Core Insights - The article discusses a long-term, contrarian approach to equities investing, emphasizing the importance of navigating the energy transition in the context of commodities and energy sectors [1]. Group 1: Investment Strategy - The investment strategy focuses on a long-term perspective, which may involve taking positions contrary to prevailing market trends [1]. - The analyst has transitioned from a focus solely on technology to also covering commodities and energy, reflecting the evolving market landscape [1]. Group 2: Analyst Background - The analyst has 10 years of experience in investment banking, specializing in industry and company research [1]. - The article is authored by an individual who expresses personal opinions and does not have any financial interests in the companies mentioned [1].

Financial Data and Key Metrics Changes - The company reported revenue of $3.8 million for Q2 2024, reflecting a decrease compared to the previous year due to project timing and percentage of completion accounting [20] - Gross margin improved to 27.8%, up from 9.8% year-over-year, indicating a favorable revenue mix as projects were completed [20] - Adjusted EBITDA was negative $15.8 million, an improvement of 12% year-over-year, with adjusted operating expenses declining by 23% to $16.9 million [21][22] Business Line Data and Key Metrics Changes - The company is focusing on owning and operating specific projects, with notable projects including the largest green hydrogen storage project in the U.S. and a battery project in Texas [8][9] - The backlog increased to $264 million, reflecting new long-term service agreements and projects with ACEN in Australia, up approximately 17% since the last Analyst Day [13] Market Data and Key Metrics Changes - The developed pipeline reached $2.8 billion, with over half associated with projects from existing customers or strategic partners, indicating strong confidence in conversion to contract bookings [12] - The company is expanding its regional presence with new projects in Australia and Brazil, highlighting growth in key markets [19] Company Strategy and Development Direction - The company outlined a strategy focusing on high-growth regions for energy storage, predictable revenue streams, and optimizing product mix for profitability [4][5][6] - A new hybrid gravity and lithium-ion energy storage project was announced in Sardinia, Italy, showcasing the company's innovative approach to energy storage [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the structural trends in the energy storage industry, particularly due to increased demand for renewable energy solutions driven by generative AI and data centers [15] - The company aims to leverage its unique technology and solution-based approach to create a competitive advantage in the energy storage market [16] Other Important Information - The company maintains a strong balance sheet with over $110 million in cash and no debt, positioning itself well for future growth [14][23] - Management expects adjusted operating expenses to be reduced by $3 million to $4 million in the second half of 2024 [22] Q&A Session Summary Question: Focus on owning and operating specific projects - Management clarified that there is no specific technology focus for owning and operating projects, but rather an emphasis on project economics and financing attractiveness [25][26] Question: Performance update for Rudong EDx system - Management is awaiting final approval for full operation and is currently measuring performance metrics [27][28] Question: Revenue guidance and pipeline opportunities - Management highlighted the importance of converting projects from the developed pipeline into actual bookings to meet revenue guidance [30][31] Question: Balance between build and transfer vs. own and operate - Management indicated that the decision is based on the attractiveness of the project rather than being purely customer-driven [34][36] Question: Implementation timeframe for new projects - Management noted that the new modular pumped hydro system is expected to move quickly due to existing infrastructure and prior testing [41][43] Question: Development of the software layer - Management confirmed that the software is productized and has been successfully operating across multiple projects, with potential for standalone sales [46][50]

NRGV LISTED NYSE Energy Vault The Energy Storage Company Financial Results | Second Quarter 2024 © 2024 ENERGY VAULT HOLDINGS INC. - ALL RIGHTS RESERVED Disclaimer Forward-Looking Statements This presentation includes forward-looking statements that reflect the Company's current views with respect to, among other things, the Company's operations and financial performance. Forward-looking statements include information concerning possible or assumed future results of operations, including descriptions of our ...

Energy Vault Holdings, Inc. (NRGV) came out with a quarterly loss of $0.18 per share versus the Zacks Consensus Estimate of a loss of $0.11. This compares to loss of $0.18 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -63.64%. A quarter ago, it was expected that this company would post a loss of $0.14 per share when it actually produced a loss of $0.14, delivering no surprise. Over the last four quarters, the company has no ...

NERGY VAULT® a a Renewable Wor Investor & Analyst Day UNLOCKING THE VAULT NEW YORK, 9 MAY 2024 Disclaimer Forward-Looking Statements This presentation includes forward-looking statements that reflect the Company's current views with respect to, among other things, the Company's operations and financial performance. Forward-looking statements include information concerning possible or assumed future results of operations, including descriptions of our business plan and strategies. These statements offen incl ...

(Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q OR o 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 001-39982 ___________________________________ ENERGY VAULT HOLDINGS, INC. ____________________ ...

Energy Vault Holdings, Inc. (NRGV) closed the most recent trading day at $1.23, moving -1.6% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 0.46%. Meanwhile, the Dow lost 0.98%, and the Nasdaq, a tech-heavy index, lost 0.64%.The company's stock has dropped by 27.75% in the past month, falling short of the Oils-Energy sector's gain of 4.21% and the S&P 500's loss of 3.04%.Investors will be eagerly watching for the performance of Energy Vault Holdings, Inc. i ...

Company Overview and Market Position - The company has a limited operating history and has only built two Battery Energy Storage Systems (BESSs) and one Gravity Energy Storage System (GESS) to date, which may affect investment decisions [77]. - The company expects future growth to be driven by rising demand for clean electric power solutions and a rapidly growing energy storage market, but predicting future revenues is challenging due to limited operating history [78]. - The company operates in a highly competitive environment, with significant competition from established players that may have more resources and advanced technologies [134]. - The growth of the company is dependent on the pace of renewable energy adoption and energy storage technologies, which are still emerging industries [129]. - The energy storage market is driven by the installed capacity of renewable electricity generation, and any relaxation of government requirements could negatively impact market demand [131]. Financial Performance and Projections - Revenue for the year ended December 31, 2023, was $341,543 million, a significant increase from $145,877 million in 2022, representing a growth of 134% [398]. - Gross profit decreased to $17,531 million in 2023 from $59,297 million in 2022, indicating a decline of 70% [398]. - Operating expenses rose to $124,267 million in 2023, up from $119,550 million in 2022, reflecting an increase of 4% [398]. - The net loss for 2023 was $98,443 million, compared to a net loss of $78,299 million in 2022, representing an increase in losses of 26% [398]. - The company anticipates significant expenses and continuing losses for the foreseeable future, with no assurance of achieving profitability [76]. - The company’s projections for revenues and profitability are subject to significant risks and uncertainties, which may cause actual results to differ materially from expectations [79]. Customer and Revenue Dependence - The company relies on a limited number of customers for the majority of its revenue, and the loss of any significant customer could substantially reduce revenue and impact liquidity [82]. - The company’s energy storage systems involve lengthy sales and installation cycles, which could harm business if sales are not closed regularly [76]. - The lengthy sales cycle for energy storage systems could range from 18 to 36 months for EVx systems and 9 to 18 months for BESSs, impacting revenue recognition [169]. - There is no assurance that non-binding letters of intent will convert into binding orders, which could lead to lower than expected operating results and cash flows [99]. Operational Risks and Challenges - The company faces risks associated with construction, cost overruns, and delays, which could adversely affect its business and financial condition [76]. - The performance of the energy storage systems may not meet customer expectations, potentially affecting future sales and cash flows [95]. - The company faces risks related to the cancellation of customer contracts, which could lead to unrecoverable costs [174]. - The company relies on third-party suppliers for components, and any failure in their delivery could result in installation delays and reputational damage [104]. - The company may need to raise additional capital to support its operations, which could be dilutive to stockholders [165]. Regulatory and Compliance Issues - Legal and regulatory restrictions related to energy storage systems could increase compliance costs and expose the company to litigation risks, adversely affecting its financial condition [117]. - The company is subject to increased regulations regarding environmental impacts, which may incur significant additional costs and affect its supply chain [152]. - The regulatory environment is evolving, and compliance with laws and regulations may incur substantial costs, potentially impacting profitability [226]. - The company is subject to significant governmental scrutiny, which could adversely affect its operations and reputation [230]. Intellectual Property and Technology Risks - The company faces significant risks related to intellectual property rights, including potential infringement claims that could lead to substantial costs and impact business operations [185]. - The complexity of the company's software and technology systems poses risks of defects that could harm business and financial results if not addressed [198]. - The company may incur significant costs related to the maintenance and protection of its intellectual property, which could be compromised if cash flow from operations is insufficient [183]. - The company utilizes open-source software, which may expose it to legal claims and require significant resources to manage compliance with licensing terms [190]. Human Resources and Management - The company is highly dependent on key management personnel, and the loss of any key employee could disrupt operations and negatively impact business prospects [140]. - The company faces intense competition for skilled personnel in the renewable energy and energy storage sectors, which could hinder its growth and operational success [140]. - As of December 31, 2023, the company employed 179 full-time employees and 4 part-time employees, with only one employee covered by a collective bargaining agreement [142]. Financial Condition and Capital Structure - As of December 31, 2023, total assets decreased to $340.8 million from $416.7 million in 2022, representing a decline of approximately 18.2% [396]. - Cash and cash equivalents dropped significantly from $203.0 million in 2022 to $109.9 million in 2023, a decrease of about 45.7% [396]. - The accumulated deficit increased from $147.3 million in 2022 to $248.1 million in 2023, indicating a rise of approximately 68.4% [396]. - The company has approximately $55.2 million, $38.6 million, and $79.1 million of federal, state, and foreign net operating loss carryforwards, respectively [175]. - The company has outstanding warrants to purchase an aggregate of 5,166,666 private warrants and can issue up to 23,768,666 shares under its 2022 Equity Incentive Plan [242]. Market and Economic Factors - Economic uncertainty, including inflation and interest rate fluctuations, has negatively impacted demand for the company's products, potentially leading to lower revenues [145]. - The volatility in fuel prices could decrease incentives for transitioning to renewable energy, adversely affecting the company's business and revenue [153]. - Government incentives, such as rebates and tax credits, are critical for the company's revenue; any reduction or elimination of these incentives could harm financial results [208]. - The Inflation Reduction Act (IRA) passed in August 2022 is expected to support the adoption of energy storage products, potentially benefiting the company [209].

Financial Performance - FY 2023 revenue reached $341.5 million, representing a 134% increase year-over-year and an 18% increase quarter-over-quarter, within the annual guidance range[1]. - Total revenue for the year ended December 31, 2023, was $341,543, an increase of 134% compared to $145,877 in 2022[18]. - Gross profit for the year ended December 31, 2023, was $17,531, down 70% from $59,297 in 2022, resulting in a gross margin of 5.1%[18]. - Net loss for the year ended December 31, 2023, was $98,443, compared to a net loss of $78,299 in 2022, reflecting a 26% increase in losses[20]. - GAAP net loss for Q4 2023 was $22,172,000, compared to a loss of $23,277,000 in Q4 2022[25]. - Adjusted EBITDA for Q4 2023 was $(14,815,000), an increase in loss from $(11,180,000) in Q4 2022[25]. - Total net loss for the year 2023 was $98,443,000, compared to $78,299,000 in 2022[25]. Cash Position - Cash position improved to $146 million with no debt, exceeding prior guidance of $132 million from Q3 2023[1]. - Total cash and cash equivalents improved by $13.4 million compared to Q3 2023, reaching $145.6 million as of December 31, 2023[9]. - Cash and cash equivalents at the end of the period were $109,923, a decrease of 46% from $203,037 at the end of 2022[20]. - The company experienced a net cash used in operating activities of $92,655 for the year, compared to $23,346 in 2022, indicating a substantial increase in cash outflow[20]. Expenses and Liabilities - The company aims to reduce quarterly cash operating expenses by 25-30% in 2024, targeting a range of $13-15 million[1]. - Research and development expenses for the year were $37,104, a decrease of 13% from $42,605 in 2022[24]. - Adjusted selling and marketing expenses for the year were $10,983, an increase of 47% from $7,471 in 2022[24]. - The company reported a significant increase in stock-based compensation expense, totaling $43,097 for the year, compared to $41,058 in 2022[20]. - Stock-based compensation expense for Q4 2023 was $8,574,000, down from $14,301,000 in Q4 2022[25]. - The company incurred $584,000 in reorganization expenses during the year 2023[25]. - Total liabilities decreased to $116,960, down 9% from $129,000 in 2022[16]. Future Outlook - The company expects Q1 2024 revenue to align with Q1 2023, with stronger double-digit gross margins anticipated due to the shift of revenue recognition[4]. - The company expects future expenses similar to those adjustments noted in the financial results[26]. - Energy Vault plans to host an Investor and Analyst Day on May 8, 2024, to announce new products and provide financial guidance[4]. Operational Developments - The commercial pipeline grew by 24.5 GWh year-over-year, up 89%, and increased by 5.8 GWh quarter-over-quarter, up 12.6%[1]. - Construction commenced on the largest green hydrogen ultra-long duration energy storage micro-grid system in the US, expected to be operational by mid-2024[4]. - Energy Vault secured a $20 million 10-year gravity technology license and royalty agreement covering 16 countries in Southern Africa, with a total addressable market of 125 GWh through 2035[9]. Financial Metrics and Adjustments - Adjusted EBITDA is not a measure of financial performance under GAAP and should not be considered an alternative to net loss[27]. - Limitations of adjusted EBITDA include not reflecting cash expenditures or future capital requirements[27]. - Depreciation and amortization for the year 2023 totaled $893,000, significantly lower than $7,743,000 in 2022[25].

Part I - Financial Information [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) The company's financial statements reflect a revenue shift to BESS construction, impacting gross margin and net loss [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets and liabilities decreased, driven by a significant reduction in cash and accounts payable Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | Sep 30, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $74,236 | $203,037 | | Total current assets | $245,115 | $390,067 | | Total Assets | $300,537 | $416,713 | | **Liabilities & Equity** | | | | Total current liabilities | $58,923 | $125,323 | | Total liabilities | $62,249 | $129,000 | | Total stockholders' equity | $238,288 | $287,713 | | Total Liabilities and Stockholders' Equity | $300,537 | $416,713 | [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) Revenue surged from BESS projects, but a lower margin and higher expenses widened the company's net loss Statement of Operations Summary (in thousands, except per share data) | Metric | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | | Revenue | $223,307 | $45,555 | | Gross Profit | $13,514 | $43,361 | | Loss from operations | $(82,539) | $(37,343) | | Net loss | $(76,271) | $(55,022) | | Net loss per share | $(0.54) | $(0.46) | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash used in operations and investing increased significantly, leading to a substantial net decrease in cash Cash Flow Summary (in thousands) | Activity | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | | Net cash used in operating activities | $(116,050) | $(47,795) | | Net cash used in investing activities | $(33,182) | $(2,679) | | Net cash provided by (used in) financing activities | $(4,655) | $220,207 | | Net increase (decrease) in cash | $(153,960) | $169,610 | [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail the revenue shift to energy storage products, a backlog of $255.5 million, and significant commitments - The company adopted ASU 2016-13 (Credit Losses), resulting in a cumulative effect adjustment to accumulated deficit of **$2.4 million**[50](index=50&type=chunk) - As of September 30, 2023, the company's remaining performance obligations (backlog) totaled **$255.5 million**, with approximately **50% expected to be recognized as revenue in the next twelve months**[58](index=58&type=chunk) - As of September 30, 2023, the company had significant commitments including **$57.0 million** in non-cancelable purchase obligations, **$79.7 million** in letters of credit, and **$198.0 million** in outstanding performance and payment bonds[124](index=124&type=chunk)[126](index=126&type=chunk)[129](index=129&type=chunk) Revenue by Category (in thousands) | Category | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | | Build and transfer energy storage products | $222,739 | $1,153 | | Licensing of intellectual property | $0 | $42,884 | | Other | $568 | $1,518 | | **Total revenue** | **$223,307** | **$45,555** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the business model shift to BESS projects, which increased revenue but lowered gross margins [Key Operating Metrics](index=31&type=section&id=Key%20Operating%20Metrics) The company reported bookings of 400 MWh and a total backlog of $255.5 million as of September 30, 2023 - Backlog as of September 30, 2023, totaled **$255.5 million**, which aligns with the company's remaining performance obligations[155](index=155&type=chunk)[157](index=157&type=chunk) Bookings Summary | Metric | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | | Bookings [MWh] | 400 | 495 | | Bookings [$ in thousands] | $170,478 | $256,794 | [Results of Operations](index=33&type=section&id=Results%20of%20Operations) Revenue grew significantly from BESS projects, but gross margin fell sharply from 95.2% to 6.1% year-over-year - The significant increase in revenue for the nine months ended Sep 30, 2023 was primarily due to **$222.7 million** related to building and transferring energy storage products (BESS projects)[174](index=174&type=chunk)[175](index=175&type=chunk) - Gross profit margin for the nine months ended Sep 30, 2023 was **6.1%**, a sharp decrease from **95.2%** in the same period of 2022, which was attributable to high-margin intellectual property licensing revenue[180](index=180&type=chunk)[181](index=181&type=chunk) - G&A expenses for the nine months ended Sep 30, 2023 increased by **$19.0 million** year-over-year, driven by a **$15.3 million** increase in personnel-related expenses, including higher stock-based compensation[188](index=188&type=chunk) [Liquidity and Capital Resources](index=35&type=section&id=Liquidity%20and%20Capital%20Resources) Total cash decreased to $132.2 million, with management asserting sufficiency for the next twelve months - Net cash used in operating activities for the nine months ended Sep 30, 2023, was **$116.1 million**, primarily impacted by a net loss of **$76.3 million** and a **$71.3 million** decrease in operating liabilities[201](index=201&type=chunk)[202](index=202&type=chunk) Cash Position (in thousands) | Account | Sep 30, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Cash and cash equivalents | $74,236 | $203,037 | | Restricted cash | $57,986 | $83,145 | | **Total** | **$132,222** | **$286,182** | [Non-GAAP Financial Measures](index=37&type=section&id=Non-GAAP%20Financial%20Measures) Adjusted EBITDA was a loss of $47.3 million, a significant decline from a loss of $0.2 million in the prior year Reconciliation of Net Loss to Adjusted EBITDA (in thousands) | Line Item | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | | Net loss (GAAP) | $(76,271) | $(55,022) | | Stock-based compensation expense | $34,523 | $26,757 | | Transaction costs | $0 | $20,586 | | Other adjustments | $(5,560) | $7,495 | | **Adjusted EBITDA (non-GAAP)** | **$(47,298)** | **$(184)** | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=39&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to market risks including foreign currency, inflation, credit, and commodity prices - The company is exposed to **foreign currency risk**, **inflation risk**, **credit risk** from customers, and **commodity price risk** for materials such as cement, steel, aluminum, and lithium[221](index=221&type=chunk)[223](index=223&type=chunk)[224](index=224&type=chunk)[225](index=225&type=chunk) [Item 4. Controls and Procedures](index=40&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls were deemed ineffective due to a material weakness in revenue recognition controls - The CEO and CFO concluded that disclosure controls and procedures were **not effective** as of September 30, 2023[227](index=227&type=chunk) - A **material weakness** was previously identified related to revenue recognition, specifically the failure to implement effective background check controls for an international customer's ability to pay[229](index=229&type=chunk) - A remediation plan is underway, but the material weakness **cannot be considered remediated** until the applicable controls have operated effectively for a sufficient period of time[231](index=231&type=chunk) Part II - Other Information [Item 1. Legal Proceedings](index=42&type=section&id=Item%201.%20Legal%20Proceedings) Current legal proceedings are not expected to have a material adverse effect on the company's business - The company states that the outcome of current legal proceedings would not individually or in the aggregate have a **material adverse effect** on its business[234](index=234&type=chunk) [Item 1A. Risk Factors](index=42&type=section&id=Item%201A.%20Risk%20Factors) Unfavorable U.S. economic conditions are highlighted as a supplemental risk to business operations - A supplemental risk factor was added concerning **unfavorable U.S. economic conditions**, including rising interest rates and potential government default or shutdown, which could adversely affect the company's business and ability to raise capital[236](index=236&type=chunk) [Other Items (Items 2, 3, 4, 5, 6)](index=42&type=section&id=Other%20Items) No material information was reported under Items 2 through 5, and Item 6 lists filed exhibits - **No information was reported** for Item 2 (Unregistered Sales of Equity Securities), Item 3 (Defaults Upon Senior Securities), Item 4 (Mine Safety Disclosures), and Item 5 (Other Information)[237](index=237&type=chunk)[238](index=238&type=chunk)[239](index=239&type=chunk)[240](index=240&type=chunk)