Tigo Energy Inc (TYGO) Q3 2024 Earnings Call Highlights: Navigating Challenges with Strategic Growth

In This Article:

  • Revenue: $14.2 million for Q3 2024, a decrease of 16.8% year-over-year.

  • Sequential Revenue Growth: Increased 12.1% from the previous quarter.

  • Gross Profit: $1.8 million, representing 12.5% of revenue.

  • Operating Expenses: $12.2 million, a decline of 20.7% year-over-year.

  • Operating Loss: $10.4 million, a decrease of 7.2% year-over-year.

  • GAAP Net Loss: $13.1 million for Q3 2024.

  • Adjusted EBITDA Loss: $8.3 million, a decrease of 12.7% year-over-year.

  • Cash and Equivalents: $19.5 million as of September 30, 2024.

  • Accounts Receivable: Increased to $8.8 million from $6.9 million last quarter.

  • Inventory: Decreased by $4.5 million to $46.8 million.

  • Q4 2024 Revenue Guidance: Expected to range between $14 million and $17 million.

  • Q4 2024 Adjusted EBITDA Loss Guidance: Expected to range between $6.5 million and $8.5 million.

Release Date: November 06, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Tigo Energy Inc (NASDAQ:TYGO) experienced increased quarterly revenue growth in each of the last three quarters of 2024.

  • The company gained market share in the global DC optimizer market, increasing from 9% in 2022 to 13% in 2023.

  • Tigo Energy Inc (NASDAQ:TYGO) successfully penetrated the utility scale market, securing a significant project in Brazil.

  • The Predict+ AI-based energy consumption and production platform continues to grow, with 62,000 meters under management.

  • Positive sales growth was observed in several regions, including the Czech Republic, Spain, the United Kingdom, Puerto Rico, and Australia.

Negative Points

  • Revenue for the third quarter of 2024 decreased by 16.8% compared to the prior year period.

  • Gross profit declined due to an inventory charge of $3.4 million, primarily for battery inventory.

  • The company reported an operating loss of $10.4 million for the third quarter.

  • GAAP net loss for the third quarter was $13.1 million, compared to a net income of $29.1 million in the prior year period.

  • The company faces sluggish or negative growth in larger markets such as Germany, Italy, and the Netherlands.

Q & A Highlights

Q: Can you provide an outlook for margins as we move through 2025, considering the low margins in Q3? A: Bill Roeschlein, CFO: Our margins, excluding inventory charges, are typically in the mid-30s. Without the inventory charge this quarter, margins would have been around 35%. We expect margins to normalize in the mid-30s next year and potentially grow into the high 30s, aiming for 40% as we gain economies of scale.