MicroVision shares slump on Q1 earnings miss

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Microvision (NASDAQ:MVIS) has dropped around -7% following a Q1 results announcement that missed Wall Street estimates.

Revenue fell -30.0% Y/Y to $0.35M, while adjusted EBITDA widened to -$9M from -$4.3M in the prior year's quarter. Net loss for the quarter nearly doubled to $13.2M from $6.2M earlier. The bottom line included a $3.7M non-cash, share-based compensation expense.

Microvision CEO Sumit Sharma said that it track tested its integrated Long Range Lidar sensor and perception software, demonstrating "promising ground-truth data of our high-fidelity/low-latency solution at speeds of over 60 mph." However, the firm does not expect to post significant revenue from the direct sale of its LiDAR sensors at the moment.

The company recognized $350,000 in royalty revenue from Microsoft in Q1, attributable to the contract executed in April 2017 for the use of its technology in their AR display product. It expects to recognize $2.5M in revenue for the entire year against this contract liability with Microsoft.

Microvision ended the first quarter with $103.3M in cash and cash equivalents including investment securities, compared to $115.4M at end-2021.

A recent SA contributor analysis warned that Microvision's "meme" stock status makes it difficult to predict future projections. With a growth trajectory divorced from fundamentals, it a "risky bet that is overpriced despite deteriorating financial fundamentals".