Q1 2024 ESS Tech Inc Earnings Call Transcript
Key Points
- ESS Tech Inc (GWHWS) announced a new partnership with Intel A-Power, a leading Nigerian energy company, to deploy eight megawatt hours of storage, with future phases including 50 megawatts of battery storage.
- The company has made significant progress in automation, with the first fully automated line reducing labor hours, cycle time, and costs, and a second line expected to increase capacity by 40% and reduce CapEx by 50%.
- ESS Tech Inc (GWHWS) has achieved the highest level of IEEE 693 certification for its Energy Center product, enabling deployment in seismically active areas.
- The company reported a 60% reduction in the cost to build an Energy Warehouse in the previous year, with an additional 40% reduction targeted for this year.
- ESS Tech Inc (GWHWS) remains well-positioned for revenue growth, expecting to triple or quadruple revenue compared to the previous year.
- The cost of revenue reported was significantly higher than the revenue, with $11.1 million against a revenue of $2.7 million, indicating current inefficiencies in cost management.
- The company reported a negative adjusted EBITDA of $15.4 million, although it marked an improvement, it still indicates ongoing financial losses.
- Despite cost reduction efforts, the financial statements currently do not fully reflect these benefits, complicating the assessment of real progress.
- The reliance on non-GAAP financial measures can obscure the true financial health of the company, as these measures exclude certain costs that are deemed non-indicative of core operating results.
- The company's cash burn rate and the need for ongoing optimization of working capital and CapEx spend highlight potential liquidity risks if not managed effectively.
Ladies and gentlemen, thank you for standing by. (Operator Instructions)
I would now like to pass the conference over to Erik Bylin. Please go ahead, sir.
Welcome to ESS's first quarter of fiscal year 2024 financial results conference call. Joining me on the call today from ESS are Eric Dresselhuys, CEO; and Tony Rabb, CFO. Following management's prepared remarks, we will hold a Q&A session.
Earlier today, ESS released financial results for the first quarter of fiscal year 2024. The earnings release is available in the Investor Relations section of the company's website.
As a reminder, the information presented today will include forward-looking statements, including without limitation, statements about our growth prospects, partnerships, financial performance, and strategy for 2024 and beyond. Forward-looking statements are also subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those projected or implied during
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
