WBX - Earnings call transcript Q2 2024

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Operator

Good morning or good afternoon, and welcome to the Wallbox Second Quarter 2024 Earnings Call. My name is Adam, and I'll be your operator for today. [Operator Instructions] I will now hand the floor to Michael Wilhelm to begin.

So Michael, please go ahead when you're ready.

Michael Wilhelm

Thank you, Adam, and good morning, and good afternoon to everyone listening in. today's discuss joining XXXX second for results. you webcast Wallbox's to quarter Thank being web at over accessed event CFO. Wallbox's broadcast This is Boada, Luis the today Enric Investor Wallbox's of CEO; and joined from section and our am website investors.wallbox.com. I by Asuncion, the be can Earlier which from be can second today, found press ended quarter on results issued announcing our website. also June we our release the XX, XXXX,

that are would I to made on like December to XX, from that the SEC, with that are to everyone subjected affect ended the results the statements Form fiscal call the future future in year relating begin, March public remind on financial the certain filed those factors risks detailed Annual the XX-F filings anticipated. today's differ could including performance we The for results Report may XXXX. materially XX, forward-looking and/or uncertainties be company's may risk XXXX of Before and Actual in most company. recent events

you a so Investor can of We IFRS the Quarterly Relations more measures Investor on be follow posted best format reconciliations use presentation this obtained these will and non-IFRS the section, please in results. Also, included these financial our that statements that certain note easily copy with website. call section in prepared Also, of financial from of actual can management's measures assessment the of today. reflect us on remarks website, Results along under presenting are the unaudited be we

way, to out it So over the of turn will that with I Enric.

Enric Asuncion

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

in I growth. from of the company's round. comment million This raising the strong of highlights shareholders, a needed $XX our Generac including main go yesterday, was capital million into Before QX and to XXXX, investor support ensure investment the the on as sheet as from to current balance this $XX number strength strategic like we would announced

charging to solutions. and trust chose to award-winning with leading competition, the EV building America buy We sale our a their share in of extremely price the follow-up of initial per the continued company products the at QX to continue to management North us saw Customers order additional of an Generac thousand investment Pramac are pleased with Out energy Generac-certified growing the allowing wholesale solutions of agreement lead and can we and Wallbox's this X% Supernovas and number of and dealers, through Europe. minority of which and first set charging to worldwide the undertaking initial Plus $X.XX Generac during have investment. In of space. In excellent the December investment conjunction their initial Pulsar agreement, agreement also the a Through Generac retail nationwide. was in several in in purchase in company chargers results the the finalized we Generac's an distributors warrant has this efforts investment, through XX-year EV right with XXXX. online,

and storage battery towards buy Battery will open grid's vast array a will limitations. initiative system strategic a energy charging commercial from additional expect XXX products strengthened the portfolio signed globally. At will Supernova these strategic Pulsar be North AC Pro, of integrated whereby batteries solutions from smart which same Generac. growth up management circumvent moves, reliability have plentiful products Wallbox with of now We we the opportunities time, America, to and added including

also with fold software, chargers our integrated load when seamlessly For power batteries, to integrated high our SIRIUS. energy solutions demand. power expand yielding peaks to satisfy power DC management capacity our charging These fast with example, like for system, management of called

to same U.S. keep leading in an and that ambition partner We vision the are excited the unparalleled together working a about at so growing with has pace

fast accelerated and ABL growth the deliveries further the for ratio similar date: in million softer continues in growth to it benefits XX.X of of diversification quarter ABL sales was in noteworthy initial overall been Supernova but Germany, previous the to positioning The presence more and up has of these customer and the compared our margins in labor car growing cross-selling cost announced to resulted support and second a charging to for allowed this market. park quarter highest the AC, with to will DC base. same the remember points DC XX.X% proof AC achieve see this needs. able the remarkable sales ability important during XXX line for The growth revenue U.S. EV and sales period by the the gross of to a compared preliminary cost XX,XXX of We highlight sites approximately detail is show the DC to it our expected we with evolve mainly the units to XX% eMX we the go total, strong XX% unique same in XXX. results globally, charger year-over-year by in that the steadily the designed we last across eMX quarter environment. continues with in in to in North at especially to AC show is margins year. us one year impressive improved but level, revenue, quarter the year. smart Wiesbaden, making demand We year and continue the the cost Europe, hold products on quarter, range installation opportunities as our our and points strategic and initial quarters portfolio the that group in year-over-year, impressive initiative. the product Luis ABL to to period. Gross compared in a and board biggest XX% of sales up is testament DC early future. picked specifically of July, for in showed a DC It charging XX% year, types these growth Europe. tremendous than North after EV to almost top the to point a for the ABL, great in XX% by can XXX, to reap charging in driven than to announcement sourcing XXXX strong provide last by last XXX similar of the of to sites, QX delivered this in a region. In installations. The We of more shortly. On and to both In XX% quality consolidated this XX% America compared in contribute period parking engineering to the steady taken One solid stood year-over-year progress a we and a an including were the our the growth America. ABLs with same AC industry saw results with reduction XXXX, Supernova pace future the power-to-footprint charger OpEx. basis an contribution public DC achieve previous the higher of see This XXX consistency. great units we of EUR remaining to Now, driven quarter costs believe actions DC is sales despite first in improvement believe reductions our QX wide the

to operations and reduce continue the we our group As the additional we cost see optimize opportunities synergies, across leverage base. to

as a that represents at in reduce improvement year-over-year We EUR which and than to continued compared the are XX% we loss, now excited XXXX. quarter, XX.X the EUR more million, million landing QX second improvement to adjusted X EBITDA of

mentioned slowdown acceleration main our we our to to holding path believe back to current the that As of profitability. call, top is future revenue line, market last catalyst Despite very line profitability. during EV the we remain earnings committed top our the

control focusing EBITDA achieve So what attention breakeven we this fully can are will doing and on to our adjusted continue year. we

both XX.X diversification the for second us progress year-ago being strengthening Southern XXXX, and see position XX% represented XX% Benelux, million of how the the total line and XX% and For team softness of Pulsar a year-over-year pockets grew million Supernova the this some of a to or both consolidated saw contributed with sales XXXX. growth. advantages compared consolidated capture well strong XXX in scaling newly and Nordic the QX can strength growth. AC the global of Europe show compared boosting see U.K., the were by as a We more strong and performance as The XXX% or APAC the than DC our North activities. we to from We DACH, countries, quarter XX.X to cross-selling revenue, period. our in very product the sales. EUR EUR their for U.S. to revenue, improvement. while growth We segment XX% of XX% and and sales and geographical Pro EUR Congratulations and additional ABL's launch LATAM delighted a America EV effort AC year the of sales, in showed and accelerated eMX, help by successful portfolio European AC of of the XX.X million, AC of commercial quarter market. last contributed experienced global player introduced in the XX% in sales the traction

fruitful market After XXX,XXX EV XX% in Luminus, as in market. home provided chargers official of start EDF EV have has the customers continued a contributed local a has increase network. now the last now since Supernova Wallbox Wallbox purchase launch Home Lucid, the orders U.S. announced total, and U.S. charging of charging part in a recently, long-term to utility, charge from period, will the more expanding quarter, become up we partners, prior become earlier launched is Stellantis' shows the they Charge its we commercial diversification from residential further seeing interest entered Wallbox in the this to been an introduction setting the partnership strength example, recurring are of for which to we credits that our quarter, offering and now or XXX year up by to second to the across and, support Europe the into Luminus received, in what continued ones. a a solid very Belgian distribute XX% solutions business. and we to providing the dedicated has signing existing its residential UAE charging When choose of year resulting rollout relationship. DC their new Generac, of station relationships an partner public vehicles. us this to the commercial expect with the FreeXmove likes the Group, In FreeXMove, of the of our the customers also well EV, revenue are and in of Pulsar and We get chargers. over case In can sold Pulsar Lucid acceleration. FreeXMove,

We trend are seeing Europe. the same in

services Software, of growth our Supernova commercial for our and quarter, others X product revenue. In parallel develop nicely second with our total EUR XX% to to quarter-over-quarter the we contributed to expansion, line. continue the representing million

experienced yet. improves XXX to the charger in the power highest broader product maintenance to We for EV Increasing fully or kilowatts operators, accessories. we at program have without high-volume the up and gross for margins, especially compact expectations up version other are the for power-to-footprint to at of adopter ratio an to simultaneously kilowatt we to is systems compliant models. in quarter. for as The services return expect contributed the consolidated Pulsar fully XX% resulted XXX design the X with Supernova space, margins. little power lines is and gross latest a improvements product up has customers' fast new efficiency, early introducing award-winning Supernova the that options. on newest that X up close DC XXX focus product designed any can AFIR the continued while locations. minutes. charge installation and addition believe It need the XXX of and The This is first it September. We EV charge and as the to to particular, XXX maintaining introduction of kilowatts, Supernova as cost XXX In range Wallbox's in significantly more in the in investment our strong our miles meets place X strong Supernova Supernova powerful which point shipments which the to a have same improvements meaning each. charge EVs regulations family passenger engineering the Currently, XXX

already more the are especially to generation moving mature We the XXX which of North Supernovas to more new manufacture, Supernova are America. and efficient

with an growth geographical long-term EV of a transition charging We in most about competitors are the let's path, wide Now, irreversible potential. range solutions remain on about EVs role play talk very the that that we and and positive future our footprint. believe market. than larger we and

a We are softer in the charging shift growth preferences for residential seeing customer market and much in DC.

Motion, subdued and year-over-year Rho expected decrease in in a close all increase million the in growth quarter, our consistent a graph, very This XX% differences the there double-digit is by representing to of I markets, reported growth. as to X% everyone core in and, in growth second Europe, were rest X.X increase show EVs instead rate. As the quarters North XX% over America world, the the a of the there are sold in

fundamentals infrastructure on being solid introduced, it irreversible, comment massive more inflation uncertainty is in over you further interest our policy financial place However, adoption I'll are more are public is being and charging slowly to and front. Luis, being put on the normalize up. any for set models stage the to These details. rates as despite affordable expansive turn

Luis Boada

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

sales improvement margin transition regions. With in product results by the softer XX.X% showed second XXX but DC to QX's growth contributors. charger our with trend, of the by phenomenal in quarter generation to strong the market quarter, significant increase, gross programs. the continuing AC for Supernova with the expected million. margin were basis XX% the points improvements offset and thanks AC U.S. quality biggest performance new in Product a Our came year-on-year other showed global was growth and lighter driven in year-over-year sales, This EUR fast XX.X in than a

Our XXX was an is exclude When this almost by impact, reported provision. the higher. we gross impacted inventory margin points margin excess basis

we for future significant we how and So are see are we with on margin, pleased improvement. momentum tracking gross

was the path to to year-on-year. initial an profitability In OpEx make already net XX% we labor positive. and were main and continue the our XX.X decreased in We cash June priority XX% cost down appreciation. and strongest year-over-year remains our quarter with was loss term ever. managing a EBITDA in June quarter generating million, QX adjusted for quarter-on-quarter progress The EBITDA representing it, long as adjusted milestone month EUR and costs month our Consolidated to base. were the capital strongest improvement.

financials seen metrics: goals. This managed quarter freight EUR operating of expenditures in plus contribution this year, million R&D adjusted to period different ] our which capitalized cash warranty, QX looking proof main did of not non-cash from is other cash So ABL revenue, the debt cash readings the and solid costs growth, through [ bad generation OpEx achieving components, items. costs, and labor million of last a shows decrease towards our severance profitability in decrease to creating the last costs and We minus include and and the XX.X and year personnel go. Cash X expenditures EUR significant one-offs and flat Overall, compared EBITDA. QX. show XX despite at for to which to and revenue we costs XXXX focus QX slide down the yet. When to a points costs have present compared releases, cash our have underlying X% million. year same from provision benefited this should But for the being are XX continued operating tougher comparable EUR the read slide,

quarter. CapEx, new expected throughout remain we continued to quarter to equivalents, XXXX. We the initiatives and accelerate cash EUR $XX sheet predates reduction balance provides revenue company's instruments. by invested R&D, sheet efforts, sell have debt yesterday. with will XX to second balance generation. as the throughout power we approximately CapEx the what trend our and million the million million cost financial the led with shared reiterate of million of of XXX,XXX EUR position quarter, X on to Wallbox's chargers to Considering Long-term light, was ability excluding purposely quarter quarter, XX.X comfortable focus X approximately equipment. previous cash, strategic the less announced we ended end charging management investment, continuous are which, this get investment EUR Generac in and will the manufacture growth, on production products. capitalized property, future This confident cash again development the a and With EUR decrease believe the This of To higher was was and strengthens the at the last than more investment the EUR capital world. plant approximately million and

factory and or X% for We inventory for go we inventory than in do scale X down the XX.X are as is XXXX to improvement you reduction is so. Enric, expect full year the already the sequential turn up in million goal and have cash back provide some central invest EUR a bringing EUR I'll to value. Optimizing to the inventory to place. We delivered. objective of this commentary. with close we our free keep million closing right in to XX total the ample million consolidated ended The in the to group, less another to is quarter capacity EUR it to key year to on track

Enric Asuncion

Thank you, Luis.

look milestones securing half In we a strategic ranging market. introductions, environment, back the all award-winning-product of from revenue well first in fronts at growth, been the difficult I As year, executing achieved the this is trying added And on as inventory we competitive this margin as as improves I well our and cost improvement, entire partnerships all to the adoption. growth, mass for cycle towards reduction. position of current think navigate have industry

analysts. have best we the that, we the have the have ready position benefit the production to We the people, we our take the and competitive we're long-term. With have technology, questions products, facilities, have we we have from to funding,

Michael Wilhelm

some our everyone. Instructions]. you Adam, for instructions analysts. have [Operator back, Welcome think I

Operator

from first comes question Hayden Leanne Canaccord Genuity. [Operator Instructions] Our from

Leanne Hayden

progress the this quarter. on Congrats

plan this not, of to quarter you EBITDA you just milestone? in And to positive fourth expect want the I year? do that still to be then when First, ask, do if reach

Luis Boada

I question. positive Thanks us referring go? to hear EBITDA being I for couldn't in you the that clear, but were year to all think the

Leanne Hayden

Yes.

Luis Boada

Thank you much. so right. All

So generating June priority shipments, cash. to And positive. we it top are to saying, what of said we as continuing improve with were we're already we levels is remains our and presented, and alone, higher turn profitable in we as that,

show expanding already cost bringing are we And our So points profitability. we towards that our financials are those base and down margins. meanwhile, our proof

all than but ]. experienced profitability, in will the the I slower know, reality we to been costs of we And and So aim that as as continue we challenge that, bringing kind that positive EBITDA a said, to that our for has our we've is market margins continue adjusted to [ manage is that as this anticipated. year,

going best that by do we're to So feature achieve year-end. ] to our [ the

Leanne Hayden

Understood.

Okay.

from one me. Just more

You've please free bridge you cash or a raised additional provide please? us needs flow capital yesterday. Can positive, million $XX to any discuss

Enric Asuncion

Leanne, thank question. the you for

to, So sheet levels. as not was sure We our growth to we continue one, the decided has strengthening able expected, we to we financing balance our were -- growth. -- great growth at it's make although it

almost current to adoption. also We and able towards cycle are navigate mass XX% be to year-over-year growing the

have impact as sheet And not funding, -- -- this saying, to or was actually the generating believe until Luis this as we profitable. our by So reach our profitability. be does commented, committed to we balance slow end, comfortable to start cash. we've very down at position, that we year a efforts We're

until additional cash company flow. generates expect funding positive So don't we the

Operator

from comes from Scheibelhoffer question Stifel. next Our Alec

Alec John Scheibelhoffer

softness some core to America off the alluded your of terms the as North pace to, well just growth the all in in of sales here, as call, kick markets. So during of EV us you

-- unit quarter. they sales However, posted your of kind a AC solid

you just puts of the that So the back the you're of the for could of thinking of year? I break volumes of kind and wondering about and takes half how if some just was drivers out

Enric Asuncion

Alec. you, Thank

regarding our which the question So growth I AC. the growth in and for in the main are understand -- is drivers

EV create So of part lot strategic and just are the spoke been We a at the end, deal, these U.S., huge Stellantis in obviously, these announcing about products value. the manufacturers great starting growing, as with programs car a these because This and advantage group. have is sales of have we continue which there's have. through now car manufacturers we is we FreeXMove the get -- between investment to all agreements we

Stellantis. with program this have We

Nissan, agreement, have yesterday. Generac program we the also with We this expanded

deal brought So with end, installers second we products partner have. Generac in great year And closed AC have already become America several to They products take initial earlier many And is X,XXX this and their and thousands nationwide. units is them that the almost the order. recurrent as our at them part of of a North ecosystem. our a idea of of advantage an

portfolio. America, Pro. on we now our product. additional in an in parking America, Plus but huge North companies. our the is thing, right to there's It's this also, have is AC sales agreements. Pulsar So from of product a have expansion strategic expansion more in the come used And Pulsar which now Also, focused commercial North We additionally,

we we have really we And is So, in which now Europe, our are a we Wallbox sell have a how North in and year, this everyone -- very it ABL, More we in Germany new we end, product, strength different which now, segment done important a bringing all in And you than an brought key product finally, acquired is world can give idea, products and selling in company integration, is our the performing. If that everywhere. we Europe. is country market. that, these market, American it's to well, to North are all team the happy second when from last apart channels the the after we eMX, going at the Germany, well go a attacks that with America. biggest the integration,

market. the in end, European at additional we can products it So, the sell brings

Alec John Scheibelhoffer

as the of up reference standpoint, XXX curious, the integration thinking And the how made year and of progression some the to new you mix -- half that, in to a DC the the I on was you're margins Supernova? from solid margin shape follow-up how with then, just the about of just back kind made. Great. XXX a just you side

Enric Asuncion

lot potential of a see improvement. We of

is are improving. our margin We DC way the comfortable very

in We improve are are and already third we they of to still margin. cost-optimized, of lots very are products, generation our the the opportunities Supernova and seeing

So we is seen, XXs you've high get look AC, the from the there's as inventory. mix DC them close at here closer it because, we reducing goal today. are margins, is to our the XXs, our to to fast-charging When a

So our focus quite optimize for in EUR reduce AC Pulsar models, total we for -- of the gross products, where we in to inventory, inventories, are the Pulsar we really, have margin also margin Max, of Pro, as XX some so, high. the cannot those new margins like million But would like. models,

So, of taking we reduction process have already margins. inventory, have and inventory, advantage the the of strong in where we don't

as We taking into XX% have also we ] which of improvement in ABL, electronics integration the the an of vertical next advantage year. And And in we group. PCB synergies. of an there's finally, see Wallbox, the a go [ our lot manufacturer RS the above group, our is

are we that we sharing, vertical sourcing. sharing things are our strategic these So, integration, are

and in expect all we So, these these year. that start are next are to synergies, as the programs place, we them seeing start

Michael Wilhelm

Adam, questions? do have any we additional

Operator

further No [Operator Instructions] questions.

Michael Wilhelm

I all to your today. found today's you like good joining thank Okay. hope of We Then time. us use you call would for

can if way. we Let help you us any in know

Operator

This much for you your today's concludes very Thank call. attendance.

disconnect now your may You lines.

Wallbox (WBX) 1 Aug 242024 Q2 Earnings call transcript