The chart below shows how SCWO performed 10 days before and after its earnings report, based on data from the past quarters. Typically, SCWO sees a +6.85% change in stock price 10 days leading up to the earnings, and a -0.85% change 10 days following the report. On the earnings day itself, the stock moves by +1.02%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Strong Revenue Opportunities: 1. Significant Revenue Pipeline: 374Water has a robust backlog and pipeline of over $1.8 billion in near-term capital sale and destruction-as-a-service revenue opportunities.
Technology Deployment Success: 2. Successful Technology Deployment: The company successfully deployed its AirSCWO system at the City of Orlando, marking a major milestone in technology commercialization and enabling real-world waste processing demonstrations.
PFAS Destruction Technology: 3. High Efficacy in PFAS Destruction: The AirSCWO technology has demonstrated over 99.999% destruction rates for PFAS contaminants, positioning the company to pursue near-term revenue opportunities in PFAS waste destruction.
Lab Capability Expansion: 4. Expansion of Lab Capabilities: The relocation to a state-of-the-art laboratory in Morrisville, North Carolina, has tripled testing capacity, enhancing the company's ability to handle complex materials and accelerate technology development.
Market Opportunity Expansion: 5. Growing Market Demand: The company is well-positioned to capitalize on the $120 billion U.S. drinking water and municipal wastewater management market, driven by increasing regulatory pressures and the need for effective waste management solutions.
Negative
Revenue Decline Analysis: 1. Declining Revenue: The company generated revenue of $434,000 for the first nine months of 2024, a decrease of approximately 50% compared to $864,000 for the same period in 2023.
Operating Expenses Surge: 2. Rising Operating Expenses: Total operating expenses increased from $5.2 million in the first nine months of 2023 to $7.8 million in the first nine months of 2024, reflecting a rise of approximately 50% year-over-year.
Rising Professional Fees: 3. Increased Professional Fees: Professional fees rose by approximately $1.58 million, primarily due to non-recurring expenses related to legal settlements and changes in executive leadership.
Rising Administrative Expenses: 4. High General and Administrative Costs: General and administrative expenses increased by approximately $730,000, driven by efforts to build out the executive team and relocate the manufacturing facility.
Liquidity Challenges Ahead: 5. Limited Working Capital: As of September 30, 2024, the company reported a working capital of only $4.5 million, indicating potential liquidity challenges as it seeks to expand operations.
374Water, Inc. (SCWO) Q3 2024 Earnings Call Transcript
SCWO.O
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