Nextracker Reports Q2 FY24 Financial Results
- Nextracker reports record revenue and profits in Q2, with revenue up 23% YoY and adjusted EBITDA up 164% YoY. Non-GAAP net income is $96 million. Nextracker launches Next Gen Tech Suite with 3 new innovations. Annual profit guidance and revenue guidance raised.
- None.
Record Revenue and Profits in Q2 and Raises FY24 Guidance
Q2 FY2024 Financial Highlights:
-
Revenue
, up$573 million 23% YoY -
GAAP net income
, EPS$81 million $0.55 -
Adjusted EBITDA
, up$110 million 164% YoY -
Non-GAAP net income
, non-GAAP EPS$96 million $0.65
Q2 FY2024 Business Highlights:
Strong Execution Supported by Global Supply Chain Repositioning and Capacity Expansion, Continued Customer Wins, and Product Innovation with Next Gen Tech Suite
- Record backlog; robust customer wins across multiple continents
-
Continued
U.S. and global supply chain capacity expansion with strategic partners -
Launched Next Gen Tech Suite with 3 new innovations:
- NX Horizon Hail Pro: Hail-stowing solution with hardware, software, service
- NX Horizon XTR-1.5: Doubling the undulation capability of our terrain-following tracker
- TrueCapture Zonal Diffuse: Enhanced energy yield in varied irradiance conditions
“Nextracker’s Q2 results reflect strong worldwide execution, and we are pleased with our record revenue, profits, and backlog,” said Dan Shugar, Founder and CEO of Nextracker. “We closed our third consecutive quarter of growth year-over-year, as a public company, and it was our sixth consecutive quarter of margin expansion on a sequential basis."
“With a record first half and our anticipation of a strong second half of the fiscal year, we have raised our annual profit guidance and the mid-point of our annual revenue guidance. We are well-positioned with our global scale and growth profile, and we are excited to pursue the market opportunities ahead.”
FY2024 Annual Guidance
Raised Mid-Point of FY24 Revenue Range and Raised FY24 Adjusted EBITDA Range
-
Revenue:
to$2.3 billion (vs. previous$2.4 billion to$2.2 billion )$2.4 billion -
GAAP Net Income:
to$237 million (vs. previous$266 million to$176 million )$205 million -
GAAP EPS:
to$1.60 (vs. previous$1.80 to$1.20 )$1.40 -
Adjusted EBITDA:
to$390 million (vs. previous$440 million to$290 million )$340 million -
Non-GAAP EPS:
to$1.95 (vs. previous$2.15 to$1.45 ) which excludes$1.65 for stock-based compensation expense and net intangible amortization$0.35
Details on Planned Separation from Flex
In a separate press release issued today, Nextracker announced the planned separation from Flex. To access the press release, please visit the Nextracker IR website at investors.nextracker.com.
Q2 FY2024 Earnings Call
October 25, 2023
1:30p.m. PT / 4:30p.m. ET
Live webcast available on investors.nextracker.com
The webcast replay, along with supporting materials, will be available on the Nextracker IR website following the conclusion of the event.
About Nextracker
Nextracker is a leading provider of intelligent, integrated solar tracker and software solutions used in utility-scale and ground-mounted distributed generation solar projects around the world. Our products enable solar panels power plants to follow the sun’s movement across the sky and optimize plant performance. With power plants operating in more than 30 countries worldwide, Nextracker offers solar tracker technologies that increase energy production while reducing costs for significant plant ROI. For more information, please visit www.nextracker.com.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to the trends for future solar adoption and Nextracker’s outlook for fiscal 2024 and other periods. These forward-looking statements are based on various assumptions and on the current expectations of Nextracker’s management. These statements involve risks and uncertainties that could cause the actual results to differ materially from those anticipated by these forward-looking statements, including risks and uncertainties that are described under “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Nextracker’s most recent Quarterly Report on form 10-Q, Annual Report on Form 10-K and other documents that Nextracker has filed or will file with the Securities and Exchange Commission. There may be additional risks that Nextracker is not aware of or that Nextracker currently believes are immaterial that could also cause actual results to differ from the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements. Nextracker assumes no obligation to update these forward-looking statements.
Use of Non-GAAP Financial Information
An explanation and reconciliation of non-GAAP financial measures to GAAP financial measures is presented in Schedules IV and V attached to this press release, and can be found, along with other financial information including the Earnings Presentation, on the investor relations section of our website at investors.nextracker.com.
Schedule I |
|||||||||||
Nextracker Inc. Unaudited condensed consolidated statements of operations and comprehensive income (In thousands, except share and per share data) |
|||||||||||
|
Three-months ended |
|
Six-months ended |
||||||||
|
September 29,
|
|
September 30,
|
|
September 29,
|
|
September 30,
|
||||
Revenue |
$ |
573,357 |
|
$ |
467,142 |
|
$ |
1,052,900 |
|
$ |
870,372 |
Cost of sales |
|
424,247 |
|
402,603 |
|
|
790,046 |
|
755,970 |
||
Gross profit |
|
149,110 |
|
|
64,539 |
|
|
262,854 |
|
|
114,402 |
Selling, general and administrative expenses |
|
47,872 |
|
|
20,745 |
|
|
82,107 |
|
|
36,862 |
Research and development |
|
7,146 |
|
|
4,322 |
|
|
12,775 |
|
|
8,299 |
Operating income |
|
94,092 |
|
|
39,472 |
|
|
167,972 |
|
|
69,241 |
Interest and other (income) expense, net |
|
8,684 |
|
|
1,309 |
|
|
9,818 |
|
|
1,248 |
Income before income taxes |
|
85,408 |
|
|
38,163 |
|
|
158,154 |
|
|
67,993 |
Provision for income taxes |
|
3,999 |
|
|
11,076 |
|
|
13,100 |
|
|
16,776 |
Net income and comprehensive income |
|
81,409 |
|
27,087 |
|
|
145,054 |
|
|
51,217 |
|
Less: Net income attributable to Nextracker LLC prior to the reorganization transactions |
|
— |
|
|
27,087 |
|
|
— |
|
|
51,217 |
Less: Net income attributable to redeemable non-controlling interests |
|
42,156 |
|
|
— |
|
|
85,372 |
|
|
— |
Net income attributable to Nextracker Inc. |
$ |
39,253 |
|
$ |
— |
|
$ |
59,682 |
|
$ |
— |
|
|
|
|
|
|
|
|
||||
Earnings per share attributable to the stockholders of Nextracker Inc. (1) |
|
|
|
|
|
|
|
||||
Basic |
$ |
0.64 |
|
|
N/A |
|
$ |
1.10 |
|
|
N/A |
Diluted |
$ |
0.55 |
|
|
N/A |
|
$ |
0.99 |
|
|
N/A |
Weighted-average shares used in computing per share amounts: |
|
|
|
|
|
|
|
||||
Basic |
|
61,721,709 |
|
|
N/A |
|
|
54,070,140 |
|
|
N/A |
Diluted |
|
147,141,142 |
|
|
N/A |
|
|
147,008,353 |
|
|
N/A |
(1) | Basic and diluted earnings per share is applicable only for the period following the initial public offering (“IPO”) and the related Transactions. |
Schedule II |
|||||||
Nextracker Inc. Unaudited condensed consolidated balance sheets (In thousands) |
|||||||
|
|
||||||
|
As of
|
|
As of
|
||||
ASSETS |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
372,918 |
|
|
$ |
130,008 |
|
Accounts receivable, net of allowance of |
|
339,668 |
|
|
|
271,159 |
|
Contract assets |
|
311,798 |
|
|
|
297,960 |
|
Inventories |
|
196,235 |
|
|
|
138,057 |
|
Other current assets |
|
118,161 |
|
|
|
35,081 |
|
Total current assets |
|
1,338,780 |
|
|
|
872,265 |
|
Property and equipment, net |
|
7,464 |
|
|
|
7,255 |
|
Goodwill |
|
265,153 |
|
|
|
265,153 |
|
Other intangible assets, net |
|
1,196 |
|
|
|
1,321 |
|
Deferred tax assets and other assets |
|
420,965 |
|
|
|
273,686 |
|
Total assets |
$ |
2,033,558 |
|
|
$ |
1,419,680 |
|
LIABILITIES, REDEEMABLE INTERESTS AND STOCKHOLDERS' DEFICIT |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
|
403,478 |
|
|
|
211,355 |
|
Accrued expenses |
|
67,306 |
|
|
|
59,770 |
|
Deferred revenue |
|
235,907 |
|
|
|
176,473 |
|
Due to related parties |
|
— |
|
|
|
12,239 |
|
Other current liabilities |
|
65,517 |
|
|
|
47,589 |
|
Total current liabilities |
|
772,208 |
|
|
|
507,426 |
|
Long-term debt |
|
145,557 |
|
|
|
147,147 |
|
TRA liability and other liabilities |
|
440,682 |
|
|
|
280,246 |
|
Total liabilities |
|
1,358,447 |
|
|
|
934,819 |
|
Redeemable non-controlling interest |
|
3,316,130 |
|
|
|
3,560,628 |
|
Total stockholders' deficit |
$ |
(2,641,019 |
) |
|
$ |
(3,075,767 |
) |
Total liabilities, redeemable interests, and stockholders' deficit |
$ |
2,033,558 |
|
|
$ |
1,419,680 |
|
Schedule III |
|||||||
Nextracker Inc. Unaudited condensed consolidated statements of cash flows (In thousands) |
|||||||
|
Six-months ended |
||||||
|
September 29,
|
|
September 30,
|
||||
Cash flows from operating activities: |
|
|
|
||||
Net income |
$ |
145,054 |
|
|
$ |
51,217 |
|
Depreciation and amortization |
|
2,020 |
|
|
|
2,645 |
|
Changes in working capital and other, net |
|
105,603 |
|
|
|
(1,401 |
) |
Net cash provided by operating activities |
|
252,677 |
|
|
|
52,461 |
|
Cash flows from investing activities: |
|
|
|
||||
Purchases of property and equipment |
|
(1,406 |
) |
|
|
(1,335 |
) |
Proceeds from the disposition of property and equipment |
|
— |
|
|
|
24 |
|
Net cash used in investing activities |
|
(1,406 |
) |
|
|
(1,311 |
) |
Cash flows from financing activities: |
|
|
|
||||
Net proceeds from issuance of Class A shares |
|
552,009 |
|
|
|
— |
|
Purchase of LLC common units from Yuma, Inc. |
|
(552,009 |
) |
|
|
— |
|
Net transfers (to) from Parent |
|
(8,335 |
) |
|
|
3,989 |
|
Other financing activities |
|
(26 |
) |
|
|
— |
|
Net cash provided by (used in) financing activities |
|
(8,361 |
) |
|
|
3,989 |
|
Effect of exchange rate on cash and cash equivalents |
|
— |
|
|
|
— |
|
Net increase in cash |
|
242,910 |
|
|
|
55,139 |
|
Cash and cash equivalents beginning of period |
|
130,008 |
|
|
|
29,070 |
|
Cash and cash equivalents end of period |
$ |
372,918 |
|
|
$ |
84,209 |
|
|
Six-months ended |
||||||
Adjusted free cash flow |
September 29,
|
|
September 30,
|
||||
Net cash provided by operating activities |
$ |
252,677 |
|
|
$ |
52,461 |
|
Purchases of property and equipment |
|
(1,406 |
) |
|
|
(1,335 |
) |
Proceeds from the disposition of property and equipment |
|
— |
|
|
|
24 |
|
Adjusted free cash flow |
$ |
251,271 |
|
|
$ |
51,150 |
|
Schedule IV |
|||||||||||||||
Nextracker Inc. Reconciliation of GAAP to Non-GAAP Financial measures (In thousands, except percentages, shares and per share data) |
|||||||||||||||
|
Three-months ended |
|
Six-months ended |
||||||||||||
|
September
|
|
September
|
|
September
|
|
September
|
||||||||
GAAP gross profit |
|
149,110 |
|
|
|
64,539 |
|
|
|
262,854 |
|
|
|
114,402 |
|
Stock-based compensation expense |
|
3,245 |
|
|
|
345 |
|
|
|
5,171 |
|
|
|
755 |
|
Intangible amortization |
|
62 |
|
|
|
62 |
|
|
|
125 |
|
|
|
125 |
|
Non-GAAP gross profit |
$ |
152,417 |
|
|
$ |
64,946 |
|
|
$ |
268,150 |
|
|
$ |
115,282 |
|
GAAP operating income |
$ |
94,092 |
|
|
$ |
39,472 |
|
|
$ |
167,972 |
|
|
$ |
69,241 |
|
Stock-based compensation expense |
|
18,216 |
|
|
|
845 |
|
|
|
26,857 |
|
|
|
1,850 |
|
Intangible amortization |
|
62 |
|
|
|
541 |
|
|
|
125 |
|
|
|
1,082 |
|
Legal costs |
|
— |
|
|
|
1,528 |
|
|
|
— |
|
|
|
1,528 |
|
Other |
|
— |
|
|
|
(87 |
) |
|
|
— |
|
|
|
(87 |
) |
Non-GAAP operating income |
$ |
112,370 |
|
|
$ |
42,299 |
|
|
$ |
194,954 |
|
|
$ |
73,614 |
|
GAAP net income |
$ |
81,409 |
|
|
$ |
27,087 |
|
|
$ |
145,054 |
|
|
$ |
51,217 |
|
Stock-based compensation expense |
|
18,216 |
|
|
|
845 |
|
|
|
26,857 |
|
|
|
1,850 |
|
Intangible amortization |
|
62 |
|
|
|
541 |
|
|
|
125 |
|
|
|
1,082 |
|
Adjustment for taxes |
|
(3,656 |
) |
|
|
(869 |
) |
|
|
(4,881 |
) |
|
|
(1,790 |
) |
Legal costs |
|
— |
|
|
|
1,528 |
|
|
|
— |
|
|
|
1,528 |
|
Other |
|
— |
|
|
|
(87 |
) |
|
|
— |
|
|
|
(87 |
) |
Non-GAAP net income |
$ |
96,031 |
|
|
$ |
29,045 |
|
|
$ |
167,155 |
|
|
$ |
53,800 |
|
GAAP Net income |
$ |
81,409 |
|
|
$ |
27,087 |
|
|
$ |
145,054 |
|
|
$ |
51,217 |
|
Interest, net |
|
(86 |
) |
|
|
(101 |
) |
|
|
1,334 |
|
|
|
(165 |
) |
Provision for income taxes |
|
3,999 |
|
|
|
11,076 |
|
|
|
13,100 |
|
|
|
16,776 |
|
Depreciation expense |
|
912 |
|
|
|
835 |
|
|
|
1,895 |
|
|
|
1,563 |
|
Intangible amortization |
|
62 |
|
|
|
541 |
|
|
|
125 |
|
|
|
1,082 |
|
Stock-based compensation expense |
|
18,216 |
|
|
|
845 |
|
|
|
26,857 |
|
|
|
1,850 |
|
Legal costs |
|
— |
|
|
|
1,528 |
|
|
|
— |
|
|
|
1,528 |
|
Other |
|
5,686 |
|
|
|
(87 |
) |
|
|
5,686 |
|
|
|
(87 |
) |
Adjusted EBITDA |
$ |
110,198 |
|
|
$ |
41,724 |
|
|
$ |
194,051 |
|
|
$ |
73,764 |
|
Net income (% of revenue) |
|
14.2 |
% |
|
|
5.8 |
% |
|
|
13.8 |
% |
|
|
5.9 |
% |
Adjusted EBITDA (% of revenue) |
|
19.2 |
% |
|
|
8.9 |
% |
|
|
18.4 |
% |
|
|
8.5 |
% |
Diluted earnings per share |
|
|
|
|
|
|
|
||||||||
GAAP |
$ |
0.55 |
|
|
|
N/A |
|
|
$ |
0.99 |
|
|
|
N/A |
|
Earnings per share attributable to Non-GAAP adjustments |
$ |
0.10 |
|
|
|
N/A |
|
|
$ |
0.15 |
|
|
|
N/A |
|
Non-GAAP |
$ |
0.65 |
|
|
|
N/A |
|
|
$ |
1.14 |
|
|
|
N/A |
|
|
|
|
|
|
|
|
|
||||||||
Diluted shares used in computing per share amounts |
|
147,141,142 |
|
|
|
N/A |
|
|
|
147,008,353 |
|
|
|
N/A |
|
See the accompanying notes on Schedule V attached to this press release
Schedule V
Nextracker Inc.
Notes
(1) To supplement Nextracker’s unaudited selected financial data presented consistent with
In calculating non-GAAP financial measures, we exclude certain items to facilitate a review of the comparability of the Company’s operating performance on a period-to-period basis because such items are not, in our view, related to the Company’s ongoing operational performance. We use non-GAAP measures to evaluate the operating performance of our business, for comparison with forecasts and strategic plans, for calculating return on investment, and for benchmarking performance externally against competitors. In addition, management’s incentive compensation is determined using certain non-GAAP measures. Since we find these measures to be useful, we believe that investors benefit from seeing results “through the eyes” of management in addition to seeing GAAP results. We believe that these non-GAAP measures, when read in conjunction with the Company’s GAAP financials, provide useful information to investors by offering:
- the ability to make more meaningful period-to-period comparisons of the Company’s ongoing operating results;
- the ability to better identify trends in the Company’s underlying business and perform related trend analysis;
- a better understanding of how management plans and measures the Company’s underlying business; and
- an easier way to compare the Company’s operating results against analyst financial models and operating results of competitors that supplement their GAAP results with non-GAAP financial measures.
The following are explanations of each of the adjustments that we incorporate into non-GAAP measures, as well as the reasons for excluding each of these individual items in the reconciliations of these non-GAAP financial measures:
Stock-based compensation expense consists of non-cash charges for the estimated fair value of unvested restricted share unit and stock option awards granted to employees and assumed in business acquisitions. The Company believes that the exclusion of these charges provides for more accurate comparisons of its operating results to peer companies due to the varying available valuation methodologies, subjective assumptions, and the variety of award types. In addition, the Company believes it is useful to investors to understand the specific impact stock-based compensation expense has on its operating results.
During fiscal year 2023, the Company granted equity compensation awards to employees under the First Amended and Restated 2022 Nextracker LLC Equity Incentive Plan (the “2022 Nextracker Plan”), Vesting of awards under the Plan was contingent on a Nextracker Initial Public Offering (IPO) which occurred on February 9, 2023. In addition to the 2022 Nextracker Plan, Flex maintains several stock-based incentive plans for the benefit of certain of its officers, directors, and employees, including the employees of Nextracker. Stock-based compensation expense for the six-month periods also include expense recognized under the Flex plan.
Intangible amortization consists primarily of non-cash charges that can be impacted by, among other things, the timing and magnitude of acquisitions. The Company considers its operating results without these charges when evaluating its ongoing performance and forecasting its earnings trends, and therefore excludes such charges when presenting non-GAAP financial measures. The Company believes that the assessment of its operations excluding these costs is relevant to its assessment of internal operations and comparisons to the performance of its competitors.
Adjustment for taxes relates to the tax effects of the various adjustments that we incorporate into non-GAAP measures to provide a more meaningful measure on non-GAAP net income and certain adjustments related to non-recurring settlements of tax contingencies or other non-recurring tax charges, when applicable.
View source version on businesswire.com: https://www.businesswire.com/news/home/20231025568398/en/
Investors & Analysts
Mary Lai
VP, Investor Relations
Investor@nextracker.com
Media & Press
Kristan Kirsh
SVP, Global Marketing
Media@nextracker.com
Source: Nextracker
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