The following is a summary of the Greenlane Renewables Inc. (GRNWF) Q4 2023 Earnings Call Transcript:
Financial Performance:
Greenlane reported Q4 2023 revenue of $17.3 million, slightly higher than Q4 2022's $17 million.
The company experienced a downtrend in its year-over-year revenue, ending 2023 with $57.8 million, 19% less than the previous year.
Greenlane saw a slight dip in its Q4 2023 gross margin of 18% compared to 19% in Q4 2022. However, it reported a year-over-year improvement in its full-year gross margin excluding amortization, which was 25% in 2023 against 24% in 2022.
The company accrued a net loss and comprehensive loss of $17.7 million in Q4 2023 and $29.4 million for the entire fiscal year 2023.
As of December 31, 2023, Greenlane was debt-free with $11.8 million in cash and $16.7 million in working capital.
Business Progress:
During 2023, the company advanced 28 active biogas upgrading projects and sealed $42.5 million in new sales contracts.
Greenlane is shifting towards a configured-to-order business model to boost competitiveness and minimize costs.
Prioritizing cost management and proficiency in supply chain execution is central to the company's strategy, along with product standardization and the ZEG Biogas agreement royalties.
The company expects a positive adjusted EBITDA in 2024 and foresees considerable prospects in the maturing RNG market, particularly in Brazil and North America.
The deal with ZEG Biogas to establish local industrial-scale volume production in Brazil should contribute to the company's revenue in 2024 with a new royalty-like business model.
More details: GREENLANE RENEWABLES INC IR
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