Q4 2024 Microvast Holdings Inc Earnings Call
Thank you for standing by. This is the conference operator.
Speaker Change: Welcome to Microvast's fourth quarter and full year 2024 earnings call. As a reminder, all participants aren't a listen only mode and the conference is being recorded. I would now like to turn the conference over to Microvast investor relations. Please go ahead.
Speaker Change: Thank you, operator, and thank you everyone for joining our update today. With me on today's call, Mr. Yang Wu, founder, chairman and CEO , and Mr. Fariyal Khanbabi, CFO . Mr. Wu will start off with a high level overview of the full year and fourth quarter results before providing some operational and business updates.
Speaker Change: Ms. Kumbabi will then discuss our financials in more detail before handing it back to Mr. Wu to wrap up with our 2025 outlook and closing remarks.
Speaker Change: Ahead of this call, Microvast issued its fourth quarter earnings press release, which can be found on the Investor Relations section of our website IR.microvast.com We have also posted a slide presentation to accompany management's prepared remarks today.
Speaker Change: As a reminder, please note that this call may include four looking statements. These statements are based on current expectations and assumptions and should not be relied upon as representatives of abuse for subsequent dates.
Speaker Change: We also undertake no obligation to revise or publicly release the results of any revision to these four living statements due to new information or future events.
Speaker Change: For more information on material risks and other important factors that could affect our financial results please refer to our filings with the SEC.
Speaker Change: We may also discuss non-GAAP financial measures during this call. These measures should be considered in addition to, and not as a substitute for, or in an isolation from, gap results. These non-GAAP measures have been reconciled to the most comparable gap metrics in the tables included at the end of our press release.
Speaker Change: After the conclusion of this call, a webcast replay will be available on the Investor Relations section of Microvast's website, and now I will turn the call over to Mr. Wu for opening remarks.
Thank you, and thank you everyone for joining today's call.
Mr. Wu: I would like to start by welcoming those new intellectual listeners and investors and give a quick snapshot of who Microvast is as a company. Microvast is a global leader in advanced battery technologies.
Headquartered in Texas, where I funded it in 2006.
Mr. Wu: Designed for a wide range of applications from utility scale storage to data center power. We have also made a significant advancement in silicon based cell technologies and the progress towards all solid state batteries.
Mr. Wu: Innovation remains central to our growth strategy.
Mr. Wu: Stay tuned for exciting development.
Mr. Wu: Please join me on slide four as I cover a few highlights.
Mr. Wu: We achieved record annual revenue of $380 million, an increase of 24% year over year, we ended up 123% increase in EMEA revenue.
Mr. Wu: Fourth quarter revenue also has a record of $113 4 million.
Mr. Wu: The strong 36, 6% of gross margin.
Mr. Wu: Our overall gross margin improved to 31, 5% from 18, 7% year over year.
Mr. Wu: And we delivered an adjusted EBITDA of $8 6 million in the fourth quarter, demonstrating the effectiveness of our strategic execution.
Mr. Wu: The charts are displayed our growth story, starting in 2022 through 2024 hour revenue has nearly doubled in this timeframe.
Mr. Wu: Which demonstrates the increasing market demand for.
Mr. Wu: For our high performance and diversified products.
Mr. Wu: On the gross profit side, we have grown by a multiple of more than 12 X.
Mr. Wu: Including year over year improvements in our gross margin by 12 eight percentage points, we continue to progress toward maturity within our industry.
Mr. Wu: With a focus on profitability and our ability to leverage operations at scale.
Mr. Wu: Turning to slide five.
Mr. Wu: I will briefly touch on our business strategy as we have communicated throughout in 2024.
Mr. Wu: We are focused on improving both the efficiency and profitability.
Mr. Wu: <unk> executed the strategies of our business in EMEA and APAC.
Mr. Wu: While implementing strategic cost cutting measures in the United States.
Mr. Wu: So 2024, it was a challenging year, we believe.
Mr. Wu: We are at as a turning point over sustainable profitability and aim to continue focusing on those metrics for 2025.
Mr. Wu: We have made measurable strides in our business, which allow us to take actions that prioritize our commercially available technologies.
Mr. Wu: We continue to adapt and grow is the changing market opportunities, where we see customer demand.
Mr. Wu: Our core focus for continued growth and success in crudes, becoming cash flow positive maintaining our strong gross margin profile, while we expand to meet customer demand.
Mr. Wu: And to grow our sales with new products and new market segments. We intend to achieve this through continued innovation, capturing new markets and expanding both our capacity and a global electrification footprint.
Mr. Wu: Turning to slide six we will go over some operations and development updates we are happy to give a progress update our who those phase three two expansion project.
Mr. Wu: This new line should it gave us up to an additional two gigawatt hour per year.
Mr. Wu: <unk> capacity in order to meet the high demand for our products <unk> utilities and the equipment installation are all well underway the expansion leverages, our existing infrastructure and expertise and it will help enable us to produce both Karen.
Mr. Wu: And future technologies, we anticipated first quantify production to come online in the fourth quarter of 2025.
Mr. Wu: Our recent announcements such as our industry first over horrible <unk> energy storage system are all solid state battery.
Mr. Wu: And enhanced the silicon based alloys continual progress, we hope to share more news so as those products in the coming months.
Mr. Wu: Please join us on slide seven to go over our successes in the year and always some challenges that we faced we delivered our highest annual revenue, which was up to 24% year over year, our backlog has grown to $401 3 million as of <unk>.
Mr. Wu: Demand for our technology continues to rapidly grow.
Mr. Wu: <unk> also realized great successes in a global heavy industry segments and maturing Korean market.
Mr. Wu: The company saw tremendous demand increase in EMEA market for micro <unk> products with backlog grows covering the product supply in the short term. We also received a customer nomination for next generation battery products from one of our leading European CV Oems.
Mr. Wu: An industry shift in heavy machinery, leveraging our technologies lead to additional orders from our current and new customers alike as demand for our high performance products continues.
Mr. Wu: Microsoft's held 100% of the supplier were hybrid trucks to <unk> in 2024 the company boost.
Mr. Wu: Operations ways is online for its hybrid trucks and enter in and annual framework agreement for all of its hybrid mining trucks. Additionally provides has deepened its relationship with propane.
Mr. Wu: To expand its new models and the market segments.
We face the challenges in 2024, including a difficult financing environment.
Mr. Wu: <unk> has changed and the increase can be patient in APAC region.
Mr. Wu: In responding the way that the strategic cost control and operational adjustments.
Mr. Wu: Slide eight through 11 shows some of our risks and the customer wins.
Mr. Wu: I will go over a few examples that display the market expansion and a delivery of successes, we have seen with our diversified product portfolio.
Mr. Wu: First with some line we are excited to be the exclusive supplier for a line of.
Mr. Wu: Hybrid mining trucks powered by our high power $53 five empower generation four packs are.
Mr. Wu: Hi, parsed out have been increasingly adopted by the mining industry for their performance safety and reliability in extreme conditions.
Mr. Wu: We are also working with Dongfeng trucks to bring mass production of its commercial trucks to the market.
Mr. Wu: <unk> will utilize our 'twenty, one empower and is 75 empower generation three packs.
Mr. Wu: On the agriculture side, we are working with LG AE to Bren.
Mr. Wu: Our largest extended our range of heavy duty tractors to life with our 48 empower generation forecast.
Microsoft's continue to pursue the trends in agriculture and is excited to help lead the industry in electrification.
Mr. Wu: The company has also engage ways.
Mr. Wu: <unk> mobility for fast charging Swappable battery project, utilizing 19 and power generation three packs projects like this presented a larger market with 24 expansion due to their lower total cost of ownership. This is just a sample of many projects.
Mr. Wu: Which we are involved and we expect to continue expanding our breadth and a market segment in 2025.
Speaker Change: Now Ms Bobbi will provide a more detailed overviews of our financial performance.
Ms Bobbi: Thank you Mr. <unk> and thank you everyone for joining in.
Ms Bobbi: I will now we will keep you our financial performance. Please turn to slide 13, where I will cover highlights from our full year and Q4 2020 full results.
Ms Bobbi: We recorded revenue of $113 4 million in Q4, 2024 compared to $104 6 million in Q4 2023.
Ms Bobbi: 8%.
Ms Bobbi: Year increase and as Mr. Liu mentioned earlier, a record fourth quarter for the company.
Ms Bobbi: On a full year basis, we achieved record revenue of $379 8 million up 24% from $306 6 million in 2023.
Ms Bobbi: Gross profit for Q4, 2024 was $41 5 million.
Ms Bobbi: For the $23 million in Q4, 2023, and 80% improvement driven by operational efficiencies increased utilization and disciplined cost control implementation.
Ms Bobbi: This resulted in a gross margin of 36, 6% compared to 22% in the prior year period.
Ms Bobbi: 14, six percentage point improvement.
Ms Bobbi: For the full year gross profit was $119 6 million more than double the prior year's $57 2 million, reflecting a 109% increase.
Ms Bobbi: Gross margin for the full year 2024, with 31, 5% up from 18, 7% in 2023.
Ms Bobbi: At 12, eight percentage point improvement, reflecting operating leverage and continued efficiency gains.
Ms Bobbi: Operating expenses were $43 2 million in Q4, 2024 compared to $46 million in Q4 'twenty to ensuing.
Ms Bobbi: The largest contributors to the quarterly decrease with cost saving actions taken in the second half of the year.
Ms Bobbi: The U S and streamlining across all our global operations.
Ms Bobbi: On a full year basis.
Ms Bobbi: <unk> expenses with $238 3 million compared to $165 9 million in 2023.
Ms Bobbi: Increase was primarily driven by non cash impairment charge of $93 2 million.
Our GAAP net loss for Q4, 2024 was $18 3 million compared to a net loss of $24 6 million in Q4 2023.
Ms Bobbi: GAAP net loss for the full year 2024, with $195 5 million compared to a net loss of $106 4 million in 2023.
Ms Bobbi: Now turning to non-GAAP results.
Ms Bobbi: After adjusting for non cash settled share based compensation expense or SBC in cost of sales.
Ms Bobbi: Adjusted gross profit was 41 6 million in Q4 2024 compared to $24 6 million in Q4 2023.
Ms Bobbi: This equates to an adjusted gross margin of 36, 7% in Q4, 2024 up 13, two percentage points year over year.
Ms Bobbi: For the full year 2024, adjusted gross profit was $123 million up from $63 3 million in 2023.
Ms Bobbi: Adjusted gross margin for the full year 'twenty 'twenty, four with 32, 4% compared to 27% in 2023 and 11, 7%.
Ms Bobbi: Vantage point improvement.
Ms Bobbi: After adjusting for noncash SBC expense in selling and marketing general administrative and research and development.
Ms Bobbi: Adjusted operating expenses in Q4, 2024 were $42 8 million compared to $34 3 million in Q4 2023.
Ms Bobbi: After accounting for those adjustments and changes in fair value of our convertible loan and associated warrants.
Ms Bobbi: Reported adjusted net loss of <unk> 6 million in Q4 2024 compared to an adjusted net loss of 11 4 million in Q4 2023.
Ms Bobbi: Adjusted EBITDA was $8 6 million in Q4, 'twenty 'twenty four.
Ms Bobbi: <unk> to a negative $2 6 million in the prior year period.
Ms Bobbi: Reconciliations of these non-GAAP metrics to the most comparable GAAP metrics.
Ms Bobbi: And the tables at the end of our earnings press release.
Ms Bobbi: Management also evaluated the company's ability to continue as a going concern in pi periods when disclaimer.
Ms Bobbi: Central doubt as to our ability to continue as a going concern existed due to liquidity constraints and recurring operating losses.
Ms Bobbi: However, with our operating results in the second half of 2004 and stronger cash positioning we have made meaningful progress towards financial sustainability.
Ms Bobbi: Management believes that its operational initiatives.
Ms Bobbi: Vision to enable the company to meet its obligations. The initially raise substantial doubt about the company's ability to continue as a going concern.
Ms Bobbi: Based on our current performance available resources and expectations for the next 12 months.
Ms Bobbi: It's concluded that there is no substantial doubt about our ability to continue as a going concern.
Ms Bobbi: Please turn to slide 14, where we will review 2024 revenue by region.
In EMEA, we achieved 123% year over year growth with revenue increasing to $187 7 million in 2024 compared to $84 4 million in 2023 accounting for almost half of total revenue. This.
Ms Bobbi: This impressive growth was driven by strong commercial traction in Italy, Germany, and other western European markets, reflecting continued demand for high performance battery systems that meet stringent EU safety and performance standard.
Ms Bobbi: I also Legion accelerates its electrification goals, we expect sustained growth.
Ms Bobbi: In the United States, where we were at 360% year over year for the three 1 million in 2020 to $14 4 million in 2024, contributing 4% of our total revenue.
Ms Bobbi: This increase reflects the early adoption of our battery systems by commercial vehicle Oems.
Ms Bobbi: While the U S remains a smaller revenue contributor for US we are confident in its long term potential and the regional growth will remain high with meaningful revenue impact in 2025.
Ms Bobbi: In Asia Pacific revenue declined from Q1 hundred $19 1 million and 21, three to 177 7 million in 2024, and 19% year over year decrease.
Ms Bobbi: This decline was aligned with our strategic repositioning away from low margin segments in China, and India, where price competition remains intense with.
Ms Bobbi: Lower priced LLP options.
Ms Bobbi: Our focus has shifted towards more profitable higher value opportunities.
Ms Bobbi: Basically in regions to emphasize technology differentiation overcome a digitization.
Ms Bobbi: Now turning to slide 15, let me walk you through our cash flow performance for 2024, we generated positive operating cash flow of $2 8 million a significant improvement compared to $75 3 million outflow in 2023. This turnaround was prime.
Ms Bobbi: Mainly driven by noncash adjustments, which helped offset our GAAP net loss.
Ms Bobbi: These were primarily $93 2 million in impairment charges $18 million in fair value adjustments related to our warrants and convertible level.
Ms Bobbi: $38 million in share based compensation and $30 1 million in depreciation.
Ms Bobbi: Cash used in investing activities totaled $12 2 million.
Ms Bobbi: Primarily from $27 7 million in capital expenditures, partially offset by 10 million from asset disposals, and $5 6 million for maturing short term investments.
Ms Bobbi: From financing activities, we generated 37 6 million in net cash, which included $101 5 million, a new bank borrowings and $25 million from our convertible loan.
Ms Bobbi: Partially offset by $66 2 million in repayments and $22 2 million in deferred capex.
Finally, after accounting for $6 8 million foreign exchange loss, we ended the year with a net increase in cash of $21 4 million, bringing our total cash and cash equivalents and restricted cash to $109 6 million as of year end positioning us with.
Ms Bobbi: Strong financial flexibility heading into 2025.
Speaker Change: I will now turn it back to Mr. <unk> to provide some visibility into outlook for the coming year and closing remarks.
Ms Bobbi: Thank you.
Ms Bobbi: Turning to slide 17.
Ms Bobbi: We expect 2025 revenue to increase 18% to 25% year over year.
Ms Bobbi: This puts our revenue guidance in the range of $450 million to $475 million.
Ms Bobbi: We will also aim to maintain our gross margin target of 30%.
Ms Bobbi: For our APAC business, we continue to target production capacity improvements at our <unk> facility to meet increasing customer demand.
Ms Bobbi: Our phase three two expansion is anticipated to come online later this year, which is expected to give us up to two gigawatt hour of additional capacity across a variety of all the high performance products.
Ms Bobbi: We are also making significant strides toward new and exciting product to add to our extensive product portfolio.
Ms Bobbi: We anticipate that our high growth EMEA business, well continue to drive significant revenue increases year over year, and we are working to secure new strategic partners for both current and upcoming products.
Ms Bobbi: For the Americas segment.
Ms Bobbi: Anticipating growing in revenue and as a company are regularly accesses is financing needs and analyzes the options available to it to summarize.
Ms Bobbi: 2024, it was a year of significant progress in our strategic realignment for micro <unk>, we achieved a record revenues.
Ms Bobbi: Australia in this strong global demand for our high performance battery solutions, particularly in EMEA region, we have significantly improved our gross margins and have delivered a positive adjusted EBITDA in the second half of year.
Ms Bobbi: <unk>, a clear shifted towards sustainable profitability.
Ms Bobbi: We have made substantial strides in technology innovation with unveiling of our <unk> energy storage system and advancements in silicon based and all solid state battery technologies.
Ms Bobbi: While we navigate challenges, including a difficult financing environment and a localized market pressures, our strategic cost cutting measures and a focus on high demand market.
Ms Bobbi: Physician to us for continue growth.
Ms Bobbi: Looking ahead to 2025, our priorities are clear achieving positive cash flow maintaining strong gross margins and expanding our market reach through continued innovation and strategic partnerships. We are confident in our ability to capitalize on the growing.
Ms Bobbi: Electrification trend and deliver long term value to our shareholders. Thank.
Ms Bobbi: Thank you all for attending another historical company quarterly update we look forward to updating you on our results for the first quarter of 2025.
This is the conference operator. This concludes today's webcast. Thank you for joining macro vast fourth quarter and full year 2024 earnings call you may now disconnect.
Ms Bobbi: Okay.
Ms Bobbi: <unk>.
Ms Bobbi:
Ms Bobbi: Okay.
Ms Bobbi: Yes.
Ms Bobbi: [music].
Ms Bobbi: Okay.
Ms Bobbi: Okay.
Ms Bobbi: Okay.
Ms Bobbi: Okay.
Ms Bobbi:
Ms Bobbi: Yeah.
Ms Bobbi: Okay.
Ms Bobbi: Yes.
Ms Bobbi: Yes.
Ms Bobbi: [music].
Ms Bobbi: Okay.
Ms Bobbi: Okay.
Ms Bobbi: [music].
Ms Bobbi: Yes.
Ms Bobbi: Yes.
Ms Bobbi: Yes.
Ms Bobbi: Yes.
Ms Bobbi: [music].
Ms Bobbi: Okay.
Ms Bobbi: [music].
Ms Bobbi: Okay.
Ms Bobbi: [music].
Ms Bobbi: Okay.
Ms Bobbi: [music].
Ms Bobbi: Yes.
Ms Bobbi: Okay.
Ms Bobbi: [music].
Ms Bobbi: Okay.
Ms Bobbi: Okay.
Ms Bobbi: Sure.
Ms Bobbi: [music].
Ms Bobbi: Yes.
Ms Bobbi: Okay.
Ms Bobbi: Thanks.
Ms Bobbi: Yes.
Ms Bobbi: Okay.
Ms Bobbi: [music].
Ms Bobbi: Okay.
Ms Bobbi: Yes.
Ms Bobbi: Okay.
Ms Bobbi: Yeah.
Ms Bobbi: Yes.
Ms Bobbi: Yes.
Ms Bobbi: [music].
Ms Bobbi: Okay.
Ms Bobbi: Sure.
Ms Bobbi: Yes.
Okay.
Ms Bobbi: Okay.
Ms Bobbi: [music].
Okay.
Ms Bobbi: [music].
Ms Bobbi: Okay.
Ms Bobbi: Okay.
Ms Bobbi: [music].
Ms Bobbi: Sure.
Ms Bobbi: Yes.
Ms Bobbi: Sure.
Ms Bobbi: [music].
Ms Bobbi: Okay.
Ms Bobbi: [music].
Ms Bobbi: Yes.
Ms Bobbi: Yes.
Ms Bobbi: Yes.
Ms Bobbi: Yes.
Ms Bobbi: Yes.
Ms Bobbi: [music].
Ms Bobbi: Okay.
Ms Bobbi: [music].
Ms Bobbi: Okay.
Ms Bobbi: [music].
Ms Bobbi: Okay.
Ms Bobbi: Okay.
Ms Bobbi: Okay.
Ms Bobbi: Okay.
Ms Bobbi: Yes.
Ms Bobbi: Okay.
Ms Bobbi: [music].
Ms Bobbi: Okay.
Ms Bobbi: Yes.
Ms Bobbi: Yes.
Ms Bobbi: [music].
Ms Bobbi: Okay.
Ms Bobbi: Okay.
Ms Bobbi: Okay.
Ms Bobbi: Okay.
Ms Bobbi: Okay.
Ms Bobbi: Yes.
Ms Bobbi: Okay.
Ms Bobbi: [music].
Ms Bobbi: Okay.
Ms Bobbi: [music].
Ms Bobbi: Sure.
Ms Bobbi: Okay.
Ms Bobbi: [music].
Ms Bobbi: Yes.
Ms Bobbi: Yes.
Ms Bobbi: Okay.
Ms Bobbi: Yes.
Ms Bobbi: Okay.
Ms Bobbi: Okay.
Ms Bobbi: Yes.
Ms Bobbi: Yes.
Ms Bobbi: Okay.
Ms Bobbi: Yes.
Ms Bobbi: Okay.
Ms Bobbi: Yes.
Ms Bobbi: Yeah.
Ms Bobbi: Okay.
Ms Bobbi: Thanks.
Ms Bobbi: Okay.
Ms Bobbi: Yes.
Ms Bobbi: Yes.
Ms Bobbi: Thanks.
Ms Bobbi: Yes.
Ms Bobbi: Okay.
Ms Bobbi: Sure.
Ms Bobbi: Yes.
Ms Bobbi: Thank you.
Ms Bobbi: Okay.
Ms Bobbi: Okay.
Ms Bobbi: Okay.
Ms Bobbi: Okay.
Ms Bobbi: Okay.
Ms Bobbi: Okay.
Ms Bobbi: [music].
Ms Bobbi: Yes.
Ms Bobbi: Yes.
Ms Bobbi: Okay.
[music].
Ms Bobbi: Okay.
Ms Bobbi: Okay.
Ms Bobbi: Sure.
Ms Bobbi: Okay.
Ms Bobbi: Okay.
Ms Bobbi: Okay.
Ms Bobbi: Okay.
Ms Bobbi: Yes.
Ms Bobbi: Yes.
Ms Bobbi: Okay.
Ms Bobbi: Sure.
Ms Bobbi: Yes.
Ms Bobbi: Okay.
Ms Bobbi: Okay.
Ms Bobbi: Okay.
Ms Bobbi: Yes.
Ms Bobbi: Okay.
Okay.
Ms Bobbi: Okay.
Ms Bobbi: Yes.
Ms Bobbi: [music].
Ms Bobbi: Okay.
Ms Bobbi: [music].
Ms Bobbi: Okay.
Ms Bobbi: Yes.
Ms Bobbi: Yes.
Ms Bobbi: [music].
Ms Bobbi: Yes.
Ms Bobbi: Okay.
Ms Bobbi:
Ms Bobbi: Okay.
Ms Bobbi: Okay.
Ms Bobbi: Yes.
Ms Bobbi: Yes.
Ms Bobbi: Okay.
Ms Bobbi: Okay.
Ms Bobbi: [music].
Ms Bobbi: Yes.
Ms Bobbi: Okay.
Ms Bobbi: [music].
Ms Bobbi: Yes.
Ms Bobbi: Okay.
Ms Bobbi: Yes.
Ms Bobbi: Yes.
Ms Bobbi: Okay.
Ms Bobbi: Okay.
Thank you for standing by this is the conference operator, welcome to micro Vas fourth quarter and full year 2024 earnings call. As a reminder, all participants are in a listen only mode and the conference is being recorded I would now like to turn the conference over to micro vast Investor Relations. Please go ahead.
Speaker Change: Thank you operator, and thank you everyone for joining our update today.
Mr. Yang: With me on today's call are Mr. Yang.
Bobby: <unk>, Chairman and CEO and MS very welcome Bobby CFO.
Bobby: Mr <unk>, who will start off with a high level overview of the full year and fourth quarter results before providing some operational and business updates.
Bobby: Mr. <unk> will then discuss our financials in more detail before handing it back to Mr. <unk> to wrap up with our 2025 outlook and closing remarks.
Bobby: Ahead of this call Microvessel issued its fourth quarter earnings press release, which can be found on the Investor Relations section of our website IR Dot microburst Dot com. We've also posted a slide presentation to accompany management's prepared remarks today.
Bobby: As a reminder, please note that this call may include forward looking statements.
Bobby: These statements are based on current expectations and assumptions and should not be relied upon as representative of our views for subsequent dates.
Bobby: We also undertake no obligation to revise or publicly release the results of any revision to these forward looking statements due to new information or future events.
Bobby: Actual results may differ materially from expectations due to a variety of risks and uncertainties.
Bobby: For more information on material risks and other important factors that could affect our financial results. Please refer to our filings with the SEC.
Bobby: We may also discuss non-GAAP financial measures. During this call. These measures should be considered in addition to and not as a substitute for or in isolation from GAAP results.
Bobby: These non-GAAP measures have been reconciled to their most comparable GAAP metrics in the tables included at the end of our press release.
Bobby: After the conclusion of this call a webcast replay will be available on the Investor Relations section of micro baskets website.
Speaker Change: And now I will turn the call over to Mr. <unk> for opening remarks.
Speaker Change: Thank you.
Speaker Change: And thank you everyone for joining today's call.
Speaker Change: I would like to start by welcoming both new and our legacy listeners and investors and I gave a quick snapshot.
Speaker Change: Who micro Ross is as a company.
Speaker Change: Michael Ross is a global leader in advanced battery technologies.
Speaker Change: Headquartered in Texas, where I founded in 2006.
Speaker Change: With over 775 patents and always electrified solutions deployed or wide. We are committed to driving innovation in the energy transition and are creating a sustainable future.
Speaker Change: Key 2024 product highlights, including the Emmy six are industry first over heupel LLC based energy storage system.
Speaker Change: Designed for a wide range of applications from utility scale storage to data center power. We have also made significant advancements in silicon based cell technologies and the progress towards all solid state batteries.
Innovation remains central to our growth strategy.
Speaker Change: Stay tuned for exciting development.
Speaker Change: Please join me on slide four as I cover a few highlights.
Speaker Change: We achieved record annual revenue of $380 million, an increase of 24% year over year with a 123% increase in EMEA revenue.
Speaker Change: Fourth quarter revenue also has a record of $113 4 million.
Speaker Change: The strong 36, 6% of gross margin.
Speaker Change: Our overall gross margin improved to 31, 5% from 18, 7% year over year.
Speaker Change: And we delivered an adjusted EBITDA of $8 6 million in the fourth quarter, demonstrating the effectiveness of our strategic execution.
The charts are displayed our growth story, starting in 2022 through 2024 hour revenue has nearly doubled in this timeframe.
Speaker Change: Which demonstrates the increasing market demand for.
Speaker Change: For our high performance and the diversified products.
Speaker Change: On the gross profit side, we have grown by a multiple of more than 12 X.
Speaker Change: Including year over year improvements in our gross margin by 12 eight percentage points.
Speaker Change: We continue to progress toward maturity within our industry.
Speaker Change: With a focus on profitability and our ability to leverage operations at scale.