Release Date: August 13, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Nuvve Holding Corp (NVVE, Financial) is seeing an increase in orders as EPA funding rounds 2 and 3 move forward.
- The company had a successful groundbreaking event for its Fresno project, showcasing the value of its platform.
- Nuvve Holding Corp (NVVE) is expanding its pipeline of projects in Taiwan, with a total deployment of 90-plus charging stations.
- The launch of a joint SPV with WISE-EV LLC in Nevada is expected to accelerate technology deployment and provide non-dilutive cash.
- Operating costs have been reduced significantly, with a decrease from $8.5 million in Q2 2023 to $6 million in Q2 2024.
Negative Points
- Total revenues for Q2 2024 were $802,000, a significant decrease from $2.12 million in Q2 2023.
- Year-to-date revenues through June 30, 2024, were $1.6 million, down from $4 million for the prior year period.
- The company no longer anticipates achieving its 2024 revenue target of $15 million to $20 million due to project delays and EPA funding timing.
- Net loss attributable to Nuvve common stockholders was $3.9 million in Q2 2024, although this is an improvement from a net loss of $8 million in Q2 2023.
- Cash on hand as of June 30, 2024, was approximately $1.4 million, excluding $0.5 million in restricted cash, indicating tight cash management.
Q & A Highlights
Q: Can you provide an update on the EPA funding and its impact on your revenue?
A: Gregory Poilasne, CEO: The EPA funding rounds 2 and 3 are finally moving forward after significant delays. This has caused some recognized revenue expected in 2024 to slide into 2025. However, we are now seeing orders picking up and expect significant increases in the next three quarters.
Q: What are the financial highlights for the second quarter of 2024?
A: David Robson, CFO: We generated total revenues of $802,000 compared to $2.12 million in Q2 2023. The decrease was primarily driven by the reduction in charger hardware sales and the timing of EPA funding awards. Margins on products, services, and grant revenues were 24.9% for Q2 2024 compared to 8% for the same period last year.
Q: Can you elaborate on the new partnership with WISE-EV LLC?
A: Gregory Poilasne, CEO: We are excited to announce the launch of our joint SPV with WISE-EV LLC, targeting the deployment of public infrastructure in Nevada. This SPV will be financed through debt for a total project cost of about $1.5 million and will help accelerate Nuvve technology deployment.
Q: What is the status of your project in Fresno and other international projects?
A: Gregory Poilasne, CEO: The Fresno project had a successful groundbreaking event in July. We are also finalizing our contract with e-Formula for our project in collaboration with Taiwan Power Corporation, which will include the deployment of 90-plus charging stations.
Q: How are you managing your operating costs and cash flow?
A: David Robson, CFO: Operating costs, excluding cost of sales, were $6 million for Q2 2024, down from $8.5 million in Q2 2023. We have continued to drive efficiencies, resulting in lower overhead costs. We had approximately $1.4 million in cash as of June 30, 2024, and received $1 million in proceeds from a short-term loan in August.
Q: What are your expectations for megawatts under management and future grid service revenues?
A: David Robson, CFO: Megawatts under management increased 1.7% over Q1 2024 to 27.1 megawatts. We expect further growth in our megawatts under management as we continue to commission our backlog of customer orders and win new business.
Q: How has your backlog changed, and what does it indicate for future revenue?
A: David Robson, CFO: Our hardware and service backlog decreased to $18.2 million as of June 30, 2024, from $19 million at the end of Q1 2024. The decrease is related to the conversion of backlog into sales and adjustments to contract amounts with two customers.
Q: What are your plans for strategic investments and future growth?
A: Gregory Poilasne, CEO: We have engaged Cappello Global to work on our strategic investment process. The SPV structure we have adopted makes our future revenue more forecastable and provides cash upfront. We hope to share more updates on our strategy in the coming months.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
