ENVX - Enovix shares rallies 22% premarket post Q2 results

• Enovix ( ENVX ) for Q2 , reported first revenue, consisting of ~$5.1M of service revenue and a small contribution from commercial battery cells, which met a commitment made in February 2021, when the Co. projected first product revenue from Fab-1 in Fremont in Q2 2022.
• Service revenue included $5M from a single customer based on the shipment of commercial cells from Fab-1 and our completion of various milestones of a product development program that included the design, development, and shipment of custom validation cells.
• The total revenue funnel is ~$1.5B. Active designs and design wins in funnel increased to $414M in Q2 2022 from $371M in Q1 2022.
• The Co.’s balance sheet is strong with net cash of $385M, Capex were ~$4M due to the timing of the orders for Gen2 production line and the Agility line.
• Adj. EBITDA was a loss of $18M, compared to an adjusted EBITDA loss of $11.7M in Q2 2021 and an adjusted EBITDA loss of $19.4M in Q1 2022.
• Outlook: The Co. expects FY 2022 revenue between $6-$8M based on prioritization of improvement activities in the Fab-1 during the current quarter over shipments. The Co. continue to expect revenue to consist of product and service revenue, with service revenue being a significant factor.
• For FY 2022, expect to use between $160-$180M of cash, roughly half of which will come from capex. The Co. are lowering its cash use guidance primarily due to the timing of capital equipment orders.
• Previously: Enovix GAAP EPS of -$0.18 beats by $0.01, revenue of $5.1M beats by $4.78M (Aug. 10)

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