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Energy Vault(NRGV) - 2024 Q3 - Quarterly Report
NRGVEnergy Vault(NRGV)2024-11-12 22:25
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Financial Performance - Revenue for Q3 2024 decreased by 171.0millionto171.0 million to 1.2 million compared to 172.2millionforQ32023,andfortheninemonthsendedSeptember30,2024,itdecreasedby172.2 million for Q3 2023, and for the nine months ended September 30, 2024, it decreased by 210.6 million to 12.7millioncomparedto12.7 million compared to 223.3 million for the same period in 2023[121]. - Cost of revenue for Q3 2024 decreased by 164.3millionto164.3 million to 0.7 million compared to 165.1millionforQ32023,andfortheninemonthsendedSeptember30,2024,itdecreasedby165.1 million for Q3 2023, and for the nine months ended September 30, 2024, it decreased by 200.7 million to 9.1millioncomparedto9.1 million compared to 209.8 million for the same period in 2023[124]. - Gross profit for Q3 2024 was 483,000,adecreaseof483,000, a decrease of 6.7 million compared to 7.1millionforQ32023,andfortheninemonthsendedSeptember30,2024,grossprofitwas7.1 million for Q3 2023, and for the nine months ended September 30, 2024, gross profit was 3.6 million, down 9.9millionfrom9.9 million from 13.5 million for the same period in 2023[120]. - Loss from operations for Q3 2024 was (27.1)million,anincreaseof(27.1) million, an increase of 5.8 million compared to (21.2)millionforQ32023,andfortheninemonthsendedSeptember30,2024,thelosswas(21.2) million for Q3 2023, and for the nine months ended September 30, 2024, the loss was (79.6) million, a decrease of 2.9millionfrom2.9 million from (82.5) million for the same period in 2023[120]. - Revenue from the sale of energy storage products for Q3 2024 was 811,000,downfrom811,000, down from 172.1 million in Q3 2023, and for the nine months ended September 30, 2024, it was 11.5millioncomparedto11.5 million compared to 222.9 million for the same period in 2023[122]. - The net loss for the nine months ended September 30, 2024, was 74.0million,comparedtoanetlossof74.0 million, compared to a net loss of 76.3 million for the same period in 2023[142]. Cost Management - The company anticipates annual cost savings of 6.0millionto6.0 million to 8.0 million from recently implemented cost-saving measures[102]. - Operating expenses for Q3 2024 totaled 27.6million,adecreaseof27.6 million, a decrease of 826,000 compared to 28.4millionforQ32023,whilefortheninemonthsendedSeptember30,2024,totaloperatingexpenseswere28.4 million for Q3 2023, while for the nine months ended September 30, 2024, total operating expenses were 83.2 million, down 12.9millionfrom12.9 million from 96.1 million for the same period in 2023[120]. - Research and development expenses decreased by 2.5millionto2.5 million to 5.7 million for the three months ended September 30, 2024, compared to 8.2millionforthesameperiodin2023,primarilyduetocostcontrolsandheadcountreduction[127].−Generalandadministrativeexpensesincreasedby8.2 million for the same period in 2023, primarily due to cost controls and headcount reduction[127]. - General and administrative expenses increased by 1.5 million to 17.3millionforthethreemonthsendedSeptember30,2024,comparedto17.3 million for the three months ended September 30, 2024, compared to 15.8 million for the same period in 2023, mainly due to a 1.9millionincreaseintheprovisionforcreditlosses[128].−Stock−basedcompensationexpensefortheninemonthsendedSeptember30,2024,was1.9 million increase in the provision for credit losses[128]. - Stock-based compensation expense for the nine months ended September 30, 2024, was 29.4 million, down from 34.5millioninthesameperiodof2023[151].RevenueStreamsandFutureOutlook−EnergyVault′snewbookingsforthethreemonthsendedSeptember30,2024,amountedto34.5 million in the same period of 2023[151]. Revenue Streams and Future Outlook - Energy Vault's new bookings for the three months ended September 30, 2024, amounted to 137.4 million, compared to 170.5millionforthesameperiodin2023[104].−Thedevelopedpipelinereached170.5 million for the same period in 2023[104]. - The developed pipeline reached 2.73 billion, with a total capacity of 10.7 GWh as of September 30, 2024[104]. - The backlog as of September 30, 2024, was 264.4million,downfrom264.4 million, down from 314.9 million in the same period of 2023[104]. - The company expects future revenue of 90.7millionfromrecentequipmentsupplyandofftakeagreements,whichincludebothfixedandvariablepricingcomponents[102].−TheCompanyexpectstogeneratefuturerevenuefromthesaleofGESSsandthroughtollingarrangementsrelatedtoenergystoragesystemsitintendstoownandoperate[109].MarketConditionsandRisks−Theenergystoragemarketisprojectedtogrowata2790.7 million from recent equipment supply and offtake agreements, which include both fixed and variable pricing components[102]. - The Company expects to generate future revenue from the sale of GESSs and through tolling arrangements related to energy storage systems it intends to own and operate[109]. Market Conditions and Risks - The energy storage market is projected to grow at a 27% compound annual growth rate through 2030, with annual additions reaching 110 GW/372 GWh[97]. - Inflationary pressures and supply chain disruptions are identified as potential risks that could impact revenue and profit generation[98][100]. - The Inflation Reduction Act is expected to enhance the economics of energy storage solutions, potentially accelerating market adoption[101]. - The company faces foreign currency risk as a portion of its revenue and operating expenses are incurred in currencies other than the U.S. dollar, which may adversely affect its results of operations[159]. - Inflation could impact the company's operations due to higher material, labor, and construction costs, potentially affecting its financial condition and results of operations[160]. - Credit risk is present as the company relies on its customers for revenue, and the loss of significant customers could negatively impact its cash flows and results[161]. - The company is exposed to commodity price risk from fluctuating market prices of raw materials like cement, steel, aluminum, and lithium, which could reduce operating margins if costs increase[163]. Cash Flow and Financing - Total cash, cash equivalents, and restricted cash decreased to 77.7 million as of September 30, 2024, from 145.6millionasofDecember31,2023[136].−NetcashusedinoperatingactivitiesfortheninemonthsendedSeptember30,2024,was145.6 million as of December 31, 2023[136]. - Net cash used in operating activities for the nine months ended September 30, 2024, was (21.0) million, a significant improvement from (116.1)millioninthesameperiodof2023[141].−Cashusedininvestingactivitiesincreasedto(116.1) million in the same period of 2023[141]. - Cash used in investing activities increased to 48.1 million in the nine months ended September 30, 2024, from 33.2millionin2023,primarilyduetopropertyandequipmentpurchases[144].−Cashprovidedbyfinancingactivitieswas33.2 million in 2023, primarily due to property and equipment purchases[144]. - Cash provided by financing activities was 0.6 million for the nine months ended September 30, 2024, a turnaround from cash used of 4.7millioninthesameperiodof2023[145].−Thecompanyhasenteredintoanopenmarketsalesagreementtosellsharesofcommonstockwithanaggregateofferingpriceofupto4.7 million in the same period of 2023[145]. - The company has entered into an open market sales agreement to sell shares of common stock with an aggregate offering price of up to 50.0 million[135]. Accounting and Compliance - The company is classified as an "emerging growth company" and will continue to take advantage of the extended transition period for new financial accounting standards until the end of 2026[156]. - The company has not made any changes to its critical accounting policies and estimates compared to those disclosed in the 2023 Annual Report[155]. - The company has not yet recognized any revenue related to certain licensing agreements where collectability is uncertain[137].