Wallbox N.V.(WBX) - 2025 Q1 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Q1 2025 revenue was €37.6 million, meeting guidance but down 13% year over year and almost flat compared to the previous quarter [6][29] - Gross margin improved to 38.1%, within the guided range of 37% to 39%, reflecting a 634 basis point improvement from the last quarter [9][30] - Adjusted EBITDA loss for Q1 2025 was €7.8 million, the best result since becoming a public company, representing a 42% improvement year over year [12][32] - Labor costs and operating expenses decreased by 13% quarter over quarter and 23% year over year [11][30] Business Line Data and Key Metrics Changes - AC sales in Europe were down 14% year over year, while North America saw a 142% year over year growth, contributing €11.4 million or 30% of total revenue [15][14] - DC fast charging sales increased by 41% compared to the previous quarter, with over 36,000 AC units and more than 100 DC units delivered in Q1 [8][30] - Software and services generated €8 million in revenue, representing 21% of total revenue and a 60% increase year over year [20] Market Data and Key Metrics Changes - The European EV market showed solid growth of 21% year over year, contributing €25.5 million or 68% of total revenue [13] - North America contributed €11.4 million, with significant growth driven by AC and DC charger sales [14] - APAC and LATAM regions contributed approximately €600,000 and €480,000 respectively, indicating potential for future growth [15] Company Strategy and Development Direction - The company is focused on cost savings and expanding sales, leveraging a newly implemented business unit structure to improve efficiency [11][12] - There is a commitment to rightsizing the organization and expanding gross margins while stabilizing sales and building a strong backlog [12][27] - The company aims to become a global leader in recharging energy management solutions, with a focus on optimizing existing platforms and partnerships [37] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about stabilizing sales and building a strong backlog, despite a volatile macro environment impacting the automotive supply chain [27][38] - The company remains cautious about the impact of tariffs and economic uncertainty on the EV market, while believing in the long-term growth potential of EVs [26][27] - Future guidance for Q2 2025 includes expected revenue in the range of €37 million to €39 million and a gross margin between 37% and 39% [38] Other Important Information - The company has surpassed 100,000 chargers produced in Arlington, Texas, enhancing its production flexibility and supporting local job growth [28] - The partnership with Nissan for a home EV charging program in Canada is expected to simplify the charging journey for EV owners [17] Q&A Session Summary Question: Thoughts on ABL integration and industry consolidation opportunities - Management reported successful integration with ABL, achieving significant synergies and operational efficiency improvements, with a focus on cross-selling products across Europe [41][43] Question: Additional traction for Quasar beyond Kia - Management indicated ongoing efforts to drive demand for Quasar in Europe, with expectations for new partnerships and customer interest following recent events [51][52] Question: Competitive landscape and market opportunities - Management highlighted the competitive advantage in the US market due to local manufacturing and a focus on delivering comprehensive solutions, while noting challenges faced by competitors [56][58] Question: Expectations for product mix and its impact on margins - Management discussed the current gross margins for fast charging and home/business segments, emphasizing a strategy to reduce inventory and improve operational efficiency [65][66]