TYGO - Earnings call transcript Q4 2024

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Operator

Good afternoon, and welcome to Tigo Energy's Fiscal Fourth Quarter and Full Year 2024 Earnings Conference Call. [Operator Instructions] Joining us from Tigo are Zvi Alon, CEO; and Bill Roeschlein, CFO.

As a reminder, this call is being recorded.

I would now like to turn the call over to Bill Roeschlein, Chief Financial Officer. ahead. go Please

Bill Roeschlein

revenue in portfolio our to markets penetrate XXXX known fiscal full quarter and the subject are market markets; new impact for and expansion and and in and international on We'd our first the and position ability operator. our and remind that unknown regarding reserves to and product share, the everyone our and business our current future thereof; our long-term our are supply levels, impact Thank competitive year prospects, for and forward-looking financial including as 'XX; and such, factors including our growth statements EBITDA risks we'll those like the discuss quarter and expand of not other of time market recent Factors file the expectations revenues report of most including, increase in on today's described time. but shipments to matters our recovery the including profitable on some to limited future and our outlook, overall the their about results; SEC section inventory our our to, release reports Risk XXXX in XX-K our Form we and and on products; annual you, a in first fiscal press our ability to may and become and uncertainties, inventory demand industry, this for charges expected from its share; adjusted call, and customer with described timing investments

call. as the from are differ only date when those cause could uncertainties These These of risks and to results made materially expressed statements this forward-looking made. on actual

measures release We for measures considered with reference The as in prepared certain the financial today, furnished of non-GAAP X-K. accordance superior in call an provided press include our or we measures. GAAP. be a should our During substitute to financial exhibit Form GAAP performance to reconciliations our non-GAAP to financial non-GAAP will not

this conference I Tigo's website made and Finally, available recording a Investor would will on replay like webcast investors.tigoenergy.com. being is remind at call that everyone be Relations to for

Tigo's With turn Zvi? that, Alon. over to I'd to Zvi the CEO, call now like

Zvi Alon

full discussion, our To fourth performance today's to will from questions first open After as in XXXX highlight more CFO, closing and and key our the of year areas our you discuss remarks, on the you, our about quarter highlights past our analysts. of Thank results I before year provide for XXXX outlook our depth year up turning that, XXXX. the call the over Bill. call will some for begin recent the recent in then well for Bill wrap and guidance operational quarter as the to He I provide Roeschlein. share some financial tell will commentary for

started. quarterly report to of get another that XXXX making for year. we pleased ended yet I'm out X revenue Let's growth, X fiscal it the with sequential

geographical area in team color product our highlights, our Expanding what ended, EMEA of within the and Malaysia recent we growth, has remained sales markets especially managed our regions train To some on Tigo key sell doubling and has few portfolio. our To accomplish. a exceptionally footprint time educate, has in share to down and XXXX into markets how quarter. for Hawaii efforts an only focus Given to team the sales of us. spent our Americas results, give positive during I'm saw proud and at the

million units. of MLPE the we to fourth In bringing quarter shipped XXX,XXX shipped total MLPE XXXX XXXX, units, our X.X

we momentum build to line in product expect the trend and TSX-X XXXX. marketplace, this continue Our to continues in

of sector XXXX, multiple pipeline wins to Additionally, the utility-scale and our this grow. in achieved market in we continues

where solution, of software grown AI production energy our within Predict+ since XX,XXX XXXX, is first continues gigawatt AI-based from yesterday grow. platform our area energy of total XXX covers XXX,XXX year-end. announced the of consumption at platform hour to quarter We and Predict+ under and focus management a has to key Another meters

learning North As a and energy Predict+ predictions America, for expands we forecasting. Europe are into analytics bringing energy to machine standard new and to

annual Our to expect ARR, recurring or million XXXX. now will stands and $X above year, it continue in revenue, we a grow

-- program, just announced XXX installations including over of inception Glove milestone. X,XXX XXX the Additionally, site great recently now solar residential Green over Since C&I the and arrangements we engagements reached has installations. another globally,

quality off. are We solar certain excited towards the to efforts starting to pay our see

turn Bill? And would to like with that, to Bill. it over I

Bill Roeschlein

Thank you, Zvi.

significantly Before fourth our the I for are in like inventory would charges I address start the reviewing impacting reserve income are many cost that they items of accounted revenue. as quarter, statement the line in to of the results

has year, line solutions reflecting this In business of that in the we in represented fact of and compared participated XXXX, our business X% well business X% storage GO sales total ESS not our recovery total as with anticipated. prior as the had sales

inventory the this particular, market you fall at negatively to which aware prices, rate, segment may continue impacts well be participants market and competing all in many As of battery for has companies holding of positions. of, market a share, high significant

future realizable reflect the charges current estimate value and the inventory's both in the incorporates of management's market mentioned third previous net our As fourth quarters taken environment. expectations and and the earnings in call, of

or On a Italy. XX% million increased X% of $X.X fourth in for increased region, basis, XX% from and $X.X results and ended XXXX of By million XX, and U.S. Americas improved Now increase. the or in the or turning sequential results increase. recovery coming million and revenue revenues quarter was fourth total revenue quarter sequentially. with revenues regions, financial XX.X% XXXX. including a total period. some of the countries for sequential revenues from of many $X.X EMEA sequential and revenue XX% the December with in along XX.X%, million million XX.X% a Germany, $XX.X EMEA APAC Americas total revenues a of And was to was the decline $XX.X year Revenue XX.X% to the prior

quarter of loss was XXXX XX.X% negative revenue million. $XX.X period. profit in year-over-year or compared to due revenue year million inventory decline the of to Gross The $XX.X million in gross previously ago XX.X% or of of charge the of was $X.X primarily fourth comparable the mentioned

prior primarily XX.X% million to year compared cost-cutting for expenses fourth declined previously prior fourth the Operating efforts. our to was quarter in announced Operating the period. by $XX.X million the the loss to $XX.X The compared $XX.X by $XX.X million to driven XX.X% period. decline for increased quarter year million in

fourth to compared the loss net for $XX.X the net was quarter of prior GAAP period. million $XX.X loss year a in million

the we a on absent fourth compared While prior profitability non-GAAP recorded year GAAP period, basis reflect quarter a loss inventory higher for to the basis. towards charge, on our the a net progress results

to year in increased quarter million period. an XX.X% EBITDA the loss to EBITDA fourth adjusted $XX.X Adjusted the of $XX.X loss compared in prior million

that adjusted expense, a net expenses, a and for non-GAAP interest adjusted and as stock-based transaction measure EBITDA As loss expenses. represents reminder, M&A compensation tax depreciation, is other amortization, income

XX.X fourth for were outstanding the XXXX. shares quarter of Primary million

to receivable $XX.X or million XX% million net $X.X $XX.X million year $XX.X ago million period. year decreased compared net this quarter $XX to to $X Inventories comparable in the comparable Accounts quarter to million in $X.X balance Turning million compared last from and million the increased decreased period. and sheet. last the quarter to by ago

to million equivalents progress as increased working long-term on $XXX,XXX securities cash XX, a $XX.X by marketable sequential make and Cash, cash XXXX. continue we short- and totaled our at On and reducing inventory December basis, capital.

for financial XXXX quarter our to Turning year of our of XXXX. and full now outlook first

As key believe indicators of these as as adjusted our for a to be quarterly for guidance reminder, well the Tigo overall provides as metrics business. EBITDA we that revenue performance

the the and we quarter XXXX, For in be to expect following EBITDA first range. of adjusted revenues

quarter first million expect between We to $XX XX, XXXX, range and revenues $XX ended March the million. in

expect adjusted loss We million $X.X range to between million. and $X.X EBITDA

$XXX year $XX million range For revenues to between full the we XXXX, million. of and expect

final call to my like now remarks. summary, completes the I'd That turn over Zvi and back for to

Zvi Alon

Bill. Thanks,

that product I and solutions but us others. track us than to still look pressure makes market can industry faces the industry mitigate we ahead, over record the portfolio year As XXXX better allows believe robust say our the past our headwinds, that

revenue us. anticipate for look the We our the our XXXX. quarterly providing the continue throughout demand to quarters. of ahead that expect sequential believe coming in outlook revenue We to fourth towards in After quarters X into line our increase what's company XXXX. an of return, remainder continue we we solutions of the As believe ahead business and the firmly to to growth, of growth enough improve steadily to prospects provide updates top of visibility additional throughout carefully for have for we quarters

With that, Q&A. call operator, the for please open

Operator

Stine first with Eric Capital Craig-Hallum question [Operator Instructions] Our comes Group. from

Eric Stine

charge out at loss adjusted that, expecting just on the guided, charge, maybe So the when noteworthy you Can outperformed or million. ex called excluding EBITDA, that that million? midpoint, by know the just charge the a previously factoring you of into just I you remind you were $X.X a you $X

Bill Roeschlein

is feel we reserve reserves. an the last we of forward. correct. inventory our ended call. initially being inventory both the That in than additional had guidance being and that the as that adequate Yes, during move EBITDA guidance the anticipated reserve we said, necessary In of we amount up that expectation reflected But call, the taken did higher say

Eric Stine

And mean do guess, not at feel least. imply sticking you're covers you I I you're it guide, charge mean, a expecting expecting I would with this like of the the not charge, in -- it? kind QX from that

Bill Roeschlein

Right.

business annual we in to reserve of to Solutions terms $X.X So left around of is Storage And the process, expect the at Energy balance reserved somewhere we with given think the sheet range, taken, what the We're look value at point, we we net in which adequate the of part and justified with this yes, book audit, as million review inventory. XX% sell. a valuation. obviously, have

Eric Stine

it. Got

able the mean, call? I'm And helpful. guidance like year, as and it bit are -- just I know about the think where in came at some flow curious, you 'XX this positive you OpEx, That's little a then on EBITDA fiscal are Okay. you've quarterly Are just past, given for you update to you I exiting maybe more. targets cash do things it looking those down revenue and that positive. have looks

Bill Roeschlein

certainly. Yes,

expense. drag quarter, having less to are then And that. flows litigation it There's that kind annual we able around be after of that, lumpiness a OpEx a solutions take going audit and product. have actually of which the being we QX, that it with in the for OpEx, with to adjustments, look and million. and to OpEx assistance In which general, number the relates along you cash OpEx depreciation stock-based as the the out we and the to QX, OpEx reserving XX%. past an up with in GO -- looking related inventory, at come was some the primarily ESS to we mid-XXs of than have margins QX, sub-$XX taking million. recall, little QX, to somewhat some reserves, with for a not $X.X amortization, we the we So to where But so lower bit little with some and expenses QX is down EBITDA was QX continual believe comp is further if keep and had Absent bit were this our and ebbs

to $XX we've for to is consistent forward, is XX.X% sequential million like EBITDA And to $XXX XX% million delivered to that gross of million far. high breakeven taking what margin $XX fairly with guidance our mid-XX% million So is outlook at range. X.X% thus which that more our growth,, $XX

XX%; XX%; about XX.X%. you If was QX, QX QX, recall,

like QX. that we that the within end, that profitability somewhere an so But the be more you can suggest adjusted basis. EBITDA end QX, second And would $XX high at range, expect see that on could low And QX. half at QX, million, late

$XX the be second want you to to specific, based we've if midpoint where that's to would million been tracking model see EBITDA half, the the take on it that's in our forward, we would also mid-XXs what past X margins, quarters. to is and in to. of And which guidance, So the with business be million QX going delivering profitability still $XX we're expect

Operator

Our comes Phil Shen ROTH Partners. with from next Capital question

Philip Shen

X%. was is to Would it EMEA, geographic share to through XX% and one you I that APAC expect for 'XX the year? Americas be? guidance. the QX, you and First Can what we know as X/X then expect mix go maintain roughly on you then

Zvi Alon

We've America. XX%, we've increase in for in regions answer the seen also those is the the absolutely give So the -- percent North in EMEA and the for -- is said last yes. general, quarter. before, seen answer X take, in or an I In XX-plus as

Philip Shen

the you what and would What EMEA, for talked as terms X think in in top top 'XX, then about last on of then the the in Italy being EMEA I And QX? the U.K. they And Okay. countries we through be? Germany, you countries call, go were

Zvi Alon

It's It's same. pretty the Italy. Germany, and the much U.K.

not have But see in recovery interesting main any countries example. #X, the X Europe. as some -- We seen We Eastern Netherlands in do the Italy. the and U.K. and an activity are Germany top

Philip Shen

Got it.

And so Germany countries bit these might little your of flattish. a Our outlook is is what for each be sense overall?

be down that Mac I recent XX% sharing a think 'XX, 'XX. was it X% webinar could in with Wood in being after us down in

and 'XX So beyond. being they do significantly in Germany -- but see down

expect slice, how you navigate Maybe Wood that? Mac -- you being you of disagree Germany would big team well. do So a with how with segment as the or to kind such

share can these you for countries? So outlooks the

Zvi Alon

robust and level is they The continuing the we for other see actually us. see for And strong for us for it side, which we are and have is coming at continues of indications running that U.K. really be very they same that We been the impressive Germany distribution a market, the that is the rest strong from to year maintain also is increasing, also U.K. the us. the us. for getting

Philip Shen

Great.

inverters ramp-up storage in Okay. companies. a how take big on could been and U.S. terms Powerwall and -- X share And that from the the then debate there's there's outlook, of and

And was Powerwall for to is internal optimizers an opportunity wondering, so with X inverter. pair you I there your

be So with get content you? and the solar like -- seems for for is for that to is is that I domestic XXE What -- there are And thoughts? require you an I the have Section mean that you there It is now? something that could separation something storage. opportunity rules workable guys. your see adder that

Zvi Alon

an can from Powerwall increase the we Yes. go it X seen our customers have you, with tell with I in to use to product. requests

to And of we X. number to have comply installations paying good that we to obviously attention support sure are make with we so it, Powerwall already are our do Tesla And and a best doing we it. with

So we it that the and how actually in know it's we working will well, continues. market, see

Philip Shen

Okay.

it your more optimizer? fire are safety -- Or So for you Or... being device? paired up with your is

Zvi Alon

Actually, Actually, it's the unit. optimizers. a higher-priced

Philip Shen

Great.

Okay.

work inverter-only -- with Tesla product? able are you are So you qualified to the

Zvi Alon

have We the installations.

X.X, yes. mean Powerwall You the

Philip Shen

Tesla also is meaning that storage. sells an separate from No. inverter

Zvi Alon

Okay. Yes.

Philip Shen

And with if so I able were was wondering you that. to up be matched

Zvi Alon

So The is can. answer the yes, can. optimizers we

Philip Shen

Good. Okay.

maybe is XXE the opportunity that again So adder. now solar that there's domestic for content separate Section requirement an storage and

Zvi Alon

Yes.

Philip Shen

and distributed then opportunity has And the DG, think that's your historically can you about great. and growing business you you've for share -- shifting, Most been you. So Predict+ the generation. what talked of there

X-ish And percentage grow I what was can much maybe wondering DG? sub-XXs, think to about solar split so if 'XX, percentage, is so. or think when a revenue and very you mix a between utility-scale you that your My bigger near for is term. utility-scale solar is guess small the But

Zvi Alon

not said We we as also the mentioned large XX,XXX XX, my significant can an large-scale XX, seen want in increase announced an megawatts our do demand and it XXX XXX,XXX which is are the information but larger which becoming yet Brazil. I percentage-wise our tell and a on used and in I to in is you installations above. another requirements don't total, for the in in X installations those in C&I Spain, Pacific, have and in we have are the we -- even and increase utility-scale seen XX just and very So majority release we in we systems. more component of predict megawatts of U.S. it's us. And the systems the any devices, for was systems. devices Asia for I most don't Europe, true scale, see small And remarks, this

Philip Shen

not are These right? sales, distribution. direct are these And through

Zvi Alon

sales. The are direct majority

Sometimes, sales. the are but direct majority we do the to deliver distribution,

Philip Shen

bit the your given Okay. margin direct lighter the distribution? of is sales then is the volume? a comparable it sales little And Or profile into to

Zvi Alon

our not the unit the large the we we've is lower what's to X, products. So about product and systems, kept residential our the beautiful pricing changing. this the of It's price years. the that same last that to is Actually, X equal same. sell change it's product, and didn't price the Phil, didn't of our We We for it.

Philip Shen

Great.

well. Okay. following Well, forward that look story as to

Operator

H.C. question with comes Joshi next Our Wainwright. from Sameer

Sameer Joshi

answered. been questions digging just little gross a my bit of have Many into But the margin.

I did to that fourth in XX%. questions probably were you response margins gross the Bill, over quarter think, one of your mention

forward, going you've during so guided do you margins? well. commentary think of mid-XXs as level I the And that Because expect

wondering of whether was some of XX% some a was because reasons? Just product mix sort of other kind or

Bill Roeschlein

Yes.

think we're make XX.X%, XX% where was is QX quarter One I trend. again, XX% a and for ex doesn't tracking. between XX.X%. was QX, But ex reserve reserve

-- our upper -- we trend So mid-third mid- product that up are for figure. our set is XXs to set and

comfortable to we're that inventory that underlying that explain that's the margin past with had uncertainty what around so the what The that should like few dampened range. that's eliminating have they and quarters -- over to and we've they are. where helps And be reserve take better

Sameer Joshi

picture, XXXX. you're -- areas of buildup? for level is buildup you when for the understand looking And it. guidance, the very, this can at what visibility given Understood. on guidance good you've maybe confidence? the we revenue what you are XQ then very And probably your year, larger But good looking And have --

Bill Roeschlein

Yes.

XX.X%. growth. behind got with X So XX.X%, XX.X%, And here of the coming of downturn, growth, QX, X.X% in out QX us sequential quarters QX we've QX

$XX here being million sequential range realistic XX.X%. growth, X.X% up of a million but conservative point a $XXX being giving of we're to So low

X our done the book for we've us. see of probability strong the quarters, what of And that can continues think the So to incorporate just I best in highest at we've done you look job to last XXXX. outcomes over remain business

that got we're range. we've range a confidence so the good And providing is

Sameer Joshi

And that just that last Is tariffs might one next will your it. any the few materialize there quarters likely impact -- of Got one. margins? impact any over impact

Bill Roeschlein

that products production through Trump So a we when in to have point. of we And any -- question. be way our it this X. part, any is any targeted of But that lot 'XX we our at Thailand most went version a back version for indication the would XXXX, moved had not you-never-say-never in

answer So that is way. the second

Operator

this this remarks. question-and-answer call like I'd the to over his concludes session. turn closing Alon Mr. our At time, back for to

Zvi Alon

Thanks again, support. thank everyone, our want for for employees Operator? our their customers as and continued for well their for the to also especially want continued joining us stockholders today. hard work. I I thank investors as to ongoing dedicated contribution

Operator

Thank you thank today do have -- us. person you moment, for us One queue for question. for joining joining in another we the

Our Gus next from with comes question Northland. Richard

Auguste Richard

margins. gross real Just on quick the

that's think just for gross record was drove all. in a strong such you margins I I performance quarter. in wondering And what the

Bill Roeschlein

a of points. There's couple

We improve our continue our to costs products. on

a costing just and provides that's introduced into well margin. continue product, continues to to margin, do. a We've X lot as healthy the the very continual and work of X expand of down a go cost And the we and the that so process we

a TSX just margins. variable for And us family so very the basis, attractive on of is

that get seeing you a most of And the get most you're so you're here? these going of to where you're margin TSXs, -- quarter when high selling products

Auguste Richard

at recently environment the to full large year then, just a the how wrap given And an around or wondering, that for mind channel And want is the vendor approved for you're that company. sort dynamic my gone -- just I'm fill it. some you of Got of the visibility is. just list I visibility customer. signed getting on

Zvi Alon

point not is just evolves mentioned confidence though it even as distributors also from if rely visibility So our based distributors EMEA we on in grab offering. as and increase as about this just U.S. continuation. seen talk I my strong provides countries continues very the our a I one signed coming guess, with which the additional the very sizable there, in footprint one. footprint visibility, the contributor X And But we that no, far the on Obviously, to we've an last is it did and be that not within is will we us

Auguste Richard

for then And one just Got last me. it.

versus channel, what In sell-in terms just health sell-out of on of you can you the see comment the geographically? and

Zvi Alon

that depleted brand for into we I received can believe quarters the almost that all is I are last orders tell getting time. you inventory, of X-plus which XXX% new in no the

channel. or So we left have don't any the much in over additional inventory

Operator

Mr. Alon, closing your remarks? were finished with you

Zvi Alon

Yes, I am.

Operator

thank Tigo's Earnings want just I us XXXX Call. for to for Conference today Fourth joining Well, Quarter everyone

may day. have wonderful disconnect, and now You a

Tigo Energy (TYGO) 11 Feb 252024 Q4 Earnings call transcript