Record Revenue and Profits in Q2 and Raises
FY24 Guidance
Nextracker (Nasdaq: NXT), one of the world’s leading providers
of intelligent solar tracker and software solutions, today
announced financial results for the second quarter ended September
29, 2023.
Q2 FY2024 Financial Highlights:
- Revenue $573 million, up 23% YoY
- GAAP net income $81 million, EPS $0.55
- Adjusted EBITDA $110 million, up 164% YoY
- Non-GAAP net income $96 million, non-GAAP EPS $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: $2.3 billion to $2.4 billion (vs. previous $2.2
billion to $2.4 billion)
- GAAP Net Income: $237 million to $266 million (vs. previous
$176 million to $205 million)
- GAAP EPS: $1.60 to $1.80 (vs. previous $1.20 to $1.40)
- Adjusted EBITDA: $390 million to $440 million (vs. previous
$290 million to $340 million)
- Non-GAAP EPS: $1.95 to $2.15 (vs. previous $1.45 to $1.65)
which excludes $0.35 for stock-based compensation expense and net
intangible amortization
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, 2023
September 30, 2022
September 29, 2023
September 30, 2022
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 September 29,
2023
As of March 31, 2023
ASSETS
Current assets:
Cash and cash equivalents
$
372,918
$
130,008
Accounts receivable, net of allowance of
$1,443 and $1,768, respectively
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, 2023
September 30, 2022
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, 2023
September 30, 2022
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 29, 2023
September 30, 2022
September 29, 2023
September 30, 2022
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 U.S. Generally Accepted Accounting
Principles (“GAAP”), the Company discloses certain non-GAAP
financial measures that exclude certain charges and gains,
including Adjusted earnings before interest, taxes, depreciation,
and amortization (“EBITDA”), non-GAAP gross profit, non-GAAP
operating income, and non-GAAP net income. These supplemental
measures exclude certain legal and other charges, stock-based
compensation expense and intangible amortization, other discrete
events as applicable and the related tax effects. These non-GAAP
measures are not in accordance with or an alternative for GAAP and
may be different from non-GAAP measures used by other companies. We
believe that these non-GAAP measures have limitations in that they
do not reflect all the amounts associated with Nextracker’s results
of operations as determined in accordance with GAAP and that these
measures should only be used to evaluate Nextracker’s results of
operations in conjunction with the corresponding GAAP measures. The
presentation of this additional information is not meant to be
considered in isolation or as a substitute for the most directly
comparable GAAP measures. We compensate for the limitations of
non-GAAP financial measures by relying upon GAAP results to gain a
complete picture of the Company’s performance.
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
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