Pond Technologies

Energy Vault Reports First Quarter 2024 Financial Results

08 May 2024
  • Revenue of $7.8 million from recognition of Utility and IPP storage projects, in-line with expectations; Licensing revenue from GESSOL in Southern Africa is expected later in 2024
  • GAAP Gross Margin of 26.7% driven by strong management and execution on US battery projects
  • Cash OpEx of $16.7 million, improved 22% year-over-year and 14% quarter-over-quarter
  • Quarter-end Cash and Cash Equivalents of $136.8 million, within Q1 guidance range of $125 – 150 million

WESTLAKE VILLAGE, Calif. / May 08, 2024 / Business Wire / Energy Vault Holdings, Inc. (NYSE: NRGV) (“Energy Vault” or “the Company”), a leader in sustainable, grid-scale energy storage solutions, announced financial results for the first quarter ended March 31, 2024.

“In the first quarter of 2024, the Energy Vault team continued to execute on the most important priority set at the beginning of 2023 – deployments of our first energy storage projects across multiple customers delivered on time, on budget and at the quality, safety and performance levels that meet or exceed our customer expectations,” said Robert Piconi, Chairman and CEO of Energy Vault. “We are looking forward to our Investor & Analyst Day tomorrow where we will provide insight to the Company’s strategy, business model, customer testimonials on executed projects, new product updates and 2024-25 financial guidance. We also plan to provide updates on the Gravity Energy Storage System (GESS) project in Rudong, China, our project in Snyder, Texas, new territory expansions, and project awards.”

First Quarter 2024 Financial Highlights

  • First quarter revenue of $7.8 million from Utility and IPP storage projects with NV Energy and Jupiter Power, in line with prior year seasonality; GESSOL licensing revenue expected to be recognized later this year.
  • First quarter GAAP gross margin of 26.7% and gross profit of $2.1 million driven by strong commissioning and construction project management, and a favorable mix of higher margin service delivery.
  • First quarter net loss improved $10 million or 32% year-over-year to $(21.1) million from $(31.2) million due to lower operating expenses and higher other income.
  • Cash OpEx of $16.7 million improved 22% year-over-year and 14% quarter-over-quarter due to cost-side measures undertaken in Q4 2023.
  • Adjusted EBITDA improved $4.6 million or 24% year-over-year to $(14.4) million from $(19.0) million due to lower operating expenses.
  • Total cash and cash equivalents of $136.8 million and no debt on the balance sheet as of March 31, 2024. Cash balance was in-line with our previously-provided Q1 2024 guidance. Restricted cash of $1.0 million as of March 31, 2024 declined from $35.6 million as of December 31, 2023.
  • 2024-2025 financial guidance including revenue, gross margin, Adjusted EBITDA and year-end cash balance will be provided at our Investor & Analyst Day tomorrow, May 9th, 2024.

Operating and Other Highlights

  • Continued commissioning, testing, energization and initial operation of the first 25MW, 100MWh GESS in Rudong, China with China Tianying Inc (CNTY) (CN:000035). Extended contract with Atlas Renewable from 7.5 to 15 years.
  • Completed and began commercial operation on the 440 MWh Battery Energy Storage System (BESS) with NV Energy. Built on the site of a decommissioned coal-fired electric generating facility, the grid-tied BESS, one of the largest in Nevada, is a 2-hour 220 MW system designed to store and dispatch excess renewable energy, including wind and solar power.
  • Continued construction of the largest green hydrogen long duration energy storage system in the US with PG&E in Calistoga, California. The project is supported by a 10.5-year tolling agreement with commercial operation expected in summer 2024. This solidifies Energy Vault’s global leadership role in long duration energy storage and green hydrogen technology for multi-day and ultra-long duration micro-grids.
  • All other operating and commercial highlights will be reviewed at the Investor and Analyst Day.

Investor & Analyst Day Information

In lieu of hosting a dedicated financial results conference call, Energy Vault will discuss the latest quarterly results and wider financial and operational updates at its inaugural Investor & Analyst Day on Thursday, May 9, 2024 at 9:00 AM ET at the New York Stock Exchange. In addition, the Company will provide insight to the Company’s strategy, business model, customer testimonials on executed projects, new product updates and 2024-25 financial guidance. Key members of the Energy Vault executive team will be present, including Robert Piconi (Chairman and CEO), and Michael Beer (Chief Financial Officer).

To attend the Investor & Analyst Day virtually, please register at https://www.energyvault.com/rsvpinvestorday2024. Presentation materials and further information will be made available on the Company’s investor relations website at https://investors.energyvault.com. A replay and transcript of the event will be available shortly after the event.

About Energy Vault

Energy Vault® develops and deploys utility-scale energy storage solutions designed to transform the world's approach to sustainable energy storage. The Company's comprehensive offerings include proprietary gravity-based storage, battery storage, and green hydrogen energy storage technologies. Each storage solution is supported by the Company’s hardware technology-agnostic energy management system software and integration platform. Unique to the industry, Energy Vault’s innovative technology portfolio delivers customized short-and-long-duration energy storage solutions to help utilities, independent power producers, and large industrial energy users significantly reduce levelized energy costs while maintaining power reliability. Utilizing eco-friendly materials with the ability to integrate waste materials for beneficial reuse, Energy Vault’s EVx™ gravity-based energy storage technology is facilitating the shift to a circular economy while accelerating the global clean energy transition for its customers. Please visit www.energyvault.com for more information.

Non-GAAP measures

Energy Vault has provided a reconciliation of net loss to adjusted EBITDA, with net loss being the most directly comparable GAAP measure, for the historical periods in this press release.

Forward-Looking Statements

This press release includes forward-looking statements that reflect the Company’s current views with respect to, among other things, the Company’s operations and financial performance. Forward-looking statements include information concerning possible or assumed future results of operations, including descriptions of our business plan and strategies. These statements often include words such as “anticipate,” “expect,” “suggest,” “plan,” “believe,” “intend,” “project,” “forecast,” “estimates,” “targets,” “projections,” “should,” “could,” “would,” “may,” “might,” “will” and other similar expressions. We base these forward-looking statements or projections on our current expectations, plans, and assumptions, which we have made in light of our experience in our industry, as well as our perceptions of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances at the time. These forward-looking statements are based on our beliefs, assumptions, and expectations of future performance, taking into account the information currently available to us. These forward-looking statements are only predictions based upon our current expectations and projections about future events. These forward-looking statements involve significant risks and uncertainties that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements, including changes in our strategy, expansion plans, customer opportunities, future operations, future financial position, estimated revenues and losses, projected costs, prospects and plans; the uncertainly of our awards, bookings and backlogs equating to future revenue; the lack of assurance that non-binding letters of intent and other indication of interest can result in binding orders or sales; the possibility of our products to be or alleged to be defective or experience other failures; the implementation, market acceptance and success of our business model and growth strategy; our ability to develop and maintain our brand and reputation; developments and projections relating to our business, our competitors, and industry; the ability of our suppliers to deliver necessary components or raw materials for construction of our energy storage systems in a timely manner; the impact of health epidemics, on our business and the actions we may take in response thereto; our expectations regarding our ability to obtain and maintain intellectual property protection and not infringe on the rights of others; expectations regarding the time during which we will be an emerging growth company under the JOBS Act; our future capital requirements and sources and uses of cash; the international nature of our operations and the impact of war or other hostilities on our business and global markets; our ability to obtain funding for our operations and future growth; our business, expansion plans and opportunities and other important factors discussed under the caption “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on March 13, 2024, as such factors may be updated from time to time in its other filings with the SEC, accessible on the SEC’s website at www.sec.gov. New risks emerge from time to time, and it is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. Any forward-looking statement made by us in this press release speaks only as of the date of this press release and is expressly qualified in its entirety by the cautionary statements included in this press release. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by any applicable laws. You should not place undue reliance on our forward-looking statements.

 

ENERGY VAULT HOLDINGS, INC.

Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands except par value)

    
    

March 31,
2024

 

December 31,
2023

Assets

Current Assets

Cash and cash equivalents

$

135,773

 

 

$

109,923

 

Restricted cash

 

1,011

 

 

 

35,632

 

Accounts receivable, net

 

1,335

 

 

 

27,189

 

Contract assets, net

 

51,328

 

 

 

84,873

 

Inventory

 

415

 

 

 

415

 

Customer financing receivable, current portion, net

 

2,625

 

 

 

2,625

 

Advances to suppliers

 

5,307

 

 

 

8,294

 

Assets held for sale

 

6,281

 

 

 

6,111

 

Prepaid expenses and other current assets

 

3,618

 

 

 

4,520

 

Total current assets

 

207,693

 

 

 

279,582

 

Property and equipment, net

 

47,440

 

 

 

31,043

 

Intangible assets, net

 

2,491

 

 

 

1,786

 

Operating lease right-of-use assets

 

1,436

 

 

 

1,700

 

Customer financing receivable, long-term portion, net

 

6,899

 

 

 

6,698

 

Investments

 

17,365

 

 

 

17,295

 

Other assets

 

2,541

 

 

 

2,649

 

Total Assets

$

285,865

 

 

$

340,753

 

Liabilities and Stockholders’ Equity

 

 

 

Current Liabilities

 

Accounts payable

$

52,564

 

 

$

21,165

 

Accrued expenses

 

15,353

 

 

 

85,042

 

Contract liabilities, current portion

 

1,495

 

 

 

4,923

 

Lease liabilities, current portion

 

427

 

 

 

724

 

Total current liabilities

 

69,839

 

 

 

111,854

 

Deferred pension obligation

 

1,629

 

 

 

1,491

 

Contract liabilities, long-term portion

 

 

 

 

1,500

 

Other long-term liabilities

 

2,138

 

 

 

2,115

 

Total liabilities

 

73,606

 

 

 

116,960

 

Stockholders’ Equity

 

 

 

Preferred stock, $0.0001 par value; 5,000 shares authorized, none issued

 

 

 

 

 

Common stock, $0.0001 par value; 500,000 shares authorized, 147,868 shares issued and outstanding at March 31, 2024; 146,577 shares issued and outstanding at December 31, 2023

 

15

 

 

 

15

 

Additional paid-in capital

 

482,955

 

 

 

473,271

 

Accumulated deficit

 

(269,211

)

 

 

(248,072

)

Accumulated other comprehensive loss

 

(1,500

)

 

 

(1,421

)

Total stockholders’ equity

 

212,259

 

 

 

223,793

 

Total Liabilities and Stockholders’ Equity

$

285,865

 

 

$

340,753

 

        
 

ENERGY VAULT HOLDINGS, INC.

Condensed Consolidated Statements of Operations and Comprehensive Loss
(Unaudited)
(In thousands except per share data)

  
  

Three Months Ended March 31,

 

 

2024

 

 

 

2023

 

Revenue

$

7,759

 

 

$

11,422

 

Cost of revenue

 

5,691

 

 

 

9,003

 

Gross profit

 

2,068

 

 

 

2,419

 

Operating expenses:

 

 

 

Sales and marketing

 

4,170

 

 

 

4,574

 

Research and development

 

6,966

 

 

 

11,178

 

General and administrative

 

15,264

 

 

 

19,400

 

Depreciation and amortization

 

295

 

 

 

209

 

Loss from operations

 

(24,627

)

 

 

(32,942

)

Other income (expense):

 

 

 

Interest expense

 

(8

)

 

 

(1

)

Interest income

 

1,826

 

 

 

1,935

 

Other income (expense), net

 

1,670

 

 

 

(159

)

Loss before income taxes

 

(21,139

)

 

 

(31,167

)

Provision for income taxes

 

 

 

 

 

Net loss

$

(21,139

)

 

$

(31,167

)

 

 

 

 

Net loss per share — basic and diluted

$

(0.14

)

 

$

(0.22

)

Weighted average shares outstanding — basic and diluted

 

147,019

 

 

 

139,669

 

 

 

 

 

Other comprehensive income (loss) — net of tax

 

 

Actuarial (loss) gain on pension

$

(231

)

 

$

164

 

Foreign currency translation gain

 

152

 

 

 

121

 

Total other comprehensive (loss) income

 

(79

)

 

 

285

 

Total comprehensive loss

$

(21,218

)

 

$

(30,882

)

        
 

ENERGY VAULT HOLDINGS, INC.

Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)

  
  

Three Months Ended March 31,

 

 

2024

 

 

 

2023

 

Cash Flows From Operating Activities

Net loss

$

(21,139

)

 

$

(31,167

)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

 

 

 

Depreciation and amortization

 

295

 

 

 

209

 

Non-cash interest income

 

(375

)

 

 

(334

)

Stock based compensation

 

9,684

 

 

 

13,716

 

Provision (benefit) for credit losses

 

(89

)

 

 

(14

)

Foreign exchange losses

 

60

 

 

 

170

 

Change in operating assets

 

59,725

 

 

 

(35,504

)

Change in operating liabilities

 

(47,214

)

 

 

(17,848

)

Net cash provided by (used in) operating activities

 

947

 

 

 

(70,772

)

Cash Flows From Investing Activities

 

Purchase of property and equipment

 

(8,598

)

 

 

(11,635

)

Purchase of property and equipment held for sale

 

(170

)

 

 

 

Purchase of equity securities

 

 

 

 

(6,000

)

Net cash used in investing activities

 

(8,768

)

 

 

(17,635

)

Cash Flows From Financing Activities

 

Proceeds from exercise of stock options

 

 

 

 

35

 

Repayment of insurance premium financings

 

(358

)

 

 

 

Payment of taxes related to net settlement of equity awards

 

(297

)

 

 

(800

)

Payment of finance lease obligations

 

(23

)

 

 

(10

)

Net cash used in financing activities

 

(678

)

 

 

(775

)

Effect of exchange rate changes on cash, cash equivalents, and restricted cash

 

(272

)

 

 

(27

)

Net decrease in cash, cash equivalents, and restricted cash

 

(8,771

)

 

 

(89,209

)

Cash, cash equivalents, and restricted cash  –  beginning of the period

 

145,555

 

 

 

286,182

 

Cash, cash equivalents, and restricted cash –  end of the period

 

136,784

 

 

 

196,973

 

Less: Restricted cash at end of period

 

1,011

 

 

 

82,417

 

Cash and cash equivalents - end of period

$

135,773

 

 

$

114,556

 

 

 

 

 

Supplemental Disclosures of Cash Flow Information:

 

Income taxes paid

 

 

 

 

 

Cash paid for interest

 

8

 

 

 

1

 

Supplemental Disclosures of Non-Cash Investing and Financing Information:

 

 

 

Actuarial (loss) gain on pension

 

(231

)

 

 

164

 

Property, plant and equipment financed through accounts payable

 

4,798

 

 

 

4,021

 

Assets acquired on finance lease

 

60

 

 

 

 

        

Non-GAAP Financial Measures

To complement our condensed consolidated statements of operations, we use non-GAAP financial measures of adjusted selling and marketing (“S&M”) expenses, adjusted research and development (“R&D”) expenses, adjusted general and administrative (“G&A”) expenses, and adjusted EBITDA. Management believes that these non-GAAP financial measures complement our GAAP amounts and such measures are useful to securities analysts and investors to evaluate our ongoing results of operations when considered alongside our GAAP measures. The presentation of these non-GAAP measures is not meant to be considered in isolation or as an alternative to net loss as an indicator of our performance.

The following table provides a reconciliation from GAAP S&M expenses to non-GAAP adjusted S&M expenses (amounts in thousands):

 

Three Months Ended March 31,

 

2024

 

2023

S&M expenses (GAAP)

$

4,170

 

$

4,574

Non-GAAP adjustment:

 

 

 

Stock-based compensation expense

 

1,715

 

 

1,949

Adjusted S&M expenses (non-GAAP)

$

2,455

 

$

2,625

      

The following table provides a reconciliation from GAAP R&D expenses to non-GAAP adjusted R&D expenses (amounts in thousands):

 

Three Months Ended March 31,

 

2024

 

2023

R&D expenses (GAAP)

$

6,966

 

$

11,178

Non-GAAP adjustment:

 

 

 

Stock-based compensation expense

 

2,227

 

 

3,149

Adjusted R&D expenses (non-GAAP)

$

4,739

 

$

8,029

      

The following table provides a reconciliation from GAAP G&A expenses to non-GAAP adjusted G&A expenses (amounts in thousands):

 

Three Months Ended March 31,

 

2024

 

2023

G&A expenses (GAAP)

$

15,264

 

$

19,400

Non-GAAP adjustment:

 

 

 

Stock-based compensation expense

 

5,742

 

 

8,618

Adjusted G&A expenses (non-GAAP)

$

9,522

 

$

10,782

      

The following table provides a reconciliation from net loss to non-GAAP adjusted EBITDA, with net loss being the most directly comparable GAAP measure (amounts in thousands):

 

Three Months Ended March 31,

 

 

2024

 

 

 

2023

 

Net loss (GAAP)

$

(21,139

)

 

$

(31,167

)

Non-GAAP Adjustments:

 

 

 

 

Interest income, net

 

(1,818

)

 

 

(1,934

)

Provision for income taxes

 

 

 

 

 

Depreciation and amortization

 

295

 

 

 

209

 

Stock-based compensation expense

 

9,684

 

 

 

13,716

 

Gain on satisfaction of contract liability

 

(1,500

)

 

 

 

Foreign exchange losses

 

60

 

 

 

170

 

Adjusted EBITDA (non-GAAP)

$

(14,418

)

 

$

(19,006

)

We present adjusted EBITDA, which is net loss excluding adjustments that are outlined in the quantitative reconciliation provided above, as a supplemental measure of our performance and because we believe this measure is frequently used by securities analysts, investors, and other interested parties in the evaluation of companies in our industry. The adjusted EBITDA measure excludes the financial impact of items management does not consider in assessing our ongoing operating performance, and thereby facilitates review of our operating performance on a period-to-period basis.

In evaluating adjusted EBITDA, one should be aware that in the future we may incur expenses similar to the adjustments noted above. Our presentation of adjusted EBITDA should not be construed as an inference that our future results will be unaffected by these types of adjustments. Adjusted EBITDA is not a measurement of our financial performance under GAAP and should not be considered as an alternative to net loss, operating loss, or any other performance measures derived in accordance with GAAP or as an alternative to cash flow from operating activities as a measure of our liquidity.

Our adjusted EBITDA measure has limitations as an analytical tool, and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are:

  • it does not reflect our cash expenditures, future requirements for capital expenditures, or contractual commitments;
  • it does not reflect changes in, or cash requirements for, our working capital needs;
  • it does not reflect stock-based compensation, which is an ongoing expense;
  • although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and our adjusted EBITDA measure does not reflect any cash requirements for such replacements;
  • it is not adjusted for all non-cash income or expense items that are reflected in our condensed consolidated statements of cash flows;
  • it does not reflect the impact of earnings or charges resulting from matters we consider not to be indicative of our ongoing operations;
  • it does not reflect limitations on or costs related to transferring earnings from our subsidiaries to us; and
  • other companies in our industry may calculate this measure differently than we do, limiting its usefulness as a comparative measure.

Because of these limitations, adjusted EBITDA should not be considered as a measure of discretionary cash available to us to invest in the growth of our business or as a measure of cash that will be available to use to meet our obligations. You should compensate for these limitations by relying primarily on our GAAP results and using adjusted EBITDA only supplementally.

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