Amprius Technologies, Inc. (AMPX) Q4 2024 Earnings Call Transcript

Access earnings results, analyst expectations, report, slides, earnings call, and transcript.

Overview

The earnings call summary presents mixed signals. While there is a positive outlook with a significant increase in cash position and a growing customer base, there is also a lack of clarity in management responses and no guidance on gross margin positivity. The Q&A section reveals optimism in customer conversion and global interest but highlights concerns about manufacturing diversification and potential geopolitical impacts. The absence of clear guidance and concerns about Q1 performance balance out the positive aspects, resulting in a neutral sentiment.

Key Financial Performance

Total Revenue Q4 2024 $10.6 million, a 170% increase from Q4 2023.

Product Revenue Q4 2024 $10.3 million, a $4.3 million or 71% increase sequentially, and a nearly 1,000% increase year-over-year from $0.9 million in Q4 2023.

Development Services and Grant Revenue Q4 2024 $0.3 million, down from $1.8 million in Q3 2024 and $3 million year-over-year.

Total Revenue Full Year 2024 $24.2 million, a 167% increase from $9.1 million in 2023.

Gross Margin Q4 2024 -21%, improved from -65% in Q3 2024 and -98% in Q4 2023, due to the launch of the SiCore product line.

Gross Margin Full Year 2024 -76%, improved from -162% in the prior year period.

Operating Expenses Q4 2024 $9.5 million, an increase of $3.4 million or 55% compared with Q3 2024 and an increase of $3.6 million or 62% from the prior year period.

GAAP Net Loss Q4 2024 $11.4 million or a net loss of $0.10 per share, compared to a net loss of $10.9 million in Q3 2024 and $9.7 million in Q4 2023.

Net Loss Full Year 2024 $44.7 million or negative $0.45 per share, compared to a net loss of $36.8 million or negative $0.43 per share in 2023.

Cash Position Q4 2024 $55.2 million in net cash, a $20.1 million net increase primarily from $22.6 million generated through common stock issuance.

Operating Cash Flow Q4 2024 $6.1 million used in operating cash flow.

Share-Based Compensation Q4 2024 $2.4 million, up from $1.7 million in Q3 2024 and $1.1 million in Q4 2023.

Full-Time Employees Q4 2024 99 full-time employees, up from 92 at the end of Q3 2024.

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Operating Highlights

New Battery Platform: In January 2025, Amprius introduced the first battery cell in the industry with combined high energy and high power, featuring 370 watt-hour per kilo energy density and up to 3,500 watt-hour per kilo power.

High-Performance EV Battery: Amprius developed and shipped high-performance EV battery cell samples to the USABC, exceeding development targets with a specific energy of 360 watt-hour per kilo.

New High-Performance Cells: New high-performance 6.3-ampere hour cylindrical cells were designed and shipped for the light electrical vehicle sector, delivering over 25% more capacity than current cells.

Customer Expansion: In 2024, Amprius shipped to a total of 235 customers, including new customers and repeat orders from long-term partners.

Light Electrical Vehicle Market: The light electrical vehicle market is expected to reach approximately $136 billion by 2029, contributing about 25% of Q4 revenue.

Drone Market Growth: The global drone market is projected to surge from $18 billion in 2023 to $213 billion by 2032.

Manufacturing Capacity: Amprius has over 1.8 gigawatt hour cell manufacturing capacity and is developing a global contract manufacturing network.

Revenue Growth: In Q4, Amprius achieved revenue of $10.6 million, a 35% increase from Q3 2024 and a 170% increase from Q4 2023.

Partnerships: Amprius signed agreements with Fortune 500 companies to develop high energy cycle cells for the light electrical vehicle market.

Cost Management: Amprius is diversifying manufacturing partnerships and supply chains to mitigate geopolitical risks and tariff-related issues.

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Risk or Challenges

Regulatory Issues: Amprius is monitoring policy challenges and potential industry headwinds resulting from recent changes in federal administration, which could impact the global battery supply chain.

Supply Chain Challenges: The company is taking actions to mitigate risks related to geopolitical concerns and tariff-related issues by diversifying manufacturing partnerships and supply chains.

Economic Factors: The company acknowledges the impact of economic policy on the battery supply chain, particularly with much of the supply located in Asia.

Competitive Pressures: Amprius faces competitive pressures in the battery market, necessitating continuous innovation and performance improvements to maintain market leadership.

Manufacturing Capacity: The company is focused on expanding its manufacturing capacity and capabilities, which is critical for meeting customer demand and achieving growth.

Financial Performance Risks: The company reported a negative gross margin and net loss, indicating financial performance risks that could affect future operations and investments.

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Guidance & Outlook

New Battery Platform Introduction: In January 2025, Amprius introduced the first battery cell in the industry with combined high energy and high power, featuring 370 watt-hour per kilo energy density and up to 3,500 watt-hour per kilo power.

Customer Engagement: In 2024, Amprius engaged with 235 customers, including significant contracts with Fortune 500 companies for light electrical vehicle applications.

Manufacturing Capacity Expansion: Amprius has over 1.8 gigawatt hour cell manufacturing capacity and is developing a global contract manufacturing network.

Product Development: Amprius is developing a large format 500 watt-hour per kilo battery cell in collaboration with AeroVironment, expected to be completed in 2025.

Revenue Expectations: Amprius generated $24.2 million in revenue for the full year 2024, a 167% increase from 2023, and anticipates continued growth in 2025.

CapEx Outlook: For 2025, Amprius expects to spend $1 million on supporting equipment for the 2-megawatt line in Fremont, with further construction dependent on industry dynamics.

Customer Orders: Amprius has over $16 million in new customer purchase orders in backlog for 2025, indicating strong revenue visibility.

Market Growth: The light electrical vehicle market is projected to reach approximately $136 billion by 2029, presenting significant growth opportunities for Amprius.

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Shareholder Return Plan

Shareholder Return Plan: Amprius Technologies has not announced any share buyback program or dividend program during the earnings call.

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Key Q&A

Q:Can you talk a little bit about the diversity of applications that you're seeing getting tested for? How much customization is required for those customers? And how many are in late stages of evaluation?

A:We have 230 customers in 2024. There are 3 types of customers: those replacing existing batteries, those needing to qualify and redesign their battery packs, and those needing to certify their own products. We anticipate converting a large portion of these customers to purchase orders in 2025.

Q:Can you talk about your strategy for incremental contract manufacturing?

A:Our contract manufacturing strategy has been successful without spending on manufacturing capacity. We have flexibility in cell design and currently have all manufacturing facilities in China, with partnerships in Korea and potential discussions in Europe.

Q:Can you give us an update on the year-to-date activity against that ATM?

A:As of December 31, we went into a traditional blackout period due to our financial results, so we've not been in the market.

Q:Can you walk us through the strategic decision to target many customers with smaller volumes versus fewer customers with larger volumes?

A:Most customers we engage with have high volume potential. We do our due diligence to ensure they have a growth path. Engaging with more customers increases opportunities for success.

Q:Have any of those customers walked away because of the China supply?

A:None of the customers have walked away due to supply source concerns, but some have requested changes in manufacturing base in the future.

Q:What can you do to help accelerate some of those commercial adoption?

A:We have tripled our sales team size to manage accounts effectively, as this is a design-in win process.

Q:How do you think about the shift to outside the U.S.?

A:We expect more customers outside the U.S. due to global interest in batteries, not because U.S. business isn't growing.

Q:Can you help us frame where backlog stands at year-end and how to think about visibility in 2025?

A:RPO was $15.9 million at the end of December, expected to convert within the next 12 months.

Q:What's it going to take to get a sizable project expansion with Fortune 500 customers?

A:We have engagements with two Fortune 500 companies with significant purchase possibilities, and battery evaluation is a major part of this venture.

Q:Are they looking to use a battery platform that you're already commercializing today?

A:The cell chemistry is the same, but the cell format is different.

Q:Can you talk about the gross margin progression for the year?

A:SiCore sales are gross margin positive from day 1, and we expect positive progression in gross margin as we grow.

Q:How would you contextualize the various customers you're talking to?

A:All customers have the potential to reach significant sales levels, but we don't expect them to reach optimized purchase volumes until 2025.

Q:Would you say that diversifying the contract manufacturing base is for trade-related contingencies?

A:Yes, it's good to have a diversified manufacturing base for different customer types and geopolitical concerns.

Q:What was the mix of end markets with the total amount of customers in '23?

A:In '23, we had no participation in the electrical vehicle business, but we expect it to grow significantly in '25.

Q:Will we see your revenue become more driven by existing customers?

A:Yes, existing customers will contribute more revenue than new customers as they move through the qualification process.

Q:What was the customer count at the end of fiscal '23?

A:Let me pull that from our filings, and I'll send that over to you.

Q:Can you provide any color on whether we should expect sequential improvements through 2025?

A:We expect to see sequential improvements, but Q1 may be tougher due to changes in the funding landscape.

Q:Is there a level where you think you can start turning gross margin positive?

A:We haven't given guidance on that yet.

Q:How different is the battery chemistry for eVTOL compared to what you are already shipping?

A:Our chemistry is robust, and we don't need major changes to support the eVTOL market.

Q:Review of Unclear Management Responses

A:Management did not provide a clear answer regarding the customer count at the end of fiscal '23, stating they would pull that information from filings and send it later.

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Earnings Word Cloud

The most frequently occurring keywords in this quarter's earning call

AMPX Transcript

Amprius Technologies, Inc. (AMPX) Q3 2025 Earnings Call Transcript

Positive11-7

The earnings call highlights strong revenue growth, improved gross margins, and increased customer adoption, which are positive indicators. The Q&A section supports this with discussions on significant customer demand and strategic partnerships. Despite some uncertainties in cash flow breakeven timing, the company's optimistic market outlook and strategic expansions suggest a positive sentiment. The absence of negative financial surprises and the focus on growth initiatives further reinforce a positive stock price reaction over the next two weeks.

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The earnings call highlights several positive factors: strong customer pipeline transition from qualification to revenue, gross margin positivity, significant market opportunities in drones and light electric vehicles, and a substantial government contract. Despite some lack of clarity on revenue mix and contract specifics, the overall sentiment is positive, with expectations of revenue growth and strategic partnerships.

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Unknown3-22

The earnings call reveals several concerning factors: a widened net loss, increased share-based compensation, and a rise in shares outstanding due to stock issuance, which can dilute value. Although there are positive aspects, such as increased cash position and potential customer conversion, the lack of clear guidance on gross margin improvement and the need for significant customer engagement timeframes suggest challenges ahead. The Q&A highlights potential risks with manufacturing dependencies and geopolitical concerns. Overall, the sentiment is more negative, indicating a likely stock price decline in the short term.

Earnings call transcript: Amprius Tech Q4 2024 sees revenue surge

Neutral3-20

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