Energy Vault Reports Fourth Quarter and Full Year 2023 Financial Results
FY 2023 revenue of
Increased cash position to
Reduced quarterly cash Operating Expense run rate by 25-30% through actions taken in Q4 2023, enabling a 2024 reduced quarterly cash OpEx of
FY 2023 gross margin of 5.1%, reflecting a lower than expected Q4 gross margin due to timing of revenue and associated gross profit recognition shifting from Q4 into 2024 for gravity licenses and battery projects
Commercial pipeline growth of 24.5 GWh YoY, up 89% and 5.8 GWh QoQ, up 12.6%
Strong global momentum in Gravity energy storage across three continents:
Territory expansion of 16 countries in
Achieved
Announcing new Development Agreement with US public utility in
Delivered and commissioned first three Battery energy storage systems in totaling ~ 1GWh.
Commenced construction on the largest Green Hydrogen ultra-long duration energy storage micro-grid system in the US with California’s largest public utility PG&E; expected to be online mid-2024
Q1 2024 revenue expected to be in line with prior Q1 2023 given normal seasonality of revenue recognition and project starts with stronger double-digit gross margins given the shift of revenue and gross margin recognition from the prior Q4 2023; we expect to exit Q1 2024 with an unrestricted cash balance of
Investor and Analyst Day scheduled for
“The Energy Vault team successfully executed on our most important priority that we set at the beginning of 2023 –deployments of our first energy storage projects across multiple customers delivered on time, on budget and at the quality, safety and performance levels that meet or exceed our customer expectations,” said
Fourth Quarter and Full Year 2023 Financial Highlights
-
Fourth quarter revenue of
$118.2 million and full year 2023 revenue of$341.5 million largely driven by successful deployment of our battery energy storage systems. Full year revenue was within our 2023 guidance range held consistent through the year. -
Fourth quarter GAAP gross margin of 3.4% and gross profit of
$4.0 million . Q4 quarterly gross margin was lower than expected due to timing of recognition of positive margin impacts in both battery and gravity related gross profit that shifted from Q4 and is now expected in 2024. Gross margin and gross profit for the twelve months endedDecember 31, 2023 , were thus 5.1% and$17.5 million , respectively. -
Fourth quarter net loss improved 4.8% year over year to
$(22.2) million while full year net loss was 26% larger at$(98.4) million due to the impact of non-cash related stock-based compensation and the shift of gross profit from Q4 2023 to 2024. -
Fourth quarter Adjusted EBITDA declined
$3.6 million year over year to$(14.8) million reflecting a shift in timing of both battery and gravity revenue and gross profit from Q4 2023 to 2024. Full year Adjusted EBITDA declined$50.7 million to$(62.1) million , within our guidance range. -
Total cash and cash equivalents on the balance sheet of
$145.6 million and no debt as ofDecember 31, 2023 . Cash and cash equivalents improved$13.4 million compared to the balance as ofSeptember 30, 2023 . -
Secured non-cash project performance bonding capacity remains in excess of
$1 billion available to facilitate upcoming project deployment and customer growth in the near to intermediate term.
Operating and Other Highlights
-
Gravity energy storage is building momentum:
-
The Rudong,
China 100 MWh gravity energy storage system is approaching full operation as it was fully interconnected to the local state utility grid inDecember 2023 , which will enable full commissioning, inverse power transmission, and operational activity powered by the State Grid. -
Three additional gravity based EVx projects totaling 368 MWh have broken ground in
China including 68 MWh Zhangye, 200 MWh Jinta, and 100 MWh Huailai. Gravity-based EVx projects inChina now total 3.7 GWh, all of which are expected to generate high margin recurring revenue royalty streams toEnergy Vault . -
Signed a
$20 million 10-year gravity technology license and royalty agreement with GESSOL covering theSouthern Africa Development Community (SADC). GESSOL is a consortium including WBHO, one of the largest listed EPC companies inSouthern Africa , iX Engineers, and Sizana Solutions. Total addressable market for the 16 member-state SADC is expected to be 125 GWh through 2035, providing us another attractive growth geography for our gravity technology. -
Signed a development agreement with a public utility in
Washington State to develop and deployEnergy Vault gravity energy storage technology with total need being multiple GWh’s of storage capacity.
-
The Rudong,
-
VaultOS Energy Management Software delivered in SAAS recurring revenue model with Vault-Bidder and Vault-Manager software rounding out the portfolio -
Battery energy storage execution and outlook are strong:
-
Began Commercial Operations of the Stanton Battery Energy Storage System with
Wellhead and W Power . Built using Energy Vault’s proprietary system design and Energy Management System, the Stanton Energy Storage System is one of the largest energy storage systems inSouthern California . The 68.8 MW/275.2 MWh battery energy storage system is fully operational at its maximum capacity, providing clean power and improving grid resiliency in the Southern California Edison service territory. -
Reached substantial completion on our 440 MWh battery energy storage system with NV Energy as of
December 2023 and expect to achieve final completion in the first quarter 2024. -
100 MW/200 MWh project with
Jupiter Power expected to be commissioned in the first quarter 2024. - Awarded 2.5 GWh-DC battery energy storage by leading international IPP.
-
Began Commercial Operations of the Stanton Battery Energy Storage System with
-
Green hydrogen energy storage creating new and disruptive segment:
-
Began construction of the largest green hydrogen long duration energy storage system in the US with PG&E in
Calistoga, California . The project is supported by a 10.5-year tolling agreement with commercial operation expected by the end of the second quarter 2024. This solidifies Energy Vault’s global leadership role in green hydrogen technology for long duration energy storage.
-
Began construction of the largest green hydrogen long duration energy storage system in the US with PG&E in
-
Proactively shortened the expected time required to reach positive Adjusted EBITDA:
- Optimized cost structure resulting in 2024 expected cash operating expense approximately 25 – 30% lower compared to 2023, with cost reductions beginning to be realized in the fourth quarter 2023.
Conference Call Information
About
Energy Vault® develops and deploys utility-scale energy storage solutions designed to transform the world's approach to sustainable energy storage. The Company's comprehensive offerings include proprietary gravity-based storage, battery storage, and green hydrogen energy storage technologies. Each storage solution is supported by the Company’s hardware technology-agnostic energy management system software and integration platform. Unique to the industry, Energy Vault’s innovative technology portfolio delivers customized short-and-long-duration energy storage solutions to help utilities, independent power producers, and large industrial energy users significantly reduce levelized energy costs while maintaining power reliability. Utilizing eco-friendly materials with the ability to integrate waste materials for beneficial reuse, Energy Vault’s EVx™ gravity-based energy storage technology is facilitating the shift to a circular economy while accelerating the global clean energy transition for its customers. Please visit www.energyvault.com for more information.
Non- GAAP measures
Forward-Looking Statements
This press release includes forward-looking statements that reflect the Company’s current views with respect to, among other things, the Company’s operations and financial performance. Forward-looking statements include information concerning possible or assumed future results of operations, including descriptions of our business plan and strategies. These statements often include words such as “anticipate,” “expect,” “suggest,” “plan,” “believe,” “intend,” “project,” “forecast,” “estimates,” “targets,” “projections,” “should,” “could,” “would,” “may,” “might,” “will” and other similar expressions. We base these forward-looking statements or projections on our current expectations, plans, and assumptions, which we have made in light of our experience in our industry, as well as our perceptions of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances at the time. These forward-looking statements are based on our beliefs, assumptions, and expectations of future performance, taking into account the information currently available to us. These forward-looking statements are only predictions based upon our current expectations and projections about future events. These forward-looking statements involve significant risks and uncertainties that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements, including changes in our strategy, expansion plans, customer opportunities, future operations, future financial position, estimated revenues and losses, projected costs, prospects and plans; the uncertainly of our awards, bookings and backlogs equating to future revenue; the lack of assurance that non-binding letters of intent and other indication of interest can result in binding orders or sales; the possibility of our products to be or alleged to be defective or experience other failures; the implementation, market acceptance and success of our business model and growth strategy; our ability to develop and maintain our brand and reputation; developments and projections relating to our business, our competitors, and industry; the ability of our suppliers to deliver necessary components or raw materials for construction of our energy storage systems in a timely manner; the impact of health epidemics, on our business and the actions we may take in response thereto; our expectations regarding our ability to obtain and maintain intellectual property protection and not infringe on the rights of others; expectations regarding the time during which we will be an emerging growth company under the JOBS Act; our future capital requirements and sources and uses of cash; the international nature of our operations and the impact of war or other hostilities on our business and global markets; our ability to obtain funding for our operations and future growth; our business, expansion plans and opportunities and other important factors discussed under the caption “Risk Factors” in our Annual Report on Form 10-K for the year ended
|
|||||||
Consolidated Balance Sheets |
|||||||
(In thousands, except par value) |
|||||||
|
|
||||||
|
|
2023 |
|
|
|
2022 |
|
Assets |
|
|
|
||||
Current Assets |
|
|
|
||||
Cash and cash equivalents |
$ |
109,923 |
|
|
$ |
203,037 |
|
Restricted cash |
|
35,632 |
|
|
|
83,145 |
|
Accounts receivable |
|
27,189 |
|
|
|
37,460 |
|
Contract assets |
|
84,873 |
|
|
|
28,978 |
|
Inventory |
|
415 |
|
|
|
4,378 |
|
Customer financing receivable, current portion |
|
2,625 |
|
|
|
1,500 |
|
Advances to suppliers |
|
8,294 |
|
|
|
24,327 |
|
Assets held for sale |
|
6,111 |
|
|
|
— |
|
Prepaid expenses and other current assets |
|
4,520 |
|
|
|
7,242 |
|
Total current assets |
|
279,582 |
|
|
|
390,067 |
|
Property and equipment, net |
|
31,043 |
|
|
|
3,044 |
|
Intangible assets |
|
1,786 |
|
|
|
— |
|
Operating lease right-of-use assets |
|
1,700 |
|
|
|
1,442 |
|
Customer financing receivable, long-term portion |
|
6,698 |
|
|
|
8,260 |
|
Investments |
|
17,295 |
|
|
|
11,080 |
|
Other assets |
|
2,649 |
|
|
|
2,820 |
|
Total Assets |
$ |
340,753 |
|
|
$ |
416,713 |
|
Liabilities and Stockholders’ Equity |
|
|
|
||||
Current Liabilities |
|
|
|
||||
Accounts payable |
$ |
21,165 |
|
|
$ |
60,315 |
|
Accrued expenses |
|
85,042 |
|
|
|
14,749 |
|
Contract liabilities, current portion |
|
4,923 |
|
|
|
49,434 |
|
Lease liabilities, current portion |
|
724 |
|
|
|
825 |
|
Total current liabilities |
|
111,854 |
|
|
|
125,323 |
|
Deferred pension obligation |
|
1,491 |
|
|
|
890 |
|
Contract liabilities, long-term portion |
|
1,500 |
|
|
|
1,500 |
|
Other long-term liabilities |
|
2,115 |
|
|
|
1,287 |
|
Total liabilities |
|
116,960 |
|
|
|
129,000 |
|
Commitments and contingencies |
|
|
|
||||
Stockholders’ Equity |
|
|
|
||||
Preferred stock, |
|
— |
|
|
|
— |
|
Common stock, |
|
15 |
|
|
|
14 |
|
Additional paid-in capital |
|
473,271 |
|
|
|
435,852 |
|
Accumulated deficit |
|
(248,072 |
) |
|
|
(147,265 |
) |
Accumulated other comprehensive loss |
|
(1,421 |
) |
|
|
(888 |
) |
Total stockholders’ equity |
|
223,793 |
|
|
|
287,713 |
|
Total Liabilities and Stockholders’ Equity |
$ |
340,753 |
|
|
$ |
416,713 |
|
|
|||||||||||||||
Consolidated Statements of Operations and Comprehensive Loss |
|||||||||||||||
(In thousands except, per share data) |
|||||||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
(Unaudited) |
(Unaudited) |
||||||||||||||
Revenue |
$ |
118,236 |
|
|
$ |
100,322 |
|
|
$ |
341,543 |
|
|
$ |
145,877 |
|
Cost of revenue |
|
114,219 |
|
|
|
84,386 |
|
|
|
324,012 |
|
|
|
86,580 |
|
Gross profit |
|
4,017 |
|
|
|
15,936 |
|
|
|
17,531 |
|
|
|
59,297 |
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
Sales and marketing |
|
4,601 |
|
|
|
4,295 |
|
|
|
18,210 |
|
|
|
12,582 |
|
Research and development |
|
7,552 |
|
|
|
13,836 |
|
|
|
37,104 |
|
|
|
42,605 |
|
General and administrative |
|
15,838 |
|
|
|
23,364 |
|
|
|
68,060 |
|
|
|
56,622 |
|
Depreciation and amortization |
|
223 |
|
|
|
181 |
|
|
|
893 |
|
|
|
7,743 |
|
Asset impairment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,828 |
|
Loss from operations |
|
(24,197 |
) |
|
|
(25,740 |
) |
|
|
(106,736 |
) |
|
|
(63,083 |
) |
Other income (expense): |
|
|
|
|
|
|
|
||||||||
Interest expense |
|
(16 |
) |
|
|
(1 |
) |
|
|
(35 |
) |
|
|
(2 |
) |
Interest income |
|
2,003 |
|
|
|
2,339 |
|
|
|
8,152 |
|
|
|
3,695 |
|
Change in fair value of warrant liability |
|
— |
|
|
|
269 |
|
|
|
— |
|
|
|
2,330 |
|
Transaction costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(20,586 |
) |
Other income (expense), net |
|
86 |
|
|
|
(75 |
) |
|
|
(173 |
) |
|
|
(226 |
) |
Loss before income taxes |
|
(22,124 |
) |
|
|
(23,208 |
) |
|
|
(98,792 |
) |
|
|
(77,872 |
) |
Provision for income taxes |
|
48 |
|
|
|
69 |
|
|
|
(349 |
) |
|
|
427 |
|
Net loss |
$ |
(22,172 |
) |
|
$ |
(23,277 |
) |
|
$ |
(98,443 |
) |
|
$ |
(78,299 |
) |
|
|
|
|
|
|
|
|
||||||||
Net loss per share — basic and diluted |
$ |
(0.15 |
) |
|
$ |
(0.17 |
) |
|
$ |
(0.69 |
) |
|
$ |
(0.64 |
) |
Weighted average shares outstanding — basic and diluted |
|
145,299 |
|
|
|
139,064 |
|
|
|
142,851 |
|
|
|
123,241 |
|
|
|
|
|
|
|
|
|
||||||||
Other comprehensive loss — net of tax |
|
|
|
|
|
|
|
||||||||
Actuarial loss on pension |
$ |
(335 |
) |
|
$ |
(749 |
) |
|
$ |
(519 |
) |
|
$ |
(188 |
) |
Foreign currency translation gain (loss) |
|
(222 |
) |
|
|
76 |
|
|
|
(14 |
) |
|
|
(287 |
) |
Total other comprehensive loss |
|
(557 |
) |
|
|
(673 |
) |
|
|
(533 |
) |
|
|
(475 |
) |
Total comprehensive loss |
$ |
(22,729 |
) |
|
$ |
(23,950 |
) |
|
$ |
(98,976 |
) |
|
$ |
(78,774 |
) |
|
|||||||
Consolidated Statements of Cash Flows |
|||||||
(In thousands) |
|||||||
|
Year Ended |
||||||
|
|
2023 |
|
|
|
2022 |
|
Cash Flows From Operating Activities |
|
|
|
||||
Net loss |
$ |
(98,443 |
) |
|
$ |
(78,299 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
||||
Depreciation and amortization expense |
|
893 |
|
|
|
7,743 |
|
Non-cash interest income |
|
(1,410 |
) |
|
|
(365 |
) |
Stock based compensation expense |
|
43,097 |
|
|
|
41,058 |
|
Asset Impairment |
|
— |
|
|
|
2,828 |
|
Gain on change in fair value of warrant liability |
|
— |
|
|
|
(2,330 |
) |
Provision for credit losses |
|
150 |
|
|
|
— |
|
Foreign exchange gains and losses |
|
222 |
|
|
|
316 |
|
Change in operating assets |
|
(17,691 |
) |
|
|
(111,206 |
) |
Change in operating liabilities |
|
(19,473 |
) |
|
|
116,909 |
|
Net cash used in operating activities |
|
(92,655 |
) |
|
|
(23,346 |
) |
Cash Flows From Investing Activities |
|
|
|
||||
Purchase of property and equipment |
|
(30,431 |
) |
|
|
(2,319 |
) |
Purchase of property and equipment held for sale |
|
(6,111 |
) |
|
|
— |
|
Purchase of convertible notes |
|
— |
|
|
|
(2,000 |
) |
Purchase of equity securities |
|
(6,000 |
) |
|
|
(9,000 |
) |
Net cash used in investing activities |
|
(42,542 |
) |
|
|
(13,319 |
) |
Cash Flows From Financing Activities |
|
|
|
||||
Proceeds from exercise of stock options |
|
224 |
|
|
|
171 |
|
Proceeds from insurance premium financing |
|
1,250 |
|
|
|
— |
|
Proceeds from reverse recapitalization and PIPE financing, net |
|
— |
|
|
|
235,940 |
|
Proceeds from exercise of warrants |
|
— |
|
|
|
7,855 |
|
Payment of transaction costs related to reverse recapitalization |
|
— |
|
|
|
(20,651 |
) |
Payment of taxes related to net settlement of equity awards |
|
(6,017 |
) |
|
|
(5,482 |
) |
Repayment of insurance premium financing |
|
(892 |
) |
|
|
— |
|
Payment of finance lease obligations |
|
(47 |
) |
|
|
(62 |
) |
Net cash provided by financing activities |
|
(5,482 |
) |
|
|
217,771 |
|
Effect of exchange rate changes on cash, cash equivalents, and restricted cash |
|
52 |
|
|
|
(49 |
) |
Net increase in cash, cash equivalents, and restricted cash |
|
(140,627 |
) |
|
|
181,057 |
|
Cash, cash equivalents, and restricted cash – beginning of the period |
|
286,182 |
|
|
|
105,125 |
|
Cash, cash equivalents, and restricted cash – end of the period |
|
145,555 |
|
|
|
286,182 |
|
Less: Restricted cash at end of period |
|
35,632 |
|
|
|
83,145 |
|
Cash and cash equivalents - end of period |
$ |
109,923 |
|
|
$ |
203,037 |
|
|
|||||
Consolidated Statements of Cash Flows (Continued) |
|||||
(In thousands) |
|||||
|
Year Ended |
||||
|
2023 |
|
2022 |
||
Supplemental Disclosures of Cash Flow Information: |
|
|
|
||
Income taxes paid |
46 |
|
|
3 |
|
Cash paid for interest |
35 |
|
|
2 |
|
Supplemental Disclosures of Non-Cash Investing and Financing Information: |
|
|
|
||
Conversion of redeemable preferred stock into common stock in connection with the reverse recapitalization |
— |
|
|
182,709 |
|
Warrants assumed as part of reverse recapitalization |
— |
|
|
19,838 |
|
Actuarial gain on pension |
(519 |
) |
|
(188 |
) |
Property, plant and equipment financed through accounts payable |
5,051 |
|
|
— |
|
Assets acquired on finance lease |
108 |
|
|
37 |
|
Non-GAAP Financial Measures
To complement our condensed consolidated statements of operations, we use non-GAAP financial measures of adjusted selling and marketing (“S&M”) expenses, adjusted research and development (“R&D”) expenses, adjusted general and administrative (“G&A”) expenses, and adjusted EBITDA. Management believes that these non-GAAP financial measures complement our GAAP amounts and such measures are useful to securities analysts and investors to evaluate our ongoing results of operations when considered alongside our GAAP measures. The presentation of these non-GAAP measures is not meant to be considered in isolation or as an alternative to net loss as an indicator of our performance.
The following table provides a reconciliation from GAAP S&M expenses to non-GAAP adjusted S&M expenses (amounts in thousands):
|
Three Months Ended |
|
Year Ended |
||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||
(Unaudited) |
(Unaudited) |
||||||||||
S&M expenses (GAAP) |
$ |
4,601 |
|
$ |
4,295 |
|
$ |
18,210 |
|
$ |
12,582 |
Non-GAAP adjustments: |
|
|
|
|
|
|
|
||||
Stock-based compensation expense |
|
1,666 |
|
|
2,073 |
|
|
7,143 |
|
|
5,111 |
Reorganization expenses |
|
84 |
|
|
— |
|
|
84 |
|
|
— |
Adjusted S&M expenses (non-GAAP) |
$ |
2,851 |
|
$ |
2,222 |
|
$ |
10,983 |
|
$ |
7,471 |
The following table provides a reconciliation from GAAP R&D expenses to non-GAAP adjusted R&D expenses (amounts in thousands):
|
Three Months Ended |
|
Year Ended |
||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||
(Unaudited) |
(Unaudited) |
||||||||||
R&D expenses (GAAP) |
$ |
7,552 |
|
$ |
13,836 |
|
$ |
37,104 |
|
$ |
42,605 |
Non-GAAP adjustments: |
|
|
|
|
|
|
|
||||
Stock-based compensation expense |
|
1,225 |
|
|
3,764 |
|
|
10,057 |
|
|
14,775 |
Reorganization expenses |
|
182 |
|
|
— |
|
|
182 |
|
|
— |
Adjusted R&D expenses (non-GAAP) |
$ |
6,145 |
|
$ |
10,072 |
|
$ |
26,865 |
|
$ |
27,830 |
The following table provides a reconciliation from GAAP G&A expenses to non-GAAP adjusted G&A expenses (amounts in thousands):
|
Three Months Ended |
|
Year Ended |
||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||
(Unaudited) |
(Unaudited) |
||||||||||
G&A expenses (GAAP) |
$ |
15,838 |
|
$ |
23,364 |
|
$ |
68,060 |
|
$ |
56,622 |
Non-GAAP adjustments: |
|
|
|
|
|
|
|
||||
Stock-based compensation expense |
|
5,683 |
|
|
8,464 |
|
|
25,897 |
|
|
21,172 |
Reorganization expenses |
|
318 |
|
|
— |
|
|
318 |
|
|
— |
Adjusted G&A expenses (non-GAAP) |
$ |
9,837 |
|
$ |
14,900 |
|
$ |
41,845 |
|
$ |
35,450 |
The following table provides a reconciliation from non-GAAP adjusted EBITDA to GAAP net loss, the most directly comparable GAAP measure (amounts in thousands):
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
(Unaudited) |
(Unaudited) |
||||||||||||||
Net loss (GAAP) |
$ |
(22,172 |
) |
|
$ |
(23,277 |
) |
|
$ |
(98,443 |
) |
|
$ |
(78,299 |
) |
Non-GAAP adjustments: |
|
|
|
|
|
|
|
||||||||
Interest income, net |
|
(1,986 |
) |
|
|
(2,338 |
) |
|
|
(8,117 |
) |
|
|
(3,693 |
) |
Income tax expense |
|
48 |
|
|
|
69 |
|
|
|
(349 |
) |
|
|
427 |
|
Depreciation and amortization |
|
223 |
|
|
|
181 |
|
|
|
893 |
|
|
|
7,743 |
|
Stock-based compensation expense |
|
8,574 |
|
|
|
14,301 |
|
|
|
43,097 |
|
|
|
41,058 |
|
Reorganization expenses |
|
584 |
|
|
|
— |
|
|
|
584 |
|
|
|
— |
|
Change in fair value of warrant liability |
|
— |
|
|
|
(269 |
) |
|
|
— |
|
|
|
(2,330 |
) |
Transaction costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
20,586 |
|
Asset impairment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,828 |
|
Foreign exchange (gains) and losses |
|
(86 |
) |
|
|
153 |
|
|
|
222 |
|
|
|
316 |
|
Adjusted EBITDA (non-GAAP) |
$ |
(14,815 |
) |
|
$ |
(11,180 |
) |
|
$ |
(62,113 |
) |
|
$ |
(11,364 |
) |
We present adjusted EBITDA, which is net loss excluding adjustments that are outlined in the quantitative reconciliation provided above, as a supplemental measure of our performance and because we believe this measure is frequently used by securities analysts, investors, and other interested parties in the evaluation of companies in our industry. The adjusted EBITDA measure excludes the financial impact of items management does not consider in assessing our ongoing operating performance, and thereby facilitates review of our operating performance on a period-to-period basis.
In evaluating adjusted EBITDA, one should be aware that in the future we may incur expenses similar to the adjustments noted above. Our presentation of adjusted EBITDA should not be construed as an inference that our future results will be unaffected by these types of adjustments. Adjusted EBITDA is not a measurement of our financial performance under GAAP and should not be considered as an alternative to net loss, operating loss, or any other performance measures derived in accordance with GAAP or as an alternative to cash flow from operating activities as a measure of our liquidity.
Our adjusted EBITDA measure has limitations as an analytical tool, and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are:
- it does not reflect our cash expenditures, future requirements for capital expenditures, or contractual commitments;
- it does not reflect changes in, or cash requirements for, our working capital needs;
- it does not reflect stock-based compensation, which is an ongoing expense;
- although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and our adjusted EBITDA measure does not reflect any cash requirements for such replacements;
- it is not adjusted for all non-cash income or expense items that are reflected in our condensed consolidated statements of cash flows;
- it does not reflect the impact of earnings or charges resulting from matters we consider not to be indicative of our ongoing operations;
- it does not reflect limitations on or costs related to transferring earnings from our subsidiaries to us; and
- other companies in our industry may calculate this measure differently than we do, limiting its usefulness as a comparative measure.
Because of these limitations, adjusted EBITDA should not be considered as a measure of discretionary cash available to us to invest in the growth of our business or as a measure of cash that will be available to use to meet our obligations. You should compensate for these limitations by relying primarily on our GAAP results and using adjusted EBITDA only supplementally.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240312055307/en/
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