Aspen Aerogels, Inc. Reports First Quarter 2024 Financial Results and Recent Business Highlights
Raising 2024 baseline Adjusted EBITDA outlook by 83%
Expecting positive net income for 2024
Total revenue for the first quarter of 2024 was
Adjusted EBITDA for the first quarter of 2024 was
Recent Business Highlights & Quarterly Performance
- Company revenue of
$94.5 million , up 12% quarter-over-quarter (QoQ) and 107% year-over-year (YoY)- Thermal Barriers:
$65.4 million of revenue, up 23% QoQ and 459% YoY Energy Industrial :$29.1 million of supply constrained revenue, down 7% QoQ and down 14% YoY
- Thermal Barriers:
-
Energy Industrial segment on path to deliver over$150 million of revenue in 2024, shipped$14.6 million of revenue from our external manufacturing facility in Q1 - Delivered gross margins of 37%, a 2-percentage point improvement QoQ and 26-percentage point improvement YoY
- Adjusted EBITDA of
$12.9 million , a$3.8 million improvement or 42% QoQ and$26.9 million improvement YoY - Operating income of
$2.4 million , a$1.1 million improvement or 76% QoQ and$21.3 million improvement YoY - Ended first quarter of 2024 with cash and equivalents of
$101.5 million - Received coveted Automotive News PACE Award for PyroThin® cell-to-cell (C2C) barrier platform;
Automotive News' PACE program is recognized globally as the most prestigious innovation award for automotive suppliers - Also presented with a
PACE Innovation Partnership Award, recognizingAspen's collaboration with General Motors centered on our PyroThin C2C barriers as the thermal runaway solution forGM's Ultium battery platform
"We continue to execute the transition of our
Updated 2024 Financial Outlook
($ in millions, except per share amounts) |
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Metric |
Prior 2024 Outlook |
Updated 2024 Outlook |
Delta |
% Improvement |
|
Revenue YoY Growth |
>350 47% |
>380 59% |
30 12% |
9% 26% |
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Adjusted EBITDA |
>30 |
>55 |
25 |
83 % |
|
Net Income (Loss) |
>(23) |
>2 |
25 |
109 % |
|
Earnings Per Share |
>(0.30) |
>0.03 |
0.33 |
109 % |
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The Company's 2024 outlook assumes depreciation and amortization of
A reconciliation of net loss to non-GAAP Adjusted EBITDA for the 2024 financial outlook is provided in the financial schedules that are part of this press release. An explanation of this non-GAAP financial measure is also included below under the heading "Non-GAAP Financial Measures."
Last Twelve-Month Financial Comparison
A comparison of key financial metrics for the trailing twelve-month periods ended
($ in millions) |
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Metric |
LTM Q1 2023 |
LTM Q1 2024 |
Delta |
% Improvement |
|
Revenue |
188 |
288 |
100 |
53 % |
|
Gross Profit % Margin |
12 6% |
87 30% |
75 |
629 % |
|
Adjusted EBITDA % Margin |
(60) (32%) |
4 1% |
64 |
107 % |
|
Operating Income % Margin |
(80) (42%) |
(28) (10%) |
52 |
65 % |
|
Net Loss % Margin |
(80) (43%) |
(31) (11%) |
49 |
61 % |
|
Total CAPEX |
213 |
152 |
(61) |
29 % |
|
Conference Call and Webcast Notification
A conference call with
Shareholders and other interested parties may call +1 (833) 470-1428 (domestic) or +1 (929) 526-1599 (international) and reference conference ID "917527" to participate in the conference call. In addition, the conference call and an accompanying slide presentation will be available live as a listen-only webcast hosted at the Investors section of
Following the live event, an archived version of the webcast will be available on
Non-GAAP Financial Measures
In addition to providing financial measurements based on generally accepted accounting principles in
Management believes that this non-GAAP financial measure reflects
The non-GAAP financial measure does not replace the presentation of
About
Special Note Regarding Forward-Looking and Cautionary Statements
This press release and any related discussion contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties that could cause actual results to be materially different from historical results or from any future results expressed or implied by such forward-looking statements, including statements relating to
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2024 |
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2023 |
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(In thousands) |
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Assets |
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Current assets: |
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Cash and cash equivalents |
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$ |
101,461 |
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$ |
139,723 |
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Restricted cash |
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157 |
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248 |
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Accounts receivable, net |
|
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84,029 |
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69,995 |
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Inventories |
|
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45,750 |
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39,189 |
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Prepaid expenses and other current assets |
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23,708 |
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17,176 |
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Total current assets |
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255,105 |
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266,331 |
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Property, plant and equipment, net |
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422,736 |
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417,227 |
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Operating lease right-of-use assets |
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16,824 |
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17,212 |
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Other long-term assets |
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3,324 |
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2,278 |
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Total assets |
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$ |
697,989 |
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$ |
703,048 |
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Liabilities and Stockholders' Equity |
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Current liabilities: |
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Accounts payable |
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$ |
44,713 |
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$ |
51,094 |
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Accrued expenses |
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12,762 |
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22,811 |
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Deferred revenue |
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3,130 |
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2,316 |
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Finance obligation for sale and leaseback transactions |
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1,206 |
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— |
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Operating lease liabilities |
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1,769 |
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1,874 |
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Total current liabilities |
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63,580 |
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78,095 |
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Convertible note - related party |
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118,030 |
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114,992 |
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Finance obligation for sale and leaseback transactions long-term |
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3,556 |
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— |
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Operating lease liabilities long-term |
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21,620 |
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21,906 |
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Total liabilities |
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206,786 |
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214,993 |
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Stockholders' equity: |
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Total stockholders' equity |
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491,203 |
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488,055 |
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Total liabilities and stockholders' equity |
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$ |
697,989 |
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$ |
703,048 |
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Three Months Ended |
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2024 |
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2023 |
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(In thousands, except |
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Revenue |
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$ |
94,501 |
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$ |
45,586 |
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Cost of revenue |
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59,358 |
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40,500 |
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Gross profit |
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35,143 |
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5,086 |
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Operating expenses: |
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Research and development |
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4,489 |
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4,099 |
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Sales and marketing |
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8,303 |
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7,713 |
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General and administrative |
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17,213 |
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12,182 |
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Impairment of equipment under development |
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2,702 |
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— |
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Total operating expenses |
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32,707 |
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23,994 |
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Income (loss) from operations |
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2,436 |
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(18,908) |
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Other income (expense) |
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Interest expense, convertible note - related party |
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(3,038) |
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(275) |
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Interest income (expense) |
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(477) |
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2,387 |
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Total other income (expense) |
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(3,515) |
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2,112 |
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Loss before income tax expense |
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(1,079) |
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(16,796) |
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Income tax expense |
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(756) |
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— |
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Net loss |
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$ |
(1,835) |
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$ |
(16,796) |
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Net loss per share: |
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Basic and diluted |
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$ |
(0.02) |
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$ |
(0.24) |
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Weighted-average common shares outstanding: |
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Basic and diluted |
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75,762,893 |
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69,162,739 |
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Analysis of Cash Flow
The following table summarizes our cash flows for the periods indicated.
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Three Months Ended |
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(In thousands) |
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Net cash provided by (used in): |
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Operating activities |
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$ |
(17,749) |
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Investing activities |
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(25,863) |
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Financing activities |
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5,259 |
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Net (decrease) increase in cash |
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(38,353) |
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Cash, cash equivalents and restricted cash at beginning of period |
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139,971 |
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Cash, cash equivalents and restricted cash at end of period |
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$ |
101,618 |
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Reconciliation of Non-GAAP Financial Measures
The following tables present a reconciliation of the non-GAAP financial measure included in this press release to the most directly comparable GAAP measure:
Reconciliation of Adjusted EBITDA to Net Loss
We define Adjusted EBITDA as net income (loss) before interest expense, taxes, depreciation, amortization, stock-based compensation expense and other items, which occur from time to time and which we do not believe are indicative of our core operating performance.
For the three months ended
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Three Months Ended |
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2024 |
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2023 |
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(In thousands) |
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Net loss |
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$ |
(1,835) |
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$ |
(16,796) |
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Depreciation and amortization |
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5,786 |
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2,704 |
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Stock-based compensation |
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4,706 |
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2,267 |
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Other expense (income) |
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3,515 |
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(2,112) |
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Income tax expense |
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756 |
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- |
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Adjusted EBITDA |
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$ |
12,928 |
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$ |
(13,937) |
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For the trailing twelve months ended
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Last Twelve Months |
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2024 |
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2023 |
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(In thousands) |
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Net loss |
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$ |
(30,850) |
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$ |
(80,050) |
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Depreciation and amortization |
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18,400 |
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9,797 |
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Stock-based compensation |
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13,393 |
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9,824 |
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Other expense |
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2,235 |
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|
521 |
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Income tax expense |
|
|
756 |
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- |
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Adjusted EBITDA |
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$ |
3,934 |
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$ |
(59,908) |
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For the 2024 full year financial outlook:
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Year Ending |
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Current |
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Prior |
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(In thousands) |
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Net income (loss) |
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$ |
2,000 |
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$ |
(23,000) |
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Depreciation and amortization |
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30,000 |
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30,000 |
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Stock-based compensation |
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14,000 |
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14,000 |
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Other expense, net and income tax expense |
|
|
9,000 |
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|
9,000 |
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Adjusted EBITDA |
|
$ |
55,000 |
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$ |
30,000 |
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