Amprius Technologies Inc ((AMPX)) has held its Q4 earnings call. Read on for the main highlights of the call.
Amprius Technologies’ recent earnings call paints a picture of robust growth tempered by financial challenges. The company showcased strong revenue growth and a widening customer base, alongside strategic global market penetration. However, the financial metrics reveal ongoing challenges, with negative gross margins and a notable net loss. The sentiment remains optimistic due to strategic partnerships and contract manufacturing successes, indicating a promising future.
Record Sales Revenue
Amprius Technologies reported record sales revenue of $10.6 million in Q4 2024, marking a 35% increase from the previous quarter and a 170% rise from the same period last year. The full-year revenue reached $24.2 million, a 167% increase from 2023, highlighting the company’s impressive growth trajectory.
Customer Expansion
The company expanded its customer base significantly, shipping to 98 customers in Q4 2024, including 53 new ones. Total customer engagements for the year reached 235, underscoring Amprius’ strong growth path and the competitiveness of its products in the market.
Global Market Penetration
Amprius made significant strides in global market penetration, with 77% of Q4 2024 revenue coming from outside the United States, compared to just 22% in the same period last year. This shift indicates a substantial expansion of its international customer base.
Fortune 500 Agreements
The company secured agreements with two Fortune 500 companies, including a nonbinding letter of intent with a Fortune Global 500 technology OEM to develop a high-energy battery cell. Additionally, Amprius signed a development contract for a custom high-energy density SiMaxx pouch cell.
Contract Manufacturing Success
Amprius achieved a significant milestone by securing over 1.8 gigawatt-hour cell manufacturing capacity through contract manufacturing. This approach allows for flexibility and scalability without the need for infrastructure investment.
Negative Gross Margin
Despite improvements, Amprius’ gross margin remained negative at 21% in Q4 2024, compared to negative 65% in Q3 2024 and negative 98% in Q4 2023. The negative margin is attributed to cost structure and preconstruction planning costs.
Net Loss
The company reported a GAAP net loss of $11.4 million for Q4 2024 and $44.7 million for the full year, with a negative EPS of $0.10 per share in Q4 and $0.45 for the year, reflecting ongoing financial challenges.
R&D and Operating Expense Increase
Operating expenses for Q4 2024 rose to $9.5 million, a 55% increase from Q3 2024. This rise was due to higher R&D costs and nonrecurring charges, including stock-based compensation and a write-down of property, plant, and equipment.
Forward-Looking Guidance
Looking ahead, Amprius Technologies aims to maintain its growth momentum by expanding its customer base and enhancing its manufacturing capabilities in 2025. The company plans to continue developing its global contract manufacturing network, with partnerships in Korea and Europe, to support future growth.
In conclusion, Amprius Technologies’ earnings call reflects a company on a strong growth path, with significant achievements in revenue and customer expansion. However, financial challenges persist, as evidenced by negative gross margins and net losses. The strategic partnerships and global market penetration offer a promising outlook, suggesting that Amprius is well-positioned for future success.