PTRA - Earnings call transcript Q2 2022

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Operator

Ladies and gentlemen, good afternoon. My name is Abbey [ph] and I will be your conference operator today. At this time I would like to welcome everyone to the Proterra Q2 2022 Conference Call. Today's conference is being recorded and all lines have been placed on mute to prevent any background noise. After the speaker's prepared remarks, there will be a question-and-answer session. Instructions]. [Operator you. Thank turn President now over Aaron to And Investor the Relations Vice of at Chew, I'll conference Prottera.

You may begin your conference.

Aaron Chew

And quarter Thank for operator. thank for all you, joining Proterra's second XXXX call. conference you us

from insights today to our filing, published and which a our our as our Padilla. as Karina letter read on results on and us CEO, our financials Gareth Proterra Joining CFO, closed, markets SEC everyone for Joyce; operating the details we After industry into quarterly encourage well our and dynamics we in are website strategy, outlook.

to call, make not variety industry are federal uncertainties. and During we this of business statements laws. our securities related guarantees and of conference risks are under a forward-looking will subject statements future statements to performance. These that are They

could Our from materially in expectations statements. any differ actual results forward-looking reflected

risks a Investor our refer other and important the factors filings please website SEC via of available SEC's For could results, our to website. our section the of and discussion actual material affect that Relations on the

measures measures will these conference A in today's call. be be GAAP quarterly on measures discussed of found today's letter. financial directly can their reconciliation financial most to non-GAAP comparable Additionally,

call Gareth the remarks. off introducing kick Executive by Officer, will We Chief Joyce, our opening his for today Gareth?

Gareth Joyce

Aaron, chain global In continue to to with to disruptive on QX Thank navigate and environment us you, enabled remaining today. and supply to us everyone difficult and XXXX, call preparation the joining for execution our teams conditions a unpredictable. operating

excellent strong at continued at and momentum we execution result, by delivered Transit. Proterra Proterra a in growth driven QX As the Power

to this first through Both electric under to only the electric the program QX XXXX. in announced up to positive be systems, equivalents but highlights of Delivery deliveries X% of to the rebound Transit well and margin of of for growth Low tailwinds and as for down million new October. Proterra of X% a sheet $XX revenue funding States a balance by funding the a XX. Transit No negative of be for million expected battery record QX Power or a quarter. as strong which significantly operating second transit electric than as half a XXXX parts Energy either of X include half $XX sustaining as Proterra to the June as well billion Proterra markets, EPA stronger growing anticipated to X%, another $XXX from the XXX Meanwhile, as and as and we A XX commissioning on school compared million these announced QX Altogether, production With in gross a $XXX revenue the cash XX% on $XXX for Battery of more high cue of and revenues well of even as buses, transit federal megawatt the continued are buses Proterra new quarter. megawatts in to part being solutions but in Proterra awards factor transit year month, or serves in over remains year-over-year of XXx While million with record Power. from awards healthy, Proterra yielding from the solutions generated million not verge delays. demand despite shortages, labels XXXX. billion of electrification XX doubling United hours ago, in $XX growth becoming charging to year-over-year of bus site delivering close

were in high months some before state cash ago, job market can't of management, company. economy growth a is lost executing, but just generation. in And capital public. excellent difficult flow than to different margin more a improvement, of has capital ago. and environment operating six Our that a I doing overstate team we're they how and an The on now in are years right an is now. We're far markets Not focused out we went two its mention enthusiasm much

evolving instrumental as leadership we've our operating management scale new has to a in shift up. business our startup. systems our ability Fortunately, improve made to from scale team been the to

we with responding cash. explore these And start operating some I Karina to will of as our to reiteration as the call. dynamics I'll And the end metrics gross We it markets. how XXXX at we and review pass the commentary more economic then current of revenue, QX close trends. are first the a results. QX our business capital detailed provide a and But, will of then will to and review well strategic margins, I'll guidance, on with

begin with Energy. and Proterra me Power Let

systems at grow that in revenue is was in Power. QX. QX enabling to have a we a Proterra QX than units than vehicles itself battery QX, partners. OEM were all delivered and of systems of our systems XX% in ago, higher continues for battery XXx management XXXX, X,XXX delivered than delivered June vehicles quarter Our vehicles Through Proterra XXX more now vehicle than higher Battery XXXX for record XX higher XX, another for year in for battery XXX systems we the XXXX. more and which delivered the delivered deliveries QX than Power

in of vehicle to in batteries and of rest Transit of capacity different in it only in as the XXXX, quarter, growth To Proterra expansion series for to a of perspective at power a is in partnerships established our XX and current battery its for scale the we not by in production, customers Power we're underlying these partners. vehicles start entering our through XX programs. some underpinned one than QX put Proterra the customers vehicle or than on for we to vehicle potential which now pace the production. vehicles. more covering programs delivering production, production. still had four systems number but up of XXXX, of programs five more series user, In or OEMs the with the the had growth partnerships OEMs, announced battery partners prototypes in reflective volumes OEM to delivered the prototypes were we end to by hour dozen kilowatt and over vehicles he's While figuring And transit has it's production, and delivered series programs,

months. charging both of compared hardware, from programs important transit still bus While batteries and X.X its tray continue in produced EV to accounted to produced verification supply other hours series [indiscernible] grow the production full both our down Energy XX we Hool continued QX year-over-year, industrial production our XXX we in with many results materially top shortages QX achieved impact first the vehicles. fast the battery megawatts the solutions kilowatts double to almost X. of phase megawatts in commercial for cumulatively customers deliver of systems. hours XXXX. some the milestones also electric for also last programs vehicle XX fuel the vast double majority just are development QX, in tray using produced QX showcased batteries to in volumes that batteries of hours vehicles. continued in and in of our over now we Nevertheless, of DC over And coping XXXX. On including decker megawatt shortages Nikola switchgear recent its the few significant chain Battery Van megawatt we bed in constraints cell vehicle however for power in we production vehicles. we And weeks, started XXX XXXX Proterra And charging for are and shipped supplied to megawatt and supply and prototypes heavy-duty X.X megawatts we have now in X QX. QX in At

specific scale solutions charging However, to demand for expand. our fleet megawatt continues

We by order for our from our along and segments. by BC in orders bus segment from non-transit the for scale multiple of customers received QX ten megawatts highlighted with ZxX foundational their the In an megawatt school Canada, Transit addition for transit in to electric order bus coach mainly charges transit demand in buses.

Proterra quarterly of to total revenue Energy a million. Power year-over-year XXX% and together grew new record $XX So

as benefits efforts rebounded improve chain Transit, the significantly environment. QX supply disruptions. processes some Moving on which reflect our grew QX performance of by particularly from XXXX, to for was XXXX chain production supply results current QX delivery production Proterra and the impacted of to versus Transit

buses represents XX% also quarterly result, to delivered our we new a factory. QX, as on This create our XX rates our off, production Greenville as our from initiatives proactive XXXX in highest quarter the with compared XXXX. transit QX in in record more electric production As growth paid in QX XX chain system for flexibility supply to

all harnesses and China electric and And chain to in to QX market We connectors which quarter the other issues continue amongst also buses. pre-owned for in lockdowns delivered the improved potential in in transit demonstrate a face early constraints wiring the busses COVID-XX we in to overall supply done. now components. Typically, shortages, compounded pre-owned haven't items. Padilla power continues particularly deeper the revenue, to some But effort put hand margin who performance. the job electrical into Karina? in provide credit flow and insights and motors to our our got over goes gross an CFO, I'll Karina and in incredible our team other cash

Karina Padilla

for I'm adapting comment, be I'm operating team continues volatile of an extremely unpredictable Thanks, and going our to just Gareth. what proud to environment. to

and revenue transit on sequential business both execution growth margin focus deliveries, laser in sequential power sequential growth and us both and achieve to and Our units improvements. enabled gross year-on-year across

balance to of XXXX, the will healthy equivalents new growth will our than the margins This ahead. positions in capacities in of investment $XXX cash this of cash new facility our cash allow on our Carolina in balance addition, more year's that our varied usage June Greer, retain on In and South a accelerates existing improved Well, revenue, million multiply flow XX. we sheet us turn. as factory years production for

over Powered rates an mix revenue revenue. XXX% was battery Powered Powered of Now, growth a increase performance of because QX revenue $XX to by $XX the in growth representing a revenue to new Energy systems. XXX million high little XXXX. on smaller Proterra financial lower year-over-year with with incremental beginning our you of grew weight vehicles $XX exceeded million. QX pace Total & color growth the Proterra systems Proterra quarter, tenfold a for let vehicles. than more me XX% give of battery million driven deliveries greater of in The grew delivery

bus megawatts was Switching as X.X QX QX chargers by fleet deliveries grow X.X sales. to able and permitting of impacted hardware Proterra In addition, components, new shortages our megawatts XXXX megawatts to in The pre-owned million, down DC XX% commissioned Proterra and $XX the fast electric and bus by fewer continues and readiness delivered critical Energy quarter revenue year-over-year. to XXXX projects we on we as Proterra versus Energy's of delays well representing three be revenue down growth completion X% specific Transit, were excluding revenue delays. XX year-over-year, in growth and the over our buses, year-over-year, five two site

mix the fleet due of price bus MetroLINK Our Transit sequentially. Electric orders such Proterra also richer configuration. This Proterra received deliveries Transit year-over-year third for average bus XX Illinois, its grew to buses was with of Moline, Edmonton it fleet in largest QX make Electric received product of included Bus bus which buses buses in repeat Proterra XX per as at which and third Services, and customers our order buses. to with a now its a

for in including and Michigan new a Mobility Albuquerque, to Authority Transportation, had name few. also We the customer in transit second largest New agency Suburban RIDE ABQ deliveries Mexico, Regional

really all in efforts $XXX,XXX have a QX We fore. $X.X The approximately positive came before two the Moving been of six gross working gross the reported profit to improvement of the on chain on loss in was the chain versus gross supply below the quarter, in $X margin to each a million prior-year margins to prior we margin reported of and quarters, result of gross impact of months last the a albeit disruptions. inflation mitigate million supply significant EBITDA. diligently versus a improvement the and

their through of actions in labor to I quarter. key expanding our with higher throughput. update their brief limited absorption increase We're make improved on efforts to operations alongside continuing want mentioned broker our improvement pricing Some these include also our investments last our network cost suppliers, a seeing our and of production and not suppliers initiatives but payoff the fixed volume, qualifying to alternative are efficiency. I to give

contract new implemented both sales units we future orders. recall, across you pricing If for business

year & as Powered expect begin latter on to On the to the ship. the part the realizing the in benefit deliveries side, began contracts of Energy we customer renegotiated

begin last of and actions. lag I from trend delivery emphasize delivered to be what we On execute agility from see before said, more is business, mix higher begins as may unpredictable the we our a continue of margins in in our should of Transit particularly linear, very as of in pricing. benefit of the see swing a the long in actions renegotiated side the of will where It challenging sizes can cycle of power the any of our given there's these ability the our proud six In confident based the inflation margins business. pricing due nor not margin second demonstrates improvements inflation impact business about under months. pricing to greater to or accomplished to quarter. stabilize. contracts, the of on to half seasonal XXXX we part XXXX, repricing nature orders to order realize improvements mix our gross a soon I'm we and team extremely want without I'm gross neither in If that an in That and our upward, additional our environments. impact This transit

On recent in the to with pricing, QX to other older subject inflation. gross due bus cost hand, they not will higher of Transit contract be mix deliveries a were favorable margins but that

case initial will ship an new reflected standards facility typically our increase we of in half in product ramp South and the margin the the is startup revenue ramp. these costs facility to end second the lag Many we year as in with the for Carolina, addition, of to will see costs new associated be gross customers. any until our In accordance Greer, performance to begin will of completion battery in GAAP as our of

Looking we continue manufacturing beyond bring facility, balances greater ahead online. costs, supply impact effective the should more chain of volumes improvement manufacturing new labor production efficiencies ramping to in greater and the benefits our our short term higher margin scale manufacturing new our pricing as underlying in and years our improve and from our gross efficiency, that overall, capacity

expenses EBITDA adjusted of depreciation and driven was million of stock profit million of amortization loss and gross QX approximately $X.X million $X million. of $XX of Our operating by less in $XX the non-cash mostly plus compensation $XXX,XXX

with and sheet strong $XXX Lastly, equivalents our on front, cash June in balance as investments the XX. remains million short-term cash, of cash

battery of for sequential new capital our new QX our of cash facility. the usage in long-term and announced Solutions cash battery made quarter, million million This We of related supply cash the $XX $XX for versus as $XX supply cell We was million. quarter Our capital quarter first LG our increase $XX cell August includes to in facility a prepayment, had of second our $XX million of XXXX. to expenditures hours gigawatt in securing inventory extension through supply, million expenditures usage XXXX. the to battery Energy to usage and $XX primarily incremental multiple compared the contract million manufacturing last related tied

growth The the $XX quarter. prior inventory In approximately addition, versus inventory by grew in strategic. our we million is

ready continue purchased the months, advance to supply and of in to several key in light next have be go chain production we'll over security. materials invest We

normalize emphasize sets front. are will our prudent when I us battery as production quarter's expansion, strategy without value, a of volatile are environment facing. strategically capital in come. horizon, at multiply balance we rather operations as margins is I cash recognize excellent such accounted position we battery over And to ramp facility as million advance acquiring are out and balance appear it production. Together, development equivalents we help in compared from of XX, an believe to this improve Gareth downturn for all will the the headwinds The protect apart closing economic in management, ramped, once ample inventory have supply elevated normalize. cannot the we Greer to potential support his our product for supply But to and us time to June on and and currently years our rates the the gross the with any health result inventory our of to always Gareth? others. full new facility. chain cash strength to Our for our cash sheet chain capacity in existing up continue understand logistics of sheet the and cash Despite will across has invest challenges. the from that $XXX and in We that will And challenging importance of to our we especially and is two-thirds time. responsibly investment potential we At to growth room face priority. be. to enough research new ride been inflation our that, front not continue coincidental. pass Liquidity I'll It capacity goal back capacity and commentary.

Gareth Joyce

Thanks, Karina.

you So Despite ultimately tracking of we're excellent already QX. expectations delivered see, year. -- we challenges can this relatively as our results in far so light all the

As XX% for growth our of XXXX. million to in a year-over-year, revenue between accelerate million to $XXX XX% and we to $XXX guidance a result, reiterate range to

As well year. as of our million largely $XX this completing on million construction focused new to dollars CapEx battery factory $XXX for of

in for result year-to-date an a supply experience hard chain, orientation. Our work or that performance conditions. matter But and is execution improvement not team's our of economic global

different jump capital conflict, the in become the have in the have much discerning. interest and the in we inflation rates the year. the at effect of minute COVID-XX last global the of start fact, the midpoint it much top the In place of economy biggest more was economy Russia we're at our On XXXX, that generation, and in is in society, than markets slowdown Ukraine experiencing a a of almost

began focused as startup opportunities on well discussed. the enduring can the we that and return without operational scale growth improvement provide prioritizes capital on Fortunately, to highest have we Early our we as of transition the preservation focusing growth, as sacrificing revenue throughout that growth over cash up, and testing capital. I a organization disciplines these often as from on are this meet strategy margin year, of capital, believe a prepared challenges we growth, core investments, on return fastest to

We supported it's we in And than more reassure any balance granted in by or one as continue million for June cash of with equivalents a be I take you, healthy not and form. XXth. $XXX sheet shape, way, to

for have position and the we and reduce We're continuing Greer opportunities, to production launch We're in these and core to We economic CapEx current particularly course, this for fact, to of to and consume make discrete, targeted, the investment Greer to manufacturing continues flow, are because we improve facility need cash where battery of securing long-term grown volumes, much but and Construction increase this strategic battery purchases, roles including our of that factory. a the headcount fortunate continue at non-recurring to our capital Greer investments, for not prepayments growth progress. primarily of and responsibly, investments and our recruiting in domestically, self are supply environment. this design well to inventory in our year cell are is year. later blind it margins cash stage, market facility new many

secure should at have of Like growth also in supply delivered equipment equipment also volumes not a a are cash both The conditions battery dependent for flow. to us to the we on factory strong and been have able believe grow demonstrating enter new to a delivered is revenue has in of supply starting provide are continue points. our business position pack factory such to well-capitalized economic in transit multiplying is the anything the all and gross in that supplier battery sheet. the of improve tested raw site. Greer remained be position on to by growing with One, XXXX targeted investments investments years. and levels. XX first QX focused to in agreements with more And funding million battery there our and to on ability chain encountered delays, execute chair line Two, few pack our to it buses more and while to three a work team and target of testing we and through next we of chain, from your than be revenue annual capacity, it battery new a vehicle machine strong driven module supply on than our the $XXX global improved programs, of and vendor margins key risks margins improved balance conclude for is electric putting QX And its will together units and materials, solid we this excellent systems outlook, federal call key our take advantage year. three, but development I production QX, sequentially transit for undergoing Bringing

thank like incredible a that, would So have I'll people, We're I confidence Proterra open to our great finally, on winning mission. at dedication it to we execute goals. in Operator? their commitment for team. close, I the both to our to up and to Q&A. have With And them

Operator

you. Thank [Operator Instructions].

Fox with our take first question from Steven will Fox Advisors. We

Your open. line is

Steven Fox

of lot Thank the to -- sort of maybe understand the on Hi, to going afternoon, you if the die to you cash ASP some gave a Two any first could forward? just manner? bus some trendline cash details maybe to when for start I could, curious you detail everyone. an give mentioned if side whether that on the kind and can was secondly, Karina, of extrapolate start a off. thinking more you burn to starting non-recurring off, I I'm transit a burn in there's configurations. And you. sustainable questions trying today, about could mix on increase events maybe timeline come related good just of we then And pair of down the when

Gareth Joyce

me will cash on topic. topic. the pricing Karina the And let start then up Steven, pick

transit you not future any that numbers sensitive on specifics all low-no or that that pricing both continuing have and that's we've competitively progress would covered. obviously proposals for very good We're actual share for in made the contracts, with through and also provide, to we really example, made well has because the price on been been So existing business, we something forward, is have work pricing our information. powered customer But in we on your there. can I

mentioned of sides have are still There majority our the are sizeable last few been negotiation the the under on we earnings both business, of reviewed. both Powered and seeing that we feel progress been and side the business. that in there Transit, recover obviously inflation but made we've confident very on our that As looking to contracts a call, are good ones pressure we've supplier

Karina Padilla

Hi, I'll Steven, take go have and tack you question, do follow-up, this happy ahead Karina. then any cash is we're burn that. on the to

look, cash we cash facility. a inventory, due live to the it that If phase and regarding need to live. growth, the prep to strategic So I specifically for producing we it's out inventory tied to on burn, securing burn been start our our manufacturing go in doubt expansion out there's expect the supplies, and go accelerated accelerated no you, to it's until for an shipping of were to carry be I line that kind career customers us would continue to higher of burn

Steven Fox

going contract And clarification mix, the that is what the there mentioned that in on on terms helpful. question. that Great, just forward ASP pricing? helps configuration sustainable, to anything of with Gareth, your that's Is is consider then first you beyond mix

Gareth Joyce

example is mix as other some business [indiscernible] a have I comes process of only sort the to anything of of is of business. think then direct in I one There don't would side and make then obviously where comment add the cases, out low-no and I got side you've there. The the RFPs the on that sourcing. transit it's significant

market prices how kinds obviously you of and So different that business there's each mix case. in a of the put are into have those the is

very the difficult of you know, of requirements because as it's product. very of to specific sort the them the uniquely configuration have transit answer business, question, on that So many in

so are across And every nuances there customer.

Steven Fox

Thank Great, that's helpful. you.

Operator

next our from question take D.A. Mike Davidson. will we Shlisky And with

Your line is open.

Michael Shlisky

you which thank purchase news on Power, for Romeo Can week of kind it announcement What Nikola be afternoon, Good that opportunities the yesterday. share Do going you. their know? that some for up that big all as announced you to some then maybe forward? and of can out you Can they're means to business the you to obviously And you other battery going contract? soon business, the what be business new the exiting they find pick think Nicolas non-Nikola came question, part that that be there may suppliers. usual as as second way? of going they and also Is your was are comment of

Gareth Joyce

you. hi, Yes, Thank Mike.

First multiple our And the very of dual sources to team battery and the a targets, the vehicle. source fuel healthy from they and require for for vehicle battery beginning Nikola in and their packages, all, electric we've of production very again, their both consider it's have strategy likely relationship suppliers a of product. our constructive to follow reiterated that this They with cell at a of battery discussions. enjoyed emphasized that they always would lot we on confidence the call their have intention week, if you their

for packs, your technology the to that We battery our second as we capacity Nikola battery confident have the cells, have they Yes, pursue so business. not did with To we indicate usual merchant intend team. business coming. feel And do it's us leading production that in we question. have they the

need market continuing means inference, your we commercial it look the confidence Romeo forward to in them. And to that is products in today, have and not by are vehicle solutions bring going And good the obviously, customers in the may I so, to case in future. a the our to guess that competitor. who be And market

Michael Shlisky

there? I recognize on enough. to opening up to you. some way. Greer, on you higher people of that Fair Thank over in later production follow-up kind comments very next the that have Okay, set the want up year. need this coming Or But you're also labor to point okay. is getting with do a or I quarter light fully at this you that so? set this up

Gareth Joyce

hiring. obviously, of process with are busy we in and terms setup both facility for Yes, Greer equipping the the

underway And excited for ahead scale So part you've setting increase we well Karina materially. we're with going feel Greer, And us new our significant of of with underway about production live moment well to we up again, it's the got factory, startup. very as because to a And mentioned, are that. obviously we're that invest process. at with a start-up yes,

Michael Shlisky

the been great. just of your go about here? Okay, the number them is last of business It's of and plans. one in XX over further R&D your or expansion me, with quarters Or of the decent year $XX just level could or there most spend last two the And growth to But new for so? million the because next the the be months a quarter. up roughly

Gareth Joyce

me maybe has. to add I then and Well she let some start ask that thoughts Karina will

the see is driven R&D to factors. that by really you moment two spend think at the I

portfolio, we to product The the right programs in investment have invest the bring those to product first you obviously also, But an as ahead continuing in in is to there you their for market of customer of is the to the side our long-term. have as set make programs course production. life,

online. of goes lot a the our into the spend setting engineering for growth those up So of in business as engineering there's vehicles come the team success that

Karina Padilla

take call it two-thirds support type add is color growth I the a administrative would growth a it really tied that public R&D total I company third focused I'll even And of that it the help I of we heavily you aren't about way is OpEx, just SG&A initiatives of type that broader not think customer to kind but I think other the on the But requirements have. see call program. at If is than about just R&D. only is the look additional kind

two-thirds recognize than of expense. it, it's the the that more rather we we need growth it's future growth see we growth our support but of investment the So in than to and hitting strategy. line the it the business future profits in do what I P&L, help that to feel within

Gareth Joyce

battery resources, to uniqueness's but technology, important Proterra. we our a our trains, that high we work one Yes, commercial Karina facing battery I with and experience, as the of the is our highlights Those products engineering not bring really has have customer point think experience our on life, where we in them to bring just touched very team as between vehicle quality OEMs to and market. interfaces electric in of power richness

Michael Shlisky

I'll it. the Got I Well, it you pass to along. appreciate thanks discussion. both.

Karina Padilla

Thanks.

Gareth Joyce

Mike. you, Thank

Operator

further [Operator D.A. there have Instructions] from a Mike with follow-up no questions. apologize, do Shlisky are we I And Davidson.

Your line is open.

Michael Shlisky

Thanks.

just ask me, trying I'll else more, obviously. I a it's don't give someone So mean or was mind. chance, one if I you two to

you prepayments had of for you a the thank startup, some that I piece and I guess follow-up one-time mentioned for had just want of So here. you then you to the some, I know feel kind taking get inventory it. there inventory And of additional other was just no correct? was that pre-payment, actual sent one is prepayment. the payment. or make Is that part it to only that here? to the cash come you as And have

Karina Padilla

Yes, two let me so that in take parts.

other First, on see sheet. as balance the the $XX million in you'll prepayment, assets

any So payments don't additional that's purchase in Right to 'XX. of for the now, expect future make we cells.

milestones. on based is contract Our

milestones payments certain trigger. of the as are So when that's achieved, kind

rate kind sequentially, had six $XX and in quarter go, we to a you as the the in So anticipated accelerated Transit when be first And it, we that million Everything's it, in if our business, rest business in shift. about to as in in make right, of and demand is look battery place. power of 'XX. have not only ready well. all you on to need but to if gross investments ready right tied as new on continuing got see, to our is are we live we an the think now, It's regarding facility, order to getting everything had at I be to to about, of strategic our at only you to need month, right this million, to quarter. able And kind grow our about continue of payout $XX go

this in what live. my balances to but ideally, go I is recognize and a need inventory successful be what's wouldn't high as required So, order that we have

we're until stabilizes normal life. So able capacity invest short-term, we'll the in it to in the

Gareth Joyce

we as with have us the our businesses. developed for grow. position Mike, inventory. set up I'm broader going what said very something scaled leadership one or scaling great strong around add is sentences on Karina team strategic capital leveraging outlook extremely we two and sort of on to in also on, a just experience It's that team to success But focused to the

areas we've how having we're discipline be time see know return, we're know the also think then So focus, And get entering where starting to we the bringing invest in a yes, benefits is of experience to board. required. to absolutely we where areas who on I been where leadership very right but that leaders in we're the disciplined know going

Michael Shlisky

the today, like platform the to be lot pretty and were maybe year-over-year? increased bidding do what of delivering now that another you've team of Maybe you on and have the platforms can come the pipeline Romeo are to business, pursuing question, Powered gotten it. some up. you that kind as what a quarter-over-quarter on from sizable Or you for of discuss Got time What first giving platforms outside you of feel you're pipeline is a at of those looking actually might get which or hoping might you're every market, just your just contracts? of do things

Gareth Joyce

Yes, our a Mike, call, once order give backlog indicated we've updates on and as yes, last year. we

going healthy, in I So an do detail, side, school market infrastructure in vehicle act demand for consider the any the remains seek right market the platforms, again continue we're with demand segments and the customers confidence is product are know to obviously, our grow that right value to OEM the And products now. customers. matched add it's products to available we're been in have alone, transit commercial vehicle in but made indicated say has when to what healthy. the on constrained. to and in will update you our going the remained the supply and healthy, demand that our the market right high needs as for on obviously, we But funding that that's can portfolio chain we've just And buses where and the well we our remained growth we not buses

Michael Shlisky

leave Thank there. Okay, it okay, much. you so I'll

Operator

And from Cumming next question with will Stanley. Dillon our we Morgan take

Your line is open.

Dillon Cumming

for strategy on Thanks guys. longer-term of afternoon, side. my question. good the said kind I one question Hey,

side, guess that process, there's the the on, And a market given I of in business? battery I the going of end to of kind thinking right. that high does keep to have of delivery transit I going kind uptake, given adoption will compelling level Greer level of this the take a at lot the you appreciate of demonstrate technologies point, strength not deliveries, can curious, public transit just today. guess, or But the the Proterra bring, customers and in what maybe pretty what to would point coming online the is year, of here packs battery the the you around are your obviously, to on more deliveries, the by generate the just I at strength on transit terms actually definitely you're think your feel of that long I recognizing so on what scales systems, mean, you of anymore? how so Powered idea and business change comfortable holding the revenues you at when buses let's look level want not at during

Gareth Joyce

Yes, thanks for question. that

be the capabilities well-constructed product genesis to a has business the our use our sort to innovation and of of powertrain a transit asset at was essentially business. we product have it now valuable can very proven the track, own of our demonstrate portfolio, For we as in

running buses level it, that mountainous vehicle. miles ready south and to have hot have world north for we're for business really in us mean, market. we Powered real Coast Coast, from East under terrain, West three terrain, million transit on name we of cold, you added the to flat testing the gives its confidence yes us, of that of building I is, so, what side own And the that

for tremendous So it's value added us.

the build retail it's the And bus had the us powered helped successfully. systems didn't the charging business transit to operators course, where energy solutions charging we of went for the so feed business because business that really And into out that.

And portfolio. helped us also grow the so and energy scale product that's

product develop we're for of going And market with if So we're market. now, And but mix today. yes will we the product the to plan we the them changes, as see like very all in portfolio the have. economic we comfortable we continue update opportunity we have the that to

Dillon Cumming

good, for time. sounds the Yes, thanks that

Operator

there the additional this like Gareth And further remarks. back Joyce Mr. or time, questions. are for no I call to to At closing turn any would

Gareth Joyce

us company for and understand your Well, confidence are close, I a I just you would time for guess we what bring the the we helping thanks of you all to message appreciate today have like and who you you really thank us. in and to as thank in

the today and rest time of So the the appreciate enjoy day.

Operator

conference today's Ladies your concludes call this you and thank for we gentlemen, and participation.

You may now disconnect.

Proterra (PTRAQ) 3 Aug 222022 Q2 Earnings call transcript