• Revenue: $4.3 million, above the midpoint of forecast, 13% sequential growth.

• Non-GAAP EBITDA: Loss of $21.6 million, better than guidance range of $23 million to $29 million loss.

• Non-GAAP EPS: Loss of $0.17, at the high end of guidance range of $0.17 to $0.23 loss.

• Cash and Equivalents: Approximately $200 million at quarter-end.

• CapEx: $19 million.

• Cash Used in Operations: $31 million during the third quarter.

• Q4 2024 Revenue Guidance: $8 million to $10 million.

• Q4 2024 Adjusted EBITDA Guidance: Loss of $19 million to $25 million.

• Q4 2024 Non-GAAP EPS Guidance: Loss of $0.17 to $0.23.

• Warning! GuruFocus has detected 4 Warning Signs with ENVX.

Release Date: October 29, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Enovix Corp (NASDAQ:ENVX) reported Q3 revenue of $4.3 million, exceeding the midpoint of their forecast and showing a 13% sequential growth.

• The company successfully opened Fab2 in Malaysia, which has impressed leading smartphone and IoT companies, enhancing confidence in their manufacturing capabilities.

• Enovix Corp (NASDAQ:ENVX) secured a new agreement with a leading global smartphone OEM for battery cell qualification, marking their first official entry into the smartphone market.

• The company has formalized a strategic partnership with a second leading smartphone OEM, setting the stage for high-volume production in 2025.

• Enovix Corp (NASDAQ:ENVX) ended the quarter with a strong balance sheet, holding approximately $200 million in cash and equivalents, providing financial runway well into 2026.

Negative Points

• The company reported a non-GAAP EBITDA loss of $21.6 million, although it was above their guidance range.

• Non-GAAP EPS came in at a loss of $0.17, at the high end of their guidance range.

• Enovix Corp (NASDAQ:ENVX) used $31 million in cash for operations during the third quarter, indicating significant cash burn.

• The company anticipates an adjusted EBITDA loss of $19 million to $25 million for Q4 2024.

• There is still significant work required to pass customer qualification processes and ramp up high-volume production lines.

Q & A Highlights

Q: What yields are currently being seen on the Agility line, and when can we expect an update on HVM line yields? A: Ajay Marathe, Chief Operating Officer, stated that the Agility Line completed the SAT last quarter and is operating at yields close to 80%. The HVM line, which is in SAT mode at Fab2, is expected to achieve similar yields.

Q: How long of a first-mover advantage does Enovix have before competition begins utilizing silicon in batteries on a larger scale? A: Raj Talluri, President and CEO, explained that Enovix has a patent-protected process with significant trade secrets and industry know-how. They are the first to use 100% active silicon in consumer market batteries, which gives them a unique advantage over competitors who use much less silicon.