Wallbox N.V.(WBX)2024-05-09 16:00Financial Data and Key Metrics Changes - Q1 2024 revenue was €43.1 million, up 23% year-over-year, driven by EV market seasonality and impacted by softer AC sales in the US [7] - Gross margins were 39.6%, positively impacted by cost engineering, strategic sourcing, and lower transportation costs [8] - Adjusted EBITDA loss tightened to €13.5 million, representing a year-over-year improvement of 38% [9][33] - Consolidated cash, cash equivalents, and financial instruments were approximately €83 million at the end of March [36] Business Line Data and Key Metrics Changes - AC sales contributed €29.9 million, representing approximately 69% of global consolidated revenue, down 1 percentage point from last year [11] - DC revenue increased by more than 100% year-over-year, contributing 19% of total revenue, a 9 percentage point increase from the prior year [12] - ABL results were in line with expectations, with a focus on cross-selling opportunities [7][10] Market Data and Key Metrics Changes - Europe contributed €36.5 million of consolidated sales, or 85% of total revenue, growing by almost 30% year-over-year [10] - North America contributed €4.7 million, impacted by an inventory adjustment at a specific retailer [10] - APAC and LATAM contributed €1.3 million and approximately €600,000, respectively [10] Company Strategy and Development Direction - The company is focused on growing sales in key geographies, including North America, Germany, and Western Europe, and in attractive market verticals like commercial applications and public DC fast charging [46] - Plans to expand gross margins through cost engineering, quality improvements, and strategic sourcing [48] - Emphasis on aligning the cost base with market realities through thoughtful R&D spending and disciplined OpEx allocation [49] Management's Comments on Operating Environment and Future Outlook - Management believes the long-term potential of the EV industry remains solid despite current economic dynamics and market volatility [27] - The company aims to exit the current period in a strong competitive position, leveraging its diversified product portfolio [28] - Expectations for close to breakeven adjusted EBITDA in Q2 2024 due to new product introductions and strong traction in North America [9][32] Other Important Information - The company is integrating ABL and has launched the eM4 product across key markets in Europe [20] - A commercial agreement with Generac has been established, expected to provide significant long-term commercial opportunities [23][24] - Inventory levels have decreased by 5% from the previous quarter, with a goal to continue reducing total inventory by the end of the year [38][39] Q&A Session Summary Question: Does Tesla's charging news create opportunities for Wallbox in the U.S. or Europe? - Management sees positive implications for customers, as it allows for more installations and increased sales of chargers [54] Question: Have there been changes in U.S. utilities regarding bidirectional charging technology? - Initial programs are underway in California, with significant opportunities arising from partnerships with OEMs like Kia [58] Question: What drove the significant increase in average price per AC unit? - The increase is attributed to a shift towards commercial charging, which is generally more expensive, and a reduction in discounts [63][66] Question: What is the expected revenue contribution from ABL for the quarter? - ABL is expected to contribute between €50 million to €65 million for the year, despite a softer market in Europe [70] Question: How are DC sales expected to ramp up in 2024 and 2025? - DC sales are projected to grow between 80% to 120% year-over-year, driven by the rollout of Supernova in North America [71][73] Question: How are operations in Texas progressing and what is the margin profile for DC? - Operations in Arlington are efficient, with potential gross margins for DC products expected to exceed 40% [79]