WBX - Earnings call 4 2023

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Operator

Hello, everyone, and welcome to Wallbox's Fourth Quarter and Full Year 2023 Earnings Conference Call and Webcast. My name is Charlie, and I'll be the operator for today's call. [Operator Instructions]I would now like to turn the call over to Matt Tractenberg, Wallbox's Vice President of Investor Relations to begin. Matt, please go ahead.

Matthew Tractenberg

Thank you, Charlie, and good morning and good afternoon to everyone listening in. today's XXXX discuss Results. joining and Fourth for Year Full you webcast Wallbox's to Quarter Thank of investors.wallbox.com.I'm This web Wallbox's accessed section and is CEO; can website event being our be from broadcast and Jordi the CFO. Enric today by joined over Lainz, the our Asuncion, at Investors everyone on release like Earlier December financial can which uncertainties performance XX, of press from certain and/or our we events fourth I'd announcing that found begin, website.Before today, company. the remind on to relating be we are issued quarter made the to XXXX, that also results future future forward-looking, and our subject today's and ended statements be year risks to call the may Actual results could differ materially from those anticipated. results recent unaudited be company's affect XXXX, including December that results. reflect in The filed XX-F management's the on SEC, ended March that are public will in the with the XX, risk assessment most presenting actual Annual Report IFRS of for XX, best format financial on in statements Form may the filings year detailed fiscal factors XXXX.We that of we note the these posted measures in non-IFRS Investors are certain and reconciliations please Also, of on this measures the on presentation our included financial website. section call use way, along these follow a turn with the Investor it Relations us Quarterly be with Also, website, I'll of prepared easily obtained today.So copy out under can over you Results can remarks from the of more the to section, Enric. that so

Enric Asuncion

joining everyone, you, Thank Matt, thanks, us today. for and

position current EV we'll the in In our addition the some and spend reviewing time full fourth year and discussing it. XXXX, from highlights to market quarter

focused quarterly are excited we year. will the share Jordi joining our forces. finally, discuss reduction will and a and our additional Generac financial why He what the view thoughts We as will will of our prepare in balance market on about into also XXXX. announcement return on I some sheet on achievements. our performance are so cost color new we review And we and offer some from dig to December for

from research analysts. end will by taking questions We our covering

started.XXXX partners. Revenue get driving some EUR million, let's many full with prior celebration. action, both exciting and for year demand the us essentially with So flat softer for totaled of as than the result This a paired environment well reflection milestones XXX.X year. year inventory was corresponding from challenges was as our anticipated adjustments channel and a busy by a

it We in A process placing outcome. the long-term items It the improvements, launched successful forged new XXX of EV our equity XXXX.Turning units well the industry in up growth of DC new revenue and XXX% offering, our as XX% growth to a the cost anticipated. year operational during almost of path FreeXMove. streamlined partnerships we reductions, of extremely of XX.X and sales DC EUR units million, While X,XXX has year. these EV from the made brands, year once within the solid for curve leader our our and and and focus we the to strong results. us global almost delivered for the us more And and innovation exciting million those almost acquired moving cash an was and EUR Generac, profitability AC came although mainstream, We XXX,XXX Costco, and period, base and meaningful including Europe, again through in million of of at drove milestones.We X a is our by set efficiency EUR variability from quarter. chasm driven Kia, debt in was of ago largest growth. result ABL with of raised expected organic of our financing. with in achieved and cost executing products, Organic market inorganic crossing to up several ABL, challenging outstanding early and Revenue range forefront on accelerate than year-over-year. forecast adopters adoption a to contributed from plan, performance year, a inorganic strategic disruptions

portfolio fourth In well on product obsolescence ABL, in for we the AC points saw Our almost in AC was costs. delivered positive almost units and AC were sign globally, impacted as healthy basis, period.Gross destocking quarter-over-quarter and some North XX.X% which the we but XXX Sell-through and margins XX% total, moderate growth. was America, shift, view and of Europe sell-in by during mix XX,XXX the towards growth including a units and almost as quarter, Europe in unit continued region. DC a warranty

We continue mix that the to midterm XX% changes believe through to in strategic engineering, gross to XX% our cost sourcing, product can and the to return margins range.

in We very and XXXX was additional quarterly reduce will front cost expenses program to to XXXX us allowed center, X.X actions cash by work an this.Our hard and EUR reduction Wallbox's sequentially. achieve implement million in

of a original have of reduction are EUR XX more quarter than and basis, with Due transaction ABL, and spend that sales total the XXXX. of the exceeded a of EUR proud XX.X includes more of time ABL consolidated X announce to a adjusted target to the EUR X achieved previously XX%. it Jordi reduction million million representing months We of timing year-over-year will a discussed, XX on costs. that the month improvement minute.Fourth EBITDA we was impact and integration, loss which million have in on in brought

quarter, QX million XXXX. from loss EBITDA improvement Wallbox of was representing ABL, XX.X Excluding stand-alone the EUR in XX% a adjusted

from These EBITDA million fourth be adjusted contributed sales, of on to and you forward EUR EUR contributed and America driven XX% consolidated XX%. global sales X%. million XX% largely the EMEA on of million revenue, milestone achieving important the X.X X%, sales EUR ABL, percentage whose Europe down continue XX.X in the X or the million region.AC or our by by offering. with the look was represented were revenue. mix total consolidated or of DC and percentage was positive celebrating of to to customers, million entirely continues QX APAC DC the of XX from fast addition North see points revenue charger XX%, in or X.X LatAm second-generation XXXX, drove EUR reception up X strong XX.X our June the driven points. contribution EUR Supernova are call.For our We focused shifts quarter quarter DC XXX, strength approximately to

EU, XX%. it's AC. capacity quarter approximately due mix, To be units in through ease as XX, innovative points large receive fast-charging a profile continue offering.Margins customers, XXXX Atlante, of Supernova and Recall sold than that XX% similar XX.X make November, And accessories brings selected new, XXXX and services, contributed Osprey, lower that we by project BeCharge. than recently was the gross EUR to generation were to XX,XXX first and XXX announced preferred saw to Software, the In the XXXX our in from the remaining Powy, aims we to and production which Iberdrola, France chosen provide way to XXX, Supernova expect while grant our impacted product, Wallbox Atlante, high-quality across still numerous XXXX. higher over to our quarter. Italy, including X,XXX install DC color, Portugal. the partner product they've a margin as million Spain, and by by last we points which

will supply, sales solution X network to one shift some extensive is times its Supernova, demand of that for as Pro quickly peak commercial network in need Directors.Through the well The our utilities strategic offer highlighting a a COIL. brand X,XXX load XX-plus Together, strategic the giving minority investment populations residential, space. and the in commercial change enabled EV bringing a unique the while new to European installation of energy and anticipate Pulsar continues is impactful companies. Their solutions, chargers transition independence in per with relationships addition Generac, distributing strong time, reality. the investment new full our that we we of store share, in suite through charger to Wallbox's history well-respected Board and to turn, offer led and will of the the In million energy important most cost stored for distribution product in see to renewable at customers. XXXX. execution opening a will it's becoming strengthening generation. So impact the EV with completed charger, It an charging for relationship, watch. years the of new multi-tenant money and America tapping both lessen.Generac see devices critical X saving their and transaction of Governments and The the way be Industrial a Pulsar announcement market selected markets, declines, seat exciting owners included sources for are services to Quasar opportunities and in on light by DC energy. of to most through security companies the at fast ability energy events network in the of and commercial balance mix consume profile accelerate Quasar our our And the OEMs and in dealers is that applications, a a while be to we storage one will removing has of Generac's fast agreement. names as our global and starting access Generac upcoming doors.Bidirectional U.S. for remarkable presence was on charging customers Providing resilience companies. price both open Wallbox's value both huge vast its inherent network to and Pramac power will during includes North important Commercial for the outages, $XX.X energy investment experience extremely has commercial time, including power The over will against offering allow and of bidirectional DC X, Tier our as plan Plus the $X.XX utilities and by

I which roadmaps, will in storage see. competing exciting necessary also think to combined aggressively reduce time power. want lack from and utility the That's new to costs marketplace. architectures just with It's adapt the of collaborating reliance look potential Generac what team, we accelerate in moment aligning will look The numerous has configurations have. the the needs in. market. applications Pairing and on and watch to reduce they combination to requirements, exploring for to a operate environments installation given markets We the that the we battery new So customers leadership Supernova grid, unstoppable.I a discussing with it.We're to global one of the their forward be like and to capabilities product spend

developing range of innovative on like might improve we have a global see Deliveries more and billions globally know, technological are than number lumpy continue XXXX, spending you year-over-year. of of been actions XXXX. for geography million and bring pocket driver As To down and the deliveries. bought accessible improve there new early scale, disappointing. public of, price The are key industry as Kia's high attractive to expect the AC success value air of which margins, EVs. by be large the noise. EVs There sales vehicles.We continued economies the and about adopters the buyers on will adoption charging environment fully we we infrastructure, are you believe major and to cost price to current further than of have of these to correlation products present in into will OEMs a XX% EV quality, bring of which factories to a is commentary proposition vehicle comment including, adoption, well of parity ICE XX.X entered, I'll new of stronger that us, are EV media in growth financial driving and incentives million positioned a over RhoMotion turn with in to that opportunities.There were that technology some XXXX, be and forecasts reach Wallbox and are function models, competition.Jordi, set help and financial large to breakthroughs it we you is curve. XX based models, exit To reliable that expected Ariya, are number and our sold well details. Nissan's where units deliveries to OEMs in EVX in our prepared on created and EV It's continued understandable new scale representing almost the reading in we any ahead elements and adoption

Jordi Lainz

morning Thank to you, everyone. good Enric. Good and afternoon

Margins in timing both want AC, European million the the identified able to were thank by plan to results, thoughts Our results make and and on this softer a continue the in intend discussed Consolidated improvement to year. to on commitment a EUR the solid themselves warranty Cost XX% were and upcoming amounted and sequentially and by result reduce quarter and detail the were and contribution target, I a controls further fourth stability obsolescence employee DC the as period, everyone fast calls. Wallboxers results the AC demand, present throughout of quarter on increased dedication mix XX.X% shifts, all DC up latter related in total destocking both up what was more continued from It's may their within you've sales, charging yield these and appreciate anticipated, On EUR we together remainder the charges.We the helped year.For was for for impacted ABL. cash have of to I'll taken gross reach XXXX, quarter and than to ABL. came product additional previous margin which expenses and of remediation revenue XXXX. opportunities this driven us provide basis, but to strong fourth revenue and XX.X year-over-year share some XX% we and XX.X year-over-year. achieve. million, expected, excluding OpEx, in initiative. channel

margin anticipate and excluding those we extremely year. have of focused prior conserving adjusted to quarter. we Going adjusted from previous allow reduce and able quarter. and plan EBITDA to forward, positive as the we approximately second per expected employee OpEx including million XXXX. in or EUR the the basis, the representing were adjusted On been XX.X implemented, to ABL, ABL, this to achieve in when and the cash, efforts.Here, and focused we've quarter was full a improvement remain XX focus on payroll over quarter, EUR paired XX% we year the loss ABL million, is for expenses, with We over EBITDA. to us quarter be the adjusted our shareholders year you gross benefits including This, We and combined, the keep XX% from EBITDA prior growth.Consolidated commit initiative on to period. year metrics last by main a stand-alone both see benefit, loss Revenue, resulting re-accelerate EBITDA improvement cost the tangible cost have seen X XX%

trends in that the that December X.X approximately EUR debt equivalents light, of did R&D, with is the fourth is trends period believe spent the with during cash XXXX.The with at XXX at against after EUR current The a events cost are million revenue of utilize property, paired from direction. Long-term instruments. XX have was here As million. as and moving to reduced very in continue cost creating.CapEx, X We've cash financial year. in us made been with not excluding EUR the again our cash, EUR reasonable within reach. goals. right of XXXX EUR to we EUR see, XX The from you and reductions million plant million end approximately million shareholder cash can we represents personnel the and to costs the our ABL. ATM value And not cost, progress Combined, million, million million XX cash capitalized X.X increased exceptional was in reduction bringing all continue a we the XX price EUR OpEx the has went this to excluding EUR believe profitability reflective XX% We are with fourth to gone you Wallbox's aggressive allowed base, should we quarter equipment. of end see ABL, stock financing on

as after than for million full in falling EUR EUR X.X XX gap demand factories. the For projections. initiative which our the an and brought EUR to evidenced target the another XX original environment versus have current or year levels ABL the ability we XXXX their spend by X ended the EUR inventory, million with third is more with year, XX.X on, EUR we million the spent quickly from XXXX XX by XX.X significant EUR in I'm progress new million XXXX.Inventory levels versus million pleased our opening XX% million. Wallbox amount is at made reduction appropriate given of with adjust quarter

headcount, Our bring to quarter-over-quarter ABL, meaningfully goal X% our on of our by a is This rate.Full-time also will cash the continue to by total burn down year. basis. people XX contribute to inventory decreased the end excluding reducing or

down brought may to the the Enric, back slightly of level that, provide come to in XXX I'll above commentary. We see in closing ABL people.With it reached it specific and QX some number XXXX areas. turn with are you

Enric Asuncion

I'm We've Jordi. well hard to Thanks, worked for the ourselves position very upcoming XXXX. enter as optimistic year. we

be to brands Our engineering Supernova Pulsar in Generac. new theirs integration be XXX will And be through ARES improved margins fueled distribution the products sourcing components products with growth or Generac's our negotiations. in Europe, capabilities, of Atlante, Kia.Our like meaningfully. extensive the cross-sell It offering both Kia will and ability and our leading their better price and Pro, will leveraging more through will strong ABL's of continued Costco, sold Quasar cost FreeXMove, and products, key X fueled existing our by like will network. by strategic by XXX by to and gross products with and by it contribute partnerships vertical products Wallbox's by to and U.S. be new by Pulsar fueled customers, Socket,

and and operating management. to through be continue will costs optimized personnel Our headcount controls disciplined

strategic reducing profitability. in be of much in complete, Wallbox need will for our our additional rationalize and milestone history. opportunities management, further global will the leveraging and growth. year utilizing footprint, by infrastructure across XXXX our An these, achieves components in cost we As while important to benefits.We leveraging reduce investment will also efficiencies platforms, common continue to a a explore CapEx, of multiple And inventories is result which vendor

operating positive margins, product this all which the and highlight is have lower capital summary, gross capturing partnerships, our including allocate growing and that to us M&A, and you and products, executing significant expense model. us we and new while create projects, will improving believed in for the and commercial resiliency highest-return will new these we we're to meaningfully That's both who free market and competitors grateful reach, plan are organic For and share.In within year. the cash our set conserving trusted flow from partners, will off apart through means, have reasons, value shareholders of big shareholders, it.To business revenues of a us. innovation, inorganic while thank cash, aggressively with you base, us, we employees And

analysts. will hard We from questions ready that, work you are to to our ensure rewarded.With we're take

Matthew Tractenberg

To have each as everyone. then as that analysts, analysts. needed, ask to we with queue to time our allows. many if if have pose for you re-enter back, questions we'll one follow-up ask upfront, more of our your you This Welcome instructions you questions. and will get allow the questions I a think question you some Charlie,

Operator

[Operator Instructions]

Matthew Tractenberg

Thank you, Charlie.

now. I take first our we can think question

Operator

from Gianarikas Our first of question comes George Canaccord.

George Gianarikas

Generac is And channel some into nameplate the please but when I broad is and detail share different on to know channels? just be a going relationship conflict commercial there going the just be retailers? would the product could -- agreement, Any certain you on detail working helpful. there may whose on still What If a or whose relationship? of you're working strokes little the be

Enric Asuncion

you, thank and This is everyone Enric. George. you, Thank

paired is North next the for this electricians the the fast And important an access storage, working right Europe, we business, they X,XXX at generator allow of can are the are this charging plus have U.S. that commercial that to with also in actually Supernovas. in of storage sales, it's channel. they actually, plus in solar Level very be can the focus immediately or their is product on main America. sales, strong So will commercial this that already something which Obviously, they And in because includes step growth has sell a working chargers in now, parallel, agreement but X installers on industrial they're Supernova a space. industrial

make working are integrate this to also So together sure we we product.

achieve the to companies in So ensure both are are deliver first X Quasar commented very thing the third Kia, as [indiscernible] it. the things.The And goal. the April, going end be to X excited, these Quasar, the we start with to same have to we is it we're U.S., which at don't of in delivering which starting we

make companies We have successful. both goal the to

making they software, infrastructure their with connected with we branding. a ecosystem. -- their sure under while and product Wallbox and advantage our They are make of platform. brand we Obviously, our we are We provide software their take

can So the the if buy Wallbox with ecosystem. app you Wallbox Wallbox want things has and the you all Wallbox that ecosystem,

If can same. the the ecosystem, Generac you you want do

George Gianarikas

X ABL. contribution just And of kind you a QX. maybe financial And comments revenue EUR just on you a going? as on follow-up, mentioned also to the Could focus in us that's for how XXXX some give million perspective, from

said think What in from perspective month. we broadly can I revenue a ABL expect XXXX? you from X

Enric Asuncion

Thank you.

that basically, revenue. we of be XX million So and we XX between million EUR EUR will announced

direction. company are And in We February into moving When that it's like numbers, the look looks we towards normal. that the is it still range.

X we from the that an old had we has only company a of systems month been first the new quarter The to revenue, fact to given company. moved integrate

contracts to move have customers, agreements have to we We customers. move with and different

then make successful ] done operations. sales And the we've we #X, there's And be which And focus like restart of that what is priority not apart Christmas, making right activity.So XX we a cross-selling. on range ABL from which we will in had now, to Germany, main million look So EUR month. is XX when EUR we million. now the sure [ things that took December, week look X much last which now, was really

is which second The that can thing is the we ABL's of product. advantage eMX, take

ABL version other mostly soon we're ABL Pulsar Wallbox presence is And markets bringing we DACH not German and So region very sell ABL are has has to a where for Wallbox also it market. the company. because to starting

commercial for enthusiastic. accounted in and So customers our in ends both home extra charging looking in of both are and that we focus. charging, it think an products are will provide not They have I the spectrum revenue

Operator

comes Instructions] of [Operator Our from question Ben next Baird. Kallo

Ben Kallo

Maybe us maybe just you Can just on guys think charging? of update you companies. and and charging with both how the the home market some for in you backdrop has competitive at changed where sit it charging commercial tough kind

Enric Asuncion

Ben. Thanks,

AC DC think I charging to we charging. So fast have Level X differentiate from

selling And XX% European we coming issue, we've the our of had many, easing improvement we that channel We've presence if from of Level X it's million the in the you improvement revenue So markets. in sales. general, if grown XX% XX% in market is you seen the are at a DC acceptable fast peers can blue and charging Basically, been we an company high presence margin gross we've our Europe, that uptime, in a already today very less others, ocean. that has of an channel in EUR a when we've XXX% companies. and sales. inventory drop year, The growth think XXX and XXX important look launched we destocking than it been plus, QX, expecting look terms see more AC in just launching higher power I Supernova the Europe, recently kilowatts.In U.S., the Supernova challenging Supernova organic and that XXXX. given has many with has continue of given And we of our average the public in we're seen impacted in to X and most hit charging, fact in

Ben Kallo

you're much I guess, the of out announced most, contributing? how is the to think I just or you they channel, different out is And growth I'm it saw where offering I Wallbox spend? OEM your much how And charger, partnership take going Lucid time that. the start the of wondering channels? just that channels seeing a of

Enric Asuncion

Thank you, Ben.

the the in have many compliance with at And product. very countries tried the installation. I to all it's to have think their end, times challenging own OEMs compliance

regions, subsidies do have to you to claim to actual have able be different utilities. to to in to with be you different installation. be And have connect able You competitive, the

products there's work global not working that We working of that with we with is doing is example in have of different longer challenges one working it's a all with Nissan, and to collaborate in keep way globally the also in players competitor we we're sure of is player the can market, or charging also be EV them are markets.So space. provide But them them. the this the Kia, So for like companies term Stellantis BYD, OEMs. or space [ that's And believe major we competitive EV focus very with that the company. them example, be what every that, and in of brands most you the which with always the given ] for FreeXmove, some We're challenging we [indiscernible]. competitive of the the forward competitive. to that and them We and need be part a that's making

Matthew Tractenberg

that questions think in the I Charlie, have that Ben. all queue. we Thanks, that's our

of multiple meeting found with events call you're details to in going to the hope for we're website interested our that's that us your watch today's we're use be March. investor at a going go. because case, if if let So We you everybody Please time. in good

can if help us in way. day, you everyone. we great let any So Have know a

Operator

Ladies and gentlemen, call. this Thank joining. for today's concludes you

You may lines. now your disconnect

Wallbox (WBX) 28 Feb 242023 Q4 Earnings call transcript