Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
Please consider a small donation if you think this website provides you with relevant information
| Statement |
|---|
| This is truly a cost-saving measure for the fleet, and it's resonating quite well |
| In fact, we continue to gain market share with both new customer wins and new programs and models with existing customers |
| We are extremely excited about 2024 and beyond as the convergence of the new cell manufacturing, the new Dragonfly IntelLigence technology and the expansion of customer base and market segments sets the stage for an expected return to growth and profitability |
| So now that we've got a lot out there and we've got some very good data coming in, it bodes very well in terms of their ability to use this to save money on diesel fuel and to comply with anti-idling regulations |
| Despite the lower gross profit, gross margin improved to 29.1% from 26.9% in the same quarter a year ago due to a sales mix that included a larger contribution from higher-margin DTC sales |
| Importantly, all of these transportation opportunities encompass large lead-acid replacement requirements, where our experience in the RV market has provided us with the proven expertise to engineer full system solutions that are unique and differentiated |
| We are excited about the growing momentum in this new area of our business and believe these opportunities set the stage for additional growth in 2024 and beyond |
| Your OEM revenues fell disproportionate to that, but we're running well ahead of the market in the first half of the year |
| The fact that we are also deploying American innovation on American soil is becoming an increasingly attractive proposition for prospective customers and partners |
| So we're excited about the prospects for this new market because it's no longer a luxury |
| So as the industry begins to recover in 2024, we expect the RV market will return as an important growth driver for the company |
| On the revenue diversification front, we continue to make progress, particularly in transportation, where our pipeline of pilot programs and customer engagement continues to grow |
| This new APU is a comprehensive solution that enables compliance with increasing anti-idling regulations, while at the same time, potentially saving billions of dollars for operators in fuel costs and increases uptime and paid load capacity while reducing harmful emissions during idle periods |
| This continued increase in market share is largely driven by our in-house production, product quality and innovation |
| In terms of what the actual market looks like there, there's a couple of areas where we think it bodes very well |
| Finally, we continue to make progress with our patented dry deposition battery cell manufacturing technology |
| But between what we've got on the balance sheet today, and as I mentioned, having access to that equity line of credit, which we really have not used much at all, we feel like we've got access to the resources we need here to continue to execute on the plan and then hopefully be bringing these cells to market and things along those lines, which should improve as we go through next calendar year |
| Before moving to questions, I just want to take a moment to emphasize that we continue to execute and achieve our stated milestones, despite market headwinds |
| So the marine market itself is enormous |
| It seems like there's a significant opportunity there to reduce idle times |
| Could you maybe speak to the, call it, cost benefit for these truckers to transition to lithium-ion? And maybe give us a little bit of color on the conversations you've been having with some of those key players? Denis Phares Well, obviously, the conversations have been very positive, given their willingness to move so quickly, especially on the time line of this industry |
| We have developed, patented and deployed an entirely new cell manufacturing process that reduces the cost, energy usage and footprint of conventional cell manufacturing |
| The process itself is chemistry agnostic, meaning we can make any type of conventional lithium battery cell, and we have begun to receive inbound interest from additional large customers in the consumer electronics, data center backup and even electric vehicle markets |
| Vincent Anderson Excellent |
| Vincent Anderson Excellent |
| And combined with access to our largely untapped $150 million equity line of credit, we believe we have the resources needed to execute on our operational plans |
| Have a great day |
| So we see a lot of potential there |
| Brian Dobson Yes, excellent |
| I think there still is a pretty good and healthy debate about what the slope of that recovery looks like and how early or late in '24 it may actually start to occur |
| Statement |
|---|
| The RV industry, which is dependent on consumer discretionary spending, continues to face significant challenges with unit shipments down over 50% year-over-year, well below the industry's expectations just a few quarters ago |
| Dragonfly generated net sales of $15.9 million in the third quarter of 2023, down from $26.1 million in the third quarter of 2022 and at the low end of our guidance range as we saw year-over-year declines in both our OEM and DTC businesses due to RV market weakness |
| The decrease was in line with our expectations and is a result of decreased customer demand, given ongoing macroeconomic factors, such as higher interest rates and inflation |
| As discussed during our last earnings call, this steeper-than-expected decline in the RV industry has had a negative impact on our revenue |
| The loss of this revenue combined with overall RV weakness was the primary driver behind the year-over-year decline in our third quarter revenue |
| OEM revenue of $5.6 million in the third quarter declined by $8.3 million compared to the same quarter a year ago, primarily as a result of the previously disclosed decision by our largest RV OEM customer that due to weaker demand for its products and their need to focus on reducing costs, it is no longer installing our storage solutions as standard equipment, but instead has returned to offering our solutions as an option to dealers and consumers |
| The larger net loss compared to the same quarter a year ago was driven by lower sales, lower gross profit and higher interest expense |
| The decrease in gross profit was due to lower overall sales and unit volumes |
| While we have a number of exciting revenue diversification opportunities ahead of us, we continue to be negatively impacted in the near term by weaker demand in the RV market, particularly with OEM customers |
| Third quarter 2023 EBITDA was a negative $5.7 million compared to a negative $3.2 million in the third quarter of 2022 |
| Adjusted EBITDA, excluding stock-based compensation and changes in the fair market value of our warrants, was a negative $4.6 million in the third quarter compared to a negative $2.7 million in the same quarter a year ago |
| There’s a couple of year-end inventory items that will get folded into that as well, but it’s primarily because of the lower unit volumes that are expected |
| I mean the short answer to your question really is the lack of Keystone contribution in the third quarter, particularly on a year-over-year basis |
| I think it was down about 20% year-over-year |
| Our direct-to-consumer, or DTC, revenue was $10.3 million in the third quarter of 2023, down $1.9 million compared to the third quarter of 2022 |
| I mean, part of that, I think, is very much just the lower overall volumes that we’re trying to account for there |
| So it's a tough compare to begin with, as you rightly point out, with the unit declines |
| It looks like you guys are projecting some sequential deterioration on the gross margin side |
| A lot of the hindrance to the incorporation of lithium in the marine market has been insurance issues |
| We expect to report a net loss in the fourth quarter in the range of negative $9 million to negative $14.5 million or a negative $0.15 per share to a negative $0.24 per share based on approximately 60 million shares outstanding |
Please consider a small donation if you think this website provides you with relevant information