Spruce Power (US:SPRU)2021-11-16 00:07Financial Data and Key Metrics Changes - Total revenue for Q3 2021 was $3.2 million, down from $6.3 million in the same period last year and $3.7 million from the previous quarter, primarily due to ongoing supply chain issues [7][18] - Gross margin improved to 22% from 12% in the prior year, although it decreased from approximately 26% in the last quarter [8] - Adjusted EBITDA was negative $14.2 million compared to negative $6 million in the prior year [19] - Cash and cash equivalents as of September 30th were $367 million, down from $384 million last quarter but up from $330 million at the end of 2020 [20] Business Line Data and Key Metrics Changes - Revenue from the sale of drive systems in Q3 2021 was significantly impacted by a microchip shortage, leading to a decline from $6.3 million in Q3 2020 [18] - Revenue from the XL Grid division totaled $2.6 million, driven by the contribution from the World Energy acquisition completed in May 2021 [18] Market Data and Key Metrics Changes - There is growing interest in fleet electrification, particularly from municipalities and agencies affected by COVID-19 budget constraints [11] - The company anticipates increased demand due to the infrastructure bill, which includes $7.5 billion in grant funding for electric vehicle charging infrastructure [13] Company Strategy and Development Direction - The company emphasizes its flexible platform, financial stability, and comprehensive offerings as key differentiators in the market [14] - The focus is on providing a one-stop shop for electrification needs, helping customers save money and meet sustainability goals [16] - The company is positioned to navigate near-term supply chain challenges while pursuing growth opportunities [23] Management's Comments on Operating Environment and Future Outlook - Management acknowledges that unprecedented supply chain challenges are expected to continue into Q4 and extend into 2022 [23] - The appointment of Eric Tech as the new CEO is seen as a positive step for leading the next phase of electrification [24] Other Important Information - The company completed its go-public transaction at the end of the previous year, which has provided financial flexibility to navigate challenges and pursue growth [15][21] Q&A Session Summary - Management discussed the ongoing supply chain challenges and their impact on operations, indicating a commitment to invest in growth despite these issues [23] - The new CEO's appointment was highlighted as a significant development for the company's future direction [24]