Slide 1: First Quarter 2024 Earnings Conference Call
First Quarter 2024 Earnings Conference Call Tom Deitrich – President and Chief Executive Officer Joan Hooper – Senior Vice President and Chief Financial Officer Paul Vincent – Vice President, Investor Relations ©2024 ITRON CONFIDENTIAL PROPRIETARY May 2, 2024
Slide 2: Conference Call Agenda
Conference Call Agenda ▪ CEO – Business and Operations Update ▪ CFO – Financial Results and Q2 2024 Outlook ▪ Q&A
Slide 3: Forward Looking Statements
Forward Looking Statements Certain matters in this presentation and being discussed today, that are not statements of historical fact, constitute forward-looking statements relating to current or future financial performance, management's plans and objectives for future operations, product plans and
Slide 4: First Quarter 2024 Performance Highlights
First Quarter 2024 Performance Highlights » Sixth consecutive quarter of improving operational execution and market conditions » Value chain performance ahead of expectations » Pipeline for Grid Edge Intelligence opportunities expanding for Networked Solutions and Outcomes » Elpis Squared acquisitio
Slide 5: First Quarter 2024 Financial Summary
First Quarter 2024 Financial Summary » Revenue of $603 million » Adjusted EBITDA of $76 million » Non-GAAP diluted EPS of $1.24 » Free cash flow of $34 million ©2024 ITRON CONFIDENTIAL PROPRIETARY Q1 2024 Earnings Conference Call | 5
Slide 6: Bookings and Backlog
Bookings and Backlog » Q1 2024 bookings of $361M $4.5 $4.4 $4.2 $4.5 $4.3 » Book to bill of 0.6 » Ending backlog of $4.3B $2.0 $2.0 $2.0 $1.9 $1.9 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 12-Month Backlog Total Backlog - Chart in US$ billions, the revenue from Q1’24 12-month backlog may vary based on actual cu
Slide 7: Consolidated GAAP Results: Q1 2024
Consolidated GAAP Results: Q1 2024 $ in millions (except per share amounts) Q1 2024 Q1 2023 Change Revenue $603.4 $494.6 22% Change in constant currency 22% Gross margin 34.0% 31.6% 240 bps Operating income (loss) $62.8 ($10.4) NM Net income (loss) attributable to Itron, Inc. $51.7 ($11.8) NM Earnin
Slide 8: Consolidated Non-GAAP & Cash Results: Q1 2024
Consolidated Non-GAAP & Cash Results: Q1 2024 $ in millions (except per share amounts) Q1 2024 Q1 2023 Change Non-GAAP operating income $67.3 $31.3 115% Non-GAAP operating margin 11.2% 6.3% 490 bps Non-GAAP net income attributable to Itron, Inc. $57.3 $22.4 156% Adjusted EBITDA $76.5 $39.5 94% Adjus
Slide 9: Revenue Year-Over-Year Bridge: Q1 2024
Revenue Year-Over-Year Bridge: Q1 2024 +6% +30% +10% +22% Chart in millions and includes rounding. Segment changes in constant currency. ©2024 ITRON CONFIDENTIAL PROPRIETARY Q1 2024 Earnings Conference Call | 9
Slide 10: Non-GAAP EPS Year-Over-Year Bridge: Q1 2024
Non-GAAP EPS Year-Over-Year Bridge: Q1 2024 US$ per share Quarterly totals reflect actual currencies; all variances other than FX exclude currency impact. Chart includes rounding. ©2024 ITRON CONFIDENTIAL PROPRIETARY Q1 2024 Earnings Conference Call | 10
Slide 11: Device Solutions Segment: Q1 2024
Device Solutions Segment: Q1 2024 Revenue, gross margin and operating margin $ in millions, actual currency Revenue increased 7% (6% in constant currency) $127 » Growth in smart water and communication module sales $118 Gross margin increased 360 bps 23.7% » Favorable product mix 20.1% » Cost effici
Slide 12: Networked Solutions Segment: Q1 2024
Networked Solutions Segment: Q1 2024 Revenue, gross margin and operating margin $ in millions, actual currency $408 Revenue increased 30% (30% in constant currency) » Improved component supply $313 » Increased ongoing and new project deployments 37.1% 33.7% Gross margin increased 340 bps » Favorable
Slide 13: Outcomes Segment: Q1 2024
Outcomes Segment: Q1 2024 Revenue, gross margin and operating margin $ in millions, actual currency $69 Revenue increased 10% (10% in constant currency) $63 » Increase in recurring revenue and services Gross margin decreased 760 bps 42.7% » Lower margin revenue mix 35.1% » Increased services costs 2
Slide 14: Debt and Liquidity Overview: March 31, 2024
Debt and Liquidity Overview: March 31, 2024 US$M Debt $460 » Net leverage 0.6x at end of Q1 2024 » Zero interest convertible notes $159 Free Cash Flow and Liquidity » Free cash flow of $34M » Cash and equivalents of $301M Total Debt 1 Net Debt » $500M revolver; 2026 maturity 1. Excludes amortization
Slide 15: Q2 2024 Outlook
Q2 2024 Outlook Revenue of $595 - $605 million » At the midpoint, up $59M or 11% vs. Q2 2023 Non-GAAP diluted EPS of $0.90 - $1.00 » At the midpoint, up $0.30 or 46% vs. Q2 2023 ©2024 ITRON CONFIDENTIAL PROPRIETARY Q1 2024 Earnings Conference Call | 15
Slide 16: Appendix
Appendix ©2024 ITRON CONFIDENTIAL PROPRIETARY 16
Slide 17: FX Impact Summary
FX Impact Summary $ in Millions, except per share data Average USD/Euro: $1.09 Q1’24 vs $1.07 Q1’23 YoY YoY Change Revenue Q1’24 Excluding Change FX Device Solutions $126.8 7.2% 6.3% Networked Solutions $407.5 30.0% 30.0% Outcomes $69.2 10.0% 9.6% Total $603.4 22.0% 21.8% Non-GAAP EPS - diluted $1.2
Slide 18: Non-GAAP Financial Measures
Non-GAAP Financial Measures To supplement our consolidated financial statements, which are prepared in accordance with accounting principles generally accepted in the United States (GAAP), we use certain adjusted or non-GAAP financial measures, including non-GAAP operating expense, non-GAAP operatin
Slide 19: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations ©2024 ITRON CONFIDENTIAL PROPRIETARY Q1 2024 Earnings Conference Call | 19
Slide 20: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations ©2024 ITRON CONFIDENTIAL PROPRIETARY Q1 2024 Earnings Conference Call | 20
Slide 21: Thank You
INVESTOR RELATIONS CONTACTS Paul Vincent Vice President, Investor Relations 512-560-1172 paul.vincent@itron.com David Means Director, Investor Relations 737-242-8448 david.means@itron.com Thank You www.itron.com