Fluence Energy, Inc. Reports Record Performance in 2024 and Initiates 2025 Guidance

GlobeNewswire Inc.

November 25, 2024 9:26PM GMT

ARLINGTON, Va., Nov. 25, 2024 (GLOBE NEWSWIRE) -- Fluence Energy, Inc. (Nasdaq: FLNC) (“Fluence” or the “Company”), a global market leader delivering intelligent energy storage, operational services, and asset optimization software, today announced its results for the three months and full fiscal year ended September 30, 2024.

Fiscal Year 2024 Financial Highlights

  • Record revenue for fiscal year 2024 of approximately $2.7 billion and revenue for the fourth quarter of approximately $1.2 billion, representing an increase of approximately 22% from fiscal year 2023 and an increase of approximately 82% from the same quarter last year, respectively.
  • GAAP gross profit margin improved to approximately 12.6% and 12.8% for fiscal year 2024 and the fourth quarter, respectively, compared to approximately 6.4% and 11.3% for fiscal year 2023 and the same quarter last year, respectively, reflecting the Company's continued focus on ongoing profit improvement strategies.
  • Net income of approximately $30.4 million and $67.7 million for fiscal year 2024 and the fourth quarter, respectively, improved from a net loss of approximately $104.8 million and net income of approximately $4.8 million, for fiscal year 2023 and the same quarter last year, respectively.
  • Adjusted EBITDA1 of approximately $78.1 million and $86.9 million for fiscal year 2024 and the fourth quarter, respectively, improved from approximately negative $61.4 million and $19.8 million for fiscal year 2023 and the same quarter last year, respectively.
  • Quarterly order intake of approximately $1.2 billion, compared to approximately $737 million for the same quarter last year.
  • Backlog2 increased to approximately $4.5 billion as of September 30, 2024, compared to approximately $2.9 billion as of September 30, 2023.

Financial Position

  • Total Cash3 of approximately $518.7 million as of September 30, 2024, representing an increase of approximately $56.0 million from September 30, 2023.
  • Net cash provided by operating activities was approximately $79.7 million, compared to approximately negative $111.9 million for fiscal year 2023.
  • Free cash flow1 was approximately $71.6 million, compared to approximately negative $114.9 million for fiscal year 2023.

Fiscal Year 2025 Outlook

The Company is initiating fiscal year 2025 guidance as follows:

  • Revenue of approximately $3.6 billion to $4.4 billion with a midpoint of $4.0 billion. Presently, approximately 65% of the midpoint of the Company's revenue guidance is covered by the Company's current backlog, in line with our fiscal 2024 revenue coverage at the same time period last year.
  • Adjusted EBITDA4 of approximately $160 million to $200 million with a midpoint of $180 million.
  • Annual recurring revenue ("ARR") of about $145 million by the end of fiscal year 2025.

The foregoing Fiscal Year 2025 Outlook statements represent management's current best estimate as of the date of this release. Actual results may differ materially depending on a number of factors. Investors are urged to read the Cautionary Note Regarding Forward-Looking Statements included in this release. Management does not assume any obligation to update these estimates.

"Our record financial results for 2024 are a testament to our team's dedication, operational efficiency, and commitment to delivering value to our stakeholders as we achieved our highest ever revenue and profitability, marking a significant milestone in the Company's growth trajectory. Furthermore, we had our second consecutive quarter of signing more than $1 billion of new orders, which brought our backlog to $4.5 billion, underscoring the market's strong confidence in our energy storage solutions," said Julian Nebreda, the Company’s President and Chief Executive Officer. "As we look forward, we see unprecedented demand for battery energy storage solutions across the world, driven principally by the U.S. market. We believe we are well positioned to continue capturing this market with our best-in-class domestic content offering which utilizes U.S. manufactured battery cells."

"We are pleased with our strong fiscal year-end performance, achieving record revenue growth, robust margin expansion and free cash flow. We also generated positive net income for the first time," said Ahmed Pasha, Chief Financial Officer. "With backlog and development pipeline at record levels, we enter fiscal 2025 poised for sustained profitable growth."

Share Count

The shares of the Company’s common stock as of September 30, 2024 are presented below:

 

Common Shares

Class B-1 common stock held by AES Grid Stability, LLC

51,499,195

Class A common stock held by Siemens AG

39,738,064

Class A common stock held by SPT Invest Management, Sarl

11,761,131

Class A common stock held by Qatar Holding LLC

14,668,275

Class A common stock held by public

63,254,327

Total Class A and Class B-1 common stock outstanding

180,920,992

 

 

Conference Call Information

The Company will conduct a teleconference starting at 8:30 a.m. EST on Tuesday, November 26, 2024, to discuss the fourth quarter and full fiscal year 2024 financial results. To participate, analysts are required to register by clicking Fluence Energy Inc. Q4 Earnings Call Registration Link. Once registered, analysts will be issued a unique PIN number and dial-in number. Analysts are encouraged to register at least 15 minutes before the scheduled start time.

General audience participants, and non-analysts are encouraged to join the teleconference in a listen-only mode at: Fluence Energy Inc. Q4 Listen Only - Webcast, or on http://fluenceenergy.com by selecting Investors, News & Events, and Events & Presentations. Supplemental materials that may be referenced during the teleconference will be available at: http://fluenceenergy.com, by selecting Investors, News & Events, and Events & Presentations.

A replay of the conference call will be available after 1:00 p.m. EST on Tuesday, November 26, 2024. The replay will be available on the Company’s website at http://fluenceenergy.com by selecting Investors, News & Events, and Events & Presentations.

Non-GAAP Financial Measures

We present our operating results in accordance with accounting principles generally accepted in the U.S. (“GAAP”). We believe certain financial measures, such as Adjusted EBITDA, Adjusted Gross Profit, Adjusted Gross Profit Margin, and Free Cash Flow, which are non-GAAP measures, provide users of our financial statements with supplemental information that may be useful in evaluating our operating performance. We believe that such non-GAAP measures, when read in conjunction with our operating results presented under GAAP, can be used to better assess our performance from period to period and relative to performance of other companies in our industry, without regard to financing methods, historical cost basis or capital structure. Such non-GAAP measures should be considered as a supplement to, and not as a substitute for, financial measures prepared in accordance with GAAP. These measures have limitations as analytical tools, including that other companies, including companies in our industry, may calculate these measures differently, reducing their usefulness as comparative measures.

Adjusted EBITDA is calculated from the consolidated statements of operations using net income (loss) adjusted for (i) interest income, net, (ii) income taxes, (iii) depreciation and amortization, (iv) stock-based compensation, and (v) other non-recurring income or expenses. Adjusted EBITDA also includes amounts impacting net income related to estimated payments due to related parties pursuant to the Tax Receivable Agreement, dated October 27, 2021, by and among Fluence Energy, Inc., Fluence Energy, LLC, Siemens Industry, Inc. and AES Grid Stability, LLC (the “Tax Receivable Agreement”).

Adjusted Gross Profit is calculated using gross profit, adjusted to exclude (i) stock-based compensation expenses, (ii) amortization, and (iii) other non-recurring income or expenses. Adjusted Gross Profit Margin is calculated using Adjusted Gross Profit divided by total revenue.

Free Cash Flow is calculated from the consolidated statements of cash flows and is defined as net cash provided by (used in) operating activities, less purchase of property and equipment made in the period. We expect our Free Cash Flow to fluctuate in future periods as we invest in our business to support our plans for growth. Limitations on the use of Free Cash Flow include (i) it should not be inferred that the entire Free Cash Flow amount is available for discretionary expenditures (for example, cash is still required to satisfy other working capital needs, including short-term investment policy, restricted cash, and intangible assets); (ii) Free Cash Flow has limitations as an analytical tool, and it should not be considered in isolation or as a substitute for analysis of other GAAP financial measures, such as net cash provided by operating activities; and (iii) this metric does not reflect our future contractual commitments.

Please refer to the reconciliations of the non-GAAP financial measures to their most directly comparable GAAP financial measures included in this press release and the accompanying tables contained at the end of this release.

The Company is not able to provide a quantitative reconciliation of full fiscal year 2025 Adjusted EBITDA to GAAP Net Income (Loss) on a forward-looking basis within this press release because of the uncertainty around certain items that may impact Adjusted EBITDA, including stock compensation and restructuring expenses, that are not within our control or cannot be reasonably predicted without unreasonable effort.

About Fluence

Fluence Energy, Inc. (Nasdaq: FLNC) is a global market leader delivering intelligent energy storage and optimization software for renewables and storage. The Company's solutions and operational services are helping to create a more resilient grid and unlock the full potential of renewable portfolios. With gigawatts of projects successfully contracted, deployed and under management across nearly 50 markets, the Company is transforming the way we power our world for a more sustainable future.

For more information, visit our website, or follow us on LinkedIn or X. To stay up to date on the latest industry insights, sign up for Fluence's Full Potential Blog.

Cautionary Note Regarding Forward-Looking Statements

The statements contained in this press release and statements that are made on our earnings call that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, statements set forth above under “Fiscal Year 2025 Outlook,” and other statements regarding the Company's future financial and operational performance, future market and industry growth and related opportunities for the Company, anticipated Company growth and business strategy, including future incremental working capital and capital opportunities, liquidity and access to capital and cash flows, demand for electricity and impact to energy storage, demand for the Company's energy storage solutions, services, and digital applications offerings, our positioning to capture market share with domestic content offering and future offerings, expected impact and benefits from the Inflation Reduction Act of 2022 and U.S. Treasury domestic content guidelines on us and on our customers, anticipated timeline of U.S. battery module production and timing of our domestic content offering, expectations relating to our contracting manufacturing capacity, potential impact to tariffs, related policies, and regulations from the change in political administration, new products and solutions and product innovation, relationships with new and existing customers and suppliers, expectations relating to backlog, pipeline, and contracted backlog, future revenue recognition, future results of operations, future capital expenditures and debt service obligations, and projected costs, beliefs, assumptions, prospects, plans and objectives of management. Such statements can be identified by the fact that they do not relate strictly to historical or current facts. When used in this press release, words such as “may,” “possible,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “targets,” “projects,” “contemplates,” "commits", “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of these terms or other similar expressions and variations thereof and similar words and expressions are intended to identify such forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking.

The forward-looking statements contained in this press release are based on our current expectations and beliefs concerning future developments, as well as a number of assumptions concerning future events, and their potential effects on our business. These forward-looking statements are not guarantees of performance, and there can be no assurance that future developments affecting our business will be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements, which include, but are not limited to, our relatively limited operating and revenue history as an independent entity and the nascent clean energy industry; anticipated increasing expenses in the future and our ability to maintain prolonged profitability; fluctuations of our order intake and results of operations across fiscal periods; potential difficulties in maintaining manufacturing capacity and establishing expected mass manufacturing capacity in the future; risks relating to delays, disruptions, and quality control problems in our manufacturing operations; risks relating to quality and quantity of components provided by suppliers; risks relating to our status as a relatively low-volume purchaser as well as from supplier concentration and limited supplier capacity; risks relating to operating as a global company with a global supply chain; changes in the global trade environment; changes in the cost and availability of raw materials and underlying components; failure by manufacturers, vendors, and suppliers to use ethical business practices and comply with applicable laws and regulations; significant reduction in pricing or order volume or loss of one or more of our significant customers or their inability to perform under their contracts; risks relating to competition for our offerings and our ability to attract new customers and retain existing customers; ability to maintain and enhance our reputation and brand recognition; ability to effectively manage our recent and future growth and expansion of our business and operations; our growth depends in part on the success of our relationships with third parties; ability to attract and retain highly qualified personnel; risks associated with engineering and construction, utility interconnection, commissioning and installation of our energy storage solutions and products, cost overruns, and delays; risks relating to lengthy sales and installation cycle for our energy storage solutions; risks related to defects, errors, vulnerabilities and/or bugs in our products and technology; risks relating to estimation uncertainty related to our product warranties; fluctuations in currency exchange rates; risks related to our current and planned foreign operations; amounts included in our pipeline and contracted backlog may not result in actual revenue or translate into profits; risks related to acquisitions we have made or that we may pursue; events and incidents relating to storage, delivery, installation, operation, maintenance and shutdowns of our products; risks relating to our impacts to our customer relationships due to events and incidents during the project lifecycle of an energy storage solution; actual or threatened health epidemics, pandemics or similar public health threats; ability to obtain financial assurances for our projects; risks relating to whether renewable energy technologies are suitable for widespread adoption or if sufficient demand for our offerings do not develop or takes longer to develop than we anticipate; estimates on size of our total addressable market; risks relating to the cost of electricity available from alternative sources; macroeconomic uncertainty and market conditions; risk relating to interest rates or a reduction in the availability of tax equity or project debt capital in the global financial markets and corresponding effects on customers’ ability to finance energy storage systems and demand for our energy storage solutions; decline in public acceptance of renewable energy, or delay, prevent, or increase in the cost of customer projects; severe weather events; increased attention to ESG matters; restrictions set forth in our current credit agreement and future debt agreements; uncertain ability to raise additional capital to execute on business opportunities; ability to obtain, maintain and enforce proper protection for our intellectual property, including our technology; threat of lawsuits by third parties alleging intellectual property violations; adequate protection for our trademarks and trade names; ability to enforce our intellectual property rights; risks relating to our patent portfolio; ability to effectively protect data integrity of our technology infrastructure and other business systems; use of open-source software; failure to comply with third party license or technology agreements; inability to license rights to use technologies on reasonable terms; risks relating to compromises, interruptions, or shutdowns of our systems; barriers arising from current electric utility industry policies and regulations and any subsequent changes; reduction, elimination, or expiration of government incentives or regulations regarding renewable energy; potential changes in tax laws or regulations; risks relating to environmental, health, and safety laws and potential obligations, liabilities and costs thereunder; failure to comply with data privacy and data security laws, regulations and industry standards; risks relating to potential future legal proceedings, regulatory disputes, and governmental inquiries; risks related to ownership of our Class A common stock; risks related to us being a “controlled company” within the meaning of the NASDAQ rules; risks relating to the terms of our amended and restated certificate of incorporation and amended and restated bylaws; risks relating to our relationship with our Founders and Continuing Equity Owners; risks relating to conflicts of interest by our officers and directors due to positions with Continuing Equity Owners; risks related to short-seller activists; we depend on distributions from Fluence Energy, LLC to pay our taxes and expenses and Fluence Energy, LLC’s ability to make such distributions may be limited or restricted in certain scenarios; risks arising out of the Tax Receivable Agreement; unanticipated changes in effective tax rates or adverse outcomes resulting from examination of tax returns; risks relating to improper and ineffective internal control over reporting to comply with Sarbanes-Oxley Act; risks relating to changes in accounting principles or their applicability to us; risks relating to estimates or judgments relating to our critical accounting policies; and other factors set forth under Item 1A.“Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended September 30, 2024, to be filed with the Securities and Exchange Commission (“SEC”), and in other filings we make with the SEC from time to time. New risks and uncertainties emerge from time to time and it is not possible for us to predict all such risk factors, nor can we assess the effect of all such risk 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. Should one or more of these risks or uncertainties materialize, or should any of the assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. You are cautioned not to place undue reliance on any forward-looking statements made in this press release. Each forward-looking statement speaks only as of the date of the particular statement, and we undertake no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that occur, or which we become aware of, after the date hereof, except as otherwise may be required by law.

 

 

FLUENCE ENERGY, INC.CONSOLIDATED BALANCE SHEETS(U.S. Dollars in Thousands, except share and per share amounts)

 

 

 

September 30,

 

2024

 

2023

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

448,685

 

 

$

345,896

 

Restricted cash

 

46,089

 

 

 

106,835

 

Trade receivables, net

 

216,458

 

 

 

103,397

 

Unbilled receivables

 

172,115

 

 

 

192,064

 

Receivables from related parties

 

362,523

 

 

 

58,514

 

Advances to suppliers

 

174,532

 

 

 

107,947

 

Inventory, net

 

182,601

 

 

 

224,903

 

Current portion of notes receivable - pledged as collateral

 

30,921

 

 

 

24,330

 

Other current assets

 

46,519

 

 

 

31,074

 

Total current assets

 

1,680,443

 

 

 

1,194,960

 

Non-current assets:

 

 

 

Property and equipment, net

 

15,350

 

 

 

12,771

 

Intangible assets, net

 

60,002

 

 

 

55,752

 

Goodwill

 

27,482

 

 

 

26,020

 

Deferred income tax asset, net

 

8,880

 

 

 

86

 

Note receivable - pledged as collateral

 

 

 

 

30,921

 

Other non-current assets

 

110,031

 

 

 

31,639

 

Total non-current assets

 

221,745

 

 

 

157,189

 

Total assets

$

1,902,188

 

 

$

1,352,149

 

Liabilities, and stockholders’ equity

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

436,744

 

 

$

65,376

 

Deferred revenue

 

274,499

 

 

 

273,164

 

Deferred revenue with related parties

 

38,162

 

 

 

110,274

 

Current portion of borrowings against note receivable - pledged as collateral

 

30,360

 

 

 

22,539

 

Personnel related liabilities

 

58,584

 

 

 

52,174

 

Accruals and provisions

 

338,311

 

 

 

175,960

 

Taxes payable

 

57,929

 

 

 

29,465

 

Other current liabilities

 

24,246

 

 

 

16,711

 

Total current liabilities

 

1,258,835

 

 

 

745,663

 

Non-current liabilities:

 

 

 

Deferred income tax liability

 

7,114

 

 

 

4,794

 

Borrowings against note receivable - pledged as collateral

 

 

 

 

28,024

 

Other non-current liabilities

 

29,100

 

 

 

17,338

 

Total non-current liabilities

 

36,214

 

 

 

50,156

 

Total liabilities

 

1,295,049

 

 

 

795,819

 

Commitments and Contingencies (Note 14)

 

 

 

Stockholders’ equity:

 

 

 

Preferred stock, $0.00001 per share, 10,000,000 share authorized; no shares issued and outstanding as of September 30, 2024 and 2023

 

 

 

 

 

Class A common stock, $0.00001 par value per share, 1,200,000,000 shares authorized; 130,207,845 shares issued and 129,421,797 shares outstanding as of September 30, 2024; 119,593,409 shares issued and 118,903,435 shares outstanding as of September 30, 2023

 

1

 

 

 

1

 

Class B-1 common stock, $0.00001 par value per share, 134,325,805 shares authorized; 51,499,195 shares issued and outstanding as of September 30, 2024; $0.00001 par value per share, 200,000,000 shares authorized; 58,586,695 shares issued and outstanding as of September 30, 2023

 

 

 

 

 

Class B-2 common stock, $0.00001 par value per share, 200,000,000 shares authorized; no shares issued and outstanding as of September 30, 2024 and 2023

 

 

 

 

 

Treasury stock, at cost

 

(9,460

)

 

 

(7,797

)

Additional paid-in capital

 

634,851

 

 

 

581,104

 

Accumulated other comprehensive (loss) income

 

(1,840

)

 

 

3,202

 

Accumulated deficit

 

(151,448

)

 

 

(174,164

)

Total stockholders’ equity attributable to Fluence Energy, Inc.

 

472,104

 

 

 

402,346

 

Non-controlling interest

 

135,035

 

 

 

153,984

 

Total stockholders’ equity

 

607,139

 

 

 

556,330

 

Total liabilities, stockholders’ equity

$

1,902,188

 

 

$

1,352,149

 

 

 

 

 

 

 

 

 

FLUENCE ENERGY, INC.CONSOLIDATED STATEMENTS OF OPERATIONS(U.S. Dollars in Thousands, except share and per share amounts)

 

 

 

Fiscal Year Ended September 30,

 

2024

 

2023

 

2022

Revenue

$

1,601,563

 

 

$

1,564,169

 

 

$

552,271

 

Revenue from related parties

 

1,096,999

 

 

 

653,809

 

 

 

646,332

 

Total revenue

 

2,698,562

 

 

 

2,217,978

 

 

 

1,198,603

 

Cost of goods and services

 

2,357,482

 

 

 

2,077,023

 

 

 

1,260,957

 

Gross profit (loss)

 

341,080

 

 

 

140,955

 

 

 

(62,354

)

Operating expenses:

 

 

 

 

 

Research and development

 

66,195

 

 

 

66,307

 

 

 

60,142

 

Sales and marketing

 

63,842

 

 

 

41,114

 

 

 

37,207

 

General and administrative

 

172,996

 

 

 

136,308

 

 

 

116,710

 

Depreciation and amortization

 

11,426

 

 

 

9,835

 

 

 

7,108

 

Interest income, net

 

(5,676

)

 

 

(5,388

)

 

 

(326

)

Other (income) expense, net

 

(7,276

)

 

 

(6,952

)

 

 

4,625

 

Income (loss) before income taxes

 

39,573

 

 

 

(100,269

)

 

 

(287,820

)

Income tax expense

 

9,206

 

 

 

4,549

 

 

 

1,357

 

Net income (loss)

$

30,367

 

 

$

(104,818

)

 

$

(289,177

)

Net income (loss) attributable to non-controlling interest

$

7,651

 

 

$

(35,198

)

 

$

(184,692

)

Net income (loss) attributable to Fluence Energy, Inc.

$

22,716

 

 

$

(69,620

)

 

$

(104,485

)

 

 

 

 

 

 

Weighted average number of Class A common shares outstanding

 

 

 

 

 

Basic

 

126,180,011

 

 

 

116,448,602

 

 

 

69,714,054

 

Diluted

 

184,034,832

 

 

 

116,448,602

 

 

 

69,714,054

 

Income (loss) per share of Class A common stock

 

 

 

 

 

Basic

$

0.18

 

 

$

(0.60

)

 

$

(1.50

)

Diluted

$

0.13

 

 

$

(0.60

)

 

$

(1.50

)

 

 

 

 

 

 

 

 

 

 

 

 

FLUENCE ENERGY, INC.CONSOLIDATED STATEMENTS OF OPERATIONS(U.S. Dollars in Thousands, except share and per share amounts)(UNAUDITED)

 

 

 

Three Months Ended September 30

 

2024

 

2023

 

2022

Revenue

$

745,438

 

 

$

521,802

 

 

$

293,420

 

Revenue from related parties

 

482,710

 

 

 

151,180

 

 

 

148,562

 

Total revenue

 

1,228,148

 

 

 

672,982

 

 

 

441,982

 

Cost of goods and services

 

1,070,679

 

 

 

596,699

 

 

 

431,242

 

Gross profit

 

157,469

 

 

 

76,283

 

 

 

10,740

 

Operating expenses:

 

 

 

 

 

Research and development

 

18,352

 

 

 

14,676

 

 

 

17,915

 

Sales and marketing

 

22,571

 

 

 

11,815

 

 

 

9,559

 

General and administrative

 

46,094

 

 

 

35,118

 

 

 

32,938

 

Depreciation and amortization

 

2,837

 

 

 

2,475

 

 

 

2,216

 

Interest income, net

 

(1,122

)

 

 

(1,137

)

 

 

(1,175

)

Other (income) expense, net

 

(6,865

)

 

 

1,912

 

 

 

3,622

 

Income (loss) before income taxes

 

75,602

 

 

 

11,424

 

 

 

(54,335

)

Income tax expense

 

7,878

 

 

 

6,607

 

 

 

1,850

 

Net income (loss)

$

67,724

 

 

$

4,817

 

 

$

(56,185

)

Net income (loss) attributable to non-controlling interest

 

19,881

 

 

 

1,588

 

 

 

(19,036

)

Net income (loss) attributable to Fluence Energy, Inc.

$

47,843

 

 

$

3,229

 

 

$

(37,149

)

 

 

 

 

 

 

Weighted average number of Class A common shares outstanding

 

 

 

 

 

Basic

 

128,879,394

 

 

 

118,599,185

 

 

 

114,452,470

 

Diluted

 

184,492,220

 

 

 

183,693,827

 

 

 

114,452,470

 

Income (loss) per share of Class A common stock

 

 

 

 

 

Basic

$

0.37

 

 

$

0.03

 

 

$

(0.32

)

Diluted

$

0.34

 

 

$

0.02

 

 

$

(0.32

)

 

 

 

 

 

 

 

 

 

 

 

 

FLUENCE ENERGY, INC.CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)(U.S. Dollars in Thousands, except share and per share amounts)

 

 

 

Fiscal Year Ended September 30,

 

2024

 

2023

 

2022

Net income (loss)

$

30,367

 

 

$

(104,818

)

 

$

(289,177

)

 

 

 

 

 

 

(Loss) gain on foreign currency translation, net of tax

 

(598

)

 

 

586

 

 

 

5,091

 

Loss on cash flow hedges, net of tax

 

(6,276

)

 

 

 

 

 

 

Actuarial (loss) gain on pension liabilities, net of tax

 

(211

)

 

 

15

 

 

 

251

 

Total other comprehensive (loss) income

 

(7,085

)

 

 

601

 

 

 

5,342

 

Total comprehensive income (loss)

$

23,282

 

 

$

(104,217

)

 

$

(283,835

)

Comprehensive income (loss) attributable to non-controlling interest

$

5,608

 

 

$

(35,015

)

 

$

(182,345

)

Total comprehensive income (loss) attributable to Fluence Energy, Inc.

$

17,674

 

 

$

(69,202

)

 

$

(101,490

)

 

Three Months Ended September 30,

 

2024

 

2023

 

2022

Net income (loss)

$

67,724

 

 

$

4,817

 

 

$

(56,185

)

 

 

 

 

 

 

 

 

(Loss) gain on foreign currency translation, net of tax

(170

)

 

 

562

 

 

3,181

 

Loss on cash flow hedges, net of tax

(4,393

)

 

 

 

 

 

Actuarial (loss) gain on pension liabilities, net of tax

(211

)

 

 

15

 

 

251

 

Total other comprehensive (loss) income

(4,774

)

 

 

577

 

 

3,432

 

Total comprehensive income (loss)

$

62,950

 

 

$

5,394

 

 

$

(52,753

)

Comprehensive income (loss) attributable to non-controlling interest

$

18,519

 

 

$

1,778

 

 

$

(17,875

)

Total comprehensive income (loss) attributable to Fluence Energy, Inc.

$

44,431

 

 

$

3,616

 

 

$

(34,878

)

 

 

 

 

 

 

 

 

FLUENCE ENERGY, INC.CONSOLIDATED STATEMENTS OF CASH FLOWS(U.S. Dollars in Thousands)

 

 

 

Fiscal Year Ended September 30,

 

2024

 

2023

 

2022

Operating activities

 

 

 

 

 

Net income (loss)

$

30,367

 

 

$

(104,818

)

 

$

(289,177

)

Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:

 

 

 

 

 

Depreciation and amortization

 

14,482

 

 

 

10,665

 

 

 

7,108

 

Amortization of debt issuance costs

 

3,091

 

 

 

914

 

 

 

778

 

Inventory provision (recovery)

 

23,972

 

 

 

(1,029

)

 

 

2,529

 

Stock-based compensation

 

23,855

 

 

 

26,920

 

 

 

44,131

 

Deferred income taxes

 

(6,719

)

 

 

2,542

 

 

 

516

 

Changes in operating assets and liabilities:

 

 

 

 

 

Trade receivables

 

(114,577

)

 

 

(13,397

)

 

 

(29,161

)

Unbilled receivables

 

24,747

 

 

 

(50,503

)

 

 

(36,550

)

Receivables from related parties

 

(303,963

)

 

 

53,611

 

 

 

(78,666

)

Advances to suppliers

 

(64,258

)

 

 

(36,490

)

 

 

(45,024

)

Inventory

 

21,731

 

 

 

432,767

 

 

 

(265,477

)

Other current assets

 

(10,986

)

 

 

(36,828

)

 

 

1,364

 

Other non-current assets

 

(28,100

)

 

 

(16,632

)

 

 

(35,208

)

Accounts payable

 

370,124

 

 

 

(242,268

)

 

 

150,507

 

Deferred revenue with related parties

 

(72,201

)

 

 

(191,431

)

 

 

80,575

 

Deferred revenue

 

(9,796

)

 

 

(6,934

)

 

 

201,028

 

Current accruals and provisions

 

160,206

 

 

 

(12,360

)

 

 

(2,522

)

Taxes payable

 

22,799

 

 

 

15,753

 

 

 

(1,779

)

Other current liabilities

 

18,185

 

 

 

39,467

 

 

 

6,362

 

Other non-current liabilities

 

(23,274

)

 

 

18,124

 

 

 

(3,719

)

Insurance proceeds received

 

 

 

 

 

 

 

10,000

 

Net cash provided by (used in) operating activities

 

79,685

 

 

 

(111,927

)

 

 

(282,385

)

Investing activities

 

 

 

 

 

Purchase of equity securities

 

 

 

 

 

 

 

(1,124

)

Proceeds from maturities of short-term investments

 

 

 

 

111,674

 

 

 

 

Purchases of short-term investments

 

 

 

 

 

 

 

(110,144

)

Payments for purchase of investment in joint venture

 

 

 

 

(5,013

)

 

 

 

Capital expenditures on software

 

(10,860

)

 

 

(9,235

)

 

 

 

Payments for acquisition of businesses, net of cash acquired

 

 

 

 

 

 

 

(29,215

)

Purchase of property and equipment

 

(8,115

)

 

 

(2,989

)

 

 

(7,934

)

Net cash (used in) provided by investing activities

 

(18,975

)

 

 

94,437

 

 

 

(148,417

)

Financing activities

 

 

 

 

 

Repayment of promissory notes – related parties

 

 

 

 

 

 

 

(50,000

)

Repayment of line of credit

 

 

 

 

 

 

 

(50,000

)

Proceeds from borrowing against note receivable - pledged as collateral

 

 

 

 

48,176

 

 

 

 

Class A common stock withheld related to settlement of employee taxes for stock-based compensation awards

 

(1,663

)

 

 

(2,784

)

 

 

(5,013

)

Proceeds from exercise of stock options

 

5,335

 

 

 

7,203

 

 

 

3,103

 

Payment of transaction costs related to issuance of Class B membership units

 

 

 

 

 

 

 

(6,320

)

Payments of debt issuance costs

 

(8,456

)

 

 

 

 

 

(3,375

)

Proceeds from issuance of Class A common stock sold in an IPO, net of underwriting discounts and commissions

 

 

 

 

 

 

 

935,761

 

Payments of deferred equity issuance cost

 

 

 

 

 

 

 

(7,103

)

Payments for acquisitions

 

(3,892

)

 

 

 

 

 

 

Net cash (used in) provided by financing activities

 

(8,676

)

 

 

52,595

 

 

 

817,053

 

Effect of exchange rate changes on cash and cash equivalents

 

3,941

 

 

 

(2,095

)

 

 

5,401

 

Net increase (decrease) in cash and cash equivalents

 

55,975

 

 

 

33,010

 

 

 

391,652

 

Cash, cash equivalents, and restricted cash as of the beginning of the period

 

462,731

 

 

 

429,721

 

 

 

38,069

 

Cash, cash equivalents, and restricted cash as of the end of the period

$

518,706

 

 

$

462,731

 

 

$

429,721

 

Supplemental disclosure of cash flow information

 

 

 

 

 

Interest paid

$

3,022

 

 

$

2,336

 

 

$

1,127

 

Cash paid for income taxes

$

2,661

 

 

$

1,240

 

 

$

2,068

 

 

 

 

 

 

 

 

 

 

 

 

 

Reclassifications

Certain prior period amounts have been reclassified to conform to the current period presentation.

Accounts payable with related parties of $2.5 million and Accruals with related parties of $3.7 million as of September 30, 2023, were reclassified from Deferred revenue and payables with related parties to Accounts payable and Accruals and provisions, respectively, on the consolidated balance sheet. The reclassification had no impact on the total current liabilities for any period presented. Corresponding reclassifications were also reflected on the consolidated statement of cash flows for the fiscal year ended September 30, 2023 and 2022. The reclassifications had no impact on cash provided by (used in) operations for the period presented.

Provision on loss contracts, net of $6.1 million and $30.0 million for the fiscal years ended September 30, 2023 and 2022, respectively, was reclassified to current accruals and provisions on the consolidated statement of cash flows. The reclassification had no impact on cash provided by (used in) operations for the period presented.

FLUENCE ENERGY, INC.
KEY OPERATING METRICS (UNAUDITED)

 

The following tables present our key operating metrics for the fiscal years ended September 30, 2024 and 2023. The tables below present the metrics in either Gigawatts (GW) or Gigawatt hours (GWh). Our key operating metrics focus on project milestones to measure our performance and designate each project as either “deployed”, “assets under management”, “contracted backlog”, or “pipeline”.

 

Fiscal Year Ended September 30,

 

 

 

 

 

 

 

 

2024

 

2023

Change

 

Change %

Energy Storage Products

 

 

 

 

 

 

 

 

Deployed (GW)

 

5.0

 

 

3.0

 

 

2.0

 

 

66.7

%

Deployed (GWh)

 

12.8

 

 

 

7.2

 

 

 

5.6

 

 

 

77.8

%

Contracted backlog (GW)

 

7.5

 

 

4.6

 

 

2.9

 

 

63.0

%

Pipeline (GW)

 

25.8

 

 

 

12.2

 

 

 

13.6

 

 

 

111.5

%

Pipeline (GWh)

 

80.5

 

 

34.2

 

 

46.3

 

 

135.4

%

 

Fiscal Year Ended September 30,

 

 

 

 

 

 

 

(amounts in GW)

2024

 

2023

Change

 

Change %

Service Contracts

 

 

 

 

 

 

 

 

 

 

Assets under management

 

4.3

 

 

2.8

 

 

1.5

 

 

53.6

%

Contracted backlog

 

4.1

 

 

2.9

 

 

1.2

 

 

41.4

%

Pipeline

 

25.6

 

 

13.7

 

 

11.9

 

 

86.9

%

 

Fiscal Year Ended September 30,

 

 

 

 

 

 

 

(amounts in GW)

2024

 

2023

Change

 

Change %

Digital Contracts

 

 

 

 

 

 

 

 

 

 

Assets under management

 

18.3

 

 

15.5

 

 

2.8

 

 

18.1

%

Contracted backlog

 

10.6

 

 

6.8

 

 

3.8

 

 

55.9

%

Pipeline

 

64.5

 

 

 

24.4

 

 

 

40.1

 

 

 

164.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The following table presents our order intake for the three months and fiscal years ended September 30, 2024 and 2023. The table is presented in Gigawatts (GW):

 

 

Three Months
Ended September

 

 

 

 

 

 

 

 

 

Fiscal Year
Ended September

 

 

 

 

 

 

 

 

(amounts in GW)

 

2024

 

2023

 

Change

 

Change %

 

2024

 

2023

 

Change

 

Change %

Energy Storage Products

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contracted

 

 

1.4

 

 

 

0.6

 

 

 

0.8

 

 

 

133

%

 

 

5.2

 

 

 

2.2

 

 

 

3.0

 

 

 

136.4

%

Service Contracts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contracted

 

 

1.0

 

 

 

0.6

 

 

 

0.4

 

 

 

67

%

 

 

3.0

 

 

 

1.8

 

 

 

1.2

 

 

 

66.7

%

Digital Contracts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contracted

 

 

4.5

 

 

 

1.8

 

 

 

2.7

 

 

 

150

%

 

 

8.6

 

 

 

6.2

 

 

 

2.4

 

 

 

38.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deployed

Deployed represents cumulative energy storage products and solutions that have achieved substantial completion and are not decommissioned. Deployed is monitored by management to measure our performance towards achieving project milestones.

Assets Under Management

Assets under management for service contracts represents our long-term service contracts with customers associated with our completed energy storage system products and solutions. We start providing maintenance, monitoring, or other operational services after the storage product projects are completed. In some cases, services may be commenced for energy storage solutions prior to achievement of substantial completion. This is not limited to energy storage solutions delivered by Fluence. Assets under management for digital software represents contracts signed and active (post go live). Assets under management serves as an indicator of expected revenue from our customers and assists management in forecasting our expected financial performance.

Contracted Backlog

For our energy storage products and solutions contracts, contracted backlog includes signed customer orders or contracts under execution prior to when substantial completion is achieved. For service contracts, contracted backlog includes signed service agreements associated with our storage product projects that have not been completed and the associated service has not started. For digital applications contracts, contracted backlog includes signed agreements where the associated subscription has not started.

We cannot guarantee that our contracted backlog will result in actual revenue in the originally anticipated period or at all. Contracted backlog may not generate margins equal to our historical operating results. We have only recently begun to track our contracted backlog on a consistent basis as performance measures, and as a result, we do not have significant experience in determining the level of realization that we will achieve on these contracts. Our customers may experience project delays or cancel orders as a result of external market factors and economic or other factors beyond our control. If our contracted backlog fails to result in revenue as anticipated or in a timely manner, we could experience a reduction in revenue, profitability, and liquidity.

Contracted/Order Intake

Contracted, which we use interchangeably with “order intake”, represents new energy storage product and solutions contracts, new service contracts and new digital contracts signed during each period presented. We define “Contracted” as a firm and binding purchase order, letter of award, change order or other signed contract (in each case an “Order”) from the customer that is received and accepted by Fluence. Our order intake is intended to convey the dollar amount and gigawatts (operating measure) contracted in the period presented. We believe that order intake provides useful information to investors and management because the order intake provides visibility into future revenue and enables evaluation of the effectiveness of the Company’s sales activity and the attractiveness of its offerings in the market.

Pipeline

Pipeline represents our uncontracted, potential revenue from energy storage products and solutions, service, and digital software contracts, which have a reasonable likelihood of contract execution within 24 months. Pipeline is an internal management metric that we construct from market information reported by our global sales force. Pipeline is monitored by management to understand the anticipated growth of our Company and our estimated future revenue related to customer contracts for our battery-based energy storage products and solutions, services and digital software.

We cannot guarantee that our pipeline will result in actual revenue in the originally anticipated period or at all. Pipeline may not generate margins equal to our historical operating results. We have only recently begun to track our pipeline on a consistent basis as performance measures, and as a result, we do not have significant experience in determining the level of realization that we will achieve on these contracts. Our customers may experience project delays or cancel orders as a result of external market factors and economic or other factors beyond our control. If our pipeline fails to result in revenue as anticipated or in a timely manner, we could experience a reduction in revenue, profitability, and liquidity.

Annual Recurring Revenue (ARR)

ARR represents the net annualized contracted value including software subscriptions including initial trial, licensing, long term service agreements, and extended warranty agreements as of the reporting period. ARR excludes one-time fees, revenue share or other revenue that is non-recurring and variable. The Company believes ARR is an important operating metric as it provides visibility to future revenue. It is important to management to increase this visibility as we continue to expand. ARR is not a forecast of future revenue and should be viewed independently of revenue and deferred revenue as ARR is an operating metric and is not intended to replace these items.

FLUENCE ENERGY, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES (UNAUDITED)

 

The following tables present our non-GAAP measures for the periods indicated.

 

Three Months Ended
September 30,

 

 

Change

 

Fiscal Year Ended
September 30,

 

 

Change

($ in thousands)

2024

2023

Change

 

%

 

2024

2023

Change

 

%

Net income (loss)

$

67,724

 

 

$

4,817

 

$

62,907

 

 

1306

%

 

$

30,367

 

 

$

(104,818

)

 

$

135,185

 

 

 

129

%

Add (deduct):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income, net

(1,122

)

(1,137

)

15

 

 

(1

)%

 

(5,676

)

 

(5,388

)

 

(288

)

 

 

5

%

Income tax expense

7,878

 

6,607

 

1,271

 

 

19

%

 

9,206

 

 

4,549

 

 

4,657

 

 

 

102

%

Depreciation and amortization

4,088

 

2,814

 

1,274

 

 

45

%

 

14,482

 

 

10,665

 

 

3,817

 

 

 

36

%

Stock-based compensation

(a)

5,469

 

 

5,503

 

 

(34

)

 

(1

)%

 

23,875

 

 

26,920

 

 

(3,045

)

 

 

(11

)%

Other non-recurring expenses

(b)

2,835

 

1,245

 

1,590

 

 

128

%

 

5,852

 

 

6,684

 

 

(832

)

 

 

(12

)%

Adjusted EBITDA

$

86,872

 

 

$

19,849

 

 

$

67,023

 

 

338

%

 

$

78,106

 

 

$

(61,388

)

 

$

139,494

 

 

227

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a) Includes incentive awards that will be settled in shares and incentive awards that will be settled in cash.

(b) Amount for the three months ended September 30, 2024 includes approximately $1.3 million in costs related to Amendment No. 3 to the ABL Credit Agreement and $1.5 million in expenses related to the Tax Receivable Agreement. Amount for the fiscal year ended September 30, 2024 includes approximately $2.5 million in costs related to the termination of the Revolver and Amendment No. 3 to the ABL Credit Agreement, $1.5 million in expenses related to the Tax Receivable Agreement, $1.0 million in severance costs related to restructuring and $0.8 million in costs related to the secondary offering completed in December 2023. Amount for the three months and the fiscal year ended September 30, 2023 includes approximately $1.2 million and $6.7 million, respectively, in severance costs and consulting fees related to the restructuring plan from November 2022.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended
September 30,

 

 


Change 

 

Fiscal Year Ended
September 30,

 

 


Change 

($ in thousands)

2024

2023

Change

 

%

 

2024

2023

Change

 

%

Total revenue

$

1,228,148

 

$

672,982

 

$

555,166

 

 

82

%

 

$

2,698,562

 

 

$

2,217,978

 

 

$

480,584

 

 

 

22

%

Cost of goods and services

1,070,679

 

596,699

 

473,980

 

 

79

%

 

2,357,482

 

 

2,077,023

 

 

280,459

 

 

 

14

%

Gross profit

157,469

 

76,283

 

81,186

 

 

106

%

341,080

 

140,955

 

 

200,125

 

 

142

%

Gross profit margin %

12.8

%

 

11.3

%

 

 

 

 

 

 

 

 

12.6

%

 

6.4

%

 

 

 

 

 

 

 

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

(a)

876

 

 

800

 

 

76

 

 

10

%

 

4,080

 

 

4,164

 

 

(84

)

 

 

(2

)%

Amortization

(b)

920

 

 

339

 

 

581

 

 

 

171

%

 

2,696

 

 

830

 

 

1,866

 

 

 

225

%

Other non-recurring expenses

(c)

 

510

 

(510

)

 

(100

)%

 

 

 

946

 

 

(946

)

 

 

(100

)%

Adjusted Gross Profit

$

159,265

 

$

77,932

 

$

81,333

 

 

104

%

$

347,856

 

$

146,895

 

$

200,961

 

 

137

%

Adjusted Gross Profit Margin %

13.0

%

11.6

%

 

 

 

12.9

%

6.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a) Includes incentive awards that will be settled in shares and incentive awards that will be settled in cash.

(b) Amount related to amortization of capitalized software included in cost of goods and services.

(c) Amount for the three months and the fiscal year ended September 30, 2023 includes $0.5 million and $0.9 million, respectively, in severance costs related to the restructuring plan from November 2022.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal Year Ended September 30,

 

 

($ in thousands)

2024

2023

Change

 

Change %

Net cash provided by (used in) operating activities

$79,685

$(111,927)

$191,612

171%

Less: Purchase of property and equipment

(8,115)

(2,989)

(5,126)

171%

Free Cash Flow

$71,570

$(114,916)

$186,486

162%

 

 

 

 

 

 

 

 

____________________________
1 Non-GAAP Financial Metric. See the section below titled “Non-GAAP Financial Measures” for more information regarding the Company's use of non-GAAP financial measures, as well as a reconciliation to the most directly comparable financials measure stated in accordance with GAAP.
2 Backlog represents the unrecognized revenue value of our contractual commitments, which include deferred revenue and amounts that will be billed and recognized as revenue in future periods. The Company’s backlog may vary significantly each reporting period based on the timing of major new contractual commitments and the backlog may fluctuate with currency movements. In addition, under certain circumstances, the Company’s customers have the right to terminate contracts or defer the timing of its services and their payments to the Company.
3 Total cash includes Cash and cash equivalents + Restricted Cash + Short term investments. 

CONTACT: Contacts

Analyst
Lexington May, Vice President, Finance & Investor Relations
+1 713-909-5629
Email : InvestorRelations@fluenceenergy.com

Media
Email: media.na@fluenceenergy.com