Release Date: May 14, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Nuvve Holding Corp (NVVE, Financial) has secured a significant project with Fresno EOC, valued at $16 million, expected to be recognized over the next 24 months, enhancing revenue visibility.
- The company has expanded its international footprint by partnering with e-Formula in Taiwan for a project that includes 90+ charging stations, which could lead to more opportunities in the region.
- Nuvve Holding Corp (NVVE) has improved its gross margins on product and service revenues to 34.7% in Q1 2024 from 21.2% in the previous year, indicating better profitability.
- The company has successfully reduced operating expenses, contributing to a decreased net loss in Q1 2024 compared to Q1 2023.
- Nuvve Holding Corp (NVVE) has a growing megawatts under management, which increased by 45.4% compared to Q1 2023, and a record hardware and service backlog of $19 million as of March 31, 2024.
Negative Points
- Nuvve Holding Corp (NVVE) experienced a significant decrease in total revenues in Q1 2024, dropping to $780,000 from $1.85 million in Q1 2023.
- The company's revenue is highly dependent on EPA funding cycles, which creates uncertainty and affects the timing of school bus sales.
- Despite efforts to diversify, the company's revenue remains lumpy due to heavy reliance on specific projects and funding cycles.
- Cash reserves are relatively low at $5.3 million as of March 31, 2024, which could pose challenges in sustaining operations without additional funding.
- The company faces intense competition in the electric vehicle charging and V2G technology space, which could hinder growth and market share expansion.
Q & A Highlights
Q: Hey, it's Greg Pendy in for Brian Dobson. Just a question in light of the $15 to $20 million in revenue guidance and right now, it looks like the inventory uptick too -- I think you said $6.1 million. How much -- what do you think a normalized year end inventory level could be? Do you think it could be around $2 million or just trying to get a feel where that the $15 to $20 million -- how much you can burn off for working capital and inventory? Thanks.
A: Hey Greg, I think that inventory level come down a couple more million between now and the end of the year. Of course, it really depends on the timing of when we deliver orders. But I think about it is call it -- longer term three to four months of inventory on hand of future sales.
Q: Okay, thanks. And then just one more question, you mentioned EPA rounds hitting in 2Q and 3Q. Can you kind of give us a little bit more color on notable dates that we should be looking at or within those two quarters?
A: Greg, I just cut out one second, can you just repeat it one more time? I didn't hear.
Q: Sure. sorry about that. Just in light of the EPA rounds heading in 2Q and 3Q, can you call out any notable dates we should be looking out on that would be publicly released on some of the school bus orders or time lines.
A: You know from what Gregory said in his remarks, is really the timing of when we see those announcements coming out in the Q2 to Q3 timing but I don't have any more precision than that.
Q: Okay, no problem. Thats all I have.
A: And may be to answer -- more the question there is really about when we get the orders from the school districts right? So in the round two there are few -- there are some that could be larger orders, and so we might publicize that. But it's really -- the timeline is really in the hand of the school districts very often right.
Q: Okay, understood. Okay, that's all I have. Thanks.
A: Thank you.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
