FTCI - Earnings call 3 2023

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Operator

Hello, and welcome to FTC Solar Third Quarter 2023 Earnings Conference Call. [Operator Instructions]

I would now like to hand the conference over to Bill Michalek, Vice President of Investor Relations.

You may begin, sir.

Bill Michalek

Thank you, and welcome, everyone, to FTC Solar's Third Quarter 2023 Earnings Conference Call.

may which our are you supplemental release call, information, financial posted the have earnings reviewed and Before earlier today.

yet Relations Behnen, Chief website the company's not on the of the by company's you've reviewed Commercial Patrick they Chairman documents, If Cook, and are Shaker the Sadasivam, Investor ftcsolar.com. I'm Officer; section Financial at our Chief Officer. Board; of joined today these available and Cathy

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

include As such, expectations. these and actual forward-looking differ our statements results may and current materially from risks events and uncertainties

Please by information update obligation refer filings to release specific law. SEC information assume other for on as except no to such more required our risk press and the factors. We

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

In addition, included release. our press definition in our discuss is and this metric of also our we'll backlog

it I'll With turn that, Shaker. to over

Chandrasekhar Sadasivam

the announced Thank of leadership you, morning, everyone. of to speak about I Directors good today. have with you Bill, transition on behalf it we was the directly thought and important Board

is and company of compelling FTC customers team Solar innovative a with technology and that employees great a enjoy. and services

been X the has chain the growth in was trajectory with technology years much repositioning to supply the our AD/CVD cost disruptions, right the and last of structure. markets With start interrupted and the right of and be about company

our improved front progress made have We that and on positioning.

now execution. achieve growth the enjoy accelerate leadership the and has Solar right to of growth new to healthy our Board our phase opportunities FTC ahead, agreed healthy FTC time profitable The progress Solar our now and next and At that is Board needs the profitable we tractor plans and is as evaluated bring level enter growth. to and and market

the been release Accounting Behnen, basis. more who from as has member CFO served company's Officer press saw and has as our company Cathy Officer has this on interim experience, Cathy XX named Financial has As you XXXX accounting and Chief the Chief Chief the made since morning, Officer leadership partner the and contributions Accounting financial significant executive to team. a of than roles of including years an

responsibility. We to expanded are take this excited on Cathy have

The executive leadership day-to-day of members, Cook, her combination Officer, and Chief Sasan and our further To of provide monitor be the initiatives will and to basis. a company. customers will leadership regularly activities will during for board and fellow Commercial smooth transition employees oversight the on Chief between those the our Aminpour, In this management Patrick of ensure assist transition, steady company accelerate Cathy communication Officer; Operating growth. management in regular and the leaders of the particular, and to order Ahmad engaged increased facilitating Board Chatila provide in and profitable a key its

not blend miss and our and We goals. structure to ensure the but we only toward not new accelerate are along right that perspectives organizational a long-term that this the with history team confident capability, do of beat, they has

While accelerate momentum. our today's it also news represents represents opportunity a a for us tremendous change, to

to for and thank made. your discuss and With it I'll progress time, to over have highlights you I we turn that update, Patrick the QX from the

Patrick Cook

you, morning, Shaker, good Thank and everyone.

of a quarter not and in gross third results benefits came expected, charge margin that As largely Cathy will net our to operating were expense to in as guidance. discuss, our

lag. slate in continue our to look getting experience we later than the projects of aggregate quarter, start a to is customers project we previously fourth As anticipated various

is providing are result, for the down the QX. quarter a fourth from As we guidance

the delayed this revenue in of growth to significant the XXXX ramp. followed first more quarter much expect be as We a by projects

and future long-term our We overall continue prospects. good growth feel about to

last Our competitive based improvements on briefly improved we growing view the confidence discussed and our positioning backlog. that I'll and is by supported quarter. positioning large our

ever our we'll more to First, that manufacturing we've We're believe front, on our now cost we scale. been continue is leading improve in with line and than competitive with competitors.

on average meet new margins our or past. the provided targets Second, project we put the track us to in exceed

achieve $XX X.X% quarterly have grow As absorption. low we a million to margin million QX fact cost proof that getting normalized you see and approach the on taken able or previously to may point range recall, as that position end borne in to actions that fruit we the revenue range $XXX only were XX% is and the we revenue an targeted have XX% in basis to gross reduction on cost The profitability about on in us of revenue. additional we've additional

Third, and we this the solution in market are market with a Pioneer. of in didn't module We availability, we XP the XP better restricted has solution until believe now recently. our time done have

our few Trade nicely, backlog a growing XP quite We very additions in response have and Pioneer, following project customer is including September. great had RE+ Show to

U.S. we larger Fourth, Spain a existing to adding new countries international South Africa like awards regions and awards most in now traction in gaining recently dozen regions, We've have We're Italy. and in our grow of continue in awards outside business. also the seen

Our only internationally. XP enhance will solution our prospects

approximately to $XX X. now our lastly, $X.X grown added billion backlog million since August and fifth with And approximately has

call, in number include we which that projects and outlined Africa. of Italy added, last Spain, On were XXXX, our in South deliveries a including

the a project the on One award at in project was the and quarter XXX-plus didn't the here added We into will U.S. backlog this we also ramp in gigawatt fourth to announced mention project continue Revenue quarter but year. Idaho. was next our last project time megawatt X in of another

us growth purchase ensure goal business support continue growth backlog, and the additions, converting we're be about to to including more our to of our to continued recent allows adding The and our future is now orders to optimistic prospects, growth.

demonstrate continuous quarter margin gross and pleased we summary, targets relative were our well in to So to do improvement. third

revenue revenue first quarter, than quarter highs we We'll and cap to investing starting fourth along will expect XXXX. continue products as improve in improvement. in that our the margin with operating cost reach gross later we growth, positioned a Some with margin profitability are while grows. expansion future enable to expect expenses for cross We're to performance new anticipated, but keep and structure on

that, I'll turn it With over to Cathy.

Cathy Behnen

This an of Thanks, came relative good a Beginning revenue third to XX.X% additional quarter. of Patrick, level and morning, slight at the our provide a and the third decline $XX.X relative I'll color our of outlook. on discussion increase to quarter and ago represents some everyone. performance quarter, quarter year last million. X.X% revenue in with

of a couple higher from logistics margins, and nonrecurring benefits. better mix materials Gross versus a project benefited of profit

GAAP the to our or XX.X% gross quarter. X.X% of or revenue Specifically, in revenue profit compared million of prior was million $X.X $X.X

above X% by expect future On on excluded mix was million margin $X still not range periods. million our cost and XX.X% guidance that our don't reoccur a structure. that X.X%, and in the gross inventory totaling a $X.X were to have That profit gross non-GAAP were benefits revenue. same include does to or benefits lower-than-expected If on nonrecurring in costs or better-than-expected and of those would X%, we contemplated guidance a been will as project supported of guidance, our margins improved basis related non-GAAP of basis, couple closed

profit This third other the in figures These and our since $X.X loss gross margins product million represents quarter, quarter our compare of margin IPO. indirect a positive our and the ago million fourth warranty consecutive the $X.X margin lower costs. primarily prior by and non-GAAP in non-GAAP improved or and quarter to of of a difference improvement gross quarter gross direct year of X.X% driven with significant

expenses non-GAAP operating $XX.X basis. GAAP Our on million were a

Excluding in year stock-based million compared $XX.X quarter. other certain were compensation expenses costs, and $X.X ago to million the operating

an to this a included quarter credit customer approximate operating specific million related expenses $X The account. loss

at expenses continuing low Excluding than growth. years, charge, our been have be our our range would over below look across better this end what which while to the strategically support non-GAAP for areas continue we that efficiencies guidance the invest last in and seen operating $X.X million, company of X would to the as we've or

million loss other of the prior in quarter. the which $XX.X or to $X.X million quarter $X.XX per loss ago including prior year compensation in net and $XX.X share million, share per $X.XX GAAP expense million $X.X stock-based $X.XX or or and approximately in of Next, was items the million and $X.X million $XX.X net in Adjusted noncash a excludes per share quarter. EBITDA $XX.X compared quarter the loss, of losses ago million to compared year had

EBITDA the gross range. as well benefit, high adjusted have the as margin our guidance charge end been million of at would $X the Excluding

ended $XX.X by we the quarter, Finally, usage cash and an cash regarding on the in use received million with in balance liquidity, for of of sheet. which million cash the quarter, $XX.X operational we the offset the of ATM of quarter facility had we

no as $XX hold on debt the well to have a million the at under the sheet, ATM program as quarter. remaining largely continue of the credit end balance revolver We available

to With reflecting Patrick that expect the including mentioned, to quarter we our current that, delays sequentially focus and let down outlook. margin on project absorption. Based turn with be the us our fourth the view revenue lower

projects a to recovery fairly this quarter first as expect be in revenue ramp. We the substantial by followed

runway revenue As be Patrick trend, of mentioned, we growth great we ahead largely expect a us, to of gross margin the particularly have deal as and the up.

negative million non-GAAP EBITDA and call quarter million million. finally, and and million revenue; adjusted non-GAAP between $XX for and positive $X.X million between between million million; and $XX targets margins for fourth expenses $X.X $XX million, or revenue the negative operating gross between of our X% between positive Specifically, X% loss $XX following: and $XX $X the

For improvements categories. sequential see a the at revenue with in first expect the about XXXX, growth we all quarter of XX% to midpoint

and between Specifically, EBITDA $XX million margin adjusted XX% operating million; between $X.X million $X of million million; and between and and between $X million non-GAAP million. revenue; gross finally, and non-GAAP revenue expenses X% $XX or loss million and between $XX $X.X $X.X

XXXX feel forward, a the strong about recovery for opportunity continue in good Looking and to we profitability. achieving revenue

operator over questions. With that, we prepared for remarks, Operator? to it conclude I and any the will turn our

Operator

question comes Shen of from line the first Our Instructions] ROTH. Philip [Operator with

Philip Shen

for QX. here is on First guidance one the and QX

lighter came was it in what think the way. for in looking Street a meaningful I than

about opposed get been released. because remarks to recently, then have to see ramp-up only some it been that and polymodule more was guys OCI as flowing say a you exposed talked to has impacted their delays. for You smoothly Is Genco your that And time fair now. retentions in you'll prepared Genco to able pretty the been by module it's

that do better And release you ramp, of that you to so much expect as expectations result ahead retention from -- of starts a as would kind

Bill Michalek

let Phil, I'll start Patrick and then continue. I'll

amount of different Many those with projects. So that have supplier that to have historically, the move forward our modules backlog, of with. process, associated modules from fair did during we found our a in AD/CVD were

don't I anything Patrick, if changing. been that's you'd think I add know but historically, fair it's So there.

Patrick Cook

And X the in QX-QX, in kind revenue quarter thing, Yes. delivering I'd think other project the when say signed then kind terms too, you of the of gigawatt overall are we some and ramp. moved of The projects about Phil, that XXX-megawatt had right delivering. of that here last the process project we'll be we've to

So future got prospects is you're base revenue shifted going so hopper of plus in of why is gets kind gigawatts delivering. which we're load because that lot and we've a X.X to the optimistic XXXX, that about already see kind the into of

very we're about excited So that.

Philip Shen

Great.

result rationale forth. project about you and you can were to those it, and the touched pushed of the long sorry give challenges color curious pushouts? walk if just but little -- the XXX-megawatt as delays project elevated so missed if for a with it as why So rates to gigawatt recently more Can a through time for the projects Have right? a you amount of we've each on earlier, some period fair of the I

Patrick Cook

as overarching of So bit bit is kind And in been obviously, move. perspective, little of from reach is cost, seeing I a you're we're a FNTP of duration creating a think types projects challenge. Interconnection little just financing those what a a or projects rise LNTP. seeing also longer has

of we've Obviously, right bit is of little increased past. issues, challenges and module grid that's push more in in congestion, a seen current the what projects market. interconnection and availability the of kind better, the financing rates in traditionally but those than kind seeing having ultimately getting grid we're is the to seeing You're

Philip Shen

One and Great. I'll one it pass me, on. last Okay. for

in have a amount at cash working pretty have you to accounts capital, of million $XX a relates you million, tied cash, account. healthy in but bunch up receivables, of it high $XX As

sheet, Just wondering can through? you balance through if you capital, how working to talk expect us manage

Cathy Behnen

is Yes. Cathy. confident. Phil, We this very feel

improve Our cash will of position to the flat QX. end is a -- be little by

with And on to we in, in receivables be chunky and we're some expect stands confident have kind coming move where ramp that and that balance our the the of QX. seeing We sheet. to we're profitability,

Philip Shen

receivables at market of where -- there this or what's Are this are in customers kind point? they the of preserve just trying high? are might so so the terms -- And is why there of mean why some reflection Great. some going your in I to of another be chunky cash? are on --

Cathy Behnen

that's think what seen. I Yes, exactly we've

the financing -- customer receivables. has put side, making out of some changes on And the some also the

other So we large to QX. come have some that in, expecting receivable we're in see

Bill Michalek

And we that it quarter going was actually the That's mentioned it's the like [ of to in X expected quarter, in ]. it. come to receivable now bigger that we that looks last come this chunk

Cathy Behnen

the right. to It moves

Philip Shen

available? capacity have And do facility? credit you the it. And Got you about can a talk

Patrick Cook

million. credit X It's traditionally that's of projects. about credit have Yes. used letters support a to de We've $XXX for to I utilized. mean -- got minimis pretty It's facility amount right to now. X.X ultimately we revolving

As to ultimately it. within haven't in we've gotten utilize the market, more tap we credibility had and

it's undrawn So remained and untapped.

So got than available under line. $XX we've the more million

Bill Michalek

quarter [indiscernible] million. at end But $X the

Philip Shen

go ahead. Sorry,

Bill Michalek

can I say.

So full And the quarter end amount. can -- the on million revolver. we end, available left the of $X as there's can we quarter, throughout then

Operator

Schafer Our Markets. of question from comes Donovan next the line Northland with Capital

Donovan Schafer

these I first still CFO, is describing dynamics and And kind CEO lined response if are that seems ask get on for so the with the everything him framed kind or this. the the with at your Shaker from But transition want wondering are the on, is of it. way way of out here all way, up of it guys can -- we that least issue maybe a being control, but you the with also to acceleration. the

way the I can prepared why think -- up as you acceleration used And what that of QX word best as in possible going Board's the been should the at face or that, lot here? guidance, by CEO more otherwise guidance what this and we QX all remarks. in clarification has on control, what's reviewed Is Board? that is would point, unfolding why that to and the was view tied rereviewed And all CFO? be replace even the Any continue the and backlog to within lined candidly, and then a helpful.

Bill Michalek

guidance. Cathy, this, out numbers. you to is the QX of I but let And QX. I -- I'll the the That's speak what don't that? think guidance, comfortable why know if So lower company add to saw think for Cathy in you the to view want And terms derisk with I some the feels putting we're and to

Cathy Behnen

answer confident very And provide we've Yes, in, that we goal in to that's a project yes, by have done. we've QX. ramp And and project. gone into be the guidance through is is Yes. what clear the my view I can it

So very that. confident with

Donovan Schafer

about a and XP did Okay. be And comment hang actually, follow-up, Well to anyone being we've with being as skewed Okay. talking the then, imports have to that really improved, and sorry, talked else the question? about that if those complex -- more up before backlog -- tend sites. projects to on that the then want module

start it's you just impacted. all, reason have peers it's haven't And are aspects so going. it seems have to not would you move Since broken like been being narrative still disproportionately If the much, the peers impacted? Is kick disproportionately of back waiting impacted there kind in supply mean, kind down. those at Or wings the now. some gear be the and but like in improved interconnect guys has I that able module that should it a of to those would of feels otherwise, queue. been is those why on so financing and --

modules So if it's you not is the landing impact guys and in interconnects? around how the disproportionate and financing

Patrick Cook

module the to talk I'll So piece.

We with how of inherently they developers And But in. sites and modules if are right, engage they're come are out kind more Donovan, construction XP seeing about building ultimately ultimately EPCs, schedule. their you're think you the complex.

EPC of QX these are XP schedules kind they still and So forecasted XXXX still based set are the continuing XXXX. being in go mid XXX-megawatt availability and on some into sites, get of as QX, XXXX XXX- ultimately, sites. and to sites to done late of just And those the build of a to lot to of XP some are

Bill Michalek

pushout have scheduled in forward renegotiated in to general, panels, the that we've have with And Around talked last They've they are didn't from financing, we XP, same of were permitting, the projects around they of general that, those have of quarter things renegotiating seeing move mean modules. seen PPAs. if a project, sides that we a some to things the [indiscernible] seen labor, I backlog. now. but number about

scheduled late project go have So go X going it's would that a in months maybe to and 'XX. now 'XX to been ago,

so that thing that's the add I'd But for there. the schedule that's And new particular project. only other

Chandrasekhar Sadasivam

in were we really, lot April-May time lot The organization what is our But a and Shaker. Donovan, we portfolio. leadership work improved is I the about repositioning business cost a we business the competitive Bill really, of the product and you is getting years. our I were sorry, was had done leaner, that with optimistic in on thank the that we've Donovan, And trouble work We done have question with frame, the also last the positioning. And question. in the very and X address talked remarks structure again, and can the not for essentially, filled change. -- has we've the this have we gaps prepared the in And the happening POs. audio, the the I'm outlook.

opportunity and organization, forecast coordinated our tackling just and the and faster In details, with better it opportunities the in between gaps the was closing basic revenue PO how we and issues. interaction, customer decision-making into and getting attainment. for we to there's started execution lot really and found particular, so found improvement Board product of increasing across the blocking portfolio So linkage accelerate a

reason the the And for that's hopefully, question. answers your So change. that

Donovan Schafer

one Okay. I in last then more can credit That get if And just -- on question one is helpful. last charge. the

not So for customer. or your the that provided? it? tied Or customer, don't guys the and case is and it they're of case they idea the the share there they with and withholding way one they $X where around is that actually of $X they're services view just disputing -- is in monies provision a amount or Or a the where think -- just paying there's owed have -- they clarify, agreement don't and understanding credit actually share some you they million? don't or Can total reason have you goods and to for is what million your

Cathy Behnen

the thanks dispute. of understands to the the ability No, for The and there's Donovan, issue. question. no strictly it's pay customer collectibility value receivable,

Operator

the line from Our of next Amit Wainwright. with Dayal question comes H.C.

Amit Dayal

Most was and that are higher, there of impacting my is But I a little outlook? near-term that but if know just project canceled? addressed. results have any bit you questions have backlog had wondering are already cancellations been projects been any I

Patrick Cook

we the No, haven't seen -- thanks for question.

were haven't just seen to pushed any projects We been right. that have that canceled, -- the

Amit Dayal

think quarter. gave And this Okay. what you in missed see like? I non-UFLPA you it it. a Maybe tell us Could that number orders, time. Understood. I don't number looks last I guys

Patrick Cook

projects all non-UFLPA of the those this of to not signed panels. I quarter, UFLPA the up and have terms we that for mean all are of the in awards Yes. subject

Amit Dayal

Okay.

say, XXXX this of bounce at you not have the Or to relative do to do could year-end that us sequential XXXX, outlook? kind potentially visibility you any give through improvements kind pretty you point you a have given outlook 'XX? see back, positive think the after Q So of for

Bill Michalek

QX. QX -- XXXX. guided that haven't to had expect QX in the we call we you're last indicated that we beyond But in ramp the seeing now here start start in ramp So for and now

contribute So example QX one as Patrick that's XXX-megawatt project quarter. these is called that's in projects, going here particularly into and to the that ramp almost next out, one

that an you give on ramp indication we'd how about of to to kind of -- those things last that quarter. we projects start talked expect the So

Patrick Cook

to of recurring thing once and kind piggyback flowing, nearly you load if And of at getting I kind of those think the project revenue. you're off look that base a is, gigawatt XXX-megawatt project, projects that a one start

having So this the start. project stop and like isn't

a over stretch linear revenue So there's to going progression of kind multiple of that's quarters.

of projects start. given to us further gives projects. that on So are how it's these then get visibility ultimately in of delivering, it that those that we're way revenue larger now that are going any some projects we've adding got a kind much to just the along from And going new ultimately quarter

of converting finding plus our projects and current into and are the from several in large So QX that projects these and new conjunction at end ramping award with XXXX. contract in others -- X QX

Amit Dayal

Right.

in where a situation see So all we through next could potentially quarters X we year-over-year be year? improvements

Bill Michalek

We definitely good growth sure. for definitely about in and our improvement prospects revenue growth and feel margin XXXX

Amit Dayal

one, overall number backlog last backlog the XP product in one Just much offering, that of how or the much backlog for how number?

Patrick Cook

bring awards, XXXX, late the imports market of that it until majority didn't of trackers the mean in we tracker. around pioneer the QX. X that brought the contracting XP we ties The of And and kind the and look if backlog is the our imports X been since to you of to have I of XXXX majority fact at really --

And XP XP. have so that that build backlog to the we haven't with we had time

to a of of our building through activity expect being into Now we of lot quarters. are QX our And offered lot out to on around start a and it. and backlog as constructability projects, we Pioneer kind of the seeing bid XP benefits of the coming get

Operator

Molchanov comes from line the of Our Associates. next Raymond Pavel with James & question

Pavel Molchanov

a maybe since started or on get I is operating? it we Can X venture, update joint manufacturing think which quarter now an your

Bill Michalek

on Yes, one. start that I'll

I to the QX equipment quarter XXXX. installed doing runs. and facility Patrick, and add. in current the here larger We've in we've have get revenue anything some you all qualification been And is So got know don't in if

Pavel Molchanov

there... Is

Patrick Cook

go Pavel, Sorry, ahead.

Pavel Molchanov

ahead. No, please. Go

Patrick Cook

look running. that XXXX, I that utilizing We've that forefront up the currently. the going if projects projects in through to -- and you I delivery And now. got it with the mean, is right production quotations, are is bids would kind new at that of we'll market when at Bill the or new QX say of right. be going we're used facility that into in in facility shipment of in anticipation facility. And or is some is No,

Pavel Molchanov

Right. Is in uplift fully there -- an once that are margin gross anticipating is up? ramped facility that you is that

Bill Michalek

So Cathy, our benefit at point, -- XXx is into guidance. you any this we're making current not anything from else there the to? in want to add

Cathy Behnen

-- margin, we expect to well. will continued see we're No, facility that and do in improvement that support our as

Pavel Molchanov

not you're QX. user know cash guidance sort being I whole, generator? a you XXXX of on But formal zoom beyond Okay. yet cash a anticipate or do giving as you a as out

Cathy Behnen

Well, crossover we're see profitability XXXX. a we into moving in --

cash be in to expect XXXX. we So generating

Operator

Windham next the from Instructions] Our [Operator of with UBS. comes Jon question line

Jonathan Windham

which I the parameters frame guess time quickly. a candidates? and external And of expect CEO the from replacements? versus commentary of Any investors one, the internal what first CFO just replacements permanent status should the it and permanent Board sort on of on

Chandrasekhar Sadasivam

is this for you Shaker. the Jon, question. Thank

we get done, CEO. over finding things to not do because So good involved our there we the Board. And an that us is details need CEO team Sasan have the and succession to said, last we in need the from to want going a trying X been urgency primarily feel take a on. into is to for of rush we best understand like oversight time with and which to And and Board, with with company the what's take I months we the Patrick, Cathy forward now,

have well. those And be reasons, deliberate company will the we so to for sure both positioned very we make

operational has he going have a guided got lot XXXX. and depth. act of We a have as we tremendous team XXXX with a to be a that facilitator similar by also played Board the to at role a is amount phase going -- Ahmad They're depth. and of between now operational

place. the want our think we CEO I getting have, we that take the So in time good in to and feel about team we

to answers Cathy a to decide CFO, role. terms the of In very Hopefully, question. And external forward accomplished internal, that replacement, have going that we person is on take months. in Cathy or either subsequent a will your

Jonathan Windham

a topic. an same Is And a $X.X opportunity healthy the taking think, Appreciate on skepticism like XXx to around any then backlog. specifically as for company of did. completely separate amount thought It's investors. more revenue. that there's, has a essentially competitor Yes, the the the billion with it. Is there mind the Obviously, a size I about of just just from backlog, of a peace of Again, the in of bit that provide stopped projects? provide specific portion there specific backlog anything comfortability transparency, disclosing annual little think would what's a lot projects? I

thoughts and on that, really questions. I appreciate your Just taking the

Bill Michalek

or that on is have We question something that we work doing we're gotten that something the looking put actually in over for actually in We've But few do we that it can announced, something next out definitely but months some did -- changes recently that we some and that. mentioned either call. our the that's it's didn't next present this given to quarter

Operator

Our the Julien line of Bank next America. with Dumoulin-Smith of question from comes

Unknown Analyst

transparency. I the being faster cycle, UFLTA guess, of seeing know ramp just Maybe and follow-on a some question you backlog a than it the a the talked as, Alex guess, that actually sort Julien. as bit little of the but on opportunity, shorter also for guys international on orders, of I or makeup you're about frame I'll to non-UFLTA more It's stuff in provide to I U.S. Maribel the sort obviously of

the are little still still piece where U.S. just the status the more rate being? little bit the muted kind obviously of And bit as a challenged. things far but the seeing same exist? your you a high, of Just on thing curious, Clearly of curious what's internationally where that as look slippages, depending I environment versus is mean,

Patrick Cook

that question. you of if we've for of I we're in the look you look and largest kind had longest seeing, in we financing geographies which Yes. regions challenges. and the sustained the I the think obviously, That's I there's interconnection the think thank presence the is where mean I -- portion. some certainly, if new mean, you operate, U.S.

haven't U.S. of into that we've seen but extent it in ultimately to markets. the it early our those function that's seen We entrants a of the kind

haven't So for Italy, places or projects there's XXX-, years, X traditionally of use and sub-XXX megawatts. working X land. of Most them you're in are like lot not where where been a XXX-megawatt free in the we large projects Spain on XXX-,

take we've exacerbated well. as then interconnection Australia, a they more ultimately if But So seen. But that here little faster. look bit at those you move in it's have places forward the PO U.S. like the issues

Unknown Analyst

you mean, sense. guys Makes contemplated clearly, QX it. some think, I moving least. at I recovery forward, Got When guess, for

how more what's beyond targeting point, about directly? guys, for think the just at need you of your strategy look of the started looks we sort have -- and Patrick, I reposition It to is here? converting the U.S. the what would space. U.S. point you base little international flight know I higher attractive XP? win have from a seems as it company of backlog? to of there's sort do of a doing it, I the to to shifted sort a of as a on certain guys existing Again, hey, of growth both commercial frame curious, obviously, bit sort -- XP more the that I EPCs than There's to margin of off Is of broaden I'm us sort you're a or guess, also that the mean, How think more base, not. quality is and call you you a to outside the players bit business or to don't interesting in it this little

Patrick Cook

us. the and that's top-tier very are a we're certainly, of to goals really We're pioneer and offer. nice and those EPC that's the excited XP about Yes. have ultimately, accounts. the mean one project is ones site that and the sit market. EPCs we're top we and XP I down design a that are a great of for developer. agnostic to part U.S. excited And or the based we're obviously, with XP a able about And that been getting the And No, business, with I on developers think, the think penetrated I maximize really it's those question. differentiator the EPCs majority between

to a footprint internationally projects. I That's for focus grow what well. continuing us. in double Continuing U.S. the mean, win as -- that's to we're down to big expand, our continue But

about So got penetrated. developed the our and of We how the delivering then won kind same strategy out fact a we awards bigger and if the you've -- relatively and in and grow there, thing win for plan dozen you've those kind we Australia, we've done and We U.S., revenue XXXX. there. in over in baseload and of on X recently ground well and boots where Italy, on pattern get you think you several a Spain did projects projects we're early they

for a So that a in and foothold proof base gives Europe us point us a to stronger build around.

and amongst commonality in as And well. delivered And in able to mentioned, we value which that expand by his remarks. in we've and projects achieve hold echoed not markets grow the where constructability participate markets where expansion. that's ultimately expect the market true, and continue We're as like to then the for in also, of opening Africa, aren't are profitable Bill large Shaker several growth. comments that that continuing margin made those looking allows proposition to to to And quality markets our it's South

Operator

queue. questions call. your conference Thank this Ladies and I'm showing you concludes in today's no for the gentlemen, participation. further

You may now a wonderful day. Everyone, disconnect. have

FTC Solar (FTCI) 8 Nov 232023 Q3 Earnings call transcript