FTC Solar, Inc. Q4 FY2024 earnings call

• Yann Brandt mentioned that during the first six months of his tenure, the focus was on shoring up near - term backlog and adding liquidity. They added multiples of current annual revenue run rate to backlog, signed long - term customer agreements, and had recent wins like a five - year, five - gigawatt supply arrangement with Recurrent Energy, a 333 - megawatt project award from GPG in Australia, a 280 - megawatt project award from Rosendin, appointed Kent James as Chief Commercial Officer for North America, saw a significant increase in bidding run rate, are working on a specially designed tracker for the India market, received a $3.2 million earn - out on investment in Dimension Energy, and upsized their note offering.
• Cathy Behnen discussed the fourth quarter financials and the outlook, including Q1 revenue guidance between $18 million and $20 million, non - GAAP gross loss range, non - GAAP operating expenses range, and adjusted EBITDA loss range, and expected adjusted EBITDA breakeven in 2025.

In the fourth quarter, revenue was $13.2 million, which was at the high end of the target range. This represents a 30.2% increase compared to the prior quarter but a 43.1% decrease compared to the year - earlier quarter due to lower product volumes. GAAP gross loss was $3.8 million (29.1% of revenue), while non - GAAP gross loss was $3.4 million (25.6% of revenue). GAAP operating expenses were $9.6 million on a non - GAAP basis, down from $10.8 million in the same quarter last year. GAAP net loss was $12.2 million or $0.96 per diluted share. The contracted portion of the company's backlog stands at $502 million, with $67 million in new purchase order additions since November 12th, 2024, and $65 million in adjustments to existing projects.

• For Q1, revenue is expected to be between $18 million and $20 million (midpoint up 44% relative to Q4).
• Non - GAAP gross loss is expected to be between $4.8 million and $2.3 million, or between negative 26.6% and 11.7% of revenue.
• Non - GAAP operating expenses are expected to be between $7.7 million and $8.4 million.
• Adjusted EBITDA loss is expected to be between $13.3 million and $10 million.
• Expect to achieve adjusted EBITDA breakeven on a quarterly basis in 2025.

Q: Philip Shen asked about the mix of 1P versus 2P in the Recurrent agreement, the geography mix, which geography the first project in the back half of 2025 would be, and the basis for the win.

A: Yann Brandt said the partnership with Recurrent came down to having a wide product set. The 2025 projects are in U.S., Europe, and Australia, with U.S. and Europe likely first. 1P is predominantly used, and it's about the value propositions provided.

Q: Philip Shen asked about the revenue trajectory for Q2 and beyond, and if the train of agreements would continue.

A: Yann Brandt said the year is expected to be back - half - weighted, with Q1 up 45% sequentially, and expected another step - up in the back half. The expectation is that the train of agreements would continue with tactics like focusing on value proposition for EPCs, partnering with IPPs, and strong bidding momentum.

Q: Jeff Osborne asked to quantify the 1P's speed advantage and the pitch these days.

A: Yann Brandt said the pitch has a duality including safety. The mechanical installation of the tracker represents a large portion of the EPC's labor need. The 30% to 40% speed advantage remains true, with lower cost labor for parts like Cinch clips and continuous improvement in the installation process.

Q: Jeff Osborne asked about target gross margins for the business.

A: Yann Brandt said margins are in line with peers, with some differentiation like logistics costs. The value proposition of Pioneer, including automation for installation and O&M, will give pricing room as partners learn the value, and SunPath software is a big opportunity for gross margins in the long run.

Q: Jeff Osborne asked about supply chain management in light of steel price volatility and tariff environment.

A: Yann Brandt said exposure is quite limited as they secure steel back - to - back with purchase orders, and it's zero to limited exposure with no great internal concern, updating proposals with cost changes.