ENERGY VAULT HOLDINGS, INC. Energy Vault
The Energy
Storage Company
Financial Results | First Quarter 2024
© 2024 ENERGY VAULT HOLDINGS INC. - ALL RIGHTS RESERVED
Disclaimer
Forward-Looking Statements
This presentation includes forward-looking statements that reflect the Company's current views with respect to, among other things, the Company's operations and financial performance. Forward-looking statements include information concerning possible or assumed future results of operations, including descriptions of our business plan and strategies. These statements often include words such as " anticipate," "expect," "suggest," "plan," "believe," "intend," "project," "forecast," "estimates," "targets," "projections," "should," "could," "would," "may," "might," "will" and other similar expressions. We base these forward-looking statements or projections on our current expectations, plans and assumptions, which we have made in light of our experience in our industry, as well as our perceptions of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances at the time. These forward-looking statements are based on our beliefs, assumptions and expectations of future performance, taking into account the information currently available to us. These forward-looking statements are only predictions based upon our current expectations and projections about future events. These forward-looking statements involve significant risks and uncertainties that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements, including changes in our strategy, expansion plans, customer opportunities, future operations, future financial position, estimated revenues and losses, projected costs, prospects and plans; the implementation, market acceptance and success of our business model and growth strategy; our ability to develop and maintain our brand and reputation; developments and projections relating to our business, our competitors, and industry; the ability of our suppliers to deliver necessary components or raw materials for construction of our energy storage systems in a timely manner; the impact of health epidemics, including the COVID- 19 pandemic, on our business and the actions we may take in response thereto; our expectations regarding our ability to obtain and maintain intellectual property protection and not infringe on the rights of others; expectations regarding the time during which we will be an emerging growth company under the JOBS Act; our future capital requirements and sources and uses of cash; our ability to obtain funding for our operations and future growth; our business, expansion plans and opportunities and other important
factors discussed under the caption "Risk Factors" in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2024
and in our Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC as such factors may be updated from time to time in its other filings with the SEC, accessible on the SEC's website at www.sec.gov. New risks emerge from time to time and it is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. Any forward-looking statement made by us in this presentation speaks only as of the date of this presentation and is expressly qualified in its entirety by the cautionary statements included in this presentation. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by any applicable laws. You should not place undue reliance on our forward-looking statements.
Non-GAAP Financial Metrics
This presentation includes financial measures not prepared in accordance with accounting principles generally accepted in the United States ("GAAP"), including Adjusted EBITDA, which is supplemental financial information that is not required by, or presented in accordance with, GAAP. Our management uses non-GAAP financial measures for business planning purposes and in measuring our performance relative to that of our competitors. Our management believes that presenting non-GAAP financial measures provides meaningful information to investors in understanding our operating results and may enhance investors' ability to analyze financial and business trends. In addition, our management believes that non-GAAP financial measures allow investors to compare our results period to period more easily by excluding items that could have a disproportionately negative or positive impact on results in any particular period. However, this non-GAAP measures are not a substitute for, or superior to, GAAP measures and should not be considered as an alternative to net income (loss) as a measure of financial performance, or any other performance measure derived in accordance with GAAP. The presentation of non-GAAP financial measures have limitations as an analytical tool and should not be considered in isolation, or as a substitute for our results as reported under GAAP. For example, because not all companies use identical calculations, the presentations of these measures may not be comparable to other similarly titled measures of other companies and can differ significantly from company to company. Please refer to this presentation for additional information regarding non-GAAP measures, including reconciliations of the non-GAAP financial measures included in this presentation to the most directly comparable financial measures prepared in accordance with GAAP.
Market and Industry
This presentation includes market and industry data and forecasts that we have derived from independent consultant reports, publicly available information, various industry publications, other published industry sources and our internal data and estimates. Independent consultant reports, industry publications and other published industry sources generally indicate that the information contained therein was obtained from sources believed to be reliable. The inclusion of market estimations, rankings and industry data in this presentation is based upon such reports, publications and other sources, our internal data and estimates and our understanding of industry conditions. Although we believe that such information is reliable, we have not had this information verified by any independent sources. You are cautioned not to give undue weight to such estimates.
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This presentation does not constitute an offer to sell or a solicitation of an offer to buy securities, and shall not constitute an offer, solicitation or sale in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
CO MP ANY
1Q24 Performance at a Glance
R E V E N U E | G R O S S M A R G I N | E x e c u t e d P r o j e c t s |
$7.8M | 26.7% | 1.0 GWh |
C o m p l e t i n g i n i t i a l p r o j e c t s | F a v o r a b l e d e l i v e r y m i x | R e c e n t l y c o m p l e t e d |
p r o j e c t s |
C A S H O P E X | A D J . E B I T D A | C A S H |
$16.7M | ($14.4M) | $136.8M |
2 2 % Y o Y r e d u c t i o n | 2 4 % Y o Y i m p r o v e m e n t | A s o f q u a r t e r e n d |
© 2024 ENERGY VAULT, ALL RIGHTS RESERVED | 2 |
C O M P A N Y
1Q24 Results Summary
In millions USD | 1Q23 | 4Q23 | 1Q24 |
REVENUE | 11.4 | 118.2 | 7.8 |
GROSS PROFIT | 2.4 | 4.0 | 2.1 |
GROSS MARGIN % | 21.1% | 3.5% | 26.7% |
CASH OPEX | 21.4 | 19.4 | 16.7 |
ADJUSTED EBITDA* | (19.0) | (15.4) | (14.4) |
TOTAL CASH ** | 196.7 | 145.6 | 136.8 |
*Adjusted EBITDA (excluding SBC, Depreciation, Amortization and other one-time gains/losses) is a non-GAAP measure; see earnings announcement appendix for
definition of non-GAAP measures
- Total Cash in 1Q24 includes $1 million of restricted cash, down from $84 million in 1Q23 and $36 million in 4Q23
- 1Q24 revenue of $7.8M driven by projects nearing completion. This compares to $11.4M in 1Q23, in part reflecting seasonality and timing of Revenue associated with G-VaultLicenses.
- 1Q24 GAAP gross margin of 26.7% and gross profit of $2.1M driven by a higher proportion of higher margin service delivery as compared to lower margin equipment delivery. This compares to 21.1% and $2.4M in 1Q23.
- Adjusted EBITDA improved $4.6M year-over-year to negative $14.4M from negative $19.0M due primarily to lower cash operating expenses (of $16.7M, down 22% YoY).
- Total cash and cash equivalents of $136.8M (reduction of $8.8M since 12/31/23) and no debt on the balance sheet as of March 31, 2024. Cash balance in-line with our previously provided guidance of $125-150M.
© 2024 ENERGY VAULT, ALL RIGHTS RESERVED | 3 |
2024 Full-Year Guidance
C O MPA NY
Revenue
$50M - $100M
Gross Margin
15% - 25%
Adj EBITDA*
($45M) to ($60M)
*Adjusted EBITDA is a non-GAAP measure; see earnings announcement appendix for definition of non-GAAPmeasures
End of Year Cash Balance
$75M - $125M
Large-scale project timing weighed towards 4Q'24 and 2025
Gross Margin % reflects favorable revenue mix from IP licensing deals
Adj EBITDA expected to improve YoY given business mix and cost containment measures
Adequate cash to execute business model; Minimal restricted cash vs 2023; No planned corporate debt
© 2024 ENERGY VAULT, ALL RIGHTS RESERVED | 4 |
DEVELOPED PIPELINE
9.9 GWh
Short listed and awarded
$2.7B
* Mature Opportunities
Commercial Pipeline
BACKLOG
710 MWh
Contracted and/or In Progress
$225M
* As of May 9, 2024
C O M P A N Y
EXECUTED PROJECTS
1.0 GWh
Revenue Recognized
$495M
* Lifetime to date since IPO @ 2/14/2022
•
•
•
Developed Pipeline: Reflects short listed or awarded projects at gross contract value.
Backlog: Reflects contracted but unrecognized revenue or other income and revenue from projects yet to be completed, other performance obligations yet to be satisfied and signed tolling agreements. Excludes IP royalties.
Executed Projects: Reflects recognized revenue (GAAP) since 1Q 2022 (Company IPO); including percentage of completion accounting, IP licensing, services rendered and software subscriptions.
© 2024 ENERGY VAULT, ALL RIGHTS RESERVED | 6 |
Quarterly Financials
© 2024 ENERGY VAULT, ALL RIGHTS RESERVED | 10 |
Q1 2024 Results Versus Q4 2023
C O M P A N Y
$ 's i n m i l l i o n s
Q1 2024 | Q4 2023 | Change | |||||||
Bookings [MWH] | - | - | - | ||||||
Bookings [$] | $ | - | $ | 35.3 | $ | (35.3) | |||
Revenue | $ | 7.8 | $ | 118.2 | $ | (110.4) | |||
Gross profit | 2.1 | 4.0 | (1.9) | ||||||
Gross margin % | 26.7 % | 3.4 % | |||||||
Operating expenses: | |||||||||
Sales and marketing | 4.2 | 4.6 | (0.4) | ||||||
R&D | 7.0 | 7.6 | (0.6) | ||||||
G&A | 15.3 | 15.8 | (0.5) | ||||||
Depreciation & Amortization | 0.3 | 0.2 | 0.1 | ||||||
Total operating expenses | 26.8 | 28.2 | (1.4) | ||||||
Operating loss | (24.7) | (24.2) | (0.5) | ||||||
Other income: | |||||||||
Interest income | 1.8 | 2.0 | (0.2) | ||||||
Other | 1.7 | 0.1 | 1.6 | ||||||
Total other income | 3.5 | 2.1 | 1.4 | ||||||
Provision (benefit) for income taxes | - | - | - | ||||||
Net loss | $ | (21.2) | $ | (22.1) | $ | 0.9 | |||
Cash on hand | $ | 136.8 | $ | 145.6 | $ | (8.8) | |||
- Q1 2024 revenue and gross margin primarily due to advancement on the Company's BESS projects.
- OPEX (excluding stock-based compensation) decreased $2.7M versus Q4 2023
- Stock-basedcompensation was $9.7M in Q1, up from $8.6M in Q4 2023.
- Sales & Marketing (ex-stock comp) decreased $0.5M.
- R&D (ex-stock comp) decreased $1.6M.
- G&A (ex-stock comp) decreased $0.6M.
- Increase in operating loss of $0.5M versus Q4 2024 driven by a decrease in gross profit.
- Change in cash balance between December 31, 2023 and March 31, 2024 primarily reflects the net loss, change in net working capital, and $8.8M for the purchase of property and equipment.
© 2024 ENERGY VAULT, ALL RIGHTS RESERVED | 11 |
C O M P A N Y
Q1 2024 Adjusted EBITDA Bridge
$ 's i n m i l l i o n s
Q1 2024 | Q4 2023 | Change | |||||||
Net loss (GAAP) | $ | (21.1) | $ | (22.2) | $ | 1.1 | |||
Non-GAAP Adjustments: | |||||||||
Interest income, net | (1.8) | (2.0) | 0.2 | ||||||
Income tax expense (benefit) | - | - | - | ||||||
Depreciation and amortization | 0.3 | 0.2 | 0.1 | ||||||
EBITDA | (22.6) | (24.0) | 1.4 | ||||||
Stock-based compensation expense | 9.7 | 8.6 | 1.1 | ||||||
Gain on satisfaction of contract liability | (1.5) | - | (1.5) | ||||||
Reorganization expenses | - | 0.6 | (0.6) | ||||||
Foreign exchange gains and losses | 0.1 | (0.1) | 0.2 | ||||||
Adjusted EBITDA (non-GAAP) | $ | (14.3) | $ | (14.9) | $ | 0.6 | |||
- Q1 EBITDA of $(22.6)M driven by our operating loss.
- Adding back non-cash items of $8.2M to EBITDA resulted in Adjusted EBITDA of $(14.3)M
- $9.7M Stock-based Compensation
- $0.1M Foreign exchange losses
- $(1.5)M Gain on satisfaction of contract liability
© 2024 ENERGY VAULT, ALL RIGHTS RESERVED | 12 |
C O M P A N Y
Q1 2024 Results Versus Q1 2023
$ 's i n m i l l i o n s
Q1 2024 | Q1 2023 | Change | |||||||
Bookings [MWH] | - | - | - | ||||||
Bookings [$] | $ | - | $ | - | $ | - | |||
Revenue | $ | 7.8 | $ | 11.4 | $ | (3.6) | |||
Gross profit | 2.1 | 2.4 | (0.3) | ||||||
Gross margin % | 26.7 % | 21.2 % | |||||||
Operating expenses: | |||||||||
Sales and marketing | 4.2 | 4.6 | (0.4) | ||||||
R&D | 7.0 | 11.2 | (4.2) | ||||||
G&A | 15.3 | 19.4 | (4.1) | ||||||
Depreciation & Amortization | 0.3 | 0.2 | 0.1 | ||||||
Total operating expenses | 26.8 | 35.4 | (8.6) | ||||||
Operating loss | (24.7) | (33.0) | 8.3 | ||||||
Other income: | |||||||||
Interest income | 1.8 | 1.9 | (0.1) | ||||||
Other | 1.7 | (0.2) | 1.9 | ||||||
Total other income | 3.5 | 1.7 | 1.8 | ||||||
Provision (benefit) for income taxes | - | - | - | ||||||
Net loss | $ | (21.2) | $ | (31.3) | $ | 10.1 | |||
Cash on hand | $ | 136.8 | $ | 197.0 | $ | (60.2) | |||
- Q1 2024 revenue and gross profit primarily due to advancement on the Company's BESS projects.
- OPEX (excluding stock-based compensation) decreased $4.6M versus 2023
- Stock-basedcompensation was $9.7M in 2024, down from $13.7M in 2023.
- Sales & Marketing (ex-stock comp) decreased by $0.2M.
- R&D (ex-stock comp) decreased $3.3M.
- G&A (ex-stock comp) decreased $1.3M.
- Decrease in operating loss of $8.3M versus 2023 driven by a decrease in operating costs.
© 2024 ENERGY VAULT, ALL RIGHTS RESERVED | 13 |
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Energy Vault Holdings Inc. published this content on 09 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 May 2024 13:45:05 UTC.
