Fourth Quarter and Full Year 2023 Revenue
Totaled $9.2 Million and $145.2 Million, Respectively
Tigo Energy, Inc. ("Tigo", or the "Company") (NASDAQ:
TYGO), a leading provider of intelligent solar and energy
storage solutions, today reported unaudited financial results for
the fourth quarter and full year ended December 31, 2023 and
financial guidance for the first quarter ending March 31, 2024.
Recent Financial and Operational Highlights
- Revenue for the full year 2023 of $145.2 million, up 78.6%
compared to $81.3 million in the full year 2022.
- Gross profit for the full year 2023 of $51.3 million, or 35.3%
of revenues, up 107.1% compared to $24.8 million, or 30.5% of
revenues, in the full year 2022.
- On a GAAP basis, net loss for the full year 2023 of $1.0
million, compared to a net loss of $7.0 million in the full year
2022. On a non-GAAP basis, adjusted EBITDA for the full year 2023
of $1.0 million, compared to adjusted EBITDA of $2.5 million in the
full year 2022.
- Deployed our 10 millionth Tigo TS4 device. Tigo TS4 products
ensure that installers have the flexibility to deploy the
industry’s highest-wattage solar modules to offer the most energy
production per available rooftop space.
- Expanded the GO ESS product line, formerly referred to as the
Tigo EI Solution, which provides intuitive and flexible energy
solutions that are optimized to work together. This includes the
Tigo GO EV Charger launched in the German market in January
2024.
- Expanded the Predict+ software platform to include improved
profit analysis modules, advanced algorithms for production and
load forecasting, and a new billing module for IPP and virtual
suppliers.
- Announced CPV Retail Energy and EDF Renewables Israel as new
Tigo Predict+ customers, increasing annual recurring revenue to
$0.8 million.
- Welcomed GoodWe, SolaX Power, and Intercraft Solar as new
licensees for Tigo’s rapid shutdown technology.
- Unveiled the Tigo Green Glove service program for commercial
and industrial solar installers. This program enhances the
installer experience and drives quality across the solar value
chain.
Management Commentary
“2023 was a transformational year for Tigo,” said Zvi Alon,
Chairman and CEO of Tigo. “Our business grew significantly across
several areas this year, even as our team managed ongoing
marketplace weakness driven by order pushouts and cancellations
through the second half of 2023. Notably, we drove a 78.6% total
revenue increase to $145.2 million for the full year, deployed our
10 millionth Tigo TS4 device, and expanded our product portfolio.
Also, our continued efforts in international markets helped us to
substantially increase our EMEA and APAC revenues, both important
areas of focus moving forward as well.
“Furthermore, our GO ESS product line grew steadily last year to
represent approximately 9.2% of our total revenues and continues to
show signs of progress this year,” Alon continued. “Finally, within
our EI Software Platform, as previously announced, we acquired the
Predict+ software solution in January 2023, a new and strategic
addition to Tigo. Predict+ is an AI-based software solution that
provides customers with the ability to accurately predict energy
production and consumption. Predict+ demonstrated significant
growth in 2023 with over 300 GWh of energy consumption management
and all contracts for Predict+ are multi-year.
“As we stated last quarter, we believe the ongoing inventory
digestion cycle will be substantially complete by the end of the
current quarter and that we are solidly positioned to expand our
market share as the industry upturn emerges.”
Fourth Quarter 2023 Financial Results
Results compare the 2023 fiscal fourth quarter ended December
31, 2023 to the 2022 fiscal fourth quarter ended December 31, 2022,
unless otherwise indicated.
- Revenue for the fourth quarter 2023 totaled $9.2 million, a
70.1% decrease from $30.9 million in the prior year comparable
period.
- Gross profit for the fourth quarter 2023 totaled $2.9 million,
or 31.1% of total revenue, a 71.1% decrease from $10.0 million, or
32.2% of total revenue, in the prior year comparable period.
- Total operating expenses for the fourth quarter 2023 totaled
$16.4 million, a 110.2% increase from $7.8 million in the prior
year comparable period.
- Net loss for the fourth quarter 2023 totaled $14.8 million,
compared to net income of $0.9 million for the prior year
comparable period.
- Adjusted EBITDA loss totaled $11.6 million for the fourth
quarter 2023, compared to adjusted EBITDA of $2.7 million for the
prior year comparable period.
Full Year 2023 Financial Results
Results compare the 2023 fiscal full year ended December 31,
2023 to the 2022 fiscal full year ended December 31, 2022, unless
otherwise indicated.
- Revenue totaled $145.2 million, a 78.6% increase from $81.3
million in the prior year comparable period.
- Gross profit totaled $51.3 million, or 35.3% of total revenue,
a 107.1% increase from $24.8 million, or 30.5% of total revenue, in
the prior year comparable period.
- Total operating expenses totaled $59.6 million, a 132.1%
increase from $25.7 million in the prior year comparable
period.
- Net loss totaled $1.0 million, compared to a net loss of $7.0
million for the prior year comparable period. Net loss includes the
mark-to-market benefit of $12.2 million related to the conversion
feature of the convertible note.
- Adjusted EBITDA totaled $1.0 million, compared to an adjusted
EBITDA of $2.5 million for the prior year comparable period.
- Cash, cash equivalents, and marketable securities totaled $33.2
million at December 31, 2023.
First Quarter 2024 Outlook
The Company also provides guidance for the first quarter ending
March 31, 2024 as follows:
- Revenues are expected to be within the range of $9 million to
$14 million.
- Adjusted EBITDA loss is expected to be within the range of $8
million to $12 million.
Actual results may differ materially from the Company’s guidance
as a result of, among other things, the factors described below
under “Forward-Looking Statements”.
Conference Call
Tigo management will hold a conference call today, February 13,
2024, at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time) to discuss
these results. Company CEO Zvi Alon and CFO Bill Roeschlein will
host the call, followed by a question-and-answer period.
Registration Link: Click here to register
Please register online at least 10 minutes prior to the start
time. If you have any difficulty with registration or connecting to
the conference call, please contact Gateway Group at (949)
574-3860.
The conference call will be broadcast live and available for
replay here and via the Investor Relations section of Tigo’s
website.
About Tigo Energy, Inc.
Founded in 2007, Tigo is a worldwide leader in the development
and manufacture of smart hardware and software solutions that
enhance safety, increase energy yield, and lower operating costs of
residential, commercial, and utility-scale solar systems. Tigo
combines its Flex MLPE (Module Level Power Electronics) and solar
optimizer technology with intelligent, cloud-based software
capabilities for advanced energy monitoring and control. Tigo MLPE
products maximize performance, enable real-time energy monitoring,
and provide code-required rapid shutdown at the module level. The
Company also develops and manufactures products such as inverters
and battery storage systems for the residential solar-plus-storage
market. For more information, please visit www.tigoenergy.com.
Forward-Looking Statements
This press release contains “forward-looking statements” within
the meaning of the Private Securities Litigation Reform Act of
1995. Such statements include, but are not limited to, statements
about current and future inventory levels and its impact on future
financial results, statements about our ability to penetrate new
markets and expand our market share, including expansion in
international markets, our continued expansion of and investments
in our product portfolio, and future financial and operating
results, our plans, objectives, expectations and intentions with
respect to future operations, products and services; and other
statements identified by words such as “will likely result,” “are
expected to,” “will continue,” “is anticipated,” “estimated,”
“expected”, “believe,” “intend,” “plan,” “projection,” “outlook” or
words of similar meaning. These forward-looking statements are
based upon the current beliefs and expectations of Tigo’s
management and are inherently subject to significant business,
economic and competitive uncertainties and contingencies, many of
which are difficult to predict and generally beyond our control.
Actual results and the timing of events may differ materially from
the results anticipated in these forward-looking statements.
In addition to factors previously disclosed, or that will be
disclosed in, our reports filed with the SEC, factors which may
cause actual results to differ materially from current expectations
include, but are not limited to, our ability to effectively develop
and sell our product offerings and services, our ability to compete
in the highly-competitive and evolving solar industry; our ability
to manage risks associated with seasonal trends and the cyclical
nature of the solar industry; whether we continue to grow our
customer base; whether we continue to develop new products and
innovations to meet constantly evolving customer demands; the
timing and level of demand for our solar energy solutions; changes
in government subsidies and economic incentives for solar energy
solutions; our ability to acquire or make investments in other
businesses, patents, technologies, products or services to grow the
business and realize the anticipated benefits therefrom; our
ability to meet future liquidity requirements; our ability to
respond to fluctuations in foreign currency exchange rates and
political unrest and regulatory changes in international markets
into which we expand or otherwise operate in; our failure to
attract, hire retain and train highly qualified personnel in the
future; and if we are unable to maintain key strategic
relationships with our partners and distributors.
Actual results, performance or achievements may differ
materially, and potentially adversely, from any projections and
forward-looking statements and the assumptions on which those
forward-looking statements are based. There can be no assurance
that the forward-looking statements contained herein are reflective
of future performance to any degree. You are cautioned not to place
undue reliance on forward-looking statements as a predictor of
future performance as projected financial information and other
information are based on estimates and assumptions that are
inherently subject to various significant risks, uncertainties and
other factors, many of which are beyond our control. All
information set forth herein speaks only as of the date hereof, and
we disclaim any intention or obligation to update any
forward-looking statements as a result of new information, future
developments or otherwise occurring after the date of this
communication.
Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are
prepared and presented in accordance with GAAP, we use the
following non-GAAP financial measure: adjusted EBITDA. The
presentation of this financial measure is not intended to be
considered in isolation or as a substitute for, or superior to, the
financial information prepared and presented in accordance with
GAAP.
We use adjusted EBITDA for financial and operational
decision-making and as a means to evaluate period-to-period
comparisons. We define adjusted EBITDA, a non-GAAP financial
measure, as earnings (loss) before interest and other expenses,
net, income tax expense (benefit), depreciation and amortization,
as adjusted to exclude stock-based compensation and merger
transaction related expenses. We believe that adjusted EBITDA
provides helpful supplemental information regarding our performance
by excluding certain items that may not be indicative of our
recurring core business operating results. We believe that both
management and investors benefit from referring to adjusted EBITDA
in assessing our performance and when planning, forecasting, and
analyzing future periods. Adjusted EBITDA also facilitates
management’s internal comparisons to our historical performance and
comparisons to our competitors’ operating results. We believe
adjusted EBITDA is useful to investors both because it (i) allows
for greater transparency with respect to key metrics used by
management in its financial and operational decision-making and
(ii) is used by our institutional investors and the analyst
community to help them analyze the health of our business.
The items excluded from adjusted EBITDA may have a material
impact on our financial results. Certain of those items are
non-recurring, while others are non-cash in nature. Accordingly,
adjusted EBITDA is presented as supplemental disclosure and should
not be considered in isolation of, as a substitute for, or superior
to, the financial information prepared in accordance with GAAP.
There are a number of limitations related to the use of non-GAAP
financial measures. We compensate for these limitations by
providing specific information regarding the GAAP amounts excluded
from these non-GAAP financial measures and evaluating these
non-GAAP financial measures together with their relevant financial
measures in accordance with GAAP.
We refer investors to the reconciliation adjusted EBITDA to net
income (loss) included below. A reconciliation for adjusted EBITDA
provided as guidance is not provided because, as a forward-looking
statement, such reconciliation is not available without
unreasonable effort due to the high variability, complexity, and
difficulty of estimating certain items such as charges to
stock-based compensation expense and currency fluctuations which
could have an impact on our consolidated results.
Tigo Energy, Inc.
Condensed Consolidated Balance
Sheets
(in thousands)
(unaudited)
December 31, 2023
December 31, 2022
ASSETS
Current assets:
Cash and cash equivalents
$
4,405
$
36,194
Restricted cash
—
1,523
Marketable securities, short-term
26,806
—
Accounts receivable, net
6,862
15,816
Inventory, net
61,401
24,915
Deferred issuance costs
—
2,221
Notes receivable
—
456
Prepaid expenses and other current
assets
5,236
3,967
Total current assets
104,710
85,092
Property and equipment, net
3,458
1,652
Operating right-of-use assets
2,503
1,252
Marketable securities, long-term
1,977
—
Intangible assets, net
2,192
—
Deferred tax assets
21
—
Other assets
707
82
Goodwill
12,209
—
Total assets
$
127,777
$
88,078
LIABILITIES, CONVERTIBLE
PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities:
Accounts payable
$
15,685
$
23,286
Accrued expenses and other current
liabilities
8,681
4,382
Deferred revenue, current portion
335
950
Warranty liability, current portion
526
392
Operating lease liabilities, current
portion
1,192
578
Current maturities of long-term debt
—
10,000
Total current liabilities
26,419
39,588
Warranty liability, net of current
portion
5,106
3,959
Deferred revenue, net of current
portion
466
172
Long-term debt, net of current maturities
and unamortized debt issuance costs
31,570
10,642
Operating lease liabilities, net of
current portion
1,392
762
Preferred stock warrant liability
—
1,507
Total liabilities
64,953
56,630
Convertible preferred stock
—
87,140
Stockholders’ equity (deficit):
Common stock
6
1
Additional paid-in capital
138,657
6,522
Accumulated deficit
(75,780
)
(62,215
)
Accumulated other comprehensive income
(59
)
—
Total stockholders’ equity (deficit)
62,824
(55,692
)
Total liabilities, convertible preferred
stock and stockholders’ equity (deficit)
$
127,777
$
88,078
Tigo Energy, Inc.
Condensed Consolidated
Statement of Operations
(in thousands, except per
share data)
(unaudited)
Three Months Ended December
31,
Year Ended December
31,
2023
2022
2023
2022
Net revenue
$
9,245
$
30,941
$
145,233
$
81,323
Cost of revenue
6,369
20,973
93,924
56,552
Gross profit
2,876
9,968
51,309
24,771
Operating expenses:
Research and development
2,433
1,206
9,496
5,682
Sales and marketing
5,745
3,605
21,281
10,953
General and administrative
8,240
2,998
28,807
9,032
Total operating expenses
16,418
7,809
59,584
25,667
(Loss) income from operations
(13,542
)
2,159
(8,275
)
(896
)
Other (income) expenses:
Change in fair value of preferred stock
warrant and contingent shares liability
(1,252
)
1,057
(1,109
)
1,020
Change in fair value of derivative
liability
—
—
(12,247
)
—
Loss on debt extinguishment
—
—
171
3,613
Interest expense
2,875
253
8,115
1,494
Other income, net
(500
)
(125
)
(2,359
)
(57
)
Total other expenses (income), net
1,123
1,185
(7,429
)
6,070
(Loss) income before income tax
expense
(14,665
)
974
(846
)
(6,966
)
Income tax expense
109
71
138
71
Net (loss) income
(14,774
)
903
(984
)
(7,037
)
Dividends on Series D and Series E
convertible preferred stock
—
(2,102
)
(3,399
)
(6,344
)
Net loss attributable to common
stockholders
$
(14,774
)
$
(1,199
)
$
(4,383
)
$
(13,381
)
Loss per common share
Basic
$
(0.25
)
$
(0.23
)
$
(0.08
)
$
(2.71
)
Diluted
$
(0.25
)
$
(0.23
)
$
(0.14
)
$
(2.71
)
Weighted-average common shares
outstanding
Basic
58,749,524
5,203,886
38,048,516
4,940,562
Diluted
58,749,524
5,203,886
43,223,134
4,940,562
Tigo Energy, Inc.
Condensed Consolidated
Statements of Cash Flows
(in thousands)
(unaudited)
Year Ended December
31,
2023
2022
Cash Flows from Operating
activities:
Net loss
$
(984
)
$
(7,037
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization
1,106
562
Reserve for inventory obsolescence
713
123
Change in fair value of preferred stock
warrant and contingent shares liability
(1,109
)
1,020
Change in fair value of derivative
liability
(12,247
)
—
Deferred tax benefit
(21
)
—
Non-cash interest expense
5,473
256
Stock-based compensation
3,808
813
Allowance for credit losses
3,870
596
Loss on debt extinguishment
171
3,613
Non-cash lease expense
996
535
Forgiveness of recourse promissory note
and accrued interest
—
117
Accretion of interest on marketable
securities
(508
)
—
Loss on disposal of property and
equipment
17
—
Changes in operating assets and
liabilities:
Accounts receivable
5,201
(12,533
)
Inventory
(37,199
)
(14,969
)
Prepaid expenses and other assets
(1,272
)
(2,459
)
Accounts payable
(8,577
)
10,890
Accrued expenses and other liabilities
3,383
952
Deferred revenue
(321
)
673
Warranty liability
1,281
958
Deferred rent
—
(135
)
Operating lease liabilities
(1,003
)
(447
)
Net cash used in operating activities
$
(37,222
)
$
(16,472
)
Investing activities:
Purchase of marketable securities
(53,483
)
—
Cash invested in note receivable
—
(456
)
Acquisition of fSight
(16
)
—
Purchase of intangible assets
(450
)
—
Purchase of property and equipment
(2,114
)
(1,147
)
Sales and maturities of marketable
securities
25,149
—
Net cash used in investing activities
$
(30,914
)
$
(1,603
)
Financing activities:
Proceeds from Convertible Promissory
Note
50,000
25,000
Repayment of Series 2022-1 Notes
(20,833
)
(4,165
)
Repayment of Senior Bonds
—
(10,000
)
Payment of financing costs
(358
)
(3,473
)
Proceeds from sale of Series E convertible
preferred stock
—
40,978
Proceeds from Business Combination
2,238
—
Proceeds from exercise of stock
options
215
325
Payment of tax withholdings on stock
options
(91
)
—
Payment of issuance costs
—
(139
)
Payment of issuance costs related to the
sale of Series E convertible preferred stock
—
(208
)
Proceeds from common stock warrant
redemption, net of issuance costs and payments to warrant holders
of non-redeemed warrants
3,653
—
Net cash provided by financing
activities
$
34,824
$
48,318
Net (decrease) increase in cash and
restricted cash
(33,312
)
30,243
Cash, cash equivalents, and restricted
cash at beginning of period
37,717
7,474
Cash, cash equivalents, and restricted
cash at end of period
$
4,405
$
37,717
Tigo Energy, Inc.
Non-GAAP Financial
Measures
(in thousands)
(unaudited)
Reconciliation of Net (Loss)
Income (GAAP) to Adjusted EBITDA (Non-GAAP)
Three Months Ended December
31,
Year Ended December
31,
2023
2022
2023
2022
Net (loss) income
$
(14,774
)
$
903
$
(984
)
$
(7,037
)
Adjustments:
Total other expenses (income), net
1,123
1,185
(7,429
)
6,070
Income tax expense
109
71
138
71
Depreciation and amortization
286
158
1,106
562
Stock-based compensation
1,671
420
3,808
813
M&A transaction expenses
—
—
4,399
2,000
Adjusted EBITDA
$
(11,585
)
$
2,737
$
1,038
$
2,479
We encourage investors and others to review our financial
information in its entirety and not to rely on any single financial
measure.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240213551311/en/
Investor Relations Contacts
Matt Glover or Tom Colton Gateway Group, Inc. (949) 574-3860
TYGO@gateway-grp.com
Tigo Energy (NASDAQ:TYGO)
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