The following is a summary of the Tecogen Inc. (TGEN) Q1 2024 Earnings Call Transcript:
Financial Performance:
Tecogen Inc. reported Q1 2024 revenues of $6.2 million, a 15% increase year-over-year.
The net loss for Q1 was $1.1 million, a decrease from Q1 2023's $1.5 million due to increased revenues and improved gross profit margin.
Net loss per share was $0.04 for Q1 2024, compared to $0.06 per share in Q1 2023.
The Q1 EBITDA loss was $924,000, and adjusted EBITDA loss was $898,000, lower than the Q1 2023 losses.
Product revenue decreased 13% quarter-on-quarter, but product's gross margin increased slightly by 1% to 30%.
Services revenue increased 28% quarter-on-quarter due to newly acquired contracts, contributing an additional $758,000 to the first quarter's revenue.
Energy production revenue also saw a 28% quarter-on-quarter increase.
The company has a current backlog of $4.8 million and plans to close around $7 million of projects in the upcoming months.
Business Progress:
Tecogen has transitioned to a new production facility in Billerica, project completion is anticipated by Q3 2024, which is expected to enhance production.
They have increased their focus on service as it brings recurring cash flow and have newly acquired service contracts for 83 units.
Online marketing strategies are being refined, and a positive response has been seen with lead generation through digital platforms.
The company expects to further acquire 30 to 50 service agreements in the next quarter.
Beginning Q4 2024, Tecogen anticipates shipping its hybrid air-cooled chillers post reliability testing and projects increasing sales from 2025.
They have set a target of growing their service revenue and cash flow by 20% this year.
They are exploring opportunities for retrofits on high-temperature buildings and utilization of heat pump technology.
Heated activity is noticed in the Florida market with backlogs and potential closings in the coming 3-6 months.
Expansion of the service center in the Georgia, Alabama region is being considered.
Tecogen expects improvements in productivity and efficiency following their move to the new facility.
More details: Tecogen Inc IR
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