Fluence Energy(US:FLNC)2025-02-10 21:09Financial Performance - Total revenue for Q4 2024 was $186.8 million, a decrease of 48.6% compared to $364.0 million in Q4 2023[16]. - Gross profit for Q4 2024 was $21.2 million, down from $36.4 million in the same quarter last year, representing a decline of 41.8%[16]. - Net loss for Q4 2024 was $57.0 million, compared to a net loss of $25.6 million in Q4 2023, indicating an increase in losses of 122.5%[16]. - The company reported a loss per share of $0.32 for Q4 2024, compared to a loss per share of $0.14 in Q4 2023[16]. - The company experienced a comprehensive loss of $54.1 million in Q4 2024, compared to a comprehensive loss of $23.9 million in Q4 2023, reflecting an increase of 126.5%[18]. - For the three months ended December 31, 2024, the net loss was $57,013,000 compared to a net loss of $25,556,000 for the same period in 2023, representing an increase in loss of 123%[23]. - Operating cash flow for the three months ended December 31, 2024, was a net cash used of $211,232,000, a significant decrease from the net cash provided of $19,363,000 in the same period of 2023[23]. - Total revenue for the three months ended December 31, 2024, was $186.788 million, a decrease of approximately 48.6% from $363.956 million in the same period of 2023[87]. - Revenue from energy storage products and solutions was $169.752 million in Q4 2024, down from $356.941 million in Q4 2023, indicating a decline of about 52.5%[87]. Assets and Liabilities - Cash and cash equivalents increased to $607.4 million as of December 31, 2024, up from $448.7 million at the end of Q3 2024, reflecting a growth of 35.4%[14]. - Total assets rose to $2.21 billion as of December 31, 2024, compared to $1.90 billion at the end of Q3 2024, marking an increase of 16.4%[14]. - Total current liabilities were $1.26 billion, slightly up from $1.26 billion in Q3 2024, indicating a marginal increase of 0.4%[14]. - Total stockholders' equity decreased to $529.3 million as of December 31, 2024, down from $607.1 million at the end of Q3 2024, a decline of 12.8%[14]. - The company’s total liabilities included a deferred revenue increase of $316,723,000 for the three months ended December 31, 2024, compared to $99,051,000 in the same period of 2023[23]. - The company’s inventory as of December 31, 2024, was valued at $543.415 million, compared to $182.601 million as of September 30, 2024, reflecting a substantial increase[93]. - The company’s total accruals increased to $476.985 million as of December 31, 2024, up from $338.311 million as of September 30, 2024[99]. Cash Flow and Financing - The company raised $400,000,000 from the issuance of 2030 Convertible Senior Notes during the financing activities[23]. - As of December 31, 2024, the cash, cash equivalents, and restricted cash totaled $654,409,000, an increase from $476,557,000 at the end of the previous period[23]. - The Company issued $400.0 million in aggregate principal amount of 2.25% convertible senior notes due 2030 in December 2024[75]. - The Company has issued 2030 Convertible Senior Notes with a principal amount of $400 million, carrying an effective interest rate of 2.82%[123]. - As of December 31, 2024, the net carrying value of the 2030 Convertible Senior Notes is $389.1 million, with a fair value of $414.4 million[123]. - The Company recorded net interest income of $0.0 million for the three months ended December 31, 2024, compared to $0.1 million for the same period in 2023[115]. - The Company recognized total interest expense of $571,000 for the three months ended December 31, 2024, including $475,000 in coupon interest and $96,000 in amortization of debt issuance costs[125]. Research and Development - Research and development expenses for Q4 2024 were $17.2 million, an increase of 11.4% from $15.4 million in Q4 2023[16]. - The company expects operating expenses to increase in the near future due to investments in additional resources to support growth[208]. - Research and development expenses are anticipated to rise as the company invests in technology and product roadmap goals[209]. Revenue Recognition and Contracts - Revenue recognition is primarily derived from energy storage products and solutions, operational services, and digital applications, with significant contracts having lead times of 12 to 18 months[42][43]. - The company’s revenue from services includes long-term agreements for operational services related to battery-based energy storage products, recognized ratably over the service term[51]. - The company assesses variable consideration using an expected value method, which includes estimates of potential project delays and performance specifications[46]. - The company’s contracts may incur additional costs, which are typically recovered through change orders with customers, creating timing differences in revenue recognition[48]. - As of December 31, 2024, the company had $5.1 billion in remaining performance obligations, with an expectation to recognize approximately 60% of this amount in revenue over the next 12 months[91]. Legal and Regulatory Matters - The company is fully cooperating with an SEC investigation regarding its financial reporting[147]. - Fluence is seeking approximately $37.0 million in damages from Diablo Energy Storage, LLC due to nonpayment for an energy storage facility project[146]. - Diablo Energy Storage, LLC has filed a cross-complaint against Fluence, claiming at least $25.0 million in damages and seeking disgorgement of approximately $230.0 million[146]. Market and Competitive Landscape - The utility-scale battery storage market is projected to add approximately 2,529 GWh between 2024 and 2035, driven by the global transition towards renewable energy[186]. - The energy storage sector is highly competitive, with new entrants continuously emerging, necessitating the company to innovate and address customer needs effectively[192]. - Revenue growth is directly tied to the adoption of energy storage solutions and the company's ability to increase market share in competitive regions[204]. - The company anticipates continued growth in electricity demand, which is expected to increase demand for energy storage solutions globally[189]. Stock and Compensation - Fluence has 2,928,143 stock options outstanding under the 2020 Unit Option Plan with no unrecognized stock compensation expense[162]. - The 2021 Incentive Award Plan has reserved 9,500,000 shares of Class A common stock for issuance to management and employees[165]. - As of December 31, 2024, there are 2,914,001 restricted stock units (RSUs) outstanding with unrecognized stock compensation expense of $34.9 million[166]. - The company recorded total stock-based compensation expense of $5.308 million for the three months ended December 31, 2024, compared to $5.630 million for the same period in 2023[173].