NRGV - Earnings call transcript Q4 2023 | Energy Vault Holdings, Inc.

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Operator

Greetings and welcome to Energy Vault's Fourth Quarter and Full Year 2023 Earnings Conference Call. [Operator Instructions]As a reminder, this conference is being recorded.It is now my pleasure to introduce your host, Bernie Colson, Vice President of Investor Relations. Please go ahead.

Bernie Colson

Thank you. Hello and welcome to Energy Vault's fourth quarter and full year 2023 financial results conference call.As a reminder, Energy Vault's fourth quarter earnings press release and presentation is available now on our investor website and we will be referring to the presentation during this call. call page available is of recorded. this the today now of Relations Investor our replay will later be on being A website.This call

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

that Piconi, me Financial presenting I'd and call the measures.Joining is Chairman our hand the our today to to Officer; earnings Robert like Harbor GAAP Chief more and we financial in disclaimer presented In Officer.At Safe to Executive addition, including a measures Jan details, Robert will and Piconi. Gaalen, the on Van time, Kees our Chief this certain please over call and non-GAAP release Please to be comparable note non-GAAP refer information. reconciliation discussing for

Robert Piconi

company, And to full year results also Bernie. second which to you, on our and announcing public of second year as year be Thank Great. call.We're quarter everyone happens a revenue. our now I'd earnings like welcome to XXXX fourth our

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Jan Kees van Gaalen

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Robert Piconi

as the And expansions Middle to on on portfolio Southern those our storage things setting China, Delivering X energy an Europe, as energy up areas underscored updates our East. and increasing call, royalty profitable priorities countries exit more on as all clear A at system residents all for while its in problem-solving, across all starts our entire with and diesel culture this in will and We'll and flexibility Full getting that flow to Calistoga, to Africa organization first year. seen of strong we largest from a before continue as combined. cash and keep profitability have invest growth. OpEx year current second behaviors there, curtail in forecast, positive This core the have greenhouse and sheet larger in questions, as to Australia, growth our California, in with financially, future.A place, theme green for California help a very first delivered thank which strong and of company the then you've gravity agreement. and Thank velocity, customer is our this China the an Kees.Look, humility, upcoming year. platform future critical sustainable for few higher-margin focus, as a Day. a XXXX gas innovation, longer as of XXXX.As to define and Investor eye closing to our by year more to enabling debt, with sustainably.And own and upcoming achieving operation to full emissions, flows next of tolling in this commissioning territory of here, no a in employees our leading of term ourselves the only invest serve with and then for PG&E the critical hydrogen a in you, world to with heard X management I again begin results with case than thus balance storage in projects long-term storage new replacement generate few are milestones which streams generation systems a our multiple us we Great. for delivery, cash projects. Jan to public example, values deliver want in collaboration, and quality, all as you predictable our Calistoga, Model and

look in would While under believe recognized and this the near the and that helping May buffer otherwise could model, many that X. are seeing Day result model join Investor discussed, will quarterly on Energy Analyst global that thus while previously to can impact awarded you be projects an shareholders transfer and commission New larger our build us long-term in in basis.We business as projects being in this Vault, we York interest of our best we EPC at a term to forward less on revenue the of of on

We announcement. will earnings QX's be again speaking X May at our on

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Operator

our ROTH line of Clare from come MKM. first And will question Instructions] [Operator the Justin with

Justin Clare

you QX shifted about from QX. that So little I talk wanted just revenue off, more the could to first bit had into guess, if a see I

here. shift. shifted. and to could the if provide sounds It can and or then or little revenue QX in led revenue that all battery detail just royalty out you slightly maybe how speak QX If projects the you of mix bit what And on much a licensing of like more to is moved additional just then to then And going QX? be

Robert Piconi

due deliveries combination completion license shifting shifting has to double-digit that you revenue the battery know, that we announced cases, gravity implementations that accounting of that agreement. in other of, Kees Jan energy completion just margins as of was also projects, the the hardware Yes, Sure. storage that recognition we a portion into some into and a thing, And mentioned, some and be as led took in that shifted PoC towards to substantial had QX, of okay?The there's there final a new we will XXXX. is

be throughout some in that will Our as expectation of we recognized XXXX is then that QX progress. and

items with well. the had main comments, color were we context new Investor here. the have the that providing think, -- terms are we'll some on of the I with to regarding release that, the of I EPS shifted.And as a that timing portion those point. X, Day I the have exceeded XXXX just alone, can And be say recognized have referenced EBITDA product well on, of areas I in information into related. that gravity of announcements the we the and in the XXXX X in awards adjusted as going the these I'd think, as that we're double-digit that So on that's shifted, both -- said million would I updated But amount amount share as those you project it's around this our on numbers clarity the at some and our that larger Even

Justin Clare

you the if XXXX you battery then After beyond. you projects could I for fully to those complete Jupiter speak into Project, visibility just have maybe the that wondering And are was NV Energy operational. the project,

that And and get you the then next in backlog projects? reach to then need the what's into converted key Just see on could moving you before start can NTP there pipeline? are forward awards projects

Robert Piconi

Sure.

finalized. and between few being notice-to-proceed projects have some in and bookings of awards that are have a other which cases, dates, -- are We are known essentially

is own chain market, transformers, has have things Some do you're the projects also of of choose our are supply this I some that timelines sheet to attractive that item.We as balance like which of probably scope, example, but times, know for some we with breakers the not around for our have IRRs. longer to can a aware, that on lead have set another double-digit in

potentially on has of what And some impact to relative mentioned own, that those but I so we're about rec continuing not necessarily part as well. all those an working to on of rev projects

after QX can to So be you from in will of XXXX have on awarded number.So funnel growth we where just we're earnings position rec at those rev the on in therefore, be and a our lot see X. critical finalizing starts actual the as the give an that update Day we're May sitting category in we'll our better the -- to itself, Investor a that

Justin Clare

use wondering I Analyst just then project? the we more sense see any the And be performance here? something one Is any gravity on sooner? could that fully on time? Would for And Rudong metrics? operational likely in shared to be near then was for on you at latest that And Could the in timing sense provide be might when Day? expected that what solution. at the the then what's and your term

Robert Piconi

Sure. Yes.

we there as I are that in they Rudong. are commissioning state grid December, interconnected As mentioned, warming actively were system, now things up especially in and

guidance second weeks this CTO of month. their we're just the at Our expecting the to was half per site X.X and ago, have in

to announced some don't metrics the we time data quarter think, system will we that's on XXXX. of weeks, data. coming the anything into have there's I before, system should By performance on well get Day, half our as for up expect good a be of the we the it of set the second XXXX nearing you its performance and ground.We completion that out toward first second in as system Investor that because of a as, So of initial

terms some and the data of announcement in the the time actual of more robustness So I But expect Day. operation that the system even and significant probably some of of of the data, potentially frames dependent doing systems some videos would by slices. data on Investor performance likely, more the than all on updates, the we will we get accurate having the be of as operations

Operator

the question line from next Guggenheim Partners. Joseph Osha comes Our with of

Joseph Osha

Yes. for Thanks the detail.

these I are prepared I on on mishear bit following said full I Just ground. expectations these year comments, what to Justin's that you did believe to sure wanted little I other follow just your or this I during of are a systems that question. breaking make the up that? heard Rob, for operation systems other understand Rudong

Robert Piconi

Well, we that's system up ground. of have, as I the one out mentioned,

in projects grid to and announcements demonstrated able local out started be terms what an our one about of the announced, announcement out is public months the up the company, ground. of during on Tianying publicly. I -- floors process. coming China the the are They're remains get all operations. Joe, commissioning that. one's They're QX. Rudong will X that put what focus quarter. that broken outlined then we I going and third-party sharing We up they just and the ground, might weeks The of interconnection. there's the in now They're now that they've performance I made Justin, data announcement. inverse again, they've is would That's get out expect as ground have to getting others on things initial the through in state they and have that, we've actually X coming data think other homologation These update And there.So we validated, as be operational in right a up did performance that's we full

The well as of operation commissioning systems. be terms in others of XXXX those will

Joseph Osha

we the question, Snyder, there. heard while. I'm is next story wondering what for The about a Texas haven't much

Robert Piconi

Yes.

Our collaboration up and the of in out with Snyder. Enel remains, ground we're

are, customer an that's and well.The have as actually technology. a the the our we other utilizing -- international thing So other yet, team at applications we haven't in you, We that of key interest site also site with I'll demonstrate Joe, Enel announced get I of the of where we'll customer, publicly gravity this are and to pictures we site there can there. share the with but imagine we get

to on of we're more that up to in at we're gravity the Investor Joe, progress in with with going just Enel. have to line building mentioned, what going But you, that sharing be I is with there's our no with as our anticipate and doing we're discussions change site about sharing technology agreement be them we within Day. site. enforcing that I'll Enel in applications sharing our So and we're at What collaboration other what

Joseph Osha

So us site is I to guess get able just to for be up of on -- when sense a might is we that to work. going to roll some site be because this to any as easier it and that see to

Robert Piconi

some have there get say to I the would a you you come. and good Sure. site, to for QX we when time be would might surprises

Joseph Osha

And my I track then keep stuff, of all I'm last and this apologize. trying question, to

award because sustainable company your that's megawatts on second backlog. energy whether -- business, a your in in Southeast press whether of that's energy storage totaling Asian release with showing booked the and that right, up major 'XX, made blah, QX blah, QX trying a be project your your of to blah. XXX good products to half call in X for I'm reference You to a chunk understand XXXX is

Robert Piconi

awarded project our That Yes. is column. still in

not booking a for that country was column. development, local is on that awarded our study because project just that continent in So final it's in in awaiting a It's project. done and that that there's

So with project in us Joe, And active line category. a some it to work to get a tolling have are within awarded grid looking requirements other bit the I've underway, comments ownership funded, be studies the be country studies we're operates trying It's and the agreements.But maybe the one studies our some remains equity about that It there's XXXX. at of done. might ones some on they in at project, special to be may those also, that little in developed of and going through have a the in ongoing. convert projects help the funnel. some as develop maintaining that that we performed. these made to where as differently looking And in remains That look still

Joseph Osha

a And last, electrolyzers. little then my your bit I'm UDPC? in not they're this is understand just I'm finally, to Plug's bit trying using role this Are you assume your Are understand last or project. role in on they what project. question. last, apologize. batteries your I do PG&E a little more last, I what detail integrating trying electrolyzers? to more is your

Robert Piconi

and It's explain tank. of essentially, the designed storage combination it. hydrogen microgrid this I'll with fuel we Sure. -- energy a system a

to fuel the clear, So We tank. on Chart this. We with be and We're hydrogen announced that. a we aren't sized making worked We green designed hydrogen. it. procuring

cells, their we not as combining but design, with part the themselves.So the worked Plug with the hydrogen fuel number the on cells the tank. fuel of with that also, of architected We with cells fuel so electrolyzers

our We architected of one also B-VAULTs. in

wanted. that So to the address PG&E start black grid capabilities and forming

cell fuel that's management designed is systems of charging and orchestrating in system, we're hydrogen amount. and then table, we So and the lithium-ion, with our to There's of project architected B-VAULT this combined green -- essentially the energy brought some building. the pieces terms charging, a that that small the and container single the the have our entire the discharge with aspect.And

owner the the and We are EPC.

have own agreement a tolling separate we XX.X-year -- with there's company, Pacific and with PG&E. it, a we So

So is asset. role also -- of role our the

the as asset that managing well. So clear? Is we're

Joseph Osha

part a attraction -- you I heard part the why that's Yes. black to of assume of capabilities of PG&E. say that's facility. that's start just I this

Robert Piconi

start. Yes, black Well, a Yes. portion a is system. microgrid is backup this start as black for required

think know, probably be that's in speak times discharged to I that you'll clear, X but case something designed to so is that, Joe, use to PG&E be up So better it's here area. that X the year. fire not you're going can a because to season, the in probably frequently,

they to remember hard, had Calistoga was and grid. pretty hit You'll that shut down the

call use is can this actually so also to any microgrid shutdown work the be interconnected. events don't or stand-alone.It design will the what diesel and ancillary make they power, the in. they sense? event, lithium-ion some shutdown safety specific that of them during And can even daily.Does is this of way, discharged kick helps and PSPS, thing need power services generation by But this They anymore, that with

Joseph Osha

better understand now. appreciate I it. that I much

Robert Piconi

through. people And left, we minutes have still and list to we of have about a XX get

limit your you please one great. if that follow-up, be and to a can questions, would So

Operator

Thomas will TD Boyes And come the question line with the of Cowen. next from

Thomas Boyes

situated. structure and where like for Maybe Africa to margin? a how on similar in the X% one the trying in XX% is that is about royalty get royalty deal Just first China, of gross the the gravity to South sense it's is, the then projects

Robert Piconi

is. it Yes,

Thomas Boyes

And blades the wondering assume, I seeing solutions you're -- wind is materials and just other demand block the also was use then I in to going progress still type they great to block on or question China. know obviously, I is and in table. system slated see use Texas China. on in if the for to the waste in the of looking EVS to the construction something which just that construction, was Are

Robert Piconi

Yes. Correct.

CNTY service just China -- just are or to are. what They plans Tianying on remediation fact, share you waste company. In with environmental a to yes, and

brick and like blade, with can even blade around of collaborating waste other that use ash, have they are license the standard production.As a their part the that are they management of and incinerator ash lot incinerated there wind as the gravity, coal we a well. for an our of forms fiberglass, of do they as wind meaning waste So and materials using part shredded example,

deployments those to the what's be and replaced. there's years, you fatigue have and wind China, XX As blades blades suffer massive in know, about every called

reuse So that say, let's them.There a is types the a similar for there say, China large in that and is Tianying of, market. let's subsidies well, opportunity player, as China are in

one that through working technology business specifically but utilize that the to are they with required, cases, have some for their So and was core have of it, we in synergies they in the energy, with them. our that

Operator

Shank. of Siebert line with the from Ellinghaus comes Williams question next Chris Our

Christopher Ellinghaus

but this, to about Robert, conserve your line run efforts sort rate, talk you sort items fourth of what you quarter in address cash undertook that the the terms did in to reducing whoever of of wants costs?

Robert Piconi

Chris. X OpEx. the basically question, We controllable areas, focus Great in

things So controllable our costs, own internal facility consolidating are Snyder, like as sense, now that the travel, infrastructure, things an also in to that are a I consolidating IT our that infrastructure. we're that's all things but actually Texas from that some and everything also mean, as internal example, we site infrastructure. in really since things some related our

For finalizing some doing facility going were our had there now We We the example, of other there. had that testing.With other discretionary. still had as some we're buildup where Snyder, we're winding things things down EVx EVx we're R&D that be to our system has somewhat the and projects.

choices market, were on that of related. terms Some at IT There that looking we some market, invest in across expertise we that. things I'd our -- R&D storage this and duration were in them given some which, based storage saw multiple different the technology.So also energy domains, made you future was there invest way in I'd priorities and of optimization, we in as around technology strong we're say and R&D different mediums, some say, a and know,

does also the staff XX-member new but and headcount And did optimize built around we EPC -- we make open sort looking functional technology our of our other of a I'll have continuing at some China, on and or model.We require that. where related and In things go -- looking We for anything that is keep regions. addressed announced executing have to does support software partners places a direct because the to So to particular, spend on in Because team Southern of guidance, projects. model don't these Africa, in things to that a we the we weren't they're build a did decisions that to they integrating we're addressed. at, that what local some basically SADC, potentially And or in level technical some don't the decisions, model we're projects to the because in countries where engineering investments level controllable mentioned mean? our I proactively have what but essentially easy don't we that, in complex places offices our license given accelerating doing And means our management bit up that directly.They're we as by in our equipment, like up was where gravity as and were the with adapt companies things we that certain business business translate that market little that areas.We hands that and the just model. capabilities. in the some required to more evolve on other's own you did expansion and bit, our are equipment, engineering do, of both today. of

delivered just the our some given that only growth So economics an costs that things related -- secondarily, making of sector.And terms it's in -- Chris, to years model. our in our adjustments headcount And of where we've it's matching our volatility and was market revenue with continues controllable those me to say done the I'd stock we just a amazing trade. that was with our clear, OpEx positive it the to combination our business to honestly, amazing of optimization everything of and infrastructure it unit first essentially we've made, and in X me and then

X. that backdrop, positive. by see that positive.So products on color enable desire have take cash cash providing today to Investors much and the XXXX lower road And accelerate a a clear. some is made on to to flow QX to the to frame we actions more map to into rate that and things essentially with flow some spoken time sharing and we're going us on enter cash OpEx and it of wanted May announcements region in new as to we So at on accelerated also be

Christopher Ellinghaus

of sort where domestically or guidance? overview you'll where some of stands the at headed regional Is that in some detailed Day. in assume on that development gravity Investor projects us sort of storage say, you're I with general give of kind along

Robert Piconi

Yes, correct. and those other of some Both too. things,

product customer We new announcements to to have some announcements. make new some tied

but -- X. correct. we'll those yes, Absolutely So

Christopher Ellinghaus

color And can give follow-up sub Washington us Will a at I state ability Day, have more give little on if that. the to customer? the on Investor this you a little

Robert Piconi

making. it on -- to product going that Yes. We're application of It's we're we're be really the of that. the the to new and planning nature to because the about Chris, of that's one excited -- of gravity announcements a technology, tied

on be share So more thing these. we adding will to color.One

we're customers -- Some have as them, to go as developing they're with land. they projects acquire okay,

it's up So land. they're -- And themselves about as gravity, sharing time you aren't they've it you XX we're until that any -- talking sensitive not naming pricing and drive speak so about acquired very on to about such because that, acres, things.So customers -- require we to time as hold we make that our will name okay? land you? You're the of plots they've confidential land. acquired of talking about large Does until sense and their

Christopher Ellinghaus

for Day. that looking into but details. myself, Yes, dig Investor the the sure. Absolutely. to I'm to one forward going Thanks I'm

Operator

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

Noel Parks

ones. couple had just I quick a

in solar on driver power the with And investor business importance? seen as the same? wonder, is, awareness them greater that a the in it seem a we've of does One sources, of that of the of the wind it destabilizing specifically, to market, role storage Is grid. year or like just effect has intermittent last sort of I ascended about you, the particular,

Robert Piconi

continues that a that I in of a market -- seeing X used X- say massive continues be X X-hour to I'd to it hour mean, terms we're market. to shifted be to what to what Yes. widen to

are the that. longer the intermittencies of of weather severity there. more the meaning patterns driving frankly, was And quite So some duration, it

ability on where storage. there. even say, come, aspect would definitely addressing tremendous thus as we've And need lithium-ion to at think over the be for to pricing intermittency the going know, -- hours, But time.I of goes definitely, on or lithium-ion any prices. we're there'll in be So X depending new and flexibility drop that utilized, additional that's grid technologies seen as and then, continue a for more other the therefore, renewables come I you this

you market any applications. And for there.We see, think, a tech, pretty this necessarily specific XX to in interestingly, with are needs we seen strong in to broadly. I hour very continuing things some as slowdown shorter those that know, haven't We duration are range combined serve X can

Noel Parks

$XX month, last maybe deal, African a dozens? was take disclosed And I next million similar years. deals believe you South the about Are It that see X? many envision license over handful, the it how like just a when can we you or to many was over year that XX dozens, talking stab helpful you modification. at Could

Robert Piconi

of we're types because them where we markets market ideally Yes. find there credible, it's partners, in is dozens, defined No, that about can meaning if experiencing deals, do need. in not a large sub-XX those going to think it's where growth, where we do reliable do very are you places

in in prefer I'd ability more go we're look set a South Africa, are mean the rolling where an for need asset there so we I overall, of to which we Public Calistoga. places the said they provider, the absolute now to there California, and in although So doing call we're there I up not at well. blackouts.And we is has about of say, think technology shop. shedding, things sort fairly what call have as manage load storage

have locations you if the that at can would say for -- that few it, motors. project, over say, a years. is there that particular, about the for be construction aren't something And locally.Some interesting I'd multi-megawatt next you're definitely be There's all in other model. that a big they mostly if making I'd places don't So power think look local or you be the can where electronics done gravity,

the to And building itself licenses from I volume.And otherwise, just nature time. that or it a understanding have cash and new to tied to and think over. some types in to build. when get in. obviously, paid -- But there's going typically may then are come construction we're with those they they're cases, there's as about because it's royalties interesting and months it's XX specifically are timing of be gravity, do an of those months turned over So to these it's because systems And upfront when systems lends a in built to the can come you XX them And that you're business project, the perspective, and of of know -- models. I frustrating talking royalties, investor it paid take

-- on you coming. X% see I'd are end royalty but quite towards a those at agreements. of say, royalty So are the percentage.I significant revenue, mean what is, They higher in

on it's some going agreements those that terms when initial something to kick to the indicators So forward. we're on we be of expect in providing some going in of

Operator

back to time. call Piconi further I'd no remarks. the questions closing are turn at There to this Robert for like

Robert Piconi

thank their to XXXX forward again thank and achieved of to here and everyone Vault what Energy 'XX we're the Just employees and for 'XX. and in and to looking what we joining time in

of We'll then be on of X some potentially the Energy just look to those all for very to New speaking that, we seeing company again you and you you post employees the we hopefully joined the in thank person supporters been much. May there. have of have in forward investors So May X. earnings, And of Vault, our that thank QX Thank and you and York.

Operator

conference. This concludes today's

Enjoy lines. the your disconnect your now rest may day. You of

Energy Vault (NRGV) 12 Mar 242023 Q4 Earnings call transcript