ARLINGTON, Va., Jan. 31, 2024 (GLOBE NEWSWIRE) -- Fluence Energy, Inc. (NASDAQ:FLNC) ("Fluence" or the "Company"), announced today that it will report earnings for the first quarter ended December 31, 2023 on Wednesday, February 7th, 2024, after market close. The Company will conduct a teleconference starting at 8:30 a.m. EST on Thursday, February 8th, 2024, to discuss the results. To participate, analysts are required to register by clicking Fluence Energy Q1 Earnings Call Registration Link. Once registere ...

ARLINGTON, Va., Jan. 31, 2024 (GLOBE NEWSWIRE) -- Fluence Energy, Inc. (Nasdaq: FLNC) (“Fluence” or the “Company”), announced today that it will report earnings for the first quarter ended December 31, 2023 on Wednesday, February 7th, 2024, after market close. The Company will conduct a teleconference starting at 8:30 a.m. EST on Thursday, February 8th, 2024, to discuss the results. To participate, analysts are required to register by clicking Fluence Energy Q1 Earnings Call Registration Link. Once register ...

MELBOURNE, Australia, Jan. 29, 2024 (GLOBE NEWSWIRE) -- Fluence Energy, Inc. ("Fluence") (NASDAQ:FLNC), a leading global provider of energy storage products, services, and optimisation software for renewables and storage, today announced that the company has been selected by Origin Energy Limited (Origin) to deliver a 300 MW / 650 MWh battery at the Mortlake Power Station in southwest Victoria. The project will use Fluence's Gridstack™ energy storage product with a 15-year service agreement contributing to ...

With peak inflation likely in the rearview mirror for the time being and interest rates expected to come down, 2024 could be a great year to invest in growth stocks. However, some investors may be hesitant to keep their foot on the gas after a rip-roaring 2023 saw many growth stocks surge to new heights.Electric vehicle maker Rivian Automotive (RIVN -2.15%), materials company Hexcel (HXL 0.27%), and energy storage specialist Fluence Energy (FLNC -1.74%) somewhat missed out on the rally by underperforming th ...

Financial Data and Key Metrics - Q4 revenue was $673 million, a 52% YoY increase and 25% QoQ growth [122] - Adjusted gross profit for Q4 was $78 million, or 11.6%, up from 7% in FY2023 [122] - Adjusted EBITDA for Q4 was $20 million, ahead of expectations [122] - Total cash balance at the end of Q4 was $463 million, an increase of $45 million from Q3 [6] - FY2024 revenue guidance is between $2.7 billion and $3.3 billion, with adjusted EBITDA expected to be $50 million to $80 million [119][148] - FY2025 revenue growth is projected at 35% to 40% YoY [120][148] Business Line Performance - Solutions business contracted 2.1 gigawatt hours in Q4 [118] - Services business added 1.6 gigawatt hours in Q4 [118] - Digital business added 1.8 gigawatts of new contracts in Q4 [118] - Digital assets under management increased by over 1 gigawatt, reaching 15.5 gigawatts as of September 30 [5] - Annual recurring revenue (ARR) from services and digital businesses is expected to reach $80 million by the end of FY2024, a 40% increase YoY [121] Market Performance - Pipeline increased by $600 million in Q4, reaching $13 billion [143] - Backlog remained at $2.9 billion, with $400 million in contracts signed after the quarter ended [143] - US market leads in growth, with new opportunities in Canada, Australia, and Germany [163] Strategic Direction and Industry Competition - The company aims to reduce project cycle times from 18 months to 12 months within two years [5] - New $400 million asset-backed lending (ABL) facility secured, providing flexibility for working capital management [6][144] - Gridstack Pro and OS7 launched, positioning the company to qualify for the 10% domestic content bonus under the Inflation Reduction Act [112] - The company is ranked number one globally and in the US for battery and storage systems integration [125] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in achieving 35% to 40% revenue growth in FY2025, driven by customer conversations and a robust pipeline [14][15] - Lower battery prices are seen as an opportunity rather than a risk, with potential for increased project volumes [17][19] - The company expects to generate free cash flow in FY2025 [148] Other Important Information - CFO Manu Sial is stepping down, with Ahmed Pasha taking over as CFO effective January 1 [3] - The company has secured all battery needs for FY2024 and FY2025 [111] - The company is not currently pursuing M&A but may consider technology-focused acquisitions in the future [42][44] Q&A Session Summary Question: Impact of interest rate changes on the business - The company has not seen delays due to interest rate changes, as top-tier developers have no issues accessing capital [128] Question: FY2025 revenue growth drivers - Growth is supported by customer conversations, contracted backlog, and secured battery supply [14][15] Question: Battery pricing and margin risks - The company has contracts aligned with current market prices, and lower battery prices are seen as an opportunity to increase project volumes [19][28] Question: Domestic content offering and margin expansion - The company sees potential for margin expansion with domestic content offerings, but it is too early to quantify [162] Question: Geographic breakout of backlog and pipeline - The US leads in growth, with new opportunities in Canada, Australia, and Germany [163] Question: M&A strategy - The company is not actively pursuing M&A but may consider technology-focused acquisitions in the future [42][44] Question: Gross margin outlook for FY2025 - Gross margins are expected to remain in the 10% to 15% range, with potential upside from domestic content offerings [62] Question: Free cash flow and capital allocation - The company plans to reinvest free cash flow into growth and technology rather than returning capital to shareholders [48]

4Q FY2023 Earnings Presentation Forward-Looking Statements The forward-looking statements contained in this presentation 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-loo ...

Revenue Growth and Market Trends - Revenue growth is directly tied to the adoption of energy storage products and solutions, with lithium-ion energy storage hardware costs declining significantly over the last decade, creating a large addressable market[41] - Revenue is primarily generated from energy storage products and solutions, with contracts covering price, specifications, delivery dates, and warranties. Revenue recognition occurs over time as control of the product is transferred to the customer[51][52] - Historically, combined third and fourth fiscal quarter order intake accounted for 80% or more of total annual intake, but dropped to 48% in FY2022 and 43% in FY2023. For FY2024, the company expects seasonality to return, with higher order intake in the second half of the year[46] - Energy storage products deployed increased by 66.7% to 3.0 GW in FY2023, while deployed GWh increased by 44.0% to 7.2 GWh. Contracted backlog for energy storage products grew by 24.3% to 4.6 GW, and pipeline increased by 31.2% to 12.2 GW[68] - Service contracts under management grew by 40.0% to 2.8 GW in FY2023, with contracted backlog increasing by 45.0% to 2.9 GW. The pipeline for service contracts expanded by 55.7% to 13.7 GW[68] - Total revenue grew by $1.02 billion to $2.22 billion, an 85% increase compared to the previous fiscal year[87][88] - Gross profit improved significantly to $140.96 million from a loss of $62.35 million, a 326% increase[87][90] - Adjusted EBITDA improved by $173.95 million to a loss of $61.39 million, a 74% improvement[84] - Free cash flow improved by $175.4 million to a negative $114.92 million, a 60% improvement[84] - Net loss decreased by $184.4 million, or 63.8%, primarily due to increases in gross profit and other (income) expense, net, partially offset by increases in operating expenses[99] Costs and Expenses - The company incurred approximately $6.7 million in costs related to a restructuring plan, including severance costs, as of September 30, 2023[35] - A $19.5 million settlement for claims was recognized as a reduction in costs of goods and services for the fiscal year ended September 30, 2023[29] - The company recorded a $13.0 million provision for inventory loss due to the 2021 Cargo Loss Incident, with $10.0 million in insurance proceeds collected[30] - Research and development expenses are expected to increase in future periods to support growth and achieve technology and product roadmap goals. The company is establishing a new Hardware in the Loop (HIL) testing facility in Bangalore, India[56][58] - The company expects operating expenses to increase in the near future as it invests in additional resources to support growth, including personnel-related expenses such as salaries, stock-based compensation, and employee benefits[55] - Research and development expenses increased by $6.2 million to $66.31 million, driven by higher personnel and material costs[91] - Sales and marketing expenses rose by $3.9 million to $41.11 million, primarily due to increased employee bonuses[93] - General and administrative expenses increased by $19.6 million to $136.31 million, mainly due to higher headcount and employee bonuses[94] Legal and Financial Risks - The company faces potential litigation and financial impacts from overheating events at customer facilities in 2021 and 2022, with no estimated financial impact as of September 30, 2023[31][32] - The company filed a complaint seeking $37.0 million in damages related to an energy storage facility project, with a cross-complaint seeking $25.0 million in alleged damages[33] - The company is exposed to credit risk from counterparties, with policies in place to mitigate potential losses, including milestone payments and credit evaluations[133] - Foreign currency risk is managed through derivatives, with no material exposure to fluctuations in the U.S. dollar against currencies like the Euro and British pound[134] - Commodity price risk affects raw materials like steel and lithium, with potential impacts on operating margins if suppliers increase component prices[135] - Interest rate risk is managed through variable rate borrowings under the ABL Credit Agreement, with no borrowings under the Revolver as of September 30, 2023[137] Investments and Joint Ventures - The company's beneficial ownership interest in Fluence Energy, LLC increased to 66.08% following the Siemens Redemption on June 30, 2022[26] - The company formed a joint venture in India with an initial investment of $5.0 million and a $15.0 million line of credit, recording an insignificant equity method loss for fiscal year 2023[39] - The company received net proceeds of $935.8 million from its IPO, which were used to repay outstanding borrowings and for working capital and other general corporate purposes[103] - The company entered into a Revolving Credit Agreement with an aggregate commitment of $200.0 million, which was terminated effective November 22, 2023[104] - The ABL Credit Agreement limits the company's ability to make certain payments, including dividends and distributions, and requires maintaining a minimum Total Liquidity of $64.0 million[108] - The company transferred $24.3 million and $30.9 million in customer receivables to Standard Chartered Bank in the Philippines, resulting in net interest income of $1.0 million[109] - The company is required to make cash payments to the Founders equal to 85% of the tax benefits realized from increases in tax basis of assets of Fluence Energy, LLC and its subsidiaries[110] - The Revolver bore interest at either the Adjusted SOFR Rate plus 3.0% or the Alternate Base Rate plus 2.0%, with a commitment fee of 0.55% per annum on the average daily unused portion of the revolving commitments[112] - The Revolver provided for up to $200.0 million in letter of credit issuances, with a letter of credit participation fee of 2.75% per annum payable to the lenders[112] - As of September 30, 2023, the company had no borrowings under the Revolver and $35.9 million of letters of credit outstanding, with availability under the facility of $164.1 million net of letters of credit issued[112] - The ABL Facility has revolving commitments in an aggregate principal amount of $400.0 million, secured by a first priority pledge of Fluence Energy, Inc.'s equity interests in Fluence Energy, LLC[113] - Loans under the ABL Facility bear interest at the Alternate Base Rate plus an additional margin ranging from 2.00% to 2.50%, depending on the Average Excess Availability[115] - The ABL Facility provides for an initial letter of credit sublimit in the amount of $167.5 million, which may be increased to $200.0 million if certain conditions are met[115] - The Siemens Redemption will result in future tax savings of $96.5 million, with Siemens AG entitled to receive payments under the Tax Receivable Agreement equaling 85% of such amount, or $82.0 million[120] - The company determined it is not probable payments under the Tax Receivable Agreement would be made, given no expectation of future sufficient taxable income over the term of the agreement[123] Tax and Regulatory Environment - After the IPO, the company is now subject to U.S. federal and state income taxes, in addition to foreign income taxes. Valuation allowances are expected to be needed in certain tax jurisdictions, and significant expenses related to the Tax Receivable Agreement are anticipated over time[64] - The U.S. Inflation Reduction Act (IRA) introduced an investment tax credit (ITC) for standalone energy storage and incentives for grid modernization equipment, including domestic battery cell and module manufacturing. The company believes it is well-positioned to capture these incentives, but the full impact on business operations and financial performance is still being evaluated[47][48] - Income tax expense increased by $3.2 million, or 235.2%, primarily due to decreases in global pre-tax losses and changes in valuation allowances[98] Operational and Financial Performance - Lithium-ion battery pack prices increased in 2022 due to higher raw material costs, marking the first annual price increase since at least 2010, with prices declining in 2023 but no guarantee of continued decline in fiscal year 2024[36] - The company operates in a competitive energy storage market, with key differentiators including safety, reliability, supply chain stability, and comprehensive solutions[44][45] - The company does not hedge against raw material price changes, as it relies on suppliers to manage raw material costs. Economies of scale are expected to reduce the ratio of cost of goods and services to revenue, though personnel-related costs are not directly affected by sales volume[53] - Adjusted EBITDA and Free Cash Flow are key non-GAAP financial measures used by the company. Free Cash Flow is expected to fluctuate as the company invests in growth, and it should not be considered in isolation or as a substitute for GAAP financial measures[72] - Assets under management increased by 1.8 GW to 15.5 GW, a 13.1% growth compared to the previous year[73] - Contracted backlog surged by 3.2 GW to 6.8 GW, marking an 88.9% increase year-over-year[73] - Pipeline expanded by 4.8 GW to 24.4 GW, reflecting a 24.5% growth[73] - Net interest income increased by $5.1 million, or 1552.8%, primarily due to higher interest rates on cash deposits and investments, and a $3.5 million increase in interest income from note receivable balances with the largest customer in the Philippines[96] - Other (income) expense, net increased by $11.6 million, or 250.3%, primarily due to favorable foreign currency exchange gains[97] - Net cash used in operating activities decreased by $170.5 million (60.4%) to $111.9 million in fiscal year 2023 compared to $282.4 million in fiscal year 2022[127] - Net cash provided by investing activities increased by $242.9 million (163.6%) to $94.4 million in fiscal year 2023 compared to net cash used in investing activities of $148.4 million in fiscal year 2022[127] - Net cash provided by financing activities decreased by $764.5 million (93.6%) to $52.6 million in fiscal year 2023 compared to $817.1 million in fiscal year 2022[127] - Revenue recognition for energy storage products is based on the percentage of completion method, with significant judgment required for cost inclusion and variable consideration like liquidated damages[130] - Customer concentration includes emerging markets like the Philippines and India, contributing 3% and 6% of revenue in fiscal years 2023 and 2022, respectively[136] Warranty and Performance Security - The company had outstanding bank guarantees, parent guarantees, and surety bonds issued as performance security arrangements for several customer projects as of September 30, 2023[125] - The company is party to both assurance and service-type warranties for various lengths of time[125] Supply Chain and Raw Material Costs - As of September 30, 2023, the company had $30.0 million of payables outstanding under the supply chain financing program, with $100.0 million in guarantees issued by AES and Siemens[103]

Fluence Energy, Inc. (NASDAQ:FLNC) Q3 2023 Earnings Conference Call August 10, 2023 8:30 AM ET Company Participants Lexington May - VP, IR Julian Nebreda - President and CEO Manavendra Sial - SVP and CFO Rebecca Boll - SVP and Chief Product Officer Conference Call Participants James West - Evercore ISI Brian Lee - Goldman Sachs Justin Clare - ROTH MKM Julien Dumoulin-Smith - Bank of America Merrill Lynch Benjamin Kallo - Baird Pavel Molchanov - Raymond James Tom Curran - Seaport Research Craig Shere - Tuohy ...

3Q FY2023 Earnings Presentation AUGUST 10, 2023 Disclaimer 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 within this presentation, and other statements rega ...

The following discussion describes certain line items in our condensed consolidated statements of operations and comprehensive loss. Our revenue growth is dependent on continued growth in the amount of battery-based energy storage products and solutions projects constructed each year and our ability to increase our share of demand in the geographic regions where we currently compete and plan to compete in the future as well as our ability to continue to develop and commercialize new and innovative products ...