Tigo Energy Reports Third Quarter 2024 Financial Results
Recent Financial and Operational Highlights
-
Quarterly revenue of
$14.2 million - GAAP gross margin of 12.5%
-
GAAP operating loss of
$10.4 million -
GAAP net loss of
$13.1 million -
Adjusted EBITDA loss of
$8.3 million -
Cash, cash equivalents, and marketable securities of
$19.5 million - Shipped 403,000 MLPE, or approximately 202 MWdc assuming an average panel size of 500W
- Selected to deliver more than 97,000 optimizers, including TS4-X-O’s, for Brazil’s largest floating solar plant project
-
Total Predict+ meters under management grew to 62,000 and 6 new Predict+ agreements with a multi-year contract value of
$0.7 million were signed during the quarter -
Announced a partnership to deliver rapid shutdown technology to
Costa Rica as mandates for solar safety technology spread acrossLatin America -
Welcomed back
Anita Chang as Chief Operating Officer
Management Commentary
“We experienced our third sequential quarterly increase in revenues in a row in the third quarter of 2024 and believe the fourth quarter will continue to reflect the improved momentum our business is experiencing,” said
“While the industry is still contending with headwinds, we believe that our robust product portfolio positions us to mitigate competitive pressures. As demand for our solutions continues to return, we expect revenues and profitability to increase steadily in the future. We are encouraged by the momentum we’ve built over the last three quarters and remain focused on advancing our mission to be a leading provider of intelligent solar and energy storage solutions.”
“On a sequential quarter basis, we reduced our cash burn rate with cash declining by
Third Quarter 2024 Financial Results
Results compare the 2024 fiscal third quarter ended
-
Revenues totaled
$14.2 million , a 16.8% decrease from$17.1 million . On a sequential quarter basis, revenues increased by$1.5 million , or 12.1%. -
Gross profit totaled
$1.8 million , or 12.5% of total revenue, a 57.3% decrease from$4.2 million , or 24.3% of total revenue. Gross profit includes inventory charges of$3.4 million and$1.8 million , respectively. -
Total operating expenses totaled
$12.2 million , a 20.7% decrease from$15.4 million . -
Net loss totaled
$13.1 million , compared to a net income of$29.1 million . -
Adjusted EBITDA loss totaled
$8.3 million , compared to an adjusted EBITDA loss of$9.5 million . -
Cash, cash equivalents, and marketable securities totaled
$19.5 million atSeptember 30, 2024 . On a sequential quarter basis, cash declined by$0.7 million .
Fourth Quarter 2024 Outlook
The Company also provides guidance for the fourth quarter ending
-
Revenues are expected to be within the range of
$14 million to$17 million . -
Adjusted EBITDA loss is expected to be within the range of
$6.5 million to$8.5 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 our ability to increase our revenues and become profitable, our overall long-term growth prospects, expectations regarding a recovery in our industry, including the timing thereof, current and future inventory levels and reserves and its impact on future financial results, statements about demand for our products, our competitive position, and 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,” “will allow us to” “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 (including our projected break-even point) 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 |
|
$ |
9,461 |
|
|
$ |
4,405 |
|
|
Marketable securities, short-term |
|
|
10,043 |
|
|
|
26,806 |
|
|
Accounts receivable, net |
|
|
8,828 |
|
|
|
6,862 |
|
|
Inventory |
|
|
46,789 |
|
|
|
61,401 |
|
|
Prepaid expenses and other current assets |
|
|
3,594 |
|
|
|
5,236 |
|
|
Total current assets |
|
|
78,715 |
|
|
|
104,710 |
|
|
Property and equipment, net |
|
|
3,044 |
|
|
|
3,458 |
|
|
Operating right-of-use assets |
|
|
1,842 |
|
|
|
2,503 |
|
|
Marketable securities, long-term |
|
|
— |
|
|
|
1,977 |
|
|
Intangible assets, net |
|
|
1,989 |
|
|
|
2,192 |
|
|
Other assets |
|
|
772 |
|
|
|
728 |
|
|
|
|
|
12,209 |
|
|
|
12,209 |
|
|
Total assets |
|
$ |
98,571 |
|
|
$ |
127,777 |
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||||
|
Current liabilities |
|
|
|
|
||||
|
Accounts payable |
|
$ |
11,841 |
|
|
$ |
15,685 |
|
|
Accrued expenses and other current liabilities |
|
|
6,143 |
|
|
|
8,681 |
|
|
Deferred revenue, current portion |
|
|
556 |
|
|
|
335 |
|
|
Warranty liability, current portion |
|
|
513 |
|
|
|
526 |
|
|
Operating lease liabilities, current portion |
|
|
849 |
|
|
|
1,192 |
|
|
Total current liabilities |
|
|
19,902 |
|
|
|
26,419 |
|
|
Warranty liability, net of current portion |
|
|
5,194 |
|
|
|
5,106 |
|
|
Deferred revenue, net of current portion |
|
|
674 |
|
|
|
466 |
|
|
Long-term debt, net of unamortized debt discount and issuance costs |
|
|
38,275 |
|
|
|
31,570 |
|
|
Operating lease liabilities, net of current portion |
|
|
1,057 |
|
|
|
1,392 |
|
|
Total liabilities |
|
|
65,102 |
|
|
|
64,953 |
|
|
Stockholders’ equity |
|
|
|
|
||||
|
Common stock |
|
|
6 |
|
|
|
6 |
|
|
Additional paid-in capital |
|
|
145,184 |
|
|
|
138,657 |
|
|
Accumulated deficit |
|
|
(111,724 |
) |
|
|
(75,780 |
) |
|
Accumulated other comprehensive loss |
|
|
3 |
|
|
|
(59 |
) |
|
Total stockholders’ equity |
|
|
33,469 |
|
|
|
62,824 |
|
|
Total liabilities and stockholders’ equity |
|
$ |
98,571 |
|
|
$ |
127,777 |
|
|
Condensed Consolidated Statement of Income (in thousands, except share and per share data) (unaudited) |
||||||||||||||||
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
Net revenue |
|
$ |
14,237 |
|
|
$ |
17,104 |
|
|
$ |
36,740 |
|
|
$ |
135,988 |
|
|
Cost of revenue |
|
|
12,463 |
|
|
|
12,946 |
|
|
|
28,333 |
|
|
|
87,555 |
|
|
Gross profit |
|
|
1,774 |
|
|
|
4,158 |
|
|
|
8,407 |
|
|
|
48,433 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Operating expenses: |
|
|
|
|
|
|
|
|
||||||||
|
Research and development |
|
|
2,433 |
|
|
|
2,425 |
|
|
|
7,608 |
|
|
|
7,063 |
|
|
Sales and marketing |
|
|
4,378 |
|
|
|
5,601 |
|
|
|
13,036 |
|
|
|
15,536 |
|
|
General and administrative |
|
|
5,380 |
|
|
|
7,350 |
|
|
|
15,671 |
|
|
|
20,567 |
|
|
Total operating expenses |
|
|
12,191 |
|
|
|
15,376 |
|
|
|
36,315 |
|
|
|
43,166 |
|
|
(Loss) income from operations |
|
|
(10,417 |
) |
|
|
(11,218 |
) |
|
|
(27,908 |
) |
|
|
5,267 |
|
|
Other expenses (income): |
|
|
|
|
|
|
|
|
||||||||
|
Change in fair value of preferred stock warrant and contingent shares liability |
|
|
3 |
|
|
|
(2,977 |
) |
|
|
(152 |
) |
|
|
143 |
|
|
Change in fair value of derivative liability |
|
|
— |
|
|
|
(50,498 |
) |
|
|
— |
|
|
|
(12,247 |
) |
|
Loss on debt extinguishment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
171 |
|
|
Interest expense |
|
|
2,861 |
|
|
|
2,875 |
|
|
|
8,549 |
|
|
|
5,240 |
|
|
Other income, net |
|
|
(164 |
) |
|
|
(636 |
) |
|
|
(377 |
) |
|
|
(1,859 |
) |
|
Total other expenses (income), net |
|
|
2,700 |
|
|
|
(51,236 |
) |
|
|
8,020 |
|
|
|
(8,552 |
) |
|
(Loss) income before income tax expense |
|
|
(13,117 |
) |
|
|
40,018 |
|
|
|
(35,928 |
) |
|
|
13,819 |
|
|
Income tax expense |
|
|
— |
|
|
|
10,962 |
|
|
|
16 |
|
|
|
29 |
|
|
Net (loss) income |
|
|
(13,117 |
) |
|
|
29,056 |
|
|
|
(35,944 |
) |
|
|
13,790 |
|
|
Cumulative dividends on convertible preferred stock |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3,399 |
) |
|
Net (loss) income attributable to common stockholders |
|
$ |
(13,117 |
) |
|
$ |
29,056 |
|
|
$ |
(35,944 |
) |
|
$ |
10,391 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
(Loss) earnings per common share |
|
|
|
|
|
|
|
|
||||||||
|
Basic |
|
$ |
(0.22 |
) |
|
$ |
0.50 |
|
|
$ |
(0.60 |
) |
|
$ |
0.19 |
|
|
Diluted |
|
$ |
(0.22 |
) |
|
$ |
(0.27 |
) |
|
$ |
(0.60 |
) |
|
$ |
0.04 |
|
|
Weighted-average common shares outstanding |
|
|
|
|
|
|
|
|
||||||||
|
Basic |
|
|
60,608,934 |
|
|
|
58,408,441 |
|
|
|
60,130,249 |
|
|
|
31,070,476 |
|
|
Diluted |
|
|
60,608,934 |
|
|
|
68,368,758 |
|
|
|
60,130,249 |
|
|
|
40,487,517 |
|
|
Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited) |
||||||||
|
|
|
Nine Months Ended |
||||||
|
|
|
2024 |
|
2023 |
||||
|
Cash Flows from Operating activities: |
|
|
|
|
||||
|
Net (loss) income |
|
$ |
(35,944 |
) |
|
$ |
13,790 |
|
|
Depreciation and amortization |
|
|
917 |
|
|
|
820 |
|
|
Reserve for inventory |
|
|
3,879 |
|
|
|
796 |
|
|
Change in fair value of preferred stock warrant and contingent shares liability |
|
|
(152 |
) |
|
|
143 |
|
|
Change in fair value of derivative liability |
|
|
— |
|
|
|
(12,247 |
) |
|
Deferred tax benefit |
|
|
— |
|
|
|
(12 |
) |
|
Non-cash interest expense |
|
|
6,705 |
|
|
|
3,237 |
|
|
Stock-based compensation |
|
|
5,994 |
|
|
|
2,137 |
|
|
Allowance for credit losses |
|
|
(1,616 |
) |
|
|
1,968 |
|
|
Loss on debt extinguishment |
|
|
— |
|
|
|
171 |
|
|
Non-cash lease expense |
|
|
820 |
|
|
|
710 |
|
|
Accretion of interest on marketable securities |
|
|
(260 |
) |
|
|
(333 |
) |
|
Loss on disposal of property and equipment |
|
|
— |
|
|
|
16 |
|
|
Changes in operating assets and liabilities: |
|
|
|
|
||||
|
Accounts receivable |
|
|
(350 |
) |
|
|
(6,393 |
) |
|
Inventory |
|
|
10,733 |
|
|
|
(33,318 |
) |
|
Prepaid expenses and other assets |
|
|
1,598 |
|
|
|
1,183 |
|
|
Accounts payable |
|
|
(3,387 |
) |
|
|
(4,115 |
) |
|
Accrued expenses and other liabilities |
|
|
(2,011 |
) |
|
|
1,975 |
|
|
Deferred revenue |
|
|
429 |
|
|
|
(666 |
) |
|
Warranty liability |
|
|
75 |
|
|
|
1,456 |
|
|
Operating lease liabilities |
|
|
(837 |
) |
|
|
(697 |
) |
|
Net cash used in operating activities |
|
$ |
(13,407 |
) |
|
$ |
(29,379 |
) |
|
Investing activities: |
|
|
|
|
||||
|
Purchase of marketable securities |
|
|
(6,756 |
) |
|
|
(53,483 |
) |
|
Acquisition of fSight |
|
|
— |
|
|
|
(16 |
) |
|
Purchase of intangible assets |
|
|
— |
|
|
|
(450 |
) |
|
Purchase of property and equipment |
|
|
(757 |
) |
|
|
(1,855 |
) |
|
Sales and maturities of marketable securities |
|
|
25,818 |
|
|
|
14,885 |
|
|
Net cash provided by (used in) investing activities |
|
$ |
18,305 |
|
|
$ |
(40,919 |
) |
|
Financing activities: |
|
|
|
|
||||
|
Proceeds from Convertible Promissory Note |
|
|
— |
|
|
|
50,000 |
|
|
Repayment of from Series 2022-1 Notes |
|
|
— |
|
|
|
(20,833 |
) |
|
Payment of financing costs |
|
|
— |
|
|
|
(358 |
) |
|
Proceeds from Business Combination |
|
|
— |
|
|
|
2,238 |
|
|
Proceeds from exercise of stock options |
|
|
272 |
|
|
|
212 |
|
|
Payment of tax withholdings on stock options |
|
|
(114 |
) |
|
|
(91 |
) |
|
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 |
|
$ |
158 |
|
|
$ |
34,821 |
|
|
Net increase (decrease) in cash, cash equivalents and restricted cash |
|
|
5,056 |
|
|
|
(35,477 |
) |
|
Cash, cash equivalents and restricted cash at beginning of period |
|
|
4,405 |
|
|
|
37,717 |
|
|
Cash, cash equivalents and restricted cash at end of period |
|
$ |
9,461 |
|
|
$ |
2,240 |
|
|
Non-GAAP Financial Measures (in thousands) (unaudited) Reconciliation of Net Loss (GAAP) to Adjusted EBITDA (Non-GAAP) |
||||||||||||||||
|
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
Net (loss) income
|
|
$ |
(13,117 |
) |
|
$ |
29,056 |
|
|
$ |
(35,944 |
) |
|
$ |
13,790 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
||||||||
|
Total other expenses (income), net |
|
|
2,700 |
|
|
|
(51,236 |
) |
|
|
8,020 |
|
|
|
(8,552 |
) |
|
Income tax expense |
|
|
— |
|
|
|
10,962 |
|
|
|
16 |
|
|
|
29 |
|
|
Depreciation and amortization |
|
|
305 |
|
|
|
284 |
|
|
|
917 |
|
|
|
820 |
|
|
Stock-based compensation |
|
|
1,786 |
|
|
|
1,274 |
|
|
|
5,994 |
|
|
|
2,137 |
|
|
M&A transaction expenses |
|
|
— |
|
|
|
152 |
|
|
|
— |
|
|
|
4,399 |
|
|
Adjusted EBITDA
|
|
$ |
(8,326 |
) |
|
$ |
(9,508 |
) |
|
$ |
(20,997 |
) |
|
$ |
12,623 |
|
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/20241106002035/en/
Investor Relations Contacts
(949) 574-3860
[email protected]
Source: Tigo