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 nine months ended June 30,
2024.
Financial Highlights for Third Fiscal
Quarter ended June 30, 2024
- Revenue of approximately $483.3
million, which represents a decrease of approximately 10% from the
same quarter last year, primarily driven by timing of product
deliveries.
- GAAP gross profit margin improved
to approximately 17.2%, compared to approximately 4.1% for the same
quarter last year, reflecting Company's continued focus on ongoing
profit improvement strategies.
- Adjusted gross profit margin1
improved to approximately 17.5%, compared to approximately 4.4% for
the same quarter last year.
- Net income of approximately $1.1
million, improved from a net loss of approximately $35 million for
the same quarter last year.
- Adjusted EBITDA1 of approximately
$15.6 million, improved from approximately negative $27.5 million
for the same quarter last year.
- Record quarterly order intake of
$1.3 billion, compared to approximately $565 million for the same
quarter last year.
- Backlog2 increased to approximately
$4.5 billion as of June 30, 2024, compared to approximately
$3.7 billion as of March 31, 2024.
- Total Cash3 of approximately $513.3
million as of June 30, 2024, representing an increase of
approximately $50.6 million from September 30, 2023.
- Net cash provided by operating
activities was approximately $69.2 million in the first nine months
of the fiscal year 2024, compared to approximately negative $160.5
million in the same period last year.
- Free cash flow1 was approximately
$64.3 million in the first nine months of fiscal year 2024,
compared to approximately negative $162.4 million in the same
period last year.
- In August 2024, converted our
existing $400 million ABL facility into a revolving credit
facility, providing us $500 million of additional available
liquidity to support our ongoing growth.
Executive Summary
"We delivered a tremendous quarter highlighted
by achieving approximately $15.6 million Adjusted EBITDA1, our
highest order intake, and a record backlog of $4.5 billion,"
said Julian Nebreda, the Company’s President and Chief Executive
Officer. "I am pleased to report that we are seeing robust demand
globally, highlighted by our U.S. domestic content offering which
we will begin delivering at the beginning of 2025, ahead of our
competition."
"We continue to execute at a high level as we
recently completed the world's third largest battery storage
facility for a customer, a monumental achievement. As we look to
close out our fiscal year, I am confident in our ability to deliver
on our fourth quarter customer obligations, which are projected to
be the largest in the Company's history."
Mr. Nebreda continued, "I am delighted to report
that we are making substantial progress on each of our strategic
objectives detailed below."
|
|
|
Strategic Objectives |
1. |
|
Deliver Profitable Growth |
|
• |
For the third fiscal quarter of 2024, we delivered approximately
$1.1 million of net income and $15.6 million of Adjusted EBITDA4,
representing a 103% and 157% increase from the same period last
year, respectively. |
|
• |
Delivered year-to-date GAAP gross profit margins of 12.5%. |
|
|
|
2. |
|
Develop Products and Solutions That Our Customers
Need |
|
• |
Gridstack Pro product line is on schedule and currently undergoing
testing at our Pennsylvania lab, initial deliveries expected in
early 2025. |
|
|
|
3. |
|
Convert Our Supply Chain into a Competitive
Advantage |
|
• |
Currently on track for start of U.S. battery module production in
September 2024 that will enable our products to meet the criteria
for U.S. domestic content incentives under the Inflation Reduction
Act of 2022 (the "IRA") and the recently published domestic content
guidelines. |
|
|
|
4. |
|
Use Fluence Digital as a Competitive Differentiator and
Margin Driver |
|
• |
As a result of continued growth in our services and digital
businesses, we are increasing our Annual Recurring Revenue (ARR)
guidance to approximately $100 million by the end of fiscal year
2024. |
|
|
|
5. |
|
Work Better |
|
• |
In July 2024, Fluence expanded its Global Innovation Center in
India to include a Digital Service Center and Remote Monitoring and
Diagnostics Center. This central hub is intended to provide the
necessary infrastructure to serve our growing customer base and
provide a platform for our anticipated continued ARR growth. |
|
|
|
Updated Fiscal Year 2024
Guidance The Company is narrowing its fiscal year 2024
total revenue guidance range to $2.7 billion to $2.8 billion
(midpoint $2.75 billion) from the prior range of $2.7 billion to
$3.3 billion (midpoint $3 billion). This change reflects signed
contracts for which the majority of the associated revenue is now
expected to be realized in fiscal 2025. The midpoint of the updated
fiscal year 2024 revenue guidance is 100% covered by the Company's
current backlog plus revenue recognized year-to-date. Additionally,
the Company is narrowing its fiscal year 2024 Adjusted EBITDA4
range of $55 million to $65 million (midpoint $60 million) from the
prior range of $50 million to $80 million (midpoint $65 million).
Finally, the Company is raising its fiscal year 2024 ARR guidance
to approximately $100 million from approximately $80 million.
"Our year-to-date results demonstrate our
ability to deliver consistent and profitable growth. Although we
have lowered the midpoint of our revenue guidance for fiscal 2024,
we expect to achieve gross profit margins at the higher end of our
previous 10% to 12% target range for this fiscal year, which should
carry through to a strong Adjusted EBITDA result," said Ahmed
Pasha, Fluence's Chief Financial Officer. "Furthermore, we
appreciate the confidence shown by our relationship banks by
committing $500 million under our revolving credit facility, which
provides us additional flexibility to support our industry-leading
growth."
The foregoing Updated 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
June 30, 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 |
62,726,112 |
|
Total Class A and Class B-1 common stock outstanding |
180,392,777 |
|
|
|
|
Conference Call Information
The Company will conduct a teleconference
starting at 8:30 a.m. EDT on Thursday, August 8th, 2024, to discuss
the third fiscal quarter results. To participate, analysts are
required to register by clicking Fluence Energy Q3 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, August 8th, 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, and (v) other 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, and (iii) other 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 and expected Adjusted Gross Profit Margin for fiscal year
2024 to the nearest respective GAAP measures within this press
release because of the uncertainty around certain items that may
impact Adjusted EBITDA and Adjusted Gross Profit Margin, 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 “Updated Fiscal Year 2024 Guidance,”
"Strategic Objectives", and other statements regarding the
Company's future financial and operational performance, including,
but not limited to, expectations related to long-term gross profit
margins, expectations relating to delivering on our customer
obligations, our growth and business strategy, liquidity and access
to capital and cash flows, expectations relating to backlog,
pipeline, and contracted backlog, anticipated demand for the
Company's energy storage solutions, services and digital
applications, including domestic content products, expected impact
and benefits from the IRA and U.S. Treasury domestic content
guidelines on the Company and its customers, expected timing of the
delivery of our U.S. domestic content offering, anticipated
timeline of U.S. battery module production, potential benefits to
the Company resulting out of Section 301 tariffs, new products and
product innovation, including expected timing of deliveries of Grid
Stack Pro, relationships with new and existing customers and
suppliers, including opportunities relating to data centers,
expected benefits of our new Digital Service Center and Remote
Monitoring and Diagnostics Center, current expectations relating to
legal contingencies and proceedings, market and industry outlook
and related opportunities for the Company, future revenue
recognition and estimated revenues, including expectations relating
to recognizing delayed contract revenue and revenue growth in
fiscal year 2025, 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 2024 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 legal
proceedings, regulatory disputes, and government inquiries; 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 |
|
|
|
June 30, 2024 |
|
September 30, 2023 |
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
388,242 |
|
|
$ |
345,896 |
|
Restricted cash |
|
101,988 |
|
|
|
106,835 |
|
Trade receivables, net |
|
93,497 |
|
|
|
103,397 |
|
Unbilled receivables |
|
96,002 |
|
|
|
192,064 |
|
Receivables from related parties |
|
100,945 |
|
|
|
58,514 |
|
Advances to suppliers |
|
155,648 |
|
|
|
107,947 |
|
Inventory, net |
|
469,934 |
|
|
|
224,903 |
|
Current portion of notes receivable - pledged as collateral |
|
55,251 |
|
|
|
24,330 |
|
Other current assets |
|
42,453 |
|
|
|
31,074 |
|
Total current assets |
|
1,503,960 |
|
|
|
1,194,960 |
|
Non-current assets: |
|
|
|
Property and equipment, net |
$ |
13,586 |
|
|
$ |
12,771 |
|
Intangible assets, net |
|
58,628 |
|
|
|
55,752 |
|
Goodwill |
|
26,337 |
|
|
|
26,020 |
|
Deferred income tax asset |
|
85 |
|
|
|
86 |
|
Note receivable - pledged as collateral |
|
— |
|
|
|
30,921 |
|
Other non-current assets |
|
87,357 |
|
|
|
31,639 |
|
Total non-current assets |
|
185,993 |
|
|
|
157,189 |
|
Total assets |
$ |
1,689,953 |
|
|
$ |
1,352,149 |
|
Liabilities and Stockholders’ Equity |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
321,880 |
|
|
$ |
65,376 |
|
Deferred revenue |
|
409,612 |
|
|
|
273,164 |
|
Deferred revenue with related parties |
|
36,742 |
|
|
|
110,274 |
|
Current portion of borrowings against note receivable - pledged as
collateral |
|
53,714 |
|
|
|
22,539 |
|
Personnel related liabilities |
|
41,435 |
|
|
|
52,174 |
|
Accruals and provisions |
|
213,339 |
|
|
|
175,960 |
|
Taxes payable |
|
32,619 |
|
|
|
29,465 |
|
Other current liabilities |
|
15,365 |
|
|
|
16,711 |
|
Total current liabilities |
|
1,124,706 |
|
|
|
745,663 |
|
Non-current liabilities: |
|
|
|
Deferred income tax liability |
$ |
5,143 |
|
|
$ |
4,794 |
|
Borrowings against note receivable - pledged as collateral |
|
— |
|
|
|
28,024 |
|
Other non-current liabilities |
|
21,927 |
|
|
|
17,338 |
|
Total non-current liabilities |
|
27,070 |
|
|
|
50,156 |
|
Total liabilities |
|
1,151,776 |
|
|
|
795,819 |
|
Stockholders’ Equity: |
|
|
|
Preferred stock, $0.00001 per share, 10,000,000 shares authorized;
no shares issued and outstanding as of June 30, 2024 and
September 30, 2023 |
|
— |
|
|
|
— |
|
Class A common stock, $0.00001 par value per share, 1,200,000,000
shares authorized; 129,656,527 shares issued and 128,893,582 shares
outstanding as of June 30, 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, 134,325,805
shares authorized; 51,499,195 shares issued and outstanding as of
June 30, 2024; $0.00001 par value per share, 200,000,000
shares authorized; 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
June 30, 2024 and September 30, 2023 |
|
— |
|
|
|
— |
|
Treasury stock, at cost |
|
(9,040 |
) |
|
|
(7,797 |
) |
Additional paid-in capital |
|
627,923 |
|
|
|
581,104 |
|
Accumulated other comprehensive income |
|
1,572 |
|
|
|
3,202 |
|
Accumulated deficit |
|
(199,291 |
) |
|
|
(174,164 |
) |
Total stockholders’ equity attributable to Fluence Energy,
Inc. |
|
421,165 |
|
|
|
402,346 |
|
Non-Controlling interests |
|
117,012 |
|
|
|
153,984 |
|
Total stockholders’ equity |
|
538,177 |
|
|
|
556,330 |
|
Total liabilities and stockholders’ equity |
$ |
1,689,953 |
|
|
$ |
1,352,149 |
|
|
|
|
|
|
|
|
|
FLUENCE ENERGY, INC. CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE LOSS (UNAUDITED) (U.S.
Dollars in Thousands, except share and per share
amounts) |
|
|
Three Months Ended June 30, |
|
Nine Months Ended June 30, |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
Revenue |
$ |
328,091 |
|
|
$ |
431,616 |
|
|
$ |
856,125 |
|
|
$ |
1,042,328 |
|
Revenue from related parties |
|
155,226 |
|
|
|
104,735 |
|
|
|
614,289 |
|
|
|
502,669 |
|
Total revenue |
|
483,317 |
|
|
|
536,351 |
|
|
|
1,470,414 |
|
|
|
1,544,997 |
|
Cost of goods and services |
|
400,272 |
|
|
|
514,531 |
|
|
|
1,286,803 |
|
|
|
1,480,324 |
|
Gross profit |
|
83,045 |
|
|
|
21,820 |
|
|
|
183,611 |
|
|
|
64,673 |
|
Operating expenses: |
|
|
|
|
|
|
|
Research and development |
|
14,976 |
|
|
|
9,918 |
|
|
|
47,843 |
|
|
|
51,631 |
|
Sales and marketing |
|
14,773 |
|
|
|
10,106 |
|
|
|
41,271 |
|
|
|
29,299 |
|
General and administrative |
|
45,106 |
|
|
|
38,145 |
|
|
|
126,901 |
|
|
|
101,190 |
|
Depreciation and amortization |
|
3,624 |
|
|
|
2,267 |
|
|
|
8,589 |
|
|
|
7,360 |
|
Interest income, net |
|
(1,300 |
) |
|
|
(1,520 |
) |
|
|
(4,554 |
) |
|
|
(4,251 |
) |
Other expense (income), net |
|
562 |
|
|
|
(733 |
) |
|
|
(410 |
) |
|
|
(8,862 |
) |
Income (loss) before income taxes |
|
5,304 |
|
|
|
(36,363 |
) |
|
|
(36,029 |
) |
|
|
(111,694 |
) |
Income tax expense (benefit) |
|
4,229 |
|
|
|
(1,318 |
) |
|
|
1,328 |
|
|
|
(2,058 |
) |
Net income (loss) |
$ |
1,075 |
|
|
$ |
(35,045 |
) |
|
$ |
(37,357 |
) |
|
|
(109,636 |
) |
Net income (loss) attributable to non-controlling interest |
$ |
290 |
|
|
$ |
(11,655 |
) |
|
$ |
(12,230 |
) |
|
|
(36,748 |
) |
Net income (loss) attributable to Fluence Energy, Inc. |
$ |
785 |
|
|
$ |
(23,390 |
) |
|
$ |
(25,127 |
) |
|
$ |
(72,888 |
) |
|
|
|
|
|
|
|
|
Weighted average number of Class A common shares outstanding: |
|
|
|
|
|
|
|
Basic |
|
127,910,081 |
|
|
|
117,456,282 |
|
|
|
125,273,648 |
|
|
|
116,368,987 |
|
Diluted |
|
184,219,065 |
|
|
|
117,456,282 |
|
|
|
125,273,648 |
|
|
|
116,368,987 |
|
Income (loss) per share of Class A common stock: |
|
|
|
|
|
|
|
Basic |
$ |
0.01 |
|
|
$ |
(0.20 |
) |
|
$ |
(0.20 |
) |
|
$ |
(0.63 |
) |
Diluted |
$ |
— |
|
|
$ |
(0.20 |
) |
|
$ |
(0.20 |
) |
|
$ |
(0.63 |
) |
|
|
|
|
|
|
|
|
Impact of foreign currency translation and cash flow hedges, net of
tax |
|
(2,343 |
) |
|
|
5,079 |
|
|
|
(2,311 |
) |
|
|
25 |
|
Total other comprehensive (loss) income |
$ |
(2,343 |
) |
|
$ |
5,079 |
|
|
$ |
(2,311 |
) |
|
$ |
25 |
|
Total comprehensive loss |
$ |
(1,268 |
) |
|
$ |
(29,966 |
) |
|
$ |
(39,668 |
) |
|
$ |
(109,611 |
) |
Comprehensive loss attributable to non-controlling interest |
|
(384 |
) |
|
$ |
(9,963 |
) |
|
$ |
(12,911 |
) |
|
$ |
(36,761 |
) |
Total comprehensive loss attributable to Fluence Energy, Inc. |
$ |
(884 |
) |
|
$ |
(20,003 |
) |
|
$ |
(26,757 |
) |
|
$ |
(72,850 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FLUENCE ENERGY, INC. CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(U.S. Dollars in Thousands) |
|
|
Nine Months Ended June 30, |
|
2024 |
|
2023 |
Operating activities |
|
|
|
Net loss |
$ |
(37,357 |
) |
|
$ |
(109,636 |
) |
Adjustments to reconcile net loss to net cash provided by (used in)
operating activities: |
|
|
|
Depreciation and amortization |
|
10,395 |
|
|
|
7,739 |
|
Amortization of debt issuance costs |
|
1,420 |
|
|
|
457 |
|
Inventory provision (benefit) |
|
15,467 |
|
|
|
(1,097 |
) |
Stock-based compensation |
|
18,386 |
|
|
|
21,440 |
|
Deferred income taxes |
|
295 |
|
|
|
(1,276 |
) |
Changes in operating assets and liabilities: |
|
|
|
Trade receivables, net |
|
4,811 |
|
|
|
(66,036 |
) |
Unbilled receivables |
|
97,076 |
|
|
|
(17,315 |
) |
Receivables from related parties |
|
(42,424 |
) |
|
|
55,432 |
|
Advances to suppliers |
|
(46,999 |
) |
|
|
(8,142 |
) |
Inventory |
|
(257,916 |
) |
|
|
145,982 |
|
Other current assets |
|
(35,381 |
) |
|
|
5,192 |
|
Other non-current assets |
|
(8,029 |
) |
|
|
(30,984 |
) |
Accounts payable |
|
256,264 |
|
|
|
(139,244 |
) |
Deferred revenue with related parties |
|
(73,564 |
) |
|
|
(155,534 |
) |
Deferred revenue |
|
131,073 |
|
|
|
168,024 |
|
Accruals and provisions |
|
37,139 |
|
|
|
(83,518 |
) |
Taxes payable |
|
1,913 |
|
|
|
12,004 |
|
Other current liabilities |
|
22,425 |
|
|
|
24,593 |
|
Other non-current liabilities |
|
(25,838 |
) |
|
|
11,432 |
|
Net cash provided by (used in) operating
activities |
|
69,156 |
|
|
|
(160,487 |
) |
Investing activities |
|
|
|
Proceeds from maturities of short-term investments |
|
— |
|
|
|
111,674 |
|
Payments for purchase of investment in joint venture |
|
— |
|
|
|
(5,013 |
) |
Capital expenditures on software |
|
(8,606 |
) |
|
|
(7,284 |
) |
Purchase of property and equipment |
|
(4,838 |
) |
|
|
(1,877 |
) |
Net cash (used in) provided by investing
activities |
|
(13,444 |
) |
|
|
97,500 |
|
Financing activities |
|
|
|
Class A common stock withheld related to settlement of employee
taxes for stock-based compensation awards |
|
(1,243 |
) |
|
|
(1,618 |
) |
Debt Issuance Costs |
|
(5,004 |
) |
|
|
— |
|
Payments for acquisitions |
|
(3,892 |
) |
|
|
— |
|
Proceeds from exercise of stock options |
|
4,372 |
|
|
|
6,030 |
|
Proceeds from borrowing against note receivable - pledged as
collateral |
|
— |
|
|
|
48,176 |
|
Net cash (used in) provided by financing
activities |
|
(5,767 |
) |
|
|
52,588 |
|
Effect of exchange rate changes on cash and cash equivalents |
|
632 |
|
|
|
(3,226 |
) |
Net increase (decrease) in cash, cash equivalents, and restricted
cash |
|
50,577 |
|
|
|
(13,625 |
) |
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 |
$ |
513,308 |
|
|
$ |
416,096 |
|
Supplemental Cash Flows Information |
|
|
|
Interest paid |
$ |
2,178 |
|
|
$ |
955 |
|
Cash paid for income taxes |
$ |
1,719 |
|
|
$ |
928 |
|
|
|
|
|
|
|
|
|
Reclassifications
Certain prior period amounts have been
reclassified to conform to the current period presentation.
Interest income of $3.0 million and
$7.7 million for the three and nine months ended June 30,
2023, respectively, were 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 income (loss) before income taxes or net income (loss)
for any period presented.
Accounts payable with related parties of
$2.5 million and Accruals with related parties of
$3.7 million as of September 30, 2023, were reclassified
from Deferred revenue and payables with related parties to Accounts
payable and Accruals and provisions, respectively, on the condensed
consolidated balance sheet. The reclassification had no impact on
the total current liabilities for any period presented.
Corresponding reclassifications were also reflected on the
condensed consolidated statement of cash flows for the nine months
ended June 30, 2023. The reclassifications had no impact on cash
provided by (used in) operations for the period presented.
Provision on loss contracts, net of
$8.6 million for the nine months ended June 30, 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 June 30, 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”.
|
June 30, 2024 |
|
September 30, 2023 |
|
Change |
|
Change % |
Energy Storage Products and Solutions |
|
|
|
|
|
|
|
Deployed (GW) |
4.5 |
|
3.0 |
|
1.5 |
|
50% |
Deployed (GWh) |
11.6 |
|
7.2 |
|
4.4 |
|
61% |
Contracted Backlog (GW) |
6.6 |
|
4.6 |
|
2.0 |
|
43% |
Pipeline (GW) |
24.3 |
|
12.2 |
|
12.1 |
|
99% |
Pipeline (GWh) |
77.5 |
|
34.2 |
|
43.3 |
|
127% |
|
|
|
|
|
|
|
|
(amounts in GW) |
June 30, 2024 |
|
September 30, 2023 |
|
Change |
|
Change % |
Service Contracts |
|
|
|
|
|
|
|
Assets under Management |
3.7 |
|
2.8 |
|
0.9 |
|
32% |
Contracted Backlog |
3.6 |
|
2.9 |
|
0.7 |
|
24% |
Pipeline |
22.8 |
|
13.7 |
|
9.1 |
|
66% |
|
|
|
|
|
|
|
|
(amounts in GW) |
June 30, 2024 |
|
September 30, 2023 |
|
Change |
|
Change % |
Digital Contracts |
|
|
|
|
|
|
|
Assets under Management |
18.3 |
|
15.5 |
|
2.8 |
|
18% |
Contracted Backlog |
6.7 |
|
6.8 |
|
(0.1) |
|
(1%) |
Pipeline |
30.1 |
|
24.4 |
|
5.7 |
|
23% |
|
|
|
|
|
|
|
|
The following table presents our order intake
for the three and nine months ended June 30, 2024 and 2023. The
table is presented in Gigawatts (GW):
|
Three Months Ended June30 |
|
|
|
|
|
Nine Months Ended June30 |
|
|
|
|
(amounts in GW) |
2024 |
|
2023 |
|
Change |
|
Change % |
|
2024 |
|
2023 |
|
Change |
|
Change % |
Energy Storage Products and Solutions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contracted |
1.6 |
|
0.4 |
|
1.2 |
|
300% |
|
3.7 |
|
1.6 |
|
2.1 |
|
131% |
Service Contracts |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contracted |
0.4 |
|
0.1 |
|
0.3 |
|
300% |
|
2.0 |
|
1.2 |
|
0.8 |
|
67% |
Digital Contracts |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contracted |
0.6 |
|
1.0 |
|
(0.4) |
|
(40)% |
|
4.0 |
|
4.4 |
|
(0.4) |
|
(9)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 fails 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.
|
Three Months Ended June
30, |
|
|
|
|
Change |
|
Nine Months Ended June
30, |
|
|
|
|
Change |
($ in thousands) |
2024 |
|
2023 |
|
Change |
|
% |
|
2024 |
|
2023 |
|
Change |
|
% |
Net income (loss) |
$ |
1,075 |
|
|
$ |
(35,045 |
) |
|
$ |
36,120 |
|
|
103 |
% |
|
$ |
(37,357 |
) |
|
$ |
(109,636 |
) |
|
$ |
72,279 |
|
|
66 |
% |
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income, net(a) |
(1,300 |
) |
|
(1,520 |
) |
|
220 |
|
|
(14 |
)% |
|
(4,554 |
) |
|
(4,251 |
) |
|
(303 |
) |
|
7 |
% |
Income tax expense (benefit) |
4,229 |
|
|
(1,318 |
) |
|
5,547 |
|
|
421 |
% |
|
1,328 |
|
|
(2,058 |
) |
|
3,386 |
|
|
165 |
% |
Depreciation and amortization |
4,423 |
|
|
2,758 |
|
|
1,665 |
|
|
60 |
% |
|
10,395 |
|
|
7,851 |
|
|
2,544 |
|
|
32 |
% |
Stock-based compensation(b) |
6,140 |
|
|
5,677 |
|
|
463 |
|
|
8 |
% |
|
18,405 |
|
|
21,417 |
|
|
(3,012 |
) |
|
(14 |
)% |
Other non-recurring expenses(c) |
1,033 |
|
|
1,965 |
|
|
(932 |
) |
|
(47 |
)% |
|
3,017 |
|
|
5,439 |
|
|
(2,422 |
) |
|
(45 |
)% |
Adjusted EBITDA |
$ |
15,600 |
|
|
$ |
(27,483 |
) |
|
$ |
43,083 |
|
|
157 |
% |
|
$ |
(8,766 |
) |
|
$ |
(81,238 |
) |
|
$ |
72,472 |
|
|
89 |
% |
(a) Interest income, net for the three and nine
months ended June 30, 2023 have been recast to conform with current
period presentation as described above under "Reclassifications".
(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 June 30, 2024 includes $1.0 million in severance
costs related to restructuring. Amount for the three months ended
June 30, 2023 included $2.0 million in severance costs and
consulting fees related to the restructuring plan from November
2022. Amount for the nine months ended June 30, 2024 includes
approximately $1.0 million in severance costs related to
restructuring, $1.2 million of costs related to the termination of
the Revolving Credit Agreement and $0.8 million in costs related to
the Offering. Amount for the nine months ended June 30, 2023
included $5.4 million in severance costs and consulting fees
related to the restructuring plan from November 2022.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June
30, |
|
|
|
|
Change |
|
Nine Months Ended June
30, |
|
|
|
|
Change |
($ in thousands) |
2024 |
|
2023 |
|
Change |
|
% |
|
2024 |
|
2023 |
|
Change |
|
% |
Total revenue |
$ |
483,317 |
|
|
$ |
536,351 |
|
|
$ |
(53,034 |
) |
|
(10 |
)% |
|
$ |
1,470,414 |
|
|
$ |
1,544,997 |
|
|
$ |
(74,583 |
) |
|
(5 |
)% |
Cost of goods and services |
400,272 |
|
|
514,531 |
|
|
(114,259 |
) |
|
(22 |
)% |
|
1,286,803 |
|
|
1,480,324 |
|
|
(193,521 |
) |
|
(13 |
)% |
Gross profit |
83,045 |
|
|
21,820 |
|
|
61,225 |
|
|
281 |
% |
|
183,611 |
|
|
64,673 |
|
|
118,938 |
|
|
184 |
% |
Gross profit margin % |
17.2 |
% |
|
4.1 |
% |
|
|
|
|
|
|
|
12.5 |
% |
|
4.2 |
% |
|
|
|
|
|
|
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation(a) |
824 |
|
|
1,208 |
|
|
(384 |
) |
|
(32 |
)% |
|
3,204 |
|
|
3,364 |
|
|
(160 |
) |
|
(5 |
)% |
Amortization(b) |
770 |
|
|
491 |
|
|
279 |
|
|
57 |
% |
|
1,776 |
|
|
491 |
|
|
1,285 |
|
|
262 |
% |
Other non-recurring expenses(c) |
— |
|
|
108 |
|
|
(108 |
) |
|
(100 |
)% |
|
— |
|
|
436 |
|
|
(436 |
) |
|
(100 |
)% |
Adjusted Gross Profit |
$ |
84,639 |
|
|
$ |
23,627 |
|
|
$ |
61,012 |
|
|
258 |
% |
|
$ |
188,591 |
|
|
$ |
68,964 |
|
|
$ |
119,627 |
|
|
173 |
% |
Adjusted Gross Profit Margin % |
17.5 |
% |
|
4.4 |
% |
|
|
|
|
|
|
|
12.8 |
% |
|
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
and nine months ended June 30, 2023 included $0.1 million
and $0.4 million, respectively in severance costs related to the
restructuring plan from November 2022.
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended June
30, |
|
|
|
|
|
|
($ in thousands) |
2024 |
|
2023 |
|
Change |
|
Change % |
Net cash provided by (used in) operating activities |
$ |
69,156 |
|
|
$ |
(160,487 |
) |
|
$ |
229,643 |
|
|
143 |
% |
Less: Purchase of property and equipment |
(4,838 |
) |
|
(1,877 |
) |
|
(2,961 |
) |
|
(158 |
)% |
Free Cash Flow |
$ |
64,318 |
|
|
$ |
(162,364 |
) |
|
$ |
226,682 |
|
|
140 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
____________________________ 1 Non-GAAP Financial Metric. See
the section 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 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)
過去 株価チャート
から 7 2024 まで 8 2024
Fluence Energy (NASDAQ:FLNC)
過去 株価チャート
から 8 2023 まで 8 2024