WBX - Earnings call transcript Q3 2024

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Operator

Hello, everyone, and welcome to Wallbox's Third Quarter 2024 Earnings Conference Call and Webcast. My name is Charlie and I will be coordinating today's call. [Operator Instructions] After the speakers' remarks, there will be a question-and-answer session.

[Operator Instructions] I'd now like to turn the call over to Michael Wilhelm from Wallbox. Michael, please go ahead.

Michael Wilhelm

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

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

a Investors be measures section prepared these quarterly the section. Investor We IFRS these the on best format and we on of will results call certain from presentation Also, website. results. Relations Also, are the non-IFRS that included statements can posted copy obtained of in note the use please of this in our financial of actual remarks management's financial assessment website reconciliations reflects measures presenting unaudited be that under

more can easily with today. you So along us follow

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

Enric Asuncion

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

to reduced the take growth especially the EV main in of at China, to outgrown revenue and which of to in, quarter, market year. If compared market reflects end X% of have the year-to-date as in XX% we have a the today by cost the of in EUR the we the sentiment, improving significantly third of had ABL, we operate time and same continuing XX% period, grew look same XXX how to incorporating EV last even the countries, the million, current which frame reflecting America Before market Europe, XXXX, until perspective Europe. world, clearly in we would North the we our up spending only and regions XX%, is develop third put quarter highlights time are Year-to-date, discuss In after year-over-year. our CapEx like we efficiency EV light labor rest and by I we the while excluding are market all where Wallbox OpEx grow products. the the

a charging solutions. We in leader vehicle are global electric and management energy

We that have sold a clear industry, adoption, we and this this XXX transition entire in towards believe key over in our we and is but competitors. is lower happening, impacting towards through going continue transition is including It it chargers million countries much a role that the than more electric the mobility. to play cycle is X mass

more. This market already to share remain the but to we on hard regulations, continue EV volatility ranging the macro and against of plan a working on continuous last industry technologies, more in backdrop like thrive. X adapting in preference, doing would factors how a market, are I and product the lot we way impacts been results. have work fact to leaders our and to subsidies, from initiatives to environment changing We it you a We years, become agile our is to customer key requirements, mature new this with

allowing unit solutions of and organizational driven. and and our different have effective the business different solidify our has us support approach to business new core solutions, we and be manufacturing. Each types align kinds requires sales including First, this we of The adjusted has full With efficiently business of shape more different charging, fast operate a units business path potential a more are profitability. experience, customers, focused structure in to more resources structure, each customer unlock we software unit to create cycles. common to our segment

will to environment to and sell-out speaking the of market our focus The line best serve customers unit doing organization of we here and most pipeline. Based business and sell-in we role continue is segment. path key particular the we the matching profitability our according analysis identify this and means improving our to an top dedicated cost optimize efficient demand, on This support data, aforementioned to visibility the we the strengthening XXXX. key the been cash with Second, important have where current this are look structure detailed organization on our to and creating a as versus generation. help base to play will by way

inventory a process action procurement improve we Third, we to our to better optimize to of reduction and a to have detailed our materials efforts all in cost strategic I late sourcing. clear gross of partners Due just and are to margin across groups. stage identify in into entering agreements our plans ongoing mentioned, improve our to our manage partnership further our analysis we industrial the bill position levels. There we believe visibility, is product opportunities, are increase with

new expand our improved we products. further of with commercial of the top visibility strategy Lastly, revenue, and plans introduction sales have our an to on with on

product to As by our new the didn't limitedly. of realigning best chargers DC are projects XXX. installed and optimize products we come new XXX,XXX promotion Both we DC be Quasar and certified X bidirectional up by XXXX and in with Eichrecht the opportunities expected region open the Germany, and are charging or Example commercialization markets between Supernova sales market. Besides, our which is developing into portfolio In in commercial public to by our previously Germany and country products. than the country soon ensure to that capitalize we new revenue and continuously commercialization on drive region, operate include segment segments, only channels aim of in more EV to we differently the charging public alone, fast innovating strategy XXXX. existing market segment, by

million, up and historical Europe share the to of hold a Afterwards, of due XX.X from revenue third AC EUR in our EUR finally, and America, agreement the strong sales was on in one-off softer categories our customer. market with offer a million into impacted driven closer metrics. by and all quarter to charge bill market. related X% year-over-year Now close guidance. we a product look key by to I a and X.X will but for be return the results conversation the highlights going financial go a North specific revenue financial QX Luis will provide And will our at perspective and QX

everyone's with expectation, this We America. North are growth impacted subdued was excited our growth results. market European and in The our to

has For efforts inventory been similar a focus European America as XXX now we demand their accelerated partners. we building profitability. the we as remains from our add trend up the roll-out new previously as customers ramp steady continue for have DC, AC, North America, In towards in up saw highly see in and CPO shifted Supernova sales where North to

we during quarter, the inventory quarter, much in components starting the our and improve to more as product Gross or different heavily globally In impacted families, third in ample opportunity we of smaller certain are see competitors, position from grow mature obsolete base XX% DC many margin we of total, during we to XX,XXX and as period. delivered than the DC, become to we one-off than the AC sell. As a in by provision XXX third develop continue our units our slower market. was units

footing right to on we is future So this It provision highlight a choose that them, the the to not for cash out. setting important is success. business

important closer shortly. the impact, detail to cost and results. in quality keep ABL's we Luis group unmatched provide XXXX, to create and reduction operational our a this margins we reductions margins it XX%. the the of remember optimize level X% our We was continuing leverage to base. cost review the the to that despite to We OpEx, cost operations continue XX% we for product base higher synergies. pushing to a will contribution trend Excluding gross in saw down light additional consolidated labor reduction. Again, more in gross able in opportunities and on group these On historical achieve QX gross see year-over-year to across margin range and costs excellence were is cost to as

Third quarter XX.X EBITDA loss adjusted million. EUR at landed

adjustment to and our This due inventory quarter business broke one-off sales on last the with We profitable. improvement trend a seen the quarter inventory provision in making this unique a as the in path see the quarter provision.

reflected in benefit to and but improvements commercial we the and For numbers top accretion. progress which report efforts, margin we expect with margin resume in term. expect continues reduction be to future not There significant which from are yet importantly, most near we gross line new new products, to cost today, the quarters,

contributed or continues ago progress compared of was show in EUR million For the consolidated revenue better. North Europe, with total to the year third XX.X XXXX, quarter to XX% EV revenue from this market XX% growth. a grew of with period. and X% modestly the decline significantly of America Europe XX% strong year-over-year

of contributed market or EUR EV X% with XX% the in region million total While grew X.X and the revenue.

allowing Wallbox to represented further One My both is and start in quick portfolio new with the and starting partnerships EUR APAC region fast connector parallel, an in are leverage most in with of complete our is containing home, EUR X% specific X%. or XXX,XXX for our progress contributed LatAm solution and continue remains has an Home ABL, we socket, strong how including different is only a pay-off. recharger now footprint. portfolio segment to euro, our position Business We revenue. The AC charging, offer, markets. for clearly opportunities there weight we Wallbox in U.S. new are approximately and our making eMX important was partners. This Pulsar excited XX.X We chargers the X.X consolidated exciting revenue as capture our of In AC to is We or and where segment to integrated home, charge. perfect smart chosen diversify Wallbox which EV we as Pro. rural in this how we relative Pulsar and million, place. this increase broad as approximately XX% require of the business cable, business in provider regulation charging category to us segment. Engie see partnership and as is exposure sales our In another a our for in makes unique at leveraging this portfolio geographical ground and versus are their without Wallbox the been Plus product global announced the example the EUR see million in France, have

and optimize to X.X the between aim expected slower signing inventories. In by We our XX% excess cross-selling can to was DC new due sales the cycles create quarters are quarters. an leveraging existing up partners a longer quarter sales the delay of were are impacted the and third million order DC in revenue the EUR network. volatility and opportunities customer segment, therefore distributors and representing by in strong with sales the

trend, profitability we less charge and and I the or through are much network utilization ordering deployed. point network ports on the see inventories focused working do means charger As from operators by expanding frequently. currently that operators charge are by than This reach existing more

further base customers However, new operations. expand signing up and in continue our customer we

compared solid. activities representing continue mentioned on the million These If quarter-over-quarter inventory others our with and total the Electromaps, public activities, last EUR product growth. to services to XX% margin a quarter, our software before, gross the for we exclude showing third Software, XX% was contributed solid revenue. impact X.X be level of provision quarter,

as see products. versions introduce improve opportunities our we new also We to of cost-out

quality, in With target strategic gross this costs see upside larger procurement the We be XX% and to process, reducing volumes. the our focus the when market to on believe future. our the our leveraging improvement BOM will XX%, improve we demands partners further accentuated margin

EV future and to Last we earnings of call, so. market, the continue we the mentioned long-term growth our positive potential that do which on we remain

will EVs and take growth is it than that everyone clear expected is slowing. that longer the to However, transition current

of Rho quarter, X.XX represents with our third the by the core will markets, combined. last reported in markets we were Motion X% in are a EVs decrease year, If Rest same which North World. period those compare sold As the this million and America, in there Europe

as have EV transition billions comes with XXXX. solid, that on the view been by we we long-term opportunity remains Hundreds more Our invested optimistic it and into and car enter are manufacturers. of

effect. models and EU come more to into are New affordable Charging being infrastructure EV introduced. continues in regulations new the installed

less are and And but over us maximizing we our time, to us. We beginning and increasing vulnerable more to We our both control. At see or diversified are position of that have to we meantime, without and I'll commercially, the the our that same similar creating market the at volatility. profitability. industry, diversified competition achieving focus only scale is a the adoption share on what we a in we geographically position, making for There struggling, local regional believe continue opportunities financial you in further curve. will clear on are it and can growth details. the comment turn focused long-term on to headwinds we Luis,

Luis Boada

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

revenue XX.X results quarter but expected, third million, factors. are not impacted generated a year-over-year unique we the was have representing X% Our been by growth. EUR The as also for quarter

by provision other in charging market and and growth talked charge had requirements With one-off customer. Absent Besides careful after DC. impact, a would have decided offset specific We of but We about segments. expected. review continue new we recorded saw AC growth double-digit before, our new selected due we both XX%, with to to and million a developing a to North the is markets, to have revenue to Enric America service our this inventory. a lower the return Europe of EUR this gross improving X.X X This softer we with in introduce products than keep and grow in aforementioned, margin the has match do which year-over-year. we

a COVID components era, amount the products. The write-off some risk our provisions is at material We new supply opportunity following shortage out additional obsolete not EUR part for the expect some not acquired initial not used of is review. We come these investment. inventory the provision of being are the in components to As and to chain yet. the the sell a post an million. of peak and result, X versions inventory at a in nor quarter of see excess cash careful quarters This do recoup of

of gross the perimeter As would excluded general margins QX closer XXXX. have intact, the are instruments. XX acquisition, of OpEx decreasing Long-term would have costs EUR the cash, for Profitability few last the joined we adjusted despite EBITDA and continue XX which million. Absent years, top million adjusted additional already gross labor were year-on-year. reduce this financial down to Wallbox improvement EUR equivalents highlighted at was making cost. provision, X% investing end ourselves EUR and proof. cash QX margin ABL have we as of cash debt we the we our in by core was We remain range. if remain Enric, the generation the to The million aforementioned priorities. ended approximately in sequential Consolidated quarter provision, been EBITDA quarter XX.X the of future quarter. loss and approximately the our target and Costs sustained been with

plentiful capitalized globally and once cover portfolio to We R&D, to in capabilities excluding state-of-the-art have In light, This represents capacity. Considering with purposely growth, markets facilitate period last manufacturing million existing very same spent Plant future Equipment. QX, complete CapEx on product our a again was facilities spent quarter. EUR EUR decrease a XXX,XXX the XX% compared to X.X Property, approximately third and the with year.

of expecting XX million full less than year. are We investment for EUR the

to is continue bringing and in continue goal to quarters our our reduce inventory down to come. We inventory

Wallbox strong position by reduction and strength do we of inventory and discussed the market that is for With structure provision million, demand, balance. current with today, efforts the cash is EUR quarter position we which talked cost was about This all align a the despite impacted significantly we success totaled a goal The Inventory sequentially. earlier. XX.X XX% to from sufficient a to can in backdrop. the set

core As optimization activities, conserve are it is of assets we the our also therefore, efforts, part we strategic reviewing key continuous cash. of alternatives and focus on noncore to

generation to commentary. turn to and Enric, provide some as back As profitability you the CFO, company getting to on XXX% cash as possible. soon I'm it focused closing I'll

Enric Asuncion

you, Luis. Thank

the closing We role. her we Board Before contributions of thoughts of the appointment as expectations I of Beatriz the and new you Non-Executive share his Chairman quarter, Anders his of for today, all Anders like to would announced with fourth my Directors congratulate as for replacement. resignation thank early and the Beatriz our and Gonzalez Petterson with

like in would on visibility these leave is company I of EV understand the performance. We the to Now, you that following: longevity with it the is market and clear current is our the volatile that key. this is times, impacting that

For today position out way. building that sustainable a us continue allowing the leadership key shared reason, we our to initiatives in with you

include initiatives new segments, strategic which securing We new and cost reducing educating here sheet. have the in balance and quarter, strategic into our countries partnerships, been past expanding strengthening

our to visibility model resources efforts, of identifying we path now to line the product part with and a opportunities and margins initial main business on match structure unit-driven with growth, are current top sales. The adjusting profitability structure to into is objective to the cost better our our organizational expand to the align generation. to As cash drive gross demand drive improving portfolio, the continue

We a transition now. in we the right are multi-decade foundation and laying are

We well. executing are

for XX representing and back million. is an a EUR take negative With and leading to from quarter. Revenue have XX XX%. with analysts. year-over-year rate and margin continued our questions into XX% between in EUR we EBITDA approximate Combined that, adjusted to improvement to costs, range. XX% expecting set the for growth success. we From million the ready Gross between we are a expect XX% million X up provide are what guidance to building company perspective, that in XX want on that position, EUR the We EUR million we fourth being range,

Operator

of George Our Instructions] first from comes Canaccord Gianarikas question Genuity. [Operator

George Gianarikas

articulated -- and plan get with visibility the in a vehicles? start to back situation. to costs. if hope And if through company what plans the of I -- EBITDA capture little could tie to you you us future know But balance get strengthening around sort of reorganize understand and when or electric I'd runway to to give an a your -- I'd in to could is fairly that from you've the growth to just positive like just flat sheet cut to measures you help like limited you bit

Enric Asuncion

the question. Thank is you Enric. for This

cash the So this growing said decrease very XX% America, are key we are the very XX% EV it And what what it's important. obviously we we share, that, key I the Europe, we that and market news that before, to is the volatile. last the quarter, in constantly like shows and market increasing the is good are achieve, saw like to Despite the markets market. I were I growing want now where other And think is which able trying we in a market markets I think on increase and want that profitability as to think are is where share. which generation. moment end, year-over-year. we the grow, a we we we But it's see at And North

more But company see instead to thinking the is obviously, if grow. end, and key. And be we see growth an achieve not grow have market the still competition that capturing the And which that's adapt get the this quarter, we the we even struggles, is, time the But approach for at -- and we we've we as will these And think now continue of more end have any the having. so to more XX% believe, right a we continue share I Our obviously, our opportunities able growing our to next XX%. to seeing market we grow is because market is to there which it's at opportunities moment will sales. capturing is structure the at revenue we more revenue now our with we be that are to get, catch expected, will and adapt we levels. believe market it's we historical and revenue we we up will upside, revenue, been we okay, to more approach profitable the sales that

a are X which we best in year data profitable already QX, XX% expect. towards the versus part the steps is the what as we of important be huge range. year, point, maybe QX, thing the But we're a So EBITDA a XXXX is provided and we doing very has as that's profitability, to improving

to X a And We us the can quarters you. the that's we I the sure get want in market said, revenue. we EBITDA we revenue. given upsides the into approach we and cost we structure current seeing capture the give are take very And as want to more take volatile we see that is something year. volatility now, to an -- growing, can given to positive It some market -- data the X, right not committing that I expect where is But should the company the to of achieve. able make are than market that but

George Gianarikas

any growing questions, in opinion I you in But you've mentioned for I And the through the there about I that accurate? channel. what European a inventory that's mean I U.S. bunch you're your DC am inventory some Europe? on think in think there quarters. of several Is AC, Is had there but issue that left inventory a It's market, in the still Generac be your that pesky inventory may been theater. side.

Enric Asuncion

we No, inventory an overperforming think segment that I there don't AC, EV growth. that in and so. in issue every proof think are now. the right is don't I of country is market clear the And

partners. And you only no we a as partner. new in Generac, sell-out not see increasing it's challenge. inventory and the data with say we new are in there's Obviously, customers So not -- the but we North data, that new America sell-in, are

has they give quarters of our that their very an and some also of sellout they have from become dealers, Generac North sure world. top data America dealers. you X in success creates seeing seeing how customer quarter, inventory Generac been but adding and the Generac, inventory. in these But I working. Every the in the their are X To to to much of this are deal, not also the but making nice idea We in selling And have don't partnerships also we is doing, say, in are also of top X to in we sales is We script. think this opportunities our is reduce see a as portfolio. and only products point this orders, And with great more costs. increase we I are too

We big our at improve have have some strategic partners, the Generac, key end. their OEM can and customers leverage only we we where not margins other improve purchasing power costs to our

industry ways able partners with So seeing being becoming as the and -- synergies to expect becoming also gross other our margin of have we mature, more obviously, more we support more is can but continue and North America. success the growth our volumes, and clear have a is relationship mature, to that our becoming each improve are bigger we are are in

Operator

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

Ben Kallo

on sales taking George's couple 'XX could on maybe Could guys back, demand different you for of have I a next just that guys maybe internally regions EV about up and have anything following expectations EVs? year And for then reignite and then you step maybe across Just talk just question. follow-ups. see a that you

Enric Asuncion

thank question. So we at then, for look you well, when -- the

noise be different seeing lot know these different Europe, by preparing if fueled matter softer growth and in this a to what. come emissions in America Europe, markets, look this to going the at the regulations opinion. But So believe sources the we fleets. of be that. regulations North not there's everywhere our come are it right it or on will we cost now or we new what, When will come. in fines a is to is will I Maybe for We matter in for or in expect expect manufacturers fines no the Enric. no come come we car Europe. the

a the is So for stronger expecting next this what make the end the seen push EV this matters first to of achieve the EV end, because XXXX at year sales of you regulation. delay we've a at during on year. half sales and for

one So that is reasons. the of

prefer January first a could car expect achieve in in instead will year than these half of choose to EVs because some manufacturers, -- also We next strong the if sell they second regulations. to December

North positive we one that's the that believe of will also a year. And impact. models we lot So thing America, for there's new coming, see next which

opinion, we But organization market. the company a America now above XX% forecast in to flat in due of company later, be market. to our what that's some Europe we So unexpected models think -- making and and our just the will But a if we But we make we profitable. doing can the we but make are maybe for and thing. And XX% way EV the regulations. adapting will growth, we we overperforms, to our EV we and next we because are flat guidance a we share especially that we profitable believe profitable. And our are we believe year the growth building the be first are it's and can in considering right market a flat half Why market. market, ready our case changing sure and can be quickly way we overperform, the if end, we everything, are North in to is we will new more see to be money. more At offer in

Ben Kallo

both thoughts to talk footprint, more standpoint, well of well Europe? any about moving about your to as then a still geographic on from an as point you Just as manufacturing the makes the as could And U.S. model. manufacturing in sense outsourced it have of manufacturing if

Enric Asuncion

allocation now, also think chain recently it an own we might the changes So And supply American topic we We seeing us this parts visibility give an own cost have us And growth started and think interesting questions of that capacity doing our we key of now this that is cost on that that I North a proving and kind but North American with business, in gives It's the the as a we this us I all manufacturing different key us advantage. for time. the are having manufacturer. units. be our market fact have give -- we've business regulation advantage, the the vector believe quarter-over-quarter. It's more of there. we there an are and still

So we but think that us. advantage it's one one key keeping for and especially North [indiscernible] the this Barcelona factory a in our in in America

want it we The depend give see profitability. Right and we if manufacturing outsource third-party still we So keen to answer will now, not, a cost on or advantage. on that. will

gross interesting have We margins.

electronics. We integrate also our vertically

acquired electronics. a this company called couple years and and electronics, XX% that product our margin. we is this gross We The PCBs our get Ares we cost of to that have makes control part, of XX% our we and that ago

So partnerships at with manufacturing target think different our the with we exceed purchasing really and the supply for in we're XX% controlling we price own to I are XX% components can these strategic partners future. better and doing chain, a

So reducing that's and chain sales achieve to margin is and controlling supply increase growing and cost our margin the focus, improvement. apart is to capacity own from key this

Luis Boada

that we add market. stay a to term. those When for at when not expenditure, we've The right? incurred growth to you ready I like Yes. thing our to footprint, the with And capital in is we're It's So that look only and already have we're kind that of consistent comes, as already flattish those going Enric growth facilities products. short coming EV the mentioned, come.

in a are when capture comes. it position to the growth we So very strong

Michael Wilhelm

a question. for good today's Thank you found of use We today. call Okay. your hope you That all was us joining time. last our

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

Operator

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

may disconnect your now You lines.

Wallbox (WBX) 6 Nov 242024 Q3 Earnings call transcript