FTC Solar(US:FTCI)2022-03-15 16:50Financial Data and Key Metrics Changes - Fourth quarter revenue grew approximately 92% sequentially and 130% year-over-year, significantly exceeding guidance due to revenue pull forward from Q1 [9][30] - GAAP gross loss was $8.6 million, or 8.4% of sales, an improvement from a gross loss of $4.8 million in the prior year period [31] - GAAP net loss was $23.9 million, or $0.25 per share, compared to a loss of $9.7 million, or $0.15 per share in the year-ago quarter [33] - Adjusted EBITDA loss was $16.4 million, at the low end of the guidance range, primarily due to a $3 million reserve for potential customer credit [34] Business Line Data and Key Metrics Changes - The company added three more contracts to its SunPath offering, bringing the total to seven, and launched a new turnkey DG offering targeting the sub 20 megawatt segment [10][11] - Contracts and awarded orders as of March 14th totaled $606 million, with expected delivery dates in 2022 and beyond [35] Market Data and Key Metrics Changes - The company anticipates annual revenue growth of about 62% for 2022, significantly outpacing market growth [12][39] - The bidding activity has increased significantly following a seasonally slow holiday period, with expectations for resolution on WRO [36] Company Strategy and Development Direction - The company announced its intent to acquire HX Tracker, a strategic move to accelerate international expansion and enhance product offerings [12][19] - The acquisition is expected to generate $59 million in revenue and $4 million of EBITDA accretion in 2023, and $67 million in revenue and $7 million in 2024 [19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about long-term growth opportunities in the U.S. and increasing traction internationally, despite challenges in the current operating environment [22][23] - The company is focused on improving gross margins through various initiatives, including reducing steel content and optimizing logistics [87] Other Important Information - The company completed its initial public offering in April 2021, strengthening its balance sheet [20] - Management announced a leadership change, with Patrick Cook transitioning to Chief Commercial Officer and Phelps Morris appointed as the new CFO [24][25] Q&A Session Summary Question: What drove the significant pull forward in revenues? - Management indicated that several factors contributed, including supplier collaboration and customer requests for additional project progress [43] Question: What is the geographic mix of revenue expected from the HX acquisition? - The acquisition is expected to have a robust mix across international markets, particularly in China, Africa, and the Middle East [65][69] Question: How is the company managing steel price fluctuations? - The company is refreshing project bids every two weeks to manage steel exposure and maintain margins [63] Question: What percentage of deliveries this year are expected for projects without modules? - Management confirmed that some developers are placing orders for trackers even without 100% certainty on module availability [82][85] Question: What are the risks associated with the transition from Q1 to Q2 margins? - Management acknowledged various risks, including external factors like WRO and AD/CVD, but emphasized a strong focus on controllable aspects to achieve margin improvement [88]