Tigo Energy(TYGO) - 2025 Q1 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company reported total revenue of $18.8 million for Q1 2025, representing a 92.2$7.2 million, or 38.1% of revenue, compared to $2.8 million, or 28.2$4 million compared to $9.1 million in the prior year [10] - GAAP net loss for Q1 was$7 million, down from $11.5 million in the prior year [10] - Adjusted EBITDA loss decreased 67.4$2 million compared to $6.3 million in the prior year [10] Business Line Data and Key Metrics Changes - MLPE revenue represented$16 million, or 84.8% of total revenues, while OESF contributed $2 million, or 10.7$11.5 million, accounting for 61.3% of total revenues, with strong growth from Italy and The Netherlands [8][9] - The Americas region generated $4.7 million, while APAC revenue was$2.6 million, or 13.6% of total revenues [9] Company Strategy and Development Direction - The company aims to continue its growth trajectory, expecting to maintain top-line growth for the remainder of 2025 [14] - The management is focused on mitigating the impact of tariffs and expanding market share, particularly in international markets [7][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of demand for their solutions despite economic uncertainties [14] - The company is actively working with supply chain partners to address the challenges posed by tariffs [7] Other Important Information - Cash, cash equivalents, and marketable securities totaled $20.3 million as of March 31, 2025, with a slight sequential increase [12] - The company expects Q2 2025 revenues to range between$21 million and $23 million, with adjusted EBITDA projected to be between negative$1.5 million and positive 0.5 million [13] Q&A Session Summary Question: How do you break down the growth between improving conditions with current distributors and market share gains? - Management noted that most growth is attributed to increased market share, with existing distributors expanding their footprint [19][20] Question: What factors are contributing to market share gains? - The company highlighted a broad product offering, backward compatibility, and ease of installation as key factors driving market share [22][24] Question: Can you provide insight into the impact of tariffs on revenue? - Management indicated that approximately 5% of Q1 revenue was affected by the China tariff, with efforts underway to mitigate this impact [7][36] Question: What is the outlook for the second half of 2025? - Management expressed confidence in their guidance, supported by a growing backlog and positive market expectations [42][43] Question: How is the company managing the 50 million convertible due in January 2026? - The counterparty is being flexible, and the company is actively working on refinancing options [46][47] Question: What is the demand for off-grid products? - Management noted growing demand for off-grid solutions, particularly in the Midwest and South regions [40] Question: How is the company addressing inventory and sourcing challenges? - The company has sufficient inventory to mitigate tariff impacts in the short term and is exploring alternative sourcing options in Korea and Japan [60][61]