performance send will more on will a then I investors, financial Lex. progress welcome and review and on employees I update participating our Thank would our details to Ahmed then strategic on brief provide give on outlook. you, business call. today's our to like our analysts and our objectives.
Beginning key start report are highlights. with quarter double-digit market. $XXX robust to the we first recognized a that pleased gross fiscal storage second we quarter, good X and for a we continue consecutive of our Furthermore, I'm delivered to of revenue. energy from the In on Slide margin. 'XX to off million benefit
Our was million. adjusted first EBITDA the negative quarter $XX for approximately
In improving negative 'XX. line million of the Q our with expectations it from is $XX first in
we of billion X.X record new contracted This Additionally, by recognized $X.X broken our solutions hours. is orders. down business a gigawatt
X.X business business our gigawatt Our XXX-megawatt and services digital new adding of hours, contracts. adding hours
of our to as increased highest $X.X level million the backlog contract XX December signed $XXX our billion, in Furthermore, history.
Additionally, our in achieve pipeline and growth million increased goals to $XX.X XXXX gives to which our confidence year. $XXX the billion, us
of revenue Our with digital recurring assets gigawatts service businesses to the continue which service our streams together X.X ended quarter We traction. and management. under gain represent
service which digital relative our our our attachment We Importantly, storage remains our on adding deployed to active in rate had is based to backlog. XX%. strong our quarter community of a megawatts deployed services XXX business, contracts above
at gigawatts management assets December XX.X More increased importantly, as to gigawatts XX XX. September digital of under XX from our
year ARR, $XX $XX approximately In guidance and by summary, is of approximately revenue, end million million services recurring our the combined our of track on or annual of digital for as XX and December fiscal was 'XX.
for measure and strategic actions. important discuss Turning X They investors our objectives monitor markers to our are that performance. X. also progress the and to Slide like to I'd guide on our decisions
growth. delivering First, on profitable
to that quarter, we gross backlog expect This we yield billion to as $X.X our of grow we margins. projects continue double-digit added
financial objectives. Our track disciplined on competitive to approach on to solutions to deliver customers offer keeps us our
need. and products continue solutions will that customers we our Second, develop to
subsequent of 'XX quarters. moment. that manufacturing This more such, in meets over a As storage the to begin production for product U.S. us a manufacturing battery the ramping in pleased report requirements that domestic are battery content our module module the to we for battery energy I'm will summer enable on to up touch which track will provide on gradually I
to we as supply and global outreach, established of competitive strategic our have key chain scale a our Third, advantages. one
suppliers of and us diversity prices, more is key component will Our I and which a of advantage this detail favorable shortly. of take to in terms enables battery discuss
contracts member differentiator Digital as report strong will we we Fourth, with have that I'm XX a the margin customer use and And pleased quarter X Fluence customer and digital a to retention ahead renewed became competitive during is digital attrition. our driver. in Fluence the report. objective the better. that XXXX Compact official our UN time work signatory of Global to outlined sustainability expected proud an of I'm in November, fifth to state line
to X. Turning Slide
in strong storage to growth continue see systems. for demand energy utility scale We
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fiscal conversations we're XX 'XX with in from continued having growth Based to see we're approximately the of potential revenue customers customers, XX our to on and fiscal 'XX. expecting strong
at by $XXX sits grew which supported outlook approximately pipeline, our and billion from $XX.X XXXX million last quarter. the Our is
have the over next we pipeline communicated XX calls, approximately our at XX% expectations is months. As in prior for conversion
X. Slide to Turning
past couple the the major steps and resilience have chains. we taken of to improve Over years, our diversify supply of
chain centered is strategy around key X elements. supply Our
first battery utilize we China, geographies multiple The while disruptions. support suppliers located Currently the we and suppliers. have ensures diversity X pull Korea, in which United from is mitigating This of Sweden South our growth battery the States. to
is building note chain U.S.-based critical are this also a reliable taking supply supply as We the establish significant will will for U.S. discuss, a chain I to year. and And industry. steps stable that we
are have on capacity covered upside battery fiscal demand needs capitalize to provides to price secured products, These from capacity for flexibility suppliers. for This guaranteed these growing Second, for demand. multiyear adjustments. 'XX market our and fiscal we and subject agreements in our 'XX
we to price most Additionally, our the a customers. delivering competitive involving use mechanism multiple discovery battery also constantly prices are to suppliers we ensure
agreements come minimal these capacity finally, And with obligations. take-or-pay
control laid and battery controls system. to battery the introduce the the in of business. modules the by runs capture of initial our X/X It cell we which level, battery storage a system, in Third, IRA, the also the manufacturing U.S. incentives software that global proprietary at battery our our the enables to point represents out management own will be us
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tax expect module doing content to under so, are begin manufacturing this XXX. qualify summer. We to currently In our for we the battery on Section domestic credit for schedule
The manufacturers in an using in fourth regional element contract asset-light of supply Vietnam one involves one our chain. system X strategy Utah. is This integration, major for and
and other incur model our to such will high for enhanced in flexibility costs regionalize capital with areas to continue or and provides asset-light production a and not Europe scaling look invested associated our capital We positions facility. building particularly return strategy agility, on the do in we India. This us maintaining own with as Fluence as
a shipments When comments I world, to accommodate using have these adds our various Only projects. The we would were to to in look approximately Time been recent use Red To the affecting the rerouting shipping X expected end, in the schedule. we route. disruptions of around like make shipping for Sea to commitments. to Sea. without routes delivery relation our weeks we're able our Red XX% of customer shipments the few around that global
we're any as much reduce costs customers with in to to accordance contracts. these transfer in entirety diligently our experiencing possible event, we're shipping our In logistics costs. incremental in to the very Finally, able as team our their in increases working is
strategy, for Overall, chain high these X our elements are the which cornerstones of and provides competitiveness our customers. supply flexibility, certainty
supply we to continue build will global our strengthen look We chain. this on as to
XX% have bonus in a capital to to credit Turning benefits which is These IRA, multiple first recognize projects category, significantly receive to boosting These and customers well for incentives investment energy to our ITC base their positioned community tax an benefits two using for domestic or for customers from our credit We're tax which potential in well categories. Under a content. the storage. economics deploying to incentives already up the project include improves the as and fall demand attractiveness. Slide X. costs, energy as
increased to tax that category under more we leverage. per I qualify incentives products production X IRA benefit provide scale, a enables second operating us of competitive incentives credit XXX. of be as produced includes The and producing kilowatt expect the volumes Section modules for Fluence. battery discussed, under $XX the just directly and battery of of These provisions from to those benefit our for By in hour U.S., modules categories more to
member November, our official Nations strong framework a Being active to signatory of journey Turning to structural and report Slide important a that sustainability step based data is accepted of the on became on I'm engagement. signatory an Global building program Fluence an a Compact. member X. ESG proud United as in
the world joined Fluence to and and responsible around organizations XX,XXX than Compact UN companies have corporate has Global citizenship sustainability. that and signed committed are the more
collaborate best and to network nongovernmental through companies, change. Compact with to Global and stakeholders exchange positive excited are drive the We other organizations like-minded practices
filed was the few would like that to published I highlighted December valid regarding to in by for project the contract late a make $XX our license have regarding us million did not in we claim a article Diablo claim in damages. a owner response amounts California. construction non-pay the and remarks in project This contract alleging California in that claim against Now related filed
proceedings we and project. ongoing. I are XXXX. its the delivered we uptime claims contractual merit. these legal has contract are wanted the Diablo for on requirement In have well paid meantime, work is our get that the performing project to The intend or said availability during believe to already, very without above As highlight We
In conclusion, I'm the quarter. pleased with the first achievements of
to Although Ahmed. there done, now we will as is to continue turn I still we over XXXX. this progress we are to momentum will be through work call mindful look the
