Energy Vault(NRGV)2024-11-12 22:25Financial Performance - Revenue for Q3 2024 decreased by $171.0 million to $1.2 million compared to $172.2 million for Q3 2023, and for the nine months ended September 30, 2024, it decreased by $210.6 million to $12.7 million compared to $223.3 million for the same period in 2023[121]. - Cost of revenue for Q3 2024 decreased by $164.3 million to $0.7 million compared to $165.1 million for Q3 2023, and for the nine months ended September 30, 2024, it decreased by $200.7 million to $9.1 million compared to $209.8 million for the same period in 2023[124]. - Gross profit for Q3 2024 was $483,000, a decrease of $6.7 million compared to $7.1 million for Q3 2023, and for the nine months ended September 30, 2024, gross profit was $3.6 million, down $9.9 million from $13.5 million for the same period in 2023[120]. - Loss from operations for Q3 2024 was $(27.1) million, an increase of $5.8 million compared to $(21.2) million for Q3 2023, and for the nine months ended September 30, 2024, the loss was $(79.6) million, a decrease of $2.9 million from $(82.5) million for the same period in 2023[120]. - Revenue from the sale of energy storage products for Q3 2024 was $811,000, down from $172.1 million in Q3 2023, and for the nine months ended September 30, 2024, it was $11.5 million compared to $222.9 million for the same period in 2023[122]. - The net loss for the nine months ended September 30, 2024, was $74.0 million, compared to a net loss of $76.3 million for the same period in 2023[142]. Cost Management - The company anticipates annual cost savings of $6.0 million to $8.0 million from recently implemented cost-saving measures[102]. - Operating expenses for Q3 2024 totaled $27.6 million, a decrease of $826,000 compared to $28.4 million for Q3 2023, while for the nine months ended September 30, 2024, total operating expenses were $83.2 million, down $12.9 million from $96.1 million for the same period in 2023[120]. - Research and development expenses decreased by $2.5 million to $5.7 million for the three months ended September 30, 2024, compared to $8.2 million for the same period in 2023, primarily due to cost controls and headcount reduction[127]. - General and administrative expenses increased by $1.5 million to $17.3 million for the three months ended September 30, 2024, compared to $15.8 million for the same period in 2023, mainly due to a $1.9 million increase in the provision for credit losses[128]. - Stock-based compensation expense for the nine months ended September 30, 2024, was $29.4 million, down from $34.5 million in the same period of 2023[151]. Revenue Streams and Future Outlook - Energy Vault's new bookings for the three months ended September 30, 2024, amounted to $137.4 million, compared to $170.5 million for the same period in 2023[104]. - The developed pipeline reached $2.73 billion, with a total capacity of 10.7 GWh as of September 30, 2024[104]. - The backlog as of September 30, 2024, was $264.4 million, down from $314.9 million in the same period of 2023[104]. - The company expects future revenue of $90.7 million from recent equipment supply and offtake agreements, which include both fixed and variable pricing components[102]. - The Company expects to generate future revenue from the sale of GESSs and through tolling arrangements related to energy storage systems it intends to own and operate[109]. Market Conditions and Risks - The energy storage market is projected to grow at a 27% compound annual growth rate through 2030, with annual additions reaching 110 GW/372 GWh[97]. - Inflationary pressures and supply chain disruptions are identified as potential risks that could impact revenue and profit generation[98][100]. - The Inflation Reduction Act is expected to enhance the economics of energy storage solutions, potentially accelerating market adoption[101]. - The company faces foreign currency risk as a portion of its revenue and operating expenses are incurred in currencies other than the U.S. dollar, which may adversely affect its results of operations[159]. - Inflation could impact the company's operations due to higher material, labor, and construction costs, potentially affecting its financial condition and results of operations[160]. - Credit risk is present as the company relies on its customers for revenue, and the loss of significant customers could negatively impact its cash flows and results[161]. - The company is exposed to commodity price risk from fluctuating market prices of raw materials like cement, steel, aluminum, and lithium, which could reduce operating margins if costs increase[163]. Cash Flow and Financing - Total cash, cash equivalents, and restricted cash decreased to $77.7 million as of September 30, 2024, from $145.6 million as of December 31, 2023[136]. - Net cash used in operating activities for the nine months ended September 30, 2024, was $(21.0) million, a significant improvement from $(116.1) million in the same period of 2023[141]. - Cash used in investing activities increased to $48.1 million in the nine months ended September 30, 2024, from $33.2 million in 2023, primarily due to property and equipment purchases[144]. - Cash provided by financing activities was $0.6 million for the nine months ended September 30, 2024, a turnaround from cash used of $4.7 million in the same period of 2023[145]. - The company has entered into an open market sales agreement to sell shares of common stock with an aggregate offering price of up to $50.0 million[135]. Accounting and Compliance - The company is classified as an "emerging growth company" and will continue to take advantage of the extended transition period for new financial accounting standards until the end of 2026[156]. - The company has not made any changes to its critical accounting policies and estimates compared to those disclosed in the 2023 Annual Report[155]. - The company has not yet recognized any revenue related to certain licensing agreements where collectability is uncertain[137].