Embark Technology (EMBK) Stock: Why It Surged By 84.8% Today

By Amit Chowdhry ● Aug 12, 2022
  • The stock price of Embark Technology (EMBK) surged by 84.8% today. This is why.

The stock price of Embark Technology (EMBK) surged by 84.8% today. Investors are responding to the company’s second-quarter results.

Embark reported a Q2 EPS of ($0.03), which was $0.06 higher than analyst estimates of ($0.09). These are the Q2 2022 financial highlights:

— Cash and cash equivalents were approximately $220.4 million as of June 30, 2022.

— Net loss was $14.3 million for the three months ended June 30, 2022, or $0.03 per share, compared to $20.2 million, or $0.14 per share, for the three months ended June 30, 2021. Net loss was $32.8 million for the six months ended June 30, 2022, or $0.07 per share, compared to $28.7 million, or $0.20 per share, for the six months ended June 30, 2021.

— Adjusted EBITDA loss was $23.9 million for the three months ended June 30, 2022 compared to adjusted EBITDA loss of $13.0 million for the three months ended June 30, 2021. Adjusted EBITDA loss was $47.1 million for the six months ended June 30, 2022 compared to adjusted EBITDA loss of $20.8 million for the six months ended June 30, 2021

— Stock-based compensation was $12.4 million for the three months ended June 30, 2022 compared to $0.5 million for the three months ended June 30, 2021. Stock-based compensation was $29.0 million for the six months ended June 30, 2022 compared to $1.1 million for the six months ended June 30, 2021. For 2022, Embark now expects stock-based compensation in the range of $60 million to $65 million, which includes approximately $10.6 million of stock-based compensation related to Embark’s founders performance stock unit grant. This grant does not begin to vest until Embark’s share price is at least $20.00, with a vesting schedule comprised of six price-based increments up to $100 per share, aligning our founders’ interests with long-term investors.

— Net cash used in operating activities was $40.3 million for the six months ended June 30, 2022 compared to $20.1 million for the six months ended June 30, 2021.

— Free cash flow spend was $24.7 million for the three months ended June 30, 2022 compared to $14.2 million for the three months ended June 30, 2021. Free cash flow spend was $44.7 million for the six months ended June 30, 2022 compared to $22.0 million for the six months ended June 30, 2021. For 2022, Embark now expects free cash flow spend in the range of $100 million to $115 million.