Wallbox N.V.(US:WBX)2023-11-10 03:00Financial Data and Key Metrics Changes - For Q3 2023, revenue was €32.5 million, down year-over-year due to continued channel destocking [15][31] - Adjusted EBITDA loss was €16.6 million, showing a €4.6 million improvement from Q2 2023 [18][32] - Gross margins were 35%, an increase from the previous quarter but lower than long-term targets [27][54] Business Line Data and Key Metrics Changes - DC charging represented 25% of revenue, while AC charging accounted for 59% and software services and accessories made up the remaining 16% [127] - Unit volumes increased by 30% year-over-year, driven by strength in the U.S. market [7][124] - Approximately 60% of DC units sold were Supernova 150, up from 40% in the prior quarter [27] Market Data and Key Metrics Changes - Europe contributed €22.7 million (70% of total revenue), North America €6.7 million (21%), APAC €2 million (6%), and LatAm €1 million (3%) [22] - Sell-through growth was 22% in Europe and APAC combined, and 16% in North America [124] Company Strategy and Development Direction - The ABL transaction, closed on November 2, is expected to transform the financial profile and provide operational synergies [24][39] - The company aims to achieve profitability in 2024, focusing on cost reduction and operational efficiency [36][82] - The strategy includes diversifying across products, markets, and geographies to reduce reliance on any single market [60] Management's Comments on Operating Environment and Future Outlook - Management noted that the current variability in EV demand is not unexpected and remains optimistic about long-term growth [19][20] - The transition from fossil fuels to alternative energy sources is expected to continue for decades, with significant investments needed for infrastructure [18][19] - Management expressed confidence in achieving breakeven or profitability by Q1 2024 [82] Other Important Information - The company has removed €38.8 million in expenses so far this year, with a target of €50 million in total reductions [31][131] - ABL generated approximately €150 million in sales with positive EBITDA in 2022, but faced challenges in 2023 due to market conditions [128][115] Q&A Session Summary Question: Expectations around reaching EBITDA positive for next year - Management expects to reach profitability for the full year in 2024, with a focus on cost-saving initiatives [35][82] Question: Contribution of ABL in the quarter - ABL did not contribute to Q3 numbers as the transaction closed on November 2, but future contributions are anticipated [68][93] Question: Seasonality impacts on gross margin - Management does not expect significant seasonality impacts on gross margin, with improvements anticipated as new products gain traction [75][100] Question: Details on the ABL acquisition process - The acquisition was competitive, with ABL being a complementary fit for Wallbox, enhancing market share and product offerings [112][111]