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ADVENT TECHNOLOGIES HOLDINGS, INC. (ADN)·Q2 2024 Earnings Summary

Executive Summary

  • Q2 2024 was a transition quarter with very low revenue and continued cost reductions: revenue of $0.805M, grants income of $0.677M, total gross profit/(loss) of $0.650M, and net loss of $(11.27)M or $(4.28) per share .
  • Sequentially weaker top line (Q2 vs Q1) as the company pivots away from end-product OEM toward MEA technology and licensing; operating expenses were curtailed to $10.0M, down $1.2M YoY due to streamlining .
  • Management reiterated focus on becoming lean and funding operations primarily via customer revenue and R&D grants; highlighted progress with Airbus and U.S. Army programs and ongoing EU grants, while citing cuts at Advent Denmark due to performance challenges .
  • No 8-K 2.02 or Q2 2024 earnings call transcript available; Advent was granted Nasdaq extensions to file delinquent Q1 and Q2 10-Qs until Oct 14, 2024, and disclosed results via a press release on Oct 15, 2024 .
  • Street consensus from S&P Global for Q2 2024 was unavailable; estimates context therefore cannot confirm beat/miss versus consensus and should be treated as missing data (S&P Global consensus unavailable).

What Went Well and What Went Wrong

What Went Well

  • Cost discipline: operating expenses fell to $10.0M, a $1.2M year-over-year decrease, reflecting streamlining of operations .
  • Program execution: Q2 milestones for Airbus were completed successfully; cooperation remains strong, with MEA benchmarking for aviation progressing as planned .
  • U.S. Army contracts progressing: met milestones on the $2.2M and $2.8M 2023 awards, integrating Ion Pair MEA into HB50 to optimize performance and prepare for low-volume manufacturing .
  • Management tone: “We are on the road to becoming a much leaner and focused company with the goal to substantially reduce our cash burn. We aim to soon rely mostly on customer revenue and R&D grants…” — Dr. Vasilis Gregoriou .

What Went Wrong

  • Material revenue decline: Q2 revenue fell to $0.805M vs $3.451M in Q1 2024 and $1.112M in Q2 2023, underscoring demand and portfolio transition challenges .
  • Persistent losses and limited liquidity: net loss of $(11.27)M; unrestricted cash reserves declined to $0.682M at June 30, 2024 (down from $0.774M at March 31, 2024) .
  • Subsidiary performance: Advent Denmark had “poor financial and technology delivery performance,” prompting further cuts; reverse split and board changes reflect continued financial stress and governance actions .

Financial Results

Consolidated P&L and Cash Metrics

Metric (USD Millions unless noted)Q2 2023Q1 2024Q2 2024
Revenue$1.112 $3.451 $0.805
Income from Grants$0.660 $1.437 $0.677
Gross Profit/(Loss)$(0.793) $2.432 $0.650
Net Loss$(21.831) $(9.356) $(11.273)
Basic EPS ($)$(12.26) $(3.62) $(4.28)
Unrestricted Cash (period-end)N/A$0.774 $0.682
  • Operating expenses: $10.0M in Q2 2024 (down $1.2M YoY) .
  • Cash burn trends: Net cash used in operating activities was $(4.81)M for the six months ended June 30, 2024 .

KPIs and Non-GAAP

KPI (USD Millions unless noted)Q2 2023Q1 2024Q2 2024
Operating Loss$(21.287) $(4.305) $(8.633)
Adjusted EBITDA$(10.53) $(3.59) $(8.23)
Adjusted Net Loss$(12.17) $(9.42) $(11.27)
  • Management provided non-GAAP reconciliations for Adjusted EBITDA and Adjusted Net Loss; these exclude items such as impairment charges, warrant liability changes, and one-time costs .

Estimates vs Actuals (S&P Global)

MetricQ2 2024 ConsensusQ2 2024 Actual
Revenue ($USD Millions)Unavailable (S&P Global)$0.805
Primary EPS ($)Unavailable (S&P Global)$(4.28)
  • S&P Global consensus estimates for Q2 2024 were unavailable; results cannot be compared to Street expectations. Values retrieved from S&P Global: unavailable.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Total Costs (incl. COGS)FY 2024N/ATarget below $24M Introduced
Combined Income (Revenue + Grants)FY 2024N/ATarget $13M ($11M revenue + $2M grants) Introduced
Break-evenBy end of 2025N/AAim to reach break-even Introduced
Funding MixOngoingN/AShift to rely mostly on customer revenue and R&D grants vs fundraising Strategic shift
Corporate Actions2024N/A1-for-30 reverse split to regain Nasdaq minimum bid compliance Implemented
  • No explicit quarterly revenue/EPS guidance was provided; the company communicated annual targets and strategic framework for cost reduction and funding .

Earnings Call Themes & Trends

  • Note: No Q2 2024 earnings call transcript found; trends derived from management communications and the Q4 2023 call press materials.
TopicPrevious Mentions (Q4 2023)Previous Mentions (Q1 2024)Current Period (Q2 2024)Trend
MEA Technology AdvancementsIon Pair MEA roughly 2x power density; superior thermal management; broad OEM interest Continued MEA development targeting 2x–3x performance, reducing TCO vs diesel generators Continued progress; aiming to announce strong performance improvements by year-end Positive progression
Airbus Aviation Project$13M strategic partnership; aviation performance targets Project initiated; first milestones completed successfully Q2 milestones completed successfully; strong cooperation On plan
U.S. Army HB50Contracts advancing; goal to scale by 2026 Two contracts ($2.2M, $2.8M) meeting milestones Meeting milestones; integrating Ion Pair MEA; low-volume manufacturing prep On plan
Operational Streamlining70% cost reduction vs prior year; facility closures Consolidation; HQ relocation; reduced OPEX OPEX down YoY by $1.2M; further cuts in Advent Denmark Ongoing
Funding & LiquidityEU grants, private loans discussed Reliance on OEM partnerships and grants Debt agreement up to $3M; reverse split; Nasdaq compliance efforts Stabilization efforts
Segment/Market FocusMarine, stationary, heavy-duty mobility, data centers Stationary and portable power, automotive/marine interest Focus on Livermore/Patras R&D; MEA-centric model; OEM technology transfer Sharpening focus

Management Commentary

  • “We are on the road to becoming a much leaner and focused company with the goal to substantially reduce our cash burn. We aim to soon rely mostly on customer revenue and R&D grants for our operations rather than on fundraising.” — Dr. Vasilis Gregoriou, CEO .
  • “We have continued our work on important projects with Airbus, US Army, Hyundai, and other automotive manufacturers… On the contrary, the Advent Denmark subsidiary has had poor financial and technology delivery performance, leading us to implement more cuts there.” — Dr. Gregoriou .
  • “Our goal is to forge strong partnerships with OEMs, which will provide financial support and accelerate market adoption… These partnerships will actively support our R&D and investment efforts and provide a clear path to commercialization.” — Q1 commentary .

Q&A Highlights

  • No Q2 2024 earnings call transcript was found; Advent disclosed Q2 results via press release and had Nasdaq extensions to file delinquent Q1/Q2 10-Qs .
  • Prior call communications (Q4 2023) emphasized cost reduction, MEA performance gains, and OEM partnership strategy; no new Q&A clarifications were available for Q2 .

Estimates Context

  • S&P Global consensus estimates for Q2 2024 revenue and EPS were unavailable; investors should treat the quarter’s beat/miss versus consensus as indeterminate. Values retrieved from S&P Global: unavailable.
  • Given the reporting delay and disclosure via press release rather than an 8-K 2.02 or timely 10-Q, it is plausible coverage was limited and/or estimates sparse, contributing to consensus unavailability .

Key Takeaways for Investors

  • Liquidity remains tight; unrestricted cash was $0.682M at June 30, 2024, highlighting near-term funding risk despite efforts to secure debt and reduce cash burn .
  • Revenue volatility is likely as Advent pivots from low-margin end products to MEA licensing and OEM-driven programs; expect top-line to be back-end/contract-milestone loaded rather than steady product shipments .
  • Execution on Airbus and U.S. Army programs is a tangible de-risking catalyst; continued milestone delivery could support future technology transfer and low-volume manufacturing agreements .
  • Cost actions are working (OPEX down YoY), but losses remain significant; watch for sequential stabilization in operating loss and improved grants/customer revenue mix .
  • Governance and capital structure actions (reverse split, board changes, debt facility) underscore turnaround urgency; successful filings and eventual break-even by 2025 are key milestones for sentiment .
  • Near-term trading: sensitive to any updates on OEM technology transfer agreements and performance data releases for the Advent MEA; absence of consensus data may amplify reaction to operational updates .
  • Medium-term thesis: if MEA performance/cost targets are met and licensing model scales with OEM partners, the business could transition to a leaner, higher-margin profile; monitor quarterly disclosures for proof points and funding runway .

Appendix: Documents Reviewed

  • Q2 2024 Press Release (Oct 15, 2024) .
  • Q1 2024 Press Release (Oct 15, 2024) .
  • Q4 2023 Press Release (Aug 20, 2024) .
  • Streamlining Operations Update (Jul 11, 2024) .
  • Financing Agreement Press Release (Aug 5, 2024) .
  • Nasdaq Compliance Press Release (Sep 4, 2024) .

Note on availability:

  • No 8-K 2.02 was found for Q2 2024; results were disclosed via press release .
  • No Q2 2024 earnings call transcript was found .
  • S&P Global consensus estimates for Q2 2024 were unavailable; results vs estimates cannot be assessed reliably. Values retrieved from S&P Global: unavailable.