Wallbox Announces Fourth Quarter and Full Year 2023 Financial Results
- Strong revenue growth in Q4 2023, with €43.3 million generated, a 34% increase YoY.
- Gross margin of 32.8% and a 54% improvement in adjusted EBITDA compared to the previous year.
- Full-year revenue for 2023 reached €143.8 million, with a substantial increase in DC revenue.
- Cost reduction targets exceeded by over 20%, leading to €60 million in savings for 2023.
- Acquisition of ABL, the leading EV charging company in Germany, enhancing market position.
- Strategic investment and commercial agreement with Generac, a global energy technology solutions provider.
- Raised €142.9 million in cash through debt and equity transactions, ending the year with €107 million in cash and equivalents.
- Formed strategic partnerships with Free2Move, Kia, and Costco, introducing new products like Pulsar Pro and Supernova 150.
- CEO Enric Asuncion expressed confidence in the company's future growth and profitability for 2024.
- None.
Insights
An examination of Wallbox N.V.'s financial results indicates a mixed fiscal performance. The company's revenue growth of approximately 34% year-over-year for the fourth quarter stands out, reflecting a robust demand for EV charging solutions. However, a closer look reveals a slight year-over-year decrease in annual revenue, which might raise concerns among investors regarding the company's growth trajectory. The reported gross margins of 32.8% are healthy for the industry, suggesting effective cost management and pricing strategies.
The company's ability to exceed cost reduction targets, resulting in significant savings, is a positive indicator of management's commitment to improving operational efficiency. The improved adjusted EBITDA by 54% from the prior year is a strong signal of Wallbox's improving profitability metrics. However, the operating loss suggests there are still challenges to overcome. The capital raised through debt and equity transactions strengthens the balance sheet, but investors should be mindful of the potential dilutive effect of equity issuances and the financial cost associated with increased debt.
Wallbox's strategic investment and upcoming commercial agreement with Generac, along with the acquisition of ABL, indicate an aggressive expansion and diversification strategy. The partnership with Generac, in particular, could provide cross-selling opportunities and broaden Wallbox's market reach. The acquisition of ABL positions Wallbox favorably in Germany, which is a key market for EVs in Europe. Furthermore, the introduction of new products such as the Pulsar Pro and Supernova 150 showcases the company's commitment to innovation and could potentially lead to increased market share.
Strategic partnerships with recognizable brands like Costco and Kia could enhance Wallbox's visibility and distribution capabilities. The emphasis on cost reduction and the launch of WallboxCare indicate that the company is not only focused on top-line growth but also on customer retention and service quality, which are crucial for long-term success in the competitive EV charging market.
The EV charging sector is poised for growth, driven by global EV adoption. Wallbox's performance and strategic moves should be evaluated within this context. The company's 323% DC revenue growth from the full-year 2022 is particularly noteworthy, as it suggests a strong adoption of Wallbox's DC charging solutions, which are essential for fast-charging applications and are becoming increasingly popular among EV users.
The strategic partnerships and product launches indicate Wallbox's readiness to capitalize on this growth. However, the company's future success will depend on its ability to navigate the challenges posed by higher interest rates, which could impact consumer spending on EVs and increased channel inventory, which could lead to competitive pressures and impact margins.
Fourth Quarter 2023 Highlights and Business Update:
-
Generated revenue of
€43.3 million , representing growth of approximately34% compared to the prior year period - Delivered almost 500 units of Supernova in the fourth quarter
-
Realized gross margins of
32.8% -
Exceeded cost reduction targets for the fourth quarter, driving more than
€4.8 million in savings compared to the prior quarter -
Improved adjusted EBITDA by
54% from the year-ago period -
Acquired ABL, the leading EV charging company in
Germany - Announced the strategic investment and upcoming commercial agreement with Generac, a leading global designer and manufacturer of energy technology solutions
Full Year 2023 Highlights:
-
Generated revenue of
€143.8 million -
Achieved
323% DC revenue growth from the full-year 2022 -
Exceeded cost reduction targets by more than
20% , reducing 2023 cash expenses by more than€60 million -
Raised
€142.9 million of cash through debt and equity transactions, further strengthening the balance sheet and ending the year with€107 million of cash, cash equivalents, and financial investments - Announced strategic partnerships with Free2Move, Kia, and Costco
- Introduced new products and services including Pulsar Pro, Supernova 150, and WallboxCare
Executive Commentary
Enric Asuncion, CEO of Wallbox, said, “2023 was a year of transitions at Wallbox. The EV adoption curve is in the process of crossing the chasm, which combined with higher interest rates and increased channel inventory, to drive variability in our forecasts and results. While those disruptions made for a challenging year, we focused on executing our long-term strategic plan, and achieved several outstanding milestones, highlighting our strength and resilience. We launched innovative new products, streamlined our cost base to accelerate our path to profitability, forged meaningful new partnerships with global brands including Generac, Costco, Kia, and Free2Move. With ABL, we acquired the leading EV charging company in
Mr.
Conference Call Information
Wallbox NV will host a conference call to discuss the results and provide a business update at 8:00 AM Eastern Time today, February 28, 2024. The live audio webcast and accompanying presentation, will be accessible on Wallbox’s Investor Relations website at https://investors.wallbox.com/overview/default.aspx. A recording of the webcast will also be available following the conference call.
Fourth Quarter & FY 2023 Unaudited Financial Results |
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Wallbox N.V. |
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Abbreviated Income Statement – EUR |
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| Consolidated Statements of Profit or Loss | ||||||||
| (In thousand Euros) | ||||||||
Year Ended December 31st |
Quarter Ended December 31st |
|||||||
2023 |
2022 |
Q4 2023 | Q4 2022 | |||||
| Revenue | 143,769 |
|
144,185 |
|
43,250 |
|
32,324 |
|
| Changes in inventories and raw materials and consumables used | (95,503 |
) |
(85,605 |
) |
(29,064 |
) |
(19,927 |
) |
| Employee benefits | (81,236 |
) |
(88,814 |
) |
(18,114 |
) |
(23,696 |
) |
| Other operating expenses | (59,788 |
) |
(91,555 |
) |
(10,783 |
) |
(26,741 |
) |
| Amortization and depreciation | (28,443 |
) |
(18,890 |
) |
(8,633 |
) |
(6,833 |
) |
| Net other income | 3,094 |
|
1,844 |
|
1,125 |
|
(606 |
) |
| Negative goodwill (ABL business combination) | 11,166 |
|
- |
|
11,166 |
|
- |
|
| Operating Loss | (106,941 |
) |
(138,835 |
) |
(11,053 |
) |
(45,479 |
) |
| One off expenses | 3,031 |
|
- |
|
558 |
|
- |
|
| Employee Stock Options Plan | 14,191 |
|
32,625 |
|
(780 |
) |
5,845 |
|
| ESPP (Non-Cash) | 1,360 |
|
- |
|
246 |
|
- |
|
| Amortization and depreciation | 28,443 |
|
18,890 |
|
8,633 |
|
6,833 |
|
| Share of profit of equity accounted investee | - |
|
(330 |
) |
- |
|
384 |
|
| Other income | (14,260 |
) |
(1,844 |
) |
(12,291 |
) |
606 |
|
| Adjusted EBITDA | (74,176 |
) |
(89,494 |
) |
(14,687 |
) |
(31,811 |
) |
Wallbox N.V. |
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Cash & Cash Equivalents – EUR |
|||
|
|||
| Cash and Cash Equivalents | |||
| (In thousand Euros) | |||
| Year Ended December 31 | |||
2023 |
2022 |
||
| Cash and cash equivalents | 101,158 |
83,308 |
|
| Financial Investments (1) | 5,426 |
5,269 |
|
| Cash, cash equivalents and Financial Investments at 31 December | 106,584 |
88,577 |
|
| (1) Financial Investments are included in Other current financial assets | |||
Wallbox N.V. |
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Investments in PP&E and Long-term Borrowings - EUR |
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|
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| Investments and Long-term Borrowings | |||
| (In thousand Euros) | Year Ended December 31 | ||
2023 |
2022 |
||
| Investments in Property, plant and equipment and Intangible Assets | |||
| Property, plant and equipment | 9,106 |
36,262 |
|
| Intangible assets - excluding R&D (salaries capitalized) | 7,103 |
9,861 |
|
| Total Investments in Property, plant and equipment and Intangible Assets | 16,209 |
46,123 |
|
| Total Loans and borrowings long term | 80,861 |
44,359 |
|
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements contained in this press release other than statements of historical fact should be considered forward-looking statements, including, without limitation, statements regarding Wallbox’s future operating results and financial position, business strategy and plans, including, without limitation, regarding product offerings, inventory management, cost cutting opportunities and expectations, competitive position, expectations from partnerships and the acquisition of ABL business, financial outlook, and expectations regarding profitability, market growth and market opportunity and objectives for future operations. The words “anticipate,” “believe,” “can,” “continue,” “could,” “estimate,” “expect,” “focus,” “forecast,” “intend,” “likely,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “”target,” will,” “would” and similar expressions are intended to identify forward-looking statements, though not all forward-looking statements use these words or expressions. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to: Wallbox’s history of operating losses as an early stage company; the adoption and demand for electric vehicles including the success of alternative fuels, changes to rebates, tax credits and the impact of government incentives; Wallbox’s ability to successfully manage its growth; the accuracy of Wallbox’s forecasts and projections including those regarding its market opportunity; competition; risks related to losses or disruptions in Wallbox’s supply or manufacturing partners; impacts resulting from geopolitical conflicts; risks related to macro-economic conditions and inflation; Wallbox’s reliance on the third-parties outside of its control; risks related to Wallbox’s technology, intellectual property and infrastructure; occurrence of any public health crisis or similar global events as well as the other important factors discussed under the caption “Risk Factors” in Wallbox’s Annual Report on Form 20-F for the fiscal year ended December 31, 2022, as such factors may be updated from time to time in its other filings with the Securities and Exchange Commission (the “SEC”), accessible on the SEC’s website at www.sec.gov and the Investors Relations section of Wallbox’s website at investors.wallbox.com. Any such forward-looking statements represent management’s estimates as of the date of this press release. Any forward-looking statement that Wallbox makes in this press release speaks only as of the date of such statement. Except as required by law, Wallbox disclaims any obligation to update or revise, or to publicly announce any update or revision to, any of the forward-looking statements, whether as a result of new information, future events or otherwise.
Non-IFRS Financial Measures
Wallbox reports its financial information required in accordance with the International Financial Reporting Standards (“IFRS”). This release includes financial measures not based on IFRS, including Adjusted EBITDA (the “Non-IFRS Measure”). See the definitions set forth below for a further explanation of these terms.
Wallbox defines EBITDA as loss for the period before income tax credit, financial income, interest expenses, amortization and depreciation and share of profit of equity-accounted investees. We define Adjusted EBITDA as net income (loss) before depreciation and amortization, provision (benefit) for income taxes and interest expense adjusted to take account of the impact of certain non-cash and other items that we do not consider in our evaluation of our ongoing operating performance. These non-cash and other items include, but not are limited to: change in fair value of convertible bonds and derivative warrants liabilities, share listing expenses, foreign exchange gains/(losses), share based payment plan transaction costs related to the Business Combination, certain one-time expenses related to a reduction in force initiated in January 2023, certain non-cash expenses related to the ESPP plan launched in January 2023, and other items outside the scope of our ordinary activities. Management uses these Non-IFRS Measures as measurements of operating performance because they assist management in comparing the Company’s operating performance on a consistent basis, as they remove the impact of items not directly resulting from the Company’s core operations; for planning purposes, including the preparation of management’s internal annual operating budget and financial projections; to evaluate the performance and effectiveness of our strategic initiatives; and to evaluate the Company’s capacity to fund capital expenditures and expand its business.
The Non-IFRS Measures may not be comparable to similar measures disclosed by other companies, because not all companies and analysts calculate these measures in the same manner. We present the Non-IFRS Measures because we consider them to be important supplemental measures of our performance, and we believe they are frequently used by securities analysts, investors and other interested parties in the evaluation of companies. Management believes that investors’ understanding of our performance is enhanced by including the Non-IFRS Measures as a reasonable basis for comparing our ongoing results of operations. By providing the Non-IFRS Measures, together with reconciliations to IFRS, we believe we are enhancing investors’ understanding of our business and our results of operations, as well as assisting investors in evaluating how well we are executing our strategic initiatives.
Items excluded from the Non-IFRS Measures are significant components in understanding and assessing financial performance. The Non-IFRS Measures have limitations as analytical tools and should not be considered in isolation, or as an alternative to, or a substitute for loss for the period, revenue or other financial statement data presented in our consolidated financial statements as indicators of financial performance. Some of the limitations are: such measures do not reflect revenue related to fulfillment, which is necessary to the operation of our business; such measures do not reflect our expenditures, or future requirements for capital expenditures or contractual commitments; such measures do not reflect changes in our working capital needs; such measures do not reflect our share based payments, income tax benefit/(expense) or the amounts necessary to pay our taxes; although depreciation and amortization are not included in the calculation of Adjusted EBITDA, the assets being depreciated and amortized will often have to be replaced in the future and such measures do not reflect any costs for such replacements; and other companies may calculate such measures differently than we do, limiting their usefulness as comparative measures.
Due to these limitations, Adjusted EBITDA should not be considered as a measure of discretionary cash available to us to invest in the growth of our business and are in addition to, not a substitute for or superior to, measures of financial performance prepared in accordance with IFRS. In addition, the Non-IFRS Measures we use may differ from the non-IFRS financial measures used by other companies and are not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with IFRS. Furthermore, not all companies or analysts may calculate similarly titled measures in the same manner. We compensate for these limitations by relying primarily on our IFRS results and using the Non-IFRS Measures only as supplemental measures.
About Wallbox
Wallbox is a global technology company, dedicated to changing the way the world uses energy. Wallbox creates advanced electric vehicle charging and energy management systems that redefine the relationship between users and the network. Wallbox goes beyond charging electric vehicles to give users the power to control their consumption, save money and live more sustainably. Wallbox offers a complete portfolio of charging and energy management solutions for residential, semi-public, and public use in more than 100 countries around the world. Founded in 2015 in
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Wallbox Public Relations Contact:
Elyce Behrsin
Public Relations
Press@wallbox.com
+34 673 31 09 05
Wallbox Investor Contact:
Matt Tractenberg
VP, Investor Relations
Matt.Tractenberg@wallbox.com
+1 404-574-1504
Source: Wallbox
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