The following is a summary of the Pineapple Energy Inc. (PEGY) Q1 2024 Earnings Call Transcript:
Financial Performance:
Pineapple Energy reported Q1 revenue of $13.2 million, a decline of 40% from Q1 2023.
Despite a decrease in gross profit by 40% to $4.8 million, the gross margin remained consistent at 36%.
Total operating expenses decreased by 31% to $7 million due to reduced amortization and sales and marketing expenses.
In Q1 2024, the net loss from continuing operations attributable to common shareholders was $10.1 million, or $0.26 per diluted share.
At the end of Q1 2024, cash, cash equivalents, and restricted cash stood at $3.3 million.
Business Progress:
The company expects a return to profitability in Q2, following a challenging Q1.
Residential operations in Long Island are predicted to grow steadily due to increased demand for solar.
Commercial projects which were postponed in Q1 are expected to commence later in the year.
The company continues its commitment to aggregate leading local and regional rooftop solar businesses.
Fundraising initiatives are in action to secure adequate funding for 2024.
Despite a Q1 2024 negative EBITDA, Pineapple Energy remains committed to improving performance in Q2 based on the positive EBITDA reported in each quarter of 2023.
The company believes in the future of the distributed grid and expects growth in battery attachment rates in the long term, despite a current decline due to market conditions and local incentives.
Pineapple Energy has a particular focus on the Hawaii sector, where more opportunities for retrofitting and repowering existing systems are expected.
The company aims to help more homeowners transition to solar while prudently managing costs and looking for acquisition-led growth.
More details: Pineapple Energy IR
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