Fluence Energy, Inc. (Nasdaq: FLNC) (“Fluence” or the “Company”), a
leading global provider of energy storage products and services as
well as digital applications for renewables and storage, today
announced its results for the three and six months ended March 31,
2024.
Financial Highlights for Second Fiscal
Quarter ended March 31, 2024
- Revenue of
approximately $623.1 million, which represents a decrease of
approximately 11% from the same quarter last year, primarily driven
by timing of product deliveries.
- GAAP gross profit
margin improved to approximately 10.3%, compared to approximately
4.4% for the same quarter last year.
- Adjusted gross
profit margin1 improved to approximately 10.6%, compared to
approximately 4.6% for the same quarter last year.
- Net loss of
approximately $12.9 million, improved from net loss of
approximately $37.4 million for the same quarter last year.
- Adjusted EBITDA1 of
approximately negative $6.1 million, improved from approximately
negative $27.7 million for the same quarter last year.
- Backlog2 of
approximately $3.7 billion as of March 31, 2024, compared to
approximately $3.7 billion as of December 31, 2023.
- Total Cash3 of
approximately $541.5 million, representing an increase of
approximately $79 million from September 30, 2023.
- Net cash provided
by operating activities was approximately $90.2 million in the
first half of the fiscal year 2024, compared to approximately
negative $163.4 million in the same period last year.
- Free cash flow1 was
approximately $87.8 million in the first half of fiscal year
2024, compared to approximately negative $164.5 million in the same
period last year.
Executive Summary
"I am pleased to report that in the second
quarter, Fluence delivered more than $620 million of revenue and
increased its total cash position to more than $540 million. We
continued to demonstrate consistent profitability with our third
consecutive quarter of double-digit gross margins. This strong
financial performance reflects our commitment to strong execution
and continuous focus on our customers to deliver competitive,
reliable, and safe solutions," said Julian Nebreda, the Company’s
President and Chief Executive Officer.
"We made significant progress this quarter in
offering products that provide greater value to our customers and
we are seeing growing interest in these. Specifically, we recently
launched our new Gridstack Pro 5000 product, our larger, and more
energy-dense 5 MWh enclosure. Furthermore, discussions with
potential customers for our domestic content offering are
progressing and to that end, we recently signed our first
contract."
Mr. Nebreda continued, "I am pleased to report
that we are making substantial progress on each of our strategic
objectives detailed below."
Strategic Objectives
- Deliver
Profitable Growth
- The Company
generated approximately $64.2 million of Gross Profit and
approximately $65.9 million of Adjusted Gross Profit4 in the
current quarter, representing 108% and 105% year-over-year
increase, respectively. Furthermore, this quarter was the third
consecutive quarter that the Company generated double-digit gross
profit and adjusted gross profit margins.
- For the first half
of fiscal year 2024, we achieved record net cash provided by
operating activities of approximately $90.2 million, compared to
approximately negative $163.4 million in the same period last year,
and record free cash flow4 of approximately $87.8 million compared
to approximately negative $164.5 million in the same period last
year.
- Total Cash5 as of
March 31, 2024 of $541.5 million increased by approximately $65
million from December 31, 2023, making this the fourth consecutive
quarter in which Total Cash has increased.
- Develop
Products and Solutions That Our Customers Need
- During the quarter,
we began offering Gridstack Pro 5000, our larger and more dense 5
MWh, 20 foot enclosure, thus allowing for energy dense solutions at
project sites, optimizing land usage, improving overall efficiency,
and lowering cost.
- Signed our first
domestic content contract that will benefit from incremental
incentives under the Inflation Reduction Act of 2022 (the
"IRA").
- Convert Our
Supply Chain into a Competitive Advantage
- Currently on track
for start of U.S. battery module production in 2024, which is
expected to enable our products to meet the criteria for domestic
content incentives under the IRA. Fluence is one of the first
suppliers capable of providing these products and we continue to
see tremendous interest from customers for U.S. domestic
content.
- Use Fluence
Digital as a Competitive Differentiator and Margin Driver
- Digital backlog
increased approximately 75% when compared to the same quarter last
year.
- Work
Better
- In April 2024,
Fluence released its second annual sustainability report,
building upon the sustainability disclosures from our inaugural
report published in April 2023 and providing updates on Fluence’s
sustainability strategy.
Fiscal Year 2024 Guidance
The Company is reaffirming its fiscal year 2024
total revenue and Adjusted EBITDA6 guidance ranges of $2.7 billion
to $3.3 billion and $50 million to $80 million, respectively.
Approximately 90% of the midpoint of the fiscal year 2024 revenue
guidance is covered by the Company's current backlog plus revenue
recognized year to date. In addition, the Company is reaffirming
its fiscal year 2024 annual recurring revenue ("ARR") guidance of
approximately $80 million.
"We remain committed to delivering attractive
revenue growth, while improving margins and operating cash flow. We
are also laser focused on improving our cost structure. This
commitment is reflected in our strong financial results for the
first half of this year, including approximately $88 million of
free cash flow7 generation," said Ahmed Pasha, Fluence's Chief
Financial Officer. "Our $16 billion development pipeline positions
us well to deliver attractive returns to our shareholders in 2025
and beyond."
The foregoing Fiscal Year 2024 Guidance
statement represents management's current best estimate as of the
date of this release. Actual results may differ materially
depending on a number of factors. Investors are urged to read the
Cautionary Note Regarding Forward-Looking Statements included in
this release. Management does not assume any obligation to update
these estimates.
Share Count
The shares of the Company’s common stock as of
March 31, 2024 are presented below:
|
Common Shares |
Class B-1 common stock held by AES Grid Stability, LLC |
51,499,195 |
Class A common stock held by Siemens AG |
39,738,064 |
Class A common stock held by SPT Invest Management, Sarl |
11,761,131 |
Class A common stock held by Qatar Holding LLC |
14,668,275 |
Class A common stock held by public |
61,220,068 |
Total Class A and Class B-1 common stock outstanding |
178,886,733 |
Conference Call Information
The Company will conduct a teleconference
starting at 8:30 a.m. EDT on Thursday, May 9th, 2024, to discuss
the second fiscal quarter results. To participate, analysts are
required to register by clicking Fluence Energy Q2 Earnings Call
Registration Link. Once registered, analysts will be issued a
unique PIN number and dial-in number. Analysts are encouraged to
register at least 15 minutes before the scheduled start time.
General audience participants, and non-analysts are
encouraged to join the teleconference in a listen-only mode at:
Fluence Energy Listen - Only Webcast, or on www.fluenceenergy.com
by selecting Investors, News & Events, and Events &
Presentations. Supplemental materials that may be referenced during
the teleconference will be available at: www.fluenceenergy.com, by
selecting Investors, News & Events, and Events &
Presentations.
A replay of the conference call will be available
after 1:00 p.m. EDT on Thursday, May 9th, 2024. The replay will be
available on the Company’s website at www.fluenceenergy.com by
selecting Investors, News & Events, and Events &
Presentations.
Non-GAAP Financial Measures
We present our operating results in accordance
with accounting principles generally accepted in the U.S. (“GAAP”).
We believe certain financial measures, such as Adjusted EBITDA,
Adjusted Gross Profit, Adjusted Gross Profit Margin, and Free Cash
Flow, which are non-GAAP measures, provide users of our financial
statements with supplemental information that may be useful in
evaluating our operating performance. We believe that such non-GAAP
measures, when read in conjunction with our operating results
presented under GAAP, can be used to better assess our performance
from period to period and relative to performance of other
companies in our industry, without regard to financing methods,
historical cost basis or capital structure. Such non-GAAP measures
should be considered as a supplement to, and not as a substitute
for, financial measures prepared in accordance with GAAP. These
measures have limitations as analytical tools, including that other
companies, including companies in our industry, may calculate these
measures differently, reducing their usefulness as comparative
measures.
Adjusted EBITDA is calculated from the
consolidated statements of operations using net income (loss)
adjusted for (i) interest income, net, (ii) income taxes, (iii)
depreciation and amortization, (iv) stock-based compensation, (v)
certain other income or expenses and (vi) non-recurring income or
expenses. Adjusted EBITDA may in the future also be adjusted for
amounts impacting net income related to the Tax Receivable
Agreement liability.
Adjusted Gross Profit is calculated using gross
profit, adjusted to exclude (i) stock-based compensation expenses,
(ii) amortization (iii) certain other income or expenses and (iv)
non-recurring income or expenses. Adjusted Gross Profit Margin is
calculated using Adjusted Gross Profit divided by total
revenue.
Free Cash Flow is calculated from the
consolidated statements of cash flows and is defined as net cash
provided by (used in) operating activities, less purchase of
property and equipment made in the period. We expect our Free Cash
Flow to fluctuate in future periods as we invest in our business to
support our plans for growth. Limitations on the use of Free Cash
Flow include (i) it should not be inferred that the entire Free
Cash Flow amount is available for discretionary expenditures (for
example, cash is still required to satisfy other working capital
needs, including short-term investment policy, restricted cash, and
intangible assets); (ii) Free Cash Flow has limitations as an
analytical tool, and it should not be considered in isolation or as
a substitute for analysis of other GAAP financial measures, such as
net cash provided by (used in) operating activities; and (iii) this
metric does not reflect our future contractual commitments.
Please refer to the reconciliations of the
non-GAAP financial measures to their most directly comparable GAAP
financial measures included in tables contained at the end of this
release.
The Company is not able to provide a
quantitative reconciliation of Adjusted EBITDA guidance for fiscal
year 2024 to the nearest respective GAAP measure within this press
release because of the uncertainty around certain items that may
impact Adjusted EBITDA, including, but not limited to, stock
compensation expenses, which are not within our control or cannot
be reasonably predicted without unreasonable effort.
About Fluence
Fluence Energy, Inc. (Nasdaq: FLNC) is a global
market leader in energy storage products and services, and
optimization software for renewables and storage. With a presence
in 47 markets globally, Fluence provides an ecosystem of offerings
to drive the clean energy transition, including modular, scalable
energy storage products, comprehensive service offerings, and
AI-enabled optimization software for managing and optimizing
renewables and storage from any provider. The Company is
transforming the way we power our world by helping customers create
more resilient and sustainable electric grids.
For more information, visit our website, or follow
us on LinkedIn or X (formerly Twitter). To stay up to date on the
latest industry insights, sign up for Fluence's Full Potential
Blog.
Cautionary Note Regarding Forward-Looking
Statements
The statements contained in this press release
and statements that are made on our earnings call that are not
historical facts are forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933, as amended, Section
21E of the Securities Exchange Act of 1934, as amended, and the
Private Securities Litigation Reform Act of 1995. These
forward-looking statements include, without limitation, statements
set forth above under “Fiscal Year 2024 Guidance,” "Strategic
Objectives", and other statements regarding the Company's future
financial and operational performance, including, but not limited
to, expectations relating to Adjusted EBITDA, gross profit margin,
adjusted gross profit margin, operating margins, and operating
expenses, excluding stock compensation expenses for future fiscal
quarters and full fiscal year 2024, growth, including anticipated
revenue growth through fiscal year 2025, liquidity and access to
capital, and cash flows, expectations relating to backlog,
pipeline, and contracted backlog, the implementation and
anticipated benefits of the Company's enumerated strategic
objectives, anticipated demand for the Company's energy storage
solutions, services and digital applications, including domestic
content products, expected impact and benefits from the IRA on the
Company and its customers, anticipated timeline of U.S. battery
module production, new products and product innovation, including
Gridstack Pro 5000 product and its anticipated operational
performance, relationships with new and existing customers and
suppliers, market and industry outlook and related opportunities
for the Company, future results of operations, future revenue
recognition and estimated revenues, future capital expenditures and
debt service obligations, and projected costs, prospects, beliefs,
assumptions, plans, and objectives of management for future
operations. Such statements can be identified by the fact that they
do not relate strictly to historical or current facts. When used in
this press release, words such as “may,” “possible,” “will,”
“should,” “expects,” “plans,” “anticipates,” “could,” “intends,”
“targets,” “projects,” “contemplates,” “believes,” “estimates,”
“predicts,” “potential” or “continue” or the negative of these
terms or other similar expressions and variations thereof and
similar words and expressions are intended to identify such
forward-looking statements, but the absence of these words does not
mean that a statement is not forward-looking.
The forward-looking statements contained in this
press release are based on our current expectations and beliefs
concerning future developments, as well as a number of assumptions
concerning future events, and their potential effects on our
business. These forward-looking statements are not guarantees of
performance, and there can be no assurance that future developments
affecting our business will be those that we have anticipated.
These forward-looking statements involve a number of risks,
uncertainties (some of which are beyond our 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, which include, but are not limited to,
our limited operating and revenue history as an independent entity
and the nascent clean energy industry; our history of net losses,
we anticipate increasing expenses in the future, and our ability to
maintain prolonged profitability; delays, disruptions, and quality
control problems in our manufacturing operations; difficulties in
establishing mass manufacturing capacity and estimating potential
cost savings and efficiencies from anticipated improvements to our
manufacturing capabilities; dependence on our existing suppliers
and supply chain competition; supplier concentration and capacity;
interruption of flow and/or availability of components and
materials from international vendors; significant changes in the
cost of raw materials and product components; vendor non-compliance
with ethical business practices and applicable laws and
regulations; loss of significant customers or their inability to
perform under their contracts; competition for our offerings and
our ability to attract and retain customers; ability to effectively
manage our recent and future growth and expansion of our business
and operations; ability to maintain and enhance our reputation and
brand recognition; success of our relationships with third parties;
ability to attract and retain highly qualified personnel; risk
related to the construction, utility interconnection, commissioning
and installation of our energy storage products, cost overruns, and
delays; risks related to defects, errors, vulnerabilities and/or
bugs in our products and technology; compromises, interruptions, or
shutdowns of our systems; lengthy sales and installation cycle for
our products and services and ability to timely close sales;
amounts included in our pipeline and contracted backlog may not
result in actual revenue or translate into profits; events and
incidents relating to storage, delivery, installation, operation,
maintenance and shutdowns of our products; risks relating to
whether renewable energy technologies are suitable for widespread
adoption or if sufficient demand for our hardware and
software-enabled services does not develop or takes longer to
develop than we anticipate; estimates on size of our total
addressable market; barriers arising from electric utility industry
policies and regulations; cost of electricity available from
alternative sources; risk relating to interest rates or a reduction
in the availability of tax equity or project debt capital in the
global financial markets and corresponding effects on customers’
ability to finance energy storage systems and demand for our
products; potential changes in tax laws or regulations, including
relating to incentives under the IRA; reduction, elimination, or
expiration of government incentives or regulations regarding
renewable energy; decline in public acceptance of renewable energy,
or delay, prevent, or increase in the cost of customer projects;
restrictions set forth in our ABL Credit Agreement or other debt
agreements we may enter into; uncertain future capital needs and
potential need to raise additional funds in the future; ability to
obtain, maintain and enforce proper protection for our intellectual
property, including our technology; risks related to us being a
“controlled company” within the meaning of the NASDAQ rules; our
relationship with our founders; and other factors set forth under
Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the
fiscal year ended September 30, 2023, filed with the Securities and
Exchange Commission (“SEC”) on November 29, 2023, as updated by our
Quarterly Reports on Form 10-Q, and in other filings we make with
the SEC from time to time. New risks and uncertainties emerge from
time to time and it is not possible for us to predict all such risk
factors, nor can we assess the effect of all such risk factors on
our business or the extent to which any factor or combination of
factors may cause actual results to differ materially from those
contained in any forward-looking statements. Should one or more of
these risks or uncertainties materialize, or should any of the
assumptions prove incorrect, actual results may vary in material
respects from those projected in these forward-looking statements.
You are cautioned not to place undue reliance on any
forward-looking statements made in this press release. Each
forward-looking statement speaks only as of the date of the
particular statement, and we undertake no obligation to publicly
update or revise any forward-looking statements to reflect events
or circumstances that occur, or which we become aware of, after the
date hereof, except as otherwise may be required by law.
|
FLUENCE ENERGY, INC.CONDENSED CONSOLIDATED
BALANCE SHEETS(U.S. Dollars in Thousands, except
share and per share amounts) |
|
|
Unaudited |
|
|
|
March 31,2024 |
|
September 30,2023 |
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
411,798 |
|
|
$ |
345,896 |
|
Restricted cash |
|
106,605 |
|
|
|
106,835 |
|
Trade receivables, net |
|
86,798 |
|
|
|
103,397 |
|
Unbilled receivables |
|
132,955 |
|
|
|
192,064 |
|
Receivables from related parties |
|
63,639 |
|
|
|
58,514 |
|
Advances to suppliers |
|
110,759 |
|
|
|
107,947 |
|
Inventory, net |
|
309,059 |
|
|
|
224,903 |
|
Current portion of notes receivable - pledged as collateral |
|
55,251 |
|
|
|
24,330 |
|
Other current assets |
|
45,867 |
|
|
|
31,074 |
|
Total current assets |
|
1,322,731 |
|
|
|
1,194,960 |
|
Non-current assets: |
|
|
|
Property and equipment, net |
$ |
13,512 |
|
|
$ |
12,771 |
|
Intangible assets, net |
|
57,172 |
|
|
|
55,752 |
|
Goodwill |
|
26,266 |
|
|
|
26,020 |
|
Deferred income tax asset |
|
85 |
|
|
|
86 |
|
Note receivable - pledged as collateral |
|
— |
|
|
|
30,921 |
|
Other non-current assets |
|
110,077 |
|
|
|
31,639 |
|
Total non-current assets |
|
207,112 |
|
|
|
157,189 |
|
Total assets |
$ |
1,529,843 |
|
|
$ |
1,352,149 |
|
Liabilities and Stockholders’ Equity |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
244,191 |
|
|
$ |
62,899 |
|
Deferred revenue |
|
398,639 |
|
|
|
273,164 |
|
Deferred revenue and payables with related parties |
|
59,046 |
|
|
|
116,488 |
|
Current portion of borrowings against note receivable - pledged as
collateral |
|
52,667 |
|
|
|
22,539 |
|
Personnel related liabilities |
|
25,784 |
|
|
|
52,174 |
|
Accruals and provisions |
|
159,613 |
|
|
|
172,223 |
|
Taxes payable |
|
22,023 |
|
|
|
29,465 |
|
Other current liabilities |
|
11,150 |
|
|
|
16,711 |
|
Total current liabilities |
|
973,113 |
|
|
|
745,663 |
|
Non-current liabilities: |
|
|
|
Deferred income tax liability |
$ |
5,159 |
|
|
$ |
4,794 |
|
Borrowings against note receivable - pledged as collateral |
|
— |
|
|
|
28,024 |
|
Other non-current liabilities |
|
19,835 |
|
|
|
17,338 |
|
Total non-current liabilities |
|
24,994 |
|
|
|
50,156 |
|
Total liabilities |
|
998,107 |
|
|
|
795,819 |
|
Stockholders’ Equity: |
|
|
|
Preferred stock, $0.00001 per share, 10,000,000 shares authorized;
no shares issued and outstanding as of March 31, 2024 and
September 30, 2023 |
|
— |
|
|
|
— |
|
Class A common stock, $0.00001 par value per share, 1,200,000,000
shares authorized; 128,081,961 shares issued and 127,387,538 shares
outstanding as of March 31, 2024; 119,593,409 shares issued
and 118,903,435 shares outstanding as of September 30, 2023,
respectively |
|
1 |
|
|
|
1 |
|
Class B-1 common stock, $0.00001 par value per share, 200,000,000
shares authorized; 51,499,195 shares issued and outstanding as of
March 31, 2024; 58,586,695 shares issued and outstanding as of
September 30, 2023, respectively |
|
— |
|
|
|
— |
|
Class B-2 common stock, $0.00001 par value per share, 200,000,000
shares authorized; 0 shares issued and outstanding as of
March 31, 2024 and September 30, 2023 |
|
— |
|
|
|
— |
|
Treasury stock, at cost |
|
(7,885 |
) |
|
|
(7,797 |
) |
Additional paid-in capital |
|
617,793 |
|
|
|
581,104 |
|
Accumulated other comprehensive income |
|
3,241 |
|
|
|
3,202 |
|
Accumulated deficit |
|
(200,076 |
) |
|
|
(174,164 |
) |
Total stockholders’ equity attributable to Fluence Energy,
Inc. |
|
413,074 |
|
|
|
402,346 |
|
Non-Controlling interests |
|
118,662 |
|
|
|
153,984 |
|
Total stockholders’ equity |
|
531,736 |
|
|
|
556,330 |
|
Total liabilities and stockholders’ equity |
$ |
1,529,843 |
|
|
$ |
1,352,149 |
|
|
FLUENCE ENERGY, INC.CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS ANDCOMPREHENSIVE LOSS
(UNAUDITED)(U.S. Dollars in Thousands, except
share and per share amounts) |
|
|
Three Months Ended March 31, |
Six Months Ended March 31, |
|
|
2024 |
|
|
|
2023 |
|
|
2024 |
|
|
|
2023 |
|
Revenue |
$ |
280,652 |
|
|
$ |
405,110 |
|
$ |
528,034 |
|
|
$ |
614,564 |
|
Revenue from related parties |
|
342,489 |
|
|
|
293,076 |
|
|
459,063 |
|
|
|
394,082 |
|
Total revenue |
|
623,141 |
|
|
|
698,186 |
|
|
987,097 |
|
|
|
1,008,646 |
|
Cost of goods and services |
|
558,961 |
|
|
|
667,373 |
|
|
886,531 |
|
|
|
965,793 |
|
Gross profit |
|
64,180 |
|
|
|
30,813 |
|
|
100,566 |
|
|
|
42,853 |
|
Operating expenses: |
|
|
|
|
|
|
Research and development |
|
17,427 |
|
|
|
22,551 |
|
|
32,867 |
|
|
|
41,713 |
|
Sales and marketing |
|
15,792 |
|
|
|
10,401 |
|
|
26,498 |
|
|
|
19,193 |
|
General and administrative |
|
44,067 |
|
|
|
31,778 |
|
|
81,795 |
|
|
|
63,045 |
|
Depreciation and amortization |
|
2,482 |
|
|
|
2,669 |
|
|
4,965 |
|
|
|
5,093 |
|
Interest income, net |
|
(1,261 |
) |
|
|
(2,075 |
) |
|
(3,254 |
) |
|
|
(2,731 |
) |
Other expense (income), net |
|
215 |
|
|
|
3,012 |
|
|
(972 |
) |
|
|
(8,130 |
) |
Loss before income taxes |
|
(14,542 |
) |
|
|
(37,523 |
) |
|
(41,333 |
) |
|
|
(75,330 |
) |
Income tax benefit |
|
(1,666 |
) |
|
|
(126 |
) |
|
(2,901 |
) |
|
|
(740 |
) |
Net loss |
$ |
(12,876 |
) |
|
$ |
(37,397 |
) |
$ |
(38,432 |
) |
|
$ |
(74,590 |
) |
Net loss attributable to non-controlling interest |
$ |
(3,707 |
) |
|
$ |
(12,542 |
) |
$ |
(12,520 |
) |
|
$ |
(25,093 |
) |
Net loss attributable to Fluence Energy, Inc. |
$ |
(9,169 |
) |
|
$ |
(24,855 |
) |
$ |
(25,912 |
) |
|
$ |
(49,497 |
) |
|
|
|
|
|
|
|
Weighted average number of Class A common shares outstanding |
|
|
|
|
|
|
Basic and diluted |
|
126,843,301 |
|
|
|
116,266,838 |
|
|
123,962,636 |
|
|
|
115,825,339 |
|
Loss per share of Class A common stock |
|
|
|
|
|
|
Basic and diluted |
$ |
(0.07 |
) |
|
$ |
(0.21 |
) |
$ |
(0.21 |
) |
|
$ |
(0.43 |
) |
|
|
|
|
|
|
|
Foreign currency translation
(loss) gain, net of income tax expense (benefit) of $(0.2) million
in the three months ended March 31, 2024, $0.1 million in the six
months ended March 31, 2024, and $0.1 million in the three months
ended March 31, 2023, and $0.4 million six months ended March 31,
2023 |
|
(1,603 |
) |
|
|
(1,469 |
) |
|
32 |
|
|
|
(5,054 |
) |
Total other comprehensive (loss) income |
$ |
(1,603 |
) |
|
$ |
(1,469 |
) |
$ |
32 |
|
|
$ |
(5,054 |
) |
Total comprehensive loss |
$ |
(14,479 |
) |
|
$ |
(38,866 |
) |
$ |
(38,400 |
) |
|
$ |
(79,644 |
) |
Comprehensive loss attributable to non-controlling interest |
$ |
(4,170 |
) |
|
$ |
(13,036 |
) |
$ |
(12,527 |
) |
|
$ |
(26,798 |
) |
Total comprehensive loss attributable to Fluence Energy, Inc. |
$ |
(10,309 |
) |
|
$ |
(25,830 |
) |
$ |
(25,873 |
) |
|
$ |
(52,846 |
) |
|
|
|
|
|
|
|
FLUENCE ENERGY, INC.CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (UNAUDITED)(U.S. Dollars
in Thousands) |
|
|
Six Months Ended March 31, |
|
|
2024 |
|
|
|
2023 |
|
Operating activities |
|
|
|
Net loss |
$ |
(38,432 |
) |
|
$ |
(74,590 |
) |
Adjustments to reconcile net
loss to net cash provided by (used in) operating activities: |
|
|
|
Depreciation and amortization |
|
5,971 |
|
|
|
5,093 |
|
Amortization of debt issuance costs |
|
1,037 |
|
|
|
457 |
|
Inventory provision (benefit) |
|
13,970 |
|
|
|
(422 |
) |
Stock-based compensation expense |
|
12,266 |
|
|
|
15,763 |
|
Deferred income taxes |
|
295 |
|
|
|
(1,276 |
) |
Changes in operating assets and liabilities: |
|
|
|
Trade receivables, net |
|
9,753 |
|
|
|
(244,433 |
) |
Unbilled receivables |
|
59,869 |
|
|
|
(8,756 |
) |
Receivables from related parties |
|
1,941 |
|
|
|
23,683 |
|
Advances to suppliers |
|
(36,504 |
) |
|
|
(3,793 |
) |
Inventory |
|
(96,382 |
) |
|
|
(103,464 |
) |
Other current assets |
|
(47,890 |
) |
|
|
3,148 |
|
Other non-current assets |
|
14,337 |
|
|
|
(292 |
) |
Accounts payable |
|
181,142 |
|
|
|
93,447 |
|
Deferred revenue and payables with related parties |
|
(57,469 |
) |
|
|
(112,586 |
) |
Deferred revenue |
|
114,568 |
|
|
|
300,007 |
|
Current accruals and provisions |
|
(12,861 |
) |
|
|
(77,681 |
) |
Taxes payable |
|
(9,646 |
) |
|
|
3,702 |
|
Other current liabilities |
|
1,643 |
|
|
|
10,511 |
|
Other non-current liabilities |
|
(27,360 |
) |
|
|
8,071 |
|
Net cash provided by (used in) operating
activities |
|
90,248 |
|
|
|
(163,411 |
) |
Investing activities |
|
|
|
Proceeds from maturities of short-term investments |
|
— |
|
|
|
41,603 |
|
Payments for purchase of investment in joint venture |
|
— |
|
|
|
(5,013 |
) |
Capital expenditures on software |
|
(5,018 |
) |
|
|
— |
|
Purchase of property and equipment |
|
(2,473 |
) |
|
|
(1,087 |
) |
Net cash (used in) provided by investing
activities |
|
(7,491 |
) |
|
|
35,503 |
|
Financing activities |
|
|
|
Class A common stock withheld related to settlement of employee
taxes for stock-based compensation awards |
|
(88 |
) |
|
|
(288 |
) |
Debt Issuance Costs |
|
(4,299 |
) |
|
|
— |
|
Payments for acquisitions |
|
(3,892 |
) |
|
|
— |
|
Proceeds from exercise of stock options |
|
1,648 |
|
|
|
2,956 |
|
Proceeds from borrowing against note receivable - pledged as
collateral |
|
— |
|
|
|
21,142 |
|
Net cash (used in) provided by financing
activities |
|
(6,631 |
) |
|
|
23,810 |
|
Effect of exchange rate changes on cash and cash equivalents |
|
2,625 |
|
|
|
(13,042 |
) |
Net increase (decrease) in cash, cash equivalents, and restricted
cash |
|
78,751 |
|
|
|
(117,140 |
) |
Cash, cash equivalents, and restricted cash as of the beginning of
the period |
|
462,731 |
|
|
|
429,721 |
|
Cash, cash equivalents, and restricted cash as of the end of the
period |
$ |
541,482 |
|
|
$ |
312,581 |
|
Supplemental Cash Flows Information |
|
|
|
Interest paid |
$ |
1,098 |
|
|
$ |
511 |
|
Cash paid for income taxes |
$ |
1,309 |
|
|
$ |
585 |
|
Reclassifications
Certain prior period amounts have been
reclassified to conform to the current period presentation.
Interest income of $3.2 million and $4.7 million for the three and
six months ended March 31, 2023, was reclassified from other
expense (income), net to interest income, net on the condensed
consolidated statement of operations and comprehensive loss. The
reclassification had no impact on loss before income taxes or net
loss for any period presented. Provision on loss contracts, net of
$2.0 million for the six months ended March 31, 2023, was
reclassified to current accruals and provisions on the condensed
consolidated statement of cash flows. The reclassification had no
impact on cash provided by (used in) operations for the period
presented.
FLUENCE ENERGY, INC. KEY
OPERATING METRICS (UNAUDITED)
The following tables present our key operating
metrics as of March 31, 2024 and September 30, 2023. The
tables below present the metrics in either Gigawatts (GW) or
Gigawatt hours (GWh). Our key operating metrics focus on project
milestones to measure our performance and designate each project as
either “deployed”, “assets under management”, “contracted backlog”,
or “pipeline”.
|
|
March 31, 2024 |
|
September 30, 2023 |
|
Change |
|
Change % |
Energy Storage Products and Solutions |
|
|
|
|
|
|
|
|
Deployed (GW) |
|
4.1 |
|
3.0 |
|
1.1 |
|
37% |
Deployed (GWh) |
|
10.3 |
|
7.2 |
|
3.1 |
|
43% |
Contracted Backlog (GW) |
|
5.3 |
|
4.6 |
|
0.7 |
|
15% |
Pipeline (GW) |
|
18.4 |
|
12.2 |
|
6.2 |
|
51% |
Pipeline (GWh) |
|
56.2 |
|
34.2 |
|
22.0 |
|
64% |
(amounts in GW) |
|
March 31, 2024 |
|
September 30, 2023 |
|
Change |
|
Change % |
Service Contracts |
|
|
|
|
|
|
|
|
Assets under Management |
|
3.3 |
|
2.8 |
|
0.5 |
|
18% |
Contracted Backlog |
|
3.6 |
|
2.9 |
|
0.7 |
|
24% |
Pipeline |
|
20.4 |
|
13.7 |
|
6.7 |
|
49% |
(amounts in GW) |
|
March 31, 2024 |
|
September 30, 2023 |
|
Change |
|
Change % |
Digital Contracts |
|
|
|
|
|
|
|
|
Assets under Management |
|
17.2 |
|
15.5 |
|
1.7 |
|
11% |
Contracted Backlog |
|
6.9 |
|
6.8 |
|
0.1 |
|
1% |
Pipeline |
|
35.6 |
|
24.4 |
|
11.2 |
|
46% |
The following table presents our order intake
for the three and six months ended March 31, 2024 and 2023. The
table is presented in Gigawatts (GW):
(amounts in GW) |
|
Three MonthsEnded March 31, |
|
|
|
|
|
Six MonthsEnded March 31, |
|
|
|
|
|
2024 |
|
2023 |
|
Change |
|
Change % |
|
2024 |
|
2023 |
|
Change |
|
Change % |
Energy Storage Products and Solutions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contracted |
|
0.9 |
|
0.6 |
|
0.3 |
|
50% |
|
2.1 |
|
1.2 |
|
0.9 |
|
75% |
Service Contracts |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contracted |
|
0.5 |
|
1.0 |
|
(0.5) |
|
(50)% |
|
1.6 |
|
1.1 |
|
0.5 |
|
45% |
Digital Contracts |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contracted |
|
3.1 |
|
2.7 |
|
0.4 |
|
15% |
|
3.5 |
|
3.5 |
|
— |
|
—% |
Deployed
Deployed represents cumulative energy storage
products and solutions that have achieved substantial completion
and are not decommissioned. Deployed is monitored by management to
measure our performance towards achieving project milestones.
Assets Under Management
Assets under management for service contracts
represents our long-term service contracts with customers
associated with our completed energy storage system products and
solutions. We start providing maintenance, monitoring, or other
operational services after the storage product projects are
completed. In some cases, services may be commenced for energy
storage solutions prior to achievement of substantial completion.
This is not limited to energy storage solutions delivered by
Fluence. Assets under management for digital software represents
contracts signed and active (post go live). Assets under management
serves as an indicator of expected revenue from our customers and
assists management in forecasting our expected financial
performance.
Contracted Backlog
For our energy storage products and solutions
contracts, contracted backlog includes signed customer orders or
contracts under execution prior to when substantial completion is
achieved. For service contracts, contracted backlog includes signed
service agreements associated with our storage product projects
that have not been completed and the associated service has not
started. For digital applications contracts, contracted backlog
includes signed agreements where the associated subscription has
not started.
We cannot guarantee that our contracted backlog
will result in actual revenue in the originally anticipated period
or at all. Contracted backlog may not generate margins equal to our
historical operating results. We have only recently begun to track
our contracted backlog on a consistent basis as performance
measures, and as a result, we do not have significant experience in
determining the level of realization that we will achieve on these
contracts. Our customers may experience project delays or cancel
orders as a result of external market factors and economic or other
factors beyond our control. If our contracted backlog fails to
result in revenue as anticipated or in a timely manner, we could
experience a reduction in revenue, profitability, and
liquidity.
Contracted/Order Intake
Contracted, which we use interchangeably with
“Order Intake”, represents new energy storage product and solutions
contracts, new service contracts and new digital contracts signed
during each period presented. We define “Contracted” as a firm and
binding purchase order, letter of award, change order or other
signed contract (in each case an “Order”) from the customer that is
received and accepted by Fluence. Our order intake is intended to
convey the dollar amount and gigawatts (operating measure)
contracted in the period presented. We believe that order intake
provides useful information to investors and management because the
order intake provides visibility into future revenue and enables
evaluation of the effectiveness of the Company’s sales activity and
the attractiveness of its offerings in the market.
Pipeline
Pipeline represents our uncontracted, potential
revenue from energy storage products and solutions, service, and
digital software contracts, which have a reasonable likelihood of
contract execution within 24 months. Pipeline is an internal
management metric that we construct from market information
reported by our global sales force. Pipeline is monitored by
management to understand the anticipated growth of our Company and
our estimated future revenue related to customer contracts for our
battery-based energy storage products and solutions, services and
digital software.
We cannot guarantee that our pipeline will
result in actual revenue in the originally anticipated period or at
all. Pipeline may not generate margins equal to our historical
operating results. We have only recently begun to track our
pipeline on a consistent basis as performance measures, and as a
result, we do not have significant experience in determining the
level of realization that we will achieve on these contracts. Our
customers may experience project delays or cancel orders as a
result of external market factors and economic or other factors
beyond our control. If our pipeline fail to result in revenue as
anticipated or in a timely manner, we could experience a reduction
in revenue, profitability, and liquidity.
Annual Recurring Revenue
ARR represents the net annualized contracted
value including software subscriptions including initial trial,
licensing, long term service agreements, and extended warranty
agreements as of the reporting period. ARR excludes one-time fees,
revenue share or other revenue that is non-recurring and variable.
The Company believes ARR is an important operating metric as it
provides visibility to future revenue. It is important to
management to increase this visibility as we continue to expand.
ARR is not a forecast of future revenue and should be viewed
independently of revenue and deferred revenue as ARR is an
operating metric and is not intended to replace these items.
FLUENCE ENERGY, INC.
RECONCILIATION OF GAAP TO NON-GAAP
MEASURES (UNAUDITED)
The following tables present non-GAAP measures
for the periods indicated.
($ in thousands) |
Three MonthsEnded March 31, |
|
Change |
|
Change % |
|
Six MonthsEnded March 31, |
|
Change |
|
Change % |
|
2024 |
|
|
|
2023 |
|
|
|
|
2024 |
|
|
|
2023 |
|
|
Net loss |
$ |
(12,876 |
) |
|
$ |
(37,397 |
) |
|
$ |
24,521 |
|
|
66 |
% |
|
$ |
(38,432 |
) |
|
$ |
(74,590 |
) |
|
$ |
36,158 |
|
|
48 |
% |
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income, net(a) |
|
(1,261 |
) |
|
|
(2,075 |
) |
|
|
814 |
|
|
(39)% |
|
|
(3,254 |
) |
|
|
(2,731 |
) |
|
|
(523 |
) |
|
19 |
% |
Income tax benefit |
|
(1,666 |
) |
|
|
(126 |
) |
|
|
(1,540 |
) |
|
1222 |
% |
|
|
(2,901 |
) |
|
|
(740 |
) |
|
|
(2,161 |
) |
|
292 |
% |
Depreciation and amortization |
|
3,088 |
|
|
|
2,669 |
|
|
|
419 |
|
|
16 |
% |
|
|
5,971 |
|
|
|
5,093 |
|
|
|
878 |
|
|
17 |
% |
Stock-based compensation(b) |
|
6,636 |
|
|
|
7,263 |
|
|
|
(627 |
) |
|
(9)% |
|
|
12,266 |
|
|
|
15,763 |
|
|
|
(3,497 |
) |
|
(22)% |
Other expenses(c) (d) |
|
— |
|
|
|
1,967 |
|
|
|
(1,967 |
) |
|
(100)% |
|
|
1,984 |
|
|
|
3,474 |
|
|
|
(1,490 |
) |
|
(43)% |
Adjusted EBITDA |
$ |
(6,079 |
) |
|
$ |
(27,699 |
) |
|
$ |
21,620 |
|
|
78 |
% |
|
$ |
(24,366 |
) |
|
$ |
(53,731 |
) |
|
$ |
29,365 |
|
|
55 |
% |
(a) Interest income, net for the three and six
months ended March 31, 2023 have been recast to conform with
current period presentation as described above after the unaudited
condensed consolidated statements of cash flows table. (b) Includes
incentive awards that will be settled in shares and incentive
awards that will be settled in cash.(c) Amount for the three months
ended March 31, 2023 included $2.0 million in severance costs
and consulting fees related to the restructuring plan.Amount for
the six months ended March 31, 2024 includes approximately $1.2
million of costs related to the termination of the Company's
revolving credit agreement and $0.8 million in costs related to the
secondary offering by selling shareholders that closed in December
2023. Amount for the six months ended March 31, 2023 included
$3.5 million in severance costs and consulting fees related to
the restructuring plan. (d) Costs related to the COVID-19 pandemic,
the cargo loss incident, external expenses related to the ongoing
remediation of our material weakness, and legal fees related to the
2021 and 2022 overheating events at customer facilities which the
Company had historically excluded from Adjusted EBITDA, are no
longer excluded. Adjusted EBITDA results for the three and six
months ended March 31, 2023 have been recast for comparative
purposes.
($ in thousands) |
|
Three MonthsEnded March 31, |
|
Change |
|
Change % |
|
Six MonthsEnded March 31, |
|
Change |
|
Change % |
|
|
2024 |
|
|
|
2023 |
|
|
|
|
2024 |
|
|
|
2023 |
|
|
Total revenue |
|
$ |
623,141 |
|
|
$ |
698,186 |
|
|
$ |
(75,045 |
) |
|
(11)% |
|
$ |
987,097 |
|
|
$ |
1,008,646 |
|
|
$ |
(21,549 |
) |
|
(2)% |
Cost of goods and services |
|
|
558,961 |
|
|
|
667,373 |
|
|
|
(108,412 |
) |
|
(16)% |
|
|
886,531 |
|
|
|
965,793 |
|
|
|
(79,262 |
) |
|
(8)% |
Gross profit |
|
|
64,180 |
|
|
|
30,813 |
|
|
|
33,367 |
|
|
108 |
% |
|
|
100,566 |
|
|
|
42,853 |
|
|
|
57,713 |
|
|
135 |
% |
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation (a) |
|
|
1,121 |
|
|
|
1,256 |
|
|
|
(135 |
) |
|
(11)% |
|
|
2,380 |
|
|
|
2,156 |
|
|
|
224 |
|
|
10 |
% |
Amortization (b) |
|
|
606 |
|
|
|
— |
|
|
|
606 |
|
|
100 |
% |
|
|
1,006 |
|
|
|
— |
|
|
|
1,006 |
|
|
100 |
% |
Other expenses(c) (d) |
|
|
— |
|
|
|
139 |
|
|
|
(139 |
) |
|
(100)% |
|
|
— |
|
|
|
328 |
|
|
|
(328 |
) |
|
(100)% |
Adjusted Gross Profit |
|
$ |
65,907 |
|
|
$ |
32,208 |
|
|
$ |
33,699 |
|
|
105 |
% |
|
$ |
103,952 |
|
|
$ |
45,337 |
|
|
$ |
58,615 |
|
|
129 |
% |
Adjusted Gross Profit Margin % |
|
|
10.6 |
% |
|
|
4.6 |
% |
|
|
|
|
|
|
10.5 |
% |
|
|
4.5 |
% |
|
|
|
|
(a) Includes incentive awards that will be
settled in shares and incentive awards that will be settled in
cash.(b) Amount relates to amortization of capitalized software
included in cost of goods and services.(c) Amount for the three
months ended March 31, 2023 included $0.1 million in
severance costs related to the restructuring plan. Amount for the
six months ended March 31, 2023 included $0.3 million in
severance costs related the restructuring plan. (d) Costs related
to the COVID-19 pandemic, the cargo loss incident, and legal fees
related to the 2021 and 2022 overheating events at customer
facilities, which the Company had historically excluded from
Adjusted Gross Profit and Adjusted Gross Profit Margin, are no
longer excluded. Adjusted Gross Profit and Adjusted Gross Profit
Margin results for the three and six months ended March 31, 2023
have been recast for comparative purposes.
($ in thousands) |
|
Six Months Ended March 31, |
|
Change |
|
Change % |
|
|
2024 |
|
|
|
2023 |
|
|
Net cash provided by (used in) operating activities |
|
$ |
90,248 |
|
|
$ |
(163,411 |
) |
|
$ |
253,659 |
|
|
155 |
% |
Less: Purchase of property and equipment |
|
|
(2,473 |
) |
|
|
(1,087 |
) |
|
|
(1,386 |
) |
|
(128)% |
Free Cash Flow |
|
$ |
87,775 |
|
|
$ |
(164,498 |
) |
|
$ |
252,273 |
|
|
153 |
% |
________________________1 Non-GAAP Financial Metric. See the
section below titled “Non-GAAP Financial Measures” for more
information regarding the Company's use of non-GAAP financial
measures, as well as a reconciliation to the most directly
comparable financial measure stated in accordance with GAAP.2
Backlog represents the unrecognized revenue value of our
contractual commitments, which include deferred revenue and amounts
that will be billed and recognized as revenue in future periods.
The Company’s backlog may vary significantly each reporting period
based on the timing of major new contractual commitments and the
backlog may fluctuate with currency movements. In addition, under
certain circumstances, the Company’s customers have the right to
terminate contracts or defer the timing of its services and their
payments to the Company.3 Total Cash includes Cash and cash
equivalents + Restricted Cash. 4 Non-GAAP Financial Metric.
See the section below titled “Non-GAAP Financial Measures” for more
information regarding the Company's use of non-GAAP financial
measures, as well as a reconciliation to the most directly
comparable financial measure stated in accordance with GAAP.5 Total
Cash includes Cash and cash equivalents + Restricted Cash.6Non-GAAP
Financial Metric. See the section below titled “Non-GAAP Financial
Measures” for more information regarding the Company's use of
non-GAAP financial measures and a discussion of why we are unable
to reconcile Adjusted EBITDA guidance to its most directly
comparable GAAP financial measure.7 Non-GAAP Financial Metric. See
the section below titled “Non-GAAP Financial Measures” for more
information regarding the Company's use of non-GAAP financial
measures, as well as a reconciliation to the most directly
comparable financial measure stated in accordance with GAAP.
Analyst Contact
Lexington May, Vice President Finance & Investor Relations
+1 713-909-5629
Email: InvestorRelations@fluenceenergy.com
Media Contact
Shayla Ebsen, Director of Communication
+1 605-645-7486
Email: media.na@fluenceenergy.com
Fluence Energy (NASDAQ:FLNC)
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부터 5월(5) 2024 으로 6월(6) 2024
Fluence Energy (NASDAQ:FLNC)
과거 데이터 주식 차트
부터 6월(6) 2023 으로 6월(6) 2024