Earnings call transcript Q4 2022

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Operator

Good morning, and welcome to the Heliogen, Inc. Fourth Quarter and Full Year 2022 Conference Call.

As a reminder, today's call is being recorded. [Operator Instructions]

I would now like to turn the call over to Louis Baltimore, Heliogen's Vice President of Investor Relations, for opening remarks and introductions.

Louis Baltimore

good everyone. and operator, you, morning to Thank We're fourth conference quarter could join call. for our us today and glad you full year XXXX Executive With Obiaya, our call today's Chief Officer; Chief Interim us Rosser, and Officer. are Financial Kelly on Heliogen's Christie yesterday section issued Investors press release on our website at in that Heliogen afternoon a be can results found its of the heliogen.com.

those Heliogen's sales plan by of documents call and differ and and events. with update growth forward-looking make as that we materially result As results could yesterday's progress. that information statements. of assumptions other for these forward-looking a new and solar initiatives, Heliogen's future various of projects, release results which risks potential scale call discussions or steam uncertainties. Factors of plans on from Any Heliogen in from time. are scale obligation in to statements including undertake based no as this installation Heliogen's contract to contemplated statements on statements, and customers implementation statements the assumptions reminder, and technology, are Heliogen's differ our strategic commercial operations concentrated to we future found regarding and include materially could to priorities cause comments performance, SEC thermal financial Actual can product a subject the forward-looking time be press actual filed on today, expectations in industrial commercial expectations with These this include of to and

substitute press call also A website with on these to yesterday, of and be be the on the and information this non-GAAP measures Investors the also results. section isolation in call, Investors measures. was our issued we certain comparable considered not for, is measures will the website and These replay X-K the measures addition about from, of in should may release U.S. detailed GAAP in SEC. afternoon. this in our reconciliation During section which or More to of available contained furnished a is GAAP most Form financial as a available to non-GAAP refer this

I as first Christie, to CEO. to to call Before conference over I first welcome Heliogen's her her it turn want

Christie Obiaya

you two things that two to years There a to all. little morning Heliogen Good me were ago. brought over

uniquely was which First the respond the innovative effort. technology global to is decarbonization to suited

attribute the incredibly quality talented I second The was of as then joined team the CFO.

the our this the the for technology, sell As harness CEO, of company. In of and was current transformative new order Stage is collective on this superpowers not Heliogen unleash the X focused first must I'm to which left laser reality. we innovation, But a at for is lifecycle. our of mission us our value our commercializing product heavy customers industry thermal for XXX% and and to X puts that Stage solar carbon-free changes company's create game the critical monetizing producing energy. for epicenter

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of goals traction closed fundamental identified ground facing one close project. were the of line short to but correct course important additional on our and at a several Heliogen the the which first on to how achieving for sight second grow. year challenges, least year, of but areas and XXXX with most our to contract clear We break of fell half

address growth, key and faced confronted we challenges these reflected changes and made issues the public obstacles. in constraints Some were facing company to of every internal also this impeded environment. external the Heliogen that we've

is is mission clear: effort focused phase, phase mission. all into development technology the X project of delivery our shift Phase Our the on from this

our step asked of vision, serve in The when from to and reaffirmed me decision as our of Executive other the our and last was and Founder, innovation execution. Directors earlier Officer. deployment of succeed Board's transitioning Bill experience companies one Chief they project technology In challenges into month recognition lifecycle the Gross, mission Heliogen's Board of into commercial reflected delivery, shift stages

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As CEO, steps and immediate to I've focus operations on resources these goals. achieving taken our

turbocharged steam other first and fundamental: by sale Act, to contracts technologies. the This we the green for for Heliogen envisioned. X Our our massive the has product Stage including pillar is responding originally the market set has much greatly sooner clean success than opportunity federal Inflation Reduction most hydrogen close demand will sales. conditions, for program energy which changing expanded had

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achieve That steam products, have our on will timeframe, speed can their most product it focus efforts customers sales is near-term for our industrial moving emissions leveraging the in greatest and our reduction shortest the goals. our with while because commercial impact Likewise, adoption. helping available

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of our the the need on Industrial will To delivery, we're achieve our projects our by decarbonization gain into projects. and confidence by field. the in products meet Investors product also our scale customers laser goals to commercial operation. in work, first our project seeing quality increased at will technologies focused installation putting see of we

is because about must who base success. criterion. core from license completed focusing scale driving from move; and project data contracted prospective to Our cohort projects is second development on three a long. into delivery, demand technology. to imperative, early divided be commercial to projects for project this to customer have as shift Heliogen strategy list this will selection prospective project those success, prospective customers By In first; cohorts; adopters, that of for full a primed from want we from those unlock a installation can aggressive want see as who we our leverage for to whom list quite operating commercial is scale is technology our to converting ready

that to the for themselves. license confident projects customer our getting who want the are in ground larger will technology We and a ultimately base, companies in charting path usher build

to well announced project November last are second site way offtake project. partner in get the technology. we implementing plant module scale once we've to that site we we We finding will to dedicated project the team adopter California. steam future to project who where with permit a we build along use with ensure source sales us offtake work sales the to production hydrogen plan with pillar. a deployment, In the the have open an larger starting regardless secure completed We our partner. contract project the configuration revenue. the and We've secured fund installations This on a design City a the single intend Lancaster, production we efforts green are on Proxima. Heliogen's we meantime, expect level quickly will commercial data we benefits and the preliminary with a cycle. secure of of year, this in to of to they early raise give of lead This a experience can we will customers deals cutting-edge project Once which equity focused the ground In our in call the we both hydrogen of and

addition, our work to support installation viable a path center the our this Combined company. operational we're sustainability in In to will workflows. necessity streams revising sales focus, with for

future and of our a commercial-scale immediate costs, extend should we more deliver position. install our results, us position on integral put driving our runway. pursue need three, By projects we should improving efforts breakeven. a sales time focusing to to financial are to The more cutting us capital raise give our meaningfully take another cash operations none that and strategy more liquidity three us the in pillars streamlining projections, so our tangible part to one advantageous This and than our flow can on

toward liquidity runway. as tenure us CEO, my During undertaken short our critical to extending steps shift we've

late that meet with to runway our Although XXXX through I've previous team implementing to to XXXX. drive Heliogen tasked early has strategy plan, timeline extension sufficient a funding obligations under our our

cut efforts, development reflects we delivery. which example, from meaningfully portion R&D shift For of our have our to technology a project significant

also have we capital ramp are can once up further sales. which additional expenditures, We deferring we

approximately just driven addition, the to difficult strategy, headcount our taken also we've by reduce action XX%. our by In

they into We our technology. cost mid immediate are operations tangible impact. take the That our majority R&D XXXX. areas resources on our toward and costs, which tangible our our said, work us By results, make small these and also group expect a allocating identified within actions, we've can significant innovations, to drive By still the the to driving reductions to already where can created our efforts liquidity cutting late financial streamlining talent our of immediate future generations focusing who implementing we've being most we goal. on of

by on in progress, interest X demonstrates from favorable tangible the a Heliogen the favorable our be all and improving to more prospective at investors a see position, our raise additional Heliogen's increased virtuous As viability Along additional interest guided us transformation of cycle. this in expect and be to to should for will enable us sales, see additional measure terms future from this three potentially elicit economic our in I customers, progress mission, been closing turn should more future. of incentives, capital which Heliogen, would have We who should currently pillars than Stage able projects in be available waiting to financial reflected to installing achievements substantial in with today. market

Now earnings about last our other some progress let's as from operational since accomplishments that execution and we've talk XXXX. additional the call, made including QX a company

autonomously You as autonomous that mirrors the release, execution one is XXXX. vehicle, of earnings we milestones testing ChariotAV's for part ChariotAV autonomous which intended. we announced of quarter just our field our functionality, our at that initial may third XXXX of we recall cleans as the night cleaning completed

the has XX this receiving our vehicle customer accumulated environment. like the year. the to same by time and We hours came training. operate, using in operational validating just miles at its The did traveled board the it win customer it projects handing usability over a on this beginning now and same over of to validate internal to team over since After XXX functionality the life documentation vehicle, of successfully

I'm as of to completed autonomous we until development night for the share validation to field projects. part and initiatives with in earlier, pause their and effort advance and that the close pleased our action. functionalities, mentioned Having vehicle cleaning the of reduction great time of of autonomous further the of ChariotAV additional scale this work I this sales video of decided, proud cost on team you commercial we

[Audio/video Presentation]

the of packing strategy. using heliostats, to in the fully less cost we've heliostats less, density. to factory produced what They'll to of our made intended This on be ground Instead install. designed essentially our will of are to We've expansion material exit assembled be critical and are they'll These parallel pinned be both next-generation also using is able a part of heliostat trenches and the large great out the stakes. and secure next-generation to them progress field. concrete higher significantly installed the produce to be to heliostats of margin design with which autonomously ground, our

of As these current improvements, reliability. cost installation less any without Gen these generation We facility heliostats these production, impact including a Heliogen heliostats, successfully installation expect to negative in X significantly our first recently than demonstration result of completed and our Lancaster. the at test to we transportation heliostats automated our

now And with hand to our that, I'll over financial Kelly it to results. review

Kelly Rosser

you, Christie. Thank

is Now quarter I'll high in our progress turn the revenue to The range contract revenue and Energy, who of partner revenue provided in for have to contracts million. full This revised strong us. for reported remains year near the our revenue XXXX end a million commercial fourth Woodside vast XXXX was the of to guidance $XX results. our of majority for we our million quarter, $XX.X XXXX which fourth year full $XX from our scale with on for $X.X Heliogen bringing year million. a

at beyond. through time. we them. contracts strategic for is as As we as This We chosen us more as work is rebuild and priorities for provide forward to accomplishments aim make believe XXXX earlier, to and this year announcing look our credibility important we to Christie grow not it revenue these have we this outlined we that to sign guidance deliberate our

for Before lines turn Q&A, I'll up closing the we open remarks. back it to for Christie

Christie Obiaya

and to forward remarks delivering the carbon Heliogen's answering strategy fulfill Thank the to we support. look mission you world's these outlined questions. conclude you I your your reducing to for on your today to I attention, as thanking like forward I much for you I'd so work of look by emissions. for

Operator

[Operator with line from comes Instructions] And Melius Research. Wertheimer of our Rob first the question

Rob Wertheimer

investor. guess Can that the contract slide the on behind engineering an color said deck, detail real it prepared Is for in you that? you services Christie, for around give as projects? potentially customer, exploratory simply I us you any you in idea and the potentially that signed large related is to any structured mentioned long-term also Maybe it. way remarks, was a your had and a who

Christie Obiaya

question. Yes, the for expand thanks to Rob, happy that. on

early calcining. looking we're The work design engineering is forward work related starting on contract. So engineering yes, to to contract of this to nature the services do development and

[Nant a And contract energy work got including that innovative we've company renewable doing Group], some so the portfolio is the which this energy, in really company next-generation is with for of the materials value chain.

long-term this material the really, Heliogen's a point goals as serves calcining, to used And battery so high-growth contract commercial process materials proof other is input. processing a in in attractive that like and critical which market are strategic areas

the related a recent And which our Energy that work is year. award Department mentioned actually selection by with receive to also the of $X million to consistent calcining, of at last we end

be will our assessing and team so there synergies And as appropriate. applying

brings for prospects that we're that it about us the long term. contract yes, for really and So excited the

Rob Wertheimer

you had us update Perfect. timeline on I of general others, if Can Woodside? a I a may. give few the And

Christie Obiaya

too, Yes, absolutely. take that Rob. one, I'll

the incredibly On making partner County, and Kern the on great that Woodside Capella project, and project California. we've strong an project. that's been committed Woodside for us, in remains progress

are in design and construction on We project expectation well. have through in And to XXXX. engineering process. working That's that the all permitting the we start going also phase

Rob Wertheimer

Perfect.

Okay.

may. I if more, few a Just

that, of opportunity? to prepared about What potential I expansion of is you how you potential need installations you before Or number think that think want three there's first whether you practical? customers, any do licensing? mentioned Do for on just that a partners potential kind have the remarks licenses in your licensing. might that buckets of including

Christie Obiaya

great a question. that's Rob,

on to list. remarks, You several in want the part there licensing opportunity that our my be may of the of priority license. proactively been And to us includes early even on that to where -- trajectory, years looking East, other solar in Heliogen's what -- particularly model. out near-term that ago cohort, resource our business that the starting has that found always in explore going been are And to weren't in that incredible. places actually there's in our some strategic mentioned will Middle parts world I that that the desired a expectation a And recall of reached licensing, found we've has long-term is we

are so open out had to And reach things. us proactively we kinds We've on exploring that. those of several parties to

And so we're like. exploring looks what that

into DNI, especially We something order makes to that and in sense the But is guarantees we're to agreements. the want enter on for if absolutely licensing do some basis, resource, parties a avoided particular like the ones reaching that the area cost high for expect and are data things for an that open us. opportunistic that currently will out, solar operating is

Rob Wertheimer

of if I orders on and sort Okay. potential Perfect. And I had to more moving before one in then structure, backlog cost could.

and an if sign Just there's obviously, cetera. you whole -- the engineering there's environmental et order, approvals, phase, design

how any are any So runway? construction you XXXX stands that one, able into potentials when cash come your to that your prospect give could many there are further detail or thoughts versus three, us in about pipeline think on if you balancing two,

Christie Obiaya

the for Thanks Yes. question.

our nimble. have shaping construction definitely and smaller module focusing that So could on our of fact come unit, is, most other now means a is some most the that to into in it our XXXX. up us what are that I more we which we're there is say would things And ready steam available opens that that product, product, opportunities

tag early to to avoided it a more fuel. of and commercial comes match our cost attractive module, that their so scale or with significantly beat price smaller And of we've done to a adoption some make adopters with lower technology

integration of be allow perspective the could their with get found is will see being able we to helps over this, time line to that this real helping earlier. customers navigate prospective what data. us start unit of something so better the operating And to and And smaller that

yes, parts other depending there they have easier familiar, that, prospects of probably locations and as parts others. And on to during could you're course, we absolutely are than that so where are and into go Mexico like the U.S. location. the XXXX construction of permit of And things

the wherever focused. And so is, that's fruit to we're where be lowest going hanging

Rob Wertheimer

interest had known in a Or more on scope project Okay. focus is combined smaller than with the that Perfect. smaller industries I hydrogen-focused? scope the hydrogen? generation, just steam that cost and have from about does

Christie Obiaya

benefit our consume food, unit used it that company and steam be can kind for areas area processing. The is actually that is that an animal is this talking that manufactures which processing, used. steam in such we're of Yes. food example, both And a to, for in industrial of as where stream,

to use unit paired provided hydrogen in opportunity when have an augmentation with and with also We the power. green the producing of electrolyzer steam

and And used lot either us be really so it optionality. steam that purposes, of gives can unit those a for of

lot was constraint reasonable available module And we constraint. run power is which commercial-scale the typically is that unit, from a that of standard consider the smallest why turbine heard for we a a more with don't where unit in unit when standpoint, a X-megawatt have our the benefit us steam module, efficiency that of other power steam can that the project. you the But about smallest that talk was X-megawatt range, a is for

scale to gives more a near lot faster opens it way customer is do a then for want the module installation which a we possibilities, also so term. for that commercial up in to if timelines And

Rob Wertheimer

very Perfect. helpful. That's

to Rio indicate asset it more $X.X particular started charge, production that else? on that on for is does million on potential something you related prospects up anything potential? to finances. impairment So or out just the The two close And

Kelly Rosser

of the project. related $X.X you Rob, this related Yes, to question. the to, is Rio referring this Kelly. the Thank majority the million of capitalized costs to is you're for Tinto

Christie Obiaya

change, subsequent remain is and new visit about they've our Kelly, in side I'll open. to leadership does efforts fact, Thanks, our in that. to point, Officer, having his see color their some including on more a Yes. Commercial contracts. members add site on team been to finalized team reaching other with at to Dialogue Rio prospects proactive out directing And lock to on this in we without focus our a -- path Tom where fresh their Lancaster. Doyle, forward But contract, Chief

their on so very And write-off Rio remain Rio the decarbonization in open into decision take we and of that future. the slotting our plans remain CapEx. the end project XXXX the at to supportive made we And them to deployments of and

Rob Wertheimer

your Perfect. how quarterly commercial And R&D? you've runway. invest to we then sales facilities runway plays R&D that you've outlined the anything at XQ XQ announcements assume extension of XQ, do without else some cut the in into to in employment but much or of demonstration and Is allow you've same to obviously think I my the last up, largely being kind extend made on trying expense put being Christie, you done move rate. XX% so you've not one. potential that? the to there rate, future guess, technologies representative, Is that about And your even the I XQ? and

Christie Obiaya

Yes, absolutely, Rob.

on activity. in our have from You're reflect including expand a sales cash XQ spending we're R&D capital pace deferring from previous do already expenditures, that additional comes work, significant manufacturing the those facility, from our focus exactly our and combination we plans, until We've It's results we're to locked it are right. of wait going operating savings also identified some And not burn And of of of the we actually savings. limiting in. The going had, source to things. R&D expenses, forward. where contracts our on

And manufacturing so get CapEx we those online. any we will orders not be until accelerating

taken We release I difficult as XX% mentioned, to decision our about of a have, employees. also

we're to narrower And think be forward, sure reduce combination focus. things. so to be our to to given in that I stronger of able spend, positioned to we're going deliver. a going those And position it's we our want a strategic make And all

Operator

the Partners. from question comes Grampp next Global Our of line Jeff Alliance with

Jeff Grampp

for timeline there. the towards on designs there Any early completed projections on in start out? you terms guys maybe permitting looks XXXX timing that working guys project a Was do looks you permitting partner? kind process go-forward how potential Or mentioned what what of in curious event and like, Is playing preliminary see Proxima to of realistically? that that of a Lancaster, offtake kind

Christie Obiaya

great to you Good question. question. this Jeff, speak Thanks Yes, for with the morning.

fact project, yes, we'll Proxima the steam excited the that that hydrogen on get we're that the the covered and about and both very So prospect. prospect on

but In lead terms of on and But constraints weren't yes, timing, equipment. it just to on give you a sense of both either be that the into will time two line, permitting go our installed single within months. areas, if also module pairing for of a on limiting steam time electrolyzer unit that can depend factors those would the with few those, absent there

the look lead we to time equipment. permitting those on we milestones so forward. time for is quick, as absent updating And And go and forward line

Jeff Grampp

heliostats, of kind Gen you that related quantification there of you Or kind there. cost guys will, you Got commercial kind some the forward? provide in say encouraging be And done And on news is those of what it. ready, any point, of more are a of if in work some going future that would terms Would internally? X have terms installations? to you to

Christie Obiaya

Yes, absolutely. Great question.

the Gen timing we'll the design able the about to manufacturing the is be I'm on a really have and project. well actually the we perspective on future been gets contracts, with existing able there. the Woodside that Xs, the work contract There CapEx has still heliostats, how including with accomplish heliostat from the perspective, in So planes rolled up implement But it that to to be for Gen side implementing on facility. our proud team the Capella the what on X design out manufacturing

what field. will delivery the And for need so that line time we to meet

the work the Gen nature is the that's so go heliostats. And on that X of to

the anywhere cost X materials, and between the the typically the about apples-to-apples depending both when the some the heliostat a installation XX% the savings deal, nature between entire overall the production, of for the give Gen the a represents, of transportation heliostat, the cost you heliostat from heliostat XX% delta the on heliostat and itself. perspective, X the of the project, XX% Gen field of project and And perspective, consider you to cost. it's And about of

is significant So the able team here. that improvement deliver it's a to

Jeff Grampp

if sneak say early Corporate that know weeks some is this today few you I really And announced comment been? some how of those a Committee? the of color. but to only I I can was Or kind any the care more commentary conversations to takeaways kind you embedded Great. of ago, appreciate Strategy on in one findings in. would of regarding have

Christie Obiaya

I'd Jeff, And today said, and It's oversight the the as been really incredibly out to Yes. from forward. spot had that that's committee we've exactly support them and forward that continuing say reflect the on. from look remarks you committee the the flesh supportive. has and looking going to to

Operator

closing via I'll e-mail, did remarks. we some they've answered for questions And it been submitted however, have Christie already. now turn back to over

Christie Obiaya

you and morning outlined calling team the We're goals updating on really forward I the to Wonderful. to in from e-mailing months that time come. strategic really and delivering excited, and all of for and earlier the we've everyone's energized support that look this and had is Thank by and appreciate people you. entire attention call, in. you the Well, our

Operator

And your disconnect for participation. you concludes time. conference, may lines your today's this and Thank at you this

Heliogen (HLGN) 29 Mar 232022 Q4 Earnings call transcript