Tigo Energy, Inc. ("Tigo," or the "Company") (NASDAQ:
TYGO), a leading provider of intelligent solar and energy
storage solutions, today reported unaudited financial results for
the first quarter ended March 31, 2024 and financial guidance for
the second quarter ending June 30, 2024.
Recent Financial and Operational Highlights
- Quarterly revenue of $9.8 million
- GAAP gross margin of 28.2%
- GAAP operating loss of $9.1 million
- GAAP net loss of $11.5 million
- Adjusted EBITDA loss of $6.3 million
- Shipped 249,000 MLPE, or approximately 100MW DC assuming an
average panel size of 400W
- Launched the TS4-X Family, consisting of the TS4-X-O, TS4-X-S,
and TS4-X-F MLPE device models. These models boast enhanced safety
features, a 25A current rating, and a max power rating of 800W
- Introduced the Tigo GO EV Charger residential solar solution
for the Italian market
Management Commentary
“This quarter, we started seeing meaningful progress in the
reduction of industry-wide inventory overhang challenges that have
persisted since the second quarter of 2023,” said Zvi Alon,
Chairman and CEO of Tigo. “We closed the quarter with $9.8 million
in revenue and an adjusted EBITDA loss of $6.3 million, both
sequential improvements and within or ahead of our stated outlook.
In addition, we announced the introduction of our TS4-X product
family, specifically geared to address the high-current and
high-power panel requirements in the C&I and utility markets.
The TS4-X product family incorporates a unique multi-factor rapid
shutdown capability and allows for flexible solar panel system
design for customers who require different combinations of
optimization, monitoring, and rapid shut-down.
“Looking ahead, we expect our revenues and profitability to
continue to improve over the remainder of 2024,” Alon continued.
“We are seeing a more stabilized environment in the U.S. market and
pockets of growth and recovery within the EMEA region, including
restocking activity among our customers as they start to replenish
their inventory. Our GO ESS products also continue to be
well-received and represented approximately 14% of our revenues in
the quarter.”
“We continue to proactively manage our costs and implemented
additional cost-reduction efforts in April to reduce our cash spend
and improve our adjusted EBITDA break-even point,” stated Bill
Roeschlein, Chief Financial Officer of Tigo. “With these changes
and considering our current supply of inventory on-hand, we expect
a cash break-even point at a quarterly revenue level of
approximately $17 million to $19 million and an adjusted EBITDA
break-even point at a quarterly revenue level of approximately $33
million to $35 million on a normalized basis. We believe that our
revenues will continue to improve in the second half of the year
based on expectations for a recovery in the industry, which would
allow us to achieve profitable growth in the near future.”
First Quarter 2024 Financial Results
Results compare the 2024 fiscal first quarter ended March 31,
2024 to the 2023 fiscal first quarter ended March 31, 2023, unless
otherwise indicated.
- Revenues totaled $9.8 million, an 80.4% decrease from $50.1
million in the prior year comparable period. On a sequential basis,
revenues increased by $0.5 million, or 6.0%.
- Gross profit totaled $2.8 million, or 28.2% of total revenue,
an 84.9% decrease from $18.4 million, or 36.7% of total revenue, in
the prior year comparable period.
- Total operating expenses totaled $11.9 million, a 12.4%
increase from $10.6 million in the prior year comparable
period.
- Net loss totaled $11.5 million, compared to a net income of
$6.9 million for the prior year comparable period.
- Adjusted EBITDA loss totaled $6.3 million, compared to an
adjusted EBITDA of $8.6 million for the prior year comparable
period.
- Cash, cash equivalents, and marketable securities totaled $21.9
million at March 31, 2024. During the quarter, the Company’s
accounts payable decreased $9.7 million to $6.0 million at the end
of the first quarter compared to $15.7 million at the beginning of
the quarter.
Second Quarter 2024 Outlook
The Company also provides guidance for the second quarter ending
June 30, 2024 as follows:
- Revenues are expected to be within the range of $12.0 million
to $16.0 million.
- Adjusted EBITDA loss is expected to be within the range of $5.5
million to $8.0 million.
Actual results may differ materially from the Company’s guidance
as a result of, among other things, the factors described below
under “Forward-Looking Statements.”
Conference Call
Tigo management will hold a conference call today, May 14, 2024,
at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time) to discuss these
results. Company CEO Zvi Alon and CFO Bill Roeschlein will host the
call, followed by a question-and-answer period.
Registration Link: Click here to register
Please register online at least 10 minutes prior to the start
time. If you have any difficulty with registration or connecting to
the conference call, please contact Gateway Group at (949)
574-3860.
The conference call will be broadcast live and available for
replay here and via the Investor Relations section of Tigo’s
website.
About Tigo Energy, Inc.
Founded in 2007, Tigo is a worldwide leader in the development
and manufacture of smart hardware and software solutions that
enhance safety, increase energy yield, and lower operating costs of
residential, commercial, and utility-scale solar systems. Tigo
combines its Flex MLPE (Module Level Power Electronics) and solar
optimizer technology with intelligent, cloud-based software
capabilities for advanced energy monitoring and control. Tigo MLPE
products maximize performance, enable real-time energy monitoring,
and provide code-required rapid shutdown at the module level. The
Company also develops and manufactures products such as inverters
and battery storage systems for the residential solar-plus-storage
market. For more information, please visit www.tigoenergy.com.
Forward-Looking Statements
This press release contains “forward-looking statements” within
the meaning of the Private Securities Litigation Reform Act of
1995. Such statements include, but are not limited to, statements
about our ability to reach cash flow break-even, adjusted EBITDA
break-even and long-term growth prospects, expectations regarding a
recovery in our industry, including the timing thereof, current and
future inventory levels and its impact on future financial results,
statements about our ability to penetrate new markets and expand
our market share, including expansion in international markets, our
continued expansion of and investments in our product portfolio,
and future financial and operating results, our plans, objectives,
expectations and intentions with respect to future operations,
products and services; and other statements identified by words
such as “will likely result,” “are expected to,” “will continue,”
“is anticipated,” “estimated,” “expected,” “believe,” “intend,”
“plan,” “projection,” “outlook” or words of similar meaning. These
forward-looking statements are based upon the current beliefs and
expectations of Tigo’s management and are inherently subject to
significant business, economic and competitive uncertainties and
contingencies, many of which are difficult to predict and generally
beyond our control. Actual results and the timing of events may
differ materially from the results anticipated in these
forward-looking statements.
In addition to factors previously disclosed, or that will be
disclosed in, our reports filed with the SEC, factors which may
cause actual results to differ materially from current expectations
include, but are not limited to, our ability to effectively develop
and sell our product offerings and services, our ability to compete
in the highly competitive and evolving solar industry; our ability
to manage risks associated with seasonal trends and the cyclical
nature of the solar industry; whether we continue to grow our
customer base; whether we continue to develop new products and
innovations to meet constantly evolving customer demands; the
timing and level of demand for our solar energy solutions; changes
in government subsidies and economic incentives for solar energy
solutions; our ability to acquire or make investments in other
businesses, patents, technologies, products or services to grow the
business and realize the anticipated benefits therefrom; our
ability to meet future liquidity requirements; our ability to
respond to fluctuations in foreign currency exchange rates and
political unrest and regulatory changes in international markets
into which we expand or otherwise operate in; our failure to
attract, hire retain and train highly qualified personnel in the
future; and if we are unable to maintain key strategic
relationships with our partners and distributors.
Actual results, performance or achievements may differ
materially, and potentially adversely, from any projections and
forward-looking statements and the assumptions on which those
forward-looking statements are based. There can be no assurance
that the forward-looking statements contained herein are reflective
of future performance to any degree. You are cautioned not to place
undue reliance on forward-looking statements as a predictor of
future performance as projected financial information and other
information are based on estimates and assumptions that are
inherently subject to various significant risks, uncertainties and
other factors, many of which are beyond our control. All
information set forth herein speaks only as of the date hereof, and
we disclaim any intention or obligation to update any
forward-looking statements as a result of new information, future
developments or otherwise occurring after the date of this
communication.
Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are
prepared and presented in accordance with GAAP, we use the
following non-GAAP financial measure: adjusted EBITDA. The
presentation of this financial measure is not intended to be
considered in isolation or as a substitute for, or superior to, the
financial information prepared and presented in accordance with
GAAP.
We use adjusted EBITDA for financial and operational
decision-making and as a means to evaluate period-to-period
comparisons. We define adjusted EBITDA, a non-GAAP financial
measure, as earnings (loss) before interest and other expenses,
net, income tax expense (benefit), depreciation and amortization,
as adjusted to exclude stock-based compensation and merger
transaction related expenses. We believe that adjusted EBITDA
provides helpful supplemental information regarding our performance
by excluding certain items that may not be indicative of our
recurring core business operating results. We believe that both
management and investors benefit from referring to adjusted EBITDA
in assessing our performance and when planning, forecasting, and
analyzing future periods. Adjusted EBITDA also facilitates
management’s internal comparisons to our historical performance and
comparisons to our competitors’ operating results. We believe
adjusted EBITDA is useful to investors both because it (i) allows
for greater transparency with respect to key metrics used by
management in its financial and operational decision-making and
(ii) is used by our institutional investors and the analyst
community to help them analyze the health of our business.
The items excluded from adjusted EBITDA may have a material
impact on our financial results. Certain of those items are
non-recurring, while others are non-cash in nature. Accordingly,
adjusted EBITDA is presented as supplemental disclosure and should
not be considered in isolation of, as a substitute for, or superior
to, the financial information prepared in accordance with GAAP.
There are a number of limitations related to the use of non-GAAP
financial measures. We compensate for these limitations by
providing specific information regarding the GAAP amounts excluded
from these non-GAAP financial measures and evaluating these
non-GAAP financial measures together with their relevant financial
measures in accordance with GAAP.
We refer investors to the reconciliation adjusted EBITDA to net
income (loss) included below. A reconciliation for adjusted EBITDA
provided as guidance is not provided because, as a forward-looking
statement, such reconciliation is not available without
unreasonable effort due to the high variability, complexity, and
difficulty of estimating certain items such as charges to
stock-based compensation expense and currency fluctuations which
could have an impact on our consolidated results.
Tigo Energy, Inc.
Condensed Consolidated Balance
Sheets
(in thousands)
(unaudited)
March 31,
2024
December 31,
2023
ASSETS
Current assets:
Cash and cash equivalents
$
9,025
$
4,405
Marketable securities, short-term
12,920
26,806
Accounts receivable, net
6,306
6,862
Inventory, net
55,757
61,401
Prepaid expenses and other current
assets
4,388
5,236
Total current assets
88,396
104,710
Property and equipment, net
3,375
3,458
Operating right-of-use assets
2,285
2,503
Marketable securities, long-term
—
1,977
Intangible assets, net
2,125
2,192
Other assets
731
728
Goodwill
12,209
12,209
Total assets
$
109,121
$
127,777
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
Accounts payable
$
6,030
$
15,685
Accrued expenses and other current
liabilities
6,039
8,681
Deferred revenue, current portion
444
335
Warranty liability, current portion
522
526
Operating lease liabilities, current
portion
1,124
1,192
Total current liabilities
14,159
26,419
Warranty liability, net of current
portion
4,957
5,106
Deferred revenue, net of current
portion
607
466
Long-term debt, net of unamortized debt
discount and issuance costs
33,805
31,570
Operating lease liabilities, net of
current portion
1,269
1,392
Total liabilities
54,797
64,953
Stockholders’ equity:
Common stock
6
6
Additional paid-in capital
141,651
138,657
Accumulated deficit
(87,286
)
(75,780
)
Accumulated other comprehensive loss
(47
)
(59
)
Total stockholders’ equity
54,324
62,824
Total liabilities and stockholders’
equity
$
109,121
$
127,777
Tigo Energy, Inc.
Condensed Consolidated
Statement of Operations
(in thousands, except share
and per share data)
(unaudited)
Three Months Ended March
31,
2024
2023
Net revenue
$
9,802
$
50,058
Cost of revenue
7,036
31,689
Gross profit
2,766
18,369
Operating expenses:
Research and development
2,471
2,214
Sales and marketing
4,603
4,772
General and administrative
4,780
3,563
Total operating expenses
11,854
10,549
(Loss) income from operations
(9,088
)
7,820
Other (income) expenses:
Change in fair value of preferred stock
warrant and contingent shares liability
(196
)
512
Loss on debt extinguishment
—
171
Interest expense
2,826
778
Other income, net
(212
)
(551
)
Total other expenses, net
2,418
910
Net (loss) income
(11,506
)
6,910
Dividends on Series D and Series E
convertible preferred stock
—
(2,152
)
Net (loss) income attributable to common
stockholders
$
(11,506
)
$
4,758
(Loss) earnings per common share
Basic
$
(0.19
)
$
0.09
Diluted
$
(0.19
)
$
0.05
Weighted-average common shares
outstanding
Basic
59,374,019
6,481,862
Diluted
59,374,019
11,005,136
Tigo Energy, Inc.
Condensed Consolidated
Statements of Cash Flows
(in thousands)
(unaudited)
Three Months Ended March
31,
2024
2023
Cash Flows from Operating
activities:
Net (loss) income
$
(11,506
)
$
6,910
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization
310
242
Reserve for inventory obsolescence
423
52
Change in fair value of preferred stock
warrant and contingent shares liability
(196
)
512
Non-cash interest expense
2,235
47
Stock-based compensation
2,505
366
Allowance for credit losses
(990
)
109
Loss on debt extinguishment
—
171
Non-cash lease expense
300
167
Accretion of interest on marketable
securities
(128
)
(7
)
Changes in operating assets and
liabilities:
Accounts receivable
1,546
(16,535
)
Inventory
5,221
(11,780
)
Prepaid expenses and other assets
845
(1,175
)
Accounts payable
(9,448
)
14,815
Accrued expenses and other liabilities
(2,207
)
407
Deferred revenue
250
486
Warranty liability
(153
)
275
Operating lease liabilities
(273
)
(149
)
Net cash used in operating activities
$
(11,266
)
$
(5,087
)
Investing activities:
Purchase of marketable securities
—
(10,068
)
Acquisition of fSight
—
55
Purchase of intangible assets
—
(450
)
Purchase of property and equipment
(367
)
(192
)
Sales and maturities of marketable
securities
16,003
—
Net cash provided (used) by investing
activities
$
15,636
$
(10,655
)
Financing activities:
Proceeds from Convertible Promissory
Note
—
50,000
Repayment of from Series 2022-1 Notes
—
(20,833
)
Payment of financing costs
—
(100
)
Payment of deferred issuance costs related
to future equity issuance
—
(527
)
Proceeds from exercise of stock
options
250
91
Net cash provided by financing
activities
$
250
$
28,631
Net increase in cash and cash
equivalents
4,620
12,889
Cash and cash equivalents at beginning of
period
4,405
37,717
Cash and cash equivalents at end of
period
$
9,025
$
50,606
Tigo Energy, Inc.
Non-GAAP Financial
Measures
(in thousands)
(unaudited)
Reconciliation of Net (Loss)
Income (GAAP) to Adjusted EBITDA (Non-GAAP)
Three Months Ended March
31,
2024
2023
Net (loss) income
$
(11,506
)
$
6,910
Adjustments:
Total other expenses, net
2,418
910
Depreciation and amortization
310
242
Stock-based compensation
2,505
366
M&A transaction expenses
—
133
Adjusted EBITDA
$
(6,273
)
$
8,561
We encourage investors and others to
review our financial information in its entirety and not to rely on
any single financial measure.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240514832466/en/
Investor Relations Contacts Matt Glover or Chris
Adusei-Poku Gateway Group, Inc. (949) 574-3860
TYGO@gateway-grp.com
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