ADS-TEC Energy Provides Preliminary Financial Results for Fourth Quarter and Full-Year 2023

Rhea-AI Summary

ADS-TEC Energy plc, with the ticker symbol ADSE, has announced preliminary unaudited financial results for the 3 and 12 months ended December 31st, 2023. The company reported a revenue of approximately EUR 107.4m, representing 306% growth over FY 2022, and exceeding stated guidance of EUR 100m. However, the Adjusted EBITDA for FY 2023 was approximately EUR -16.6m, compared to EUR -29.2m in FY 2022. The company ended FY2023 with approximately EUR 29.1m in cash. The fourth quarter 2023 revenue was approximately EUR 50.3m, with fourth quarter Adjusted EBITDA of approximately EUR 4.9m, representing the Company’s first profitable quarter. ADS-TEC Energy reiterates its FY24 guidance of approximately EUR 200m in revenues and positive EBITDA. The company experienced robust growth from both new and existing blue-chip customers, particularly in Europe, and plans to continue to grow its customer base in Europe and the U.S. in 2024.

Positive

• Revenue growth of 306% over FY 2022
• First profitable quarter in Q4 2023
• Robust growth from new and existing blue-chip customers
• Reiteration of FY24 guidance of approximately EUR 200m in revenues and positive EBITDA

Negative

• Adjusted EBITDA for FY 2023 was approximately EUR -16.6m

Insights

Financial Analyst

The preliminary unaudited financial results of ADS-TEC Energy for FY 2023 indicate a substantial revenue increase of 306%, which significantly exceeds the company's earlier guidance. This performance is particularly noteworthy as it includes the company's first profitable quarter. The positive EBITDA of EUR 4.9m in Q4 2023 suggests a turnaround in financial health, potentially signaling investor confidence and a positive outlook for the company's stock. The reiteration of the FY 2024 guidance, projecting revenues of EUR 200m and a positive EBITDA, further strengthens this perspective.

However, caution is warranted as these figures are preliminary and unaudited. Final adjustments and the lack of external auditor review could lead to revisions that might impact investor perceptions. Additionally, the reported negative Adjusted EBITDA of EUR -16.6m for FY 2023, despite being an improvement over the previous year, indicates ongoing challenges in achieving consistent profitability. The company's operational cash position, ending the year with EUR 29.1m, provides some cushion for short-term obligations but warrants scrutiny for long-term sustainability.

Market Research Analyst

ADS-TEC Energy's robust performance can be attributed to the growing demand for charging infrastructure in Europe, a trend that is reflective of the broader shift towards electric mobility. The company's strategic positioning and adaptability to enable 'Super Charge' on low-powered grids cater to a vital market need. This adaptability and the variety of use-cases present opportunities for diversification and risk mitigation against market volatility. The company's expansion plans into the U.S. market, alongside its growth in Europe, indicate a strategic move to capitalize on global electrification trends.

From a market perspective, the company's strong order intake in early 2024 and its focus on blue-chip customers are positive indicators for sustained growth and resilience. The emphasis on intelligent platform technology and decentralized energy supply aligns well with industry trends towards smart energy solutions, potentially giving ADS-TEC Energy a competitive edge in the market.

Energy Sector Analyst

The financial outcomes for ADS-TEC Energy underscore the increasing importance of energy storage and fast-charging solutions within the renewable energy sector. The company's success in 2023 and its optimistic forecast for 2024 reflect a broader industry shift towards energy solutions that support the decarbonization of the transport sector. The ability to deliver high-power charging on grids with limited capacity is a technological advantage that addresses a critical bottleneck in EV infrastructure deployment.

As governments and corporations continue to invest in renewable energy and electric vehicle (EV) infrastructure, companies like ADS-TEC Energy that offer innovative solutions are well-positioned to benefit. However, the long-term success of the company will depend on its ability to maintain technological leadership, manage operational costs and navigate the complex regulatory environment that governs the energy sector.

NÜRTINGEN, Germany--(BUSINESS WIRE)-- ADS-TEC Energy plc (“ADS-TEC Energy”, “Company”, “we”, “our” or “us”) (NASDAQ: ADSE), a global leader in battery-buffered, ultra-fast charging technology, today announced preliminary unaudited financial results for the 3 and 12 months ended December 31^st, 2023. This announcement comes ahead of ADS-TEC Energy’s Full-Year 2023 full financial results, to be announced in late April 2024.

Select Preliminary Unaudited Fourth Quarter 2023 Results

• FY 2023 revenue of approximately EUR 107.4m, representing 306% growth over FY 2022 and exceeding stated guidance of EUR 100m
• FY 2023 Adjusted EBITDA of approximately EUR -16.6m, compared to EUR -29.2m in FY 2022
• Ended FY2023 with approximately EUR 29.1m in cash
• Fourth quarter 2023 revenue of approximately EUR 50.3m
• Fourth quarter Adjusted EBITDA of approximately EUR 4.9m, representing the Company’s first profitable quarter
• Reiterate FY24 guidance of approximately EUR 200m in revenues and positive EBITDA, underpinned by strong order intake in early 2024

ADS-TEC Energy performed very well in 2023, surpassing revenue guidance and driving strong financial growth compared to FY 2022. The Company experienced its first profitable quarter in Q4 2023, driven by an easing of previous supply chain issues and solid operational performance. The Company believes that this is a key inflection point towards sustained profitability in FY 2024.

On the customer front, ADS-TEC Energy experienced robust growth from both new and existing blue-chip customers. Demand in Europe was very strong in 2023, driven by continued investments in charging infrastructure, which was reflected in the solid performance of ADS-TEC Energy’s European client base.

Thomas Speidel, CEO of ADS-TEC Energy, states “Our 2023 performance and strong guidance for 2024 proves that our strategy of intelligent platform technology is finding its place in the decentralized energy supply. The ability to Super Charge on low-powered grids is just one example of the many functions our customers are able to monetize – the adaptability of our platforms and services and the variety of use-cases benefits a broad and growing spectrum of customers and partners.”

In 2024, ADS-TEC Energy plans to continue to grow its blue-chip customer base both in Europe and the U.S. and is pleased to reiterate its FY 2024 guidance of EUR 200m in revenues and positive EBITDA.

Set forth above are certain estimated preliminary financial results for the fourth quarter and fiscal year ended December 31, 2023. These estimates are based on the information available to us at this time. Our actual results may vary from the estimated preliminary results presented here due to final adjustments and other developments that may arise between now and the time the financial results for the fiscal year ended December 31, 2023 are finalized. These financial figures have not been audited or reviewed by the Company’s external auditors. These estimates should not be viewed as a substitute for our full interim or annual financial statements. Accordingly, you should not place undue reliance on this preliminary data.

About ADS-TEC Energy

ADS-TEC Energy plc, a public limited company incorporated in Ireland and publicly listed on NASDAQ (“ADS-TEC Energy”), serves as a holding company for ads-tec Energy GmbH, our operating company incorporated in Germany (“ADSE GM”) and ads-tec Energy Inc., a US subsidiary of ads-tec Energy GmbH (“ADSE US” and together with ADS-TEC Energy and ADSE GM, “ADSE”). Based on more than ten years of experience with lithium-ion technologies, ADS-TEC Energy develops and manufactures battery storage solutions and fast charging systems including their energy management systems. Its battery-based, fast charging technology enables electric vehicles to ultrafast charge even on low powered grids and features a very compact design. It was most recently nominated by the President of the Federal Republic of Germany for the German Future Prize and elevated to the "Circle of Excellence" in 2022. The high quality and functionality of the battery systems are due to a particularly high depth of development and in-house production. With its advanced system platforms, ADS-TEC Energy is a valuable partner for automotive, OEMs, utility companies and charge-operators.

More information: www.ads-tec-energy.com

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include statements regarding our financial outlook for 2024, our expectations with respect to future performance and the anticipated timing of certain commercial activities. There are a significant number of factors that could cause actual results to differ materially from the statements made in this press release, including: the geopolitical events including the Russian invasion of Ukraine; macroeconomic trends including changes in inflation or interest rates, or other events beyond our control on the overall economy; our business and those of our customers and suppliers, including due to supply chain disruptions and expense increases; our limited operating history as a public company; our dependence on widespread acceptance and adoption of EVs and increased installation of charging stations; our current dependence on sales to a limited number of customers for most of our revenues; overall demand for EV charging and the potential for reduced demand for EVs if governmental rebates, tax credits and other financial incentives are reduced, modified or eliminated or governmental mandates to increase the use of EVs or decrease the use of vehicles powered by fossil fuels, either directly or indirectly through mandated limits on carbon emissions, are reduced, modified or eliminated; supply chain interruptions and expense increases; unexpected delays in new product introductions; our ability to expand our operations and market share in Europe and the U.S.; the effects of competition; changes to battery energy storage standards; and the risk that our technology could have undetected defects or errors. Additional risks and uncertainties that could affect our financial results are included under “Item 3. Key Information – 3.D. Risk Factors” in our annual report on Form 20-F filed with the Securities and Exchange Commission (the “SEC”) on May 11, 2023, which is available on our website at https://www.ads-tec-energy.com/en/company/invest and on the SEC’s website at www.sec.gov. Additional information will also be set forth in other filings that we make with the SEC from time to time. All forward-looking statements in this press release are based on information available to us as of the date hereof, and we do not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made, except as required by applicable law.

Use of Non-IFRS Financial Measures

ADS-TEC Energy has provided in this press release financial information that has not been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS”). ADS-TEC Energy uses these non-IFRS financial measures internally in analyzing its financial results and believes that the use of these non-IFRS financial measures is useful to investors to evaluate ongoing operating results and trends, and in comparing ADS-TEC Energy’s financial results with other companies in its industry as well other technology companies, many of which present similar non-IFRS financial measures.

The presentation of these non-IFRS financial measures is not meant to be considered in isolation or as a substitute for comparable IFRS financial measures and should be read only in conjunction with ADS-TEC Energy’s consolidated financial statements prepared in accordance with IFRS.

Definition and Reconciliation of Non-IFRS Measures

The press release includes certain non-IFRS financial measures such as “EBITDA” and “Adjusted EBITDA”. ADS-TEC Energy believes these measures are useful to investors for evaluating period-to-period operational performance on a consistent basis by excluding items that we do not believe are indicative of our core operating performance.

ADS-TEC Energy defines EBITDA as result before tax before (i) finance income / (expenses) and (ii) depreciation and amortization. ADS-TEC Energy defines Adjusted EBITDA as EBITDA plus listing fee. These measures should not be considered as measures of financial performance under IFRS, and the items excluded from or included in these metrics are significant components in understanding and assessing ADS-TEC Energy financial performance.

We have not provided the forward-looking IFRS equivalents for the forward-looking non-IFRS financial measures EBITDA and Adjusted EBITDA or an IFRS reconciliation as a result of the uncertainty regarding, and the potential variability of, reconciling items including but not limited to stock-based compensation expense, foreign currency loss or gain, financial instruments related expenses and inventory valuation losses. Accordingly, a reconciliation of these non-IFRS guidance metrics to their corresponding IFRS equivalents is not available without unreasonable effort. However, it is important to note that material changes to reconciling items could have a significant effect on future IFRS results and, as such, we also believe that any reconciliations provided would imply a degree of precision that could be confusing or misleading to investors.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240208019335/en/

Media Contact:

For ADS-TEC Energy – Germany

Dennis Müller

SVP Product Marketing & Communication

press@ads-tec-energy.com



For ADS-TEC Energy – US

Stephannie Depa

Breakaway Communications

+1 530-864-0136

sdepa@breakawaycom.com

Source: ADS-TEC Energy plc

FAQ

What is the ticker symbol for ADS-TEC Energy plc?

The ticker symbol for ADS-TEC Energy plc is ADSE.

What was the revenue for FY 2023?

The revenue for FY 2023 was approximately EUR 107.4m, representing 306% growth over FY 2022.

What was the Adjusted EBITDA for FY 2023?

The Adjusted EBITDA for FY 2023 was approximately EUR -16.6m, compared to EUR -29.2m in FY 2022.

Did ADS-TEC Energy plc experience growth in Q4 2023?

Yes, ADS-TEC Energy experienced its first profitable quarter in Q4 2023.

What is the FY24 revenue guidance for ADS-TEC Energy plc?

ADS-TEC Energy plc has reiterated its FY24 guidance of approximately EUR 200m in revenues and positive EBITDA.