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Movella Reports Second Quarter 2023 Financial Results

  • Launched OBSKUR in Epic Games Store: the first all-in-one broadcasting application for livestreams
  • Began shipping the OBSKUR Mocap Box, powered by Xsens, for motion-enabled avatars
  • Extended leadership in automotive workplace ergonomics with BMW and partnership with Toyota

HENDERSON, Nev., Aug. 09, 2023 (GLOBE NEWSWIRE) -- Movella Holdings Inc. (NASDAQ: MVLA) (“Movella”), a leading full-stack provider of sensors, software, and analytics that enable the digitization of movement, today reported its results for the second quarter and six months ended June 30, 2023.

“We're proud to have launched the OBSKUR broadcasting platform this quarter, expanding Movella’s Xsens mocap technology from professional Hollywood studios to individual streamers and VTubers. OBSKUR enables livestreamers to create engaging content, complete with motion-enabled avatars,” said Movella CEO Ben Lee. “While the writers strike impacted our top line in Q2, our results reflect the resiliency embedded in the business, and our continued expansion of movement digitization use cases into our existing markets, as well as new growth areas such as automotive workplace ergonomics. We remain well positioned for significant opportunity ahead, particularly in film and game production once all parties reach a resolution.”

Second Quarter 2023 Financial Highlights

  • Revenue. Net revenue in Q2 totaled $8.4 million, a decrease of 3% year-over-year.  
  • Gross Profit. GAAP gross profit rose to $4.4 million as compared to $4.3 million last year. GAAP gross margin was 53%, an improvement of approximately 300 basis points year-over-year. Non-GAAP gross profit totaled $4.4 million versus $5.4 million for the comparable quarter in the previous year. Non-GAAP Q2 gross margin was 53%.
  • Loss from Operations. GAAP loss from operations in Q2 was $7.7 million, versus $6.8 million in the same period last year. Non-GAAP loss from operations was $7.2 million, versus $4.9 million in the same period last year.
  • GAAP Net Income. GAAP net loss attributable to common stockholders totaled $13.9 million versus $7.6 million in the comparable quarter in the previous year.
  • Adjusted EBITDA. Adjusted EBITDA in Q2 totaled negative $5.2 million versus negative $4.5 million in the comparable quarter in the previous year.
  • Cash and cash equivalents. Cash and cash equivalents at quarter end were $51.0 million, compared to $6.2 million as of the same period last year, and $62.1 million in Q1.

“The ongoing strikes in the entertainment industry that began in early May challenged our top line results in the quarter, and these headwinds may take time to resolve,” said Movella CFO Steve Smith. “Our strong cash position will allow Movella to continue to make measured investments in new compelling products and use cases such as OBSKUR, while continuing to manage our expenses prudently.”

Second Quarter 2023 Business Highlights

  • Launched OBSKUR in the Epic Games Store: the first all-in-one broadcasting application for engaging livestreams. The move comes at a time when the global livestreaming market is booming, with experts predicting the market to reach $247 billion by 2027 (Source: Market Research Future).
  • Began shipping the OBSKUR Mocap Box, powered by Xsens, for motion-enabled avatars.
  • Extended leadership in automotive workplace ergonomics with BMW and partnership with Toyota.
  • Hosted the Movella developer community at the Movella DOT Developers Conference 2023, with over 300 attendees and thought leader speakers in digital health present.
  • Hosted VTuber live-streamers who collectively represented over 100 million monthly views at private OBSKUR pre-launch event.

Conference Call and Webcast Information

The company will hold a conference call at 2:00 p.m. PT / 5:00 p.m. ET on Wednesday, August 9, 2023 to discuss Movella’s financial results and outlook. The call will be hosted by Ben Lee, CEO and Steve Smith, CFO. Q&A with management will follow immediately after prepared remarks.

A live webcast of the call will be accessible on the investor relations section of the Movella website at To access the call by phone, please register at Upon registration, telephone participants will receive the dial-in number along with a unique PIN number that can be used to access the call. A replay of the webcast will also be available for a limited time at

About Movella Holdings Inc.

Movella is a leading full-stack provider of sensors, software, and analytics that enable the digitization of movement. Movella serves the entertainment, health & sports, and automation & mobility markets. Our innovations enable customers to capitalize on the value of movement by transforming data into meaningful and actionable insights. Partnering with leading global brands such as Electronic Arts, EPIC Games, 20th Century Studios, Netflix, Toyota, Siemens, and over 500 sports organizations, Movella is creating extraordinary outcomes that move humanity forward. To learn more, please visit


(725) 238-5682

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of federal securities laws. The words “accelerate,” “anticipate,” “believe,” “continue,” “could,” “enable,” “estimate,” “expect,” “extend,” “fuel,” “future,” “growth,” “intend,” “may,” “might,” “opportunity,” “outlook,” “plan,” “position,” “possible,” “potential,” “predict,” “progress,” “project,” “realize,” “see,” “seem,” “should,” “will,” “would,” and similar expressions, or the negative of such expressions, may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements include, but are not limited to, statements regarding the following: our belief that our strong cash position will allow us to continue our focus on execution and on bringing new, innovative products to the market; that we expect to achieve near-term adjusted EBITDA breakeven and subsequent profitability; our ability to execute on our strategy to deliver value to shareholders, macro-environment challenges; the anticipated or potential features, benefits, and applications for Movella’s products and technology and timing thereof; the anticipated benefits and limitations of non-GAAP financial measures; the market opportunity for Movella’s products and technology; or other characterizations of future events or circumstances, including any underlying assumptions. These statements are based on the current expectations of Movella’s management and are not predictions of actual performance. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond Movella’s control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, the following: (i) failure to realize the anticipated benefits of the business combination; (ii) general economic and macro-economic conditions and Movella’s financial performance and factors affecting the same; (iii) changes adversely affecting the businesses and target markets in which Movella is engaged; (iv) Movella’s ability to execute on its business strategy and plans and to manage growth; and (v) risks related to regulatory matters, as well as the factors described under the headings “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” and under similar headings in the final prospectus filed with the Securities and Exchange Commission (the “SEC”) pursuant to Rule 424(b)(3) by Pathfinder on January 17, 2023, the Company’s annual report on Form 10-K for the year ended December 31, 2022 and current reports on Form 8-K filed on February 13, 2023 and March 31, 2023, and in Movella’s future filings with the SEC. If any of these risks materialize or the underlying assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that Movella presently knows or currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect expectations, plans or forecasts of future events and views as of the date of this press release. Movella anticipates that subsequent events and developments will cause its assessments to change. However, Movella specifically disclaims any obligation to update any forward-looking statements, except to the extent required by applicable law. These forward-looking statements should not be relied upon as representing Movella’s assessments as of any date subsequent to the date of this press release and are not intended to serve as a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Accordingly, undue reliance should not be placed upon the forward-looking statements.

Non-GAAP Financial Measures

Movella Holdings has provided financial information in this news release that has not been prepared in accordance with GAAP. Adjusted EBITDA, non-GAAP gross profit, and non-GAAP operating loss exclude net loss attributable to non-controlling interests, preferred stock dividends, share-based compensation expense, loss on debt extinguishments related to the consummation of the business combination agreement, debt issuance costs, change in fair value of warrant liabilities, fair value adjustments on debt instruments for which we elected the fair value option under ASC 825, and impairment of acquired intangible assets. Adjusted EBITDA also excludes interest expense and interest income, taxes, depreciation and amortization, other income (expense), certain transaction expenses related to the business combination agreement that are not expected to recur, and other infrequent costs.

Adjusted EBITDA, non-GAAP gross profit, non-GAAP gross margin, and non-GAAP operating loss are supplemental measures of our performance that are not required by, or presented in accordance with, GAAP. These non-GAAP financial measures have limitations as an analytical tool and are not intended to be used in isolation or as a substitute for net loss, gross profit, operating loss or any other performance measure determined in accordance with GAAP. We present these non-GAAP financial measures because we consider each to be an important supplemental measure of our performance.

We use these non-GAAP financial measures to make operational decisions, evaluate our performance, prepare forecasts and determine compensation. Further, we believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance when planning, forecasting and analyzing future periods. Share-based compensation expenses are expected to vary depending on the number of new incentive award grants issued to both current and new employees, the number of such grants forfeited by former employees, and changes in our stock price, stock market volatility, expected option term and risk-free interest rates, all of which are difficult to estimate. In calculating non-GAAP financial measures, we exclude certain non-cash and one-time items in order to facilitate comparability of our operating performance on a period-to-period basis because such expenses are not, in our view, related to our ongoing operating performance. We use this view of our operating performance for purposes of comparison with our business plan and individual operating budgets and in the allocation of resources.

We further believe that these non-GAAP financial measures are useful to investors in providing greater transparency to the information used by management in its operational decision-making. The Company believes that the use of these non-GAAP financial measures also facilitates a comparison of our underlying operating performance with that of other companies in our industry, which use similar non-GAAP financial measures to supplement their GAAP results.

Investors and potential investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool. The limitations of relying on non-GAAP financial measures include, but are not limited to, the fact that other companies, including other companies in our industry, may calculate non-GAAP financial measures differently than we do, limiting their usefulness as a comparative tool. Investors and potential investors are encouraged to review the reconciliation of our non-GAAP financial measures contained within this news release with our GAAP financial results.

(In thousands, except share and per share data)

 Three Months Ended June 30, Six Months Ended June 30,
  2023   2022   2023   2022 
 (unaudited) (unaudited)
Product$6,550  $7,064  $14,209  $15,164 
Service 1,809   1,513   3,317   2,921 
Total revenues 8,359   8,577   17,526   18,085 
Cost of revenues       
Product 2,971   3,184   5,332   6,773 
Service 944   1,137   2,154   2,250 
Total cost of revenues 3,915   4,321   7,486   9,023 
Gross profit 4,444   4,256   10,040   9,062 
Operating expenses       
Research and development 2,203   4,273   5,107   7,809 
Sales and marketing 3,785   3,660   7,265   7,100 
General and administrative 6,192   3,140   10,149   6,477 
Impairment of intangible assets       4,657    
   Total operating expenses 12,180   11,073   27,178   21,386 
Loss from operations (7,736)  (6,817)  (17,138)  (12,324)
Other income (expense)       
Loss on debt extinguishment       (107)   
Change in fair value of warrant liabilities 288      1,678    
Debt issuance costs       (7,945)   
Revaluation of debt, net (7,292)     24,576    
Interest expense (8)  (655)  (180)  (1,055)
Interest income 623   2   879   6 
Other income, net 149   65   34   148 
Income (loss) before income taxes (13,976)  (7,405)  1,797   (13,225)
Income tax expense (benefit) 71   (337)  129   (322)
Net income (loss) (14,047)  (7,068)  1,668   (12,903)
Net loss attributable to non-controlling interests (188)  (184)  (309)  (423)
Net income (loss) attributable to Movella Holdings Inc. (13,859)  (6,884)  1,977   (12,480)
Deemed dividend from accretion of Series D-1 preferred stock    (670)  (316)  (1,329)
Net income (loss) attributable to common stockholders$(13,859) $(7,554) $1,661  $(13,809)
Earnings (loss) per share attributable to common stockholders       
Basic$(0.27) $(1.48) $0.04  $(2.87)
Diluted$(0.27) $(1.48) $0.04  $(2.87)
Weighted average shares used in computing earnings (loss) per share attributable to common stockholders       
Basic 50,876,842   5,098,463   40,710,849   4,815,575 
Diluted 50,876,842   5,098,463   41,755,785   4,815,575 

(In thousands, except share and per share data)

 June 30,
 December 31,
Current assets   
Cash and cash equivalents$51,008  $14,334 
Accounts receivable, net of allowance for credit losses of $721 and $144 at June 30, 2023 and December 31, 2022 5,517   6,690 
Inventories 6,348   5,164 
Prepaid expenses and other current assets 5,404   3,274 
Total current assets 68,277   29,462 
Property and equipment, net 2,692   2,361 
Goodwill 37,238   36,381 
Intangible assets, net 2,216   5,807 
Non-marketable equity securities 25,292   25,285 
Capitalized equity issuance costs and other assets 1,668   4,265 
Deferred tax assets    86 
Right-of-use assets 3,134   3,281 
Total assets$140,517  $106,928 
Current liabilities   
Accounts payable$2,428  $5,967 
Accrued expenses and other current liabilities 6,428   7,944 
Current portion of long-term debt 141   148 
Current portion of deferred revenue 3,053   3,334 
Payable to Kinduct sellers – current    4,303 
Total current liabilities 12,050   21,696 
Long-term portion of term debt 50,458   25,649 
Convertible notes, net – related party    6,186 
Warrant liabilities 1,225    
Deferred revenue, net of current portion 1,331   1,344 
Deferred tax liabilities, net 68    
Operating lease liabilities and other non-current liabilities 2,934   3,088 
Total liabilities 68,066   57,963 
Commitments and contingencies   
Mezzanine equity   
Redeemable convertible preferred stock, $0.00001 par value. 0 shares authorized, issued, and outstanding at June 30, 2023; 3,207,472 shares authorized, issued and outstanding as of December 31, 2022; liquidation preference of $30,000 as of December 31, 2022    41,991 
Non-redeemable convertible preferred stock, $0.00001 par value. 20,000,000 shares authorized, 0 shares issued, and outstanding at June 30, 2023; 29,524,294 shares authorized and 24,338,566 shares issued and outstanding as of December 31, 2022; liquidation preference of $146,548 as of December 31, 2022    143,192 
Total mezzanine equity    185,183 
Stockholders’ equity (deficit)   
Common stock, $0.00001 par value. 900,000,000 shares authorized, 50,907,431 and 6,231,947 shares issued and outstanding at June 30, 2023 and December 31, 2022 1   1 
Additional paid-in capital 211,914   692 
Accumulated other comprehensive loss (561)  (1,646)
Accumulated deficit (140,039)  (142,016)
Total Movella stockholders’ equity (deficit) 71,315   (142,969)
Non-controlling interest in subsidiaries 1,136   6,751 
Total stockholders’ equity (deficit) 72,451   (136,218)
Total liabilities, mezzanine equity and stockholders’ equity$140,517  $106,928 

(In thousands)

  Three Months Ended June 30, Six Months Ended June 30,
  2023   2022   2023   2022 
Cash flows from operating activities(unaudited) (unaudited)
Net income (loss)$(14,047) $(7,068) $1,668  $(12,903)
Adjustments to reconcile net income (loss) to net cash used in operating activities       
Depreciation and amortization 281   1,795   953   3,647 
Stock-based compensation expense 493   335   1,157   648 
Provision for excess and obsolete inventories 241      241    
Allowance for credit losses 281      577    
Impairment of intangible assets       4,657    
Unrealized loss on marketable securities          58 
Accretion of convertible notes, net    154      154 
Accretion of Kinduct deferred payout       57    
Non-cash interest expense from note accretion    83   61   159 
Amortization of debt discount and debt issuance costs    140   52   209 
Gain on change in fair value of warrant liabilities (288)     (1,678)   
Gain on change in fair value of embedded derivative    (50)     (50)
Gain on revaluation of debt, net 7,292      (24,576)   
Loss on debt extinguishment       107    
Debt issuance costs       7,945    
Right-of-use assets 93      267    
Deferred income taxes 154      154    
Changes in operating assets and liabilities       
Accounts receivable (1,182)  (254)  606   474 
Inventories (84)  (951)  (1,313)  (2,014)
Prepaid expenses and other assets (80)  (4)  (1,488)  (54)
Other assets 67   (41)  (1,527)  (31)
Accounts payable (1,422)  202   (793)  (844)
Accrued expenses and other liabilities (729)  (551)  (1,126)  (848)
Deferred revenue (131)  (267)  (366)  247 
Other liabilities (69)  39   (205)  (35)
     Net cash used in operating activities (9,130)  (6,438)  (14,570)  (11,183)
Cash flows from investing activities       
  Purchase of intangibles          (153)
  Additions to capitalized software development costs (1,513)     (1,528)   
  Purchases of property and equipment (455)  (87)  (646)  (302)
     Net cash used in investing activities (1,968)  (87)  (2,174)  (455)
Cash flows from financing activities       
Proceeds from Venture Linked Notes       75,000    
Payment of debt issuance costs       (8,791)   
Proceeds from Business Combination       36,048    
Payment of equity issuance costs       (18,682)   
Repayment of loans using proceeds from Venture Linked Notes       (25,557)   
Proceeds from term loans and revolving line of credit, net    63      1,006 
Proceeds from issuance of convertible notes          4,873 
Principal payments of loans          (280)
Proceeds from the exercise of stock options    1,404   10   1,491 
Payment of deferred payout to Kinduct sellers       (4,360)   
     Net cash provided by financing activities    1,467   53,668   7,090 
Effect of foreign exchange rate changes on cash and equivalents 10   (224)  (250)  (443)
     Net increase (decrease) in cash and cash equivalents (11,088)  (5,282)  36,674   (4,991)
Cash and cash equivalents       
Beginning of period 62,096   11,457   14,334   11,166 
End of period$51,008  $6,175  $51,008  $6,175 
Supplemental disclosures of cash flow information       
Cash paid for interest$57  $300  $614  $507 
Cash paid for taxes, net of refunds 34   80   93   127 
Supplemental disclosure of non-cash investing and financing activities       
Accretion of Series D-1 convertible preferred Stock$  $670  $316  $1,329 
Issuance of convertible notes in exchange for Kinduct deferred payout          1,148 
Distribution of equity shares to TDI NCI           
Issuance of warrants to lender          18 
Right-of-use assets obtained in exchange for operating lease liabilities 219      219   4,280 
Debt and equity issuance costs financed through accrued expenses and other current liabilities           
Issuance of common stock upon conversion of Convertible notes       6,520    
Issuance of common stock upon conversion of preferred stock       185,499    
Acquisition of warrant liabilities       2,903    
Capitalized equity issuance costs applied to proceeds       4,248    
Partial disposition of QDJV 5,306      5,306    

Reconciliation of GAAP Net Income Attributable to Common Stockholders to Non-GAAP Net Loss
(In thousands)

 Three Months Ended
June 30, 2023
 Six Months Ended
June 30, 2023
 Net Income (Loss) Net Income (Loss)
Per Share
 Net Income (Loss) Net Income (Loss)
Per Share
GAAP net income (loss) attributable to common shareholders$(13,859) $(0.27) $1,661  $0.04 
Deemed dividends from accretion of Series D-1 Preferred Stock       316   0.01 
Stock-based compensation 493   0.01   1,157   0.03 
Intangibles amortization 52      508   0.01 
Loss on debt extinguishment       107    
Debt issuance costs       7,945   0.20 
Revaluation of debt 7,292   0.15   (24,576)  (0.60)
Change in fair value of warrant liabilities (288)  (0.01)  (1,678)  (0.04)
Impairment of intangible assets       4,657   0.11 
Non-GAAP net loss$(6,310) $(0.12) $(9,903) $(0.24)

Reconciliation of GAAP Cost of Revenues and Operating Costs and Expenses to Non-GAAP Cost of Revenues and Operating Costs and Expenses
Three Months Ended June 30, 2023
(In thousands)

of Intangibles
Product$6,550      $6,550 
Service 1,809       1,809 
Total revenues 8,359       8,359 
Cost of revenues       
Product 2,971       2,971 
Service 944       944 
Total cost of revenues 3,915       3,915 
Gross profit       
Product 3,579       3,579 
Service 865       865 
Total gross profit 4,444       4,444 
Gross margin       
Product 54.6%      54.6%
Service 47.8%      47.8%
Total gross margin 53.2%      53.2%
Operating expenses       
Research and development 2,203   80    2,123 
Sales and marketing 3,785   148    3,637 
General and administrative 6,192   265  52  5,875 
Total operating expenses$12,180  $493 $52 $11,635 
Total  $493 $52  
Loss from operations$(7,736)     $(7,191)

Reconciliation of GAAP Cost of Revenues and Operating Costs and Expenses to Non-GAAP Cost of Revenues and Operating Costs and Expenses
Six Months Ended June 30, 2023
(In thousands)

of Intangibles
 Impairment of Intangibles Non-
Product$14,209        $14,209 
Service 3,317         3,317 
Total revenues 17,526         17,526 
Cost of revenues         
Product 5,332         5,332 
Service 2,154     264    1,890 
Total cost of revenues 7,486     264    7,222 
Gross profit         
Product 8,877         8,877 
Service 1,163         1,427 
Total gross profit 10,040         10,304 
Gross margin         
Product 62.5%        62.5%
Service 35.1%        43.0%
Total gross margin 57.3%        58.8%
Operating expenses         
Research and development 5,107   299      4,808 
Sales and marketing 7,265   288  139    6,838 
General and administrative 10,149   570  105    9,474 
Impairment of intangible assets 4,657       4,657   
Total operating expenses$27,178  $1,157 $244 $4,657 $21,120 
Total  $1,157 $508 $4,657  
Loss from operations$(17,138)       $(10,816)

Reconciliation of GAAP Net Income Attributable to Common Stockholders to Non-GAAP Net Loss and Adjusted EBITDA
(In thousands)

 Three Months Ended
June 30, 2023
 Six Months Ended
June 30, 2023
Net income (loss) attributable to common stockholders$(13,859) $1,661 
Deemed dividend from accretion of Series D-1 preferred stock    316 
Stock-based compensation 493   1,157 
Amortization of acquired intangibles 52   508 
Loss on debt extinguishment    107 
Change in fair value of warrant liabilities (288)  (1,678)
Debt issuance costs    7,945 
Revaluation of debt, net 7,292   (24,576)
Impairment of intangible assets    4,657 
Non-GAAP net loss$(6,310) $(9,903)
Interest expense 8   180 
Interest income (623)  (879)
Income tax expense 71   129 
Depreciation and amortization, excluding acquired intangibles 229   445 
Other income, net (149)  (34)
Costs incurred related to the transaction 78   394 
Other infrequent costs 1,499   1,499 
Adjusted EBITDA$(5,197) $(8,169)

Quarterly Net Revenues by Product Grouping
(In thousands)

 Three Months Ended
 June 30,
 March 31,
 December 31,
 September 30,
 June 30,
Product$6,550 $7,659 $10,068 $9,051 $7,064
Service 1,809  1,508  2,049  1,213  1,513
Total revenues$8,359 $9,167 $12,117 $10,264 $8,577


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