Slide 1: First Quarter 2022 Earnings Results
May 10, 2022 First Quarter 2022 Earnings Results
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
Forward-Looking Statements and Non-GAAP Financial Measures 2 This presentation contains forward looking statements. These statements are not historical facts but rather are based on our current expectations and projections regarding our business, operations and other factors relating thereto. Words
Slide 3: Current Market Environment
3 Current Market Environment Module availability is the key limiting factor to U.S. solar growth • Regulatory issues/module availability is the key limiting factor • Steel and freight off highs, still elevated, but manageable • Impacts up to 80% of U.S. needs AD/CVD • Risk of retroactive tariffs • E
Slide 4: Highlights
4 Highlights Good progress, strong international growth International Spotlight Awards in Three New Countries Bookings progress: $664 million with $112 million added since March 15 Organic international growth: recent bookings are ~50% international Kenya Malaysia South Africa 20%+ Int’l Pipeline Gr
Slide 5: Our Near-term Focus
5 Our Near-term Focus • Executing incredibly well on in-flight projects; customer relationships • Accelerating international efforts, including HX integration & growth • Building higher-margin DG business – 12 projects awarded since January announcement • Improve operational efficiency, control cost
Slide 6: Cost-Reductions on Track
Cost-Reductions on Track 6 Significant improvements masked by low AD/CVD volume, remaining legacy project mix Illustrative Gross Margin per Revenue Level Legacy Projects 4Q’21 Net1 Avg. New Project Awards2 (Production post 2Q’22) Revenue Level $100m $150m $104.7 $100m $150m Gross Margin (5%) (4%) (2
Slide 7: Q1 Financial Performance
Q1 Financial Performance 7 (in thousands, except per share data and percentages) GAAP Non-GAAP Three months ended March 31, (in thousands, except per share data) 2022 2021 2022 2021 Revenue $ 49,553 $ 65,707 $ 49,553 $ 65,707 Gross margin percentage (18.7%) 0.2% (17.8%) 0.3% Total operating expenses
Slide 8: Outlook
Outlook* 8 2Q’22 Guidance Revenue ($M) $30-$35 Non-GAAP Gross Margin (%) (29%)-(19%) Non-GAAP OpEx ($M) $10-11 Adjusted EBITDA ($M) $(19.7)-$(16.7) 2H Commentary Based on what we see today, we expect: • Revenue growth 2H vs. 1H • Improving gross margin in 2H • Non-GAAP operating expenses decline 2H
Slide 9: Summary
Summary 9 AD/CVD is highly disruptive, delaying construction and progress on new projects Bookings are meaningful, even with AD/CVD Added $112 million in two months ~50% international bookings Excited about HX Tracker, on-track to close Record pipeline, including 32 GW of international, Internationa
Slide 10: Q&A
Q&A
Slide 11: Appendix
Appendix
Slide 12: Reconciliation of Non-GAAP Gross Margin and Operating Expenses
Reconciliation of Non-GAAP Gross Margin and Operating Expenses 12 The following table reconciles Non-GAAP gross margin for the three months ended March 31, 2022, and 2021, respectively: Thre e months e nde d March 31, (in thousands, e xce pt pe rce ntage s) 2022 2021 GAAP revenue $ 49,553 $ 65,707 G
Slide 13: Reconciliation of GAAP Loss from Operations to Adjusted EBITDA
Reconciliation of GAAP Loss from Operations to Adjusted EBITDA 13 The following table reconciles GAAP loss from operations to Adjusted EBITDA for the three months ended March 31, 2022, and 2021, respectively: Thre e months e nde d March 31, (in thousands) 2022 2021 GAAP loss from operations $ (27,77
Slide 14: Reconciliation of Net Loss to Adjusted EBITDA and Adjusted Net Loss
Reconciliation of Net Loss to Adjusted EBITDA and Adjusted Net Loss 14 The following table reconciles Net loss to Adjusted EBITDA and Adjusted Net Loss for the three months ended March 31, 2022, and 2021, respectively: Thre e months e nde d March 31, 2022 2021 (in thousands, e xce pt share s and pe
Slide 15: Notes to Reconciliations of Non-GAAP Financial Measures
Notes to Reconciliations of Non-GAAP Financial Measures 15 Notes to Reconciliations of Non-GAAP Financial Measures to Nearest Comparable GAAP Measures We utilize Adjusted EBITDA, Adjusted Net Loss, and Adjusted EPS as supplemental measures of our performance. We define Adjusted EBITDA as net loss pl