NYSE$GWH

Ess Tech Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Announced third quarter results, highlighting revenue recognition from an Energy Warehouse™ unit and progress in manufacturing automation.

ESS Tech, Inc. reported revenue of $189 thousand in the third quarter of 2022. The company is focused on increasing production capacity and operational efficiency, including automating their manufacturing line and reducing labor input. They also announced a significant deal with SMUD to supply up to 2 GWh of energy storage over the next five years.

  • Recognized revenue on one Energy Warehouse™ unit in less than three months.
  • Installing a fully-automated manufacturing line expected to be operational before the end of the year, increasing annual production capacity to more than 750 MWh.
  • Reduced labor input to Energy Warehouses by half compared to the start of the year.
  • Announced an agreement with the Sacramento Municipal Utility District (SMUD) to supply up to 2 GWh of long-duration energy storage over the next five years.

Headline financials

Total Revenue

$192K

No prior period
EPS (adj)

-$0.21

Previous: -$5.82+96.4%
Adjusted EBITDA

-$24.4M

No prior period
Capital Expenditures

-$11.2M

Previous: $115K-9827.0%
Free Cash Flow

-$42.8M

Previous: -$141K-30153.7%
Net Income

-$31.6M

Previous: -$51.3M+38.4%
Operating Income

-$27.7M

Previous: -$11M-151.3%
Gross Profit

-$166K

No prior period
Cash & Equivalents

$42.9M

Previous: $8.02M+434.9%
Total Assets

$192M

Previous: $17.8M+976.4%
Stock-Based Comp

$3M

Previous: $260K+1053.1%

Revenue & EPS history

ESS Tech · Revenue · Quarterly

$192K

Q3 2022
Beat estimate in 1 of 14 quarters(7%)
ActualEstimate

Revenue by segment

ESS Tech · $1K total across 1 segment · Q3 2022

  • Revenue - Related Parties
    $1K

Forward guidance

The company is focused on scaling production capacity, improving operational efficiency, and fulfilling the SMUD agreement, while facing risks related to supply chain issues, manufacturing challenges, customer acceptance, and inflationary pressures.

Tailwinds

  • Expected to begin shipping to SMUD next year.
  • ESS also intends to set up facilities for battery system assembly, operations and maintenance support and project delivery in Sacramento, creating local, high-paying jobs.
  • ESS and SMUD plan to team up with local colleges and universities to establish a Center of Excellence to expand and train the workforce that will be needed to support long-duration energy storage technology.
  • The fully-automated manufacturing line is expected to be operational before year end.
  • Value proposition of our long-duration energy storage solutions has never been clearer and we are excited to capitalize on the opportunity it presents.

Headwinds

  • Continuing supply chain issues
  • Delays, disruptions, or quality control problems in the Company’s manufacturing operations
  • The Company’s ability to hire, train and retain an adequate number of manufacturing employees
  • Issues related to the shipment and installation of the Company’s products
  • The Company’s need to achieve significant business growth to achieve sustained, long-term profitability.

Historical earnings impact

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

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2022

Historical avgQ3 2022

-4.1%

Avg return

Earnings day

-9.7%

Avg return

5 days after

-16.4%

Avg return

30 days after

19%

4 / 21 earnings

Positive

+31.3%

Q1 2022

Best reaction

-34.5%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.6%-33.1%-21.8%
Q4 2025-4.4%-3.7%-11.0%
Q3 2025-34.5%-40.7%-50.8%
Q1 2025-15.2%-28.1%-58.6%
Q4 2024-12.6%-27.0%-27.6%
Q3 2024-19.5%-46.0%-44.1%
Q2 2024-12.9%-16.5%-45.8%
Q1 2024-10.9%-16.0%-18.5%
Q4 2023-5.8%-19.5%-17.8%
Q3 2023-7.2%-11.2%-6.4%
Q2 2023-4.1%-20.9%-11.0%
Q1 2023+13.8%+0.0%+22.9%
Q4 2022-8.2%-13.7%-23.6%
Q3 2022-4.9%-9.3%-13.1%
Q2 2022+13.5%+18.3%-6.9%
Q1 2022+31.3%+46.4%-14.1%
Q4 2021+12.1%+25.6%+43.2%
Q2 2021-12.5%-8.9%-27.6%
Q3 2021-1.1%-0.3%-13.1%
Q1 2021+0.0%+0.5%+0.7%
Q4 2020-0.9%-0.4%-0.1%
Q3 2020
Q2 2020
Q1 2020

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