On August 7, 2024, Fluence Energy Inc (FLNC, Financial) released its 8-K filing for the third fiscal quarter ended June 30, 2024. Fluence Energy Inc is a global leader in energy storage products and services, as well as digital applications for renewables and storage, primarily deriving its revenue from the Americas.
Performance Overview
Fluence Energy Inc reported revenue of approximately $483.3 million for Q3 FY2024, surpassing the analyst estimate of $423.01 million. However, this represents a 10% decrease from the same quarter last year, primarily due to the timing of product deliveries. Despite this, the company achieved a GAAP gross profit margin of 17.2%, a significant improvement from 4.1% in the previous year, reflecting ongoing profit improvement strategies.
The company reported a net income of approximately $1.1 million, a notable turnaround from a net loss of $35.0 million in the same quarter last year. Adjusted EBITDA also improved to approximately $15.6 million from a negative $27.5 million in the previous year.
Financial Achievements
Fluence Energy Inc achieved a record quarterly order intake of $1.3 billion, compared to $565 million in the same quarter last year. The backlog increased to approximately $4.5 billion as of June 30, 2024, up from $3.7 billion as of March 31, 2024. The company also reported total cash of approximately $513.3 million, an increase of $50.6 million from September 30, 2023.
Income Statement Highlights
| Metric | Q3 FY2024 | Q3 FY2023 |
|---|---|---|
| Revenue | $483.3 million | $536.4 million |
| GAAP Gross Profit Margin | 17.2% | 4.1% |
| Net Income | $1.1 million | -$35.0 million |
| Adjusted EBITDA | $15.6 million | -$27.5 million |
Balance Sheet and Cash Flow
Fluence Energy Inc's balance sheet shows total assets of $1.69 billion as of June 30, 2024, compared to $1.35 billion as of September 30, 2023. The company reported net cash provided by operating activities of approximately $69.2 million for the first nine months of FY2024, a significant improvement from a negative $160.5 million in the same period last year. Free cash flow was approximately $64.3 million, compared to a negative $162.4 million in the same period last year.
Executive Commentary
"We delivered a tremendous quarter highlighted by achieving approximately $15.6 million Adjusted EBITDA, our highest order intake, and a record backlog of $4.5 billion," said Julian Nebreda, the Company’s President and Chief Executive Officer. "I am pleased to report that we are seeing robust demand globally, highlighted by our U.S. domestic content offering which we will begin delivering at the beginning of 2025, ahead of our competition."
Updated Fiscal Year 2024 Guidance
Fluence Energy Inc has narrowed its fiscal year 2024 total revenue guidance range to $2.7 billion to $2.8 billion from the prior range of $2.7 billion to $3.3 billion. The company also adjusted its fiscal year 2024 Adjusted EBITDA range to $55 million to $65 million from the prior range of $50 million to $80 million. Additionally, the company raised its fiscal year 2024 Annual Recurring Revenue (ARR) guidance to approximately $100 million from approximately $80 million.
Conclusion
Fluence Energy Inc's Q3 FY2024 performance demonstrates its ability to navigate challenges and achieve significant financial milestones. The company's improved gross profit margins, record order intake, and robust backlog position it well for future growth. Investors and stakeholders will be keenly watching how Fluence Energy Inc continues to execute its strategic objectives and capitalize on the growing demand for energy storage solutions.
Explore the complete 8-K earnings release (here) from Fluence Energy Inc for further details.
