Energy Vault Holdings, Inc. — Q1 2024 Form 10-Q
Reporting period: Three months ended March 31, 2024; unaudited. Energy Vault develops utility-scale gravity, battery and green-hydrogen energy storage solutions, alongside energy-management software.
Financial results and liquidity
| Metric | Q1 2024 | Q1 2023 |
|---|---|---|
| Revenue | $7.8 million | $11.4 million |
| Gross profit / margin | $2.1 million / 26.7% | $2.4 million / 21.2% |
| Operating loss | $24.6 million | $32.9 million |
| Net loss | $21.1 million | $31.2 million |
| Adjusted EBITDA (non-GAAP) | $(14.4) million | $(19.0) million |
| Operating cash flow | $0.9 million | $(70.8) million |
| Investing cash flow | $(8.8) million | $(17.6) million |
Revenue declined 32%, primarily reflecting lower battery-storage project revenue. Gross margin improved, while losses narrowed as operating expenses fell. Sales and marketing, research and development, and general and administrative expenses were $4.2 million, $7.0 million, and $15.3 million, respectively; reductions were mainly attributed to lower headcount and cost controls. Stock-based compensation remained significant at $9.7 million.
Cash and cash equivalents were $135.8 million at quarter-end, versus $109.9 million at December 31, 2023; restricted cash was $1.0 million, down from $35.6 million. Management said available cash, cash equivalents, and restricted cash as of the filing date should fund operations for at least 12 months. Q1 operating cash generation reflected working-capital movements, including decreases in contract assets and receivables, partly offset by lower operating liabilities. Capital spending was $8.6 million, primarily for projects under construction in Snyder, Texas, and Calistoga, California.
Total liabilities were $73.6 million and stockholders’ equity was $212.3 million at March 31, 2024. The company reported no material conventional debt balance; insurance-premium financing was fully repaid during the quarter. Lease liabilities and other obligations remain.
Changes, outlook, and key risks
- Backlog and remaining performance obligations were $137.5 million. The company expects to recognize approximately 3% over the next 12 months and the remainder later. Backlog is not a guarantee of revenue and may be affected by delays or cancellations.
- There were no bookings in either Q1 2024 or Q1 2023. The filing provides no specific revenue, earnings, or cash-flow guidance.
- Other income included a $1.5 million gain from derecognizing a nonrefundable deposit liability related to a customer owned by a primary shareholder. The gain was non-cash and unusual.
- Customer concentration was high: two customers represented 80% and 14% of Q1 revenue. One customer accounted for 87% of accounts receivable and all customer financing receivable at quarter-end.
- The $25 million refundable contribution to a customer for its first gravity-storage system remains in contract assets; repayment is subject to substantial completion and potential liquidated damages tied to performance.
- Outstanding at quarter-end: $22.7 million of letters of credit, $28.6 million of performance and payment bonds, and $28.8 million of other bonds. The company reported no known material claims on letters of credit. Legal matters were described as ordinary-course proceedings, with no material adverse outcome expected by management.
- Risks include project timing and customer cancellations, supply-chain and inflation pressures, competition, customer credit and collection risk, and commodity and foreign-exchange exposure. Management reported no material changes to previously disclosed risk factors and said disclosure controls were effective.
Important facts for investors to verify
- Whether the concentrated customer revenue and receivable exposures remain collectible and convert into cash.
- Progress, completion timing, costs, and potential liquidated damages for the Snyder, Calistoga, and first GESS projects.
- Whether the $137.5 million backlog converts to revenue on the disclosed schedule, particularly given zero bookings in the quarter.
- Cash runway under continued operating losses and investment needs; assess operating cash flow separately from working-capital changes.
- Potential dilution: 147.9 million common shares were outstanding at March 31, 2024; 24.0 million RSUs were nonvested, in addition to other excluded share equivalents.
- The effect of recurring stock compensation and the nonrecurring related-party liability gain when evaluating underlying performance.