Fluence Energy (FLNC) Q4 2023 earnings summary

Executive summary

• FY23 marked the first profitable quarter: Q4 net income was $4.8M and Adjusted EBITDA was $19.8M; full-year revenue reached $2.2B, exceeding FY23 guidance for revenue and adjusted gross profit.

• Deployed and contracted storage capacity expanded, alongside growth in software assets under management; management described FY23 as a foundation for faster progress toward profitable growth.

Financial highlights

• FY23 revenue rose 85.0% YoY to $2.218B, driven mainly by higher Gen6 storage solution volumes across regions; cost of goods and services rose 64.7% to $2.077B.

• GAAP gross profit was $141.0M versus a $62.4M loss in FY22; gross margin was 6.4% versus -5.2%.

• FY23 net loss narrowed 63.8% to $104.8M from $289.2M; net loss attributable to Fluence Energy, Inc. was $69.6M, or $0.60 per share, versus $104.5M, or $1.50 per share.

• Adjusted EBITDA was a loss of $61.4M for FY23 versus a $235.3M loss in FY22; Q4 Adjusted EBITDA was $19.8M versus a $42.6M loss YoY.

• Adjusted gross profit was $146.9M and adjusted gross margin 6.6% in FY23, versus an adjusted gross loss of $53.8M and margin of -4.5% in FY22.

Outlook and guidance

• FY24 order intake is expected to be higher in Q3 and Q4 than in H1 as historical seasonality returns; services and digital applications have not historically been seasonal.

• Battery Pack production was anticipated to begin in mid-2024; the design is intended to improve system performance, supply-chain agility and potential eligibility for IRA domestic-content incentives.

• Management expected cash, operating cash flows, receivable-backed borrowing and the ABL facility to cover expense and capital needs for at least 12 months following the annual report filing.