Fluence Energy, Inc. (Nasdaq: FLNC) (“Fluence” or the “Company”), a
leading global provider of energy storage products and services,
and optimization software for renewables and storage, today
announced its results for the three months and fiscal year ended
September 30, 2023.
Financial Highlights for fourth quarter
and fiscal year ended September 30, 2023
- Record revenue for
fiscal year 2023 of $2.2 billion and revenue for the fourth quarter
of $673 million, representing an increase of approximately 85% from
fiscal year 2022 and an increase of approximately 25% from the
third quarter.
- GAAP gross margin
improved to approximately 6.4% for fiscal year 2023 and 11.3% for
the fourth quarter compared to (5.2)% for fiscal year 2022 and 4.1%
in the third quarter.
- Net loss of
approximately $(105) million for fiscal year 2023 and net income of
$4.8 million for the fourth quarter compared to net loss of
approximately $(289) million for fiscal year 2022 and net loss of
approximately $(35) million for the third quarter.
- Adjusted EBITDA1 of
approximately $(61) million for fiscal year 2023 and $20 million
for the fourth quarter compared to $(235) million for fiscal year
2022 and $(27) million for the third quarter.
- Strong quarterly
order intake of $737 million representing an increase of 30% from
the third quarter and resulting in a total backlog2 of $2.9 billion
as of September 30, 2023.
- Total Cash4 of $463
million representing an increase of 11% from the third
quarter.
Commenting on the quarter, Julian Nebreda, the
Company’s President and Chief Executive Officer, said, “I'm pleased
to report that we reached a transformative milestone in the fourth
quarter, achieving profitability for the first time. This momentous
achievement is a testament to our unwavering commitment to
operational excellence, and to our team's relentless
dedication.
Our strong execution reaffirms our position as a
leader in the energy storage industry. It demonstrates our ability
to navigate challenges, drive towards success, and deliver
solutions to our customers. As we look ahead, our market outlook3
is more robust than ever. We see a world hungry for sustainable
energy solutions, and we believe that Fluence is at the forefront,
ready to meet that demand head-on as evidenced by our recently
launched Gridstack Pro product.
This milestone isn't just a financial
achievement; it's a testament to the incredible potential of
battery energy storage to shape a more sustainable and resilient
future. We remain focused on delivering value to both our customers
and shareholders as we continue our journey of transforming the way
we power our world for a more sustainable future.”
Strategic Objectives
Mr. Nebreda continued, “Our management team is
keenly focused on providing increased value to our shareholders
through delivering on five objectives, which are detailed below.
Additionally, I am pleased to say that we are making substantial
progress on each of these items as evidenced by the examples
provided.”
- Deliver profitable
growth:
- We exceed our
fiscal 2023 guidance for both revenue and adjusted gross
profit.
- We are initiating
fiscal year 2024 revenue guidance of a range of $2.7 billion to
$3.3 billion and fiscal year 2024 Adjusted EBITDA4 guidance of a
range of $50 million to $80 million.
- Develop products and solutions
that our customers need:
- In October 2023, we
launched Gridstack Pro, our larger battery pack enclosure providing
higher density, faster installation, enhanced performance, and
industry-leading safety.
- Launched Fluence
OS7, the latest Fluence operating system designed with enhanced
capabilities fully integrated with the Fluence battery management
system (BMS).
- Convert our supply chain into a
competitive advantage:
- Secured all battery needs for fiscal
2024 and 2025.
- Use Fluence Digital as a
competitive differentiator and margin driver:
- We are targeting
around $80 million of combined annual recurring revenue (ARR) from
our services and digital businesses by the end of fiscal 2024.
- Work better:
- Entered into our
new $400 million asset backed lending (ABL) facility secured by our
inventory, intended to provide us additional tools to manage our
working capital as we continue to grow.
Financial Update and Fiscal Year 2024
Outlook
“During the fourth quarter, we delivered on our
commitments and completed the first phase of the transformation to
improve gross margins and enter into positive Adjusted EBITDA
territory,” said Manavendra Sial, the Company's Chief Financial
Officer. “Additionally, I am pleased to say that we ended the
fiscal year with total cash5 in excess of $460 million. This,
combined with our new ABL Facility and existing supply chain
financing facilities, provides us with ample liquidity as we begin
fiscal 2024.”
The Company is initiating fiscal year 2024
revenue guidance of approximately $2.7 billion to $3.3 billion.
Additionally, the Company is initiating fiscal year 2024 Adjusted
EBITDA6 guidance of approximately $50 million to $80 million.
Additionally, the company is initiating fiscal year 2024 annual
recurring revenue guidance of around $80 million by the end of
fiscal 2024. Additionally, the Company is expecting approximately
30% of annual revenue in the first half of fiscal 2024 and 70% in
the second half of fiscal 2024 mostly due to the expected timing of
certain contracts.
The foregoing Fiscal Year 2024 outlook 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
September 30, 2023 are presented below:
in millions |
Common Shares |
Class B-1 common stock held by AES Grid Stability, LLC |
58,586,695 |
Class A common stock held by
Siemens AG and affiliates |
58,586,695 |
Class A common stock held by
Qatar Holding LLC |
18,493,275 |
Class A
common stock held by public |
41,823,465 |
Total Class A and Class B-1 common stock outstanding |
177,490,130 |
Conference Call Information
The Company will conduct a teleconference
starting at 8:30 a.m. EST on Wednesday, November, 29, 2023, to
discuss the results. To participate, analysts are required to
register by clicking Fluence Energy Inc. Q4 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 Inc. Q4 Listen Only - Webcast , or on
http://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. EST on Wednesday, November 29, 2023. The
replay will be available on the company’s website at
https://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
Flows, 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) expense, net,
(ii) income taxes, (iii) depreciation and amortization,
(iv) stock-based compensation, (v) 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 (Loss) is calculated using
gross profit (loss), 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 (Loss) 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 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 this press release and the
accompanying tables contained at the end of this release.
The Company is not able to provide a
quantitative reconciliation of full year 2024 Adjusted EBITDA to
GAAP Net Income (loss) on a forward-looking basis within this press
release because of the uncertainty around certain items that may
impact Adjusted EBITDA, including stock compensation and
restructuring expenses, that 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
cloud-based software for renewables and storage. With a presence in
over 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 the Fluence IQ Platform, which delivers AI-enabled SaaS
products 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 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 described herein 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 “Financial Update and Fiscal Year 2024
Outlook,” "Strategic Objectives", and other statements regarding
the Company's future financial and operational performance,
including the expected combined annual recurring revenue generated
from the services and digital businesses in fiscal year 2024, the
implementation and anticipated benefits of the Company's enumerated
strategic objectives, anticipated demand for the Company's energy
storage products, services and digital applications, relationships
with new and existing customers and suppliers, market outlook,
future results of operations, future revenue recognition and
estimated revenues, losses, projected costs, prospects, plans and
objectives of management. 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 ability to successfully execute our strategic objectives,
including maintaining profitable growth, our ability to develop new
product offerings and services and adoption of such new product
offerings and services by customers, changes in market or industry
conditions, regulatory environment, competitive conditions,
capacity constraints within the shipping industry, increased
shipping costs and delays in the shipping of our energy storage
products, projects delays and site closures and cost-overruns, our
ability to execute projects, failure to realize potential benefits
of the Inflation Reduction Act of 2022, 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, to be filed with the
Securities and Exchange Commission (“SEC”), 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.CONSOLIDATED BALANCE SHEETS
(U.S. Dollars in Thousands, except share and per share
amounts)
|
September 30, |
|
|
2023 |
|
|
|
2022 |
|
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
345,896 |
|
|
$ |
357,296 |
|
Restricted cash |
|
106,835 |
|
|
|
62,425 |
|
Short-term investments |
|
— |
|
|
|
110,355 |
|
Trade receivables, net |
|
103,397 |
|
|
|
86,770 |
|
Unbilled receivables |
|
192,064 |
|
|
|
138,525 |
|
Receivables from related parties |
|
58,514 |
|
|
|
112,027 |
|
Advances to suppliers |
|
107,947 |
|
|
|
54,765 |
|
Inventory, net |
|
224,903 |
|
|
|
652,735 |
|
Current portion of notes receivable - pledged as collateral |
|
24,330 |
|
|
|
— |
|
Other current assets |
|
31,074 |
|
|
|
26,635 |
|
Total current assets |
|
1,194,960 |
|
|
|
1,601,533 |
|
Non-current assets: |
|
|
|
Property and equipment, net |
|
12,771 |
|
|
|
13,755 |
|
Intangible assets, net |
|
55,752 |
|
|
|
51,696 |
|
Goodwill |
|
26,020 |
|
|
|
24,851 |
|
Deferred income tax asset, net |
|
86 |
|
|
|
3,028 |
|
Note receivable - pledged as collateral |
|
30,921 |
|
|
|
24,330 |
|
Other non-current assets |
|
31,639 |
|
|
|
26,461 |
|
Total non-current assets |
|
157,189 |
|
|
|
144,121 |
|
Total assets |
$ |
1,352,149 |
|
|
$ |
1,745,654 |
|
Liabilities, and
stockholders’ equity |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
62,899 |
|
|
$ |
304,898 |
|
Deferred revenue |
|
273,164 |
|
|
|
273,073 |
|
Current portion of borrowings against note receivable - pledged as
collateral |
|
22,539 |
|
|
|
— |
|
Personnel related liabilities |
|
52,174 |
|
|
|
21,286 |
|
Accruals and provisions |
|
172,223 |
|
|
|
183,814 |
|
Payables and deferred revenue with related parties |
|
116,488 |
|
|
|
306,348 |
|
Taxes payable |
|
29,465 |
|
|
|
11,114 |
|
Other current liabilities |
|
16,711 |
|
|
|
8,930 |
|
Total current liabilities |
|
745,663 |
|
|
|
1,109,463 |
|
Non-current liabilities: |
|
|
|
Deferred income tax liability |
|
4,794 |
|
|
|
4,876 |
|
Borrowings against note receivable - pledged as collateral |
|
28,024 |
|
|
|
— |
|
Other non-current liabilities |
|
17,338 |
|
|
|
2,107 |
|
Total non-current
liabilities |
|
50,156 |
|
|
|
6,983 |
|
Total liabilities |
|
795,819 |
|
|
|
1,116,446 |
|
Commitments and Contingencies
(Note 14) |
|
|
|
Stockholders’
equity: |
|
|
|
Preferred stock, 0.00001 per share, 10,000,000 share authorized; no
shares issued and outstanding as of September 30, 2023 and
2022 |
|
— |
|
|
|
— |
|
Class A common stock, 0.00001 par value per share, 1,200,000,000
shares authorized; 119,593,409 shares issued and 118,903,435 shares
outstanding as of September 30, 2023; 115,424,025 shares
issued and 114,873,121 shares outstanding as of September 30,
2022 |
|
1 |
|
|
|
1 |
|
Class B-1 common stock, 0.00001 par value per share, 200,000,000
shares authorized; 58,586,695 shares issued and outstanding as of
September 30, 2023; 58,586,695 shares issued and outstanding
as of September 30, 2022 |
|
— |
|
|
|
— |
|
Class B-2 common stock, 0.00001 par value per share, 200,000,000
shares authorized; no shares issued and outstanding as of
September 30, 2023 and 2022 |
|
— |
|
|
|
— |
|
Treasury stock, at cost |
|
(7,797 |
) |
|
|
(5,013 |
) |
Additional paid-in capital |
|
581,104 |
|
|
|
542,602 |
|
Accumulated other comprehensive income |
|
3,202 |
|
|
|
2,784 |
|
Accumulated deficit |
|
(174,164 |
) |
|
|
(104,544 |
) |
Total stockholders’ equity attributable to Fluence Energy,
Inc. |
|
402,346 |
|
|
|
435,830 |
|
Non-controlling interest |
|
153,984 |
|
|
|
193,378 |
|
Total stockholders’
equity |
|
556,330 |
|
|
|
629,208 |
|
Total liabilities,
stockholders’ equity |
$ |
1,352,149 |
|
|
$ |
1,745,654 |
|
|
|
|
|
|
|
|
|
FLUENCE ENERGY,
INC.CONSOLIDATED STATEMENTS OF OPERATIONS
ANDCOMPREHENSIVE LOSS(U.S.
Dollars in Thousands, except share and per share
amounts)
|
Fiscal Year Ended September 30, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2021 |
|
Revenue |
$ |
1,564,169 |
|
|
$ |
552,271 |
|
|
$ |
594,055 |
|
Revenue from related
parties |
|
653,809 |
|
|
|
646,332 |
|
|
|
86,711 |
|
Total revenue |
|
2,217,978 |
|
|
|
1,198,603 |
|
|
|
680,766 |
|
Cost of goods and
services |
|
2,077,023 |
|
|
|
1,260,957 |
|
|
|
749,910 |
|
Gross profit (loss) |
|
140,955 |
|
|
|
(62,354 |
) |
|
|
(69,144 |
) |
Operating expenses: |
|
|
|
|
|
Research and development |
|
66,307 |
|
|
|
60,142 |
|
|
|
23,427 |
|
Sales and marketing |
|
41,114 |
|
|
|
37,207 |
|
|
|
22,624 |
|
General and administrative |
|
136,308 |
|
|
|
116,710 |
|
|
|
38,162 |
|
Depreciation and amortization |
|
9,835 |
|
|
|
7,108 |
|
|
|
5,112 |
|
Interest (income) expense,
net |
|
(5,388 |
) |
|
|
(326 |
) |
|
|
1,435 |
|
Other (income) expense,
net |
|
(6,952 |
) |
|
|
4,625 |
|
|
|
270 |
|
Loss before income taxes |
|
(100,269 |
) |
|
|
(287,820 |
) |
|
|
(160,174 |
) |
Income tax expense |
|
4,549 |
|
|
|
1,357 |
|
|
|
1,829 |
|
Net loss |
$ |
(104,818 |
) |
|
$ |
(289,177 |
) |
|
$ |
(162,003 |
) |
Net loss attributable to
non-controlling interest |
$ |
(35,198 |
) |
|
$ |
(184,692 |
) |
|
$ |
(162,003 |
) |
Net loss attributable to Fluence Energy, Inc. |
$ |
(69,620 |
) |
|
$ |
(104,485 |
) |
|
N/A |
|
|
|
|
|
|
Weighted average number of Class A common shares outstanding |
|
|
|
|
|
Basic and diluted |
|
116,448,602 |
|
|
|
69,714,054 |
|
|
N/A |
Loss per share of Class A common stock |
|
|
|
|
|
Basic and diluted |
$ |
(0.60 |
) |
|
$ |
(1.50 |
) |
|
N/A |
|
|
|
|
|
|
Foreign currency translation
gain (loss), net of income tax expense of $0.3 million in 2023,
$0.1 million in 2022, and $0 in 2021 |
|
586 |
|
|
|
5,091 |
|
|
|
(614 |
) |
Actuarial gain on pension
liabilities, net of income tax expense of $0 in each period |
|
15 |
|
|
|
251 |
|
|
|
128 |
|
Total other comprehensive
income (loss) |
|
601 |
|
|
|
5,342 |
|
|
|
(486 |
) |
Total comprehensive loss |
$ |
(104,217 |
) |
|
$ |
(283,835 |
) |
|
$ |
(162,489 |
) |
Comprehensive loss
attributable to non-controlling interest |
$ |
(35,015 |
) |
|
$ |
(182,345 |
) |
|
$ |
(162,489 |
) |
Total comprehensive loss
attributable to Fluence Energy, Inc. |
$ |
(69,202 |
) |
|
$ |
(101,490 |
) |
|
N/A |
|
|
|
|
|
|
|
|
|
|
FLUENCE ENERGY,
INC.CONSOLIDATED STATEMENTS OF OPERATIONS
ANDCOMPREHENSIVE INCOME
(LOSS)(U.S. Dollars in Thousands, except share and
per share amounts)(UNAUDITED)
|
Three Months Ended September 30 |
|
|
2023 |
|
|
|
2022 |
|
|
|
2021 |
|
Revenue |
$ |
521,802 |
|
|
$ |
293,420 |
|
|
$ |
163,658 |
|
Revenue from related
parties |
|
151,180 |
|
|
|
148,562 |
|
|
|
24,547 |
|
Total revenue |
|
672,982 |
|
|
|
441,982 |
|
|
|
188,205 |
|
Cost of goods and
services |
|
596,699 |
|
|
|
431,242 |
|
|
|
247,266 |
|
Gross profit (loss) |
|
76,283 |
|
|
|
10,740 |
|
|
|
(59,061 |
) |
Operating expenses: |
|
|
|
|
|
Research and development |
|
14,676 |
|
|
|
17,915 |
|
|
|
6,176 |
|
Sales and marketing |
|
11,815 |
|
|
|
9,559 |
|
|
|
5,742 |
|
General and administrative |
|
35,118 |
|
|
|
32,938 |
|
|
|
15,003 |
|
Depreciation and amortization |
|
2,475 |
|
|
|
2,216 |
|
|
|
1,618 |
|
Interest (income) expense,
net |
|
(1,137 |
) |
|
|
(1,175 |
) |
|
|
536 |
|
Other expense |
|
1,912 |
|
|
|
3,622 |
|
|
|
108 |
|
Income (loss) before income
taxes |
|
11,424 |
|
|
|
(54,335 |
) |
|
|
(88,244 |
) |
Income tax expense
(benefit) |
|
6,607 |
|
|
|
1,850 |
|
|
|
(1,045 |
) |
Net income (loss) |
$ |
4,817 |
|
|
$ |
(56,185 |
) |
|
$ |
(87,199 |
) |
Net income (loss) attributable
to non-controlling interest |
|
1,588 |
|
|
|
(19,036 |
) |
|
|
(87,199 |
) |
Net income (loss) attributable to Fluence Energy, Inc. |
$ |
3,229 |
|
|
$ |
(37,149 |
) |
|
N/A |
|
|
|
|
|
|
Weighted average number of Class A common shares outstanding |
|
|
|
|
|
Basic |
|
118,599,185 |
|
|
|
114,452,470 |
|
|
|
N/A |
|
Diluted |
|
183,693,827 |
|
|
|
N/A |
|
|
|
N/A |
|
Earnings (loss) per share of Class A common stock |
|
|
|
|
|
Basic |
$ |
0.03 |
|
|
$ |
(0.32 |
) |
|
|
N/A |
|
Diluted |
$ |
0.02 |
|
|
|
N/A |
|
|
|
N/A |
|
Foreign currency translation gain, net of income tax expense of
$0.3 million in 2023, $0.1 million in 2022, and $0 in 2021 |
|
562 |
|
|
|
3,181 |
|
|
|
96 |
|
Actuarial gain on pension liabilities, net of income tax expense of
$0 in each period |
|
15 |
|
|
|
251 |
|
|
|
128 |
|
Total other comprehensive
income |
|
577 |
|
|
|
3,432 |
|
|
|
224 |
|
Total comprehensive income
(loss) |
$ |
5,394 |
|
|
$ |
(52,753 |
) |
|
$ |
(86,975 |
) |
Comprehensive income (loss)
attributable to non-controlling interest |
$ |
1,778 |
|
|
$ |
(17,875 |
) |
|
$ |
(86,975 |
) |
Total comprehensive income
(loss) attributable to Fluence Energy, Inc. |
$ |
3,616 |
|
|
$ |
(34,878 |
) |
|
|
N/A |
|
|
|
|
|
|
|
|
|
|
|
|
|
FLUENCE ENERGY,
INC.CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. Dollars in Thousands)
|
Fiscal Year Ended September 30, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2021 |
|
Operating
activities |
|
|
|
|
|
Net loss |
$ |
(104,818 |
) |
|
$ |
(289,177 |
) |
|
$ |
(162,003 |
) |
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
|
Depreciation and amortization |
|
10,665 |
|
|
|
7,108 |
|
|
|
5,112 |
|
Amortization of debt issuance costs |
|
914 |
|
|
|
778 |
|
|
|
— |
|
Inventory (recovery) provision |
|
(1,029 |
) |
|
|
2,529 |
|
|
|
14,197 |
|
Stock-based compensation expense |
|
26,920 |
|
|
|
44,131 |
|
|
|
— |
|
Deferred income taxes |
|
2,542 |
|
|
|
516 |
|
|
|
(1,346 |
) |
Provision (benefit) on loss contracts |
|
(6,105 |
) |
|
|
30,032 |
|
|
|
27,161 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
Trade receivables |
|
(13,397 |
) |
|
|
(29,161 |
) |
|
|
(25,322 |
) |
Unbilled receivables |
|
(50,503 |
) |
|
|
(36,550 |
) |
|
|
(1,938 |
) |
Receivables from related parties |
|
53,611 |
|
|
|
(78,666 |
) |
|
|
15,901 |
|
Advances to suppliers |
|
(36,490 |
) |
|
|
(45,024 |
) |
|
|
(6,865 |
) |
Inventory |
|
432,767 |
|
|
|
(265,477 |
) |
|
|
(366,674 |
) |
Other current assets |
|
(36,828 |
) |
|
|
1,364 |
|
|
|
(21,614 |
) |
Other non-current assets |
|
(16,632 |
) |
|
|
(35,208 |
) |
|
|
(1,184 |
) |
Accounts payable |
|
(242,163 |
) |
|
|
152,467 |
|
|
|
73,914 |
|
Payables and deferred revenue with related parties |
|
(190,920 |
) |
|
|
78,422 |
|
|
|
205,461 |
|
Deferred revenue |
|
(6,934 |
) |
|
|
201,028 |
|
|
|
(52,476 |
) |
Current accruals and provisions |
|
(6,871 |
) |
|
|
(32,361 |
) |
|
|
21,286 |
|
Taxes payable |
|
15,753 |
|
|
|
(1,779 |
) |
|
|
6,955 |
|
Other current liabilities |
|
39,467 |
|
|
|
6,362 |
|
|
|
4,632 |
|
Other non-current liabilities |
|
18,124 |
|
|
|
(3,719 |
) |
|
|
(466 |
) |
Insurance proceeds received |
|
— |
|
|
|
10,000 |
|
|
|
— |
|
Net cash used in operating
activities |
|
(111,927 |
) |
|
|
(282,385 |
) |
|
|
(265,269 |
) |
Investing
activities |
|
|
|
|
|
Purchase of equity
securities |
|
— |
|
|
|
(1,124 |
) |
|
|
— |
|
Proceeds from maturities of
short-term investments |
|
111,674 |
|
|
|
— |
|
|
|
— |
|
Purchases of short-term
investments |
|
— |
|
|
|
(110,144 |
) |
|
|
— |
|
Payments for purchase of
investment in joint venture |
|
(5,013 |
) |
|
|
— |
|
|
|
— |
|
Capital expenditures on
software |
|
(9,235 |
) |
|
|
— |
|
|
|
— |
|
Payments for acquisition of
businesses, net of cash acquired |
|
— |
|
|
|
(29,215 |
) |
|
|
(18,000 |
) |
Purchase of property and
equipment |
|
(2,989 |
) |
|
|
(7,934 |
) |
|
|
(4,292 |
) |
Net cash provided by (used in)
investing activities |
|
94,437 |
|
|
|
(148,417 |
) |
|
|
(22,292 |
) |
Financing
activities |
|
|
|
|
|
Capital contribution from
founders |
|
— |
|
|
|
— |
|
|
|
6,280 |
|
Proceeds from issuance of
Class B membership units |
|
— |
|
|
|
— |
|
|
|
125,000 |
|
Borrowing from promissory
notes – related parties |
|
— |
|
|
|
— |
|
|
|
125,000 |
|
Repayment of promissory
notes – related parties |
|
— |
|
|
|
(50,000 |
) |
|
|
(75,000 |
) |
Borrowing from line of
credit |
|
— |
|
|
|
— |
|
|
|
100,000 |
|
Repayment of line of
credit |
|
— |
|
|
|
(50,000 |
) |
|
|
(50,000 |
) |
Proceeds from borrowing
against note receivable - pledged as collateral |
|
48,176 |
|
|
|
— |
|
|
|
— |
|
Payment of equity issuance
costs |
|
— |
|
|
|
— |
|
|
|
(3,343 |
) |
Repurchase of Class A common
stock placed into treasury |
|
(2,784 |
) |
|
|
(5,013 |
) |
|
|
— |
|
Proceeds from exercise of
stock options |
|
7,203 |
|
|
|
3,103 |
|
|
|
— |
|
Payment of transaction costs
related to issuance of Class B membership units |
|
— |
|
|
|
(6,320 |
) |
|
|
— |
|
Payments of debt issuance
costs |
|
— |
|
|
|
(3,375 |
) |
|
|
— |
|
Proceeds from issuance of
Class A common stock sold in an IPO, net of underwriting discounts
and commissions |
|
— |
|
|
|
935,761 |
|
|
|
— |
|
Payments of deferred equity
issuance cost |
|
— |
|
|
|
(7,103 |
) |
|
|
— |
|
Other |
|
— |
|
|
|
— |
|
|
|
3,189 |
|
Net cash provided by financing
activities |
|
52,595 |
|
|
|
817,053 |
|
|
|
231,126 |
|
Effect of exchange rate
changes on cash and cash equivalents |
|
(2,095 |
) |
|
|
5,401 |
|
|
|
(547 |
) |
Net increase (decrease) in
cash and cash equivalents |
|
33,010 |
|
|
|
391,652 |
|
|
|
(56,982 |
) |
Cash, cash equivalents, and
restricted cash as of the beginning of the period |
|
429,721 |
|
|
|
38,069 |
|
|
|
95,051 |
|
Cash, cash equivalents, and
restricted cash as of the end of the period |
$ |
462,731 |
|
|
$ |
429,721 |
|
|
$ |
38,069 |
|
Supplemental
disclosure of cash flow information |
|
|
|
|
|
Interest paid |
$ |
2,336 |
|
|
$ |
1,127 |
|
|
$ |
1,229 |
|
Cash paid for income
taxes |
$ |
1,240 |
|
|
$ |
2,068 |
|
|
$ |
6,416 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Reclassifications
Certain prior period amounts have been
reclassified to conform to the current period presentation.
Interest income of $2.3 million for the fiscal
year ended September 30, 2022 and interest income of $1.3 million
for the three months ended September 30, 2022, were reclassified
from other (income) expense, net to interest (income) expense, net
on the consolidated statement of operations and comprehensive loss.
The reclassification had no net impact on loss before income taxes
or net loss for any period presented.
Debt issuance costs of $2.8 million,
advances to suppliers of $8.8 million, and right of use assets
- operating leases of $2.4 million, were reclassified into
other non-current assets for the fiscal year ended September 30,
2022, on the consolidated balance sheet. Current portion of
operating lease liabilities of $1.7 million was reclassified
to other current liabilities for the fiscal year ended September
30, 2022, on the consolidated balance sheet. Operating lease
liabilities, net of current portion of $1.0 million was
reclassified to other non-current liabilities for the fiscal year
ended September 30, 2022, on the consolidated balance sheet. The
reclassifications had no net impact on total non-current assets,
total current liabilities or total non-current liabilities for any
period presented.
FLUENCE ENERGY, INC. KEY
OPERATING METRICS (UNAUDITED)
The following tables present our key operating
metrics and order intake for the fiscal years ended
September 30, 2023 and 2022. 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” or “pipeline”.
|
|
Fiscal Year Ended September 30, |
|
Change |
|
Change % |
|
2023 |
|
2022 |
|
Energy Storage Products |
|
|
|
|
|
|
|
|
Deployed (GW) |
|
3.0 |
|
1.8 |
|
1.2 |
|
66.7 |
% |
Deployed (GWh) |
|
7.2 |
|
5.0 |
|
2.2 |
|
44.0 |
% |
Contracted backlog (GW) |
|
4.6 |
|
3.7 |
|
0.9 |
|
24.3 |
% |
Pipeline (GW) |
|
12.2 |
|
9.3 |
|
2.9 |
|
31.2 |
% |
Pipeline (GWh) |
|
34.2 |
|
22.6 |
|
11.6 |
|
51.3 |
% |
(amounts in GW) |
|
Fiscal Year Ended September 30, |
|
Change |
|
Change % |
|
2023 |
|
2022 |
|
Service Contracts |
|
|
|
|
|
|
|
|
Assets under management |
|
2.8 |
|
2.0 |
|
0.8 |
|
40.0 |
% |
Contracted backlog |
|
2.9 |
|
2.0 |
|
0.9 |
|
45.0 |
% |
Pipeline |
|
13.7 |
|
8.8 |
|
4.9 |
|
55.7 |
% |
(amounts in GW) |
|
Fiscal Year Ended September 30, |
|
Change |
|
Change % |
|
2023 |
|
2022 |
|
Digital Contracts |
|
|
|
|
|
|
|
|
Assets under management |
|
15.5 |
|
13.7 |
|
1.8 |
|
13.1 |
% |
Contracted backlog |
|
6.8 |
|
3.6 |
|
3.2 |
|
88.9 |
% |
Pipeline |
|
24.4 |
|
19.6 |
|
4.8 |
|
24.5 |
% |
(amounts in GW) |
|
Three Months Ended September 30, |
|
|
|
|
|
Fiscal Year Ended September 30, |
|
|
|
|
|
2023 |
|
2022 |
|
Change |
|
Change % |
|
2023 |
|
2022 |
|
Change |
|
Change % |
Energy Storage Products |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contracted |
|
0.6 |
|
0.5 |
|
0.1 |
|
20 |
% |
|
2.2 |
|
1.9 |
|
0.3 |
|
15.8 |
% |
Service
Contracts |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contracted |
|
0.6 |
|
0.6 |
|
0 |
|
— |
% |
|
1.8 |
|
1.3 |
|
0.5 |
|
38.5 |
% |
Digital
Contracts |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contracted |
|
1.8 |
|
0.8 |
|
1 |
|
125 |
% |
|
6.2 |
|
4.9 |
|
1.3 |
|
26.5 |
% |
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.
Contracted/Order Intake
Contracted, which we use interchangeably with
“Order Intake”, represents new energy storage product 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 revenues 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, 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 contracted backlog
or pipeline will result in actual revenue in the originally
anticipated period or at all. Contracted backlog and pipeline may
not generate margins equal to our historical operating results. We
have only recently begun to track our contracted backlog and
pipelines 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 and 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 annualized value of software subscriptions,
licensing, long term service agreements, and warranty fee contracts
as of the measurement date.
FLUENCE ENERGY, INC.
RECONCILIATION OF GAAP TO NON-GAAP
MEASURES (UNAUDITED)
The following tables present our non-GAAP
measures for the periods indicated.
($ in thousands) |
Three Months Ended September 30, |
|
Change |
|
Change % |
|
Fiscal Year Ended September 30, |
|
Change |
|
Change % |
|
2023 |
|
|
|
2022 |
|
|
|
|
2023 |
|
|
|
2022 |
|
|
Net loss |
$ |
4,817 |
|
|
$ |
(56,185 |
) |
|
$ |
61,002 |
|
|
109 |
% |
|
$ |
(104,818 |
) |
|
$ |
(289,177 |
) |
|
$ |
184,359 |
|
|
64 |
% |
Add (deduct): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest (income), net |
|
(1,137 |
) |
|
|
(1,175 |
) |
|
|
38 |
|
|
(3)% |
|
|
(5,388 |
) |
|
|
(326 |
) |
|
|
(5,063 |
) |
|
1553 |
% |
Income tax expense |
|
6,607 |
|
|
|
1,850 |
|
|
|
4,757 |
|
|
257 |
% |
|
|
4,549 |
|
|
|
1,357 |
|
|
|
3,192 |
|
|
235 |
% |
Depreciation and
amortization |
|
2,814 |
|
|
|
2,216 |
|
|
|
598 |
|
|
27 |
% |
|
|
10,665 |
|
|
|
7,108 |
|
|
|
3,557 |
|
|
50 |
% |
Stock-based
compensation(a) |
|
5,503 |
|
|
|
9,129 |
|
|
|
(3,626 |
) |
|
(40)% |
|
|
26,920 |
|
|
|
44,131 |
|
|
|
(17,211 |
) |
|
(39)% |
Other
expenses(b) |
|
1,245 |
|
|
|
1,566 |
|
|
|
(321 |
) |
|
(21)% |
|
|
6,684 |
|
|
|
1,566 |
|
|
|
5,118 |
|
|
327 |
% |
Adjusted EBITDA |
$ |
19,849 |
|
|
$ |
(42,599 |
) |
|
$ |
62,448 |
|
|
147 |
% |
|
$ |
(61,389 |
) |
|
$ |
(235,341 |
) |
|
$ |
173,952 |
|
|
74 |
% |
(a) Includes awards that will be settled in
shares and awards that will be settled in cash.(b) Amount for the
three months and the fiscal year ended September 30, 2023
includes approximately $1.2 million and $6.7 million, respectively,
of costs related to the restructuring plan, including severance.
Amount for the three months and the fiscal year ended September 30,
2022 includes approximately $1.6 million of costs related to
severance only. Costs related to the COVID-19 pandemic and the
cargo loss incident, which the Company had historically excluded
from Adjusted EBITDA, are no longer excluded. Adjusted EBITDA
results for the fiscal year ended September 30, 2022 have been
recast for comparative purposes.
($ in thousands) |
|
Three Months Ended September 30, |
|
Change |
|
Change % |
|
Fiscal Year Ended September 30, |
|
Change |
|
Change % |
|
|
2023 |
|
|
|
2022 |
|
|
|
|
2023 |
|
|
|
2022 |
|
|
Total revenue |
|
$ |
672,982 |
|
|
$ |
441,982 |
|
|
$ |
231,000 |
|
|
52 |
% |
|
$ |
2,217,978 |
|
|
$ |
1,198,603 |
|
|
$ |
1,019,375 |
|
|
85 |
% |
Cost of
goods and services |
|
|
596,699 |
|
|
|
431,242 |
|
|
|
165,457 |
|
|
38 |
% |
|
|
2,077,023 |
|
|
|
1,260,957 |
|
|
|
816,066 |
|
|
65 |
% |
Gross profit (loss) |
|
|
76,283 |
|
|
|
10,740 |
|
|
|
65,543 |
|
|
610 |
% |
|
|
140,955 |
|
|
|
(62,354 |
) |
|
|
203,309 |
|
|
326 |
% |
Add (deduct): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation(a) |
|
|
800 |
|
|
|
1,642 |
|
|
|
(842 |
) |
|
(51)% |
|
|
4,164 |
|
|
|
8,523 |
|
|
|
(4,359 |
) |
|
(51)% |
Amortization(b) |
|
|
339 |
|
|
|
— |
|
|
|
339 |
|
|
100 |
% |
|
|
830 |
|
|
|
— |
|
|
|
830 |
|
|
100 |
% |
Other
expenses(c) |
|
|
510 |
|
|
|
— |
|
|
|
510 |
|
|
100 |
% |
|
|
946 |
|
|
|
— |
|
|
|
946 |
|
|
100 |
% |
Adjusted Gross Profit (Loss) |
|
$ |
77,932 |
|
|
$ |
12,382 |
|
|
$ |
65,550 |
|
|
529 |
% |
|
$ |
146,895 |
|
|
$ |
(53,831 |
) |
|
$ |
200,726 |
|
|
373 |
% |
Adjusted Gross Profit Margin (Loss) % |
|
|
11.6 |
% |
|
|
2.8 |
% |
|
|
|
|
|
|
6.6 |
% |
|
(4.5)% |
|
|
|
|
(a) Includes awards that will be settled in
shares and awards that will be settled in cash.(b) Amount related
to amortization of capitalized software included in cost of goods
and services for the fiscal year ended September 30, 2023. (c)
Amount for the three months and the fiscal year ended
September 30, 2023 includes $0.5 million and $0.9 million,
respectively, of costs related to the restructuring plan, including
severance. Costs related to the COVID-19 pandemic and the cargo
loss incident, which the Company had historically excluded from
Adjusted Gross Profit (Loss) and Adjusted Gross Profit Margin, are
no longer excluded. Adjusted Gross Profit (Loss) and Adjusted Gross
Profit Margin results for the year ended September 30, 2022
have been recast for comparative purposes.
($ in thousands) |
|
Fiscal Year Ended September 30, |
|
Change |
|
Change % |
|
|
2023 |
|
|
|
2022 |
|
|
Net cash used in operating activities |
|
$ |
(111,927 |
) |
|
$ |
(282,385 |
) |
|
$ |
170,458 |
|
60 |
% |
Less:
Purchase of property and equipment |
|
|
(2,989 |
) |
|
|
(7,934 |
) |
|
|
4,945 |
|
(62 |
) |
Free Cash Flows |
|
$ |
(114,916 |
) |
|
$ |
(290,319 |
) |
|
$ |
175,403 |
|
60 |
% |
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 financials
measure stated in accordance with GAAP.2 For our energy storage
product 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 application contracts,
contracted backlog includes signed agreements where the associated
subscription has not started.3 As reflected in BNEF's H2 2023
Energy Storage Market Outlook.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 financials measure stated in accordance with GAAP.5
Total cash includes Cash and cash equivalents + Restricted Cash +
Short term investments.6 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 financials
measure stated in accordance with GAAP.
Contacts
Analyst
Lexington May, Vice President, Finance & Investor Relations
+1 713-909-5629
Email : InvestorRelations@fluenceenergy.com
Media
Email: media.na@fluenceenergy.com
Fluence Energy (NASDAQ:FLNC)
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