Tigo Energy Reports Fourth Quarter and Full Year 2023 Financial Results
Fourth Quarter and Full Year 2023 Revenue Totaled
Recent Financial and Operational Highlights
-
Revenue for the full year 2023 of
$145.2 million , up 78.6% compared to$81.3 million in the full year 2022. -
Gross profit for the full year 2023 of
$51.3 million , or 35.3% of revenues, up 107.1% compared to$24.8 million , or 30.5% of revenues, in the full year 2022. -
On a GAAP basis, net loss for the full year 2023 of
$1.0 million , compared to a net loss of$7.0 million in the full year 2022. On a non-GAAP basis, adjusted EBITDA for the full year 2023 of$1.0 million , compared to adjusted EBITDA of$2.5 million in the full year 2022. - Deployed our 10 millionth Tigo TS4 device. Tigo TS4 products ensure that installers have the flexibility to deploy the industry’s highest-wattage solar modules to offer the most energy production per available rooftop space.
-
Expanded the GO ESS product line, formerly referred to as the Tigo EI Solution, which provides intuitive and flexible energy solutions that are optimized to work together. This includes the Tigo GO EV Charger launched in the German market in
January 2024 . - Expanded the Predict+ software platform to include improved profit analysis modules, advanced algorithms for production and load forecasting, and a new billing module for IPP and virtual suppliers.
-
Announced CPV Retail Energy and EDF Renewables Israel as new Tigo Predict+ customers, increasing annual recurring revenue to
$0.8 million . -
Welcomed GoodWe,
SolaX Power , and Intercraft Solar as new licensees for Tigo’s rapid shutdown technology. - Unveiled the Tigo Green Glove service program for commercial and industrial solar installers. This program enhances the installer experience and drives quality across the solar value chain.
Management Commentary
“2023 was a transformational year for Tigo,” said
“Furthermore, our GO ESS product line grew steadily last year to represent approximately 9.2% of our total revenues and continues to show signs of progress this year,” Alon continued. “Finally, within our EI Software Platform, as previously announced, we acquired the Predict+ software solution in
“As we stated last quarter, we believe the ongoing inventory digestion cycle will be substantially complete by the end of the current quarter and that we are solidly positioned to expand our market share as the industry upturn emerges.”
Fourth Quarter 2023 Financial Results
Results compare the 2023 fiscal fourth quarter ended
-
Revenue for the fourth quarter 2023 totaled
$9.2 million , a 70.1% decrease from$30.9 million in the prior year comparable period. -
Gross profit for the fourth quarter 2023 totaled
$2.9 million , or 31.1% of total revenue, a 71.1% decrease from$10.0 million , or 32.2% of total revenue, in the prior year comparable period. -
Total operating expenses for the fourth quarter 2023 totaled
$16.4 million , a 110.2% increase from$7.8 million in the prior year comparable period. -
Net loss for the fourth quarter 2023 totaled
$14.8 million , compared to net income of$0.9 million for the prior year comparable period. -
Adjusted EBITDA loss totaled
$11.6 million for the fourth quarter 2023, compared to adjusted EBITDA of$2.7 million for the prior year comparable period.
Full Year 2023 Financial Results
Results compare the 2023 fiscal full year ended
-
Revenue totaled
$145.2 million , a 78.6% increase from$81.3 million in the prior year comparable period. -
Gross profit totaled
$51.3 million , or 35.3% of total revenue, a 107.1% increase from$24.8 million , or 30.5% of total revenue, in the prior year comparable period. -
Total operating expenses totaled
$59.6 million , a 132.1% increase from$25.7 million in the prior year comparable period. -
Net loss totaled
$1.0 million , compared to a net loss of$7.0 million for the prior year comparable period. Net loss includes the mark-to-market benefit of$12.2 million related to the conversion feature of the convertible note. -
Adjusted EBITDA totaled
$1.0 million , compared to an adjusted EBITDA of$2.5 million for the prior year comparable period. -
Cash, cash equivalents, and marketable securities totaled
$33.2 million atDecember 31, 2023 .
First Quarter 2024 Outlook
The Company also provides guidance for the first quarter ending
-
Revenues are expected to be within the range of
$9 million to$14 million . -
Adjusted EBITDA loss is expected to be within the range of
$8 million to$12 million .
Actual results may differ materially from the Company’s guidance as a result of, among other things, the factors described below under “Forward-Looking Statements”.
Conference Call
Tigo management will hold a conference call today,
Registration Link: Click here to register
Please register online at least 10 minutes prior to the start time. If you have any difficulty with registration or connecting to the conference call, please contact
The conference call will be broadcast live and available for replay here and via the Investor Relations section of Tigo’s website.
About
Founded in 2007, Tigo is a worldwide leader in the development and manufacture of smart hardware and software solutions that enhance safety, increase energy yield, and lower operating costs of residential, commercial, and utility-scale solar systems. Tigo combines its Flex MLPE (
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about current and future inventory levels and its impact on future financial results, statements about our ability to penetrate new markets and expand our market share, including expansion in international markets, our continued expansion of and investments in our product portfolio, and future financial and operating results, our plans, objectives, expectations and intentions with respect to future operations, products and services; and other statements identified by words such as “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimated,” “expected”, “believe,” “intend,” “plan,” “projection,” “outlook” or words of similar meaning. These forward-looking statements are based upon the current beliefs and expectations of Tigo’s management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are difficult to predict and generally beyond our control. Actual results and the timing of events may differ materially from the results anticipated in these forward-looking statements.
In addition to factors previously disclosed, or that will be disclosed in, our reports filed with the
Actual results, performance or achievements may differ materially, and potentially adversely, from any projections and forward-looking statements and the assumptions on which those forward-looking statements are based. There can be no assurance that the forward-looking statements contained herein are reflective of future performance to any degree. You are cautioned not to place undue reliance on forward-looking statements as a predictor of future performance as projected financial information and other information are based on estimates and assumptions that are inherently subject to various significant risks, uncertainties and other factors, many of which are beyond our control. All information set forth herein speaks only as of the date hereof, and we disclaim any intention or obligation to update any forward-looking statements as a result of new information, future developments or otherwise occurring after the date of this communication.
Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measure: adjusted EBITDA. The presentation of this financial measure is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.
We use adjusted EBITDA for financial and operational decision-making and as a means to evaluate period-to-period comparisons. We define adjusted EBITDA, a non-GAAP financial measure, as earnings (loss) before interest and other expenses, net, income tax expense (benefit), depreciation and amortization, as adjusted to exclude stock-based compensation and merger transaction related expenses. We believe that adjusted EBITDA provides helpful supplemental information regarding our performance by excluding certain items that may not be indicative of our recurring core business operating results. We believe that both management and investors benefit from referring to adjusted EBITDA in assessing our performance and when planning, forecasting, and analyzing future periods. Adjusted EBITDA also facilitates management’s internal comparisons to our historical performance and comparisons to our competitors’ operating results. We believe adjusted EBITDA is useful to investors both because it (i) allows for greater transparency with respect to key metrics used by management in its financial and operational decision-making and (ii) is used by our institutional investors and the analyst community to help them analyze the health of our business.
The items excluded from adjusted EBITDA may have a material impact on our financial results. Certain of those items are non-recurring, while others are non-cash in nature. Accordingly, adjusted EBITDA is presented as supplemental disclosure and should not be considered in isolation of, as a substitute for, or superior to, the financial information prepared in accordance with GAAP.
There are a number of limitations related to the use of non-GAAP financial measures. We compensate for these limitations by providing specific information regarding the GAAP amounts excluded from these non-GAAP financial measures and evaluating these non-GAAP financial measures together with their relevant financial measures in accordance with GAAP.
We refer investors to the reconciliation adjusted EBITDA to net income (loss) included below. A reconciliation for adjusted EBITDA provided as guidance is not provided because, as a forward-looking statement, such reconciliation is not available without unreasonable effort due to the high variability, complexity, and difficulty of estimating certain items such as charges to stock-based compensation expense and currency fluctuations which could have an impact on our consolidated results.
|
||||||||
Condensed Consolidated Balance Sheets |
||||||||
(in thousands) |
||||||||
(unaudited) |
||||||||
|
|
|
|
|
||||
ASSETS |
||||||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
4,405 |
|
|
$ |
36,194 |
|
Restricted cash |
|
|
— |
|
|
|
1,523 |
|
Marketable securities, short-term |
|
|
26,806 |
|
|
|
— |
|
Accounts receivable, net |
|
|
6,862 |
|
|
|
15,816 |
|
Inventory, net |
|
|
61,401 |
|
|
|
24,915 |
|
Deferred issuance costs |
|
|
— |
|
|
|
2,221 |
|
Notes receivable |
|
|
— |
|
|
|
456 |
|
Prepaid expenses and other current assets |
|
|
5,236 |
|
|
|
3,967 |
|
Total current assets |
|
|
104,710 |
|
|
|
85,092 |
|
Property and equipment, net |
|
|
3,458 |
|
|
|
1,652 |
|
Operating right-of-use assets |
|
|
2,503 |
|
|
|
1,252 |
|
Marketable securities, long-term |
|
|
1,977 |
|
|
|
— |
|
Intangible assets, net |
|
|
2,192 |
|
|
|
— |
|
Deferred tax assets |
|
|
21 |
|
|
|
— |
|
Other assets |
|
|
707 |
|
|
|
82 |
|
|
|
|
12,209 |
|
|
|
— |
|
Total assets |
|
$ |
127,777 |
|
|
$ |
88,078 |
|
LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT) |
||||||||
Current liabilities: |
|
|
|
|
||||
Accounts payable |
|
$ |
15,685 |
|
|
$ |
23,286 |
|
Accrued expenses and other current liabilities |
|
|
8,681 |
|
|
|
4,382 |
|
Deferred revenue, current portion |
|
|
335 |
|
|
|
950 |
|
Warranty liability, current portion |
|
|
526 |
|
|
|
392 |
|
Operating lease liabilities, current portion |
|
|
1,192 |
|
|
|
578 |
|
Current maturities of long-term debt |
|
|
— |
|
|
|
10,000 |
|
Total current liabilities |
|
|
26,419 |
|
|
|
39,588 |
|
Warranty liability, net of current portion |
|
|
5,106 |
|
|
|
3,959 |
|
Deferred revenue, net of current portion |
|
|
466 |
|
|
|
172 |
|
Long-term debt, net of current maturities and unamortized debt issuance costs |
|
|
31,570 |
|
|
|
10,642 |
|
Operating lease liabilities, net of current portion |
|
|
1,392 |
|
|
|
762 |
|
Preferred stock warrant liability |
|
|
— |
|
|
|
1,507 |
|
Total liabilities |
|
|
64,953 |
|
|
|
56,630 |
|
Convertible preferred stock |
|
|
— |
|
|
|
87,140 |
|
Stockholders’ equity (deficit): |
|
|
|
|
||||
Common stock |
|
|
6 |
|
|
|
1 |
|
Additional paid-in capital |
|
|
138,657 |
|
|
|
6,522 |
|
Accumulated deficit |
|
|
(75,780 |
) |
|
|
(62,215 |
) |
Accumulated other comprehensive income |
|
|
(59 |
) |
|
|
— |
|
Total stockholders’ equity (deficit) |
|
|
62,824 |
|
|
|
(55,692 |
) |
Total liabilities, convertible preferred stock and stockholders’ equity (deficit) |
|
$ |
127,777 |
|
|
$ |
88,078 |
|
|
||||||||||||||||
Condensed Consolidated Statement of Operations |
||||||||||||||||
(in thousands, except per share data) |
||||||||||||||||
(unaudited) |
||||||||||||||||
|
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Net revenue |
|
$ |
9,245 |
|
|
$ |
30,941 |
|
|
$ |
145,233 |
|
|
$ |
81,323 |
|
Cost of revenue |
|
|
6,369 |
|
|
|
20,973 |
|
|
|
93,924 |
|
|
|
56,552 |
|
Gross profit |
|
|
2,876 |
|
|
|
9,968 |
|
|
|
51,309 |
|
|
|
24,771 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
||||||||
Research and development |
|
|
2,433 |
|
|
|
1,206 |
|
|
|
9,496 |
|
|
|
5,682 |
|
Sales and marketing |
|
|
5,745 |
|
|
|
3,605 |
|
|
|
21,281 |
|
|
|
10,953 |
|
General and administrative |
|
|
8,240 |
|
|
|
2,998 |
|
|
|
28,807 |
|
|
|
9,032 |
|
Total operating expenses |
|
|
16,418 |
|
|
|
7,809 |
|
|
|
59,584 |
|
|
|
25,667 |
|
(Loss) income from operations |
|
|
(13,542 |
) |
|
|
2,159 |
|
|
|
(8,275 |
) |
|
|
(896 |
) |
Other (income) expenses: |
|
|
|
|
|
|
|
|
||||||||
Change in fair value of preferred stock warrant and contingent shares liability |
|
|
(1,252 |
) |
|
|
1,057 |
|
|
|
(1,109 |
) |
|
|
1,020 |
|
Change in fair value of derivative liability |
|
|
— |
|
|
|
— |
|
|
|
(12,247 |
) |
|
|
— |
|
Loss on debt extinguishment |
|
|
— |
|
|
|
— |
|
|
|
171 |
|
|
|
3,613 |
|
Interest expense |
|
|
2,875 |
|
|
|
253 |
|
|
|
8,115 |
|
|
|
1,494 |
|
Other income, net |
|
|
(500 |
) |
|
|
(125 |
) |
|
|
(2,359 |
) |
|
|
(57 |
) |
Total other expenses (income), net |
|
|
1,123 |
|
|
|
1,185 |
|
|
|
(7,429 |
) |
|
|
6,070 |
|
(Loss) income before income tax expense |
|
|
(14,665 |
) |
|
|
974 |
|
|
|
(846 |
) |
|
|
(6,966 |
) |
Income tax expense |
|
|
109 |
|
|
|
71 |
|
|
|
138 |
|
|
|
71 |
|
Net (loss) income |
|
|
(14,774 |
) |
|
|
903 |
|
|
|
(984 |
) |
|
|
(7,037 |
) |
Dividends on Series D and Series E convertible preferred stock |
|
|
— |
|
|
|
(2,102 |
) |
|
|
(3,399 |
) |
|
|
(6,344 |
) |
Net loss attributable to common stockholders |
|
$ |
(14,774 |
) |
|
$ |
(1,199 |
) |
|
$ |
(4,383 |
) |
|
$ |
(13,381 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Loss per common share |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
$ |
(0.25 |
) |
|
$ |
(0.23 |
) |
|
$ |
(0.08 |
) |
|
$ |
(2.71 |
) |
Diluted |
|
$ |
(0.25 |
) |
|
$ |
(0.23 |
) |
|
$ |
(0.14 |
) |
|
$ |
(2.71 |
) |
Weighted-average common shares outstanding |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
|
58,749,524 |
|
|
|
5,203,886 |
|
|
|
38,048,516 |
|
|
|
4,940,562 |
|
Diluted |
|
|
58,749,524 |
|
|
|
5,203,886 |
|
|
|
43,223,134 |
|
|
|
4,940,562 |
|
|
||||||||
Condensed Consolidated Statements of Cash Flows |
||||||||
(in thousands) |
||||||||
(unaudited) |
||||||||
|
|
Year Ended |
||||||
|
|
2023 |
|
2022 |
||||
Cash Flows from Operating activities: |
|
|
|
|
||||
Net loss |
|
$ |
(984 |
) |
|
$ |
(7,037 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
||||
Depreciation and amortization |
|
|
1,106 |
|
|
|
562 |
|
Reserve for inventory obsolescence |
|
|
713 |
|
|
|
123 |
|
Change in fair value of preferred stock warrant and contingent shares liability |
|
|
(1,109 |
) |
|
|
1,020 |
|
Change in fair value of derivative liability |
|
|
(12,247 |
) |
|
|
— |
|
Deferred tax benefit |
|
|
(21 |
) |
|
|
— |
|
Non-cash interest expense |
|
|
5,473 |
|
|
|
256 |
|
Stock-based compensation |
|
|
3,808 |
|
|
|
813 |
|
Allowance for credit losses |
|
|
3,870 |
|
|
|
596 |
|
Loss on debt extinguishment |
|
|
171 |
|
|
|
3,613 |
|
Non-cash lease expense |
|
|
996 |
|
|
|
535 |
|
Forgiveness of recourse promissory note and accrued interest |
|
|
— |
|
|
|
117 |
|
Accretion of interest on marketable securities |
|
|
(508 |
) |
|
|
— |
|
Loss on disposal of property and equipment |
|
|
17 |
|
|
|
— |
|
Changes in operating assets and liabilities: |
|
|
|
|
||||
Accounts receivable |
|
|
5,201 |
|
|
|
(12,533 |
) |
Inventory |
|
|
(37,199 |
) |
|
|
(14,969 |
) |
Prepaid expenses and other assets |
|
|
(1,272 |
) |
|
|
(2,459 |
) |
Accounts payable |
|
|
(8,577 |
) |
|
|
10,890 |
|
Accrued expenses and other liabilities |
|
|
3,383 |
|
|
|
952 |
|
Deferred revenue |
|
|
(321 |
) |
|
|
673 |
|
Warranty liability |
|
|
1,281 |
|
|
|
958 |
|
Deferred rent |
|
|
— |
|
|
|
(135 |
) |
Operating lease liabilities |
|
|
(1,003 |
) |
|
|
(447 |
) |
Net cash used in operating activities |
|
$ |
(37,222 |
) |
|
$ |
(16,472 |
) |
Investing activities: |
|
|
|
|
||||
Purchase of marketable securities |
|
|
(53,483 |
) |
|
|
— |
|
Cash invested in note receivable |
|
|
— |
|
|
|
(456 |
) |
Acquisition of fSight |
|
|
(16 |
) |
|
|
— |
|
Purchase of intangible assets |
|
|
(450 |
) |
|
|
— |
|
Purchase of property and equipment |
|
|
(2,114 |
) |
|
|
(1,147 |
) |
Sales and maturities of marketable securities |
|
|
25,149 |
|
|
|
— |
|
Net cash used in investing activities |
|
$ |
(30,914 |
) |
|
$ |
(1,603 |
) |
Financing activities: |
|
|
|
|
||||
Proceeds from Convertible Promissory Note |
|
|
50,000 |
|
|
|
25,000 |
|
Repayment of Series 2022-1 Notes |
|
|
(20,833 |
) |
|
|
(4,165 |
) |
Repayment of Senior Bonds |
|
|
— |
|
|
|
(10,000 |
) |
Payment of financing costs |
|
|
(358 |
) |
|
|
(3,473 |
) |
Proceeds from sale of Series E convertible preferred stock |
|
|
— |
|
|
|
40,978 |
|
Proceeds from Business Combination |
|
|
2,238 |
|
|
|
— |
|
Proceeds from exercise of stock options |
|
|
215 |
|
|
|
325 |
|
Payment of tax withholdings on stock options |
|
|
(91 |
) |
|
|
— |
|
Payment of issuance costs |
|
|
— |
|
|
|
(139 |
) |
Payment of issuance costs related to the sale of Series E convertible preferred stock |
|
|
— |
|
|
|
(208 |
) |
Proceeds from common stock warrant redemption, net of issuance costs and payments to warrant holders of non-redeemed warrants |
|
|
3,653 |
|
|
|
— |
|
Net cash provided by financing activities |
|
$ |
34,824 |
|
|
$ |
48,318 |
|
Net (decrease) increase in cash and restricted cash |
|
|
(33,312 |
) |
|
|
30,243 |
|
Cash, cash equivalents, and restricted cash at beginning of period |
|
|
37,717 |
|
|
|
7,474 |
|
Cash, cash equivalents, and restricted cash at end of period |
|
$ |
4,405 |
|
|
$ |
37,717 |
|
|
||||||||||||||||
Non-GAAP Financial Measures |
||||||||||||||||
(in thousands) |
||||||||||||||||
(unaudited) |
||||||||||||||||
|
||||||||||||||||
Reconciliation of Net (Loss) Income (GAAP) to Adjusted EBITDA (Non-GAAP) |
||||||||||||||||
|
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Net (loss) income |
|
$ |
(14,774 |
) |
|
$ |
903 |
|
$ |
(984 |
) |
|
$ |
(7,037 |
) |
|
Adjustments: |
|
|
|
|
|
|
|
|
||||||||
Total other expenses (income), net |
|
|
1,123 |
|
|
|
1,185 |
|
|
|
(7,429 |
) |
|
|
6,070 |
|
Income tax expense |
|
|
109 |
|
|
|
71 |
|
|
|
138 |
|
|
|
71 |
|
Depreciation and amortization |
|
|
286 |
|
|
|
158 |
|
|
|
1,106 |
|
|
|
562 |
|
Stock-based compensation |
|
|
1,671 |
|
|
|
420 |
|
|
|
3,808 |
|
|
|
813 |
|
M&A transaction expenses |
|
|
— |
|
|
|
— |
|
|
|
4,399 |
|
|
|
2,000 |
|
Adjusted EBITDA |
|
$ |
(11,585 |
) |
|
$ |
2,737 |
|
|
$ |
1,038 |
|
|
$ |
2,479 |
|
We encourage investors and others to review our financial information in its entirety and not to rely on any single financial measure.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240213551311/en/
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Source: Tigo