| --- | --- | --- | --- | |-----------------|---------------------------------------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 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 ...

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].

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].