Q2 2024 Fluence Corporation Ltd Earnings Call Transcript
Key Points
- Fluence Corp Ltd (EMFGF) reported a 14% increase in SPS and recurring revenue in its core business units over the first half of 2023.
- Gross margins improved, remaining above 30% for the year, representing an 8.3% increase over the first half of 2023.
- The company achieved approximately 20% savings in SG&A and R&D expenses in the first half of 2024 compared to the same period in 2023.
- Fluence Corp Ltd (EMFGF) has a current backlog of orders at $96 million, an increase of over 83% compared to the first half of 2023.
- The company successfully repaid its loan facility with Upwell and secured a more favorable revolving credit facility, providing financial flexibility and interest savings.
- First half results were lower than budget and expectations due to project delays, particularly the Ivory Coast Addendum project.
- Revenue in the first half of 2024 was $20.1 million, which was $10.5 million lower than the first half of 2023.
- The company experienced an EBITDA loss of $1.6 million in Q2 2024 and $3.6 million in the first half due to delays and market weaknesses.
- Fluence Corp Ltd (EMFGF) had to revise its 2024 revenue guidance to $70 million to $75 million, with EBITDA expected to be breakeven.
- Cash flow was negative $6.3 million in Q2, underperforming compared to forecasts due to project and collection delays.
Thank you very much. Good day, everyone. Thanks for taking the time to tune in to our 2024 first half or Q2 report. With me today are Doug Brown, our Chairman of the Board; and Ben Fash, our CFO. And as you can see from the report that we issued this morning, the first half results were lower than our budget and expectations. This was mainly driven by delays in some projects with the most significant effect coming from bureaucratic delays in the Ivory Coast Addendum project and a bit of some weakness in China showing up.
We had expected to get nearly $10 million more revenue in the first half from the Ivory Coast project, as it was scheduled to start in January -- start construction in January. At the time, we were waiting for the financing to be finally signed and completed. But for some reason, that financing took 6 months to complete mainly due to government and bureaucratic delays.
In particular, it took 1.5 months to get a presidential signature on it. So while the project is still proceeding and
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