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| Statement |
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| This shows continued market growth, continued market activity, also with significantly larger projects, two of which we are announcing as new project awards in the U.S |
| Very proud of our progress, our delivery in our first two years, and never been more excited about what the future holds as I am now as we continue to push boundaries and innovation, while fortifying strong customer relationships that will be the basis of our future |
| This revenue reflects the successful execution across our project portfolio in the United States under a build, commission, and transfer model |
| market with the newly developed Energy Management Software platform that is winning rave reviews from customers and has been a key differentiator in our rapid commissioning timeframes and ability to quickly get through commissioning and site energization regardless of the underlying hardware |
| We took these actions to continue to provide strong balance sheet flexibility for growth, while accelerating our move to operating cash flow positive, which we have guided for our finish in Q4 this year and for the full year of 2025 |
| And amazing to me -- honestly, that with everything we've delivered in only our first two years and with the revenue growth we've done and positive unit economics and making the adjustments we just made, it's amazing to me where our stock continues to trade |
| I feel very good about that |
| This solidifies Energy Vault's global leadership role in green hydrogen technology for long-duration energy storage and specific microgrids for multi-day storage |
| Even on, I think, the gravity portion alone, had we recognized that, we would have exceeded the adjusted EBITDA EPS numbers as well |
| We also expect stronger double-digit gross margins in Q1, again, given the shift of revenue and gross margin recognition from the prior Q4 2023 |
| As you have seen in our results and forecast, we have a strong balance sheet with no debt, strong OpEx management in place, and thus the flexibility to continue to invest in growth |
| These customer satisfaction areas and testimonials are proving to be some of our best sales tools as we are well-positioned now for the next level of success, both within these customers that we've executed for, as well as new customers that observe our performance |
| We do remain laser-focused on optimizing our cost structure to realize profitability as soon as possible as the business continues to scale up and we remain very encouraged with our progress towards positive adjusted EBITDA |
| But I believe this has also enabled us to be one of the most customer-centric energy storage customers, listening to our customers and solving their problems with a broad portfolio of technology, innovation, and solutions that is unmatched in the market |
| This is so exciting for us as it represents the first public utility in the U.S |
| It also expanded sequentially quarter-over-quarter by 5.8 gigawatt hours, up 13% |
| As I will discuss, gross margins will improve significantly in the first quarter of 2024, benefiting from this shift from Q4, but also due to the mix of revenue with gravity and battery project timing |
| And finally, our commercial pipeline continues to expand with annual year-over-year growth of 24.5 gigawatt hours to a total of 52 gigawatt hours or almost 90% growth |
| The result has been the fastest-growing company in energy storage in only our first two years |
| We are continuing to see, I think, a strong market in shorter duration tech, combined with very interestingly, needs that are in this eight to 12-hour range for some specific applications |
| One being Vault-Manager for maximizing project, return on investments via optimizing asset performance, using enhanced performance analytics and predictive models to provide greater system reliability and visibility |
| Very excited to share progress now as we ramped up new systems with our new software platform and energy management system, our proprietary VaultOS Energy Management Software, showing its innovation right out of the gate, enabling efficient commissioning of our first projects that were turned over in the second half of 2023 and will begin contributing SaaS-based recurring revenues in 2024 |
| It's important to note here that while owning this project on our balance sheet will impact near-term revenue recognition in favor of long-term and predictable revenue streams from the tolling agreement, we believe this will also result in more predictable and less lumpy revenue streams with increased margins over time, which we believe is best for Energy Vault and our investors as we scale our business |
| As previously discussed, we believe this can be in the best long-term interest of our shareholders and thus Energy Vault, while helping to buffer the quarterly impact of larger projects that are being awarded on a global basis |
| Second, profitable unit economics as we grow |
| Financial results are highlighted by our full year 2023 revenue of more than $340 million, 134% higher than in 2022 |
| This was an important proven year for us to execute on over 1.7 gigawatt hour of projects announced in our first year of revenue and as a public company in 2022 in which we demonstrated that we can deliver on our promises and complete world-class energy storage facilities on time, on budget, and at performance levels at or above expectations of our very challenging customers |
| And then financially, very clear as you've heard as a theme on this call, setting ourselves up in 2024 as a profitable growth platform, while achieving cash flow positive as we exit and for full year 2025 |
| This is pretty noteworthy as we have kept and funded projects in California, for example, the Calistoga project for PG&E and Texas on our balance sheet, so we can participate in these projects in the longer term, predictable and less lumpy cash flows, and revenue streams from these tolling agreements, yet we were still able to grow cash quarter-over-quarter as we began to turn some of our first projects in the second half of the year to substantial completion and final completion |
| As always, we are focused on converting this growing commercial funnel into contracts that further bolster our revenue and backlog, and we remain committed to continue our track record of building profitable growth and unit economics with all new projects we choose to take on |
| Statement |
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| Our gross margin was 5.1% for the full year of 2023, temporarily impacted by the unfavorable timing of a few items |
| For the year ending December 31st, 2023, our adjusted EBITDA was negative $62.1 million and for the fourth quarter, adjusted EBITDA declined $3.6 million year-over-year to negative $14.8 million, reflecting a shift in timing of both battery and gravity revenue and gross profit from Q4 2023 to Q1 2024 |
| I would say, as you know, we've seen a tremendous drop in lithium-ion prices |
| You'll remember that Calistoga was hit pretty hard and they had to shut down the grid |
| While this business model will result in less recognized revenue in the near-term on projects that we would otherwise build commission and transfer under an EPC model |
| And I know it can be frustrating when you're new and you just do them and the timing of those royalties, understanding when are they going to come as systems get built and turned over |
| These are the things that go unseen and unheard about these unprecedented turnaround times in project delivery and energization are the nights, weekends, holiday times dedicated by our Energy Vault team to move heaven and earth to deliver for the customer |
| I do apologize |
| And quite frankly, the severity of the weather patterns are driving some of that |
| Finally, I'd be remiss if I was not recognizing a great year around our project execution |
| During 2023, our net loss amounted to $98.4 million, reflecting the points I previously mentioned and for the quarter, net loss amounted to $22.2 million |
| Please note that Energy Vault's earnings release and this call contain forward-looking statements that are subject to risks and uncertainties |
| Without those customers and without those future revenue streams and with those customers now uniquely as reference points for future deals and future customers, we would not have a bright future |
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