Sienna Resources

Tigo Energy Reports Fourth Quarter and Full Year 2023 Financial Results

13 February 2024
  • Fourth Quarter and Full Year 2023 Revenue Totaled $9.2 Million and $145.2 Million, Respectively

CAMPBELL, Calif. / Feb 13, 2024 / Business Wire / Tigo Energy, Inc. ("Tigo", or the "Company") (NASDAQ: TYGO), a leading provider of intelligent solar and energy storage solutions, today reported unaudited financial results for the fourth quarter and full year ended December 31, 2023 and financial guidance for the first quarter ending March 31, 2024.

Recent Financial and Operational Highlights

  • Revenue for the full year 2023 of $145.2 million, up 78.6% compared to $81.3 million in the full year 2022.
  • Gross profit for the full year 2023 of $51.3 million, or 35.3% of revenues, up 107.1% compared to $24.8 million, or 30.5% of revenues, in the full year 2022.
  • On a GAAP basis, net loss for the full year 2023 of $1.0 million, compared to a net loss of $7.0 million in the full year 2022. On a non-GAAP basis, adjusted EBITDA for the full year 2023 of $1.0 million, compared to adjusted EBITDA of $2.5 million in the full year 2022.
  • Deployed our 10 millionth Tigo TS4 device. Tigo TS4 products ensure that installers have the flexibility to deploy the industry’s highest-wattage solar modules to offer the most energy production per available rooftop space.
  • Expanded the GO ESS product line, formerly referred to as the Tigo EI Solution, which provides intuitive and flexible energy solutions that are optimized to work together. This includes the Tigo GO EV Charger launched in the German market in January 2024.
  • Expanded the Predict+ software platform to include improved profit analysis modules, advanced algorithms for production and load forecasting, and a new billing module for IPP and virtual suppliers.
  • Announced CPV Retail Energy and EDF Renewables Israel as new Tigo Predict+ customers, increasing annual recurring revenue to $0.8 million.
  • Welcomed GoodWe, SolaX Power, and Intercraft Solar as new licensees for Tigo’s rapid shutdown technology.
  • Unveiled the Tigo Green Glove service program for commercial and industrial solar installers. This program enhances the installer experience and drives quality across the solar value chain.

Management Commentary

“2023 was a transformational year for Tigo,” said Zvi Alon, Chairman and CEO of Tigo. “Our business grew significantly across several areas this year, even as our team managed ongoing marketplace weakness driven by order pushouts and cancellations through the second half of 2023. Notably, we drove a 78.6% total revenue increase to $145.2 million for the full year, deployed our 10 millionth Tigo TS4 device, and expanded our product portfolio. Also, our continued efforts in international markets helped us to substantially increase our EMEA and APAC revenues, both important areas of focus moving forward as well.

“Furthermore, our GO ESS product line grew steadily last year to represent approximately 9.2% of our total revenues and continues to show signs of progress this year,” Alon continued. “Finally, within our EI Software Platform, as previously announced, we acquired the Predict+ software solution in January 2023, a new and strategic addition to Tigo. Predict+ is an AI-based software solution that provides customers with the ability to accurately predict energy production and consumption. Predict+ demonstrated significant growth in 2023 with over 300 GWh of energy consumption management and all contracts for Predict+ are multi-year.

“As we stated last quarter, we believe the ongoing inventory digestion cycle will be substantially complete by the end of the current quarter and that we are solidly positioned to expand our market share as the industry upturn emerges.”

Fourth Quarter 2023 Financial Results

Results compare the 2023 fiscal fourth quarter ended December 31, 2023 to the 2022 fiscal fourth quarter ended December 31, 2022, unless otherwise indicated.

  • Revenue for the fourth quarter 2023 totaled $9.2 million, a 70.1% decrease from $30.9 million in the prior year comparable period.
  • Gross profit for the fourth quarter 2023 totaled $2.9 million, or 31.1% of total revenue, a 71.1% decrease from $10.0 million, or 32.2% of total revenue, in the prior year comparable period.
  • Total operating expenses for the fourth quarter 2023 totaled $16.4 million, a 110.2% increase from $7.8 million in the prior year comparable period.
  • Net loss for the fourth quarter 2023 totaled $14.8 million, compared to net income of $0.9 million for the prior year comparable period.
  • Adjusted EBITDA loss totaled $11.6 million for the fourth quarter 2023, compared to adjusted EBITDA of $2.7 million for the prior year comparable period.

Full Year 2023 Financial Results

Results compare the 2023 fiscal full year ended December 31, 2023 to the 2022 fiscal full year ended December 31, 2022, unless otherwise indicated.

  • Revenue totaled $145.2 million, a 78.6% increase from $81.3 million in the prior year comparable period.
  • Gross profit totaled $51.3 million, or 35.3% of total revenue, a 107.1% increase from $24.8 million, or 30.5% of total revenue, in the prior year comparable period.
  • Total operating expenses totaled $59.6 million, a 132.1% increase from $25.7 million in the prior year comparable period.
  • Net loss totaled $1.0 million, compared to a net loss of $7.0 million for the prior year comparable period. Net loss includes the mark-to-market benefit of $12.2 million related to the conversion feature of the convertible note.
  • Adjusted EBITDA totaled $1.0 million, compared to an adjusted EBITDA of $2.5 million for the prior year comparable period.
  • Cash, cash equivalents, and marketable securities totaled $33.2 million at December 31, 2023.

First Quarter 2024 Outlook

The Company also provides guidance for the first quarter ending March 31, 2024 as follows:

  • Revenues are expected to be within the range of $9 million to $14 million.
  • Adjusted EBITDA loss is expected to be within the range of $8 million to $12 million.

Actual results may differ materially from the Company’s guidance as a result of, among other things, the factors described below under “Forward-Looking Statements”.

Conference Call

Tigo management will hold a conference call today, February 13, 2024, at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time) to discuss these results. Company CEO Zvi Alon and CFO Bill Roeschlein will host the call, followed by a question-and-answer period.

Registration Link: Click here to register

Please register online at least 10 minutes prior to the start time. If you have any difficulty with registration or connecting to the conference call, please contact Gateway Group at (949) 574-3860.

The conference call will be broadcast live and available for replay here and via the Investor Relations section of Tigo’s website.

About Tigo Energy, Inc.

Founded in 2007, Tigo is a worldwide leader in the development and manufacture of smart hardware and software solutions that enhance safety, increase energy yield, and lower operating costs of residential, commercial, and utility-scale solar systems. Tigo combines its Flex MLPE (Module Level Power Electronics) and solar optimizer technology with intelligent, cloud-based software capabilities for advanced energy monitoring and control. Tigo MLPE products maximize performance, enable real-time energy monitoring, and provide code-required rapid shutdown at the module level. The Company also develops and manufactures products such as inverters and battery storage systems for the residential solar-plus-storage market. For more information, please visit www.tigoenergy.com.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about current and future inventory levels and its impact on future financial results, statements about our ability to penetrate new markets and expand our market share, including expansion in international markets, our continued expansion of and investments in our product portfolio, and future financial and operating results, our plans, objectives, expectations and intentions with respect to future operations, products and services; and other statements identified by words such as “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimated,” “expected”, “believe,” “intend,” “plan,” “projection,” “outlook” or words of similar meaning. These forward-looking statements are based upon the current beliefs and expectations of Tigo’s management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are difficult to predict and generally beyond our control. Actual results and the timing of events may differ materially from the results anticipated in these forward-looking statements.

In addition to factors previously disclosed, or that will be disclosed in, our reports filed with the SEC, factors which may cause actual results to differ materially from current expectations include, but are not limited to, our ability to effectively develop and sell our product offerings and services, our ability to compete in the highly-competitive and evolving solar industry; our ability to manage risks associated with seasonal trends and the cyclical nature of the solar industry; whether we continue to grow our customer base; whether we continue to develop new products and innovations to meet constantly evolving customer demands; the timing and level of demand for our solar energy solutions; changes in government subsidies and economic incentives for solar energy solutions; our ability to acquire or make investments in other businesses, patents, technologies, products or services to grow the business and realize the anticipated benefits therefrom; our ability to meet future liquidity requirements; our ability to respond to fluctuations in foreign currency exchange rates and political unrest and regulatory changes in international markets into which we expand or otherwise operate in; our failure to attract, hire retain and train highly qualified personnel in the future; and if we are unable to maintain key strategic relationships with our partners and distributors.

Actual results, performance or achievements may differ materially, and potentially adversely, from any projections and forward-looking statements and the assumptions on which those forward-looking statements are based. There can be no assurance that the forward-looking statements contained herein are reflective of future performance to any degree. You are cautioned not to place undue reliance on forward-looking statements as a predictor of future performance as projected financial information and other information are based on estimates and assumptions that are inherently subject to various significant risks, uncertainties and other factors, many of which are beyond our control. All information set forth herein speaks only as of the date hereof, and we disclaim any intention or obligation to update any forward-looking statements as a result of new information, future developments or otherwise occurring after the date of this communication.

Non-GAAP Financial Measures

To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measure: adjusted EBITDA. The presentation of this financial measure is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.

We use adjusted EBITDA for financial and operational decision-making and as a means to evaluate period-to-period comparisons. We define adjusted EBITDA, a non-GAAP financial measure, as earnings (loss) before interest and other expenses, net, income tax expense (benefit), depreciation and amortization, as adjusted to exclude stock-based compensation and merger transaction related expenses. We believe that adjusted EBITDA provides helpful supplemental information regarding our performance by excluding certain items that may not be indicative of our recurring core business operating results. We believe that both management and investors benefit from referring to adjusted EBITDA in assessing our performance and when planning, forecasting, and analyzing future periods. Adjusted EBITDA also facilitates management’s internal comparisons to our historical performance and comparisons to our competitors’ operating results. We believe adjusted EBITDA is useful to investors both because it (i) allows for greater transparency with respect to key metrics used by management in its financial and operational decision-making and (ii) is used by our institutional investors and the analyst community to help them analyze the health of our business.

The items excluded from adjusted EBITDA may have a material impact on our financial results. Certain of those items are non-recurring, while others are non-cash in nature. Accordingly, adjusted EBITDA is presented as supplemental disclosure and should not be considered in isolation of, as a substitute for, or superior to, the financial information prepared in accordance with GAAP.

There are a number of limitations related to the use of non-GAAP financial measures. We compensate for these limitations by providing specific information regarding the GAAP amounts excluded from these non-GAAP financial measures and evaluating these non-GAAP financial measures together with their relevant financial measures in accordance with GAAP.

We refer investors to the reconciliation adjusted EBITDA to net income (loss) included below. A reconciliation for adjusted EBITDA provided as guidance is not provided because, as a forward-looking statement, such reconciliation is not available without unreasonable effort due to the high variability, complexity, and difficulty of estimating certain items such as charges to stock-based compensation expense and currency fluctuations which could have an impact on our consolidated results.

 

Tigo Energy, Inc.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

     

 

 

December 31,
2023

 

December 31,
2022

ASSETS

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

4,405

 

 

$

36,194

 

Restricted cash

 

 

 

 

 

1,523

 

Marketable securities, short-term

 

 

26,806

 

 

 

 

Accounts receivable, net

 

 

6,862

 

 

 

15,816

 

Inventory, net

 

 

61,401

 

 

 

24,915

 

Deferred issuance costs

 

 

 

 

 

2,221

 

Notes receivable

 

 

 

 

 

456

 

Prepaid expenses and other current assets

 

 

5,236

 

 

 

3,967

 

Total current assets

 

 

104,710

 

 

 

85,092

 

Property and equipment, net

 

 

3,458

 

 

 

1,652

 

Operating right-of-use assets

 

 

2,503

 

 

 

1,252

 

Marketable securities, long-term

 

 

1,977

 

 

 

 

Intangible assets, net

 

 

2,192

 

 

 

 

Deferred tax assets

 

 

21

 

 

 

 

Other assets

 

 

707

 

 

 

82

 

Goodwill

 

 

12,209

 

 

 

 

Total assets

 

$

127,777

 

 

$

88,078

 

LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT)

Current liabilities:

 

 

 

 

Accounts payable

 

$

15,685

 

 

$

23,286

 

Accrued expenses and other current liabilities

 

 

8,681

 

 

 

4,382

 

Deferred revenue, current portion

 

 

335

 

 

 

950

 

Warranty liability, current portion

 

 

526

 

 

 

392

 

Operating lease liabilities, current portion

 

 

1,192

 

 

 

578

 

Current maturities of long-term debt

 

 

 

 

 

10,000

 

Total current liabilities

 

 

26,419

 

 

 

39,588

 

Warranty liability, net of current portion

 

 

5,106

 

 

 

3,959

 

Deferred revenue, net of current portion

 

 

466

 

 

 

172

 

Long-term debt, net of current maturities and unamortized debt issuance costs

 

 

31,570

 

 

 

10,642

 

Operating lease liabilities, net of current portion

 

 

1,392

 

 

 

762

 

Preferred stock warrant liability

 

 

 

 

 

1,507

 

Total liabilities

 

 

64,953

 

 

 

56,630

 

Convertible preferred stock

 

 

 

 

 

87,140

 

Stockholders’ equity (deficit):

 

 

 

 

Common stock

 

 

6

 

 

 

1

 

Additional paid-in capital

 

 

138,657

 

 

 

6,522

 

Accumulated deficit

 

 

(75,780

)

 

 

(62,215

)

Accumulated other comprehensive income

 

 

(59

)

 

 

 

Total stockholders’ equity (deficit)

 

 

62,824

 

 

 

(55,692

)

Total liabilities, convertible preferred stock and stockholders’ equity (deficit)

 

$

127,777

 

 

$

88,078

 

Tigo Energy, Inc.

Condensed Consolidated Statement of Operations

(in thousands, except per share data)

(unaudited)

     

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

2023

 

2022

 

2023

 

2022

Net revenue

 

$

9,245

 

 

$

30,941

 

 

$

145,233

 

 

$

81,323

 

Cost of revenue

 

 

6,369

 

 

 

20,973

 

 

 

93,924

 

 

 

56,552

 

Gross profit

 

 

2,876

 

 

 

9,968

 

 

 

51,309

 

 

 

24,771

 

Operating expenses:

 

 

 

 

 

 

 

 

Research and development

 

 

2,433

 

 

 

1,206

 

 

 

9,496

 

 

 

5,682

 

Sales and marketing

 

 

5,745

 

 

 

3,605

 

 

 

21,281

 

 

 

10,953

 

General and administrative

 

 

8,240

 

 

 

2,998

 

 

 

28,807

 

 

 

9,032

 

Total operating expenses

 

 

16,418

 

 

 

7,809

 

 

 

59,584

 

 

 

25,667

 

(Loss) income from operations

 

 

(13,542

)

 

 

2,159

 

 

 

(8,275

)

 

 

(896

)

Other (income) expenses:

 

 

 

 

 

 

 

 

Change in fair value of preferred stock warrant and contingent shares liability

 

 

(1,252

)

 

 

1,057

 

 

 

(1,109

)

 

 

1,020

 

Change in fair value of derivative liability

 

 

 

 

 

 

 

 

(12,247

)

 

 

 

Loss on debt extinguishment

 

 

 

 

 

 

 

 

171

 

 

 

3,613

 

Interest expense

 

 

2,875

 

 

 

253

 

 

 

8,115

 

 

 

1,494

 

Other income, net

 

 

(500

)

 

 

(125

)

 

 

(2,359

)

 

 

(57

)

Total other expenses (income), net

 

 

1,123

 

 

 

1,185

 

 

 

(7,429

)

 

 

6,070

 

(Loss) income before income tax expense

 

 

(14,665

)

 

 

974

 

 

 

(846

)

 

 

(6,966

)

Income tax expense

 

 

109

 

 

 

71

 

 

 

138

 

 

 

71

 

Net (loss) income

 

 

(14,774

)

 

 

903

 

 

 

(984

)

 

 

(7,037

)

Dividends on Series D and Series E convertible preferred stock

 

 

 

 

 

(2,102

)

 

 

(3,399

)

 

 

(6,344

)

Net loss attributable to common stockholders

 

$

(14,774

)

 

$

(1,199

)

 

$

(4,383

)

 

$

(13,381

)

 

 

 

 

 

 

 

 

 

Loss per common share

 

 

 

 

 

 

 

 

Basic

 

$

(0.25

)

 

$

(0.23

)

 

$

(0.08

)

 

$

(2.71

)

Diluted

 

$

(0.25

)

 

$

(0.23

)

 

$

(0.14

)

 

$

(2.71

)

Weighted-average common shares outstanding

 

 

 

 

 

 

 

 

Basic

 

 

58,749,524

 

 

 

5,203,886

 

 

 

38,048,516

 

 

 

4,940,562

 

Diluted

 

 

58,749,524

 

 

 

5,203,886

 

 

 

43,223,134

 

 

 

4,940,562

 

Tigo Energy, Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

   

 

 

Year Ended December 31,

 

 

2023

 

2022

Cash Flows from Operating activities:

 

 

 

 

Net loss

 

$

(984

)

 

$

(7,037

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

Depreciation and amortization

 

 

1,106

 

 

 

562

 

Reserve for inventory obsolescence

 

 

713

 

 

 

123

 

Change in fair value of preferred stock warrant and contingent shares liability

 

 

(1,109

)

 

 

1,020

 

Change in fair value of derivative liability

 

 

(12,247

)

 

 

 

Deferred tax benefit

 

 

(21

)

 

 

 

Non-cash interest expense

 

 

5,473

 

 

 

256

 

Stock-based compensation

 

 

3,808

 

 

 

813

 

Allowance for credit losses

 

 

3,870

 

 

 

596

 

Loss on debt extinguishment

 

 

171

 

 

 

3,613

 

Non-cash lease expense

 

 

996

 

 

 

535

 

Forgiveness of recourse promissory note and accrued interest

 

 

 

 

 

117

 

Accretion of interest on marketable securities

 

 

(508

)

 

 

 

Loss on disposal of property and equipment

 

 

17

 

 

 

 

Changes in operating assets and liabilities:

 

 

 

 

Accounts receivable

 

 

5,201

 

 

 

(12,533

)

Inventory

 

 

(37,199

)

 

 

(14,969

)

Prepaid expenses and other assets

 

 

(1,272

)

 

 

(2,459

)

Accounts payable

 

 

(8,577

)

 

 

10,890

 

Accrued expenses and other liabilities

 

 

3,383

 

 

 

952

 

Deferred revenue

 

 

(321

)

 

 

673

 

Warranty liability

 

 

1,281

 

 

 

958

 

Deferred rent

 

 

 

 

 

(135

)

Operating lease liabilities

 

 

(1,003

)

 

 

(447

)

Net cash used in operating activities

 

$

(37,222

)

 

$

(16,472

)

Investing activities:

 

 

 

 

Purchase of marketable securities

 

 

(53,483

)

 

 

 

Cash invested in note receivable

 

 

 

 

 

(456

)

Acquisition of fSight

 

 

(16

)

 

 

 

Purchase of intangible assets

 

 

(450

)

 

 

 

Purchase of property and equipment

 

 

(2,114

)

 

 

(1,147

)

Sales and maturities of marketable securities

 

 

25,149

 

 

 

 

Net cash used in investing activities

 

$

(30,914

)

 

$

(1,603

)

Financing activities:

 

 

 

 

Proceeds from Convertible Promissory Note

 

 

50,000

 

 

 

25,000

 

Repayment of Series 2022-1 Notes

 

 

(20,833

)

 

 

(4,165

)

Repayment of Senior Bonds

 

 

 

 

 

(10,000

)

Payment of financing costs

 

 

(358

)

 

 

(3,473

)

Proceeds from sale of Series E convertible preferred stock

 

 

 

 

 

40,978

 

Proceeds from Business Combination

 

 

2,238

 

 

 

 

Proceeds from exercise of stock options

 

 

215

 

 

 

325

 

Payment of tax withholdings on stock options

 

 

(91

)

 

 

 

Payment of issuance costs

 

 

 

 

 

(139

)

Payment of issuance costs related to the sale of Series E convertible preferred stock

 

 

 

 

 

(208

)

Proceeds from common stock warrant redemption, net of issuance costs and payments to warrant holders of non-redeemed warrants

 

 

3,653

 

 

 

 

Net cash provided by financing activities

 

$

34,824

 

 

$

48,318

 

Net (decrease) increase in cash and restricted cash

 

 

(33,312

)

 

 

30,243

 

Cash, cash equivalents, and restricted cash at beginning of period

 

 

37,717

 

 

 

7,474

 

Cash, cash equivalents, and restricted cash at end of period

 

$

4,405

 

 

$

37,717

 

Tigo Energy, Inc.

Non-GAAP Financial Measures

(in thousands)

(unaudited)

 

Reconciliation of Net (Loss) Income (GAAP) to Adjusted EBITDA (Non-GAAP)

     

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

2023

 

2022

 

2023

 

2022

Net (loss) income

 

$

(14,774

)

 

$

903

 

 

$

(984

)

 

$

(7,037

)

Adjustments:

 

 

 

 

 

 

 

 

Total other expenses (income), net

 

 

1,123

 

 

 

1,185

 

 

 

(7,429

)

 

 

6,070

 

Income tax expense

 

 

109

 

 

 

71

 

 

 

138

 

 

 

71

 

Depreciation and amortization

 

 

286

 

 

 

158

 

 

 

1,106

 

 

 

562

 

Stock-based compensation

 

 

1,671

 

 

 

420

 

 

 

3,808

 

 

 

813

 

M&A transaction expenses

 

 

 

 

 

 

 

 

4,399

 

 

 

2,000

 

Adjusted EBITDA

 

$

(11,585

)

 

$

2,737

 

 

$

1,038

 

 

$

2,479

 

We encourage investors and others to review our financial information in its entirety and not to rely on any single financial measure.

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