Beam Global Q3 FY2024 earnings call

• Financial results overview: Third quarter revenues $11.5M, 9-month revenues $41M, backlog $10.6M. - Commercial customers: 47.9% of Q3 revenue, up 80% y-o-y. - Gross margin improvement: Due to engineering changes, cost reductions, material savings, and Amiga acquisition. - Operational expenses: Q3 2024 had a credit of $50,000 from reversal of contingent consideration fair value, with adjustments for non-cash items. - Business update: Geographic expansion, new product offerings (BeamSpot, BeamBike, BeamWell, BeamPatrol), international market efforts (Ethiopia, Oman, Jordan), sales strategy adjustments with new sales hires and resellers. - Product releases: BeamSpot for curb charging, BeamBike for e-bike charging, BeamWell for disaster zones, BeamPatrol for law enforcement motorcycle bundles.

Third quarter revenues are $11.5 million, with 47.9% of revenue derived from commercial customers, an increase of 80% over Q3 of 2023. For the nine months into September 30th of 2024, revenues are $41 million. Backlog is $10.6 million as of November 7th (USA $7 million, Europe $3.6 million). GAAP gross margin was 10.7% in Q3 2024 compared to 1.7% in 2023, improving by 9 percentage points. Non-GAAP gross margin net of non-cash items was 17.6% in Q3 2024, and for the nine months, non-GAAP gross profit net of non-cash items was 18.3%. The improvement in gross margin is due to engineering design changes, cost reductions, material cost reductions, and the acquisition of Amiga.

• Federal customer orders delayed due to uncertainty with new administration. - Certification process causing order delays, but expected to resolve and lead to pent-up demand. - Diversified business through new geographies, products, and sales resources to reduce reliance on single product/customer concentration, expecting growth in 2025.

• Uncertainty in federal policies impacting U.S. government orders for EV ARC products. - Evolving certification processes (UL in U.S., CE in Europe) causing delays in purchase orders. - Reliance on a single product and concentrated customers leading to revenue swings.

Q: Thanks for all the great information. Interested to hear what you were saying about adding resources and partnership for international marketing. What's next in terms of resource mix?

A: Focus on adding resellers, distributors, and agents as they work on success fees only, not adding overhead.

Q: Do you see yourself being capital constrained in terms of manufacturing capacity or other needs?

A: We have room for expansion in U.S. and European facilities, will invest carefully to keep up with growth.

Q: Do you sort of see California's leadership role with decarbonization and EVs as keeping the ball moving in terms of incentives, policy to offset federal uncertainty?

A: States and municipalities will push on electrification despite federal uncertainty, federal customers know they can't lose years in electrification efforts