On November 28, 2023, Fluence Energy Inc (FLNC, Financial) released its 8-K filing, announcing its financial results for the fourth quarter and the full fiscal year ended September 30, 2023. FLNC reported a record annual revenue of $2.2 billion, marking an 85% increase from the previous fiscal year, and a significant 25% increase in revenue for the fourth quarter compared to the third quarter. The company also achieved a milestone by reporting its first quarterly profitability with a net income of $4.8 million for the fourth quarter.
Financial Performance and Strategic Objectives
FLNC's financial achievements for the fiscal year 2023 include an improved GAAP gross margin of 6.4% and 11.3% for the fourth quarter, compared to negative margins in the previous year. The net loss for the fiscal year was significantly reduced to approximately $105 million from $289 million in FY 2022. Adjusted EBITDA also showed improvement, with a less negative figure of approximately $61 million for the fiscal year and a positive $20 million for the fourth quarter.
Julian Nebreda, President and CEO of FLNC, commented on the company's performance, stating,
I'm pleased to report that we reached a transformative milestone in the fourth quarter, achieving profitability for the first time. This momentous achievement is a testament to our unwavering commitment to operational excellence, and to our team's relentless dedication."
FLNC's strategic objectives are centered on delivering profitable growth, developing in-demand products and solutions, transforming the supply chain into a competitive advantage, leveraging Fluence Digital as a margin driver, and improving operational efficiency. The company has made substantial progress on these fronts, as evidenced by the successful launch of Gridstack Pro and Fluence OS7, securing battery needs for fiscal 2024 and 2025, and entering into a new $400 million asset-backed lending facility.
Fiscal Year 2024 Outlook
FLNC's CFO, Manavendra Sial, provided an optimistic outlook for fiscal year 2024, with revenue guidance set between $2.7 billion to $3.3 billion and Adjusted EBITDA guidance ranging from $50 million to $80 million. The company also expects to generate around $80 million in annual recurring revenue from services and digital businesses by the end of fiscal 2024. FLNC anticipates approximately 30% of annual revenue in the first half of the fiscal year and 70% in the second half, mostly due to the expected timing of certain contracts.
Financial Statements Highlights
The consolidated balance sheets show a total asset value of $1.35 billion as of September 30, 2023, with a decrease in total liabilities from the previous year. The consolidated statements of operations reflect the significant revenue growth and the reduction in net loss for both the fiscal year and the fourth quarter. The cash flow statements indicate a net cash used in operating activities of approximately $111.9 million for the fiscal year ended September 30, 2023.
FLNC's strong quarterly order intake of $737 million represents a 30% increase from the third quarter, resulting in a total backlog of $2.9 billion, positioning the company for continued growth. With total cash of $463 million, an increase of 11% from the third quarter, FLNC is well-capitalized to execute its strategic plans.
For more detailed financial information and reconciliations of non-GAAP measures, investors are encouraged to review the full financial statements and accompanying notes included in FLNC's 8-K filing.
Fluence Energy Inc (FLNC, Financial) is poised for a promising fiscal year 2024, with a robust market outlook and a strong foundation laid by its record performance in fiscal year 2023. The company's commitment to innovation and operational excellence, combined with its strategic initiatives, positions it to capitalize on the growing demand for sustainable energy solutions.
Explore the complete 8-K earnings release (here) from Fluence Energy Inc for further details.
