NRGV - Earnings call transcript Q2 2022 | Energy Vault Holdings, Inc.

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Operator

Ladies and gentlemen, good morning, and welcome to the Energy Vault Q2 FY '22 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator instructions] As a reminder, this conference is being recorded. I will now turn the call over to Mr. Officer. Marketing Chief Alexander, Laurence Please go ahead.

Laurence Alexander

good Thank Vault's welcome Energy and Quarter you, XXXX and Second Earnings to afternoon, Conference Call.

As and a be Vault's This call earnings this our being page Energy on will recorded. now Relations today available a call later website. Investor of is replay reminder, of the release

These release, only cause caution as in any subject to referring contain call everyone XX-Q forward-looking of forward-looking of publicly and that are in way, We filing forward-looking Please their materially actual object analysis this disconnect be you could from now. differ are that statements, We any except factors. in results list statements. future and law. obligation to note results those risks from forward-looking by and may of differ events our Energy uncertainties. any undertake to to If anticipated variety our predictions update guided due please Vault no Energy for statements revise by that Vault’s required or earnings the a to statements or to factors

please to addition, disclaimer GAAP Safe that In for release non-GAAP discussing presenting including our reconciliation more measures. and in measures earnings the financial presented Harbor Please information. details we’ll certain non-GAAP comparable and a note refer be to

turn Hitchcock, to the Interim like Chief is me and At call Robert David time, today Officer, Robert call Piconi. I'd and our Joining Chief Financial on Piconi, over our Executive Chairman this to Officer. the

Robert Piconi

line today representing overview the the Chief awards our the second may I hour Officer this morning Interim to results will project projects. walk our call. across from you, Lawrence, David want release come an have quarter, quarter to and of remarks Financial announced seen XXXX X you new my of thank gigawatt then planned execute welcome you continue financial in highlights Hitchcock, in including that we for approximately open recently results regional the our we Great, well progress and us everyone priority key XXXX detail originally questions. start conference with up of We our the setting we while XXXX. before through ourselves more into tremendous strong the for to XXXX, second deployment with what on the that as for China we half made U.S., if achieved momentum the through provide in going financial Australia quarter second

powered Let in with by partnership initial to REXXX joined their XX green multi commencement of the groundbreaking of and Korea the portfolio refineries of now all this XXXX in announced and frame to and the one The electronics, power a to Zinc build-up, me parallel based Energy, hour the All the renewable foundation announced in We're the well plans are pilings Atlas Holdings month. XX% through gravity of commitments previously of first megawatt, construction Sun after zinc. recently Epuron given brick civil Australia. of permitting projects and May fixed storage stated strategy duration and subsidiary become of Energy both sister hours with some X With we XXXX. More megawatt building XXXX, Ark focus solar Corporation proceed Metals storage owned on now the have and hydrogen future Korea to feasibility a planned. shifts with of acquisition supporting China, energy Australia, Metals out activities friendly coming Queensland, one Australia. initial producers the a progressed and the November, in has composite its and shutdown announced in world gigawatt Sun solution, XXX group. for to company We XXXX, the In site approximately being site green support Australia, start long by our wholly become production in strategic to Shanghai. planning Ark produce largest North gigawatts which announced summer Zinc of of delays Over its Australian projects the foundation, related the continues completing of to works of COVID the as wind locally. renewables underway in all in short

hour final completion providing Energy the I utilities will the provide upon in and system year. our system directly and in centers to energy startup, Vault more Energy We development support companies the activities commissioning electronic XXX expect QX, Jiangsu mechanical to in want on as into enterprise Energy software with are commissioning association EIPC the the power of also Committee China's next owned and and Investment engaged collaboration Atlas based bit investment overall color on in with quarter resiliency operation. EVx processes platform. mechanical discussions full top-X local year completion, decarbonization the power megawatt this by China and of project fourth in site, with beginning system China has support referred Vault Professional state their well. to to as in a

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now solutions long-term enable agnostic customers our generation enables platform our software storage their to to the the duration a power renewable while offering software technology energy EVS energy evolution to proofing across percentage energy management to their longer with underlying storage same Our and platform technologies. grow storage diverse as platforms, as extends both storage short utilize generation future continues of mix. and duration

X Texas W Southern energy Wellhead utility. in XXX megawatt resource with announcing a XXX producer. and power a to the the U.S. market project finally, California hour Power ancillary and with megawatt project to services awards provide leading hour Western are large megawatt XXX in And a to project with California. adequacy A in CAISO We public and market independent A ERCOT hour today. Electric project

The in in will is Wellhead Through a our the storage deploy shortly hour of Southern Edison enhanced storage with the California. The these grid will a reliability battery Stanton Storage Electric systems Wellhead’s XX.X megawatt Reliability will Orange in project in of County be energy Energy All be team, provide Center system territory. XXX energy at megawatt energy Southern awards largest Stanton, Southern and California. project with customer we resources EVS announcements. to California followed storage California, System one Energy improved

on I platform, storage for contracts want the projects technology new strategy, provide Engineer software Akshay All and based to intense Chief the our were out speed of execution for most EVS design customers with EVS energy call and to awards and cost-effective energy coupled system and and the the These customer flexible EVS of solutions. an proprietary innovation optimal Ladwa, project to his our agnostic today. with dispatching. successful agility at economic a management these support focus thanks team our development in special to announced their of reflect

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full the at expecting as EBITDA in $XXX look adjusted of and gravity to a we expect million starts to EVS $X for million this newly year $XX million currently If We second the in QX well year. awarded $XX million, in half range revenue project guidance, project range of XXXX starts minus year. a plus of reflecting you are as

early XXXX look approximately as we both and of expecting million earlier, awarded and total at referenced our China original revenue a across XXXX for investment projects and plan, Gravity the underway, as the development for in activity and line XXXX years. aggregate EVS we in are $XXX As the well with

trajectory. will that benefit see We Vault's regulatory business many continue Energy positive trends to macro

support excited of are approval that and weekend Senate greatly the strategy and and of energy the growth customers. will the We Inflation for benefit this to of Act and inclusion ITC, the initiatives that about clean the the of our our Reduction standalone announcement continue believe past storage,

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working execute continue on establish infrastructure globally. we critical to the good Additionally, and source in we materials our make chain of build supplier our to global projects progress and out continue and as initial and capabilities supply key relationships other qualify

the Energy source shareholders eliminating our long-term regulatory of and shares application to with key gravity outstanding strategy, equal the within XX% over for alignment as on XX% executive accelerated I that upon Vault’s extending our XX we many closing IPO of while are here to XXXX, region in the challenges XXXX. agreements an we solution at of other basis is the awards lockup and action and officers X% maximizing job the up the incentives our approximately and Board Energy XXX% the and of also combination impacting a the locally to of facing the of our that team of equity stored industry solution held February in This For content June creation. underlying EVx underscores in for some want vested have who our in highlight providers the Vault. shares equity that awards, and the vision of local implemented a belief building business number the

We with new To results management exciting platform. capital are to laser EVS with growth. I'm to allocation profitable up, the we customers progress team commercial new shareholder all wrap a tuned more have announcements on creating term and across we for long for approach focused the value our are unlock and discipline made maintaining and driven pleased ensure very gravity come. our Stay capabilities all

the of call for to Hitchcock, continents. projects to cover in Chief continue Financial financial will over our Vault's turn Energy be detail. multi-gigawatt engaged more Interim I David we now advanced As Officer results to X in across actively hours discussions David?

David Hitchcock

Thanks, hour Relative Rudong, quarter the support financial in our second XXXX, in was million the reflecting megawatt to project to XXX Rob. for results quarter construction of support $X services revenue China. the

this million we've gross million Total $XX.X reported versus $X.X support million roughly gross in the were months booked million million revenue, $X.X QX, was QX, XXXX. through million QX $XX.X and by reported expenses Stock compensation profit down QX, based year. million. services of with Agreement of of in QX revenue $XX.X quarter by the License Second construction X operating XX.X the $X.X flat was in in driven driven Atlas profit

were $X.X year. Excluding stock-based of up X.X million versus costs were in the compared $X.X QX compensation, for operating million of and quarter. Sales first to marketing the expenses quarter million XXXX this second

$XXX,XXX marketing to and of for costs sales compensation stock-based Excluding year. down XXXX were the IPO. driven to million QX this by marketing Research in compared million a expenses development decrease related were in QX versus and costs of $X.X quarter the $X.X second

Excluding $XXX,XXX increased in $X.X to stock-based second of increase [testbed] by activities. the were $XX.X this for year. up versus compensation, to quarter in an driven R&D G&A compared million million QX QX expenses EVx

the $XX.X operations we lower heads million $X.X million the negative recorded QX up million compared revenue increase to growth expand we stock-based In March year, for months, loss line licensing of execute the as and and out invest revenue on headcount public operating team in million versus a the continue Excluding total, G&A a to was build income and as as we in fees that up X costs. of business our compensation, compensation, $X.X Through XXXX a Operating by expect of $XX QX XX driven basis, across XX.X sequential quarter with versus primarily was as we company, of XXX we XX% plan, driven with the and business. was in company. positive quarter ended overall for cash this recruiting professional the QX. deliver our million. the our by second to margin XX In customers or from a will expenses globally further to our and continue personnel

$XX.X adjusted negative of quarter $XX.X positive in this was compared EBITDA Second a million XXXX a QX to million year.

warrants. compensation the non-recurring to basis, added earnings million release change non-cash key million EBITDA this year-to-date we EBITDA. and include filed which in a relating stock-based in a positive On our private to our back that are value X.X net is reflecting $XX The XX-Q of of million. from we liability public adjusted and income or Our the $XX.X the bridge fair morning a adjusted gain warrant items

the of on offset positioned balance had As exercise in continue $XXX cash warrants XXXX, to progress which cash cash us sheet, XX June from the we cash in to objectives operations, beyond. partially by and million equivalents $XX approximately we leaving our of growth and well the XXXX towards of In quarter. QX, in million was used

June XXXX, to warrants million the in be will X.X as QX, public warrants longer placed I'm still outstanding now of XX as turn XXXX, Finally, private over the call no instruments. of X.X redeemed marking we of these I'll outstanding. Rob. report We the back million August X, starting we of that a have

Robert Piconi

our I goals this David. X. and by earlier XXXX infrastructure to from now the the of has are in hope factors making deliver Again, with and half important side and the most how commercial pleased year we've of very the We're and that a of half team what Thanks, growth to made with first the well which the the it. reviewed through sense out of above you gains substantial requisite platform progress am a I driven get second we building advancing with team positioned discussed

that that this the well new and fundamental to helped Board, through past as evolution our technology energy maintain markets Strategic as our coincident to First, also in customers and Advisory and This first XXXX. largest out platform in us its note focus for focused investors this validation has our of X been the customers highest session regional scale our customers EVx are guide who strong and with playing and company XXXX. countries renewables active that's investors, the first sector, megawatt at proved Strategic role the Switzerland customer energy to customer growth to of month listening back guide storage. we business. customers in in commercial the system from which on has company in held helping I'll and the the the keep served helped and influence support and focus some in our announced and July on

project starts evidenced long short Second, projects. energy gigawatt and energy storage can of medium portfolio day we our as storage as awards multi durations passion gigawatt across development making ignoring execution, questions. both without one across storage world project noise. that Announcing a duration on largest company companies customer and another something of unmatched mission the every operator, and recent that serving the and storage accomplish a needs with in in And unique now relentless announcements, storage Australia the X technology decarbonization, most announcements and focus and EVx and hour the who not are of our we're for no of serve ready foundation people, from by a a is hour dedication for customers all while importantly, X totaling energy share various that other With of our first projects comes gravity markets award our third finally, energy customers.

Operator

Joseph is Osha line question first from Our Instructions] of [Operator Guggenheim from the Partners.

Joseph Osha

the have a all announcements, on I questions. couple of compliments My

rough integration for if of wondering so, First us the might gigawatt announced? could was all And maybe these hour contracted I what announced, you software plus wins are as bulk sense to software? looking energy hardware like if you you once solution they at just just some that look revenue just that give

Robert Piconi

to speak great again. Joe, it's

hardware we're that is Coast addition are answer first you long-term To in as initial both, projects integration integration include, agreements here, East to okay? those New also software so We yes, your They'll that implemented. and would hardware software the on time. question, expect, in include the service gets York and

X Secondly, projects the so relative revenue those today. million referenced specific three to contracts, or we in across something $XXX that can you of of those expect range

Joseph Osha

you able so is to speak the are able that to Okay. that's that, And some obviously for is revenue you're about is, to to able speak that, able where you speak, contracted speak juice software are that to talk -- to? to? you're something because something of

Robert Piconi

with be into Joe, more revenue, components We're we giving as going more so to specific to on announcements, the that get then share we'll you. able updates be customer that software

Joseph Osha

Okay.

the The then revenue ground coming this a is I that million of year target to remainder so from timing coming sort Rudong second you're and additional there. the sounds first got this on you we the forth. that question of from? year an And the XXX from put remainder Should think looking we -- of China, --, like at the in looking out Or think just about XX at a see, should project? revenue EVS where breaking you've monetization coming that about remainder

Robert Piconi

a of from of combination gravity the particular come on side announced, to battery on we the in some going it's in also the and announced our projects Yes, X starts of that awards QX.

that'll So year. can those for there. There you trickle the of expect And IP from to be amounts the continue -- also would revenue of license. remaining rest in the the what sort that's some for initial rack additional

Joseph Osha

Okay. that help much referred what the and it year us there? to to have in target are just so your revenue to the side. for XXX how To you like question build that looks for it next now quite given is reference million on understand XXX And some be able may up extent you that that might $XXX sense of the I me although then year or million last something, to think previous next ABS

Robert Piconi

both in year. next pretty part of slight those reflects, mid into as look the number is project today, some into Yes, a so XXXX CODs essentially given with XXXX we of you terms from quick up XXXX, well two the and have the project awards, everything at And look, years, essentially, of ramp ‘XX. first our if shift that we announced see of stated,

put us out that gives a there. so that of revenue And confidence we the lot relative to

impact near-term then that done well in the terms deals next advanced we we closure In our see on fairly as of addition, would on that discussions have other year. getting projects in

range there. essentially revenue So that's led what to

Joseph Osha

and Okay. under, But what quite maybe plus million -- just, will XXX got to this help revenue you if that's to at maybe [indiscernible]. extent that's this another going You're million, you then you Atlas, extraordinary, of Can question. from away -- you sort I'll this look because us XX go year XX after right? can

just I'm you us can build-up a, level a wondering So next if year? is just help the at that of what understand number for high maybe very

Robert Piconi

Sure. I those a said, XXX million Well, as those we plus of just EVS additional from some have projects.

We also development have some on lot gravity about and projects the our little underway, we're and as activity that's in spent discussions a there. some across involved and going you regions. customer on talking I the can main a And bit imagine, China, time of China

So government about. put China's there's and locally course get XXXX there's there a out lot targets they're XXXX, by that, removals deployed to serious of really support of

markets and so are opportunity local in well. partners of And listened a there strength focused we our lot those provided, bit you really color if see I there on in as a the

good is lightly. very that hour deals, just something I'd discussions it Joe, the So have get with deals. These say -- we there not a as take away deals aren't of that are hundred awards, as is size And that both numbers that we you large sight thing that's well as the of megawatt of I we're hopefully pretty in a but what take hours something have don't It imagine to that's on a multi having relative revenue the line or we customers. of ramp lost announcing as -- you these again, XX-megawatt one is, XX- of on people. you, of sense we you

utility projects the gravity, of of but focus okay, the massive look focusing industrial for focus a you lot projects, segment. the on we're that's too, large when So on at on, size we scale,

time deals but So and I you right? of think of a there's of our loved there. get for got earlier of size facing, some these And on not saw focused takes and focus, things, a year. things getting customers deals I get to get contracted have right. would've really take lot quarter to complexity to It are We smaller to done, time so that a this done scale deals it that on matter we're a these done. lot lot

to ensuring and of set us lot got they as architecture it and right that. a can operate teams have of the so on time our reliability spend time get up with our technical customers working right safety teams, that You with lot well and spend everything for And customers effectively. a

anyway, on share that's this more So, be information of our light things as we hopefully as color I'd next some have and the in point. bookings awards to as think at into give that get speaking I and we'll will we November, going you and shed again course, as quarter, on we're progress, look And far more project to that at XXXX.

Operator

from is question Next Stifel. the line of from Gengaro Stephen

Stephen Gengaro

questions the it is, right on for look guide. going advanced ask more that if in ‘XX at how in year reiterated contracted, of a how big revenue can you tell discussions you it much revenue ramp to sort us things sense just and the cumulative now, is the And one would to is couple expected? be much a I'm your of is me, And kind is X of much Because one we So for and guidance, of sort great general. visibility how revenue there. get since you the get

Robert Piconi

of the in them, the type on And some think interesting about I as of of EVS about those. we the plus that, million of projects, three as about range A think CODs, in I that lot these XXXX as urgently are that's relative recognition, by utilities. needs. them mid we the important California have urgent meaning have think so needed projects Well, what's referenced, two you XXX those announced that new Sure. are can

-- So we're turn battery we're those side, system a tend buying on the factories, not gigawatt quickly, our software. the building obviously battery little that's more you're one integrating obviously, because and deals side, to

longer deals larger periods larger say, those it to over build to we and in that we towards come they're those little They are Energy of longer takes I'd time, tend of turn obviously And have, because So hundreds and quickly a those systems projects. see. projects. the of projects out Gravity millions

about of a this all at there's to mix So I say That's want that. point.

I quarter, have visibility bookings Stephen, think your shed mentioned, to this we we better a question, probably as awards little color more get and will question. and of and into be project to I as quarter, new on on Joe's the next progress able through course

XXXX we think, what finalizing by what even a getting the we felt and about shortlisted just have where this have process. competitive a selected are have underway through where we and awards and been we actually been year halfway nature only comfortable project through we have we're I in saying contract awards something discussion, we of in though

So first a so little our portfolio of for this year. it's here year, the what at mix deployment this year year, feel and are our about dynamic. we is our it's good -- looking But first our next obviously

Stephen Gengaro

Okay, we thanks. with in these And strategy storage how think sort of overall decision? Is lithium sort does and customer it's application? of of profile? the a when an involved, ion, think the the fold I about battery projects company with that is that three that margin And

Robert Piconi

Yes. these decisions. customer all are Well, yes,

they're And our So that's who in we work focus applications, for the and that's diverse. terms pretty is. of what

that going got over of duration that ways many that and us short short some batteries their at they've with at the unique at capacity looking Some to duration and like and have right really we even ensuring relationships some got what duration looking time. at they've to to solve green they've hybrid of needs storage needs have with and shared long systems coming. are between have are example, years be And both for looking they are and to longer things architectures, Steven, hydrogen these hybrid the going they customers for. developed They're needs, trying now -- got solve

needed the in we the new sharing your core now. as form how I started our how getting were to are our question as and manage of with announcing the that to really do say the feedback factor what and this both what's EVx scale So would system on in business Gravity part were of course, interesting a is the of build we at It generation. final side led they software us, the with commercial few from development what ago to clear to us our this we also became -- first to shift to to, around your side customers impact strategy platform. does They years the

So as existing wind, cases solar they fossil think their that into in different about fuel well solutions they're some that multiple as managing as managing. that are storage

customers Ladwa right here So clear us us in vision months evolve to 'XX the my don't awards that ago. I getting software that another announcement here when alone. of the in really that. and the John a we company hour And in November team back announcing of back that's going quickly the led and accelerate the and priority that's know that's Akshay that Jung joining in X was need and gigawatt world and team some to supporting of part with moved it helping project are done has through our them. around to very that about we you think became what our And to play the complexity, XXXX on

So question. that's about say what I'd your

Stephen Gengaro

then million looks ‘XX, of know your co investment had use one updates was years? two and of original, what changed, final there and over that's or so any capital spending XXX sort cash next equity in lot take this, I the a and And like give in one, but guidance in ‘XX I on of just your that original think the

Robert Piconi

Yes.

you David, want on comment think, that? I to

David Hitchcock

Sure.

the a First provide of all, bit I'll year. of rest little this of on clarity

quarter the As cash. prepared said of we million roughly up $XXX with second remarks, the in wrapped

As to we million. we and to $XXX the cash and end $XXX between as initial we use these rest expect projects, with look balance across the million year ramp expect what the cash year of the up we

$XXX evaluate original that looked lot that lot you is as a at were the a initial team plan, this system. project continue there to understand seen that be of that exactly deals that there, And deals at wants one at haven't year could that looking expecting own worked build, go year a the own those to we be on type they want are expected customer of of has but and spending to for point the project, equity-based we're talking CapEx we now, now and no us in front we the make we their we're year. ago, But there's in where that that space. most need to CapEx when of through now million time. right We business sure going really that as a of projection the there Secondly, to was wants that in to

light CapEx our next to on one are going our be shed rest probably year. -- which CapEx relatively can across the So project, that from quarter by the CapEx some of aside we maybe the needs light view,

Robert Piconi

and the we to these, have, want of own and, the one to I limited light XXX us just that's of this that think CapEx that's we And important just very general. emphasize of you in allows cash to, something, quarter, we're our want own David with they burn. projects, had saw us -- in cash the very customers And for said, to and business we Yes. as model have these million

and net I year debt, million, of the and end with the think into course. cash a X of strong no

Operator

is Cowen. of Our Boyes the Thomas next from from question line

Thomas Boyes

I had a couple.

initial given China, construction as put from in something expectations or all facilities around I build when progress are months could still you to just fair XX the if it a was changed what about was talk out at commissioning wondering your that First, your, like and you expectation?

Robert Piconi

Yes.

first of in for that completion hour think, the system. expecting XXX that time megawatt now now I mechanical I said, we think QX first we're a

had. with even So well are that really they the lockdown Shanghai progressing they

next up we going coming be ground. as over piles to have XXXX out mentioned the of ground starting and are month and foundations the the So they in now hour are

the mentioned, of So I core on color color we're progress in bit seen what not and are of activities on technology technologies there. regulatory new there the the as across side, implementation of and as that development utility some of the own groups well supporting we -- but really storage project, gave with some stretch the only that a Thomas, happy the the quite there, as some state development entities we've on

to the and to markets is on be it's the China much So putting are there the shift ground emphasis floor renewables. developing more on storage great as

are as we I get more there be, anyway, so remarks, involved everything as opening into mentioned to well, in we going So, the commissioning moving we're activity. my

a a entity opening foreign that gives wholly us lot more owned are We flexibility. there just

work local with China I Atlas, sense. more there support Tianying, leverage And we think, China, the broadly, to can it support where in renewable. markets where other regional markets makes

Thomas Boyes

for construction kind in at you is but of have construction you had learnings US to inflationary costs pressures there, or that the where you as there what think build just cost over of could of that well happening translate a as is off it's Maybe going time Australia? and at controlling that that builds since far

Robert Piconi

our local well That XXX%. great built being and has full having there this developed supply and us obviously EVx scale question, is there, a for so played really system chain using we're first in a

So a all supply we're the all materials, things. different learning XXX% local implementing we're chain power there. And the electronics for few a that

architectures, in things system supply seeing But You we're mentioned, implementing the cost local China electronics, reduction there's we're addition, of away. and the material that's is helpful the newest power cost core with with and things side on what this chain. and very on of we're cost new right some the been doing the one

the So gate. right out of

perspective system, -- we design are and of our side, constructability. out lifting we of at into looking example, looking looking foundation the a look like piling power at of of mechanisms the activity the some our So the for activity out infrastructure for and and at from the and things roadmap electronic how eliminating at that our

be optimization mention construct system how the of So you this all we're Australia. looking around into we first those and implementing system at that rightfully then learning we'll things

sure, into we think a a news have of mean, XX megawatt very hours. first system, going get X lot EVx it's I here it's hour and interesting a a be the I the commissioning we're small not system. sequencing the a So first megawatt, good a system, I'm that XXX is to it's large as of learnings. it's

deployments region all those of our looking are evolving Australia, global in at to So in into going for are perspective. the a example, the very for come US. going I large But learnings, market translate in EVx all world, and the other local from to learnings of think all including a we're over what

Thomas Boyes

could, more back If one the jump I'll in I sneak queue. in

there's that what probably have Just insight give you your seeing duration just for that's where the longer as it far it's duration? could this you still My assumption as pipeline next systems to period, the range, but up? call into kind mostly kind that in relates maybe of you're X-to-X-hour if was I are if XX-month wondering true opportunities of over that set some guidance or in in is

Robert Piconi

and look The Yes. market of a uniquely short So in bulk focused this probably we're given market more can is question. continues range. and the you playing the data question, across of the market right? interesting. longer to really We can It's answer all X-to-X-hour duration, at the that be interesting in

includes green dark of our are producers that's say of least have base, largest require Group, think energy of in like BHP out customers, one this lot Zinc groups up When hydrogen Korea remember which strategic at types storage. the being fuels, of that, are and the us the example, and DG strategy look saying that these to a mean, hydrogen. of Aramco. Australia, of about investors to and what while investors with production customer That's announced stated players making industrial storage that coincident the I'd of at Saudi to for XX-hour I green we and a going has Now a we the fundamentals X typically with longer XX, transition going IFRS duration you

water electrolyzer are duration a and that you driving are of where process hydrogen. an making because splitting you electrolyte electrolysis You green with longer need

of a were is long There of that just game. is cost, of development. and getting scalable demonstration technology. really is low the ahead of and of a plays a way duration that's first process solutions expensive that's And because have to comes XX and to have in to grade Gravity to going get that industrial on new side, lot too hours, lot There something there not are So our a you better the X of it's where strong. because in lot to really, unit. storage We not

with for some of the first Switzerland went diligence groups in planned, working system the working saw trip are in in Switzerland that's prove and longer that world achieving that, mentioned progression we to I market diligence and largest that the this the led in energy as the we to at in all what technology X-megawatt in tech scale, storage. our patient to think led that had efficiency their right just the I case getting that round XXXX from saw needs and on to we the the to there,

sustainable within bit that customers and side, say, said, I'll a for work of we mix specific industrial given with players example, fuel. also making, little aviation the our a on that So,

getting they are those longer-term and a over out, very of large things in I mean further So projects, type that I scale. are years. while little developed bit multiple these think are They're

same industrial ramp, great us going type and are platform. got play years the to with solutions it's of see that the we longer and duration going. our shorter to we in have get develop new segment customers duration and a is, we for that as platform up our coming So software software help more And implement news on that the ability and to portfolio be our more going in with the

Operator

comes question Goldman next of Brian line from Lee Our the from Sachs.

Brian Lee

market. more just have I It's I about high-level color of visionary the pieces. you and of and of here. I questions, and model appreciate really thoughts all But couple the what types and all have are a guys sort nuts momentum around I as here moving doing all think of the the kind kind you guess, bolts the

others on business. and the your off, these piece of quite types of technology. players EVx not terms gravity margins battery wins see the and maintaining storage single impressive on software deployments in we project gross storage. the it's the timing, not fluence like these So digit first And this maybe barely of scale but It's all margins,

make is storage first simple opportunity battery guess of That’s systems. what the question. my of where a a you have $XXX million a company revenue selling are $XXX kind question what make on being you you're going I similar on versus, wise ups. that So of million And couple deployment follow I to might margin for EVx then

Robert Piconi

so in did because and lot Sure. at provided I color and for me of the is limitations example, types I for in they necessarily. have the on wouldn't solving they Well, at. the for on same, And look the us a as, energy of this of projects, on customers of need the need, also, fluence bucket complex little projects space, battery side, look, are put example, bit pretty market exist problem than for for The that example a looking more they density. me as we're for creative let let in where us do solutions types the gravity, I

you puts some that So might the can't that architectures. out of expect players sort support of that certain of they if equation

QX better think in through a XX-year obviously and or able project an we'll some new and announcing little And that. the just X- we Brian, you our a in because doing hybrid announced be it's in projects, I indication place side obviously are executing technology, here in QX that, into software is these XXXX. think, be on more awards. to of combination into on not player going of starting space, on able we're are cases give expectation that and these We quarter. also me to to obviously, on these that a things our And on we're for beginning represent in that We're early details then, post to with -- architectures here, putting be share, that service we'll give, we've -- I little

Brian Lee

enough. just you into slippage initial since simple are a feeding is maybe financial the question model Okay, ‘XX. benchmarking I ‘XX mean, fair better

seems So mix prior say ‘XX the targeting. well? with about the playing as to revenue your model what in this is margins was line financial ‘XX, which Would same out given aggregate you shift be

Robert Piconi

of going that on we're the I a have an to have mix seeing and on we portfolio, mix what Well, on little think, is what now the in historically side plan things. we've within because had even before, I'd different is what the Sure. say in ramp on battery gravity both up impact, based our business

be China. have a you've, nice had have we We and had to We side, in the on were out always the Brian, doing before, the talked as a got have with that. which we ability deal going obviously as I some think pointed we earlier of like some in now as bit Atlas means always technology to a world license the as because particular, we positive things start, gravity places, this some that on little assumed obviously is to we've

a obviously little that earlier larger than we had we was anticipated. So

margin of types our to will helpful things So those be profile. overall

out for areas and with on we the ramp the alone. demand then, think, example, just gravity chain as the deal new, the now on build some I and and of companies EPC supply

give I'll you on. So some I the color think one of things

at got As that going very, you've Anytime to one. they're EPC gravity margins, we speaking all are look companies busy, very build I'm early and something number new now.

be built that a building of for some lot unknown these they're on staff of of a side. be the been integrations for therefore power on electronics constructability a EPC more that the in, things saw shifted us So and on our not contingency side, things to involved part mid built strategy year in and some before, quoting of Therefore, -- meaning of the just lot the in lifting the bit. to example, build companies little a we was having to were we involved systems lot and and and for we the of what what had the on a labor the going have innovation done

to margin rest next new going from I'd the year. we're mix into and taking this of say into perspective, So be this profile and a factoring year

know a than little to at projects. gross this unit EBITDA give here that expecting we didn't XXXX. the we're what as to information new that any impact to slightly a start but we be on there actually on lower adjusted more mix to and going relative out I an quarter, But margin as next believe look we we've had over getting executing this yet I Now economics, provided am the specific guidance guidance, EBITDA, bit of

think be some company our we're a have that's longer first revenue in with deployed mean, And new against in plus, projects. on these be for And systems those projects timeframes every quarter the which solutions as part of here. year. X, actually we hour building a we'll because out. and deployment if the built projects to key also, those for -- plus and know. better that's -- going can So, get that's being that's XX longer Brian I of of megawatt those planned recognizing months And position gravity the into I some as XXX the side are be are you to

I of but give our going exactly three to our just be indications. having clarity, be you absolutely And So, in-depth licensing not going only integration gravity that's those to update across, I'd some sort the areas, to We're mix to and not know EVx batteries. platform. that's say

QX post we and updating to little we're get provide So, that hopefully as going a be granular mix able more to be level

Brian Lee

there's know of ironed the more kind I I to here things directionality. before you specifics. appreciate get reveal out the

What's announcing ‘XX sort getting out, of suppliers contracts battery So COD lithium queue. is battery Maybe forward, last of those schedule? talk you're for I'll today, about ground that's sight storage, kind in these awards I situation may of the your suppliers the great, terms projects and though. have get who the delivery these in again, means the just you one, because to helpful logistically, mean, project back on mid line on you but secured supply? X the the battery moving the are. in pricing real of large Can it

Robert Piconi

last mean, our the imagine the few presence the last the specific a working battery China's us lot just well-known a also own years of I in significant Sure. the what for work to there, result there. you names on announcing time We've can we're a that aren't some provide year, Look, of going us, we as as world of of development players obviously in spending for of the with players we're know done most region.

can, in we of that on and the say would things that that do technology best between development software. are battery some there some leverage the market players to I some doing unique some I well doing as there with integrates the things as think how we are we're as looking So

aren't going to We sense, doing, you me and to about we I That everything that because be as we That For say, a provide isn't customers everything, unit something cool. hope to too. market. we're Brian, economics. all we is that all are how doing never to be innovate at look value And something do innovation they we're just the potentially get about to finding is unit there going in want do economics.

you I for think If to are are quite economic that extract something focus do customers others more effectively and at that premium weight that us, for for going our can the frankly. something there differentiate you marketplace and on really can't, you a to is driving or doing both and cost

Operator

Brothers. question the comes from from Parks Noel Our of line next Tuohy

Noel Parks

the or talk all example, wondered, just on technology material about the to China. are you're side. comments just I bit go you about making further you a about implantation what's construction implementing either in could about back So the way improvements progress for maybe talking some of you maybe thinking whether even as in wise, motion technology projects the

projects? to of you rapid with next So of for as give implementation design just being getting just attention go kind along idea as and then you updated more what's or an the

Robert Piconi

a great Yes, question. it's

start sort with look our It cost me gravity the and of frame if buckets you is. of solution let where So starts gravity. and the with foundation. our the about at And fixed think

you're as you we're a that's if think structure. just what building house, building right, a about So

I with players before, the some engineering. research mentioned that starts are of I leading think So this with element, civil where foundational we but that working in

group, example, build the of them their structures Dr. profiles. as different for across these the dedicated build type year Jose have Andrade and what nature of join engineering company to us, with the ago are we geological Caltech, So we and from doing seismic of because is and of a Chair We civil

at look of a innovate of in chunk you really structure to a a component at can okay? that ways that's get materials, and is cost that, So different we Then rate the alternative looking there building. lot and particular, includes that fixed

at lower labor in that You you analysts. aspect mentioned high, while prefabricated steel, is This constructability like cost how I labor you to a much get places can lot earlier can is market. to one like China other in can of and questions the use from which of how as component ways and concrete very optimize timeframe, of one to automate to the there U.S minimize that It's especially use shrink cost, in that the this of construct the and that component, also you you this do places market, very, especially time

leverage the things of that's system these things optimize There's to and in sections, be to with these itself. around to electronics, at the chunk infrastructure gravity the in lot side, pre-fabricated that second bucket a we're the a case, there motors, of lifting the automated these in address that learning all the drive. play There's other we're that's cost, piece So system looking components, frequency be a ways of out going we building in looking how we're builds. automate have at first systems. And in to for going listing in variable power of inverters, the course, And our China, and if these cost. of on in systems, because example first the it, frames for vertical we innovate example trolley, way using of fixed can to these that provide can

the ton blocks. are vertical large lifting ones right? The XX think are that blocks So composite essentially freight elevators, which metric

the coming differently the drives boxes that gets in where for So frequency at we gear that's architectures to elimination, we're example, down active end favor or innovation work or systems hardware eliminate how the look meaning process variable up front in that another in mechanical of that there, with lifting area we of objects.

For I hardware that as there's a think So think customers. right? CapEx, meaning about

So equation component that. at coming that trying take of volume to reduce out, and hardware to obviously a CapEx cost get and there's

portion there look multi efficiency. megawatt lower XX% cost space, innovation at area of like more So We're in honestly that's from and we'd using look see anywhere that therefore to for XX% going efficiency more plus to motors motors that try a and innovation at of and are terms in as to we that be an to the architecture.

to unit to efficiency. that does trip means costs an as round for out, store, So to take to I of that balancing think, And improve you loss right? we're there improves without every that's return able unit that economics, we're well -- more innovation what material grid. as Because mean? the That that back

hire So in efficiency less there's process. round I trip that loss means

this around So second and electronics around that's what I'd frame. the part say power fixed

built. get to these with mobile that The third masses has do

– There to these are these are them metric XX blocks. per composite system. those composite of So thousands

eliminate concrete. can So you as we the imagine using

aren't in cost, we're is this on blocks, sustainability, our soil. production we as using of solution as focus of composite but as those part concrete So a the using default well

that's available locally. So

like In wind try use And -- wind mining do Green can we ash, We're coal of integration looking that decommissioned at tailings or waste Enel fiberglass, process. addition, going have otherwise and things as that with burned to to Power, we blade the buried. that. where the announced and blades, be to materials from we can do

recycle to trying that. at look we So

I but do cost is, helping here technologies. example, systems to problems in customers can solve to then solution the in trying to to provide, multiple way, at EVS the looking architectures we're be about around that And between question, different suppliers try some I'd those at say that, cost gravity. the that touched hybrid I by customers. on out their to is what mentioned also battery looking something help and the also as are So the had, backup includes way sharing added that And we'll with overall in get things to very Stephen our us execute. for this think Brian the in that That we to areas take a more of last value innovate software provide uniquely complex and about future we

Noel Parks

the and about, the and in talked assign that you to as and scaling requirements. thing to various picture way of one specking And to the all out are construction horizons just I'm projects planning trying

-- be where a anything before or try a for add six as far to as point going whatever plan there dead So, you we're the must lead this drop kind project as innovative start. as far with where not time of the to months it's as

-- you're how you give just these -- timing trying the, of happens? that When a a project? can the to sense advancements integrate So into of

Robert Piconi

the great a way, question. it's balance. a also And by Yeah, it's

deadlines, those that and as CODs to to hitting our numbers. relative they obviously have -- have we we they So, sign those respect, same contracts, have have customers constraints

in to started. So US, that the our for implementing we that like what mean? example, we're projects places does have get For

materials be first cost tested conservative have start deployments, and sure a means you reduction. to might yet the innovation to that that higher on of we make technology's little that the proven we new cost some may So can not because into more the translate with

So, I is as we're and scale. scale, mentioned, excited large where implementing commercial be commercial about China at are going we to because testing

we're reduction test that bed methodologies Switzerland, cost Some there example, lifting we're even doing there for of trolley have a a systems in different looking and testing at for where we new system. for our EVx few the the for

have to balance equity is someone David with And a we our why at a essentially at plan, going have $XXX needing to just and that's have company going original as that we're in get much bigger happened with projects do participating we point things X we way way for and in in what million sheet, we asked why be time, -- do to over capitalize Noel, thinking that's was over know that. evolved did. I we that think a CapEx that roadmap we in to what investments the and projects there. were aren't year go had, mentioned the is when our of the So, to period, a balance, there certain this we planned about

we're have right be one only David actually that over as very, we where project I and that looking building mentioned, on more minimal. about have we'll So sheet sharing quarter. out our at balance mean, very the we're now

and candid these earlier And bit long. hoping taken them reduction have them we some I last and get before say to the even were this months you, we have talk two to contracts with just I where June getting of and of -- some cost at of hoping we're to So execute through year. point, for now. I these of just, a awards to decisions a And the make transparent customers. decisions project fact, about do a this said, happy on some we're process. going have roadmap XX. the the to just I'll that's say we of timing We're and go three thing is then certain it just And implementation be that as contracting mean, very, little we to

So that's you to -- talk working we so couldn't that table. any through us quarter of around not that happy to because we're And that do project we're process. last just about after new again, awards contracting this

industry. We that's sector and have a been team management seasoned this in very

line. the will them it get that. through we creatively I process, the problems. contracting problems the we're lot the takes get that because solving do innovation see why of choose across technical say to and for of complex on So, But in help they engagement those our we customers that, get value are then it of a and they to how solving some us that's pretty what we results teams

Noel Parks

process dynamic do lot not very contract? you much there and done. if from still it's outline sounds and the the somebody is you're So even get a said just to like of It you very shelf can the off to a technical contracting as to a installation, and involvement it's team

Robert Piconi

unexpected not again. way, the it's By Yes.

clear, go just value to mean, have mean start standard and just then I'd that cutter part we just to we as out I of systems, well. and that okay. cookie add but I -- the So and a build way fairly specifics we the thing for modular and we be get gravity that's always say into to a expect it,

work site, of a the lot done it's So building, more that's that the because of we're So that's right? that Geotech doing in where for upfront. site some on gets building work gravity, a of

So a modular out. build more that's

are a we there's we I and our using for complexity, both that's here for larger creativity more solving into think getting as we we software we technologies value that's and are different EVS the that these get and where just and little those projects. chosen and problems selected are what but into we get why That's add integrating.

Operator

conference session. reached to gentlemen, at comments. the to time, Piconi the over I Robert the like of would this and Ladies we question-and-answer have now, end Mr. turn And for closing

Robert Piconi

want thank Okay, Well, to our everybody look, joining I today. call for great.

outlined We the are are what and China the that's gravity excited the we across U.S., making beginning we really we at with regions our that the focused and Australia. front in today and the discussed progress of year X have

measured very numbers now deals we XXXX, XX a very have on of reflect sense customers. look company deals. think I are as well on revenues, aren't with a of it I know size or XX And on even large mentioned, a activity first as specific focused a meaning And the the first benefit or deals pretty XX if discussed a and these to some We our ones and the our going effort specific that's you real, focus new lot have as focused platform even EVx here does into deployments large ramp well doing of very We're are we ensure these successful. regions that deployments of we globally. EVS got we as team of we that deals the

are We a customers projects our and of focused for large have credibility that as choices heard with on technology. large you lot today making are

us, allows operational both team strength. and but a focused important things. to It few on that's I I So a keep It's think, an think commercial benefit. definitely it's a

is in help going and more that's we learn regard that the up and ramp by I way. drive think success less and scale us to as

and to this brings assembled, type So around think, the always these with on teams we at management being the the lot execution in decarbonization, time, together project forward awards end this have customers. listening to of that are look believe a one quarter. if our that's At size here get share going as able really, have level I team we get passionate risk. focused have want of I the table note to and to of really here next back with the deployment the more hopper on it but motivated look nature really same of you and focused we with you dedicated, on and and experienced, why be team some people first to I announce And most the we these customers and of the

day. your So and rest everyone, the thank of you enjoy

Operator

Thank Vault has for The now of your you, participation. you Energy sir. conference Thank concluded.

statements variety differ in of now be only are or forward-looking may their materially the your due disconnect You to actual analysis These lines. may from to We guided and events predictions caution a future results factors. everyone

Energy Vault (NRGV) 8 Aug 222022 Q2 Earnings call transcript