Electriq Power Announces Preliminary Q4 2023 Revenue Results

Rhea-AI Summary

Electriq Power Holdings, a provider of intelligent energy storage solutions, reports 105% year-over-year revenue growth in Q4 and projects a Total Contract Value over $100M with recent contract signings. CEO Frank Magnotti highlights strong demand for residential solar and storage, with expected revenue of $20M-$30M in 2024.

Insights

Financial Analyst

The reported 105% year-over-year growth in fourth-quarter revenue by Electriq Power Holdings, Inc. is a robust indicator of the company's accelerating sales momentum. The growth trajectory is particularly impressive considering the sequential increase, which includes a notable 233% rise in Sustainable Community Networks (SCN). This expansion is underpinned by the strategic signing of Power Purchase Agreements (PPAs) and partnerships that bolster the company's revenue visibility. The $30M in Total Contract Value from the Los Angeles County contract is a significant addition to Electriq's projected revenue streams.

Investors should consider the implications of the company's $21 million in finished inventory, which suggests readiness to meet demand, potentially translating to revenue realization without significant delays. The substantial $300 million in financing available for California SCN programs further strengthens the company's position to capitalize on market opportunities. However, it is crucial to monitor the actual conversion rate of the projected TCV into recognized revenue, as assumptions of participation levels may not fully materialize, affecting future financial performance.

Market Research Analyst

The demand for residential solar and energy storage solutions, as indicated by Electriq's preliminary results, reflects broader market trends towards renewable energy and grid independence. The company's focus on Sustainable Community Networks taps into the growing consumer and policy-driven shift towards sustainable living. The strategic expansion into key markets such as Puerto Rico and Washington D.C. could provide a competitive edge and diversify the company's geographic revenue sources.

Electriq's ability to secure over 160 signed PPAs showcases the efficacy of its business model and suggests a strong market fit for its PowerPod 2 systems. While the estimated $100 million TCV over the next three years is promising, it is essential to evaluate the execution risks and the potential impact of regulatory changes on the solar and storage industry. Long-term success will likely depend on the company's adaptability to market trends and regulatory environments.

Energy Sector Analyst

The energy sector is witnessing a significant transformation with the integration of renewable energy solutions like those offered by Electriq Power Holdings. The company's preliminary results demonstrate effective scaling within the niche of energy storage and management for small-scale applications. The $10 million commitment from Sustainable Solutions developers for Electriq's PowerPod 2 systems reflects confidence in the product and its market relevance.

Electriq's strategic positioning in the energy sector, leveraging PPAs, is indicative of an emerging business model that aligns with the decentralization of energy generation and consumption. The inventory and financing readiness imply a robust supply chain that can support the anticipated growth without major bottlenecks. However, the actual impact on the business will depend on the rate of deployment and customer uptake, which are influenced by factors such as technology adoption rates, competitive dynamics and potential subsidy changes.

 Fourth quarter revenue represents 105% year-over-year growth and recent contract signing pushes projected Total Contract Value over $100M

WEST PALM BEACH, Fla.--(BUSINESS WIRE)-- Electriq Power Holdings, Inc. ("Electriq") (NYSE:ELIQ), a trusted provider of intelligent energy storage and management solutions for homes and small businesses, today announces preliminary results for its fourth quarter and reiterates a revenue range of $20M-$30M in 2024.

CEO Frank Magnotti, commented, “The demand for residential solar and storage and for more independence from the electrical grid remains strong. The approximate $1.3 million we expect to record in sales for Q4 represents YoY growth of over 100% and a roughly 60% sequential increase, including a 233% sequential increase in Sustainable Community Networks (SCN), our third consecutive quarter of incremental growth. Our current Power Purchase Agreements (PPA) in our SCN, both signed and in-progress, paired with our expanded relationships in Puerto Rico and Washington D.C., indicate that we expect to achieve robust growth in 2024.”

Orders from new and existing partners continue to provide Electriq with confidence and visibility, including the company’s recently announced contract, allowing Electriq to launch SCNs in 10 Los Angeles County communities, covering a population of 400,000. This new contract could generate an incremental $30M in Total Contract Value (TCV), defined as the anticipated revenue we expect to recognize over the next three years, starting in the current period, based on assumed levels of participation in the program.

The Company’s expectations for growth in 2024 are based on a number of factors, including more than 160 signed PPAs via our Sustainable Community Networks which could lead to approximately $5 million in revenue over the next two quarters, a $10 million commitment from Sustainable Solutions developers to purchase Electriq’s PowerPod 2 systems estimated to be recognized within 2024 and $100 million TCV estimated to be recognized over the next three years. In addition, Electriq holds approximately $21 million in finished inventory ready to deploy, and has $300 million in solar + storage financing available for its California SCN programs from a well-established clean-energy company.

About Electriq Power

Electriq (NYSE:ELIQ), founded in 2014 in the San Francisco Bay Area, provides turnkey intelligent energy storage and management solutions for homes and small businesses. Electriq’s solutions deliver always-available, low-cost clean energy, even during intermittent outages and inclement weather. Those solutions enable cities, municipalities, and utilities to provide their constituents with a path to sustainable and resilient sources of energy, regardless of socio-economic status. For more information, visit www.electriqpower.com.

Cautionary Note on Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Certain of these forward-looking statements can be identified by the use of words such as “anticipate,” “believe,” “could,” “continue,” “estimate,” “expect,” “forecast,” “intend,” “may,” “might,” “outlook,” “plan,” “possible,” “potential,” “predict,” “project,” “scheduled,” “seek,” “should,” “will,” “would” or similar expressions, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements in this press release include statements regarding: (i) expectations regarding the continued demand for clean energy from our customers and energy solutions providers, (ii) expectations regarding our SCN, (iii) expectations regarding our results of operations, (iv) trends relating to our PPAs, including the anticipation of growth throughout 2024, (v) our recently announced contract, and (vi) expectations regarding our 2024 cost structure and cash needs. These statements are based on the beliefs and assumptions of Electriq’s management. Although Electriq believes that its plans, intentions and expectations reflected in or suggested by these forward-looking statements are reasonable, Electriq cannot assure you that it will achieve or realize these plans, intentions, or expectations. Forward-looking statements are inherently subject to risks, uncertainties, and assumptions. Generally, statements that are not historical facts, including statements concerning possible or assumed future actions, business strategies, events or results of operations, and any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward looking statements. These forward-looking statements are not guarantees of performance. You should understand that these statements are affected by factors set forth in Electriq’s filings with the Securities and Exchange Commission (“SEC”), including but not limited to those described under the headings “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in Electriq’s quarterly report on Form 10-Q for the quarter ended September 30, 2023 filed with the SEC on November 14, 2023, and in its other filings made with the SEC from time to time, which are available via the SEC’s website at www.sec.gov. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Electriq assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. Electriq does not give any assurance that it will achieve its expectations.

In addition, this press release includes Electriq’s preliminary financial results for the fiscal year ended December 31, 2023. Electriq is currently in the process of finalizing its financial results for the quarter and fiscal year ended December 31, 2023, and the preliminary financial results presented in this press release are based only upon preliminary information available to Electriq as of January 11, 2024. Electriq’s preliminary financial results should not be viewed as a substitute for audited financial statements prepared in accordance with U.S. GAAP, and undue reliance should not be placed on Electriq’s preliminary financial results. In addition, items or events may be identified or occur after the date of this press release due to the completion of operational and financial closing procedures, final audit adjustments and other developments may arise that would require Electriq to make material adjustments to the preliminary financial results included in this press release. Therefore, the preliminary financial results included in this press release may differ, perhaps materially, from the financial results that will be reflected in Electriq’s audited consolidated financial statements for the fiscal year ended December 31, 2023.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240111642762/en/

Media enquiries for Electriq: media@electriqpower.com



Investor enquiries for Electriq: ir@electriqpower.com

Source: Electriq Power Inc.

FAQ

What is the revenue growth reported by Electriq Power Holdings in the fourth quarter?

Electriq Power Holdings reports 105% year-over-year revenue growth in the fourth quarter.

What is the projected Total Contract Value for Electriq Power Holdings?

Electriq Power Holdings projects a Total Contract Value over $100M with recent contract signings.

What is the expected revenue range for Electriq Power Holdings in 2024?

Electriq Power Holdings expects a revenue range of $20M-$30M in 2024.

What are the factors contributing to Electriq Power Holdings' growth in 2024?

Factors contributing to Electriq Power Holdings' growth in 2024 include signed PPAs, commitments from Sustainable Solutions developers, and available financing for its California SCN programs.

What recent contract signing has Electriq Power Holdings announced?

Electriq Power Holdings announced a contract allowing it to launch SCNs in 10 Los Angeles County communities, potentially generating an incremental $30M in Total Contract Value.