Wallbox N.V.(WBX)2025-02-26 15:22Financial Data and Key Metrics Changes - Full year revenue totaled €163.9 million, reflecting a 14% growth compared to last year, driven by the full year contribution of ABL and solid growth in North America, which was up more than 40% year-over-year [9][10] - Q4 revenue was €37.4 million, down 14% year-over-year but improved by 8% compared to the previous quarter, primarily due to slower DC fast charger sales, which were down 34% quarter-over-quarter [15][39] - Adjusted EBITDA improved by 21% year-over-year, from negative €74.2 million to negative €58.8 million, with Q4 adjusted EBITDA at negative €12.3 million, showing a 43% improvement compared to the previous quarter [10][20][43] Business Line Data and Key Metrics Changes - AC sales of €26.9 million represented approximately 72% of global consolidated revenue, with a 14% growth quarter-over-quarter, mainly due to momentum in North America and increased demand in Europe for the Pulsar Family [25][39] - DC sales were €2.9 million, representing 8% of sales in Q4, significantly lower than expected due to inventory build-up with CPO customers [28][39] - Software, services, and others contributed €7.7 million for Q4, representing 20% of total revenue and an 18% growth compared to the previous quarter [31] Market Data and Key Metrics Changes - Europe contributed €25.7 million of consolidated revenue, or 69% of total revenue, remaining the largest region despite a soft market [22] - North America contributed €10.5 million, or 28% of total revenue, representing a 64% year-over-year growth compared to Q4 2023, while the EV market in the region grew 12% [23] - APAC contributed €900,000 or 2%, and LATAM was approximately €400,000 or 1% [24] Company Strategy and Development Direction - The company is focused on right-sizing the organization and optimizing costs to achieve profitability, with a new business unit structure aimed at efficiently servicing target segments [10][12][38] - Wallbox aims to maintain its market share and capitalize on the anticipated growth in EV sales, with a belief that the transition to EVs is inevitable [13][34] - The company is actively working on gross margin expansion opportunities and has reduced headcount by 35% compared to the same period last year [42][45] Management's Comments on Operating Environment and Future Outlook - Management acknowledged 2024 as a challenging year for the EV market, with only 6% growth year-over-year in the main regions [8][32] - Despite the current volatility, management remains optimistic about long-term growth prospects, expecting high double-digit growth in the EV market for 2025 [34][37] - The company is focused on generating profitable growth and is getting closer to this objective, with guidance for Q1 2025 revenue in the €34 million to €37 million range and a negative adjusted EBITDA between €8 million and €11 million [53] Other Important Information - The company raised an additional 10 million private placement announced in February 2025 [12] - The company ended the quarter with approximately €46 million in cash and cash equivalents, while loans and borrowings were approximately €198 million [44][45] - Inventory was reduced to €71.1 million, a 23% decrease compared to the same period last year, with expectations for continued optimization [48] Q&A Session Summary Question: How should the product mix evolve in the U.S. market given potential regulatory changes? - Management indicated that the mix should improve towards fast charging, with the launch of the Supernova UL and certifications expected to increase the addressable market for fast charging [57][59] Question: What is the path to becoming EBITDA positive in the next 12 to 18 months? - Management emphasized maintaining or increasing market share and highlighted that reaching revenues of around €40 million to €45 million should allow the company to break even [62][68] Question: What is the company's exposure to import tariffs and how is it managing this risk? - Management noted that a significant part of revenue comes from Europe, reducing exposure, and mentioned plans to localize more manufacturing in North America if necessary [73][75] Question: How does the recent €10 million capital raise impact funding runway and future capital needs? - Management expressed confidence in managing cash flow and minimizing the need for additional capital, focusing on inventory reduction and working capital optimization [81][84]