Beam (BEEM) - 2024 Q2 - Quarterly Results

Q2 2024 Highlights Beam Global achieved record gross margin and revenue growth in Q2 2024, driven by strong purchase orders and a record sales pipeline, while remaining debt-free Q2 2024 Financial Highlights | Metric | Value ($) | Note | | :--- | :--- | :--- | | Revenue | $14.8 million | +2% over Q1 2024 | | Gross Margin | 16% | Record high, +6 percentage points over Q1 2024 | | Commercial Customer Revenue | 31% | Percentage of total revenue | | Backlog | $11 million | - | | Pipeline | >$183 million | Record high | | Net Cash Used (Operating) | $0.1 million | For the six months ended Q2 2024 | | Debt | $0 | Debt-free with $100M credit line available | - Operational momentum continued with Q2 purchase orders up 129% year-over-year, and over half of U.S. orders coming from new customers[2] - The company is expanding its sales channels by signing its first European distributor for EV charging and energy infrastructure products[2] CEO Commentary CEO commentary emphasizes margin improvement, cash flow progress, and strategic expansion through Beam Europe and new product development - The primary focus is on improving margins and achieving positive cash flow, with progress demonstrated by a record 18% gross margin, net of non-cash items[2] - Strategic initiatives to diversify revenue include geographic expansion (Beam Europe), recruiting external sales partners, and launching a new product in 2024[2] - A significant milestone was achieved in Europe with Beam Europe winning the UK's GSA-equivalent contract, leading to a million-dollar EV ARC™ contract from the British Army[2] Second Quarter 2024 Financial Summary Q2 2024 saw $14.8 million in revenue and a record 16% gross margin, despite increased operating expenses leading to a $4.9 million net loss, with cash improving to $8.7 million Revenues Q2 2024 revenue reached $14.8 million, a 2% sequential increase, with commercial customers contributing 31% of the total Revenue Performance | Period | Revenue ($ million) | Note | | :--- | :--- | :--- | | Q2 2024 | $14.8 | +2% vs Q1 2024 | | H1 2024 | $29.4 | - | Gross Profit Q2 2024 gross profit was $2.4 million, achieving a record 16% gross margin, or 18% excluding non-cash items, driven by cost reductions and efficiencies Gross Profit Analysis (Q2 2024) | Metric | Value ($ million) | Note | | :--- | :--- | :--- | | Gross Profit | $2.4 | - | | Gross Margin | 16% | +6 percentage points vs Q1 2024 | | Gross Profit (Net of non-cash items) | $2.7 | - | | Gross Margin (Net of non-cash items) | 18% | - | - Margin improvement drivers include engineering design changes reducing bill of materials, labor efficiencies, lower material costs, and operational improvements from the Amiga acquisition[5] Operating Expenses Q2 2024 operating expenses increased significantly to $7.1 million, primarily due to a $1.8 million non-cash charge from the Amiga acquisition Operating Expenses Comparison | Period | Operating Expenses ($ million) | Change (QoQ) ($ million) | | :--- | :--- | :--- | | Q2 2024 | $7.1 | +$2.6 | | Q1 2024 | $4.5 | - | - The increase in operating expenses is mainly attributable to a $1.8 million non-cash expense for contingent consideration (Amiga acquisition), $0.3 million for Beam Europe operations, and $0.6 million in commission expenses[5] Net Loss Q2 2024 GAAP net loss was $4.9 million ($0.34 per share), with a non-GAAP net loss of $2.1 million ($0.14 per share) after adjusting for non-cash expenses Net Loss Summary (Q2 2024) | Metric | Value ($ million) | Per Share ($) | | :--- | :--- | :--- | | GAAP Net Loss | $4.9 | $0.34 | | Non-Cash Expenses | $2.8 | - | | Non-GAAP Net Loss | $2.1 | $0.14 | Cash and Working Capital Cash increased to $8.7 million by Q2 2024 due to improved collections, with minimal net cash used in operations for the first half, and working capital at $16.0 million Cash Position | Date | Cash Balance ($ million) | | :--- | :--- | | End of Q2 2024 | $8.7 | | End of Q1 2024 | $5.0 | | End of Q4 2023 | $10.4 | - Working Capital was $16.0 million at the end of Q2 2024. The decrease from Q4 2023 was mainly due to a non-cash reclassification of contingent consideration for the Amiga acquisition to current liabilities[9] Financial Statements This section presents the unaudited condensed consolidated financial statements, including the Balance Sheet, Statement of Operations, and GAAP to Non-GAAP net loss reconciliation Condensed Consolidated Balance Sheets As of June 30, 2024, total assets were $71.9 million, total liabilities $28.5 million, and stockholders' equity $43.4 million, with $8.7 million in cash Balance Sheet Summary (in thousands) | Account | June 30, 2024 (thousands $) | Dec 31, 2023 (thousands $) | | :--- | :--- | :--- | | Total Assets | $71,914 | $77,643 | | Cash | $8,749 | $10,393 | | Total current assets | $36,274 | $40,722 | | Total Liabilities | $28,517 | $28,101 | | Total current liabilities | $20,231 | $16,874 | | Total Stockholders' Equity | $43,397 | $49,542 | Condensed Consolidated Statements of Operations Q2 2024 revenue was $14.8 million, with gross profit improving to $2.4 million, resulting in a net loss of $4.9 million ($0.34 per share) Statement of Operations Summary (in thousands, except per share data) | Metric | Q2 2024 (thousands $) | Q2 2023 (thousands $) | | :--- | :--- | :--- | | Revenues | $14,812 | $17,819 | | Gross Profit | $2,356 | $501 | | Loss from Operations | $(4,791) | $(3,541) | | Net Loss | $(4,916) | $(3,530) | | Net Loss Per Share | $(0.34) | $(0.32) | Reconciliation of Net Loss to Non-GAAP Net Loss This reconciliation adjusts the Q2 2024 GAAP net loss of $4.9 million for $2.8 million in non-cash items, yielding a Non-GAAP net loss of $2.1 million ($0.14 per share) Non-GAAP Reconciliation (Q2 2024, in thousands) | Metric | Value (thousands $) | | :--- | :--- | | GAAP Net Loss | $4,916 | | Non-cash adjustments | $(2,837) | | Fair value of contingent consideration | $(1,679) | | Non-cash compensation | $(752) | | Non-GAAP Net Loss | $2,079 |