Aspen Aerogels, Inc. Reports Second Quarter 2024 Financial Results and Recent Business Highlights
Record quarterly revenues of
Delivered
Increased 2024 revenue and profitability outlook for the second consecutive quarter
Total revenue for the second quarter of 2024 was
Adjusted EBITDA for the second quarter of 2024 was
Recent Business Highlights & Quarterly Performance
- Company revenue of
$117.8 million , up 25% quarter-over-quarter (QoQ) and 145% year-over-year (YoY)- Thermal Barriers:
$80.8 million of revenue, up 24% QoQ and 540% YoY Energy Industrial :$36.9 million of supply constrained revenue, up 27% QoQ and 4% YoY
- Thermal Barriers:
-
Energy Industrial segment remains on path to deliver over$150 million of revenue in 2024; shipped$28.3 million of revenue from our external manufacturing facility in Q2, an increase of 94% QoQ. Carbon capture projects are beginning to present additional market opportunities. - Delivered gross margins of 44%, a 7-percentage point improvement QoQ and 26-percentage point improvement YoY
- Net income of
$16.8 million , an$18.7 million improvement QoQ and$32.2 million improvement YoY - Adjusted EBITDA of
$28.9 million (25% margin), a$16.0 million or 124% improvement QoQ and$39.8 million improvement YoY - Operating income of
$20.0 million , a$17.6 million improvement or 720% QoQ and$37.0 million improvement YoY - Cash generated from operations of
$6.8 million in the quarter - Ended second quarter of 2024 with cash and equivalents of
$91.4 million
"This quarter's results demonstrate the significant operating leverage of our business model as we continue to utilize a higher percentage of our current capacity and effectively execute our strategy," commented
Updated 2024 Financial Outlook
($ in millions, except per share amounts) |
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Metric |
Prior 2024 Outlook |
Current 2024 Outlook |
Δ Prior |
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Revenue YoY Growth |
>380 59% |
>390 63% |
10
|
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Net Income |
>2 |
>7 |
5 |
|
Adjusted EBITDA |
>55 |
>60 |
5 |
|
Earnings Per Share (Diluted) |
>0.03 |
>0.09 |
0.06 |
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|
The Company's 2024 outlook assumes depreciation and amortization of
A reconciliation of net income to 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."
Late last year, we announced that the
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 Q2 2023 |
LTM Q2 2024 |
Delta |
% Improvement |
|
Revenue |
|
190 |
357 |
167 |
88 % |
|
Gross Profit |
|
21 |
130 |
109 |
506 % |
|
|
% Margin |
11 % |
36 % |
|
|
|
Net Income (Loss) |
|
(71) |
1 |
72 |
102 % |
|
|
% Margin |
(38 %) |
0 % |
|
|
|
Adjusted EBITDA |
|
(52) |
44 |
96 |
183 % |
|
|
% Margin |
(28 %) |
12 % |
|
|
|
Operating Income |
|
(74) |
9 |
83 |
112 % |
|
|
% Margin |
(39 %) |
3 % |
|
|
|
Total CAPEX |
|
241 |
111 |
(130) |
54 % |
|
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 "517793" 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
ASPEN AEROGELS, INC. Condensed Consolidated Balance Sheets (Unaudited and in thousands)
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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 |
|
$ |
91,381 |
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$ |
139,723 |
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Restricted cash |
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|
394 |
|
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|
248 |
|
Accounts receivable, net |
|
|
116,928 |
|
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|
69,995 |
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Inventories |
|
|
53,030 |
|
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|
39,189 |
|
Prepaid expenses and other current assets |
|
|
26,804 |
|
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|
17,176 |
|
Total current assets |
|
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288,537 |
|
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|
266,331 |
|
Property, plant and equipment, net |
|
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437,973 |
|
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|
417,227 |
|
Operating lease right-of-use assets |
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18,671 |
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17,212 |
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Other long-term assets |
|
|
3,448 |
|
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|
2,278 |
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Total assets |
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$ |
748,629 |
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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 |
|
$ |
57,246 |
|
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$ |
51,094 |
|
Accrued expenses |
|
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19,684 |
|
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22,811 |
|
Deferred revenue |
|
|
3,095 |
|
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|
2,316 |
|
Finance obligation for sale and leaseback transactions |
|
|
1,254 |
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— |
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Operating lease liabilities |
|
|
2,151 |
|
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|
1,874 |
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Total current liabilities |
|
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83,430 |
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|
78,095 |
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Convertible note - related party |
|
|
121,074 |
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|
114,992 |
|
Finance obligation for sale and leaseback transactions long-term |
|
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3,224 |
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— |
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Operating lease liabilities long-term |
|
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23,074 |
|
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21,906 |
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Total liabilities |
|
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230,802 |
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214,993 |
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Stockholders' equity: |
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Total stockholders' equity |
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517,827 |
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488,055 |
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Total liabilities and stockholders' equity |
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$ |
748,629 |
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$ |
703,048 |
|
Consolidated Statements of Operations (Unaudited and in thousands, except share and per share data)
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Three Months Ended |
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Six Months Ended |
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2024 |
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2023 |
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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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$ |
117,770 |
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$ |
48,158 |
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$ |
212,271 |
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$ |
93,744 |
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Cost of revenue |
|
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66,192 |
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39,751 |
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125,550 |
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80,251 |
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Gross profit |
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51,578 |
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8,407 |
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86,721 |
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13,493 |
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Operating expenses: |
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Research and development |
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4,565 |
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3,964 |
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9,054 |
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8,063 |
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Sales and marketing |
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9,521 |
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8,127 |
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17,824 |
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15,840 |
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General and administrative |
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17,506 |
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13,360 |
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34,719 |
|
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25,542 |
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Impairment of equipment under development |
|
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— |
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— |
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2,702 |
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— |
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Total operating expenses |
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31,592 |
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25,451 |
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64,299 |
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|
49,445 |
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Income (loss) from operations |
|
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19,986 |
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(17,044) |
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22,422 |
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(35,952) |
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Other income (expense) |
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Interest expense, convertible note - related party |
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(3,043) |
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(211) |
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(6,081) |
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(486) |
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Interest income (expense) |
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|
741 |
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1,832 |
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|
264 |
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4,219 |
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Total other income (expense) |
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(2,302) |
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1,621 |
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(5,817) |
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3,733 |
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Income (loss) before income tax expense |
|
|
17,684 |
|
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|
(15,423) |
|
|
|
16,605 |
|
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(32,219) |
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Income tax expense |
|
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(866) |
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|
|
— |
|
|
|
(1,622) |
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|
— |
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Net income (loss) |
|
$ |
16,818 |
|
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$ |
(15,423) |
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$ |
14,983 |
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$ |
(32,219) |
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Net income (loss) per share: |
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Basic |
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$ |
0.22 |
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$ |
(0.22) |
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$ |
0.20 |
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$ |
(0.47) |
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Diluted |
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$ |
0.21 |
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$ |
(0.22) |
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$ |
0.19 |
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$ |
(0.47) |
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Weighted-average common shares outstanding: |
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Basic |
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76,336,811 |
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69,249,281 |
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76,049,852 |
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69,206,249 |
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Diluted |
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78,981,383 |
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69,249,281 |
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78,749,199 |
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69,206,249 |
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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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$ |
6,843 |
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Investing activities |
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(25,863) |
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(24,827) |
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Financing activities |
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5,259 |
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8,141 |
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Net (decrease) increase in cash |
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(38,353) |
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(9,843) |
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Cash, cash equivalents and restricted cash at beginning of period |
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139,971 |
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101,618 |
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Cash, cash equivalents and restricted cash at end of period |
|
$ |
101,618 |
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$ |
91,775 |
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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 income (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 and six months ended
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Three Months Ended |
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Six Months Ended |
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2024 |
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2023 |
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2024 |
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2023 |
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(In thousands) |
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Net income (loss) |
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$ |
16,818 |
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$ |
(15,423) |
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$ |
14,983 |
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$ |
(32,219) |
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Depreciation and amortization |
|
|
5,986 |
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3,503 |
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11,772 |
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|
6,207 |
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Stock-based compensation |
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2,971 |
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2,710 |
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7,677 |
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4,977 |
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Other expense (income) |
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2,302 |
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(1,621) |
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5,817 |
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(3,733) |
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Income tax expense |
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|
866 |
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- |
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|
1,622 |
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- |
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Adjusted EBITDA |
|
$ |
28,943 |
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$ |
(10,831) |
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$ |
41,871 |
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$ |
(24,768) |
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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 income (loss) |
|
$ |
1,391 |
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$ |
(71,423) |
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Depreciation and amortization |
|
|
20,883 |
|
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|
11,268 |
|
Stock-based compensation |
|
|
13,654 |
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|
10,239 |
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Other expense (income) |
|
|
6,158 |
|
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|
(2,504) |
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Income tax expense |
|
|
1,622 |
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|
- |
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Adjusted EBITDA |
|
$ |
43,708 |
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$ |
(52,420) |
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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 |
|
$ |
7,000 |
|
|
$ |
2,000 |
|
Depreciation and amortization |
|
|
30,000 |
|
|
|
30,000 |
|
Stock-based compensation |
|
|
14,000 |
|
|
|
14,000 |
|
Other expense, net and income tax expense |
|
|
9,000 |
|
|
|
9,000 |
|
Adjusted EBITDA |
|
$ |
60,000 |
|
|
$ |
55,000 |
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