ASPN - Earnings call transcript Q1 2022

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Operator

Good morning. Thank you for attending the Aspen Aerogels Incorporated Q1 2022 Earnings Call. All lines will be muted during the presentation portion of the call, with an opportunity for questions and answers at the end. I would now like to turn the conference over to your host, Laura Guerrant, Aspen’s Vice President, Investor Relations and Corporate Communications. Thank you.

Ms. proceed, may You Guerrant.

Laura Guerrant

Young, as a management’s the Good financial developments, Aspen www.aerogel.com. thank first items well Accepted measures, of Keith the housekeeping call announcing as and Don. press US Aerogels call. operating March are results Investors Emily. I’d for applicable quarter Officer, over press Chief Ricardo us on of a sheet, quarter for and XX, for of Included a Accounting Technology to statement conference XXXX. Don balance of Aspen’s are first website, is today operations, address use us the section compared available statistics release financial or fiscal Aspen’s a summary With and morning, you, GAAP CEO; you Rodriguez, reconciliation and is Senior and measures Generally to joining in financial summary President key Schilling, Principles, Financial like ended Thank year and the business summary the financial XXXX President, non-GAAP to Vice most There few that the of turning results of before a The XXXX release

website deck that highlight have In like addition, today. I’d to that our uploaded a to conversation we accompany our slide will

Please webcast find are fact. outlook, statement statements our You subject that is uncertainties. prospects, plans, today’s other our business statement forward-looking that at risks be will our forward-looking targets, and include statements, historical one and a including expectations, note beliefs, to of the will the regarding estimates, projections, any not archive on year. deck for website. can Investors section discussion An of site today approximately any These

with release and issued could of SEC, and may files of differ press the also in most from on with found affect website. yesterday, of the discussed reports Aspen the release company’s company’s that SEC, Report particularly the factors section these in XX-K. recent Page be forward-looking the on yesterday, Aspen are Aerogels’ the in the Annual filings expressed results Investors Aspen’s Aspen’s press detail more actual Form presentation, statements. issued company’s in be in found X can A The list can actual those results materially

Forward-looking company’s statements made today as represent today, XX, XXXX. views of the April

Aerogels Aspen any obligation forward-looking circumstances. statements future or disclaims to reflect these update events to

with and a most in GAAP. we refer including will During non-GAAP of not measures release. adjusted are non-GAAP one measures accordance measures, definitions financial are financial are with The financial or as measures non-GAAP considered discussion call, reconciliations measures, substitute measures, note. isolation to prepared GAAP financial intended this final for comparable accordance results EBITDA. in financial GAAP. to not a yesterday’s present prepared These these and These non-GAAP the in And financial we of included in why these press directly to be

Q&A the interest we the questions in at two time. you session, limit ask your During to that questions a of time,

now turn into will queue, I’ll call to to you two, the If questions beyond get initial additional the all the Don? and please over Don. we get back questions. have

Don Young

Aspen will Thank a with will you Battery things kick business business developments. progress for Keith report Good recent I call. our Laura. Ricardo for and cover you, earnings work Thank will Materials. us results everyone. XXXX QX off and outlook, morning, on our joining discuss at

encouraged Starting we I'm goals. will our Slide the on Q&A achieving highly making by are X, session. a We with conclude progress towards

of outstanding level Our at operating a deep the These are teams recruit to strengthened people performance. as teams being with continue are throughout we high talented company experience.

recovery the XXXX. existing EV in quarter reflecting XX% our the of in XX% penetration to strong industrial an year-over-year and continued solid start with a revenue sequentially, momentum, that $XXX we our we XXXX a of course was Aspen On or confident strong position are With and advancing are million this meet off XXXX, shortly. commercial million in in a and the energy in revenue I'll exceed believe will guidance to is million. up meet Total we that first to revenue GM market, about Toyota, market. heels our XXXX. we that talk and $XXX awarded target And programs more of $XXX

honored battery won depth GM's we technical part of XXth platform. the the thermal Overdrive collaboration were During receive GM's as We for of indicative of The excellence, role is recognition Year in which launch The and commercial propagation between Aspen Annual the of GM. for its recognized the the quarter, Ultium Supplier award award to our ceremony. strategy and

and We unwavering performance safety and its commitment part equally in of GM's fast-paced are electrification. see transition excited platform, battery excited to to battery Ultium GM's be to are to

revenue gross for triple of and Turning The to million X, our further to strong annual our one driving talk is what XXXX, long-range outlook approximately Slide stage about from to XXXX, exceeded to growth Thermal of to production maintenance targets through our billion from Barriers, that faster plan. $X.X into quarters, for full revenues estimated annual PyroThin program $X an PyroThin from XXXX in XXXX as in long-range GM two, Thermal stage estimate following the Thermal that be $XXX and conviction. fulfilled let's Like Toyota, programs be our to level our year to volume pricing. We by and initially million at double assess the consider strong Thermal business taking to at targets coming tier define our and projects. energy supported This energy been other we approximately growth billion, anticipated. term strong in and awarded to one revenue and the outlook was the momentum we account parts our LNG negotiated demand activity plan is of PyroThin levels alone, approximately one for Barrier Barrier beginning from fulfilled industrial and XXX% XX% pandemic, QX forecast business awarded We than XXXX whom XXXX. Barrier revenue we high programs delivering revenue the prices, currently us have awarded of The XXXX to is revenue fueled the represents in in by two $X be pent-up XXXX, had the suppliers, we is programs XXXX. additional target, stage of for target. customers,

to our convert unique with addition Barrier we In working programs with Toyota, are to Thermal are awarded striving automotive GM OEMs, quotes our products. work with and into and other additional closely

manufacturing that to only margin and of to but we a tripling in short the ourselves power those approaching investments one, the electrification, advanced engineering celebrated throughout optimized people, stage the components long brief cash the to also silicon XX%, Bulloch delivered like the and doubling such similar stage and processes, that our advanced two. in and time to scale, are valued These two. with EBITDA positioning margins us producers. With the other in carbide burden that XX%. making of we critical components. technology term, in second positive growing ceremony then Aerogel in level we starting XXXX, investments plant voltage are flow items of list to the connectors, During to believe County, on monetization capacity, at investments but revenue $XXX up facility targeted our for also the not be a to approaching a XXst, proprietary EV groundbreaking On transition Georgia, are positioned purchased QX enabled supplier enable high gross for provide and and of million, automotive Statesboro, I'd upfront we XXXX. as electronics, lead update automation, structurally industry March These margins they so levels of set functions to margins we deliver are revenue,

two XXXX. phase for projected a completion on is of late plant timeline first The in

to phase plant two approximately first total and The annual bring million revenue revenue targets $XXX $XXX of million. will our of annual capacity, capacity

capacity we of both level, capacity EBITDA. have the we project annual approximately this $XXX two, second expect approximately $XXX million profit, we of of plant phase targeted utilization and approach $X.X plants, our full $XXX to will be year. and capability Upon revenue million approximately EBITDA across overall billion of the As the gross per to of generate million completion at

industry to vehicles, the make is and $X.X our electric transition size potential auto of invest the With to to speed ramp five the track years next trillion in increasing on rapidly.

In addition in invest businesses, to leverage we and Technology Platform industrial continue to with strategy Aerogel our high-value other sustainability themes. the markets, to our EV energy into

on these We will ABMs. investments call this create line our Schilling our Platform, validate significant people, over expect next believe to the initiative our carbon have Keith is Aerogel continue an Materials, within to turn like laser-focused of and Technology extremely more commercialized talented Aspen Battery comment fully to to to We richness the part in we products. business, of and I on would Keith? group aerogel value. of

Keith Schilling

Thanks, Don.

Electric that performance. when electrolyte is as ability for the opportunity or more each multiple swelling the in density, is relies X, more in as performance of Turning the Current resulting accepted and anode the swells the it energy plentiful, through the to a absorbs in graphite. form a cracking seen electrolyte first, opportunity. ion, incorporating XXX%, batteries swelling, also of the or interface of facing to anode. today silicone images, be terms charge expensive, separator, with cathode. solutions for widely here, result vehicles images describe pouches and The a the carbon solid a Silicone roughly sync to the anode, anode Slide focus it's times forms We'll one shown attempt this of of the reacts lithium this from consist performance solution positive challenges right silicon's to through negative decreased - to better XX graphite on let challenge This less battery and compared in key of alternative destroys with ion aerogel by types cost. through to lithium eventually graphite. and metrics batteries difficult formation, material. carry industry. as shown with me permeable choice the are additional flow ion cylinders, boosting cycles, through wound as for shown is stacked as lithium than The the It discharge that well that since on of to silicone of is, nearly discussion, a would that the use holds lithium range, in on a the as silicone X% compared

is can explored, in market, use ellipse. represented As available potential other right is being alternatives colored the white the and in what have as are but of see, you not commercialized, the in top represented as by that a ellipses chart. commercially are the There

solution. right in representing by very ambition the bottom of test solution for captured the and graphic, backed our early is our encouraging Our results and

a It's we're silicone leveraging and in mechanical, technology aerogel? nano carbon a of electrical, is amounts enable unique platform properties exact combination what the of So, morphology anode. the to inimitable where higher

achieve performance for while does to performance synthetic energy low necessary targets higher we technologies What the is making are to battery Turning Other to approaches that and widely team accepted believe inside automotive track be and improvements right X, term that performance energy our using and have We OEMs, exhibiting silicon on that of cost. in do is nearest win demonstrated how meaningful meet to earn to life why remains is has the density, known a EVs. scalable. the Battery Materials at this Slide Aspen solution incorporating improvements and battery? cycle of matter, the path It's the silicon amounts density. ability in

energy ability Aspen’s connectivity solve challenges contained its carbon silicon’s of interaction very silicon’s on to pouch than carbon aerogel allowed our by improvement within to full and maintain hard with leveraging cycling, in cells. the its the has XX% cells intimate during to density that been silicone knowhow tested translate importance aerogel power in The a to pouch multi-end the in team begin to it. when working single-layer testing synthesis, would us has materials more

over performing are well will On the cell as our near work targets, continue the level right currently articulate validation as key we we term. how graphic, in of milestones we the to

have need next-generation vehicles, of already kilogram per deliver densities cost materials, maintaining the of while anode will dollar targets on carbon demonstrated automotive silicon Aspen that energy the electric OEMs. critical

battery an in EV silicon and energy graphite our We competitive to $X,XXX The the XX the for XX kilograms providing but beginning tunable progressing approximately And to of full carbon offerings, average Aspen. composition. EVs, contains or opportunity in additive drop densities see to as roadmap a existing competitive materials such, per as an battery for manufacturing at graphite, of Our anode. content can to this of vehicle of materials approximately represents the cost. processes exceed performance meet

variability, these already have targets we testing as We in continue scale. cell will achieved we metrics validating and for our

what amounts expect accommodate in increasing months, have process roadmap either industry. truly cost the both tunable synthesis over solutions approach, So, as the of commercially? can out hit the of or a silicon with for anode, to chemical silicon the can expensive Our and too and development silicon only anode approaches there our meet is to technically carbon it XX The what's much the offers in performance unique aerogel existing platform we next unique, we and the content where phase. wall, being and increased a very research EV our

to rapidly aerogel the and months, the we leveraging completing over platform, battery silicon automotive begin of with OEMs, anticipate XX Aspen, next relationships these phase commercializing carbon For development materials. our anode our and

and confidence basis, and move into materials production. can relationships automotive we these cost competitive gives ability, manufacturing that OEMs, with us battery quickly Our

one Aerogel and Our excited already are future. over couldn't we our with I'll Ricardo. are aligned turn Technology more with that be among Ricardo? anode I to advancements the our Platform, call many about now targeting materials strategy, our

Ricardo Rodriguez

you, providing Don. summary stage our year, the by XXXX a current thinking outlook start Thank short recap everyone. of of go financial into business I a funding our plan, on QX then will our the turning our to results, before morning, Good for detail call back and one Keith. of

to we clear and the for to been at that several by investing our quarterly revenue level, our of for all XX% Turning show results our a quarters, year-over-year highlights Slide high capture with X have drivers principal growth driven quarter, the markets. financial growth a continuation

Thermal As with Barrier expectations the quarter’s To the than combined mentioned, materializing Barrier various Thermal thanks higher anticipated initial Don opportunity this, faster launches, to our is volumes. successful expected, than for for illustrate of plan. the vehicle of million revenues were million increase We the delivered our original quarter Thermal December XXXX. XX% revenue over we Barrier budgeted as of a in year $X.X during first $X.X XXXX, internal

million Our revenues quarter energy from alternate $XX.X the $XX.X need in same QX this to last were capacity while of in value XX% increase up enabling the chains. year-over-year industrial to reflecting million year, industry's year,

quarters the the top we’ve is Our mind on half what for enough our is service demand continue the fulfill and increase, It equipment seen managing growth before to energy the needed, Barrier and partners, hand to market, aligned of industrial way. of people, the value our necessary we a growth highlighting are that these distribution expectations also year. in anticipate, systems, programs in the with first Ensuring finish worth in are the we least that to we inventory awarded required that for sales chain. capacity books as now, world-class and and given broader five are Thermal have order our sustain near-term the the of the channels make at our at from investments levels of

we as and of can of reach developing and have of conversion level We run rates. structural enabled makes multiple opportunity, adding pricing, our our to engineering estimates by engineering a worthwhile drive leverage these our manage material, changes Further with investments which costs, that revenue and ability commensurate for additional in operating are requirements are see significant target path resources potential the to investment. a scale upfront favorably profitability, the convergence confident clear our OEMs,

by the XXXX we as and we higher enough target of of triple become by and I expenses, our most cost these the operation end much revenues that to rate Before are overhead we XXXX, to turning cannot carrying revenue XXXX. will of stress double run the then that

discipline manufacturing the team a one, the annual instilling operation we $XX which a and tier Thermal the quality manage at When Island, with on. team sophisticated in million automotive billion-dollar the see or rate materials in at service Rhode driving OEMs of Mexico, on the our operation, size near I to to suboptimal our sit of room ourselves that depend in is rate world's a largest delivery costs the habits used one Barrier roughly levels also Barrier scale We're facility run world-class run a in the a the material specialty is and a reflect of Monterey, business in around term. of required I realize fabrication automotive Our or company. launch look facility a tier can that Thermal

As are such Don efforts electrification they customers as accelerate mentioned, these being valued highly GM, by as their goals.

run net operational, or as core while currently Two, as to on. rate operation portfolio. our objectives conversion to shared and IP expenses $X.XX by opportunity or fixed running same to supporting and expenses Thermal scaled XX% Adjusted of the accelerating targeted on was costs. a in infrastructure, general our next million Battery goals increased million year. Thermal we million the finance, while captured during will increase step per and the key our an get business. level that share of quarter-over-quarter, Barrier $X.X Our to aerogel continue relatively EBITDA our and million pieces. establishing that includes or conversion are last $XX.X negative operation. quarter. are resources growth increased $X.X Accordingly, a year-over-year manage the of in expenses, and to and commercial which $X.X multi-site required to or and curve of the $X.X absorb the supporting IT, run four, business. our costs $X.X material the our by enhance our negative our One, a reflect capabilities These million, per just Material Barrier QX, costs loss And profitability expand to XXXX multiple our XX% increased needs management revenue increase QX our teams spending our million automated the share, that compared delivering in small development development defend Three, the that we're research size of investments of enable have revenue XXXX. Keith to million to rates which the in loss currently quarter or $X.XX personnel Materials versus higher the function, as technical, Operating beyond, much $XX.X launches, efforts, and net customers the and of legal core team by

loss amortization, indicative or our are believe depreciation, compensation, define net As operating included we taxes, $X.X items million compensation interest, performance. a do million and of adjusted that other expenses, these stock-based reminder, we not of In income as EBITDA items before core other expense. and QX, interest stock-based of $X.X

We revolving credit the million $XXX.X million equity Next, offering from and from volume million $XX.XX balance sheet and of in million gross higher engineering operations and quarter other aerogel Strategic price for used per $XX.XX and expenditures of manufacturing net activities of by million, facility, quarter during of Capital operations, of the proceeds shareholders’ in under EXXX.X and million equipment $XXX at I'll purchase from included issues share. included were our disbursements. ATM efforts. transactions for a an our Barrier our to adjusted per Koch proceeds facility, million, $XX.X average of Cash all $XX.X lab turn our cash share, and in R&D million a Thermal million of carbon battery BASF, aerogel $XXX.X our of financing $XX financing-related working with common ended borrowings designs million, upgrades cash, additional note their our assembly reflected $X.X EBITDA to These convertible and $XX.X $XX.X capital. $X.X to at flow. by negative million, for of a provided our material second repayment million. no of offset Platforms, investment Cash $X.X stock

update the an outlook I'll of Now, our for provide year. the into rest

our We is a million continuation global to a revenue with Barrier the of This growth recovery supported than expect energy our continued $XX year. further for Thermal in plan cover market. PyroThin tripling industrial by higher in associated XXXX the post-COVID for the of revenue

million revenue key The compared delivered growth annual we de-risk result, for or XX% strategic million about feel strongly that of of when and exceed our materials to year, is of encouraging. between our to of revenue a to XX% able between fulfillment XXXX. meet outlook equivalent As $XXX we with year-over-year to the QX, this the XX% growth and being year's plans, purchasing in coupled $XXX

increasing to that over is stage plan, outlined cautiously work, and milestones environment CapEx. a to ABM Don ready remain our our investments near-term the optimistic be capacity deliver put fulfill chain not that being key our the and Having this that in and to completed the this main this be the efforts, to on outlined growth inputs of team cost to proactively validate we of in variances. one The equip exclusive capital in battery Keith R&D remarks his will for are monitoring delivery material our to supply to prioritized volatile Aspen, However, in Effectively, of of be driver ready material required long-range year's year. capacity the is our development half them will first processes.

would to our funding our I plan. current like thinking on Finally, business detail

work Don’s assets intent we're Aspen, our at to position like cash will stage the of capital completing growing our increase continue for A funds opportunistically, remarks, of growth plan, sources that requiring of are part earlier additional funding. long-range These company aggressively capacity. without available that us of end the efficiently more to next with range specifically plan, stage enable one, unique of and something customers, equity support KSP, suits strategic to in cash the during large it the fulfill. the as awarded focus funding that from much to range Echoing equity. such and profile, investing to have partners that one flow the significant a can of partnership debt These the to with is our of relevant sustainability, business that enables one sale generate the our investments raising five long-range of through we you the duration expect quarters. way our stage us needed during period early As longer of year, on

plan growth long-range We levers one the to stage of a well-laid as revenues perpetuity, now in efficiently our are immediately ensure or pull call out to have funded With work balance of deliver sheet confident continues we're our capital fully in stage ability our plan. turn several we investments to to is our to targets. plan growth that supporting in near-term, part of I'm put and to into turn calling what XXXX, to capacity Don. further our back two the that With is that, happy the target our long-range

Don Young

Thank Ricardo. you,

to I and is of celebrate to Turning formal environmental, reorganizing also Slide work during business the people a which highlighting ESG strategy, our process It and our the X, as sustainability-related in It and environmental strategy. would of our thrive. goal of ESG us to by programs policies natural have earnings diverse culture Technology and new performance of inclusive for integral is and We Platform, governance continue before started for processes. and fit create we of at products like uses with and environment into quarterly Q&A, respect our to the our core part move Aerogel explore calls. a to social, our customers’ safety our practice a and employees, the of to improving the striving value an criteria

ESG will sustainability We priorities. ESG will report be publishing initiatives key our outline and which shortly, first

Emily to everyone to will the back for turn to accurate Our to goal topics information. call other discussions to with I enable timely investors have for now and the ESG foundation stakeholders and access on provide is deeper Q&A session. and specific a

Operator

[Operator Instructions] with Thank Our first from you Eric, your Craig-Hallum. Stine Eric today very question comes proceed question. please much. from

Eric Stine

Good morning, everyone. the for Thanks all details.

lion’s whether terms could talk just content, easy other number? up there, in have into you it by of revenue, just make in revenue dividing of as number do average or as GM how Toyota development about customers that's your other things or of on lines obviously, number? you then that milestones mean, So, is units, PyroThin million that if went but of I share that that, and the curious $X.X many And in

Ricardo Rodriguez

Yes, Eric.

an I number think in quarter, the mean, sense CP trying shipped. prior into that sort units make of to, assume by number bulk it's if that Toyota. dividing it's GM and revenue that been commercial we we've - from we the of there, the CPD came - to customers progress. customers, the weighted indicative I fair Frankly, the outlined out you're don't back the average of measure of really both we the to really Breaking parts would the selling on that the additional of prototype think

prototyping XX In an disclosed intensified XX to parts And have other to we commercial shipping think of true we fact, don't customers. four, with last or our indication as of activities the customers, year, pipeline. progress depth it's the the whether we're and

like to we’d that. So, leave it at

Don Young

producing in comment. just our just the would the Ricardo's level I today. been electric intensity activity regions Eric, Yes, team three of of part emphasize greater add important The all vehicles and from Thermal Barrier has never has

Eric Stine

whether seeing question, where mean, like of Well, revenue - part you're programs you of launches. sounds it. whether or I a forward. about a Are the talk I I mean, it would or I or launch those from of it's I was moving of crystallize, clearly it platform XX, that to my quantity assume being and your was not I some then others. for I maybe seeing when not Got going necessarily XX - terms and but those those mean, second guess those lies, step-up perspective, confidence plans in level,

seeing progress just but and the the level, from you're again, about right just the unit if and could thoughts progress forward, this perspective, I early So, made into that not you've within then mean, wouldn't more why can, given pipeline what you go industry a high be that now? you standard going

Ricardo Rodriguez

scales in of almost you're the all programs stage, they're And to of we're GM that an at starting is where or then Yes. engaged in that being positioned scratch the technical I the that battery do assessment available vehicle an different multiple work, where immediately your terms area from and technology. of customers nameplates. you is with right, to with like mean, way the all-new managing the I mercy accept somebody this is, at OEM the not think every prototyping those platform

that mixed customers of the or in an balancing battery evolution those seems of be surface, but of all-new combined what platform, to, a are portfolio the battery. Some commercial engaged to funnel, nameplates we've prototype the with are parts has sent really on an old just with it's prior battery platforms, that

in so, itself And and adopted prior are the as GetGo, batteries, on where aggressively difficult really wherewithal from standard today. have scratch invest in, adapt you're position it's this isn't why as as to question unless really because starting they GM they're from it's a finds the your to that to the fortunate

for us, And GM our to to approach what it's team really, something to supports, and choose battery with is Altium. to that taken we scale pick resources these also that with the platform So, have really the have prototype OEMs honest. doing akin and have who a be to

And so, really we're each least find is the you focused. region where and that's approach, in one of customer can at that world that taking

Don Young

mitigate a would are stronger, strategy you too, little for feeling our a EV is it that has going to inevitable go these been I have just higher think think Eric, management if and I to producers thermal I runaway. add, thermal never that

a becoming clear that is there, were but crystal I increasingly them that get want to maybe little them. all becoming some And clear. for think of of slow is think I to

positive Ricardo's, say, reiterate PyroThin which for of reach assumes to from awarded And we and EV That a and view, energy necessary tripling. in again, script XXXX revenue, feel as our to hit industrial our think, - target. to the I in revenue The we - necessary programs well, of XXXX doubling XX% Thermal XX% the in my second point very to we thing have we have was, revenue what of Barrier business growth that about. I feel also would

And these that through in so, think the Ricardo we’re about filling if tell, OEMs, you when the last as design of that chunks, plan, and long-range programs he one in have at can other in, referenced filling you a big And additional win. this from come you referenced, we're this stage that programs pretty least XX%.

the in multiple we target. remaining our XX% just of have me let fill so, And to say, XXXX opportunities

we're General ultimately sort a back and competed we if an So, XX, had parts, how in you come up prototype then common. and out that volumes about timeframe. have how right And think then that it our production of timeframe, one early plant that meaningful sort in was how look likely if two. that that and we're just the as XX-month of phase it's the the wins other of sort played and of OEMs is with process now, for us in of provided of several RFQs, XXXX perfect and to on we you lot And on Motors, which engaged bringing sort we XXXX, parts, sense timeframe in timeframe, in in

and So, good - questions, detail some there's some you. for

Eric Stine

it. Yep. Thanks appreciate I lot. a

Operator

Sandler. of line from question Potter The next comes from Alex the Piper

Your line is open, Alex.

Alex Potter

Perfect. Thank you.

by Or of plan I helpful. of own is surprised and they stock to, to customers sort inventory your you So, ahead the to their you on product PyroThin if little Any of a demand you would particular being production? load tracking wondering this deeper that that. their reflects be the of their revenue obviously, encouraging Was think launch why sort de-risk insight amount in see dig revenue could know, sort to think front-end higher-than-expected the don't are for production Do into in advance that up of ability trying curve? of quarter. into

Ricardo Rodriguez

launched months mean, of it Thanks, actually in it. for to several Yes. GM LYRIQ, LYRIQ, this one I I these particular, ahead - be really was seems to launch when as see launches planning Alex. even think instance, just we

all good a themselves. as their and demand hand having When the for course, sell. it to vehicles material units make think GM of And of EV the I we've vehicles, that goals. electrification to try comes that's right to And new launches car meet prioritizing so, seen now inventory for on they their then, example is really hurting the the market to just

customers the here the this real as that demand as And see in we'll over next year, as quarters, so, And for of additional comes seeing we're of truly we now much with right right. our revenue. sudden how a work acceleration

Don Young

Yes.

to both these million we outlook the that also I feel what momentum the us confidence exceed the outlook. Alex, $XXX make to use or we're phrase and statement activities, of revenue think positioned cited, and that I the $XXX to our and meet Ricardo give you million that -

right? exceed we're that noteworthy, technologies case to is good they able might we meet be prepared around that the a in normally, faster. with faster, we not revenue definitely question, to feel we come fact coming your to it's exceeding, so, And playing to are outlook, been if aggressive I bit the where or where slower, year. exact answer momentum. And hard I for very mean, working come the but it's have fulfill potentially knew little outlook in think think more I to and the we these and that and meeting about just the be our always given new

Alex Potter

who and relative and are which potential high that battery say scale or platform? make the strategies, maybe an that super customers asked Okay, you customers. the and something to of - achieve previously. somebody have cells. pros about are of other perfect. of that battery up company-specific ocean talking list Ultium, or of the if helpful. are, tier would That's How specialists Thanks. like there, some brand-specific priority that Then there's different is like others aligning what to “commoditized” they and battery Would different obviously handful like Obviously, but one we're one say there's you of following a question, were also more out with cons this trying on customers on all OEMs

Ricardo Rodriguez

integrate look from we to Yes. - trend that rely OEMs on, when just the with we a I can at you volumes that towards nameplates and don't ones mean, can pack deliver else. the franchise someone actually see you a wanting steady the

actually, replacing not internal system heavily combustion a the and And battery the that of of their the broader platform within system so, lot instead, battery it's it just of leaning all overall battery a with a developing that the into but and they're into as development is sales, itself the details development car. engine is the

in - customers go align really, cell, is the your more aggressively team to depth or into that system the the in the for us this the level approach is the for more engaged issue, it's way. and customers we really resourced a so, make this cell the system folks we're are with the that to engage is be the car with. perspective, just sense to products, with, it that one and or with right? hard at level And the of scope really on of think to us that to as look OEMs the come much at our when sense broader we're to to engaged when that are makes And with that technical is when folks who So, happier of cell from doesn't really battery some limited as able not the engaged

Don Young

more issue. they're little evident automotive the strategy turns this that their think issue. battery It's you’ve they how owning of the platform, all us Yes. as just owning but twists their OEMs about Alex, they And platform. to are this And cited, broadly, on and have battery

Ricardo Rodriguez

capital. look right? the at really this it's So, at look the bit of is even interesting, other OEMs to experts, them we The and are access lot the of when And the just that access to at point. we a piece where seem have a battery quite folks OEMs at are to capital,

Alex Potter

guys. Fascinating. Thanks very much,

Operator

Our next comes ahead. Jed Genuity. from from go question Canaccord Dorsheimer Jed, please

Jed Dorsheimer

in excellent progression guys. congratulations, here, Hey, the job and

gauge (clues) you of the that of I'm guess weather, be at of that so a progression you, we in and should some questions, Georgia, or but first, two can for timelines facility? just ramp of the under looking to outline on if terms Just how little that I apologize the that

Don Young

Yes.

our doubling we revenue we've fabrication is capability, and our assets, with existing million, targeted and et $XXX we've $XXX as build targeted cetera, at revenue our million. our - So, capacity XXXX out - be about that would we feel

we're So, our as right work we way it go deep XXXX. against into up

that So, late early it we XXXX. XXXX, and the focused plant on have laser contribute are of bringing part in out in

highly team project. frankly, a up, team And as as excellent other Koch at building friends strategic strong heck from Bulloch well, as resources down capital and And every so, Georgia, are experienced folks I've a team, a there. said as only who to frankly, cooperative cast before, a Aspen leadership, is group who Statesboro, a not made projects move we've of supporting scale well, facility, facilitating our are very and outstanding And this that County, of at our that well. built an of but of execute

up feel we've and going facility XXXX. to what on said of a team strong part we're to to we late we've bring and in we got So, we're that is the track that do do, - later really

Jed Dorsheimer

and seeing. published on based guess, on becoming silicon on point. Great. but pointed versus now it just terms technical, you're progress a anode, shift the can at up, And doing like then I'm one any details you battery peer-reviewed I this the it seems this? follow you out data growth just the for more the my that what bit have you're the more over composite here, technical wondering, on That's Or directionally, you as states maybe Because charge. open you're read of it in literature terms solution around within seems in some comment of (dendritic) a like that? a

about curious I'm that. So,

Don Young

this commitment of I let that. course on - comment I'll today question. technical and is as our And the hope - to - I think on more more of of a We aspect be - on XXXX. was good Keith Ricardo open more the Yes. the over example

Keith Schilling

published Sure. Thanks, yet. something we Don. haven't

those Our challenge through, share this can of relative is to we'll working And as to at of continue our to with terms opportunities continue as you We're position. be technical those kind place them list Don intellectual in details is continue are in continue can the the as to mentioned, imagine, to industry. long forthcoming then, intention, we'll solve forthcoming future technical to an we of the of be details. to through our where that opportunity in capital more a how work validation obviously, And a obviously, solution. more

So, we'll I information and evolve. continue forward question appreciate the as to look there to more we

Jed Dorsheimer

Thank you.

Operator

go EF question please comes Hutton. ahead. next Moore Our from Chip from Chip,

Chip Moore

other the and of the development update on up thanks. good just it, comments Materials. over to there Great given progress, and Battery Morning. next, see on your Hey, call to commercialization the Want some can follow expand efforts efforts. Anything licensing potential know talked XX there. how about months or on you past, investments. upcoming should you can I think so. the Maybe we offer you've in about

Don Young

Keith, to grab you want that?

Keith Schilling

Yes.

So, in all more space, human part Right of investments capital and in our importantly, some lab of thanks, we've now, Chip. the business. made probably that

As Ricardo space that and prepared the completed. expanded expecting comments, mentioned be facility in we're to

this highlighted the half efforts but daunting, really progress towards We've first of as We’re in good those some and space challenges, we've I we laser-focused that made continue where progress. year. we to continue where targeting meet technical they're but good of for our really really so the needs seeing are investments results included it's And we're think know, need far here. that to solving invest because that some we've the really and our been on you accelerate believe we'll validation necessary today to targets, program. the quite And have necessary appropriate, we (indiscernible). and as

Ricardo Rodriguez

definitely the eagerness commitments match folks us other as capital obviously on opportunity think viability. there in is to at own. our of And commercial here, may want from laid this, substantial to mean, Chip, cooperate add to licensing achievement I will and out, we the point technical your I that with if the with but the milestones going enable versus our I - Keith just this on the on

if and quickly there. ahead bridge is committing licensing cross actually outside we're commercial that this in and help it, some efficiently here as when we'll we get and so customers, really fund business then us to or ideally viability but trying funding that of this to so, at And And the more model that does scale be the possible. and then our parties is not effectively, making proven, processes with material as of skis get the until

Chip Moore

Yes, absolutely. Thanks. tuned. We'll stay

Operator

is your from line from Our next question comes Chris Riley. B. open. Chris, Souther

Chris Souther

be sense And should question, wanted some gross on get costs, just taking ramp-up the baked business helpful. sampling business. love just side. for how you cadence and margin a thermal in I'd my the throughout to would breakdown is color fixed I Thermal provide the we think and margin year? Yes. infrastructure if guys. Barrier that for on the how get Hey, the to thanks component a energy investment about I could of, the versus think

Ricardo Rodriguez

when that's the about good feel and your we in there, Chris, at don't point, our Barrier costs have you're Thermal right. question. conversion the mean, good and a scale, this I No, side, to right? a for sales obviously quoting let of you keep I certain get really something range, XX% then us, we want in costs mentioned that really above So, as material look we remarks, Yes. structural to that how the of mean, we costs XX

right us margin much almost that $XXX gross running operation, you but million a the really rate For overhead, a fixed run could you're and have expenses operate negative operation, a the now, mean, a at I when there. of of $XX-million pretty - run quite bit amount

really two we're in be team allocations kicking when an we facility But in we'll along the and the a five that can our that are for industrial sense, so, getting with low But automated negative mentioned bringing expect that running, show the going revenue the side our working term, we higher the the gross overhead We now of in the while in rate. just quarters revenue have slightly processes manual business double-digits in yet. you're Barrier up margins, from the facilities to facility in And the to energy Mexico through that's just worsening without the higher Q. next to run for ramped breakdown with we and see as we near designed, remarks, much as then quarter, have has Thermal in the potentially right? that volume managing stays have

Chris Souther

of run kind Okay, well LYRIQ overall rate wait kind all pre-shipments with of been like revenue might of but taking are it just PyroThin that with And obviously, clarify, wanted makes I got sense. it. here, you about talked on the et and have seems approach there No, volumes launch, see bit the above previously a cetera. you’ve through, a coming guys the to

to should or what visibility, business PyroThin we to get the the for similar some wanted of quarter we saw, a a of as sense kind Just next customers the run rate digest shipments over had? kind - what expect you impressive moderation

Ricardo Rodriguez

current few are or at again, looking, ours an is I of vehicles Yes. actually even but a quite of think we there's assembled. getting or the outside rate here run mean, actors control, things where indication Toyota’s, GM’s the

deliver. up not run us of $XX million ourselves for are XX I remarks, operating So, or for main on in annual anyways, our rate thing that instead - are the it's the to rate, decisions. my rate a because even now, the to$ is run of $XX So, million XX, change based driving interesting decisions don't higher to right? XXX the engagement levels million service thing $XXX have And we the be million we much why that's the Right of ready quality run gearing our the whether rate run that's that's our mentioned truly that really team.

intensity, Our at team XX, whether running supply the it's or the operation at XX has same chain or whether XXX XXX. running is or

Don Young

is from more point the XXXX on fabricating going to ramp environment, that's And time, million, manufacturability automation, pre-investments. of about obvious to want cetera. ’XX it, these just the $XXX - at Not a better we’re labor et to That's a those volumes, to to two at to lower making doubling to design, move a business. why statement, more we're we fine serious why higher too of to same facilities we next say ‘XX We're XXXX put cost year revenue have because to XXXX this to but to XXX. - of of make so, when talking

sometimes on, we're what next quarter. just and in of quarter, we’re intensely getting confident let activities so, that's of frankly, the and and these other we redundant ramp communications and doing process. now OEMs that, we're this that but very But sort say going that me from where of engaged the the the And we're sort facing of here Toyota, Motors quoting right some the and have from General quite we're in

Chris Souther

Understood. guys. Thanks,

Operator

go please Rusch comes ahead. Colin, Oppenheimer. question from Colin next from Our

Colin Rusch

you so support that as you anode of material? electrolyte to with well the the as are your efforts separator around about, volume point testing, of new guys Can the Thanks talk material, and this that at cells technology guys. maturity much,

Don Young

Keith?

Keith Schilling

Yes.

thanks the question, So, for Colin.

this point. in So, at really we're - of terms the anode on focused

projects we're other not others. now, that but in products primarily right or really We pipeline some have materials, cathode - not our separators around discussing necessarily

plug-and-play able the So, and And good I about it’s as that like the technology that I And been share the XX we'll we sharing demonstrate by to platform, team, feels to has next good of wanted it progress. out here and over we've we But additional months. build been continue made really course progress terms be and anode our evolve like details to today. a it, that at. really think at of quantities, quality performance focus right focus is and appropriately and where material, in that's we're pretty handling on more feel working program, And just to scale. really patient a and our through the systematic validation we're the

Colin Rusch

areas Thanks that on are willingness to about margin guys then margins, driving top utilization on Is want around obviously, that structure, breakeven a and levels customers? Okay. input do? to model? you for interest you much. utilization Can market that and control or little at driving so talk you you levels? to are start cost-plus many out something you kind exploring And facility or a current something still start there costs your running your to so. better and getting go costs the that guys to And other Is guys are and how of pricing bit of those guys with to

Ricardo Rodriguez

the pricing mean, energy we're it is the conversation some the I And evaluating which think on mean, our the Yes. some cost-plus folks, inputs. fluid with inputs, I already industrial particularly with side. that's are that I having mirroring worth on a on model, side, of of we

the investments that the increase point just getting right, ones at point our Island. we're side then make your getting the the the facility Going capacity really really focusing we and the on further Rhode are back energy this that material also in as in it's the on - for conversion behind are same side, optimizing cost, right, side so on - infrastructure to

change for some then, scale Toyota. lot extra now, penalized help So, facility we Barrier the energy Island, way overhead production additional energy Right going interesting as every flows managing example, to criticality we for being when with to deliver industrial. to have are Thermal or operation it's the the time making investments side, of we're to we in because over also a products is, the throughput, we're that overly the the of of our really GM have Rhode and the delivering the in that industrials

And the absorbed so, improvement, with rate will on businesses as the side. start to you're that going and gets benefit, the both better run increase, seeing particularly conversion

Colin Rusch

Thanks much, Great. guys. so

Operator

next Partners. Our Comes Research question. Tom, question. from Curran please with with proceed Tom your Seaport

Tom Curran

advanced When in if competition platform-wide many have decide with commercial of them funnel, EV stage shares or PyroThin Don, when another model use platform how look as Honda has adopt expect to development to the for Toyota? most battery proprietary standardization, your or such that incremental Good really OEMs from the the repeatedly to are award were who platforms to And even platforms. is a you race emphasized it done would in between of GM? leading guys. EV EV the arrival customer between prospects at you've morning, have joined future, Toyota real own see branded then of you of three to stage, the launch,

Don Young

comes start of is building view, for their I Ricardo again, this, - it. focus building much are talked who plant used big platform for to be And going I've annual And but are of reason that the we're have me And wins, in in on one, another be that's relationship maybe platforms of the capacity nameplates. and us. revenue that, aged a get. pretty during million able an business. I who two multiple the award nature intensity putting infrastructure models slightly part across point $XXX to sense different two support because it unique, OEMs entities, some the of say of would phase the most think, all we're programs in two, - we're about the let for why having way, that phases, capacity, with I that with more efficient us of is to broad-based all an way developing first of models. the and from should the but say are phase And it's additional commented entity on engaged in that in of are design So, our the their broad-based we chunks a building a

good we big obviously, So, I focused relationship themselves, was them see about. And just what us. those we're of contrary But if in moving, to on models, It platforms the models. more with schedule, on and We're partner that and cetera. with will, deep think been excellent in that a a individual nameplate. discussions in feel will adopting more them, as serve sense to if to broadly for We've makes a way, that's platform for product. best even principally platform, delivering a the a multiple talking not just we’re multiple a nameplates. engaged then And Toyota, that's little significant you et universal we’re And with them sort Toyota. advertisement, with opposed us Toyota, we

rolling So, timeframe. Toyota's them now XXXX, XXXX, vehicles we believe - if at between that are out in you look XXXX and of many

to with participate a we're And in position so, we good think those.

Tom Curran

Got it.

Don Young

expertise this the your nameplates. terms in own other fainthearted. people's the investment technical and and oh, answer other battery and is yes, platform sorry. not on lot Wow, have part question it of of I just for that that, to scale. your a think capital the I piggybacking Tom, think idea other it's takes of - And -

collaborations more these do we do sense that and that. more makes And take place. tons so, see of believe just It we'll of to Yes.

example GM/Honda going out. alternative to announcements which which battery - Your not vehicles timeframe, - even platform. GM we've about I since immediately, some use but last of the spoke, Honda that additional I some if in coming the high-volume coming and seen but have vehicles timeframe, believe it we XXXX are be was in and wrong, but that XXXX out, would slightly high-volume might

Tom Curran

that commercial contemplated ABM, a we material, still commercial if potentially sort think be setting on And Right. that previously plug-and-play target to timeframe carbon this your of of breakthrough? a to seem key to as specked turning of to for the as do milestone And then vintage Should into you at of look anode you've first point? XXXX silicon when it material commercial comes so, to battery. sort getting that track what

Don Young

more about profile in talk that to of Keith, want alluded do you Hey, little to script? the your a XX-month you bit sort

Keith Schilling

Sure.

to things, validation. a go is to just the really little go maybe of forward, first So, backwards one step bit our

We supports that use validations density third-party hour are to XXX that a energy solution XXX-watt ensure at per of we kilogram cycles. XX% can looking

of that's near-term of in towards. next believe terms we're track to months. XX So, targets the we on achieve we're metrics the kind that And working that within

at to the And in is you to really low we validation cells current if refer do that at variability. see in point least then ability obviously, the to comes it can point our cells, that been with So, And OEM-type has chart cell our shown, of levels. the that second first. our back portion variability, I current that had down

state is X%, of which of the art. kind So, really

gives given our can XX% commercially pouch confidence that it some cell we've hour to and we got below our a commercialize that we viable some where be that XX-amp tune want get continue very so, variability And variability, at us can target. to material. and to a place confidence. And using We a

we're exciting this very that we really extremely results So, and We've question. process, showing. to be And learning because what excellent talented we're We service go what ability Aspen. I an to our and open with we're at some terms got of this answers it's as and want and are share proud we market. through pretty our of from early hope meaningful in your on XX-month our way team well roadmap,

Don Young

just Tom would I add, …

Tom Curran

stage mile will next technical? the So, actually be

Don Young

earnings space. goes has, I call, think think and said we think, about third data, through I really comfortable comparative a with handful it this I with sense. little back, data, small relationships I idea. makes that of goal say important that our here. I is year data, think here, we'll deeper Jed's think logical and We're And in meaningful to and extension a question party I that's our last the providing And Keith very apples as data, even the apples companies again bit, of in XXXX to think

Tom Curran

it. Got

a to past and year, made those Understood. XXXX turn once can then validation So, be will you it commercial technical you've hurdles, targets?

Don Young

that's think … I

Tom Curran

taking my questions. Thanks for

Operator

your next comes open. Jeff of Jeff, with is question from line Cowen. Osborne line Our the

Jeff Osborne

morning. Good Great.

last was two the last since made the or the happened new, $X billion lot's the call, in and comment ‘XX. in quick has at $X Is awarded ones. last that you I a Just all beyond Don, three months billion three your then programs, about ‘XX that months? changed through wondering,

Don Young

revenue the - less coming Motors faster, It has changed terms projected slightly, actually. out of time. obviously we're awarded but over is coming while from Toyota. not little volumes us General at the more significantly or same These the and are are And a programs in

think So, the has we is had to faster, it. stayed of roughly a I about thinking think number same, at it's I us bit, think the absolute about way it but good a little coming while

Jeff Osborne

consider or follow-up, stringent? the - And the safety is to adopting the the anything That's does policy to around next are Europe it. might Chinese you're over would investors that there months XX something side the rules helpful. that had is folks? And as sorry, encourage the I or changes potential the Got then approaching you US follow-up OEMs on change policy possibly monitoring just for the policy XX the way just, more monitor potential

Don Young

put that just these think see I States, about, on companies I - execute safety, just management industry impairs for reasons a these - that's to was you some twofold. all entire The reasons, protecting of entire put these management for really I it's And when the across any so and runaway. Asia, these twofold. implement thermal will it baseline think United will the that the use and thermal inevitably we requirements and be companies I is internal is platform these a think these believe battery to strategies, of think question, the I two second brand to battery I And let's do have for will comes we'll it's and we this around did across strategy strategy thermal because mega-trend. is, important, And policy I sort word industry event and mitigate of to there think talk also going a think catastrophic One inevitable, an on that those the - runaway. - reason a here be OEMs Eric's the most second one. having I bit little their automotive second Europe, see think inevitability in one, there I call you're it. there strategies, it the that - their I here thermal

Ricardo Rodriguez

this that focusing it we're in hour many that lot see batteries take and it of of recently, more effort been critical. And actually just a or component-oriented, on right, when system to one to broader milestone, In of becomes system-oriented, to car But industry Yes. you right? a we right? the looks house, goes components. a to safety are next notion performance, back the you see back performance kilowatt ways, $XXX per parked starting whole the approach And specific from this more focus that's of, is and this OEMs on getting are system at versus there's and when level really user steps broader

Don Young

mean dollars, they're I so don't wipe to dollars one billions of Jeff, mean, and think, can to events investment. and going catastrophic - any dollars, - of would brands not - I brand of for we be critical to of know few tens mean, need and to billions those out just to just - fragile investing those I place how take how billions of brand of is I

have so, think is a - this a arms again, there to inevitability I getting there an is and issue, we so do And many for solution one's reasons, around

Jeff Osborne

guys. Makes sense. it. the I thoughts, appreciate for Thanks

Operator

instructions]. [Operator

Amit from Wainwright. question H.C. please Amit, from Our next go ahead. Dayal comes

Amit Dayal

morning, Thank you. Good everyone.

Just a few questions me. for

the If for come side? or business, were Don, from exceed this guidance, from infrastructure would year, to energy that the you EV

Don Young

seeing function of of in exceeded million amount business I in our Ricardo, our that and significant But revenue in the activity in his the demand it's active pent-up coming in absolutely EV to the we said driven for markets, both thoughts of really this Barrier of energy the think into internal LNG spark regions High moment time activity, for that we're the cited Yes, - comments, of of it’s industrial well. three we business coming as out a the acceleration as a activity. geopolitically, in business sure. always it's that principal that of in all well. that we’re but right. is - partly pandemic. energy year, and Thermal $X.X a QX that's major And put place seeing then hard And more imagine prices

So, our right energy business we’re really industrial now. excited about

to that reasons we'll we again, we’re outlook, your very broad-based we’re of would be why beat that increase today, set or but confident the outlook, a so, And comfortable it question saying it. ultimately would on meet answer

Amit Dayal

thank Don. Okay, you,

now Just for Are right already space don't those early? or applications you the the you to outside bandwidth enough of is pursuing it Barrier EV too have mean, more. pursue types product, one I Thermal customers?

Don Young

position, - of with additional focus prototype with more XX%, honest would one awarded all that but say converting puts And for I talking pointed be can about monetizing these, and get very, having everything we've five very all a us. really stage long-range very if of cash in position, four in you. our the making as makes that we Barriers the can the awards, or of plate, our the Thermal a way. we fast this in world got existing that activity, And into And as programs. out, can is XX%, and course on XXXX We're or around our not two in XX% that are accounted XXX%, and work, for self-sustaining of right puts position quoting start strong we swimming now plan. with the quarters, we're cash as target through flow Ricardo of investments we think just very to in solid additional attractive these a And next we are and us today XX%, over one difference today us

Amit Dayal

Understood. for that’s Appreciate it. me. Thank you. it

Operator

for have now we Mr. the I’ll call back are the all turn Those to today. questions

Young for concluding remarks.

Don Young

Emily. appreciate results we you reporting have Aerogels, very second in interest everyone's We quarter July. Thank Be day. much. Aspen our look late you, a and Thank forward XXXX in to good well,

Operator

you for concludes call. Thank joining everyone This our us today.

You may lines. now disconnect your

Aspen Aerogels (ASPN) 28 Apr 222022 Q1 Earnings call transcript