FTCI - Earnings call transcript Q1 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day and thank you for standing by. Welcome to the FTC Solar First Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference maybe recorded. now today, hand Investor Bill would to conference Relations. I host your Michalek, Instructions] like the to over [Operator Vice President,

You may begin.

Bill Michalek

XXXX and an opportunity welcome Solar's review today. our to and to supplemental to which call, Earnings financial were release, Quarter earlier information today's had you, Prior presentation, Conference likely Thank you've earnings Call. slide everyone First FTC posted

'm reviewed the website Phelps not Financial yet Chief these today I Investor at Chief Cook, section you've are and on and Officer. documents, Officer; Hunkler, If available Morris, Sean our Relations of ftcsolar.com. President Chief FTC joined by they Patrick Commercial the Solar's Company's Officer; Executive

beliefs I Before and includes that environment statements the in speaks remind only discussion as and date. today's the everyone we of current based begin, forward-looking current assumptions on our

As actual forward-looking factors. more our our no and to filings other such risks results materially update We obligation and expectations. SEC required and press Please such, uncertainties, from statements as specific risk differ to on the except law. refer and current could these by assume include release information information, events for

this reconciliation note to we'll As measures includes Please and release applicable both GAAP that nearest the of full morning issued the non-GAAP discuss today. a each non-GAAP earnings measure financial GAAP you'd expect, financial measure.

With definition In addition, release. we'll turn to metric I'll this for our also awarded executed is in contracts and discuss Sean. press that, our it orders, included our and over

Sean Hunkler

everyone. Thanks, Bill, and good morning,

producers market AD/CVD. our availability mid-March, imports freight highs, the effect is were sufficient our Module the elevated. of off growth on into WRO, significantly are documentation Before although in everyone's production in to industry. highlights, facing address they with idle ports. steel provide limiting those mind had our detention the in factor shipments stopped in Customers the Since current which and the solar both the limited to of I aren't near-term. or avoid industry, due main topic either update But and their already in and I drivers limitations key I'd as industry thought still last as U.S. the that's to the supply go to the worked limiting environment

without appearing in of tariffs improvement, the makers with procuring As its Module show on investigation the uncertain. of appear absorb even all issue now restart production retroactive unlikely to March modules was increasingly less any tariff. and with likely near-term buyers modules. launched WRO compounded AD/CVD environment to to made signs has risk to availability difficulties customers' new ship potential would This significant agreeing at has XX module

to on work new construction of time. customers to get modules, out decisions sight and As timelines pushed on in continue projects line get

while the our that This has remains is for have impacts higher profitability and second we delayed. old product business benefit most quarter as doesn't contracts a significant in design-to-value our of been our much QX So based construction steel awarded, contracted lot from the initiative. and of content of advances particularly with revenue that on

there are that bright standpoint. backdrop environment, several note I'd that like from with So spots the to of our

relative at with months two progress our in to on the in vast and majority touch and have I'll be a no bookings that million The $XXX on And attractive of nice made an moving contracted margin with added historical. more now awarded We million awarded $XXX past will forward moment. our cancellations. at and contracted profile

international. recent grow able organically We our have half almost been have bookings been and international business to our

this than complementary now gigawatts. stands record at profit XX levels. opportunities strong Our growth XP HX alone HX And technology is believe excludes our incremental has which pipeline, pipeline, in at and XX% This this of of year it includes international benefits. growth grown forward than addition will the enhance more other our Tracker. We're pipeline acquisition and more and and pending with excited about moving

the expect on and developers Overall, transaction the active be progress healthy with to close supply. to there that expect we of working in the to continues current activity new on see We to through in year. quarter sources module bookings bidding U.S. tangible as and find progress

I product while HX projects we our resolved. their on capitalize has Business That an Building think higher Tracker we to we margins projects already business, market which processes efficient accelerating including our control. this Update to our what customer our the improving well can gross include since broaden what cost out smoothly there R&D is executing efforts. growth and In efforts, January supporting which amount most continue incredibly we flight programs be addressable to to been and which our integrating and operational controlling really for AD/CVD costs market. if well awarded underscores DG of focus how efficiency, continuing on we'll and design-to-value margin initiatives, deepen our have includes can the relationships; and includes international XX incredible the on demand automating reduction and in and drive our do as have which strategic near-term, expanded is our continuing call;

more seen Along steel higher initiative significantly projects Our pricing, we've in expected reductions costs XX% with been additional roughly of year-end. improved range through driven and design-to-value new logistics the tracker. winning significant already disciplined reductions cost has now margins. product with our out the have We've

projects our will complete on As have projects meaningful newer a the legacy begin, impact and and it results. margins lower-margin our

credit of in last projects results, QX looks QX And on an and we of generally to revenue would million. margin that in a when those legacy what have left fact, prior $XXX show excluding reserve ordered at mentioned logistics we we levels As we of and the like provided range. expense, the X.X% incremental illustration quarter, negative this side or XXX profile been table, average an our

takes million gross and awarded margin and continuously as would projects On advances. advantage cost of DTV the if chart, $XXX we one shows that look it drive being what average silver the of continue majority And right contracted side to lining vast of our our those projects of there is update new like. reduction. our in latest illustration progress we The the more in than delayed, it's an of projects can

So activity become we're designed. Overall, to we make the more originally our than XX-plus-percent essentially, profitable significant believe projects can gross project toward well-positioned in margins long-term AD/CVD. range stated when normalizes post progress

road So will the growth. we in bump a be issues believe long-term conclusion, strong a in near-term of regulatory

have our We legacy accelerating new internationally are and business projects. to in poised DG business replace pipeline, and margin have higher winning record

I initiatives be what it controlling differentiated control Solar outgrew improvements, and strong plan even well industry. With is overall adoption, Phelps and With that, I'm effective believe and to customer product, efficient FTC future. on more years cost the significant we itself regulatory increased market the Morris. incredibly the to call few as can the significantly our positioning visibility turn the and in get We reduction the operational CFO, externalities pleased past impacting the to over factors for or

Phelps Morris

Thanks, good morning, everyone. and Sean,

our and with low a our for in in midpoint results the gross line the range would at As margin generally follow-up of our some with non-GAAP comments, Beginning provide reserve, our a quarter were end. quarter, Adjusted on Sean's coming first credit to have the outlook. expectations. guidance the I'd quarter for EBITDA first the effects revenue normalizing been to additional and the performance like detail

lower being ASP revenue level XX% pushed revenue. a $X.X This gross revenue lower compared quarter. a our which of $X.X our or was quarter XX.X% the or resulted was end by and range. revenue the with $XX.X to low just X.X% the logistics a target $X that was and to reserve, million the and of gross of shy expected million revenue gross volume. million year-over-year quarter as in than midpoint bit first a quarter XX% the customer to revenue loss million, reserve of million of in driven to to well was at slightly lower Exclusive the range or GAAP Specifically, the Non-GAAP prior as was a associated loss difference in decrease decreased quarter revenue relative credit second prior production XX.X% The revenue of of represents inclusion lower of the includes the this compared of on and volume reserve a potential reduction first margin. the $X.X quarter.

was the employee million of leads in quarter operating quarter reduced and The the driven to fees, or GAAP necessary Net impact the year On per the an to being prior versus of adjusted $X.X stock-based compared this This with GAAP as and $XX.X of well gross our a loss a stock-based support which negative expense of primarily results year-over-year million net increase $X.XX excluding year a above million consulting the quarter-over-quarter loss year-ago absorption quarter. million range. of as and loss in and public to operating in million. $X.XX and million which sequential profit less costs. midpoint percentage compensation expenses increase quarter. legal net the per reserve Company's to The staffing just $XX in guidance and with compares expense by was other $XX.X share the and compares level, or the expenses, a the $XX.X growth period, Excluding ago compares The logistics $X.XX and this quarter due was of to prior an was which in driven in and million, per $X.X difference on million $X.X reduction was primarily million to the basis, revenue the share of $X warranty volume result cost dollars compared the of million margin. in declined credit loss, by items and prior other compensation, the quarter. to of million the other non-cash a expense overhead year lower improvement the certain a is excludes associated for margin production reserve, $XX.X product $X.X other million. the in count overhead prior Adjusted EBITDA a was EBITDA non-GAAP year in reserve, or growth. certain severance loss costs ago share company. to in a $X.X $XX.X improved

of $X.X to the and regulatory moving legal for WRO, withdrawing transaction composed the and current integration turn to the close is We in HX light AD/CVD U.S. of In is let's associated costs qualitative XXXX solar which the guidance full that. our instead guidance to annual remains back Company year the is provide that, quarterly its to mentioned activities prior market discussion beyond track Sean on outlook. approximately XXXX. some quarter. and and with As near-term limited to uncertainties administrative With primarily be million, anticipate in the

as uncertainty U.S. outlook the products customers for to our of XXXX revenue reflects current secure Our quarter unable modules. they're have second delayed this until

spoke outlook newer, has a left These it offset we're EBITDA, the we the quarter adjusted margin expected products and the to overhead our projects is down more as reduction certain costs in of delay largely previously. have as by absorbing back legacy of the step higher-margin WRO implementing gross expense projects factors that of Sean industry initiatives Our about base lower given QX. pushed, AD/CVD lower wait margin importantly, with revenue slowed Unfortunately, these resolution to degree and impacts.

XX.X the non-GAAP negative quarter $XX between and of finally, expense gross million Specifically, XX% between and million. million, adjusted revenue operating second for between and and call to non-GAAP negative $XX.X our targets for $XX XX EBITDA XX XX%, loss margin

begin wildcard largest the QX in remain as back do light remainder move some year XXXX, largely see to roll factors the the off of regulatory we the delivery. margin newer, will the projects and half we for as of products While higher-margin lower

growth our a In addition, great international the uncertainties. near-term remain us for in which we've focus U.S. seen will given pipeline,

million Finally, million progress make awarded bookings $XXX in two months. past now we and with standing $XXX the our on added continue contracted at to good with

may contracted As will in and should expenses being the delays that further profitable silver believe mentioned, of previously of over products advances Sean of become one than down of been have advantage initiatives. allow our million This the majority million aid figures operating $XXX advantage is first. the second more will further AD/CVD will take designed. us gross HX. We awarded pushed DTV margins the linings It take the non-GAAP improve, year of will and our we us XX-plus-percent. be the stated gross our road latest in towards vast the that target margin $XXX the versus to we half and half to what long-term the second our on in believe and that the today, include pending should these of noted all revenue first and previously of factors half, grow decline the see commentary will Based of acquisition relative outlook

supply, resolution the seeing the favorable quickly and U.S. be well-positioned are U.S. while be there we current prepared the incredibly In impacting questions. in over closing, WRO, and respond we'll believe we regulatory near-term, issues to AD/CVD it customer should the operator module in remain experienced we'll toward the we addition, remarks, In we and bullish to on markets. demand pent-up the global outlook With for some short-term the for growth U.S. headwinds conclude our industry, the to the that, any long-term solar turn I'll Operator? in including

Operator

first question from from ROTH comes Thank Shen you. [Operator Capital. And Philip Instructions] our

Philip Shen

I continue. see you Good was job half on bookings that there. the wanted to international. It strong looks to trend like if expect

evolving? to you also they're bookings you think level expect that and QX maintain? mix about you to do line how sustain when And being international QX, So you about this expect international? or can then in Do talk

Sean Hunkler

Sean. with Yes, extremely about excited made international we we've is the this projects. are progress Philip,

to the we quarter. obviously the close that definitely here projects opportunities progress. and We -- excitement trends XX the expect of XP As international to doesn't we trend to by that in we we continue. we before, continue countries expect expect participated think to that, the and Yes, of half lots and with we this of add see internationally, We've new pipeline to a the projects we system now and mentioned mentioned, countries of grow. We gigawatts -- that lot the those about will continue. hadn't three which Voyager is Tracker acquisition, to we definitely had international expect HX end include hadn't

Philip Shen

no you to QX? being for modules? many And of when expect being mix projects have be projects about to can look the without that heard talk with back tracker with you Shifting are modules. U.S. and installed you I here then QX your guys all at those what the you're installed QX how serving guide, that QX do in of you but in

want for pervasive how Just get a to be. sense might that

Patrick Cook

Patrick. ultimately of is vast associated QX have in with in that this mean here and the this in I are we flight all in QX Phil, and were being have projects the finalized year of those majority Yes, delivered deliveries them. models really for projects QX QX, legacy those that being and those with

Philip Shen

the how cash guys what I could was of the through meaningfully looks but our as some working increasing and with it to from trend consumed to on less working XXX just then I'm Okay. expect capital seasonal, wondering there? quarters talk million in to And you than relates about liquidity the that's you calculation sheet, $XX capital balance consumption days it like talk you with QX. cash [airline] through and XXX with if some in you coming see guessing

Sean Hunkler

Yes. Thanks Phil. a good question,

amount in million, ended $XXX of And million receivables. So we as $XX up and in to a the the the but the we end we made progress balance receivables. we've bunch just undrawn quarter. a then, higher ended And a collections with with you at fair of have Since we end mentioned, cash terms also in of of of a the $XXX cash million expect definitely with revolver quarter receivables timing-wise, QX balance. of

So receivables the are expect some in the good getting are progress paid. as seeing to it see quarter we and there definitely

Operator

Maheep from Mandloi comes from And question our next Suisse. Credit

Maheep Mandloi

Can seeing U.S. just versus or just up what on one, you on markets we about margins following in these like probably on should the today? think How in question Phil's international. about gross the ASPs markets? we're So talk them

Phelps Morris

and added system the are with to the three in speaking, at but said level we Voyager half XP mix quite we've the basically mentioned, that Generally time. So internationally the pipeline. seeing margins over countries not are great we're in as we're new internationally, and improving interest past now progress seeing -- the the

we continued so across frankly going model that international with in see part as of projects seeing margins speaking, year. we progress to in margins margins. we the the good we're projects. think And continued the forward, And growth And gross are is these internationally expect

Maheep Mandloi

-- the your or to are interesting month of and or on understand for see in of kind growth good big here. majeures, conversations just checks it bookings, into seeing example? just But 'XX like then customer the delaying terms And backlog just this force Are happening into any to is like they with trying cancellations what's embroiled any of you customers? or getting

Sean Hunkler

grown million, months Even now one over the by of despite the AD/CVD, that our million. two has awarded is actually $XXX contracted up and we're to $XXX and past highlights

Now that, in course, of is majority the XXXX. of

with AD/CVD this to resolved. seeing year into that So we're cancellations. expectation not next supply we really tendency any then push But is and projects the is seeing out the are resolved module

So and year in a any it's but XXXX. tend just They not the strong, again, we push buildup some -- cancellations. But no right, are one to for is seeing really significant strong is canceling. shift not

Maheep Mandloi

And for then one just one last me.

gross the Is any scale gross that of high to need? margins think or Just do reductions? your given or kind target expect QX to would helpful. a it catch teens get terms rate What these up just that, do clarity QX, run with you prior those you cost In even margins. of on the back be here, like faster we

Sean Hunkler

little going So to I'm and our bit, comment CFO, comment to Morris, let Phelps well. ask me then a as

of things in because, -- bit little So X to we good of system, control can we Unfortunately, steel steel a of with steel the really reduction we great We're done don't tried like we've Slide projects, quarters, in the we doing the what benefit about the the in that still of significant logistics. and is masked of like getting content relationships the both of great our the past with this progress year. progress and in XX% guided AD/CVD because lot the and We building content still we're content. and steel feel reduction. have give suppliers in progress. which the presentation current information the talked indicative quarter, we're you to frankly, fact legacy the as couple a just that we're making about most today That's making the projects of

indicate roll try get you'll give a of margins as to in gross so lot mix shifts And normal the opportunity, with new AD/CVD off couple as and free we just we're more and second margins. see a a think projects to of rolls revenue that for we half the gross how numbers on -- environment and out definitely are we levels, year. seeing indicative for of wanted we And you the what the to different

So I a add little if that? want don't know, to Phil, you to

Phelps Morris

mean think it Yes. of No, the I Sean [there] I thanks, margins nail on in are. the terms Sean. hit where

logistics as that that's steel the But to are new we slide get QX new shared that the that as up there's What X higher we are bring of year the we a initiatives with as going where burden million level. going basis. margins that's improved of we on products there projects there we to higher target exit to advantage did just down. margins we we're of on Slide Clearly, you with if is be at million taking well overhead think at today as $XX guide revenue really lower an So going to as well a the are exit $XX the signing where on illustration X. as the DTV content, an the look go-forward to are a environment levels here showing on up the the

Operator

James. -- comes I'm from Molchanov And Raymond question Pavel from our next sorry, Paul

Pavel Molchanov

market diverted of risk, making going? Asia. from of the modules States the where XX% came parts this to year the of because are year, world outside those And installations not AD/CVD the that installed way the they will other in United supply Last the are into U.S.? accelerate their U.S. If Southeast modules

Sean Hunkler

good question. So

And that we of checking in So market, idle. specifically factories that's many North fact, with folks business, in the in many those module of been those American know factories our Southeast the Asian have and for understanding. have, countries build

Asia of China. those going And manufacturers they're so, and are of And parts in some of in Europe other sourcing building other out factories. projects on obviously,

AD/CVD folks getting where back supply of to and up start chain again up, fill to Asia the part so including Southeast confidence logistics And resolving point those a of factories America. is the to models getting those have from North those back

Pavel Molchanov

Right.

and their it simply those would product take deliver what elsewhere? to So for fabs be reactivated

Sean Hunkler

Yes.

good be they makers to have I the think the I of back -- -- those the of And factories decision The to ship level a -- spent straightforward. and make start time motivation module factories. right that is and cell to up, the wafer news pretty in would to it's have lot module operate once other places.

place, start-up get As the in requalification the and can that long they it's not workforce is as -- great. not back time

other up up and if think manufacturers could pretty they North if I goes I backfill projects. decided think away, American start so AD/CVD what And again for start those for factories the can back either quickly or markets, chain that's supply the

fast it's away. matter super supply after components modules. it's again, -- pretty the of So the high-tech fill for modules a It's AD/CVD just I build manufacturing I not and to up going that. chain And could think then think

And think quickly. start could so I off all pretty they

Pavel Molchanov

Maybe in lower way bill your chain manufacturing? Okay. down to where seeing value you're about of that Has from worked six months XX% materials through its moving Futures the Shanghai steel. ago. just

Sean Hunkler

fuel of steel chain, some in on down So disruption right market we're and in that's the about supply [indiscernible]. not we we're Ukraine general, some seeing war factor very, talked that's going a But impact closely. right the market terms very in important little -- necessarily has the bit watching causing now the had the and the now cost

management new the basically of China. sourcing [indiscernible] out XXX% of One

some with suppliers also suppliers. the but have And and with but some relationship same different strong relationship China so we of in that's deep

will below the in available. up think that really the team the us of steel near ends being cost So take we help advantage supply that Chinese is

advantage, particular So we a as that We're see very watching right. closely. it very,

Operator

from Julien Bank America. Dumoulin-Smith comes our question And from next of

Julien Dumoulin-Smith

hear Sean me, and can team, guys okay? you Hey

Sean Hunkler

on clear, issues loud are line, you're technical through some coming Yes, the Julien. and yes. Obviously, there but

Julien Dumoulin-Smith

latest since awards. here sort have seen while you are some actually, little trend, to focus focus continue talking especially markets to where of developments on can Geographically, a In international opportunities recover? international U.S. European about growing about relative takes it, the the emerging you we're there that of awards of bit given the some given you talk obvious to these fact, the that backlog thinking could time we've

Sean Hunkler

We in certainly see the sure. Africa globe, pretty see in opportunities much the We boots opportunities for around in Southeast where on have ground. Asia, Europe we all and the

In up as of in the to it's addition, from help HX markets because And a China XP well. well. going open help high HX to acquisition, we think as also it's quality really to in Tracker other market going the us really have

about so So And before, Southeast this and from really, internationally speaking, Africa. we're came The international, from to that new our pipeline is XX half globe. that. Asia, the opportunities about year. growth now we really up as we're And that far came excited talked we're frankly of opportunities XX% is mentioned the quite I around excited about gigawatts

also Patrick our Cook, me Let have Officer comment. Chief Commercial

Patrick Cook

in months, about with we market. Africa Southeast a did in partnerships perspective, and that folks an in similar relationships team Yes, I'd we've there four sub-Saharan year we're our from a and definitely for to say, uptick ground seeing, Asia, last what developing three Australia. on the the activity in had And the what region, in European

in those of and bidding we've terms hope that advantage in EPCs the an project of able wins take terms of developers. with seen relationships to definitely in that so and the activity we uptick region, And because to in be we of level have activity

Julien Dumoulin-Smith

in bit you And the sheet little then the bit burn talk Obviously, here, you EBITDA you in balance capital you working maybe timeframe talk quarter, here an in and the XQ? can XQ clarity context the a talking about contribute burn. how cash that you're improvement Can in outflow near-term. pulling bit -- about less thinking further? obviously, a and the in a the guidance see rate? EBITDA Just third having little little Obviously, we about of back trend some trending the are just alongside here saw how about quarter

side with the managing have to appreciate think as XQ even? burn, an liquidity but EBITDA about you you XQ? the do And think the about how Obviously, you of sort XQ AR you about are levers opacity in how thinking think do I situation, So this? the of that how you about

Sean Hunkler

AR. the progress end we're receivables, made definitely, before seeing progress good So and see at we million of in $XXX had in a continued those collections definitely we'll of in really cash. receivables. terms in mentioned QX, we've And I improvement on

I it quarter, and speaking, far continue. we so honestly current made I the about the good improvement so And in even to expect feel

in In addition, we to and the made good as so progress that the we of terms feel It's again, also have And $XXX revolver. cash million and well. completely have we've about undrawn, I we'll continue make.

that as Let me comment well. let our CFO, on Morris Phelps

Phelps Morris

Yes.

the EBITDA. increase QX, of in done a we able of cash end will where moved due. in guide number We that mentioned, we despite QX be So in for as right, quarter. do some had job negative quarter on good the the -- we net collecting at this this a really anticipate terms terms issues of invoices timing as were a We've of Sean those

kind talk the sequentially the of the increase second just of anticipate margins, throughout as terms So half, with we we ranges year. about margins in do to

will us any we help untapped do as levers, so liquidity that revolver, multiple manage And through etcetera, Sean have issues. mentioned,

Sean Hunkler

overhead other Julien of COGS and add, thing, now. the have on too, we would a lot is focus OpEx we I obviously, right -- So

on that we're others environment, tight given spend, like AD/CVD and discretionary very, really spending really, areas that. in and the and on carefully very So a managing look just putting

to business. long recognize opportunity need a in of also the the We lot However, to in continue invest. we see this term

the And like we we areas carefully to develop like need also our initiatives grow things processes while climate, like invest continuing where continue -- steel content, in that. supply we AD/CVD to want so and to DTV the reducing there are automate to for manage current spend, and to our chain,

striking AD/CVD current we're a there, recognizing the So environment. balance

Operator

comes from question Schafer from next Capital. our Northland And Donovan

Donovan Schafer

that's if been in the I hours Malaysia projects translate doesn't on is such a But cool of Indonesia, I want Kenya; megawatt, makes markets well very like but I always into really think and United wage in maybe who've So them States me think It's of being it's was first I a it me man it's -- on about U.S. lower international something and to as the blank. reducing interesting product think wrong because I per was because that the then I that's being companies these see, attractive very I'm focused successful think this, wage high-wage think necessarily to what of And ask drawn part challenging South markets. to key markets. lower correct I've Africa, it of sorry, I'm often

given given cases? certain Tracker -- what or correct is again, curious, in with I'm attributes, I'm XP are maybe the lower plays that, these, appealing attributes Voyager do me the wrong, are are certain these the if well to if there make markets, aspect, that wage -- attributes with that something the some are that agriculture maybe of So it's some there of things other

Patrick Cook

because get now healthy us, Page indicative on wage is of to solution slow of megawatt markets and drive for on countries. projects. that Donovan, bit able in fits what XP HX, with little biggest a cost markets participate been But we've compete ability to to has participate the man-hours in to these to able these better we're of But undulation Patrick. very to labor these in and sites you we flat, big to terms very of terrain, But been to continuing site. margins adapt international less our healthy projects for at margins. also to X it's these ability acquisition the especially very our rugged given that terrain-challenged showed hey, the in it's the in more -- of tolerance and lower a think I attribute focus us allowed high some constrained high see, of per down at mean be going where I kind a types obviously,

Donovan Schafer

mammoth or kind and strength. DG, size of have odd lots, of I bring neither to to projects? know some stuff without or of comment the also these also there's -- architecture projects, mean, a giant kind I can plays your And but -- DG-type on these likes design acreage whatnot. fragmented more you down well I mean and everybody shaped

projects nature of So these had fragmented a or kind or what's on are larger they international or kind of some from the of standpoint? or markets smaller size these them you've of

Sean Hunkler

Donovan, this Sean. question. Thanks is the for

lots sheer new benefits great environment, on three be it terrain-challenged markets, the mentioned, experienced Voyager and these and countries projects. they there's we is it's use irregularly use countries new two countries they three these project it they those once we keep seems for constructability total answers in large of tipping chooses once the they and projects project, once, particular, shaped at system that that new again megawatts. or in one it, that looks really in actually Hope the that the question. these in we excited just your someone whether But the XXX XXX to totaling coming project megawatts. -- smaller the one the to back that have. point seems we're The time frankly, And yes, it. three projects experienced very thing advantage And that time So where

Donovan Schafer

another That the focused does. something being one we're we hit the you But obviously, joke thing last case. question get you -- then also coaster. this around it hits you everyone my is then else. Auxin That solar back is just solar thing and -- corner get up does. really, And on and about comes And the with very and AD/CVD

trying just -- or away now of even not I'm Labor that is also -- -- we Uyghur at Prevention goes so to when look a little there into there's effect. a or we in get Forced point Act few that some have a past ahead the kind we terms say over month AD/CVD resolution And just of this

extension whether Of course, the Congress also everything there's with about could we get credits. of tax

even to the in starting -- has anyone talking implementation of hear look to starting Prevention purchases So are June? people AD/CVD, are how could of if we I'm then just safe end Uyghur harbor anything, in -- at -- beyond more cash Forced a of kind And Labor the year. around an to Act plan about you this began extreme possibility what extending mean that isn't coming in that's of do tax I Congress year the could extreme of but if downside also the the credits? scenario, door then you end downside bunch maybe get able at of that scenario,

If you can comment great. be would on any of that, that

Sean Hunkler

sure. Sure,

So the obviously, back issue. with the labor forced we've WRO that again been supply dealing with the plant, to one particular WRO in and terms of tied the polysilicon panel

feels supply it frankly, prepare for Act like the mentioned. has that time of Forced because had the chain a that, So you bit to Labor

the the And speak. won't work WRO because we're have done a dip of be in on that that, the so that solar so to coaster, necessarily big that optimistic suppliers

am investors, tell though, be a gigawatt XX and need a to I that. we're strengthen of there's the everything it's really our a supply market whether that long super year believe lot run, company of the I the base, or to do to strengthen we of as period, When terms energy work to Donovan, doing a so let's optimistic. doing us I American people North are In reducing is terms during to to content, this and on that to certainty the And that. to about of better stronger, in the processes prepared within for everyday through it I pass. that to absolutely can say that the we that our company choice team business of And to AD/CVD. good feel does great tracker absolutely going long-term will get we are be really Solar poised we'll the poised, work tell with focus what the team when and take customers. I that our really pass, doing -- I are a optimism going market. And be talk work control make that got about you, chain customer to it doing EPCs the do is prepared the The DTV in the we're Company we for great great FTC steel And companies, things advantage be outlook this,

Operator

Instructions] next from Kashy Harrison Sandler. our Piper question [Operator from And comes

Kashy Harrison

us off, a if sensitivity help the So my first widening for out on one, maybe you'd surrounding was that I X. bit. Slide just margins sensitivity first thanks wondering

million end million? to would million can of $XX that range and through If bottom gross maybe how under end $XXX that think us you top the took margins and you of that range XX you evolve $XXX a under help those brought to those cases

Sean Hunkler

and So projects the situation, content won't the is given we It's and basically lower -- and that legacy frankly with affecting so whole the important projects, wanted we margins. thought those it dealing of delay higher law projects are was until come generally the we're to averages shift projects how roll off really QX convey that projects about with in the us. AD/CVD to in the steel

kind a of We kind wanted in ended of how revenue wanted in And some show we we so give the it's chart to forward. really a then of to different and Obviously, point up fourth at look you proof bit indication levels. quarter.

as frankly, in to definitely off those see margin. numbers we original just do we're didn't, to new improved And from a zero trajectory end down projects that give get -- We shifts gross We indicative range and to of -- the the that in will over can And margins. really gross new a XXX. range of rolls in a to we strength some feel analysis sensitivity still tried would good legacy AD/CVD to projects we XX%. gross we seeing caution planned of the in projects So definitely terms to thought -- the you see couple margins to give definitely with of we we that model projects where didn't up. majority and up definitely

the so kind the of And that's principle behind slide.

again, indication feel about you that done, the just a work the about every different really team outlook we some to has wasn't And the so precise because good we long-term gross it be really intended on feel revenue give and good level. margin. But

Phelps Morris

Yes, this Phelps. is Kashy,

just higher as So on go up, thing relative overhead overhead the will I'd The get operating a your much burden versa, be revenue vice levels, other on mention to intend be obviously, the directionally, revenue on -- and leverage lower will there right? basis. you

you -- model you of think So I'd as out. that that that consider out, that in when just modeling put

Patrick Cook

mentioned part we I'd and put, $XXX the X. in of I his The other awarded showed to that that mean we is remarks Slide north fit profile the Kashy, subset, took on of contracts the million Phelps

either projects model on that's And that how a that. what of ultimately been That's indicative PO so that we have we're seeing or we've awarded. ultimately

a we legacy that in very feel go-forward types the because we So have margins projects orders are fact that's of basis. off why at purchase these on confident these for projects rolling

Kashy Harrison

dovetails could your the in with I was awarded. you just My last next if actually Patrick. comment, question and into your wondering split us help maybe executed

into or Specifically, trying awarded bucket? to proportion into falls and what I'm the proportion signed understand PO executed what falls bucket the

Patrick Cook

what's ultimate haven't breakout what's Kashy, we kind versus Yes, publicly the awarded. contracted disclosed of of

Kashy Harrison

a down maybe Was had you jump or indicative service trend like big Can bulk through It XQ. just about is shipping break then walk to for come the the approach what was from guys there of drove quarters? item to in one-time a and you looked And Okay. talked maybe there you a revenues would that that -- big expect services prior in me. -- in uptick? what's that us like final driving one there

Patrick Cook

question. Really, of particular great kind tied revenue logistics associated Kashy, to Yes, with that's quarter. more that

comes really recognized we of So in to logistics kind the more that down revenue It timing. particular quarter.

As our along recall, the the out while materials revenue total in caught are the you revenue revenue line, services ultimately in broken is logistics kind revenue piece. of software with

So -- recognized. that will revenue logistics ultimately fluctuate as gets with

Operator

no for remarks. to the management showing I'm like closing turn to call now I would And over back further questions.

Sean Hunkler

everyone, thanks, for today. well, joining Hey, us

good our an reducing in uncertain about international continue right market cost advancing reduction we uncertainty While now, U.S. and feel to control. our our many expenses there's strong under focus in accelerating our driving This includes R&D factors the environment. pipeline, roadmap,

set, update well-regarded you progress. continuing Thanks and to much adoption to pipeline our We product strong also with well-positioned on for customer levels. look forward a joining. remain very record We very

Operator

participating. for today's This conference call. concludes Thank you

You may now disconnect.

FTC Solar (FTCI) 10 May 222022 Q1 Earnings call transcript