ADS-TEC Energy PLC (ADSE) Q4 2023 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call presents a mixed but overall positive outlook. Revenue growth is strong, especially in the U.S., and the company has optimistic guidance for 2024. However, challenges like supply chain issues and regulatory hurdles persist. The Q&A highlights strategic U.S. expansion and local manufacturing plans, which are positive indicators. Despite some management ambiguities, the strong revenue and EBITDA improvements, coupled with a robust backlog, suggest a positive stock reaction.
Key Financial Performance
Revenue EUR 107.4 million, an increase from the previous year, achieving the target of more than EUR 100 million in 2023.
Adjusted EBITDA Adjusted EBITDA for Q4 was positive at EUR 4.6 million, compared to an adjusted EBITDA of minus EUR 16.6 million for the full year 2023.
Customer Base Increased number of customers, including blue-chip clients, contributing to revenue growth.
Revenue Growth in North America Revenue in the United States grew more than 5x compared to the previous year.
You have reached the limit. Sign up to access full content
Get started
Operating Highlights
Charging Points Installed: Over 1,500 battery-buffered charging points installed, with a total of more than 2,500 shipped and produced.
ChargeBox and ChargePost: Major selling products that have exceeded customer expectations and proven high performance.
Revenue Target for 2024: Target revenue of EUR 200 million and above for 2024, doubling from EUR 107.4 million in 2023.
Market Expansion: Active in 15+ countries, with a focus on North America and Europe, and new partnerships in the U.S.
Adjusted EBITDA: Achieved positive adjusted EBITDA of EUR 4.6 million in Q4 2023.
Service Revenue Growth: High demand for service contracts, contributing to revenue growth.
Focus on Core Competencies: ADS-TEC is not an operator but provides technology and services to power companies.
Partnership Strategy: Expanding partnerships with blue-chip clients and smaller startups, focusing on long-term collaborations.
You have reached the limit. Sign up to access full content
Get started
Risk or Challenges
Geopolitical Risks: Ongoing military action in Ukraine, conflict between Israel and Hamas, and other geopolitical challenges could impact business operations and market conditions.
Economic Factors: Economic turmoil and political instability may lead to uncertainties affecting revenue projections and operational costs.
Regulatory Challenges: The highly regulated nature of the infrastructure market, with varying regulations across regions, can slow down the rollout of products and services.
Grid Expansion Issues: Significant costs associated with grid expansion (EUR 300 billion for transmission grids and EUR 150 billion for regional distribution grids) and delays in obtaining necessary approvals can hinder growth.
Supply Chain Constraints: Challenges related to the availability of resources, such as copper, and skilled labor for grid expansion projects may impact operational capabilities.
Market Volatility: The dynamic market conditions, including fluctuating EV sales and competition from lower-priced vehicles, may affect demand for ADS-TEC's products.
Customer Adoption Delays: The lengthy sales cycle (approximately nine months) for onboarding new customers can delay revenue generation.
Cost of Electricity: Increasing electricity prices and demand charges in the U.S. could impact operational costs and pricing strategies.
You have reached the limit. Sign up to access full content
Get started
Guidance & Outlook
Revenue Target for 2024: ADS-TEC Energy confirms a target revenue of EUR 200 million and above for the year 2024.
Installed Charging Points: Over 1,500 battery-buffered charging points installed, with a total of more than 2,500 charging points shipped and produced.
Market Expansion: ADS-TEC is expanding its operations in North America and has established a presence in over 15 countries.
Customer Base Growth: The company has significantly increased its customer base, including blue-chip clients and smaller startups.
Service Revenue Growth: There is a high demand for service contracts, contributing to revenue growth.
2023 Revenue Achievement: Achieved EUR 107.4 million in revenues for the full year 2023.
Adjusted EBITDA: Positive adjusted EBITDA of EUR 4.6 million in Q4 2023.
Future EBITDA Expectations: Targeting to be positive on an adjusted EBITDA basis for the fiscal year 2024.
U.S. Revenue Growth: Revenue in the United States has grown more than 5x.
You have reached the limit. Sign up to access full content
Get started
Shareholder Return Plan
Shareholder Return Plan: The company confirmed a revenue target of EUR 200 million for 2024, indicating a focus on growth and shareholder value. However, no specific share buyback program or dividend program was mentioned during the call.
You have reached the limit. Sign up to access full content
Get started
Key Q&A
Q:Can you provide insights on the 2024 guidance regarding revenue and EBITDA cadence?
A:We expect a stronger second half of the year, indicating a back-end loaded fiscal year in terms of revenue. We anticipate doubling the output in terms of charging products.
Q:What is the early feedback on ChargePost demand in the U.S. and any supply chain challenges?
A:ChargePost is set to be introduced in 2025, with ongoing development and certification. There are some delays due to changes in market requirements and supply chain issues.
Q:Should we assume negative EBITDA in the first half and positive in the second half?
A:It's a generalization; we expect higher revenues in the second half, but we are not anticipating negative EBITDA as in previous years.
Q:Will establishing a manufacturing operation in the U.S. be part of building a significant U.S. business?
A:Yes, we are working towards a local-for-local strategy in the U.S. and have started with battery assembly in Auburn.
Q:What was the percentage of revenue from Germany in 2023 and how will that change this year?
A:Germany's revenue share has slightly decreased, with Europe around 80% and the U.S. growing by 5x, now at 5%.
Q:Can you provide an updated number for the backlog as of April 30?
A:We will disclose the backlog with our Q1 numbers, but as of December 31, it was EUR 80 million.
Q:Is NEVI funding supporting an accelerating outlook for the U.S. business pipeline?
A:NEVI funding benefits installation and operation companies, and while it can act as an accelerator, we do not want to rely solely on it for business growth.
Q:Review of Unclear Management Responses
A:Management avoided providing specific details on the backlog number for April 30, stating it would be disclosed later. Additionally, there was a lack of clarity regarding the exact impact of NEVI funding on their business.
You have reached the limit. Sign up to access full content
Get started
Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
Apple
Auburn
CO reduction
EUR revenue
IFRS measure
NACS
NEVI funding
Nordics
Number
People
Tesla
accelerator
adoption rate
answer
application
arbitrage
battery cell
battery charger
change
condominium
customer partner
end day
factor
front
funding subsidy
garage
heat
highway
house software
instance
interface
network
operation
others customer
part infrastructure
premise
price electricity
product market
target
top
view
ADSE Transcript
ADS-TEC Energy PLC (ADSE) Q4 2024 Earnings Call Transcript
Unknown5-12
The earnings call presents a mixed picture: while financial performance shows improvement with positive EBITDA and gross profit, the operating loss indicates ongoing challenges. The Q&A highlights market volatility and regulatory challenges, but also potential growth in energy trading. The convertible note and shareholder loans provide financial flexibility. However, management's lack of clarity on key projects and future revenue from energy trading raises concerns. Overall, the sentiment is neutral, with some positive financial trends offset by uncertainties and risks.
ADS-TEC Energy PLC (ADSE) Q2 2024 Earnings Call Transcript
Unknown9-12
While the company showed strong revenue growth and improved financial metrics, challenges such as regulatory issues, supply chain difficulties, and rising electricity costs pose risks. The lack of a shareholder return plan and unclear management responses in the Q&A further contribute to uncertainty. Despite these concerns, the optimistic outlook for the U.S. market and achieving breakeven cash flow balance the sentiment, resulting in a neutral stock price prediction.
ADS-TEC Energy PLC (ADSE) Q4 2023 Earnings Call Transcript
Positive4-30
The earnings call presents a mixed but overall positive outlook. Revenue growth is strong, especially in the U.S., and the company has optimistic guidance for 2024. However, challenges like supply chain issues and regulatory hurdles persist. The Q&A highlights strategic U.S. expansion and local manufacturing plans, which are positive indicators. Despite some management ambiguities, the strong revenue and EBITDA improvements, coupled with a robust backlog, suggest a positive stock reaction.
ADSE Report
Frequently Asked Questions
Where does this earnings call transcript come from?
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
How soon is the transcript available after the earnings call ends?
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
Is the transcript edited or altered in any way?
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
Why do some answers appear as “Unclear” or “Inaudible”?
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
Who creates the AI Summary and Key Q&A highlights shown above the transcript?
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
