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Aerogel Firm's Shares Rise 15% on Q3 Earnings and Raised FY21 Revenue Outlook

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Shares of Aspen Aerogels Inc. reached a new 52-week high after the company reported Q3/21 financial results that included a 26% increase in YoY revenues. The firm raised its FY/21 revenue estimates by greater than $10 million and said it is beefing up planned investments during Q4/21 to position it for even stronger revenue growth and profitability in future years.

After U.S. equity markets closed for trading yesterday, Aspen Aerogels Inc. (ASPN:NYSE), which is focused on developing and manufacturing aerogel insulation products for energy infrastructure and building materials markets, announced financial results for the third quarter of 2021 ended September 30, 2021.

The company indicated that total revenue in Q3/21 increased by 26% to $30.4 million, compared to $24.2 million in Q3/20. The firm noted that revenues from sales of its PyroThin™ thermal barrier have now exceeded $1.0 million year-to-date.

Aspen Aerogels advised that gross profit grew 61% to $3.067 million in Q3/21, versus $1.9 million during Q3/20.

The company advised that it posted a net loss of $7.8 million, or $0.24 per share in Q3/21, compared to a net loss of $6.8 million, or $0.25 per share in Q3/20.

The company indicated that it posted total revenue for the first nine months of $90.1 million, compared to $77.3 million during the first nine months of FY/20. Over the same corresponding period, Aspen reported it recorded a net loss of $20.7 million, versus a net loss of $15.6 million during the first nine months of 2020.

Aspen Aerogels' President and CEO Don Young commented, "Our business continues to accelerate and we are pleased with the increasing market adoption of our high-performance thermal solutions…Third quarter revenue growth of 26% reflected a continuation of the beginning stage of a post-COVID recovery in our maintenance related business in the global chemical and refinery markets, particularly in the U.S. As a result of this solid growth, gross profit and gross margin improved versus the third quarter of 2020."

"We made considerable progress during the quarter in the development of our PyroThin thermal barrier business. We delivered approximately $1.0 million of PyroThin thermal barrier prototypes in the third quarter and will begin shipments of production parts to our major U.S. and Asian automotive customers during the fourth quarter…We are increasingly being asked to provide broader solutions for improved battery performance and safety centered on our PyroThin materials that provide thermal management, mechanical stability and fire protection properties to EV battery systems, "Young added.

The company offered some forward guidance and noted that it is raising its FY/21 estimates which it has done for the third consecutive quarter.

Aspen Aerogels advised that FY/21 total revenue is expected to be between $122.0-128.0 million.

The company stated that it anticipates that it will incur a net loss of between $29.0-$31.0 million, or a net loss of $0.96-1.02 on a per share based upon weighted average shares outstanding of 30.4 million. The firm added that for FY/21 it expects adjusted EBITDA of between $(18.5) million and $(20.5) million.

CEO Young commented further regarding the outlook for rest of the current year and stated that the company is increasing its estimates for its EV thermal barrier revenues for FY/21 by $5.0 million to a range of between $6.0 and 7.0 million.

"We continue to experience a strengthening of demand in both the energy infrastructure and green building materials markets. Accordingly, we are increasing our 2021 total revenue outlook by over $10.0 million," Young added.

CEO Young closed out his by comments by noting that in order to take advantage rapidly growing e-mobility opportunities, the firm plans to increase its investment levels in Q4/21. These new, incremental investments will be made to supporting Aspen's thermal barrier and carbon aerogel battery materials businesses and will help position the company for strong revenue growth and profitability in years forward.

Aspen Aerogels is headquartered in Northborough, Mass., and is a designer, developer and manufacturer of "aerogels" used in the energy and building materials industries. The firm stated that its advantage aerogel technology helps its clients achieve their goals of maximizing resource efficiency, e-mobility and clean energy.

The firm listed that "its PyroThin™ products enable solutions to thermal runaway challenges within the electric vehicle market and that its carbon aerogel program seeks to increase the performance of lithium-ion battery cells to enable EV manufacturers to extend the driving range and reduce the cost of electric vehicles." Aspen also makes its Spaceloft® products for energy efficiency and fire safety applications and its line of Cryogel® and Pyrogel® products for use by some of the largest global energy infrastructure firms.

Aspen Aerogels started the day with a market cap of around $1.5 billion with approximately 32.94 million shares outstanding and a short interest of about 1.5%. ASPN shares opened more than 9% higher today at $50.69 (+$4.47, +9.67%) over yesterday's $46.22 closing price and reached a new 52-week high this morning of $55.47. The stock has traded today between $48.54 and $55.49 per share and is currently trading at $54.42 (+$7.29, +15.80%).


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