In This Article:
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Revenue: $14.2 million for Q3 2024, a decrease of 16.8% year-over-year.
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Sequential Revenue Growth: Increased 12.1% from the previous quarter.
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Gross Profit: $1.8 million, representing 12.5% of revenue.
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Operating Expenses: $12.2 million, a decline of 20.7% year-over-year.
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Operating Loss: $10.4 million, a decrease of 7.2% year-over-year.
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GAAP Net Loss: $13.1 million for Q3 2024.
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Adjusted EBITDA Loss: $8.3 million, a decrease of 12.7% year-over-year.
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Cash and Equivalents: $19.5 million as of September 30, 2024.
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Accounts Receivable: Increased to $8.8 million from $6.9 million last quarter.
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Inventory: Decreased by $4.5 million to $46.8 million.
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Q4 2024 Revenue Guidance: Expected to range between $14 million and $17 million.
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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
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Tigo Energy Inc (NASDAQ:TYGO) experienced increased quarterly revenue growth in each of the last three quarters of 2024.
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The company gained market share in the global DC optimizer market, increasing from 9% in 2022 to 13% in 2023.
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Tigo Energy Inc (NASDAQ:TYGO) successfully penetrated the utility scale market, securing a significant project in Brazil.
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The Predict+ AI-based energy consumption and production platform continues to grow, with 62,000 meters under management.
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Positive sales growth was observed in several regions, including the Czech Republic, Spain, the United Kingdom, Puerto Rico, and Australia.
Negative Points
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Revenue for the third quarter of 2024 decreased by 16.8% compared to the prior year period.
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Gross profit declined due to an inventory charge of $3.4 million, primarily for battery inventory.
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The company reported an operating loss of $10.4 million for the third quarter.
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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.
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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.