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SLINGERLANDS, N.Y. -On Tuesday, Plug Power Inc. (NASDAQ:PLUG) reported fourth-quarter 2024 revenue of $191.5 million, falling short of analyst expectations of $263.2 million.
The hydrogen technology company’s shares dropped -2.67% in premarket trading following the release.
Despite the revenue miss, Plug Power highlighted significant YoY growth in its electrolyzer business, with revenue in this segment surging 583% compared to the same quarter last year. The company attributed this growth to sales of 5-megawatt systems and a large-scale order deployment.
Operating cash flow improved by 46% YoY in the fourth quarter, which the company said was driven by margin expansion and increased working capital efficiency. However, Plug Power reported a substantial gross margin loss of 122% for the quarter, reflecting strategic decisions to slow investments in certain areas such as mobility and high-power stationary applications.
CEO Andy Marsh commented on the company’s progress, stating, "2024 was a year of strong execution and meaningful strategic progress for Plug as we advanced our initiatives and made strides in driving the hydrogen economy forward."
The company also announced "Project Quantum Leap," a cost-reduction initiative aimed at reducing annual expenses by $150 million to $200 million. This project includes workforce reductions, facility consolidations, and limitations on capital expenditures.
Plug Power closed 2024 with over $200 million in unrestricted cash and expects to continue improving its cash burn in 2025. The company also highlighted the completion of a $30 million transfer of investment tax credits related to its hydrogen generation plant in Georgia.
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