Aspen Aerogels, Inc. (NYSE:ASPN) Q3 2018 Earnings Conference Call Transcript
Nov 01, 2018 • 05:00 pm ET
Good afternoon. My name is Jesse, and I'll be your conference operator today. At this time, I would like to welcome everyone to Aspen Aerogels Third Quarter 2018 Earnings Call. All lines are placed on mute to prevent any background noise. After the speakers' remarks there will be a questions-and-answer session. (Operator Instructions) Thank you.
John Fairbanks, you may begin your conference.
Good afternoon. Thank you for joining us for the Aspen Aerogels conference call. I'm John Fairbanks, Aspen's CFO. There are a few housekeeping items that I would like to address before turning the call over to Don Young, Aspen's President and CEO.
The press release announcing Aspen's financial results and business developments, as well as a reconciliation of management's use of non-GAAP financial measures compared to the most applicable GAAP measures is available on the Investors section of Aspen's website, www.aerogel.com. Included in the press release is a summary statement of operations, a summary balance sheet and a summary of key financial and operating statistics for the quarter and nine months ended September 30, 2018. In addition, the Investors section of Aspen's website will contain an archived version of this webcast for approximately one year.
(Forward-Looking Cautionary Statements)
During this call, we will refer to non-GAAP financial measures, including adjusted EBITDA. These financial measures are not prepared in accordance with US Generally Accepted Accounting Principles or GAAP. These non-GAAP financial measures are not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. The definitions of and reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures, the discussion of why we present these non-GAAP financial measures is also available in today's press release.
I'll now turn the call over to Don Young, President and CEO of Aspen Aerogels.
Thank you, John. Good afternoon. Thank you for joining us for our Q3 2018 earnings call. I will start by providing comments about the business and our performance; next, John will review our Q3 and year-to-date 2018 financials and update our guidance for the year. We will conclude the call with a Q&A session.
I plan to cover three topics in my prepared remarks. First, I will review Q3, describe the current commercial environment and also comment on how we see the market playing out for the remainder of 2018 including our outlook against our three 2018 performance indicators. Second, I'll provide an update on the execution of our strategy, which is to leverage our aerogel technology platform across our core, adjacent and new markets. And third, I will share my early view of the commercial outlook for 2019 and our key targets for the year.
At a summary level, Q3 revenue of $23.9 million was 10% higher than Q2 and we are projecting a significantly stronger fourth quarter. At the time of our last earnings call, I noted that revenue in Q2 was comprised virtually entirely of maintenance orders and lacked the usual handful of $1 million, $2