NASDAQ$FLNC

Fluence Energy Inc. · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Fluence's Q3 2022 financial performance was reported, showing a decrease in revenue year-over-year but progress in mitigating margin headwinds and bolstering liquidity.

Fluence Energy, Inc. reported its third quarter 2022 results, with revenue of $239 million, a gross profit margin of approximately negative 2%, and a net loss of $61 million. The company's total cash and cash equivalents were approximately $762 million as of June 30, 2022. Despite a revenue decrease, the company is focused on improving gross profit and maintaining a strong liquidity position.

  • Entered into 311 MW of energy storage product contracts, 81 MW of energy service contracts and 804 MW of Fluence IQ digital contracts during the quarter.
  • First nine months of fiscal year 2022 energy storage product order intake surpassed all of prior fiscal year order intake.
  • Opened India technology center and entered into a binding agreement to form a partnership with ReNew Power in India.
  • Cash position increased over the quarter to more than $760 million.

Headline financials

Total Revenue

$239M

Previous: $278M-14.1%
EPS (adj)

-$0.86

Previous: -$0.78-9.8%
Total Backlog

$2.1B

No prior period
Energy Storage Products Contracted (GW)

311

Previous: 505-38.4%
Service Contracts Contracted (GW)

81

Previous: 70+15.7%
Digital Contracts Contracted (GW)

804

Previous: 575+39.8%
Energy Storage Products Deployed (GW)

1.6K

Previous: 971+62.7%
Service Contracts Assets Under Management (GW)

1.5K

Previous: 772+95.7%
Digital Contracts Assets Under Management (GW)

12.8K

Previous: 3.1K+310.3%
Capital Expenditures

-$2.68M

No prior period
Free Cash Flow

-$22M

No prior period
Net Income

-$19.3M

Previous: -$38.8M+50.1%
Operating Income

-$61M

Previous: -$37M-64.9%
Gross Profit

-$5.2M

Previous: -$15M+65.2%
Cash & Equivalents

$677M

No prior period
Total Assets

$1.67B

No prior period
Stock-Based Comp

-$1.25M

No prior period

Revenue & EPS history

Fluence · Revenue · Quarterly

$239M

Q3 2022-14.1%vs Q3 2021
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Forward guidance

The Company reaffirms fiscal year 2022 total revenue guidance of approximately $1.1 billion.

Tailwinds

  • Guidance is predicated on the on-time arrival of products which are currently in transit.
  • Handover to customers to recognize the related revenue in the remaining 45 days of the quarter.
  • Headwinds related to ongoing COVID-19 related energy storage product shipping delays are expected to lessen.
  • Resulting shifting of project-related revenue into the next fiscal year will continue to lessen during the fourth quarter.
  • Incremental benefits are seen from the Inflation Reduction Act.

Headwinds

  • Ongoing COVID-19 related energy storage product shipping delays.
  • Resulting shifting of project-related revenue into the next fiscal year.
  • Tight battery and inverter market in 2023.
  • Remain under force majeure with many of our battery suppliers.
  • Continue to see project cost overruns as we install and commission our products.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 17 quarterly earnings reports · overlaid with Q3 2022

Historical avgQ3 2022

+0.7%

Avg return

Earnings day

+1.1%

Avg return

5 days after

+1.8%

Avg return

30 days after

50%

9 / 18 earnings

Positive

+39.4%

Q2 2026

Best reaction

-46.4%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026+39.4%+56.9%+68.8%
Q1 2026-34.6%-34.5%-49.0%
Q4 2025+6.5%+24.3%+25.5%
Q2 2025+7.6%+28.2%+4.7%
Q1 2025-46.4%-50.8%-60.1%
Q4 2024-17.5%-18.3%-29.9%
Q3 2024+10.9%+9.8%+27.8%
Q2 2024-9.9%-16.4%+7.4%
Q1 2024+10.1%+13.1%-21.4%
Q4 2023+31.4%+3.9%+41.7%
Q3 2023-5.8%-12.7%-4.1%
Q2 2023+8.2%+25.3%+30.3%
Q1 2023+8.7%-2.2%-19.0%
Q4 2022+36.7%+25.3%+34.3%
Q3 2022-4.4%-9.5%+6.2%
Q2 2022-23.4%-7.0%+13.3%
Q1 2022-2.6%-18.4%-30.3%
Q4 2021-1.7%+2.7%-14.0%
Q3 2021
Q2 2021
Q1 2021
Q4 2020

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