Beam (US:BEEM)2024-05-22 00:26Financial Data and Key Metrics Changes - Beam Global reported record first quarter revenues of $14.6 million, a 12% increase compared to the same period in 2023, attributed to increased federal sales [4][10] - The gross profit margin reached 10.2%, the highest margin ever, due to cost reductions implemented in late 2023 [4][10] - Operating expenses for Q1 2024 were $4.5 million, or 31% of revenue, compared to $3.8 million, or 30% of revenue in Q1 2023 [5] - The net loss narrowed to $3 million, or 21% of revenue, from $3.8 million, or 29% of revenue in the same period last year, marking an 8% year-over-year improvement [5][10] - Cash balance decreased to $5 million from $10.4 million at the end of 2023, primarily due to cash payments for the acquisition of Amiga [6] Business Line Data and Key Metrics Changes - The majority of revenue in Q1 2024 came from EV ARC deliveries, with contributions from European business and batteries [12] - Beam Europe's legacy business typically sees slower revenue in the first quarter but is expected to improve in the second and third quarters [19][20] - Purchase orders from Beam Europe increased by about 30% year-over-year, indicating strong demand [22][27] Market Data and Key Metrics Changes - Significant increase in commercial orders, approximately 300%, due to efforts to diversify revenue opportunities [27] - A notable $7.4 million order from the US Army was received, adding to a previous $30 million order in 2022 [27] - The company secured its first large government contract in Europe with the UK Crown Commercial Services, leading to a million-dollar order from the British Army [28][29] Company Strategy and Development Direction - The company is focused on efficiency and improving gross profitability, with cash flow as a primary objective for 2024 [35] - Beam Global is expanding its operations in Europe and the Middle East, leveraging new opportunities and partnerships [7][31] - The introduction of the EV Standard product is anticipated to generate significant gross profit, with plans for demonstration in the second half of 2024 [56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's trajectory towards cash flow, emphasizing the importance of operational improvements and cost management [18][35] - The company is optimistic about the European market, noting rapid progress and strong interest from major players [31][66] - Management highlighted the importance of the UK government's zero-emission vehicle mandates as a growth opportunity [66] Other Important Information - The company has instituted a price increase of approximately 8.25% on its base model, which is expected to positively impact future revenues [14][15] - The acquisition of Amiga has allowed Beam Global to create inventory for future periods, enhancing operational efficiency [23][24] Q&A Session Summary Question: What does the backlog and pipeline comprise of geographically and between AllCell, EV ARC, and Amiga? - The majority of the backlog is from Beam Global EV Charging Infrastructure products, with Beam Europe contributing about $3 million [38] Question: Should we expect Amiga to do around 30% over last year's amount? - Purchase orders from Amiga are up about 30% over historical norms, but this does not directly translate to a 30% increase in revenues [42][43] Question: Were there any inefficiencies in making the EV ARCs in Europe? - Initial units produced in Europe experienced some inefficiencies, but the quality is high and future production is expected to be more efficient [48][49] Question: Is the gross margin improvement simply due to increased sales volume? - Both increased sales volume and further engineering efficiencies will contribute to gross margin improvements [52][53] Question: What is the margin profile for the EV Standard product? - The first units will be more expensive, but future models are expected to have better unit economics and higher gross profitability [55][56] Question: What is the timing of the $4.3 million non-cash contingent consideration? - The $4.3 million is a current liability expected to impact the next 12 months, tied to earnouts for Beam Europe [60]