Fluence Energy(FLNC) - 2024 Q4 - Annual Results

Revenue and Financial Performance - Record revenue for fiscal year 2024 of approximately $2.7 billion, a 22% increase from fiscal year 2023, and Q4 revenue of approximately $1.2 billion, an 82% increase from the same quarter last year[4] - Total revenue for fiscal year 2024 reached $2,698,562 thousand, a 21.7% increase from $2,217,978 thousand in 2023[35] - Revenue for the three months ended September 2024 was $1,228,148 thousand, an 82.5% increase from $672,982 thousand in the same period of 2023[38] - Total revenue for the three months ended September 2024 was $1.23 billion, an 82% increase compared to $673 million in the same period in 2023[66] - The company achieved its highest ever revenue and profitability in 2024, with a backlog of $4.5 billion, driven by strong demand for battery energy storage solutions, particularly in the U.S. market[12] Profitability and Margins - GAAP gross profit margin improved to approximately 12.6% for fiscal year 2024 and 12.8% for Q4, compared to 6.4% and 11.3% in the previous year and quarter, respectively[5] - Gross profit for fiscal year 2024 was $341,080 thousand, a 142% increase from $140,955 thousand in 2023[35] - Gross profit margin for the three months ended September 2024 was 12.8%, up from 11.3% in the same period in 2023[66] Net Income and Earnings - Net income of approximately $30.4 million for fiscal year 2024 and $67.7 million for Q4, compared to a net loss of $104.8 million and net income of $4.8 million in the previous year and quarter, respectively[6] - Net income attributable to Fluence Energy, Inc. for fiscal year 2024 was $22,716 thousand, a significant improvement from a loss of $69,620 thousand in 2023[35] - Net income attributable to Fluence Energy, Inc. for the three months ended September 2024 was $47,843 thousand, compared to $3,229 thousand in the same period of 2023[38] - Net income for the fiscal year ended September 30, 2024, was $30.367 million, a significant improvement from a loss of $104.818 million in 2023 and $289.177 million in 2022[43] - Net income for the three months ended September 2024 was $67.7 million, a 1,306% increase compared to $4.8 million in the same period in 2023[66] Adjusted EBITDA - Adjusted EBITDA of approximately $78.1 million for fiscal year 2024 and $86.9 million for Q4, compared to negative $61.4 million and $19.8 million in the previous year and quarter, respectively[7] - Adjusted EBITDA for the three months ended September 2024 was $86.9 million, a 338% increase compared to $19.8 million in the same period in 2023[66] Cash and Liquidity - Total cash of approximately $518.7 million as of September 30, 2024, an increase of $56.0 million from September 30, 2023[8] - Cash and cash equivalents increased to $448.7 million in September 2024 from $345.9 million in September 2023, reflecting a 29.7% growth[32] - Cash, cash equivalents, and restricted cash increased to $518.706 million at the end of 2024, up from $462.731 million in 2023[45] - Net cash provided by operating activities was $79.685 million in 2024, a significant improvement from a net cash used in operating activities of $111.927 million in 2023[43] - Free Cash Flow for the fiscal year ended September 2024 was $71.6 million, a 162% increase compared to $(114.9) million in the same period in 2023[68] Backlog and Order Intake - Quarterly order intake of approximately $1.2 billion, compared to $737 million for the same quarter last year, with backlog increasing to $4.5 billion as of September 30, 2024, from $2.9 billion a year ago[8] - Order intake for energy storage products in the fiscal year ended September 30, 2024, was 5.2 GW, a 136.4% increase from 2.2 GW in 2023[52] - Contracted backlog for energy storage products grew by 63.0% to 7.5 GW in 2024, compared to 4.6 GW in 2023[52] - Contracted backlog for digital contracts rose by 55.9% to 10.6 GW in 2024, up from 6.8 GW in 2023[52] - Order intake (Contracted) represents new energy storage, service, and digital contracts, providing visibility into future revenue and sales effectiveness[58] Pipeline and Future Growth - Pipeline for energy storage products expanded by 111.5% to 25.8 GW in 2024, up from 12.2 GW in 2023[52] - Pipeline for digital contracts surged by 164.3% to 64.5 GW in 2024, compared to 24.4 GW in 2023[52] - Pipeline represents uncontracted potential revenue with a reasonable likelihood of execution within 24 months, monitored for anticipated growth[59] - Pipeline may not generate margins equal to historical operating results, and there is no guarantee it will result in actual revenue as anticipated[60] Assets and Liabilities - Total current assets grew to $1.68 billion in September 2024 from $1.19 billion in September 2023, a 40.6% increase[32] - Total assets grew to $1.9 billion in September 2024 from $1.35 billion in September 2023, a 40.7% increase[32] - Total liabilities increased to $1.3 billion in September 2024 from $795.8 million in September 2023, a 62.7% rise[32] - Total stockholders' equity grew to $607.1 million in September 2024 from $556.3 million in September 2023, a 9.1% increase[33] - Accounts payable surged to $436.7 million in September 2024 from $65.4 million in September 2023, a 567.8% increase[32] - Inventory, net, decreased to $182.6 million in September 2024 from $224.9 million in September 2023, a 18.8% decline[32] - Deferred revenue remained relatively stable at $274.5 million in September 2024 compared to $273.2 million in September 2023[32] - Intangible assets, net, increased to $60.0 million in September 2024 from $55.8 million in September 2023, a 7.6% rise[32] Expenses and Investments - Research and development expenses for fiscal year 2024 were $66,195 thousand, slightly lower than $66,307 thousand in 2023[35] - Sales and marketing expenses for fiscal year 2024 increased to $63,842 thousand, up 55.3% from $41,114 thousand in 2023[35] Comprehensive Income and Earnings Per Share - Total comprehensive income attributable to Fluence Energy, Inc. for fiscal year 2024 was $17,674 thousand, compared to a loss of $69,202 thousand in 2023[40] - Basic income per share of Class A common stock for fiscal year 2024 was $0.18, compared to a loss of $0.60 per share in 2023[35] - Total other comprehensive loss for fiscal year 2024 was $7,085 thousand, compared to a gain of $601 thousand in 2023[40] Energy Storage and Digital Contracts - Energy storage products deployed increased by 66.7% to 5.0 GW in 2024, up from 3.0 GW in 2023[52] - Assets under management for service contracts increased by 53.6% to 4.3 GW in 2024, compared to 2.8 GW in 2023[52] - Contracted backlog may not generate margins equal to historical operating results, and there is no guarantee it will result in actual revenue as anticipated[57] - Annual Recurring Revenue (ARR) represents net annualized contracted value, excluding non-recurring revenue, providing visibility to future revenue[61] - Annual recurring revenue (ARR) expected to reach approximately $145 million by the end of fiscal year 2025[10] Guidance and Future Outlook - Fiscal year 2025 revenue guidance of approximately $3.6 billion to $4.4 billion, with a midpoint of $4.0 billion, and 65% of the midpoint covered by current backlog[10] - Adjusted EBITDA guidance for fiscal year 2025 of approximately $160 million to $200 million, with a midpoint of $180 million[10]