Revenue and Sales Performance - For the six months ended June 30, 2021, 80% of total revenue was derived from tracker system sales, primarily to customers in the United States [106]. - The company recorded revenue from the first order of its SunPath performance-enhancing software, which is estimated to increase energy yield by up to 6% at solar installations [106]. - Total revenue for the six months ended June 30, 2021 was $115.8 million, an increase of $32.3 million or 39% compared to the same period in 2020 [131]. - Product revenue for Q2 2021 was $35.8 million, a decrease of $7.0 million or 16% compared to Q2 2020, primarily due to a 14% decrease in MW shipped [133]. - Service revenue for Q2 2021 was $14.4 million, an increase of $6.1 million or 73% compared to Q2 2020, driven by increased shipping and logistics revenue [135]. Expenses and Financial Performance - Gross profit for Q2 2021 was negative $16.1 million, a decrease of $14.7 million compared to Q2 2020, primarily due to increased shipping and logistics costs [140]. - Research and development expenses for Q2 2021 were $5.6 million, an increase of $4.1 million compared to Q2 2020, largely due to stock-based compensation related to the IPO [142]. - General and administrative expenses for Q2 2021 were $51.1 million, an increase of $48.9 million compared to Q2 2020, primarily due to stock-based compensation triggered by the IPO [146]. - Selling and marketing expenses for Q2 2021 were $3.2 million, an increase of $2.4 million compared to Q2 2020, driven by stock-based compensation related to the IPO [144]. - The company experienced a net loss of $55.8 million for Q2 2021, compared to a net loss of $6.8 million for Q2 2020 [131]. - The company recognized a net loss of $63.3 million for the six months ended June 30, 2021, compared to a net loss of $3.4 million for the same period in 2020 [155]. - The adjusted Non-GAAP net loss for the six months ended June 30, 2021, was $23,647,000, compared to $2,193,000 for the same period in 2020, reflecting a worsening financial performance [171]. Cash Flow and Financing - For the six months ended June 30, 2021, the net cash used in operating activities was $84.3 million, primarily due to a net loss of $63.3 million [155]. - Net cash provided by investing activities for the six months ended June 30, 2021, was $21.8 million, attributable to proceeds from the disposal of the equity method investment [156]. - Net cash provided by financing activities for the six months ended June 30, 2021, was $178.8 million, primarily from the sale of common stock during the IPO [158]. - The company had an increase in cash and restricted cash of $116.3 million for the six months ended June 30, 2021 [153]. - The company entered into a $100 million senior secured revolving credit facility in April 2021, which has not been drawn upon as of June 30, 2021 [161]. Supply Chain and Market Conditions - The company has reduced its reliance on China for its supply chain from 90% in 2019 to qualifying suppliers outside of China for all commodities as of June 30, 2021 [109]. - The impact of the COVID-19 pandemic has caused significant supply chain disruptions, leading to delays in product deliveries and increased logistics costs [110]. - The company has entered into contracts to secure necessary capacity and price certainty for a substantial portion of steel commodities required for anticipated production in the second half of the year [117]. - Cost per MW increased 23% year over year due to rising steel prices and shipping costs [139]. - Significant price increases in commodity raw materials could harm the company's financial condition and results of operations if costs cannot be recovered from customers [181]. Growth and Market Expansion - The company has experienced significant growth in contracted and awarded projects since the last earnings report, indicating a positive trend in market acceptance [106]. - The company has expanded its sales presence in multiple regions, including Australia, India, the Middle East, China, Europe, South Africa, and South-East Asia as of June 30, 2021 [124]. - The average selling price (ASP) of solar tracker systems is tracked to evaluate sales performance, with metrics related to price and cost of goods sold per megawatt (MW) being critical [108]. Compliance and Risk Management - As of June 30, 2021, the company was in full compliance with its financial condition covenants related to the credit agreement [162]. - The company has no off-balance sheet financing arrangements or liabilities, ensuring a straightforward financial position without hidden risks [175]. - The company is exposed to market risks primarily due to customer concentrations and fluctuations in prices of steel and aluminum, which could impact operating margins [180]. - The company has identified critical accounting policies related to revenue recognition and equity method investments, which require significant management judgment [177]. - There were no significant changes in critical accounting policies or estimates during the six months ended June 30, 2021, compared to the previous fiscal year [179].

Financial Performance - First quarter revenue doubled year-over-year to $65.7 million[4] - GAAP gross profit was $0.119 million, while non-GAAP gross profit was $0.182 million[13, 20] - GAAP operating loss was $8.019 million, while non-GAAP operating loss was $6.664 million[13] - GAAP net loss was $7.442 million, while non-GAAP net loss was $6.676 million[13] - Diluted EPS was $(0.11) on a GAAP basis and $(0.10) on a non-GAAP basis[13] - The company expects second quarter revenue to be between $41.0 million and $46.0 million[16] Business Highlights - Secured first sales of new SunPath performance enhancement software product[4] - Awarded two international projects in Australia[4] - Added over $280 million to executed contracts and awarded orders year-to-date, including $55 million since IPO[4] - Closed IPO adding $181 million to the company's debt-free balance sheet[4] Market and Product - Steel costs have increased 19% since the IPO[11] - Polysilicon costs have increased 49% since the IPO[11] - Freight costs have increased 18% since the IPO[11] - Module costs have increased 18% since the IPO[11]

FTC Solar, Inc. (NASDAQ:FTCI) Q1 2021 Earnings Conference Call June 8, 2021 9:00 AM ET Company Participants Tony Etnyre - President, Chief Executive Officer Patrick Cook - Chief Financial Officer Bill Michalek - Vice President, Investor Relations Conference Call Participants Michael Weinstein - Credit Suisse Pavel Molchanov - Raymond James Philip Shen - Roth Capital Partners Julien Dumoulin-Smith - BofA Securities Moses Sutton - Barclays Operator Welcome to the FTC Solar first quarter 2021 earnings conferen ...

Revenue and Growth - For the three months ended March 31, 2021, 86% of total revenue was derived from tracker system sales, with the majority coming from customers in the United States [96]. - Product revenue for Q1 2021 was $56.5 million, an increase of $26.0 million, or 85.3%, compared to $30.5 million in Q1 2020, driven by a 104% increase in MW shipped [125]. - Service revenue for Q1 2021 was $9.2 million, an increase of $7.3 million, or 384.2%, compared to $1.9 million in Q1 2020, primarily due to increased shipping and logistics revenue [126]. - Total revenue for Q1 2021 was $65.7 million, compared to $32.4 million in Q1 2020, reflecting a significant growth in both product and service revenues [123]. - Revenue growth is dependent on the increase in solar tracker projects and the company's ability to expand its market share in emerging markets [106]. Expenses and Profitability - Cost of revenue for Q1 2021 was $65.6 million, an increase of $40.2 million, or 158.3%, compared to $25.4 million in Q1 2020, mainly due to increased MW shipped and higher logistics costs [127]. - Gross profit for Q1 2021 decreased by $6.9 million, or 98%, to $119 thousand, compared to $6.98 million in Q1 2020, impacted by increased costs and lower margins [128]. - Research and development expenses for Q1 2021 were $2.0 million, an increase of $0.9 million, or 78%, compared to $1.1 million in Q1 2020 [129]. - General and administrative expenses for Q1 2021 were $5.1 million, an increase of $2.6 million, or 105%, compared to $2.5 million in Q1 2020 [131]. - The company anticipates that operating expenses will increase in absolute dollar amounts as it continues to invest in growth and expansion efforts [112]. Financial Position - Net cash used in operating activities for Q1 2021 was $27 million, primarily due to a net loss of $7.4 million, reflecting investments in operations and expansion [139]. - The company paid off its revolving line of credit with Western Alliance Bank during Q1 2021, which had an outstanding balance of $1.0 million [142]. - The company intends to maintain appropriate debt levels based on cash flow expectations and operational requirements, with potential incremental debt financings [135]. Losses and Adjusted Metrics - For the three months ended March 31, 2021, the company reported a net loss of $7,442,000 compared to a net income of $3,420,000 for the same period in 2020 [149]. - Adjusted EBITDA for the three months ended March 31, 2021, was $(6,664,000), a decrease from $3,390,000 in the same period of 2020 [149]. - Adjusted Non-GAAP net loss for the three months ended March 31, 2021, was $(6,676,000), compared to an adjusted net income of $3,430,000 in 2020 [152]. - The company reported an Adjusted EPS of $(0.10) for the three months ended March 31, 2021, down from $0.05 in the same period of 2020 [152]. Employee and Operational Expansion - As of March 31, 2021, the company had 207 full-time employees and has expanded its sales and support network globally, including locations in Australia, India, and Europe [95]. - The company plans to continue significant investments in technology and personnel to enhance product capabilities and expand its patent portfolio [98]. Supply Chain and Market Risks - The company has reduced its reliance on China for its supply chain from 90% in 2019 to qualifying suppliers outside of China for all commodities as of March 31, 2021 [100]. - The company experienced supply chain disruptions due to COVID-19, leading to increased lead times and logistics costs [101]. - The company is exposed to market risks primarily due to customer concentrations and fluctuations in steel and aluminum prices [159]. - Significant price increases in raw materials could reduce operating margins if the company cannot recover these costs from customers [160]. Accounting and Estimates - The company evaluates its estimates and assumptions regularly, acknowledging that actual results may differ significantly [159]. - There were no significant changes in critical accounting policies or estimates during the three months ended March 31, 2021 [158].