The following is a summary of the ESS Tech, Inc. (GWH) Q4 2023 Earnings Call Transcript:
Financial Performance:
ESS Tech reported Q4 revenue of $2.8 million and full-year revenue of $7.5 million, falling short of their expectations due to delayed revenue from key customers.
The company's cost-out initiatives led to a 60% savings in the cost of building an EW in 2023.
Despite higher Q4 Cost of Revenue at $10.3 million, Q4 adjusted EBITDA improved at negative $12.8 million.
ESS Tech ended the year with a healthy cash balance of $108 million, which could last well into H1 2025.
Business Progress:
ESS made significant progress in refining its iron flow battery design and has delivered systems to partners like SMUD, Army Corps of Engineers, and Burbank Water and Power.
Large deals were signed in 2022 and 2023, presenting revenue opportunities well over a billion dollars as ESS scales its technology.
Their partnership with Honeywell included a co-development deal for energy storage.
With cost reductions in products, non-GAAP gross profitability on a unit basis is expected by end of 2024.
ESS plans a significant growth year in 2024, with aims to triple or quadruple their 2023 levels.
The company expects to break-even on EWs in the second half of 2024 via increased scale, aims to reduce the cost of their product by 40% by the year-end and plans field service productivity enhancements to lower costs and boost productivity.
More details: ESS Tech IR
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