and we are excited to show off our Fab2 at a grand opening
ceremony next week. We have already begun production of first
batteries from our Agility Line in Malaysia and plan to sample
these EX-1M cells to customers once we complete testing.
Customer interest in our silicon batteries remains high given
the movement toward devices infused with artificial intelligence
(“AI”) features. As we demonstrated last year in both internal
studies and our work with Tirias Research, AI processing puts a
tremendous strain on battery life. Smartphone OEMs have recognized
that there are limited options to deliver the battery capacity
needed in a suitable form factor. This is driving our strong
engagement activity in the category. In addition, there are IoT
markets where form factor constraints are driving a need for more
energy dense batteries. Our products are uniquely suited to address
this issue. Last, we believe we are the beneficiary of a trend
towards a greater diversity of suppliers in the battery
industry.
We are focused on categories where delivering an improved
battery drives a high value to the product, resulting in premium
pricing for our solution and supportive of strong long-term
margins. We are pleased to see validation of our thesis playing out
in our customer engagements.
Our task now is to execute and prove our ability to scale
manufacturing of leading batteries that usher in the next era of
products for our customers.
Business Update
Manufacturing. Fab2 in Malaysia has begun to
take shape with the Agility Line having completed SAT and now
producing EX-1M batteries. We also made great progress with our
high-volume Gen2 Autoline, which has completed FAT for all key
modules and is in the process of being fully shipped and installed.
We expect the last module of equipment to arrive in Penang in the
coming weeks.
Our operations team additionally took on the task of 1) setting
up a test and safety lab in Penang and 2) moving R&D pilot line
equipment from Fab1 in Fremont to Fab2 in Penang. Our safety lab is
operational, and we expect our R&D pilot line to become
operational at Fab2 in the third quarter of 2024.
Commercialization. During the second quarter of
2024, we built, tested, and shipped initial samples of our
breakthrough EX-1M battery from our Fremont facility. We did this
prior to our Malaysia cutover to begin initial customer evaluation.
As we complete production of samples from the Agility Line in
Malaysia, we plan to replicate the intensive testing protocols we
obtained from our customers before shipping out samples from
Fab2.
During the quarter, we made progress with the leading smartphone
OEM customer announced in May, completing an important strategic
milestone within the development agreement. We also signed an MOU
with Elentec Co., Ltd., a leading consumer electronic battery pack
manufacturing company in Asia.
We also, during the quarter, identified incremental growth
opportunities for the conventional battery business we acquired
last year in Korea. Specifically, we see the unique high-rate
capability of these batteries that is well-suited for Korean
military applications today as also applicable for other allied
military customers in addition to markets such as power tools.
Technology and Products. During the second
quarter of 2024, we continued to work on our EX-1M and EX-2M
technology nodes for customer sampling. This included achieving
targeted yield on Fab1 equipment for EX-1M for large cells ahead of
the move to enhanced Gen2 equipment in Fab2. On EX-2M, we already
have built early prototype batteries that have validated our
targeted high-energy density by utilizing next generation
chemistries.
We have grown our R&D team significantly in the last year.
Excluding our acquisition of Routejade, our core R&D headcount
nearly doubled from the second quarter of 2023 to the second
quarter of 2024. Including Routejade, our R&D headcount is up
167% year-over-year.
Our lab in India is operational and continues to evaluate many
next-generation battery materials for future technology nodes. We
have also established a core R&D team in Malaysia that we
intend to more than double by year-end.
Financials. Total revenue in the second quarter
of 2024 was $3.8 million.
Our GAAP cost of revenue of $4.4 million in the second quarter
of 2024 was down from $7.1 million in the first quarter of 2024.
Our non-GAAP cost of revenue of $4.3 million in the second quarter
of 2024 was down from $5.2 million in the first quarter of
2024.
Our GAAP operating expenses of $88.1 million in the second
quarter of 2024 were up from $68.3 million in the first quarter of
2024 and included $38.1 million in restructuring expenses
associated with the actions we took to shift our manufacturing
operations from the U.S. to Malaysia while reducing our fixed
expenses. Our non-GAAP operating expenses of $30.9 million in the
second quarter of 2024 were down from $54.4 million in the first
quarter of 2024.
Our GAAP net loss attributable to Enovix of $115.9 million in
the second quarter of 2024 was up from $46.4 million in the first
quarter of 2024, which included $38.1 million in restructuring
expenses, of which $35.1 million were noncash charges. Our GAAP net
loss attributable to Enovix for the second quarter of 2024 also
included $33.7 million of expense due to an increase in the fair
value of our common stock warrants during the quarter.
Adjusted EBITDA in the second quarter of 2024 was a loss of
$23.1 million compared to an adjusted EBITDA loss of $26.3 million
in the first quarter of 2024.
Earnings per share in the second quarter of 2024 were a loss of
$0.67 on a GAAP basis and a loss of $0.14 on a non-GAAP basis
compared to a loss of $0.28 on a GAAP basis and a loss of $0.31 on
a non-GAAP basis in the first quarter of 2024.
We exited the second quarter of 2024 with $249.9 million of
cash, cash equivalents, and short-term investments due to cash used
in operating activities of $26.9 million and capital expenditures
of $25.2 million during the quarter, partially offset by cash
proceeds of $34.2 million from utilizing an ATM offering during the
quarter.
A full reconciliation of our GAAP to non-GAAP results is
available later in this report.
Outlook
For the third quarter of 2024, we expect revenue between $3.5
million and $4.5 million, a GAAP EPS loss of $0.30 to $0.36, an
adjusted EBITDA loss of $23.0 million to $29.0 million, and a
non-GAAP EPS loss of $0.17 to $0.23.
Summary
We made substantial progress in the second quarter of 2024 as
Fab2 went operational, and we took actions to lengthen our runway
while striking agreements with multiple leading customers. We are
focused on continuing this strong execution and look forward to
initiating multiple customer qualifications in the second half of
the year.
Conference Call Information
Enovix will hold a video conference call at 2:00 PM PT / 5:00 PM
ET today, July 31, 2024, to discuss the company’s business updates
and financial results. To join the call, participants must use the
following link to register:
https://enovix-q2-2024.open-exchange.net/registration. This link
will also be available via the Investor Relations section of
Enovix’s website at https://ir.enovix.com. An archived version
of the call will be available on the Enovix website for one year
at https://ir.enovix.com.
About EnovixEnovix is on a mission to deliver
high-performance batteries that unlock the full potential of
technology products. Everything from IoT, mobile, and computing
devices, to the vehicle you drive, needs a better battery. Enovix
partners with OEMs worldwide to usher in a new era of user
experiences. Our innovative, materials-agnostic approach to
building a higher performing battery without compromising safety
keeps us flexible and on the cutting-edge of battery technology
innovation.
Enovix is headquartered in Silicon Valley with facilities in
India, Korea and Malaysia. For more information visit
www.enovix.com and follow us on LinkedIn.
Non-GAAP Financial Measures
EBITDA, Adjusted EBITDA, and other non-GAAP
measures are intended as supplemental financial measures of our
performance that are neither required by, nor presented in
accordance with GAAP. We believe that the use of non-GAAP measures
provides an additional tool for investors to use in evaluating
ongoing operating results, trends, and in comparing our financial
measures with those of comparable companies, which may present
similar non-GAAP financial measures to investors.
However, you should be aware that when
evaluating the non-GAAP measures, we may incur future expenses
similar to those excluded when calculating these measures. In
addition, the presentation of these measures should not be
construed as an inference that our future results will be
unaffected by unusual or nonrecurring items. Our computation of
EBITDA, Adjusted EBITDA, and other non-GAAP measures may not be
comparable to other similarly titled measures computed by other
companies, because all companies may not calculate the non-GAAP
measures in the same fashion. Reconciliations of each non-GAAP
financial measure to the most directly comparable GAAP financial
measure can be found in the tables at the end of this report.
While Enovix provides third quarter 2024
guidance for adjusted EBITDA loss and non-GAAP EPS loss, we are
unable to provide without unreasonable efforts at this time a
GAAP to non-GAAP reconciliation of any forward-looking figures.
Such qualitative reconciliation to the corresponding
forward-looking GAAP financial measure cannot be provided
without unreasonable effort because of the inherent
difficulty of accurately forecasting the occurrence and financial
impact of the various adjusting items necessary for such
reconciliation that have not yet occurred, are out of our control,
or cannot be reasonably predicted, including but not limited to
warrant liabilities and stock-based compensation. For the same
reasons, we are unable to assess the probable significance of the
unavailable information, which could have a material impact on our
future GAAP financial result.
Forward-Looking Statements
This letter to shareholders contains
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Forward-looking
statements generally relate to future events or our future
financial or operating performance and can be identified by words
such as anticipate, believe, continue, could, estimate, expect,
intend, may, might, plan, possible, potential, predict, project,
should, would and similar expressions that convey uncertainty about
future events or outcomes. Forward-looking statements in this
letter to shareholders include, without limitation, our
expectations regarding, and our ability to respond to, market and
customer demand; our expectations regarding the level of customers’
interest in our batteries, the demand for more energy dense
batteries and the suitability of our products to address this
demand, and the impact of artificial intelligence (“AI”) features
on the foregoing; our financial and business performance; projected
improvements in our manufacturing, commercialization and R&D
activities at Fab2, including the operational capabilities of our
safety line and R&D pilot line; our expectations regarding
EX-1M sample production on the Agility Line following the
completion of site acceptance testing; our ability to meet goals
for yield and throughput; our expectations regarding the Malaysia
factory buildout and its capacity to support multiple customer
qualifications; the anticipated contributions of and benefits of
our growing R&D teams in Malaysia and India; our revenue
funnel; our efforts in the portable electronics and EV markets,
including the IoT, smartphone and virtual reality categories; our
ability to meet milestones and deliver on our objectives and
expectations, including our ability to test and sample batteries
from our Agility Line to customers; the implementation and success
of our business model and growth strategy, including our focus on
the addressable market categories in which we believe an improved
battery drives a high value to the product and premium pricing for
our solutions; our ability to manage our expenses and realize our
annual cost savings goals; our ability to manage and achieve the
benefits of our ongoing restructuring efforts; our ability to
effectively leverage our Routejade acquisition to take advantage of
incremental growth opportunities in the conventional battery
business by targeting complementary customer segments; and our
forecasts of our financial and performance guidance and
metrics.
Actual results could differ materially from
these forward-looking statements as a result of certain risks and
uncertainties, including, without limitation, our ability to
improve energy density among our products, establish sufficient
manufacturing and optimize manufacturing processes to meet demand,
source materials and establish supply relationships, and secure
adequate funds to execute on our operational and strategic goals;
the safety hazards associated with our batteries and the
manufacturing process; a concentration of customers in the military
market; certain unfavorable terms in our commercial agreements that
may expose us to liability and/or limit our ability to market our
products; market acceptance of our products; changes in consumer
preferences or demands; changes in industry standards; the impact
of technological development and competition; and global economic
conditions, including inflationary and supply chain pressures, and
political, social, and economic instability, including as a result
of armed conflict, war or threat of war, or trade and other
international disputes that could disrupt supply or delivery of, or
demand for, our products.
For additional information on these risks and
uncertainties and other potential factors that could affect our
business and financial results or cause actual results to differ
from the results predicted, please refer to our filings with the
Securities and Exchange Commission (“SEC”), including in the “Risk
Factors” and “Management’s Discussion and Analysis of Financial
Condition and Results of Operations” sections of our most recently
filed annual report on Form 10-K and quarterly report on Form 10-Q
and other documents that we have filed, or that we will file, with
the SEC. Any forward-looking statements in this letter to
shareholders speak only as of the date on which they are made. We
undertake no obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise, except as required by law.
For investor and media inquiries, please
contact:
Enovix CorporationCharles AndersonPhone: +1 (612) 229-9729Email:
canderson@enovix.com
Enovix
CorporationCondensed Consolidated Balance
Sheets (Unaudited)(In Thousands, Except Share and per
Share Amounts)
|
June 30,2024 |
|
December 31,2023 |
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
235,103 |
|
|
$ |
233,121 |
|
Short-term investments |
|
14,826 |
|
|
|
73,694 |
|
Accounts receivable, net |
|
1,665 |
|
|
|
909 |
|
Notes receivable, net |
|
3 |
|
|
|
1,514 |
|
Inventory |
|
9,508 |
|
|
|
8,737 |
|
Prepaid expenses and other current assets |
|
8,844 |
|
|
|
5,202 |
|
Total current assets |
|
269,949 |
|
|
|
323,177 |
|
Property and equipment,
net |
|
151,024 |
|
|
|
166,471 |
|
Customer relationship
intangibles and other intangibles, net |
|
38,774 |
|
|
|
42,168 |
|
Operating lease, right-of-use
assets |
|
14,333 |
|
|
|
15,290 |
|
Goodwill |
|
12,217 |
|
|
|
12,098 |
|
Other assets, non-current |
|
2,691 |
|
|
|
5,100 |
|
Total assets |
$ |
488,988 |
|
|
$ |
564,304 |
|
Liabilities and
Stockholders’ Equity |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
19,431 |
|
|
$ |
21,251 |
|
Accrued expenses |
|
16,530 |
|
|
|
13,976 |
|
Accrued compensation |
|
8,856 |
|
|
|
10,731 |
|
Short-term debt |
|
10,989 |
|
|
|
5,917 |
|
Deferred revenue |
|
7,007 |
|
|
|
6,708 |
|
Other liabilities |
|
5,090 |
|
|
|
2,435 |
|
Total current liabilities |
|
67,903 |
|
|
|
61,018 |
|
Long-term debt, net |
|
168,500 |
|
|
|
169,099 |
|
Warrant liability |
|
55,440 |
|
|
|
42,900 |
|
Operating lease liabilities,
non-current |
|
14,182 |
|
|
|
15,594 |
|
Deferred revenue,
non-current |
|
3,774 |
|
|
|
3,774 |
|
Deferred tax liability |
|
6,115 |
|
|
|
10,803 |
|
Other liabilities,
non-current |
|
11 |
|
|
|
13 |
|
Total liabilities |
|
315,925 |
|
|
|
303,201 |
|
Commitments and
Contingencies |
|
|
|
Stockholders’ equity: |
|
|
|
Common stock, $0.0001 par value; authorized shares of
1,000,000,000; issued and outstanding shares of $175,302,694 and
$167,392,315 as of June 30, 2024 and December 31, 2023,
respectively |
|
18 |
|
|
|
17 |
|
Additional paid-in-capital |
|
931,363 |
|
|
|
857,037 |
|
Accumulated other comprehensive gain (loss) |
|
15 |
|
|
|
(62 |
) |
Accumulated deficit |
|
(761,085 |
) |
|
|
(598,845 |
) |
Total Enovix's stockholders’ equity |
|
170,311 |
|
|
|
258,147 |
|
Non-controlling interest |
|
2,752 |
|
|
|
2,956 |
|
Total equity |
|
173,063 |
|
|
|
261,103 |
|
Total liabilities and equity |
$ |
488,988 |
|
|
$ |
564,304 |
|
|
|
|
|
|
|
|
|
Enovix
CorporationCondensed Consolidated Statements of
Operations(Unaudited)(In Thousands, Except Share and per
Share Amounts)
|
Quarters Ended |
|
Fiscal Years-to-Date Ended |
|
June 30, 2024 |
|
July 2, 2023 |
|
June 30, 2024 |
|
July 2, 2023 |
Revenue |
$ |
3,768 |
|
|
$ |
42 |
|
|
$ |
9,040 |
|
|
$ |
63 |
|
Cost of revenue |
|
4,423 |
|
|
|
14,235 |
|
|
|
11,495 |
|
|
|
26,483 |
|
Gross margin |
|
(655 |
) |
|
|
(14,193 |
) |
|
|
(2,455 |
) |
|
|
(26,420 |
) |
Operating expenses: |
|
|
|
|
|
|
|
Research and development |
|
29,065 |
|
|
|
16,553 |
|
|
|
77,853 |
|
|
|
40,302 |
|
Selling, general and administrative |
|
20,884 |
|
|
|
16,688 |
|
|
|
40,432 |
|
|
|
43,962 |
|
Impairment of equipment |
|
— |
|
|
|
4,411 |
|
|
|
— |
|
|
|
4,411 |
|
Restructuring cost |
|
38,146 |
|
|
|
— |
|
|
|
38,146 |
|
|
|
— |
|
Total operating expenses |
|
88,095 |
|
|
|
37,652 |
|
|
|
156,431 |
|
|
|
88,675 |
|
Loss from operations |
|
(88,750 |
) |
|
|
(51,845 |
) |
|
|
(158,886 |
) |
|
|
(115,095 |
) |
Other income (expense): |
|
|
|
|
|
|
|
Change in fair value of common stock warrants |
|
(33,660 |
) |
|
|
(14,340 |
) |
|
|
(12,540 |
) |
|
|
(27,180 |
) |
Interest income |
|
3,326 |
|
|
|
3,150 |
|
|
|
6,886 |
|
|
|
5,616 |
|
Interest expense |
|
(1,691 |
) |
|
|
(1,270 |
) |
|
|
(3,350 |
) |
|
|
(1,270 |
) |
Other income (loss), net |
|
242 |
|
|
|
(1 |
) |
|
|
708 |
|
|
|
20 |
|
Total other expense, net |
|
(31,783 |
) |
|
|
(12,461 |
) |
|
|
(8,296 |
) |
|
|
(22,814 |
) |
Loss before income tax
benefit |
|
(120,533 |
) |
|
|
(64,306 |
) |
|
|
(167,182 |
) |
|
|
(137,909 |
) |
Income tax benefit |
|
(4,586 |
) |
|
|
— |
|
|
|
(4,738 |
) |
|
|
— |
|
Net loss |
|
(115,947 |
) |
|
|
(64,306 |
) |
|
|
(162,444 |
) |
|
|
(137,909 |
) |
Net loss attributable to
non-controlling interests |
|
(75 |
) |
|
|
— |
|
|
|
(204 |
) |
|
|
— |
|
Net loss attributable to
Enovix |
$ |
(115,872 |
) |
|
$ |
(64,306 |
) |
|
$ |
(162,240 |
) |
|
$ |
(137,909 |
) |
|
|
|
|
|
|
|
|
Net loss per share
attributable to Enovix shareholders, basic and diluted |
$ |
(0.67 |
) |
|
$ |
(0.41 |
) |
|
$ |
(0.95 |
) |
|
$ |
(0.88 |
) |
Weighted average number of
common shares outstanding, basic and diluted |
|
172,399,172 |
|
|
|
157,151,386 |
|
|
|
170,272,069 |
|
|
|
156,397,145 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Enovix
CorporationCondensed Consolidated Statements of
Cash Flows (Unaudited)(In Thousands)
|
Fiscal Years-to-Date Ended |
|
June 30, 2024 |
|
July 2, 2023 |
Cash flows used in
operating activities: |
|
|
|
Net loss |
$ |
(162,444 |
) |
|
$ |
(137,909 |
) |
Adjustments to reconcile net
loss to net cash used in operating activities |
|
|
|
Depreciation, accretion and amortization |
|
30,917 |
|
|
|
7,100 |
|
Stock-based compensation |
|
31,797 |
|
|
|
44,199 |
|
Changes in fair value of common stock warrants |
|
12,540 |
|
|
|
27,180 |
|
Impairment and loss on disposals of long-lived assets |
|
35,107 |
|
|
|
4,411 |
|
Others |
|
172 |
|
|
|
— |
|
Changes in operating assets and liabilities: |
|
|
|
Accounts and notes receivables |
|
669 |
|
|
|
128 |
|
Inventory |
|
(771 |
) |
|
|
(163 |
) |
Prepaid expenses and other assets |
|
(1,562 |
) |
|
|
3,145 |
|
Accounts payable |
|
(8,250 |
) |
|
|
892 |
|
Accrued expenses and compensation |
|
3,465 |
|
|
|
1,849 |
|
Deferred revenue |
|
299 |
|
|
|
— |
|
Deferred tax liability |
|
(5,366 |
) |
|
|
— |
|
Other liabilities |
|
1,434 |
|
|
|
5 |
|
Net cash used in operating
activities |
|
(61,993 |
) |
|
|
(49,163 |
) |
Cash flows from
investing activities: |
|
|
|
Purchase of property and
equipment |
|
(40,297 |
) |
|
|
(15,724 |
) |
Purchases of investments |
|
(31,812 |
) |
|
|
(65,736 |
) |
Maturities of investments |
|
91,621 |
|
|
|
— |
|
Net cash provided by (used in)
investing activities |
|
19,512 |
|
|
|
(81,460 |
) |
Cash flows from
financing activities: |
|
|
|
Proceeds from issuance of
Convertible Senior Notes and loans |
|
4,572 |
|
|
|
172,500 |
|
Repayment of debt |
|
(73 |
) |
|
|
— |
|
Payments of debt issuance
costs |
|
— |
|
|
|
(5,228 |
) |
Purchase of Capped Calls |
|
— |
|
|
|
(17,250 |
) |
Payroll tax payments for
shares withheld upon vesting of RSUs |
|
(3,315 |
) |
|
|
(1,226 |
) |
Proceeds from the exercise of
stock options and issuance of common stock, net of issuance
costs |
|
42,753 |
|
|
|
972 |
|
Proceeds from issuance of
common stock under employee stock purchase plan |
|
1,145 |
|
|
|
1,169 |
|
Repurchase of unvested
restricted common stock |
|
(1 |
) |
|
|
(13 |
) |
Net cash provided by financing
activities |
|
45,081 |
|
|
|
150,924 |
|
Effect of exchange rate
changes on cash, cash equivalents and restricted cash |
|
(748 |
) |
|
|
— |
|
Change in cash, cash
equivalents, and restricted cash |
|
1,852 |
|
|
|
20,301 |
|
Cash and cash equivalents and
restricted cash, beginning of period |
|
235,123 |
|
|
|
322,976 |
|
Cash and cash equivalents, and
restricted cash, end of period |
$ |
236,975 |
|
|
$ |
343,277 |
|
|
|
|
|
Net Loss Attributable to Enovix to Adjusted EBITDA
Reconciliation
While we prepare our consolidated financial
statements in accordance with GAAP, we also utilize and present
certain financial measures that are not based on GAAP. We refer to
these financial measures as “non-GAAP” financial measures. In
addition to our financial results determined in accordance with
GAAP, we believe that EBITDA and Adjusted EBITDA are useful
measures in evaluating its financial and operational performance
distinct and apart from financing costs, certain non-cash expenses
and non-operational expenses.
These non-GAAP financial measures should be
considered in addition to results prepared in accordance with GAAP
but should not be considered a substitute for or superior to GAAP.
We endeavor to compensate for the limitation of the non-GAAP
financial measures presented by also providing the most directly
comparable GAAP measures.
We use non-GAAP financial information to
evaluate our ongoing operations and for internal planning,
budgeting and forecasting purposes. We believe that non-GAAP
financial information, when taken collectively, may be helpful to
investors in assessing its operating performance and comparing its
performance with competitors and other comparable companies. You
should review the reconciliations below but not rely on any single
financial measure to evaluate our business.
“EBITDA” is defined as earnings (net loss)
attributable to Enovix adjusted for interest expense, income tax
benefit, depreciation and amortization expense. “Adjusted EBITDA”
includes additional adjustments to EBITDA such as stock-based
compensation expense, change in fair value of common stock
warrants, inventory step-up, impairment of equipment and other
special items as determined by management which it does not believe
to be indicative of its underlying business trends.
Below is a reconciliation of net loss
attributable to Enovix on a GAAP basis to the non-GAAP EBITDA and
Adjusted EBITDA financial measures for the periods presented below
(in thousands):
|
Quarters Ended |
|
Fiscal Years-to-Date Ended |
|
June 30, 2024 |
|
July 2, 2023 |
|
June 30, 2024 |
|
July 2, 2023 |
Net loss attributable to Enovix |
$ |
(115,872 |
) |
|
$ |
(64,306 |
) |
|
$ |
(162,240 |
) |
|
$ |
(137,909 |
) |
Interest expense |
|
1,691 |
|
|
|
1,270 |
|
|
|
3,350 |
|
|
|
1,270 |
|
Income tax benefit |
|
(4,586 |
) |
|
|
— |
|
|
|
(4,738 |
) |
|
|
— |
|
Depreciation and amortization |
|
5,943 |
|
|
|
3,502 |
|
|
|
30,917 |
|
|
|
7,100 |
|
EBITDA |
|
(112,824 |
) |
|
|
(59,534 |
) |
|
|
(132,711 |
) |
|
|
(129,539 |
) |
Stock-based compensation expense (1) |
|
17,932 |
|
|
|
15,042 |
|
|
|
30,692 |
|
|
|
44,199 |
|
Change in fair value of common stock warrants |
|
33,660 |
|
|
|
14,340 |
|
|
|
12,540 |
|
|
|
27,180 |
|
Inventory step-up |
|
— |
|
|
|
— |
|
|
|
1,907 |
|
|
|
— |
|
Impairment of equipment |
|
— |
|
|
|
4,411 |
|
|
|
— |
|
|
|
4,411 |
|
Restructuring cost (1) |
|
38,146 |
|
|
|
— |
|
|
|
38,146 |
|
|
|
— |
|
Adjusted EBITDA |
$ |
(23,086 |
) |
|
$ |
(25,741 |
) |
|
$ |
(49,426 |
) |
|
$ |
(53,749 |
) |
(1) $1.1 million of stock-based compensation
expense is included in the restructuring cost line of the table
above for the quarter and fiscal year-to-date ended June 30,
2024.
Free Cash Flow Reconciliation
We define “Free Cash Flow” as (i) net cash from
operating activities less (ii) capital expenditures, net of
proceeds from disposals of property and equipment, all of which are
derived from our Consolidated Statements of Cash Flow. The
presentation of non-GAAP Free Cash Flow is not intended as an
alternative measure of cash flows from operations, as determined in
accordance with GAAP. We believe that this financial measure is
useful to investors because it provides investors to view our
performance using the same tool that we use to gauge our progress
in achieving our goals and it is an indication of cash flow that
may be available to fund investments in future growth initiatives.
Below is a reconciliation of net cash used in operating activities
to the Free Cash Flow financial measures for the periods presented
below (in thousands):
|
Fiscal Years-to-Date Ended |
|
June 30, 2024 |
|
July 2, 2023 |
Net cash used in operating activities |
$ |
(61,993 |
) |
|
$ |
(49,163 |
) |
Capital expenditures |
|
(40,297 |
) |
|
|
(15,724 |
) |
Free Cash Flow |
$ |
(102,290 |
) |
|
$ |
(64,887 |
) |
|
|
|
|
|
|
|
|
Other Non-GAAP Financial Measures
Reconciliation (In Thousands, Except Share and per Share
Amounts)
|
|
Quarters Ended |
|
Fiscal Years-to-Date Ended |
|
|
June 30, 2024 |
|
July 2, 2023 |
|
June 30, 2024 |
|
July 2, 2023 |
Revenue |
|
$ |
3,768 |
|
|
$ |
42 |
|
|
$ |
9,040 |
|
|
$ |
63 |
|
|
|
|
|
|
|
|
|
|
GAAP cost of
revenue |
|
$ |
4,423 |
|
|
$ |
14,235 |
|
|
$ |
11,495 |
|
|
$ |
26,483 |
|
Stock-based compensation
expense |
|
|
(95 |
) |
|
|
(1,654 |
) |
|
|
(95 |
) |
|
|
(2,605 |
) |
Inventory step-up |
|
|
— |
|
|
|
— |
|
|
|
(1,907 |
) |
|
|
— |
|
Non-GAAP cost of
revenue |
|
$ |
4,328 |
|
|
$ |
12,581 |
|
|
$ |
9,493 |
|
|
$ |
23,878 |
|
|
|
|
|
|
|
|
|
|
GAAP gross
margin |
|
$ |
(655 |
) |
|
$ |
(14,193 |
) |
|
$ |
(2,455 |
) |
|
$ |
(26,420 |
) |
Stock-based compensation
expense |
|
|
95 |
|
|
|
1,654 |
|
|
|
95 |
|
|
|
2,605 |
|
Inventory step-up |
|
|
— |
|
|
|
— |
|
|
|
1,907 |
|
|
|
— |
|
Non-GAAP gross
margin |
|
$ |
(560 |
) |
|
$ |
(12,539 |
) |
|
$ |
(453 |
) |
|
$ |
(23,815 |
) |
|
|
|
|
|
|
|
|
|
GAAP research and
development (R&D) expense |
|
$ |
29,065 |
|
|
$ |
16,553 |
|
|
$ |
77,853 |
|
|
$ |
40,302 |
|
Stock-based compensation
expense |
|
|
(7,303 |
) |
|
|
(5,456 |
) |
|
|
(13,857 |
) |
|
|
(17,123 |
) |
Amortization of intangible
assets |
|
|
(415 |
) |
|
|
— |
|
|
|
(831 |
) |
|
|
— |
|
Non-GAAP R&D
expense |
|
$ |
21,347 |
|
|
$ |
11,097 |
|
|
$ |
63,165 |
|
|
$ |
23,179 |
|
|
|
|
|
|
|
|
|
|
GAAP selling, general
and administrative (SG&A) expense |
|
$ |
20,884 |
|
|
$ |
16,688 |
|
|
$ |
40,432 |
|
|
$ |
43,962 |
|
Stock-based compensation
expense |
|
|
(10,534 |
) |
|
|
(7,932 |
) |
|
|
(16,740 |
) |
|
|
(24,471 |
) |
Amortization of intangible
assets |
|
|
(774 |
) |
|
|
— |
|
|
|
(1,530 |
) |
|
|
— |
|
Non-GAAP SG&A
expense |
|
$ |
9,576 |
|
|
$ |
8,756 |
|
|
$ |
22,162 |
|
|
$ |
19,491 |
|
|
|
|
|
|
|
|
|
|
GAAP operating
expenses |
|
$ |
88,095 |
|
|
$ |
37,652 |
|
|
$ |
156,431 |
|
|
$ |
88,675 |
|
Stock-based compensation
expense included in R&D expense |
|
|
(7,303 |
) |
|
|
(5,456 |
) |
|
|
(13,857 |
) |
|
|
(17,123 |
) |
Stock-based compensation
expense included in SG&A expense |
|
|
(10,534 |
) |
|
|
(7,932 |
) |
|
|
(16,740 |
) |
|
|
(24,471 |
) |
Amortization of intangible
assets |
|
|
(1,189 |
) |
|
|
— |
|
|
|
(2,361 |
) |
|
|
— |
|
Impairment of equipment |
|
|
— |
|
|
|
(4,411 |
) |
|
|
— |
|
|
|
(4,411 |
) |
Restructuring cost (1) |
|
|
(38,146 |
) |
|
|
— |
|
|
|
(38,146 |
) |
|
|
— |
|
Non-GAAP operating
expenses |
|
$ |
30,923 |
|
|
$ |
19,853 |
|
|
$ |
85,327 |
|
|
$ |
42,670 |
|
|
|
|
|
|
|
|
|
|
(1) $1.1 million of stock-based compensation
expense is included in the restructuring cost line of the table
above for the quarter and fiscal year-to-date ended June 30,
2024.
|
|
Quarters Ended |
|
Fiscal Years-to-Date Ended |
|
|
June 30, 2024 |
|
July 2, 2023 |
|
June 30, 2024 |
|
July 2, 2023 |
GAAP loss from operations |
|
$ |
(88,750 |
) |
|
$ |
(51,845 |
) |
|
$ |
(158,886 |
) |
|
$ |
(115,095 |
) |
Stock-based compensation
expense (1) |
|
|
17,932 |
|
|
|
15,042 |
|
|
|
30,692 |
|
|
|
44,199 |
|
Amortization of intangible
assets |
|
|
1,189 |
|
|
|
— |
|
|
|
2,361 |
|
|
|
— |
|
Inventory step-up |
|
|
— |
|
|
|
— |
|
|
|
1,907 |
|
|
|
— |
|
Impairment of equipment |
|
|
— |
|
|
|
4,411 |
|
|
|
— |
|
|
|
4,411 |
|
Restructuring cost (1) |
|
|
38,146 |
|
|
|
— |
|
|
|
38,146 |
|
|
|
— |
|
Non-GAAP loss from
operations |
|
$ |
(31,483 |
) |
|
$ |
(32,392 |
) |
|
$ |
(85,780 |
) |
|
$ |
(66,485 |
) |
|
|
|
|
|
|
|
|
|
GAAP net loss
attributable to Enovix |
|
$ |
(115,872 |
) |
|
$ |
(64,306 |
) |
|
$ |
(162,240 |
) |
|
$ |
(137,909 |
) |
Stock-based compensation
expense (1) |
|
|
17,932 |
|
|
|
15,042 |
|
|
|
30,692 |
|
|
|
44,199 |
|
Change in fair value of common
stock warrants |
|
|
33,660 |
|
|
|
14,340 |
|
|
|
12,540 |
|
|
|
27,180 |
|
Inventory step-up |
|
|
— |
|
|
|
— |
|
|
|
1,907 |
|
|
|
— |
|
Amortization of intangible
assets |
|
|
1,189 |
|
|
|
— |
|
|
|
2,361 |
|
|
|
— |
|
Impairment of equipment |
|
|
— |
|
|
|
4,411 |
|
|
|
— |
|
|
|
4,411 |
|
Restructuring cost (1) |
|
|
38,146 |
|
|
|
— |
|
|
|
38,146 |
|
|
|
— |
|
Non-GAAP net loss
attributable to Enovix shareholders |
|
$ |
(24,945 |
) |
|
$ |
(30,513 |
) |
|
$ |
(76,594 |
) |
|
$ |
(62,119 |
) |
|
|
|
|
|
|
|
|
|
GAAP net loss per
share attributable to Enovix, basic and diluted |
|
$ |
(0.67 |
) |
|
$ |
(0.41 |
) |
|
$ |
(0.95 |
) |
|
$ |
(0.88 |
) |
GAAP weighted average number
of common shares outstanding, basic and diluted |
|
|
172,399,172 |
|
|
|
157,151,386 |
|
|
|
170,272,069 |
|
|
|
156,397,145 |
|
|
|
|
|
|
|
|
|
|
Non-GAAP net loss per
share attributable to Enovix, basic and diluted |
|
$ |
(0.14 |
) |
|
$ |
(0.19 |
) |
|
$ |
(0.45 |
) |
|
$ |
(0.40 |
) |
GAAP weighted average number
of common shares outstanding, basic and diluted |
|
|
172,399,172 |
|
|
|
157,151,386 |
|
|
|
170,272,069 |
|
|
|
156,397,145 |
|
_______________________
(1) $1.1 million of stock-based compensation
expense is included in the restructuring cost line of the table
above for the quarter and fiscal year-to-date ended June 30,
2024.
Enovix (NASDAQ:ENVX)
過去 株価チャート
から 7 2024 まで 8 2024
Enovix (NASDAQ:ENVX)
過去 株価チャート
から 8 2023 まで 8 2024