| --- | --- | --- | --- | |-----------------|---------------------------------------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | August 11, 2021 | Second Quarter 2021 Earnings Results | | | 2 Forward-Looking Statements and Non-GAAP Financial Measures This presentation contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of h ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________to__________ Commission File Number 001-40350 FTC SOLAR, INC. (Exact name of Registrant as Specified in its Charter) (State or Other Jurisdiction of Incorporati ...

June 8, 2021 First Quarter 2021 Earnings Results 2 Forward-Looking Statements and Non-GAAP Financial Measures This presentation contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, contained in this presentation, including statements regarding the Company's strategy, future operations, future financial position, future revenues, projected costs, prospects, plans and objectives of management, are forward-looking state ...

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].