Enovix Corporation Q4 and Full Year 2024 Financial Results

Enovix Corporation, a global high-performance battery company, has released its financial results for the fourth quarter and full year 2024. The company has reported significant achievements in revenue growth, manufacturing readiness, and strategic partnerships, setting the stage for a promising 2025.

Financial Highlights

Enovix reported record revenues for both the fourth quarter and the full year 2024. Fourth quarter revenues reached $9.7 million, near the high end of the company's guidance, while full year revenues were $23.1 million, marking a 202% increase from $7.6 million in 2023. The company also achieved its first-ever positive gross margin of $1.1 million or 11% of sales in Q4 2024.

Despite these gains, Enovix reported a GAAP net loss of $37.5 million for the fourth quarter, compared to a $22.5 million loss in the previous quarter. Adjusted EBITDA showed improvement, with a loss of $11.7 million in Q4 2024, compared to a loss of $21.6 million in Q3 2024. The company ended the year with $272.9 million in cash and cash equivalents.

Business and Operational Highlights

Enovix achieved several key milestones in Q4 2024, including the completion of Site Acceptance Testing (SAT) for its High-Volume Manufacturing (HVM) line at Fab2 in Malaysia. The company also shipped early engineering samples of its smartphone batteries to leading OEMs and secured a landmark prepaid purchase order for XR batteries from a global technology leader in AI and immersive technologies.

Additionally, Enovix successfully completed safety testing of its EX-1M battery and shipped the first EX-2M samples to customers. The company is on track to launch its first commercial smartphone battery in 2025, pending successful customer qualification.

Strategic Initiatives and Corporate Developments

Enovix made a strategic decision in 2024 to invest in the emerging AI-enabled smart eyewear market, developing a battery cell tailored for this market. This investment is expected to pay off as the market gains momentum, with new estimates projecting the smart eyewear market to reach tens of millions of units by 2028.

The company also observed increased interest from drone manufacturers and defense suppliers seeking battery solutions that comply with allied country supply chain requirements, following the US elections in November 2024.

Management's Perspective

Dr. Raj Talluri, President and CEO of Enovix, highlighted the company's achievements in manufacturing, technology, and sales, emphasizing the readiness of their manufacturing capabilities to meet strong demand. He noted that 2025 is off to a fast start, driven by accelerating AI innovation and a shifting landscape that is driving OEMs to diversify their supply chains.

Future Outlook

For the first quarter of 2025, Enovix expects revenue between $3.5 million and $5.5 million, a GAAP EPS loss of $0.23 to $0.29, an adjusted EBITDA loss of $21.0 million to $27.0 million, and a non-GAAP EPS loss of $0.15 to $0.21. The company is focused on launching its first smartphone battery and converting its IoT pipeline into contracted backlog, with mass production expected to commence in late 2025.

SEC Filing: Enovix Corp [ ENVX ] - 8-K - Feb. 19, 2025