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.
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| Statement |
|---|
| Clearly, this quarter has been good |
| Importantly, we had several contracts that were signed just subsequent to quarter end, amounting to approximately $400 million, which provides us with strong visibility to achieving our 2024 revenue guidance |
| It's a tremendous opportunity to create value for shareholders to play in the new energy space |
| I am excited to be joining Fluence at a time when energy transition is achieving critical momentum, which presents so much opportunity for the company and for energy storage in general |
| Second, we proactively secured our future by solidifying our battery supply for fiscal years 2024 and 2025, thus ensuring our ability to meet our growing demand |
| Firstly, we had a robust financial performance contributing to a record-breaking annual revenue |
| I would like to express my appreciation to Manu for his invaluable contributions to Fluence, particularly the strong foundation he has established to position us for continued success in the future |
| From a margin perspective, we expect fiscal 2024 adjusted gross margins to be between 10% and 12%, which is an improvement from the fiscal 2023 adjusted gross margin of nearly 7% |
| We continued to experience strong demand for our products and services, with new orders totaling approximately $737 million, highlighted by our solutions business contracting 2.1 gigawatt hours, our services business adding 1.6 gigawatt hours, and our digital business adding 1.8 gigawatts of new contract |
| When we looked at our leads, when we're talking to our customers, what we're doing gives us a good - we feel very confident that we can do a 35% to 40% for 2025 |
| So, we can do better than what we expected and the US content offering, which might - the domestic content offering, which might - as I said, this is something that we might see as an opportunity for higher margins |
| I'm pleased to say we have demonstrated cost discipline as our operating expenses, excluding stock cost, as a percentage of revenue, continue to decline and ended up around 9% for the quarter |
| Lastly, our services and digital businesses, which together represent our recurrent revenue stream, continued to see traction |
| Turning to our digital business, we had a very strong quarter as we were able to contract 1.8 gigawatts |
| But hey, I think that - I think it's better to keep it with this view, and that allows us, all of us to work better as we move forward |
| We feel very, very confident on our 10% to 15% margin |
| We continued to execute well as we were able to accelerate some of our legacy backlog previously anticipated for fiscal year 2024, resulting in higher-than-expected revenue for the fourth quarter |
| We grew our annual revenue by 85% and achieved our first profitable quarter |
| Importantly, we exceeded our original annual revenue guidance by more than $600 million, thanks to improved execution, ease in supply chains, and project timeline acceleration |
| And our 10% to 15%, we feel very confident that's the way we do deals |
| In conclusion, I'm pleased with the achievements of the fourth quarter, although we're mindful there's still work to be done |
| This target is well supported by a robust service attachment rate exceeding 90% and a full 100% attachment rate for Nispera moving forward |
| First, on delivering profitable growth, I’m pleased to report that we exceeded our fiscal year 2023 guidance for both revenue and adjusted gross profit |
| As such, I'm pleased to report that in October, we launched Gridstack Pro, our larger enclosure providing higher density, faster installation, enhanced performance, and industry-leading safety |
| As we enter fiscal year 2024, we believe we have a very strong balance and an ample working capital facility necessary to scale our platform and achieve our 2024 guidance |
| Finally, the introduction of our new $400 million ABL facility provides us an additional tool to continue capturing the robust growth of the utility scale |
| So, but very, very strong market all around and the US still leads the pack |
| As a result of our strong execution in the fourth quarter, we were able to generate $20 million of adjusted EBITDA, and as Julian mentioned, this signals the first phase of our transformation is complete |
| And I think this is one of our successes, the ability to continue growing with none - our own unrelated party transactions that's growing at a much higher rate than the 35% to 40%, as you can see from where our pipeline stands today and where our revenue stands today |
| Our deal for the US supply is a multi-year deal that will cover a few years, and I will expect that - that becomes a - solidifies, and it will continue for many years |
| Statement |
|---|
| As a result of this, we do expect our first quarter to produce negative adjusted EBITDA due to lower revenue on the execution of the remaining legacy contracts |
| And people might argue, hey, your volumes are going to come down because now you are going to come out of a lower price |
| And Julian, you, you talked a lot about battery costs, but there's a bit of a slowdown in EV sales |
| And I'll tell you even more, in our case, because as you all know, our product costs have come down, with battery prices coming down significantly this year |
| That's what I will say, that helped bring it up beyond, below, above the - and those are difficult to predict |
| Furthermore, our signed contract backlogs as of September 30, remain at $2.9 billion due to acceleration of select projects ahead of schedule |
| In this quarter, they say that - it's difficult to know |
| It's difficult to have a seasonality on order intake, to be very, very sincere with you |
| They won't go up, but I don't see these prices of batteries and lithium and lithium carbonate coming down below where we are |
| We believe it will take us at least two years to reduce our cycle times down to 12 months |
| Again, Manu, we’ll miss you, but good luck |
| Difficult |
| From a year-over-year comparison, our 2023 OpEx percentage of revenue, excluding stock compensation, came in around 10%, which is below our 2022 results of around 15%, further illustrating our cost discipline |
| It doesn't get any better than what this market offers today |
| He has done a remarkable turnaround job here, and as a result, he caught the attention of others |
| So, our view has always been, as prices of lithium come down, it goes to our customers |
| And in terms of margins, as I said hey, I see this as - I don't think the lower pricing will affect our margins, our 10% to 15% margins going forward |
| A lot of the issues that they were addressing were not related to our industry, but the ones that were related to our industry, to the battery storage were in line with what we expected, so |
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