Tigo Energy Reports First Quarter 2024 Financial Results
Tigo Energy reported its first quarter 2024 financial results, showing a revenue of $9.8 million, a GAAP gross margin of 28.2%, and a net loss of $11.5 million. The company experienced an 80.4% decrease in revenue compared to the same period last year but saw a sequential increase of 6.0%. Operating expenses rose by 12.4%, leading to an adjusted EBITDA loss of $6.3 million. Tigo shipped 249,000 MLPE units and introduced new products, including the TS4-X Family and the Tigo GO EV Charger for the Italian market. Looking ahead, Tigo expects second quarter revenues between $12.0 million and $16.0 million, with an adjusted EBITDA loss ranging from $5.5 million to $8.0 million.
- Sequential revenue increase of 6.0%.
- Introduction of new products: TS4-X Family and Tigo GO EV Charger.
- 249,000 MLPE units shipped, equivalent to approximately 100MW DC.
- Improvement in inventory management, reducing industry-wide inventory overhang.
- Cost-reduction efforts implemented to improve adjusted EBITDA break-even point.
- Year-over-year revenue decline of 80.4%.
- GAAP operating loss of $9.1 million.
- GAAP net loss of $11.5 million.
- Adjusted EBITDA loss of $6.3 million.
- Gross profit decreased by 84.9% compared to the prior year.
- Operating expenses increased by 12.4%.
- Net loss of $11.5 million compared to a net income of $6.9 million in the prior year period.
- Cash, cash equivalents, and marketable securities decreased to $21.9 million.
Insights
Tigo Energy's Q1 2024 financial results present a mixed bag for investors. The
The
On the positive side, the decrease in accounts payable by
Long-term investors should weigh the cost reduction measures announced and the company's ability to navigate industry recovery. Short-term risks remain high due to the substantial drop in revenues and profits.
Tigo Energy's strategy focuses on innovative product introductions, such as the TS4-X Family and the Tigo GO EV Charger, aimed at meeting evolving market needs. The launch of these products aligns with industry trends towards higher efficiency and safety in solar and energy storage solutions.
However, the company’s financial struggles, notably the
While Tigo expects inventory restocking and market stabilization to bolster revenues in the second half of 2024, uncertainties in market recovery, especially in the U.S. and EMEA regions, remain. The projected break-even revenue levels of
Investors should monitor how these new products perform in the market and whether Tigo can effectively manage costs and improve margins in the upcoming quarters.
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
“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
“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
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 80.4% decrease from$50.1 million $0.5 million 6.0% . -
Gross profit totaled
$2.8 million 28.2% of total revenue, an84.9% decrease from$18.4 million 36.7% of total revenue, in the prior year comparable period. -
Total operating expenses totaled
$11.9 million 12.4% increase from$10.6 million -
Net loss totaled
$11.5 million $6.9 million -
Adjusted EBITDA loss totaled
$6.3 million $8.6 million -
Cash, cash equivalents, and marketable securities totaled
$21.9 million $9.7 million $6.0 million $15.7 million
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 $16.0 million -
Adjusted EBITDA loss is expected to be within the range of
$5.5 million $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. |
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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
Source: Tigo
FAQ
What was Tigo Energy's revenue for Q1 2024?
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How many MLPE units did Tigo Energy ship in Q1 2024?
What are some new products launched by Tigo Energy in Q1 2024?
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What were Tigo Energy's operating expenses in Q1 2024?
