Financial Performance - Revenue reached $33 million, a 27% year-over-year increase[6] - GAAP gross margin was 32%, a 127 percentage point increase year-over-year[6] - Non-GAAP gross margin was 46%, a 22 percentage point increase year-over-year[6] - Adjusted EBITDA improved by $8 million year-over-year to $(5) million[6] - Operating cash flow improved by $9 million year-over-year to $9 million[6] Recurring Revenue and Bookings - Annual Recurring Revenue (ARR) increased by 8% quarter-over-quarter and 26% year-over-year to $57 million[6] - Contracted Annual Recurring Revenue (CARR) reached $69 million in 1Q25[18] - Bookings were $34.5 million in 1Q25[18] Business Strategy and Cost Savings - Implemented targeted workforce reductions in April, driving $30 million in annualized cost savings[6] - The company is creating four distinct business units to optimize operations and drive growth: Software Products, Professional Services, Managed Services, and OEM Hardware[8, 9] 2025 Guidance - The company reaffirmed its 2025 guidance, projecting total revenue between $125 million and $175 million[7, 22] - The company projects year-end ARR between $55 million and $65 million[22]

Financial Data and Key Metrics Changes - Total revenue increased by 27% year over year, driven by strong growth across the business [18] - Software revenue rose by 17% compared to Q1 2024, reflecting continued strong performance from PowerTrack and increased storage software activations [18] - GAAP gross margin reached a record 32%, while non-GAAP gross margin was close to an all-time high at 46% [19] - Positive operating cash flow of $9 million was generated for the first time in the company's history [19] - Cash balance grew to $59 million at quarter end, with over $2 million in net cash generated during the quarter [20] Business Line Data and Key Metrics Changes - Solar annual recurring revenue (ARR) increased by 10% sequentially and 24% year over year [10] - Storage ARR grew by 4% sequentially and 31% year over year [11] - Professional services are gaining momentum, establishing the company as trusted advisors in the clean energy sector [12] Market Data and Key Metrics Changes - The company is experiencing strong bookings in the solar segment, with no significant slowdown noted despite macroeconomic uncertainties [36] - The pace of deployment for solar projects remains robust, with customers continuing to develop new projects [38] Company Strategy and Development Direction - The company has restructured into four distinct business units: software, professional services, managed services, and OEM hardware, each with full P&L responsibility [6] - A targeted 27% reduction in workforce is expected to yield $30 million in annual cash cost savings, with $24 million of that benefit realized in 2025 [7] - The focus is on growing software revenue, particularly through PowerTrack, and optimizing capital deployment towards high-growth opportunities [9] Management's Comments on Operating Environment and Future Outlook - The clean energy sector faces uncertainty due to evolving economic and regulatory policies, but the company maintains upward momentum [15] - The company expects improving profitability as it moves through the year, driven by operational cost discipline and revenue growth [13][22] - The organizational changes are seen as a significant milestone in the company's evolution, supporting a strategy shift aimed at enhancing shareholder value [24] Other Important Information - The company plans to enhance financial transparency through segment reporting, providing deeper insights into performance drivers across business lines [24] - A reverse stock split is proposed to regain compliance with New York Stock Exchange listing standards [26] Q&A Session Summary Question: How is the bookings environment evolving given the tariffs? - The OEM hardware sales are not a significant component of the business going forward, and there is active dialogue with customers regarding the impact of tariffs [32][33] Question: Are customers still contracting for storage projects? - There has not been a significant slowdown in solar bookings, and the pace of deployment remains strong [36][38] Question: What are the drivers for expected improving profitability? - Improvement is anticipated from operational expense reductions and revenue growth, with a focus on managing operating expenses effectively [40][42] Question: Can you elaborate on the brownfield opportunities mentioned? - The company is pursuing opportunities in core geographies where managed services are already established, with a broad-based approach rather than targeting specific areas [48] Question: What is the rationale for deemphasizing PowerBidder Pro? - The decision was based on growth potential and the ability to execute effectively, focusing on PowerTrack and associated offerings instead [55]