WESTLAKE VILLAGE, Calif. - Energy Vault Holdings, Inc. (NYSE: NRGV), a leader in sustainable, grid-scale energy storage solutions, reported a miss in both earnings and revenue for the fourth quarter of 2023.
The company posted an adjusted loss per share of -$0.15, which was below the analyst estimate of -$0.11. Revenue for the quarter was $118.24 million, falling short of the consensus estimate of $143.61 million.
The company's revenue of $341.5 million for the full year marked a significant increase of 134% YoY, aligning with the annual guidance range. Despite this annual growth, the quarterly figures reflected a lower than expected gross margin of 3.4% for the fourth quarter, primarily due to the timing of revenue and associated gross profit recognition for gravity licenses and battery projects shifting into 2024.
Energy Vault's Chairman and CEO, Robert Piconi, highlighted the successful deployment of the company's first energy storage projects and the commissioning of approximately 1 GWh of battery and hybrid short-duration energy storage systems.
Piconi also pointed to the company's global leadership in long-duration energy storage with gravity energy territory expansions and the commencement of construction on the largest green hydrogen energy storage micro-grid system in the US.
Looking ahead to the first quarter of 2024, Energy Vault expects revenue to be in line with the prior year's first quarter, with stronger double-digit gross margins anticipated due to the shift of revenue and gross margin recognition from Q4 2023 into 2024. The company also anticipates an unrestricted cash balance of approximately $125-150 million exiting Q1 2024.
Following the earnings release, Energy Vault's stock experienced a slight decline of -1.07%, indicating a modest market reaction to the earnings and revenue miss. The company's stock movement suggests investors are cautiously digesting the financial results and the implications of the revenue and profit recognition being pushed to the next fiscal year.
Energy Vault remains debt-free, with an increased cash position of $146 million, and has taken actions to reduce its quarterly cash operating expense run rate by 25-30%. These measures are intended to accelerate the company's shift to cash flow positive exiting 2024 and into FY 2025.
The company's financial results and future outlook will be further discussed at the Investor and Analyst Day scheduled for May 8, 2024, in New York City, following the Q1 financial results call on May 7, 2024.
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