Financial Data and Key Metrics Changes - Revenue for Q4 2024 was $13.2 million, representing a 30.2% increase compared to the prior quarter but a 43.1% decrease year-over-year due to lower product volumes [27][28] - GAAP gross loss was $3.8 million, or 29.1% of revenue, compared to a gross loss of $4.3 million, or 42.5% of revenue in the prior quarter [28] - GAAP net loss was $12.2 million, or $0.96 per diluted share, an improvement from a loss of $15.4 million, or $1.21 per diluted share in the prior quarter [30] - Adjusted EBITDA loss was $9.8 million, better than guidance, compared to losses of $12.2 million in the prior quarter [31] Business Line Data and Key Metrics Changes - The company added multiples of its current annual revenue run rate to its backlog, signing agreements totaling more than 6.5 gigawatts with Tier 1 accounts [21] - The contracted portion of the company's backlog now stands at $502 million, reflecting $67 million in new purchase order additions since November 12, 2024 [31] Market Data and Key Metrics Changes - The company is seeing increasing international traction, particularly in Australia and Europe, with a focus on a specially designed tracker for the Indian market [19][24] - The bidding run rate has nearly doubled compared to the second quarter of the previous year, indicating strong market demand [18] Company Strategy and Development Direction - The company is focused on converting its backlog into revenue and achieving quarterly profitability in 2025 [13][26] - The strategy includes enhancing domestic content capabilities and increasing international project engagements [18][19] - The company aims to provide value through easier, faster, and safer installations, which is critical in a stressed labor market [22][24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's recovery and growth prospects, highlighting a clear inflection point in the adoption of its differentiated technology [10][25] - The company anticipates a back-half weighted year, with significant growth expected in the second half of 2025 [48] Other Important Information - The company ended the quarter with $11.2 million in cash and has additional liquidity from a $3.2 million earn-out and an upsized note offering expected to bring in $10 to $15 million [32] - The company is also focused on improving its supply chain management to mitigate exposure to steel price volatility [74] Q&A Session Summary Question: Can you share the mix of 1P versus 2P in the five-gigawatt agreement with Recurrent Energy? - The agreement will predominantly utilize 1P technology, with a mix of 1P and 2P based on geographical considerations [39][44] Question: What is the revenue outlook for Q2 and Q3? - The company expects Q2 to potentially be flat compared to Q1, with a focus on execution and project completion [50] Question: How much faster is the 1P technology compared to previous estimates? - The 1P technology is still expected to be 30% to 40% faster, with a focus on safety and efficiency in installation [61] Question: What are the target gross margins for the business in the long term? - The company aims to align its gross margins with peers, with expectations of improvement as volume increases [67][70] Question: How is the company managing supply chain exposure amid steel price volatility? - The company has limited exposure as it secures steel at the time of purchase order negotiation, mitigating risks associated with price fluctuations [74]

FTC Solar (FTCI) Q4 2024 Earnings Call March 31, 2025 02:36 PM ET Company Participants Bill Michalek - Vice President of Investor Relations & Corporate CommunicationsYann Brandt - President & CEOCathy Behnen - Chief Financial Officer Conference Call Participants Philip Shen - Managing Director, Senior Research AnalystJeffrey Osborne - Analyst Operator Good day and thank you for standing by. Welcome to the FTC Solar Fourth Quarter twenty twenty four Earnings Conference Call. At this time, all participants ar ...

Financing and Investment - The company entered into a Securities Purchase Agreement, selling $15.0 million in senior secured promissory notes and warrants, with the notes maturing on December 4, 2029[29]. - The warrants, valued at $5.2 million, are exercisable for 10 years at an exercise price of $0.10 per share, allowing the purchase of up to 1,750,000 shares[30]. - As of December 31, 2024, the company had $11.2 million in cash and cash equivalents, down from $25.2 million in 2023[384]. - The estimated fair value of the company's Warrants was approximately $9.5 million as of December 31, 2024[385]. Business Operations and Strategy - In 2024, the company announced new project awards for delivery of up to 1 gigawatt of tracker technology with multiple energy partners[31]. - The company operates primarily in the U.S. and Australia, with 66% of spending on partners located in the U.S. and 11% in China[45]. - The company aims to increase market share in the U.S. and expand internationally, enhancing tracker product offerings and reducing operating costs[53]. - The company is focused on reducing reliance on China and enhancing its U.S.-based supply chain through investments like Alpha Steel[59]. - The company launched its SUNOPS and SUNPATH software to optimize tracker performance and maximize energy production[37]. - The company has expanded its Voyager tracker portfolio to accommodate ultra-large-format modules and improved wind speed tolerance up to 150 miles per hour[35]. - The company competes with major players in the tracker industry, including Array Technologies and GameChange Solar, focusing on product performance and total cost of ownership[77]. Financial Performance - During the year ended December 31, 2024, four customers contributed approximately 71% of total revenue, a significant increase from 72% in 2023[387]. - At December 31, 2024, three customers accounted for approximately 74% of total accounts receivable, compared to four customers accounting for 86% in 2023[386]. - The company is exposed to credit risks within the solar industry, necessitating ongoing evaluation of credit loss allowances[388]. Research and Development - The company reported research and development costs of $5.9 million for the year ended December 31, 2024, which includes employee salaries and benefits[79]. - The company holds 49 patents in the United States and 4 in Australia, with issued U.S. patents expected to expire between 2027 and 2043[81]. Environmental and Social Responsibility - The company has maintained ISO 14001:2015 certification since 2018, demonstrating its commitment to environmental management[62]. - The company has invested in diversifying its supplier base to mitigate climate-related risks and enhance operational resilience[74]. - The company’s workforce includes 164 males and 38 females, reflecting a commitment to diversity[82]. - The company has implemented a Women's Innovation Network to support the advancement of women in the workplace[84]. - The company’s Scope 1 emissions are primarily from a fleet of light-duty trucks, while Scope 2 emissions are associated with purchased electricity[63]. Workforce and Governance - As of December 31, 2024, the total headcount was 202, a decrease from 213 in 2023, with notable reductions in operations and support[82]. - The board of directors consists of seven members, including five independent members, ensuring governance and oversight[70]. Market Trends - The Inflation Reduction Act of 2022 provides a 30% investment tax credit for solar projects starting construction by the end of 2032, declining thereafter[48]. - Solar generation in the U.S. is projected to increase by 34% in 2025 and 17% in 2026 due to capacity additions[51]. Supply Chain and Material Risks - The company does not procure raw materials directly but is subject to indirect risks from fluctuating prices of commodities like steel and aluminum[389].

Financial Performance - Fourth quarter revenue was $13.2 million, representing a 30.2% increase compared to the prior quarter but a 43.1% decrease year-over-year due to lower product volumes [8]. - The company reported a GAAP gross loss of $3.8 million, or 29.1% of revenue, compared to a gross loss of $4.3 million, or 42.5% of revenue in the prior quarter [9]. - Total revenue for Q4 2024 was $13,202,000, a decrease of 43% compared to $23,201,000 in Q4 2023 [24]. - Gross profit for Q4 2024 was a loss of $3,837,000, compared to a profit of $692,000 in Q4 2023 [24]. - Net loss for the year ended December 31, 2024, was $48,606,000, slightly improved from a net loss of $50,290,000 in 2023 [30]. - U.S. GAAP revenue for Q4 2024 was $13,202,000, a decrease of 43% compared to $23,201,000 in Q4 2023 [34]. - For the year ended December 31, 2024, U.S. GAAP revenue was $47,355,000, a decline from $127,002,000 in 2023 [34]. - The total net loss for the year ended December 31, 2024, was $(48,606,000), compared to $(50,290,000) in 2023 [41]. Cash Flow and Assets - Cash and cash equivalents decreased to $11,247,000 as of December 31, 2024, down from $25,235,000 in 2023 [27]. - Total assets decreased to $89,928,000 in 2024, compared to $123,070,000 in 2023 [27]. - Total liabilities increased to $70,892,000 in 2024, up from $60,599,000 in 2023 [27]. Operating Expenses - Non-GAAP operating expenses for the fourth quarter were $7.4 million, a decrease from $10.8 million in the year-ago quarter [10]. - U.S. GAAP operating expenses for Q4 2024 were $9,591,000, down 23% from $12,428,000 in Q4 2023 [35]. - The company is focusing on improving cash flow and reducing operating expenses in the upcoming year [31]. - Stock-based compensation for the year ended December 31, 2024, was $5,412,000, down from $8,295,000 in 2023 [41]. - The company incurred severance costs of $638,000 in 2024, significantly reduced from $4,422,000 in 2023 [41]. Future Outlook - The contracted backlog now stands at approximately $502 million, reflecting net purchase order additions since November 12, 2024 [7]. - A new 5-gigawatt supply arrangement was entered into with Recurrent Energy, with expected project revenue beginning in the second half of 2025 [12]. - The company expects first quarter revenue to be up approximately 44% relative to the fourth quarter, with guidance set between $18.0 million and $20.0 million [13]. - The company anticipates achieving adjusted EBITDA breakeven on a quarterly basis within 2025 [14]. Margins and Profitability - The gross margin percentage for the fourth quarter was -25.6%, compared to 4.8% in the prior year [7]. - Non-GAAP gross profit for Q4 2024 was $(3,382,000), compared to $1,114,000 in Q4 2023, resulting in a Non-GAAP gross margin percentage of -25.6% [34]. - Adjusted EBITDA for Q4 2024 was $(9,840,000), slightly improved from $(10,050,000) in Q4 2023 [36]. - The company reported a loss from operations of $52,830,000 for the year, compared to a loss of $50,777,000 in 2023 [24]. - Adjusted EBITDA for the year was not disclosed but is used as a supplemental measure of performance [31]. Management Changes - The company appointed Kent James as U.S. Chief Commercial Officer to strengthen its sales team [6]. Other - An additional $3.2 million earn-out on a prior investment was received post-quarter end, bringing total earn-outs since 2021 to over $15 million [20]. - A reverse stock split was implemented effective November 29, 2024, with a ratio of 1-for-10 [44].

AUSTIN, Texas, March 31, 2025 (GLOBE NEWSWIRE) -- FTC Solar,Inc. (NASDAQ:FTCI), a leading provider of solar tracker systems, today announced financial results for the fourth quarter that endedDecember 31, 2024. "In addition to reporting favorable quarterly results relative to our targets, I'm pleased to say that we have had a number of recent wins and building momentum," said Yann Brandt, President and Chief Executive Officer of FTC Solar. "Last quarter I highlighted a new 1-gigawatt supply agreement with D ...

Core Viewpoint - FTC Solar, Inc. is set to report its fourth quarter and full year 2024 financial results on March 31, 2025, before market open [1] Group 1: Financial Reporting - The company will hold a conference call at 8:30 a.m. E.T. on the same day to discuss its financial results, outlook, and other business matters [2] - The conference call will be accessible via webcast and will have a replay available for 30 days [2] Group 2: Company Overview - FTC Solar, founded in 2017, specializes in solar tracker systems, technology, software, and engineering services [3] - The company's solar trackers enhance energy production by optimizing solar panel orientation, offering a competitive installation cost-per-watt advantage [3]

Core Viewpoint - FTC Solar, Inc. is set to report its fourth quarter and full year 2024 financial results on March 31, 2025, before market open, indicating a significant upcoming event for investors [1]. Financial Results Announcement - The company will hold a conference call at 8:30 a.m. E.T. on the same day to discuss its financial results, outlook, and other business matters, which will be accessible via webcast [2]. Company Overview - FTC Solar, founded in 2017, specializes in solar tracker systems, technology, software, and engineering services, enhancing energy production by optimizing solar panel orientation [3]. - The company's innovative tracker designs offer strong performance and reliability, boasting an industry-leading installation cost-per-watt advantage [3].

Company Overview - FTC Solar, Inc. is a leading provider of solar tracker systems, software, and engineering services, founded in 2017 by renewable energy industry veterans [3] - The company specializes in solar trackers that enhance energy production by optimizing solar panel orientation, offering a competitive installation cost-per-watt advantage [3] Leadership Appointment - Kent James has been appointed as Chief Commercial Officer for North America, effective January 6, 2025, to lead FTC's North American commercial strategy [1] - Kent James brings over 20 years of experience in the solar industry, having previously served in various roles including SVP of Sales and Development at Primoris Renewable Energy, where he contributed to the company's growth to a top 5 industry leader with revenues exceeding $1 billion [2][3] - His strategic and relationship-driven approach is expected to strengthen FTC's market position and drive significant revenue growth [2] Market Position and Growth Potential - FTC Solar is recognized for its exceptional product portfolio, which is well-regarded in the industry and has a strong growth potential [2] - The company has a robust pipeline of projects and aims to expand its relationships within the solar market [2]

Supply Chain and Supplier Diversification - FTC Solar reported a significant reduction in reliance on Chinese suppliers, decreasing from 90% in 2019 to less than 20% as of the date of the report[131]. - As of September 30, 2024, the company has qualified suppliers outside of China for certain commodities to mitigate tariff impacts[131]. - The company has invested in Alpha Steel to enhance its U.S.-based supply chain and reduce reliance on international suppliers[131]. - The company is focused on diversifying its manufacturing partnerships and optimizing transportation costs to address supply chain disruptions[134]. Product and Technology Development - The company introduced the SUNOPS cloud-based solar asset monitoring solution in August 2023 and plans to launch the Automated Hail Stow Solution in May 2024[137]. - The introduction of new products and technology is part of the company's strategy to attract and retain customers and enhance user experience[137]. Financial Performance - Total revenue for the three months ended September 30, 2024, was $10,136,000, a decrease of 66.8% compared to $30,548,000 for the same period in 2023[151]. - Product revenue decreased by 72.8% to $7,411,000, down from $27,274,000, primarily due to an 82% decrease in MW produced[153][154]. - Service revenue decreased by 16.8% to $2,725,000, down from $3,274,000, attributed to a 29% decrease in ASP and lower engineering consulting revenues[153][155]. - Total revenue for the nine months ended September 30, 2024, was $34,153,000, a decrease of 67.1% compared to $103,801,000 for the same period in 2023[168]. - Product revenue decreased by 66.5% to $27,092,000 in 2024 from $80,927,000 in 2023, primarily due to a 73% decrease in the amount of MW produced[169][170]. - Service revenue fell by 69.1% to $7,061,000 in 2024 from $22,874,000 in 2023, attributed to a 63% decrease in MW delivered and a 16% decrease in ASP[171]. - Total cost of revenue increased to $42,910,000 in 2024, a 55.4% decrease from $96,186,000 in 2023, leading to a gross loss of $8,757,000[172]. - Gross margin percentage for the nine months ended September 30, 2024, was negative 25.6%, compared to a positive 7.3% in 2023[173]. Expenses and Losses - Gross profit for the three months ended September 30, 2024, was a loss of $4,306,000, compared to a profit of $3,379,000 in 2023, resulting in a gross margin of -42.5%[151][158]. - Research and development expenses were $1,467,000, a decrease of 23.6% from $1,921,000, with R&D expenses as a percentage of revenue increasing to 14.5%[161]. - Selling and marketing expenses decreased by 62.0% to $2,406,000 from $6,324,000, with selling and marketing costs as a percentage of revenue at 23.7%[163]. - General and administrative expenses were $6,797,000, down 40.4% from $11,411,000, with G&A expenses as a percentage of revenue at 67.1%[165]. - The net loss for the three months ended September 30, 2024, was $15,359,000, compared to a net loss of $16,937,000 in 2023[151]. - The company reported a net loss of $36.371 million for the nine months ended September 30, 2024, compared to a net loss of $39.113 million for the same period in 2023, representing a 7% improvement[227]. - Adjusted EBITDA for the nine months ended September 30, 2024, was $(33.280) million, compared to $(24.097) million for the same period in 2023, indicating a decline in performance[227]. Cash Flow and Liquidity - The company incurred net cash used in operations of $18.0 million for the nine months ended September 30, 2024, compared to $46.4 million for the same period in 2023[191]. - Working capital decreased by approximately $35.0 million from $53.8 million at December 31, 2023 to $18.9 million at September 30, 2024[194]. - The company plans to issue $15 million in long-term senior secured promissory notes to address liquidity needs[185]. - The company had $8.3 million in cash and cash equivalents as of September 30, 2024, with no debt outstanding[231]. - Cash equivalents included $1.8 million in money market fund deposits as of September 30, 2024, down from $13.9 million at December 31, 2023[232]. Market Risks and Customer Concentration - The company is exposed to market risks due to customer concentrations and fluctuations in steel and aluminum prices, which could impact financial performance[229]. - The company relies on a small number of customers that account for a significant portion of revenue, increasing credit risk exposure[235]. - The company regularly evaluates reserves for potential credit losses based on expected lifetime credit losses[235]. Stock and Equity - The company’s common stock was transferred to the Nasdaq Capital Market due to non-compliance with the minimum bid price requirement[184]. - The company has not issued any dividends in its history and does not expect to issue dividends over the life of option grants[212]. - The company utilized Monte Carlo simulations for certain awards granted with market conditions, estimating the average present value based on up to 250,000 simulation paths[213]. Other Financial Metrics - The diluted adjusted net loss per share for the nine months ended September 30, 2024, was $(0.27), compared to $(0.22) for the same period in 2023[227]. - Stock-based compensation for the three months ended September 30, 2024, was $1,319 thousand, up from $1,192 thousand in the same period of 2023[224]. - The company did not identify any impairments of long-lived assets, intangible assets, or goodwill during the nine months ended September 30, 2024, and 2023[218]. - The weighted-average common shares outstanding for diluted shares was 127,380,292 for the three months ended September 30, 2024, compared to 119,793,821 for the same period in 2023[225].

Financial Data and Key Metrics Changes - Revenue for Q3 2024 was $10.1 million, a decrease of 11.3% compared to the prior quarter and a decrease of 66.8% year-over-year due to lower product volumes [34] - GAAP gross loss was $4.3 million, or 42.5% of revenue, compared to a gross loss of $2.3 million, or 20.5% of revenue in the prior quarter [35] - GAAP net loss was $15.4 million, or $0.12 per diluted share, compared to a loss of $12.2 million, or $0.10 per diluted share in the prior quarter [37] - Adjusted EBITDA loss was $12.2 million, which was better than the midpoint of guidance, compared to losses of $10.5 million in the prior quarter [38] - The company ended the quarter with $8.3 million in cash on the balance sheet [39] Business Line Data and Key Metrics Changes - Over 70% of current purchase orders are in the 1P category, indicating a significant shift from previous quarters where 1P revenues were only 16% and 30% in Q2 and Q3 respectively [13] - The company has transitioned from a 2P only company to one that offers both 1P and 2P solutions, significantly increasing the total addressable market [15] Market Data and Key Metrics Changes - The company is seeing strong growth in the Northeast and Southwest U.S. markets, with opportunities expanding in the Southeast due to high wind product offerings [46] - The company has signed a multi-year supply agreement with Strata Clean Energy for at least 500 megawatts of 2P trackers, which could expand to over 1 gigawatt [28] Company Strategy and Development Direction - The company is focused on expanding its 1P product offerings, which now include high wind solutions and compatibility for various module types, to capture a larger market share [14] - The management believes that the company is poised to achieve quarterly profitability in 2025, driven by strong margins and a robust product cost structure [25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the solar market's resilience, noting that solar has experienced growth regardless of political changes [48] - The company expects to see continued improvement in revenue, margin, and adjusted EBITDA in Q4, with a target of achieving adjusted EBITDA breakeven on a quarterly basis in 2025 [41] Other Important Information - The company entered into a binding term sheet for a $15 million promissory note, which is expected to close by the end of November [21] - The company received an additional $4.7 million in cash from an earn-out on a prior investment, improving its liquidity position [39] Q&A Session Summary Question: What proportion of the backlog is coming from 1P revenues? - Management indicated that about 70% of signed purchase orders are in the 1P category, with expectations for revenue growth from this segment [43] Question: How is the geographic distribution of projects? - The company has a diverse geographic focus, with strong growth in the Northeast, Southwest, and Southeast markets [46] Question: What is the breakeven revenue range? - Management confirmed that the breakeven revenue range remains at $50 million to $60 million, consistent with previous discussions [51] Question: What is the outlook for 2025 revenue guidance? - Management expects about 60% of the signed backlog to start recognizing revenue in 2025, indicating strong growth potential [53] Question: Will there be opportunities for 1P in the Strata supply agreement? - Currently, the agreement is for 2P delivery, but there are expectations for future opportunities to cross-sell between 1P and 2P products [54]