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Movella Reports First Quarter 2023 Financial Results


Q1 revenue totaled $9.2 million, Q1 GAAP gross margin was a record 61%, an improvement of approximately 1000 basis points year-over-year
Introduced MTi-320 high-performance Active Heading Tracker (AHT) for robotics and autonomous vehicle applicationsStrong response to the new OBSKURTM platform resulting in over-subscription to early access stage prior to launch this summer

HENDERSON, Nev., May 10, 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 first quarter ended March 31, 2023.

“We believe our strong cash position resulting from our Nasdaq listing will allow us to continue our focus on execution and on bringing new, innovative products to the market,” said Movella CEO Ben Lee. “The impressive early access response to OBSKUR, Movella’s new all-in-one platform that provides live-streaming influencers with tools and assets for delivering immersive interactive experiences, is an example of our strong execution.”

First Quarter 2023 Financial Highlights

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Revenue. Net revenue in Q1 totaled $9.2 million, a decrease of 4% year-over-year.  Gross Profit. GAAP gross profit rose to $5.6 million as compared to $4.8 million last year. GAAP gross margin reached a record 61%, an improvement of approximately 1000 basis points year-over-year. Non-GAAP gross profit totaled $5.9 million versus $6.0 million for the comparable quarter in the previous year. Non-GAAP Q1 gross margin was 64%.Loss from Operations. GAAP loss from operations in Q1 was $9.4 million, inclusive of a $4.7 million non-cash intangibles impairment charge, versus $5.5 million in the same period last year. Non-GAAP loss from operations was $3.6 million, a decrease of $0.1 million year-over-year.GAAP Net Income. GAAP net income attributable to common stockholders totaled $15.5 million versus a net loss of $6.3 million in the comparable quarter in the previous year.Adjusted EBITDA. Adjusted EBITDA in Q1 totaled negative $3.0 million, an improvement of $0.1 million year-over-year.Cash and cash equivalents. Cash and cash equivalents at quarter end were $62.1 million, compared to $14.3 million as of December 31, 2022.

“While the challenging macro environment and typical seasonality weighed on our first quarter top line performance, we expect to achieve near-term adjusted EBITDA breakeven and subsequent profitability, driven by continued gross margin expansion and prudent expense management,” said Movella CFO Steve Smith. “We believe our results combined with our expectations reflect the strength of our business and our ability to execute on our strategy to deliver value for our shareholders.”

First Quarter 2023 Business Highlights

Received strong response to the new OBSKUR platform, resulting in over-subscription to early access stage prior to production launch this summerImproved time-to-market and reduced cost of production for leading-game developer Ubisoft by leveraging Movella’s Xsens motion capture suits for real-time prototyping and pre-visualization of character movementIntroduced MTi-320 high performance Active Heading Tracker (AHT) for robotics and autonomous vehicle applicationsAnnounced the appointment of Dale Pistilli as Vice President of Marketing to drive brand strategy and the overall marketing efforts of the company

“To accelerate the OBSKUR momentum, enhance the Movella brand, and grow as a public company, we are excited to announce the appointment of Dale Pistilli as our new VP of Marketing,” continued Movella CEO Ben Lee. “Dale’s deep knowledge of influencer and creator marketing complements the strengths of the executive team we’ve built over the past two years, including CFO Steve Smith’s strong public company background, and CTO Vijay Nadkarni’s AI expertise and leadership from his previous companies.”

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, May 10, 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

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 income, taxes, depreciation and amortization, other income (expense), and certain non-recurring transaction expenses related to the business combination agreement.

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 its 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.


(725) 238-5682

(In thousands, except share and per share data)
 Three Months Ended March 31,  2023   2022  (unaudited)Revenues        Product$7,659  $8,100 Service 1,508   1,408 Total revenues 9,167   9,508 Cost of revenues   Product 2,361   3,589 Service 1,210   1,113 Total cost of revenues 3,571   4,702 Gross profit 5,596   4,806 Operating expenses   Research and development 2,904   3,536 Sales and marketing 3,480   3,440 General and administrative 3,957   3,337 Impairment of intangible assets 4,657   — Total operating expenses 14,998   10,313 Loss from operations (9,402)  (5,507)Other income (expense)   Loss on debt extinguishment (107)  — Change in fair value of warrant liabilities 1,390   — Debt issuance costs (7,945)  — Revaluation of debt 31,868   — Interest expense (172)  (400)Interest income 256   4 Other income (expense), net (115)  83 Income (loss) before income taxes 15,773   (5,820)Income tax expense 58   15 Net income (loss) 15,715   (5,835)Net loss attributable to non-controlling interests (121)  (239)Net income (loss) attributable to Movella Holdings Inc. 15,836   (5,596)Deemed dividend from accretion of Series D-1 preferred stock (316)  (659)Net income (loss) attributable to common stockholders$15,520  $(6,255)    Earnings per share attributable to common stockholders   Basic$0.51  $(1.38)Diluted$0.36  $(1.38)Weighted average shares used in computing earnings per share attributable to common stockholders   Basic 30,440,497   4,529,543 Diluted 44,562,485   4,529,543          MOVELLA HOLDINGS INC.
(In thousands, except share and per share data) March 31,
2023 December 31,
2022ASSETS(unaudited)Current assets   Cash and cash equivalents$62,096  $14,334 Accounts receivable, net of allowance for credit losses of $440 and $144 at March 31, 2023 and December 31, 2022 4,716   6,690 Inventories 6,570   5,164 Prepaid expenses and other current assets 5,657   3,274 Total current assets 79,039   29,462 Property and equipment, net 2,362   2,361 Goodwill 36,666   36,381 Intangible assets, net 843   5,807 Non-marketable equity securities 25,285   25,285 Capitalized equity issuance costs and other assets 1,735   4,265 Deferred tax assets 86   86 Right-of-use assets 3,107   3,281 Total assets$149,123  $106,928 LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ EQUITY (DEFICIT)    Current liabilities   Accounts payable$3,896  $5,967 Accrued expenses and other current liabilities 7,356   7,944 Line of credit and current portion of long-term debt 148   148 Current portion of deferred revenue 3,159   3,334 Payable to Kinduct sellers – current —   4,303 Total current liabilities 14,559   21,696 Long-term portion of term debt 43,187   25,649 Convertible notes, net – related party —   6,186 Warrant liabilities 1,513   — Deferred revenue, net of current portion 1,389   1,344 Operating lease liabilities and other non-current liabilities 2,982   3,088 Total liabilities 63,630   57,963 Commitments and contingencies   Mezzanine equity   Redeemable convertible preferred stock, $0.00001 par value. 0 shares authorized, issued, and outstanding at March 31, 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 March 31, 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’ deficit   Common stock, $0.00001 par value. 900,000,000 shares authorized, 50,693,308 and 6,231,947 shares issued and outstanding at March 31, 2023 and December 31, 2022 1   1 Additional paid-in capital 206,428   692 Accumulated other comprehensive loss (1,386)  (1,646)Accumulated deficit (126,180)  (142,016)Total Movella stockholders’ equity (deficit) 78,863   (142,969)Non-controlling interest in subsidiaries 6,630   6,751 Total stockholders’ equity (deficit) 85,493   (136,218)Total liabilities, mezzanine equity and stockholders’ equity (deficit)$149,123  $106,928          MOVELLA HOLDINGS INC.
(In thousands)  Three Months Ended March 31,  2023   2022 Cash flows from operating activities(unaudited)Net income (loss)$15,715  $(5,835)Adjustments to reconcile net loss to net cash used in operating activities   Depreciation and amortization 672   1,852 Stock-based compensation expense 664   313 Allowance for credit losses 296   — Impairment of intangible assets 4,657   — Unrealized loss (gain) on marketable securities —   58 Accretion of convertible notes, net 61   76 Accretion of Kinduct deferred payout 57   — Amortization of debt discount and debt issuance costs 52   69 Gain on change in fair value of warrant liabilities (1,390)  — Gain on revaluation of debt (31,868)  — Loss on debt extinguishment 107   — Debt issuance costs 7,945   — Right-of-use assets 174   — Changes in operating assets and liabilities, net of acquisition   Accounts receivable 1,788   728 Inventories (1,229)  (1,063)Prepaid expenses and other assets (1,408)  (50)Other assets (1,594)  10 Accounts payable 629   (1,046)Accrued expenses and other liabilities (397)  (297)Deferred revenue (235)  514 Other liabilities (136)  (74)Net cash used in operating activities (5,440)  (4,745)Cash flows from investing activities   Purchase of intangibles (15)  (153)Purchases of property and equipment (191)  (215)Net cash used in investing activities (206)  (368)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 —   943 Proceeds from issuance of convertible notes —   4,873 Principal payments of loans —   (280)Proceeds from the exercise of stock options 10   87 Payment of deferred payout to Kinduct sellers (4,360)  — Net cash provided by financing activities 53,668   5,623 Effect of foreign exchange rate changes on cash and equivalents (260)  (219)Net increase in cash and cash equivalents 47,762   291 Cash and cash equivalents   Beginning of period 14,334   11,166 End of period$62,096  $11,457     Supplemental disclosures of cash flow information   Cash paid for interest$557  $207 Cash paid for taxes, net of refunds 59   47 Supplemental disclosure of non-cash financing activity   Accretion of Series D-1 convertible preferred Stock$316  $659 Issuance of convertible notes in exchange for Kinduct deferred payout —   1,148 Issuance of warrants to lender —   18 Right-of-use assets obtained in exchange for operating lease liabilities —   4,280 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   —          MOVELLA HOLDINGS INC.
Reconciliation of GAAP Net Income Attributable to Common Stockholders to Non-GAAP Net Loss
(In thousands)
(Unaudited) Three Months Ended
March 31, 2023 Net Loss Net Income (Loss) Per ShareGAAP net income attributable to common shareholders$15,520  $0.51 Deemed dividends from accretion of Series D-1 Preferred Stock 316   0.01 Stock-based compensation 664   0.02 Intangibles amortization 457   0.02 Loss on debt extinguishment 107   — Debt issuance costs 7,945   0.26 Revaluation of debt (31,868)  (1.04)Change in fair value of warrant liabilities (1,390)  (0.05)Impairment of intangible assets 4,657   0.15 Non-GAAP net loss$(3,592) $(0.12)         MOVELLA HOLDINGS INC.
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 March 31, 2023
(In thousands)
(Unaudited)   Adjustments   GAAP
Financials Stock-Based
Compensation Amortization
of Intangibles Impairment of
Intangibles Non-
FinancialsRevenues         Product$7,659   —  —  — $7,659 Service 1,508   —  —  —  1,508 Total revenues 9,167   —  —  —  9,167 Cost of revenues         Product 2,361   —  —  —  2,361 Service 1,210   —  260  —  950 Total cost of revenues 3,571   —  260  —  3,311 Gross profit         Product 5,298         5,298 Service 298         558 Total gross profit 5,596         5,856 Gross margin         Product 69.2%        69.2%Service 19.8%        37.0%Total gross margin 61.0%        63.9%Operating expenses         Research and development 2,904   219  —  —  2,685 Sales and marketing 3,480   140  139  —  3,201 General and administrative 3,957   305  58  —  3,594 Impairment of intangible assets 4,657   —  —  4,657  — Total operating expenses$14,998  $664 $197 $4,657 $9,480 Total  $664 $457 $4,657  Loss from operations$(9,402)       $(3,624)               MOVELLA HOLDINGS INC.
Reconciliation of GAAP Net Income Attributable to Common Stockholders to Non-GAAP Net Loss and Adjusted EBITDA
(In thousands)
(Unaudited) Three Months Ended
March 31, 2023Net income attributable to common stockholders$15,520 Deemed dividend from accretion of Series D-1 preferred stock 316 Stock-based compensation 664 Amortization of acquired intangibles 457 Loss on debt extinguishment 107 Change in fair value of warrant liabilities (1,390)Debt issuance costs 7,945 Revaluation of debt (31,868)Impairment of intangible assets 4,657 Non-GAAP net loss$(3,592)Interest expense 172 Interest income (256)Income tax expense 58 Depreciation and amortization, excluding acquired intangibles 215 Other expenses, net 115 Non-recurring transaction expenses 316 Adjusted EBITDA$(2,972)     MOVELLA HOLDINGS INC.
Quarterly Net Revenues by Product Grouping
(In thousands)
(Unaudited) Three Months Ended March 31,
2023 December 31,
2022 September 30,
2022 June 30,
2022 March 31,
2022Product$7,659 $10,068 $9,051 $7,064 $8,100Service 1,508  2,049  1,213  1,513  1,408Total revenues$9,167 $12,117 $10,264 $8,577 $9,508

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