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Sep 30, 2022
Eos Energy Q3 2022 Earnings Report
Eos Energy's financial performance for Q3 2022 reflected increased revenue and a growing opportunity pipeline, offset by higher costs of goods sold due to increased unit volume and expansion inefficiencies.
Key Takeaways
Eos Energy Enterprises reported Q3 2022 financial results with revenue of $6.1 million, a significant increase from the same period last year. The company's opportunity pipeline grew to $7.3 billion, with a backlog of $452.2 million. However, the cost of goods sold was $50 million, impacted by increased unit volume and capacity expansion delays, and the company reported a net loss of $70.7 million.
Revenue reached $6.1 million, exceeding the previous year's and prior quarter's figures, with a 15% rise in Energy Block unit revenue.
The opportunity pipeline increased to $7.3 billion, marking a 5% growth from the previous quarter, with year-to-date booked orders totaling $324.8 million and a backlog of $452.2 million.
Cost of goods sold amounted to $50 million, influenced by higher unit volume, increased logistics expenses, and inefficiencies stemming from delays in capacity expansion.
The company produced 258 Energy Blocks since the factory opened in August 2019.
Eos Energy
Eos Energy
Forward Guidance
Eos Energy Enterprises has revised its full year 2022 revenue expectation to $17-$20 million, shifting remaining 2022 revenue into 2023 to better realize customer and Eos’ Inflation Reduction Act of 2022 benefits.
Positive Outlook
- The 10-year IRA tax program provides a long-term growth catalyst for energy storage.
- Eos continues to see a shift to longer duration energy storage projects.
- The company's opportunity pipeline continues to grow.
- Eos's Made in America and domestic supply chain capability uniquely positions it to maximize both Eos’ PTC benefits and customer’s ITC benefits.
- The company's technology team packaged its time-tested chemistry into Eos Z3 product that will double performance at 50% lower cost.
Challenges Ahead
- The company operates in the most challenging supply chain environment.
- There are uncertainties around the final tax credits available pursuant to the Inflation Reduction Act.
- There are risks related to adverse changes in general economic conditions.
- The company may be affected by other economic, business, and/or competitive factors.
- The company faces risk from supply chain disruptions and other impacts of geopolitical conflict.