Release Date: November 12, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Energy Vault Holdings Inc (NRGV, Financial) reported a 33% increase in revenue backlog, indicating strong future revenue potential.
- The company achieved a gross margin of 40.3% for the third quarter, significantly higher than the previous year.
- Energy Vault Holdings Inc (NRGV) is expanding its global footprint with a strong development pipeline in the US and Australia totaling over 30 gigawatt hours.
- The company is transitioning to a build, own, and operate strategy, which is expected to enhance earnings visibility and margin profile.
- Energy Vault Holdings Inc (NRGV) is recognized for its innovation, with its gravity energy storage technology being named one of the best inventions of 2024 by Time magazine.
Negative Points
- The company reported minimal project revenue in the third quarter, down notably year over year.
- Energy Vault Holdings Inc (NRGV) expects full-year revenue to be at the lower end of the guidance range due to timing of equipment deliveries.
- The transition to a build, own, and operate strategy has reduced near-term revenue in exchange for long-term value creation.
- Adjusted EBITA was negative $14.7 million in the third quarter, reflecting weaker performance compared to the previous year.
- The company is facing challenges in project financing and monetization of tax credits, impacting cash flow and financial flexibility.
Q & A Highlights
Q: How much capacity could Energy Vault potentially add to its balance sheet in 2025 or 2026, and what are the funding sources for these projects?
A: Robert Piccon, CEO, stated that Energy Vault sees no shortage of capital for attractive projects and is actively raising funds with Jeffrey. The company is looking at deploying capital in the hundreds of millions of dollars range, leveraging strategic investors and partners to finance these projects.
Q: How does Energy Vault decide between owning projects and delivering batteries for immediate revenue recognition?
A: Robert Piccon, CEO, explained that decisions are made based on the long-term interests of the company, customers, and shareholders. While immediate revenue could be recognized through project turnover, the company often opts for long-term value creation through ownership, which offers higher margins and predictable revenue streams.
Q: Can you provide insights into the expected revenue and project timing for the fourth quarter of 2024?
A: Robert Piccon, CEO, mentioned that the company is confident in achieving the lower end of its revenue guidance range for Q4 2024, with potential upside depending on project deliveries and revenue recognition. The company is focused on operational execution and shipment timing to meet its targets.
Q: What are the plans for Energy Vault's Snyder project, and have there been any adjustments?
A: Robert Piccon, CEO, stated that the Snyder project has evolved into a multi-technology site, including gravity energy storage and battery systems. The project will demonstrate various innovations and software capabilities, with systems expected to be operational in the next 2-3 months.
Q: How does Energy Vault plan to finance future projects, and are there any new financing strategies?
A: Robert Piccon, CEO, indicated that the company will continue using standard project financing mechanisms and is exploring non-dilutive ways to secure capital, potentially involving strategic partners. The focus is on creating sustainable financing solutions for long-term growth.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
