Q2 2024 Otovo ASA Earnings Call Transcript
Key Points
- Gross margin increased by 4 percentage points year-over-year, reaching an all-time high of 28%.
- Battery attachment rates are strong, with 42% of systems installed in Q2 including batteries.
- New partnerships with ADAC and Volkswagen Group's Elli are expected to reduce customer acquisition costs and drive sales.
- Operating expenses reduced by 16% year-over-year and 8% quarter-over-quarter.
- Positive policy outlook in key markets like the UK, France, Italy, Portugal, and Poland.
- Total operating income decreased year-over-year due to lower installation activity.
- Sales remain flat, which is a concern for the company.
- Ticket size is lower than previous quarters due to decreasing costs of equipment and installations.
- Challenging market conditions in Northern Europe and Spain with limited policy support.
- Cash reserves decreased from NOK434 million to NOK334 million due to negative operational cash flow.
Ladies and gentlemen, good morning, and welcome to this presentation of Otovo's second-quarter results. My name is Andreas Thorsheim, founder and CEO.
And I will be presenting a business update before leaving the floor to Petter Ulset, our Chief Financial Officer. He will give you the financial results. I'll return for a summary and outlook. At the end, we'll have questions and answers, so don't hesitate to leave your questions in the chat function.
Now let's dive into the numbers. This quarter, we installed 1,627 (sic - see slide 4, "1,827") projects. That's up 5% -- sorry -- that's up 13% sequentially from Q1 and down 43% from the same quarter last year, which was the peak of our installation pipeline following the energy crisis in '22, '23.
Revenues generated came in at NOK240 million, up 5% sequentially. As you well know, our revenue recognitions happen at the time of installation. And these two numbers, installations and revenues generated, will follow each other.
Our ability to increase gross margin is visible
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