Operating and Other Recent Highlights
LUGANO, Switzerland & WESTLAKE VILLAGE, Calif. / Aug 08, 2023 / 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 second quarter ended June 30, 2023.
Robert Piconi, Chairman and CEO of Energy Vault, stated, “I am pleased with our continued progress this quarter with our primary focus on project execution to customer and contractual commitments on our first energy storage systems. As recently announced, we have commenced commissioning of the world's first 100 MWh EVx™ gravity-based energy storage system in Rudong, China as planned. We expect this first of a kind system to be fully grid interconnected in Q4 while delivering renewable energy to the State Grid Corporation of China (“SGCC”), one of the largest utilities in the world.
Here in the US, we are also approaching final turnover of our first 275 MWh battery energy storage project with W Power and Wellhead Electric in Stanton, California. Based on our proprietary design and Energy Management Software, the Stanton system will be one of the largest energy storage systems in southern California, providing power for a high-demand load center after having met very challenging energy density requirements given the limited footprint available. Hardware and software performance has exceeded expectations and we are excited about the project’s ability to provide clean energy and grid resiliency for the community.”
Mr. Piconi continued, “Our technology-agnostic software platform coupled with deep domain, operational and project implementation expertise of our team is showing well as we begin system commissioning and final project turnover on our first systems. These strengths and unique technology portfolio form the foundation that allows us to craft distinctive solutions for energy storage across short, long, and ultra-long duration needs throughout our global customer base. We will continue our obsession with serving customer needs with the best technology, talent and ‘fit for purpose’ approach that has allowed Energy Vault to be a global leader in energy storage within such a short period.”
Second Quarter 2023 and Recent Business Highlights:
2023 Outlook:
Energy Vault is reiterating its previously announced 2023 financial outlook, including:
Conference Call Information
Energy Vault will host a conference call today, August 8, 2023 at 8:30 AM ET to discuss the results, followed by a Q&A session. A live webcast of the call can be accessed at https://investors.energyvault.com/events-and-presentations/events. To access the call, participants may dial 1-877-704-4453, international callers may use 1-201-389-0920, and request to join the Energy Vault earnings call. A telephonic replay will be available shortly after the conclusion of the call and until, August 22, 2023. Participants may access the replay at 1-844-512-2921; international callers may use 1-412-317-6671 and enter access code 13739418. The call will also be available for replay via webcast link on the Investors portion of the Energy Vault website at https://www.energyvault.com/.
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. A reconciliation of projected non-GAAP measures for the full-year 2023 has not been provided because certain information necessary to calculate such measures on a GAAP basis is unavailable or dependent on the timing of future events outside of our control. Therefore, because of the uncertainty and variability of the nature of the amount of future adjustments, which could be significant, the Company is unable to provide a reconciliation for these forward-looking non-GAAP measures without unreasonable effort.
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 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; 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, 2022 filed with the SEC on April 13, 2023, 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. | |||||||
| June 30, |
| December 31, | ||||
Assets | | | | ||||
Current Assets | | | | ||||
Cash and cash equivalents | $ | 107,049 |
|
| $ | 203,037 |
|
Restricted cash |
| 57,988 |
|
|
| 83,145 |
|
Accounts receivable, net |
| 5,114 |
|
|
| 37,460 |
|
Contract assets, net |
| 62,434 |
|
|
| 28,978 |
|
Inventory |
| 4 |
|
|
| 4,378 |
|
Customer financing receivable, current portion, net |
| 1,313 |
|
|
| 1,500 |
|
Advances to suppliers |
| 82,865 |
|
|
| 24,327 |
|
Prepaid expenses and other current assets |
| 5,209 |
|
|
| 7,242 |
|
Total current assets |
| 321,976 |
|
|
| 390,067 |
|
Property and equipment, net |
| 23,909 |
|
|
| 3,044 |
|
Operating lease right-of-use assets, net |
| 1,330 |
|
|
| 1,442 |
|
Customer financing receivable, long-term portion, net |
| 7,609 |
|
|
| 8,260 |
|
Other assets |
| 20,511 |
|
|
| 13,900 |
|
Total Assets | $ | 375,335 |
|
| $ | 416,713 |
|
Liabilities and Stockholders’ Equity |
|
|
| ||||
Current Liabilities | |
| | ||||
Accounts payable | $ | 7,574 |
|
| $ | 60,315 |
|
Accrued expenses |
| 27,577 |
|
|
| 14,749 |
|
Contract liabilities, current portion |
| 88,364 |
|
|
| 49,434 |
|
Lease liabilities, current portion |
| 862 |
|
|
| 825 |
|
Total current liabilities |
| 124,377 |
|
|
| 125,323 |
|
Deferred pension obligation |
| 965 |
|
|
| 890 |
|
Asset retirement obligation |
| 376 |
|
|
| 560 |
|
Contract liabilities, long-term portion |
| 1,500 |
|
|
| 1,500 |
|
Other long-term liabilities |
| 554 |
|
|
| 727 |
|
Total liabilities |
| 127,772 |
|
|
| 129,000 |
|
Stockholders’ Equity |
|
|
| ||||
Preferred stock, $0.0001 par value; 5,000 shares authorized, none issued |
| — |
|
|
| — |
|
Common stock, $0.0001 par value; 500,000 shares authorized, 142,703 shares issued and outstanding at June 30, 2023; 138,530 shares issued and outstanding at December 31, 2022 |
| 14 |
|
|
| 14 |
|
Additional paid-in capital |
| 455,283 |
|
|
| 435,852 |
|
Accumulated deficit |
| (206,958 | ) |
|
| (147,265 | ) |
Accumulated other comprehensive loss |
| (776 | ) |
|
| (888 | ) |
Total stockholders’ equity |
| 247,563 |
|
|
| 287,713 |
|
Total Liabilities and Stockholders’ Equity | $ | 375,335 |
|
| $ | 416,713 |
|
ENERGY VAULT HOLDINGS, INC. | |||||||||||||||
| Three Months Ended June 30, |
| Six Months Ended June 30, | ||||||||||||
|
| 2023 |
|
|
| 2022 |
|
|
| 2023 |
|
|
| 2022 |
|
Revenue | $ | 39,680 |
|
| $ | 977 |
|
| $ | 51,102 |
|
| $ | 43,861 |
|
Cost of revenue |
| 35,733 |
|
|
| 571 |
|
|
| 44,736 |
|
|
| 571 |
|
Gross profit |
| 3,947 |
|
|
| 406 |
|
|
| 6,366 |
|
|
| 43,290 |
|
Operating expenses: |
|
|
|
|
|
|
| ||||||||
Sales and marketing |
| 4,852 |
|
|
| 1,949 |
|
|
| 9,426 |
|
|
| 4,529 |
|
Research and development |
| 10,218 |
|
|
| 8,632 |
|
|
| 21,396 |
|
|
| 17,114 |
|
General and administrative |
| 17,012 |
|
|
| 10,613 |
|
|
| 36,412 |
|
|
| 20,380 |
|
Depreciation and amortization |
| 226 |
|
|
| 1,186 |
|
|
| 435 |
|
|
| 2,404 |
|
Loss from operations |
| (28,361 | ) |
|
| (21,974 | ) |
|
| (61,303 | ) |
|
| (1,137 | ) |
Other income (expense): |
|
|
|
|
|
|
| ||||||||
Interest expense |
| — |
|
|
| — |
|
|
| (1 | ) |
|
| (1 | ) |
Change in fair value of warrant liability |
| — |
|
|
| 15,592 |
|
|
| — |
|
|
| (4,645 | ) |
Transaction costs |
| — |
|
|
| — |
|
|
| — |
|
|
| (20,586 | ) |
Other income, net |
| 2,203 |
|
|
| 249 |
|
|
| 3,979 |
|
|
| 285 |
|
Loss before income taxes |
| (26,158 | ) |
|
| (6,133 | ) |
|
| (57,325 | ) |
|
| (26,084 | ) |
Provision for income taxes |
| 4 |
|
|
| 45 |
|
|
| 4 |
|
|
| 173 |
|
Net loss | $ | (26,162 | ) |
| $ | (6,178 | ) |
| $ | (57,329 | ) |
| $ | (26,257 | ) |
|
|
|
|
|
|
|
| ||||||||
Net loss per share — basic and diluted | $ | (0.18 | ) |
| $ | (0.05 | ) |
| $ | (0.41 | ) |
| $ | (0.24 | ) |
Weighted average shares outstanding — basic and diluted |
| 142,756 |
|
|
| 133,777 |
|
|
| 141,129 |
|
|
| 107,509 |
|
|
|
|
|
|
|
|
| ||||||||
Other comprehensive income (loss) — net of tax |
|
| |
|
|
|
| ||||||||
Actuarial gain on pension | $ | (218 | ) |
| $ | 282 |
|
| $ | (54 | ) |
| $ | 560 |
|
Foreign currency translation gain (loss) |
| 45 |
|
|
| (261 | ) |
|
| 166 |
|
|
| (355 | ) |
Total other comprehensive income |
| (173 | ) |
|
| 21 |
|
|
| 112 |
|
|
| 205 |
|
Total comprehensive loss | $ | (26,335 | ) |
| $ | (6,157 | ) |
| $ | (57,217 | ) |
| $ | (26,052 | ) |
ENERGY VAULT HOLDINGS, INC. | |||||||
| Six Months Ended June 30, | ||||||
|
| 2023 |
|
|
| 2022 |
|
Cash Flows From Operating Activities | | | | ||||
Net loss | $ | (57,329 | ) |
| $ | (26,257 | ) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
| ||||
Depreciation and amortization |
| 435 |
|
|
| 2,404 |
|
Non-cash interest income |
| (681 | ) |
|
| (109 | ) |
Stock based compensation |
| 23,809 |
|
|
| 15,863 |
|
Change in fair value of warrant liability |
| — |
|
|
| 4,645 |
|
Change in pension obligation |
| 1 |
|
|
| 15 |
|
Change in asset retirement obligation |
| (196 | ) |
|
| 37 |
|
Provision (benefit) for credit losses |
| 240 |
|
|
| — |
|
Foreign exchange gains and losses |
| 258 |
|
|
| 33 |
|
Change in operating assets |
| (50,857 | ) |
|
| (30,504 | ) |
Change in operating liabilities |
| (7,504 | ) |
|
| 7,019 |
|
Net cash used in operating activities |
| (91,824 | ) |
|
| (26,854 | ) |
Cash Flows From Investing Activities | |
| | ||||
Purchase of property and equipment |
| (18,817 | ) |
|
| (333 | ) |
Purchase of equity securities |
| (6,000 | ) |
|
| — |
|
Purchase of convertible notes |
| — |
|
|
| (2,000 | ) |
Net cash used in investing activities |
| (24,817 | ) |
|
| (2,333 | ) |
Cash Flows From Financing Activities | |
| | ||||
Proceeds from exercise of stock options |
| 113 |
|
|
| 36 |
|
Proceeds from reverse recapitalization and PIPE financing, net |
| — |
|
|
| 235,940 |
|
Proceeds from exercise of warrants |
| — |
|
|
| 7,854 |
|
Payment of transaction costs related to reverse recapitalization |
| — |
|
|
| (20,651 | ) |
Payment of taxes related to net settlement of equity awards |
| (4,562 | ) |
|
| — |
|
Payment of finance lease obligations |
| (21 | ) |
|
| (19 | ) |
Net cash provided by financing activities |
| (4,470 | ) |
|
| 223,160 |
|
Effect of exchange rate changes on cash, cash equivalents, and restricted cash |
| (34 | ) |
|
| (35 | ) |
Net increase in cash, cash equivalents, and restricted cash |
| (121,145 | ) |
|
| 193,938 |
|
Cash, cash equivalents, and restricted cash – beginning of the period |
| 286,182 |
|
|
| 105,125 |
|
Cash, cash equivalents, and restricted cash – end of the period |
| 165,037 |
|
|
| 299,063 |
|
Less: Restricted cash at end of period |
| 57,988 |
|
|
| — |
|
Cash and cash equivalents - end of period | $ | 107,049 |
|
| $ | 299,063 |
|
|
|
|
| ||||
Supplemental Disclosures of Cash Flow Information: | |
| | ||||
Income taxes paid |
| 46 |
|
|
| 1 |
|
Cash paid for interest |
| 1 |
|
|
| 1 |
|
Supplemental Disclosures of Non-Cash Investing and Financing Information: |
|
|
| ||||
Conversion of redeemable preferred stock into common stock in connection with the reverse recapitalization |
| — |
|
|
| 182,034 |
|
Warrants assumed as part of reverse recapitalization |
| — |
|
|
| 19,838 |
|
Actuarial gain on pension |
| (54 | ) |
|
| 560 |
|
Property, plant and equipment financed through accounts payable |
| 6,108 |
|
|
| — |
|
Non-GAAP Financial Measure
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 June 30, |
| Six Months Ended June 30, | ||||||||
| 2023 |
| 2022 |
| 2023 |
| 2022 | ||||
S&M expenses (GAAP) | $ | 4,852 |
| $ | 1,949 |
| $ | 9,426 |
| $ | 4,529 |
Non-GAAP adjustment: |
|
|
|
|
|
|
| ||||
Stock-based compensation expense |
| 1,727 |
|
| 402 |
|
| 3,676 |
|
| 892 |
Adjusted S&M expenses (non-GAAP) | $ | 3,125 |
| $ | 1,547 |
| $ | 5,750 |
| $ | 3,637 |
The following table provides a reconciliation from GAAP R&D expenses to non-GAAP adjusted R&D expenses (amounts in thousands):
| Three Months Ended June 30, |
| Six Months Ended June 30, | ||||||||
| 2023 |
| 2022 |
| 2023 |
| 2022 | ||||
R&D expenses (GAAP) | $ | 10,218 |
| $ | 8,632 |
| $ | 21,396 |
| $ | 17,114 |
Non-GAAP adjustment: |
|
|
|
|
|
|
| ||||
Stock-based compensation expense |
| 2,785 |
|
| 3,011 |
|
| 5,934 |
|
| 6,792 |
Adjusted R&D expenses (non-GAAP) | $ | 7,433 |
| $ | 5,621 |
| $ | 15,462 |
| $ | 10,322 |
The following table provides a reconciliation from GAAP G&A expenses to non-GAAP adjusted G&A expenses (amounts in thousands):
| Three Months Ended June 30, |
| Six Months Ended June 30, | ||||||||
| 2023 |
| 2022 |
| 2023 |
| 2022 | ||||
G&A expenses (GAAP) | $ | 17,012 |
| $ | 10,613 |
| $ | 36,412 |
| $ | 20,380 |
Non-GAAP adjustment: |
|
|
|
|
|
|
| ||||
Stock-based compensation expense |
| 5,581 |
|
| 3,248 |
|
| 14,199 |
|
| 8,179 |
Adjusted G&A expenses (non-GAAP) | $ | 11,431 |
| $ | 7,365 |
| $ | 22,213 |
| $ | 12,201 |
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 June 30, |
| Six Months Ended June 30, | ||||||||||||
|
| 2023 |
|
|
| 2022 |
|
|
| 2023 |
|
|
| 2022 |
|
Net loss (GAAP) | $ | (26,162 | ) |
| $ | (6,178 | ) |
| $ | (57,329 | ) |
| $ | (26,257 | ) |
Non-GAAP Adjustments: |
|
|
| — |
|
|
| — |
|
|
| ||||
Interest income, net |
| (2,295 | ) |
|
| (284 | ) |
|
| (4,229 | ) |
|
| (331 | ) |
Income tax expense |
| 4 |
|
|
| 45 |
|
|
| 4 |
|
|
| 173 |
|
Depreciation and amortization |
| 226 |
|
|
| 1,186 |
|
|
| 435 |
|
|
| 2,404 |
|
Stock-based compensation expense |
| 10,093 |
|
|
| 6,661 |
|
|
| 23,809 |
|
|
| 15,863 |
|
Change in fair value of warrant liability |
| — |
|
|
| (15,592 | ) |
|
| — |
|
|
| 4,645 |
|
Transaction costs |
| — |
|
|
| — |
|
|
| — |
|
|
| 20,586 |
|
Foreign exchange (gains) and losses |
| 88 |
|
|
| (45 | ) |
|
| 258 |
|
|
| (56 | ) |
Adjusted EBITDA (non-GAAP) | $ | (18,046 | ) |
| $ | (14,207 | ) |
| $ | (37,052 | ) |
| $ | 17,027 |
|
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:
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.
Last Trade: | US$1.69 |
Daily Change: | 0.18 11.92 |
Daily Volume: | 1,179,074 |
Market Cap: | US$257.080M |
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