NYSE$GWH

Ess Tech Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Announced third quarter 2023 financial results and strategic partnership with Honeywell.

ESS Tech, Inc. reported a year-to-date revenue increase of nearly 700% compared to last year, reaching $4.7 million. The company commissioned units at existing customer sites, strengthened its balance sheet through a strategic collaboration with Honeywell, and broadened customer traction. They anticipate a material increase in revenue in the fourth quarter, expecting to reach $9 million in revenue for the full year.

  • ESS made significant progress improving internal operations and commissioning units at customer sites.
  • The company strengthened its balance sheet and broadened customer traction.
  • ESS expects a material increase in revenue in the fourth quarter, projecting $9 million for the full year.
  • A transformative partnership with Honeywell validates ESS's iron flow battery technology and market position, bolstering the balance sheet and extending the cash runway into 2025.

Headline financials

Total Revenue

$1.55M

Previous: $192K+704.7%
EPS (adj)

-$0.11

Previous: -$0.21+47.6%
Capital Expenditures

-$4.21M

Previous: -$11.2M+62.4%
Free Cash Flow

-$20.8M

Previous: -$42.8M+51.3%
Net Income

-$16.6M

Previous: -$31.6M+47.4%
Operating Income

-$18.1M

Previous: -$27.7M+34.6%
Gross Profit

-$8.64M

Previous: -$166K-5103.6%
Cash & Equivalents

$37.2M

Previous: $42.9M-13.3%
Total Assets

$159M

Previous: $192M-17.3%
R&D Expense

$1.61M

No prior period
Stock-Based Comp

$2.89M

Previous: $3M-3.6%

Revenue & EPS history

ESS Tech · Revenue · Quarterly

$1.55M

Q3 2023+704.7%vs Q3 2022
Beat estimate in 1 of 14 quarters(7%)
ActualEstimate

Revenue by segment

ESS Tech · $1 total across 1 segment · Q1 2023

  • Revenue - Related Parties
    $1

Forward guidance

ESS anticipates a material increase in revenue in the fourth quarter, expecting to reach $9 million in revenue for the full year. The company is also underway in building its first Energy Center with Portland General Electric and expect it to be operational this year, which should translate to shipping commercial units in the second half of 2024.

Tailwinds

  • Expected material increase in revenue in Q4
  • Full year revenue target of $9 million
  • Transformative partnership with Honeywell to strengthen technology, operations, and go-to-market strategies
  • Cash infusion from Honeywell bolsters balance sheet and extends cash runway into 2025
  • Building first Energy Center with Portland General Electric, expected to be operational this year

Headwinds

  • Continuing supply chain issues
  • Delays, disruptions, or quality control problems in manufacturing operations
  • Ability to hire, train and retain an adequate number of manufacturing employees
  • Issues related to the shipment and installation of products
  • 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 2023

Historical avgQ3 2023

-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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