Bausch + Lomb Corporation (NYSE:BLCO) Q4 2024 Results Conference Call February 19, 2025 8:00 AM ET Company Participants George Gadkowski - Vice President of Investor Relations Brent Saunders - CEO & Chairman Sam Eldessouky - Executive VP & CFO Yehia Hashad - Head of R&D and Chief Medical Officer Conference Call Participants Patrick Wood - Morgan Stanley Joanne Wuensch - Citibank Craig Bijou - Bank of America Larry Biegelsen - Wells Fargo Robbie Marcus - JPMorgan Denis Reznik - Raymond James Operator Greetin ...

Enlight Renewable Energy Ltd (NASDAQ:ENLT) Q4 2024 Earnings Conference Call February 19, 2025 8:00 AM ET Company Participants Yonah Weisz - Director of Investor Relations Gilad Yavetz - Chief Executive Officer and Co-Founder Adam Pishl - Chief Executive Officer and Co-Founder, Clenera Nir Yehuda - Chief Financial Officer Conference Call Participants Justin Clare - ROTH Capital Partners Maheep Mandloi - Mizuho Michael Fairbanks - JPMorgan Adiel Hasidim - Bank Leumi David Paz - Wolfe Research Operator Thank y ...

Financial Data and Key Metrics Changes - Fourth quarter revenues decreased by 3.8% compared to the same period last year, with foreign exchange adjusted revenue decreasing by 3.3% [40] - For the full year, revenue decreased by 0.9% compared to the previous year, or 0.4% when adjusted for foreign exchange [45] - Adjusted EBITDA for the fourth quarter was $41.4 million, representing 11.7% of sales, compared to 13.4% in the fourth quarter of the previous year [44] - The company achieved record adjusted EBITDA of $183 million for the full year, with a margin expansion of 30 basis points compared to the prior year [39] Business Line Data and Key Metrics Changes - Automotive Climate and Comfort Solutions revenue grew by 1.7%, outpacing actual light vehicle production in key markets by 130 basis points when adjusted for foreign exchange [41] - Lumbar and massage revenue increased by 29% excluding foreign exchange, driven by ramped-up production for the Volkswagen MQB platform and several Ford models [41] - Steering Wheel Heater revenue increased by 11% excluding foreign exchange, supported by new launches with Li Auto, Honda, and General Motors [41] - Medical segment revenues increased by 9% excluding foreign exchange, with improved profitability sequentially [43] Market Data and Key Metrics Changes - The company secured $640 million in new automotive business awards in the fourth quarter, with significant success in Thermal Management products [34] - For the full year, Gentherm secured $2.4 billion in automotive new business awards, reflecting increased adoption of its innovations [38] - The company expects 2025 revenue to be between $1.4 billion and $1.5 billion, up approximately 2% when excluding a $35 million year-over-year foreign exchange headwind [50] Company Strategy and Development Direction - The company aims to leverage its technology platforms to accelerate profitable growth, focusing on operational improvements and business process standardization [60] - Gentherm is strategically realigning its manufacturing locations to optimize its footprint, targeting a 30% reduction while maintaining necessary capacity for growth [55] - The company is committed to a strong R&D focus, emphasizing a customer-centric systems-oriented approach to scaling technologies [24] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the near-term challenges in the automotive industry but remains confident in long-term growth opportunities [59] - The company expects to outgrow light vehicle production in key markets despite an uncertain environment, with a projected adjusted EBITDA margin for 2025 in the range of 12% to 13% [51] - Management is focused on maximizing asset utilization and reducing net working capital to expand margins and generate cash [67] Other Important Information - The company plans to consolidate two facilities in Monterrey, close a location in the Czech Republic, and transfer production from Shanghai to Tianjin as part of its footprint optimization strategy [54] - Gentherm's balance sheet remains strong, with a net leverage ratio of approximately 0.5 turns at year-end and ample liquidity of $414 million [47] Q&A Session Summary Question: What are the top two priorities for Gentherm in the coming quarters? - Management identified scaling core technology platforms and standardizing operating systems as the top two priorities [64][66] Question: Can you provide numbers on the savings associated with the footprint reduction? - Management indicated that while there will be headwinds this year, the footprint optimization is critical for achieving mid to high single-digit EBITDA margins over time [71][72] Question: How does Gentherm view the 2025 outlook in relation to industry production? - Management expects a slight decline in industry production but anticipates a 2% revenue increase when excluding foreign exchange [50][75] Question: What is the expected contribution of the pneumatic portfolio to revenue growth? - Management noted that the pneumatic portfolio, along with other core products, is expected to show healthy growth year-over-year [83] Question: How does the company plan to approach capital allocation? - Management plans to prioritize funding organic growth, followed by opportunistic M&A and share repurchases as appropriate [112]

Global-E Online Limited (NASDAQ:GLBE) Q4 2024 Earnings Conference Call February 19, 2025 8:00 AM ET Company Participants Amir Schlachet - Chief Executive Officer Nir Debbi - President Ofer Koren - Chief Financial Officer Erica Mannion - Sapphire Investor Relations Conference Call Participants Andrew Bauch - Wells Fargo Samad Samana - Jefferies James Faucette - Morgan Stanley Chris Zhang - UBS Brian Peterson - Raymond James Brent Bracelin - Piper Sandler Koji Ikeda - Bank of America Patrick Walravens - Citi ...

Financial Data and Key Metrics Changes - Consolidated net income for 2024 was $442 million or $2.19 per diluted share, compared to $417 million or $2.07 per share in 2023, reflecting a year-over-year increase [23] - The electric company achieved net income of $470 million or $2.33 per share, up from $426 million or $2.12 per share in 2023, driven by capital investment recovery [25] - The holding company reported a loss of $28 million or $0.14 per diluted share in 2024, compared to a loss of $10 million or $0.05 in 2023, primarily due to higher interest expenses [25] Business Line Data and Key Metrics Changes - The electric company saw a weather-normalized load growth of 7.6%, the largest annual growth in nearly 25 years, with commercial load leading at 21.4% [27] - Residential load grew by 2.4% in 2024, reinforcing overall system growth [28] - The company expects continued load growth into 2025, with a forecast of 8.5% weather-normalized growth by year-end [33] Market Data and Key Metrics Changes - Oklahoma City and Fort Smith's unemployment rates were below the national average, with Oklahoma City at 2.8%, contributing to a 1.2% increase in customer growth [14] - The company experienced exceptional load growth across various industries, including multi-unit housing, defense, and manufacturing [15] Company Strategy and Development Direction - The company is focused on reliability, growth, and affordability, with a commitment to maintaining low rates while investing in grid improvements [11] - A five-year capital plan has been rolled forward to 2029, increasing by $250 million, indicating a strong commitment to infrastructure investment [35] - The company plans to file for recovery of generation needs and a general rate review in Oklahoma by midyear, and a similar filing in Arkansas by year-end [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the financial plan, projecting a 2025 earnings guidance midpoint that is 7% higher than the previous year [32] - The company anticipates continued strong load growth and operational execution, with a long-term annual EPS growth rate of 5% to 7% [37] - Management highlighted the importance of a constructive regulatory environment in supporting growth and achieving results [12] Other Important Information - The company has nearly 450 megawatts under construction at Horseshoe Lake and an additional 100 megawatts for Tinker Air Force Base, expected to come online in 2025 [9] - The company is leveraging automation and AI to enhance customer experience and operational efficiency [9] Q&A Session Summary Question: Data center opportunities and megawatt needs - Management indicated potential opportunities in the 250 to 500 megawatt range across several discussions, but specifics on the Stillwater opportunity could not be disclosed [45][46] Question: Dividend growth in relation to EPS growth - Management reiterated a consistent approach to dividend growth, aiming for a payout ratio of 65% to 70% [49] Question: 2025 expectations and load growth sensitivity - Management was hesitant to provide specific EPS sensitivity to load growth but indicated that load growth would help mitigate regulatory lag [58][59] Question: Capital requirements for new generation solutions - Management expressed confidence in their ability to deliver generation solutions for new customers, with ongoing visibility into available resources [72] Question: Updates on RFP and potential new data center contracts - Management plans to file results of the generation RFP by mid-year and will communicate any new data center contracts as they arise [78][79] Question: Long-term load growth expectations - Management confirmed expectations for long-term load growth to remain at least 2% [120]

Financial Data and Key Metrics Changes - In Q4 2024, total revenues were $196.2 million, with solar segment revenues at $189 million, and a GAAP net loss of $287.4 million compared to a net loss of $1.23 billion in Q3 [38][45]. - The company generated approximately $26 million in free cash flow in Q4, with expectations to remain free cash flow positive in Q1 2025 [13][49]. - Non-GAAP gross margin for Q4 was negative 39.5%, an improvement from negative 305% in Q3, primarily due to impairment charges [42][43]. Business Line Data and Key Metrics Changes - Solar revenues from the US amounted to $114 million, representing 60% of total solar revenues, while European solar revenues were $44.8 million, accounting for 24% [38]. - The company shipped 384 megawatts to the US, 231 megawatts to Europe, and 280 megawatts to international markets, totaling approximately 895 megawatts [39]. - The average selling price (ASP) per watt, excluding battery shipments, was $0.208, up 2% from Q3, while the blended ASP per kilowatt hour for all PV attached batteries was $262, down from $317 in Q3 [40]. Market Data and Key Metrics Changes - In North America, sell-through was down 17% quarter-over-quarter, while sell-through in Europe was roughly flat [26][27]. - The European market remains challenged due to macroeconomic headwinds, with expectations for inventory normalization by the end of Q2 2025 [27][28]. Company Strategy and Development Direction - The company has identified four key priorities for turnaround: strengthening financials, regaining market share, accelerating innovation, and ramping up US manufacturing [12]. - The company aims to enhance its go-to-market structure and strengthen partnerships with distributors and installers to regain market share [16][17]. - New product launches, including the SolarEdge ONE Controller and the Nexus residential portfolio, are expected to enhance competitiveness and market share [20][21]. Management's Comments on Operating Environment and Future Outlook - Management acknowledged disappointing financial results in recent quarters and emphasized the need for operational changes to regain customer trust and return to growth [11][12]. - The long-term fundamentals of the solar market are considered healthy despite current uncertainties, particularly in the US market [26][28]. - Management expects to generate positive free cash flow in Q1 2025 and maintain this trend throughout the year [49][50]. Other Important Information - The company impaired and wrote off $115 million of inventory in Q4, primarily related to excess inventory in the solar business [35]. - The company plans to lower non-GAAP operating expenses to a range of $85 million to $90 million per quarter by the end of 2025 [33]. Q&A Session Summary Question: Free cash flow expectations for Q1 - Management confirmed that free cash flow will be positive in Q1 but did not disclose specific amounts due to various moving parts [54][56]. Question: Revenue recognition vs. sell-through - The gap between revenue and sell-through is primarily due to channel inventory levels in Europe, expected to normalize by the end of Q2 2025 [59]. Question: Impact of safe harbor on cash flow - Management indicated that some prepayments in the cash flow statement were related to safe harbor agreements, but specific amounts were not disclosed [62][63]. Question: Pricing actions in Europe - Management stated that pricing actions taken in Europe were aimed at regaining market share, with initial results expected in Q2 [76][94]. Question: Competitive dynamics in Europe - Management emphasized the premium nature of SolarEdge's solutions, which include advanced energy management capabilities, and noted the importance of safety and cybersecurity [96]. Question: Strategy around batteries - The company will continue to offer current battery products until new products are launched, with expectations of increased demand due to recent regulatory changes [100]. Question: Inventory levels and normalization - Management expects to normalize inventory levels in Europe by the end of the year, with ongoing manufacturing to support the US market [124].

Financial Data and Key Metrics Changes - The company executed over $75 million worth of cost actions as outlined in the previous earnings call [8] - The 2025 capital plan has been reduced to $300 to $350 million, a decrease of approximately $100 million compared to the previous year [9] - Free cash flow for 2025 is expected to improve significantly year over year, with working capital shifting from a cash use to a cash source [27][28] Business Line Data and Key Metrics Changes - The Engineered Materials business has a new leader, Todd Elliott, aimed at reducing complexity and improving results [9] - The company has achieved $250 million in synergies from the M&M acquisition, but margin degradation has been observed in some product lines [35][36] Market Data and Key Metrics Changes - The company is experiencing a rebalancing of inventory levels across the value chain, with expectations for improvement in the first quarter [68] - The acetyl business is operating below the cost curve, which is not sustainable, and the company is looking for opportunities to leverage its optionality model [75] Company Strategy and Development Direction - The company is focused on cash generation, margin expansion, productivity, and deleveraging, with a finance and business review committee established to evaluate options for improving operating model performance [10] - The company is actively pursuing divestitures of non-core assets to facilitate deleveraging [59][115] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges ahead but is energized by the opportunities, emphasizing a focus on decisive actions to drive value creation [11] - The company is not expecting significant changes in the supply-demand landscape despite new capacity coming online [75] Other Important Information - The company has reduced its footprint by eight sites since the M&M acquisition and continues to seek efficiency improvements [63] - The company is committed to maintaining a strong technical capability in its manufacturing footprint, particularly in the context of electric vehicle applications [100] Q&A Session Summary Question: Potential size and timing of divestitures - Management indicated that divestitures are being pursued aggressively, with sizes comparable to previous transactions, some smaller and some larger [14] Question: Thoughts on raising equity to help deleverage - Management stated that equity is extremely dilutive and not necessary given the strength of the debt market and ongoing cash generation efforts [16] Question: Outlook for the first half of the year - Management acknowledged that the second quarter is expected to improve but emphasized the need for transparency regarding current conditions [24] Question: Status of the M&M acquisition and EBITDA - Management confirmed that EBITDA has increased since the acquisition, but margin degradation has been observed in some product lines [35] Question: Confidence in the acetyl business amidst new capacity - Management expressed confidence that the supply-demand landscape will not significantly change, despite new capacity coming online [75] Question: Changes in divestiture strategy - Management clarified that they are evaluating all non-core assets for potential divestiture, focusing on those that do not fit the core operating model [59][115] Question: Impact of inventory reduction on EBITDA - Management indicated that the impact of deliberate inventory reduction in EM is not expected to be substantial [82] Question: Future opportunities in China - Management highlighted ongoing opportunities in China, particularly in electric vehicles, and emphasized the importance of maintaining focus in that market [130]

Etsy, Inc. (NASDAQ:ETSY) Q4 2024 Earnings Conference Call February 19, 2025 8:30 AM ET Company Participants Deb Wasser - VP of IR Josh Silverman - CEO Lanny Baker - CFO Conference Call Participants Eric Sheridan - Goldman Sachs Youssef Squali - Truist Securities Lee Horowitz - Deutsche Bank Maria Ripps - Canaccord Curtis Nagle - BofA Securities Steven Forbes - Guggenheim Mark Kelley - Stifel John Colantuoni - Jefferies Deb Wasser Hi, everyone, and welcome to Etsy's Fourth Quarter and Full Year 2024 Earnings ...

Financial Data and Key Metrics Changes - The company reported first quarter deliveries of 1,991 homes at an average price of $925,000, generating home sales revenue of $1.84 billion [6][27] - Adjusted gross margin was 26.9%, exceeding guidance by 65 basis points, while SG&A expense as a percentage of home sales revenue was 13.1%, 40 basis points above guidance [6][34] - Net income was $177.7 million or $1.75 per share diluted, below expectations primarily due to impairments and delays in joint venture land sales [26][27] Business Line Data and Key Metrics Changes - The company signed 2,307 net contracts for $2.3 billion in the first quarter, up 13% in units and 12% in dollars compared to the previous year [7][30] - The average sales price of orders remained flat compared to the fourth quarter of 2024, with a healthy deposit conversion ratio of 82% [8][10] - Spec homes represented approximately 55% of sales and 52% of deliveries, with about 3,200 spec homes in inventory at quarter end [15][18] Market Data and Key Metrics Changes - Demand was strongest in the North and Mid-Atlantic regions, with solid performance in markets like Houston, Dallas, and California [9][10] - The company noted mixed results in the spring selling season, with affordability constraints and growing inventories affecting sales, particularly at the lower end [10][12] - Approximately 26% of buyers paid all cash, with loan-to-value ratios for mortgage buyers at about 68% [14][37] Company Strategy and Development Direction - The company is maintaining its full-year guidance for deliveries, average price, adjusted gross margin, SG&A margin, and community count growth [11][39] - The long-term outlook for the new home market remains positive, particularly for the luxury niche, which constitutes over 70% of the business [12][13] - The company is actively managing spec starts based on local market conditions, expecting to reduce overall spec starts in the near term [16][19] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about sales activity, noting that while demand remains healthy, mixed results have been observed in certain markets [10][12] - The company plans to adjust land spend conservatively if the mixed market conditions persist, while still being selective in land acquisitions [63][64] - Management highlighted the importance of balancing pace and price to generate higher returns, indicating a willingness to adjust strategies based on market conditions [135][136] Other Important Information - The company ended the first quarter with over $2.3 billion in liquidity, including approximately $575 million in cash [36][37] - The company has extended the maturities of its credit facilities to February 2030 and upsized its revolver to $2.35 billion [25][37] - The company is targeting community count growth of 8% to 10% in fiscal 2025, aiming for 440 to 450 communities by year-end [19][43] Q&A Session Summary Question: Inventory levels and construction stages - Management noted that higher inventory levels were due to more specs under construction and at further stages of completion, aimed at meeting delivery guidance [51][53] Question: Spring selling season and production pipeline - If the spring selling season remains mixed, the company plans to reduce land spend and be more conservative in certain markets [62][64] Question: Gross margin outlook and pricing incentives - The company expects second quarter gross margin to be 27.25%, driven by a favorable mix of higher-margin products [68][70] Question: Demand trends in specific markets - Management indicated that while some markets are experiencing pressure, others are performing well, and recent activity has shown signs of improvement [78][79] Question: Land cost inflation and deal flow - The company is experiencing low to mid-single digit land cost inflation and is finding unique opportunities in the land market, particularly in suburban areas [117][120]

Financial Data and Key Metrics Changes - For the year 2024, net income per share was $3.12, up from $0.40 per share in 2023, marking the sixth consecutive quarter of positive EPS and fourth straight quarter of sequential earnings growth [10] - Net revenue for VYJUVEK in Q4 was $91.1 million, bringing total revenue for 2024 to $290.5 million, with gross margins consistent with prior quarters [12][46] - The company ended Q4 with $344.9 million in cash on hand and $749.6 million in total cash plus short-term and long-term investments, reflecting a quarterly growth of about $55 million [49] Business Line Data and Key Metrics Changes - VYJUVEK's U.S. launch is progressing well, tracking in the top tier of rare disease launches, with strong early signs of efficacy [7] - Jeune Aesthetics reported strong Phase 1 data for KB301, with plans to start a Phase 2 study later in 2025, achieving $341 million in net revenue within 18 months of launch [11] Market Data and Key Metrics Changes - The U.S. market for VYJUVEK has seen over 500 reimbursement approvals, with a strong access landscape continuing into 2025 [14] - The company expects to launch VYJUVEK in the EU and Japan, with over 1,000 identified deaf patients in Germany and France [30][72] Company Strategy and Development Direction - The company aims to successfully launch VYJUVEK in the EU and Japan, translate early efficacy signs into strong results across cystic fibrosis and alpha-1 antitrypsin programs, and prepare for the anticipated launch of B-VEC for treating lesions in the eye of DEB patients [8][9] - The company is committed to treating DEB globally and is progressing its second product, KB803, for ocular complications associated with DEB [33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a global peak sales estimate of over $1 billion for VYJUVEK, emphasizing the strong patient benefits and compliance rates observed [51][56] - The company is aware of potential competition in the DEB market but believes the value proposition of VYJUVEK will maintain its market share [90][91] Other Important Information - Research and development expenses for Q4 were $13.5 million, driven by increased clinical trial-related costs and manufacturing costs for pipeline candidates [47] - Selling, general, and administrative expenses for Q4 were $31.3 million, reflecting increased personnel-related costs and VYJUVEK sales and marketing costs [47] Q&A Session Summary Question: Was there any year-end stocking in Q4 for VYJUVEK? - Management confirmed there was no substantial difference in Q4 compared to previous quarters regarding stocking or inventory [61][62] Question: How is enrollment going for the CF study? - Enrollment in Cohort 3 has begun, and it is progressing well with several active sites [64][66] Question: What are the expectations for Europe in the second half of the year? - Approximately 600 patients are identified in Germany and 400 in France, with pricing strategies discussed for both markets [72][73] Question: Can you quantify the impact of the annual cap on VYJUVEK in 2024? - About 8% of commercial patients have been on the cap consistently since the beginning [102] Question: What is the update on the regulatory process? - The delay in the CHMP decision was due to the need for a favorable label, which has now been achieved [88]