Aspen Aerogels Inc (ASPN) Reports Q3 2023 Financial Results: Revenue Soars to $60.8 Million
Aspen Aerogels Inc (NYSE:ASPN) reports Q3 2023 revenue of $60.8 million, a significant increase from $36.7 million in Q3 2022.
Net loss reduced to $13.1 million from $29.6 million in the same period last year.
Adjusted EBITDA for Q3 2023 was $(7.3) million, showing an improvement from $(23.2) million in Q3 2022.
Aspen ended Q3 2023 with cash and equivalents of $94.6 million.
Aspen Aerogels Inc (NYSE:ASPN), a technology leader in sustainability and electrification solutions, announced its financial results for the third quarter of 2023 on November 1, 2023. The company reported a record revenue of $60.8 million, led by PyroThin revenues of $32.8 million, up 160% quarter-over-quarter. This is a significant increase from the $36.7 million revenue reported in the third quarter of last year. The company also managed to reduce its net loss to $13.1 million from $29.6 million in the same period last year.
Financial Performance
Aspen's Q3 gross profit margins stood at 23%, a 6-percentage point improvement over the prior quarter. The company's Adjusted EBITDA for the third quarter of 2023 was $(7.3) million, compared to $(23.2) million in the third quarter of last year. This represents a $3.5 million, or 33%, improvement quarter-over-quarter.
Business Highlights
Aspen achieved record quarterly Company revenues of $60.8 million and PyroThin thermal barrier revenues of $32.8 million in Q3, up 160% quarter-over-quarter. The company ended the third quarter of 2023 with cash and equivalents of $94.6 million.
Our PyroThin product offering continues to gain commercial traction on the basis of our clearly differentiated and proprietary technology," commented Don Young, Aspen's President and CEO. "Our EV Thermal Barrier revenues increased by over 2.5X versus the prior quarter, and we anticipate this demand growth to continue throughout the remainder of the year and into 2024."
2023 Financial Outlook
Aspen updated its 2023 full year outlook, expecting total revenue to be greater than $225.0 million, and net loss to range between $62.4 million and $52.4 million. Adjusted EBITDA is expected to range between $(40.0) million and $(30.0) million. The company also expects capital expenditures to be up to $175 million due to increased fabrication and assembly costs from accelerating PyroThin demand.
Balance Sheet and Cash Flow Analysis
As of September 30, 2023, Aspen had cash and cash equivalents of $94.6 million. The company's total assets stood at $605.1 million, while total liabilities were $195.3 million. For the three months ended September 30, 2023, net cash used in operating activities was $7.5 million, while investing activities used $32.3 million. Financing activities provided $126 thousand.
Non-GAAP Financial Measures
Aspen provided a reconciliation of net loss to non-GAAP Adjusted EBITDA in its financial schedules. The company defines Adjusted EBITDA as net income (loss) before interest expense, taxes, depreciation, amortization, stock-based compensation expense, and other items, which occur from time to time and which it does not believe are indicative of its core operating performance.
Explore the complete 8-K earnings release (here) from Aspen Aerogels Inc for further details.
This article first appeared on GuruFocus.
