Fluence Energy (FLNC) Q4 2021 earnings summary

Executive summary

• FY21 revenue grew 21.3% to $680.8M, while gross loss widened to $69.1M amid shipping constraints, project overruns and the cargo loss incident.

• Deployed storage capacity reached 971 MW; contracted backlog was 2,679 MW for products, 1,918 MW for services and 1,629 MW for digital contracts at Sept. 30, 2021.

• The Nov. 1 IPO raised $948.0M net; proceeds repaid the line of credit and promissory notes, with the balance intended for working capital and general corporate purposes.

Financial highlights

• FY21 revenue was $680.8M, up $119.4M or 21.3% YoY; energy storage product sales drove most of the increase.

• Gross loss was $69.1M and gross margin -10.2%, versus gross profit of $7.9M and margin of 1.4% in FY20.

• Adjusted gross profit was $15.0M, with adjusted margin of 2.2%, versus $8.9M and 1.6% in FY20; adjustment excluded non-recurring items including shipping, project and cargo costs.

• Net loss widened to $162.0M from $46.7M; adjusted net loss was $69.5M versus $42.5M in FY20.

• Adjusted EBITDA was -$64.7M versus -$35.9M in FY20; FY21 included $89.0M of specified non-recurring expenses, including $23.6M excess shipping, $48.2M project charges and $12.4M cargo loss.

Outlook and guidance

• Management expected IPO proceeds, operating cash flows, borrowings and the QIA investment to meet expenses and capital requirements for the next 12 months and described liquidity as sufficient for the foreseeable future.

• Plans included bringing a U.S. contract manufacturer online in FY22, regionalizing supply chains and adding capacity for the seventh-generation product rollout.

• FY22 priorities included expanding digital and services offerings; Q1 FY22 signed 325 MW of digital applications and 250 MW of services, while Americas recorded its highest quarterly sales to date.

• Operating expenses were expected to rise as investment continued in personnel, R&D, sales, operations and public-company requirements.