Published on 14 Jan 2024 on Zacks via Yahoo Finance
Aspen (ASPN) Provides Preliminary Revenue Results & Guidance
Aspen Aerogels, Inc. ASPN provided preliminary revenue results for the fourth quarter and 2023, a preliminary 2024 revenue outlook and the initial shipments through its supplemental aerogel supply for its Energy Industrial business.For fourth-quarter 2023, ASPN generated revenues of $84 million, up 38% quarter over quarter. Segment-wise, PyroThin thermal barrier revenues grew 61% quarter over quarter to $53 million. Energy Industrial revenues of $31 million were also up 11% quarter over quarter.In the fourth quarter of 2023, the company successfully delivered Energy Industrial products to customers through its supplemental supply. Meanwhile, the company expects positive adjusted EBITDA but a net loss for the quarter.For 2023, it generated revenues of $238 million, up 32% from 2022. Segment-wise, PyroThin thermal barrier revenues grew 98% year-over-year to $110 million. Energy Industrial revenues of $128 million were also up 3% year over year.Don Young, Aspen's president and CEO, stated, "We are proud of the results that the team delivered in 2023 by effectively doubling our revenues in two years, a goal that we've been striving for since early 2021. Our profitability profile is also vastly improved as we focus on driving to our gross margin and adjusted EBITDA margin targets of 35% and 25%, respectively."For 2024, the company expects revenues of $350 million with upside potential as EV production accelerates, resulting in more than 47% year-over-year growth.The company’s customers are facing challenges with launching and scaling new EV nameplates. Navigating this uncertainty, ASPN is continuing to optimize its cost structure, maximize the potential of the Energy Industrial business, broaden its EV customer base, indulge in right-time capital expenditures and identify further operating efficiencies.Investors, please note that Aspen's preliminary 2023 results do not represent a comprehensive statement of its financial results for the fourth quarter and 2023 and remain subject to the completion of its financial closing procedures and internal reviews. Thus, actual results for the fourth quarter and full year may vary materially from these preliminary estimates. Aspen plans to release the fourth quarter of 2023 results on Feb 12, after market close.
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