Wallbox N.V.(WBX) - 2024 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - In Q2 2024, the company reported revenue of EUR 48.8 million, representing a 48% year-over-year increase, driven by strong sales in North America, particularly in AC and DC segments [9][20] - Gross margins stood at 39.1%, showing a 936 basis points improvement compared to the same period last year, attributed to cost engineering and strategic sourcing efforts [11][21] - The adjusted EBITDA loss was EUR 11.2 million, a 47% year-over-year improvement, indicating progress towards profitability [12][22] Business Line Data and Key Metrics Changes - AC sales in North America grew significantly, contributing EUR 32.2 million, which is 66% of total revenue, and showed a 55% year-over-year improvement [14] - DC revenue increased by 64% year-over-year, contributing 22% of total revenue, driven by strong demand for the Supernova 180 and the introduction of the Supernova 220 [16][17] - The ABL segment continued to contribute positively, with notable installations such as 424 eM4 charging points in Germany [10] Market Data and Key Metrics Changes - In Q2 2024, North America experienced a 65% growth in revenue compared to the previous year, while Europe saw a 44% increase despite a softer market environment [13] - The overall EV market showed mixed growth, with a 19% increase in global EV sales, 11% in North America, and a 3% decrease in Europe year-over-year [19] Company Strategy and Development Direction - The company secured a $45 million strategic investment, primarily from Generac, to strengthen its balance sheet and support growth initiatives [5][24] - Wallbox is focusing on expanding its product portfolio and strategic partnerships, such as with Free2Move and Generac, to enhance market presence and sales [15][31] - The introduction of new products like the Supernova 220 aims to meet customer demands for higher power charging solutions [17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about long-term growth in the EV market, despite current market slowdowns, and emphasized the importance of strategic partnerships and product diversification [19][26] - The company remains committed to achieving positive adjusted EBITDA by the end of the year, despite challenges in the market [28][29] Other Important Information - The company ended the quarter with EUR 65.2 million in cash and equivalents, positioning it well for future growth and operational needs [24] - Inventory was reduced by 5% sequentially, indicating effective inventory management strategies [25] Q&A Session Summary Question: Will the company achieve positive EBITDA in Q4 2024? - Management confirmed that they are aiming for positive adjusted EBITDA by year-end, with June showing positive results [28] Question: What are the additional capital needs following the recent funding? - Management stated that the recent funding strengthens the balance sheet and does not anticipate additional funding until the company generates positive cash flow [29] Question: What are the drivers behind the strong AC unit sales despite market softness? - Management highlighted strategic agreements and product portfolio expansion as key drivers for AC sales growth in North America [30][31]