Eos Energy Q4 2023 Earnings Report
Key Takeaways
Eos Energy Enterprises reported a 148% increase in Q4 revenue to $6.6 million compared to the prior year. The company's transition to the Eos Z3TM Cube on its semi-automated manufacturing line and a 77% increase in the commercial opportunity pipeline drove the growth. The company's orders backlog grew by 15% compared to the prior year. The company expects to recognize $60 million to $90 million in revenue for full year 2024.
Revenue totaled $6.6 million, a 148% increase compared to the prior year.
Cost of Goods Sold totaled $30.4 million, reflecting a 66% gross margin improvement compared to the prior year.
Operating expenses totaled $18.5 million, a 10% reduction compared to Q4 2022.
Orders backlog as of December 31, 2023, was $534.8 million, an increase of 15% compared to December 31, 2022.
Eos Energy
Eos Energy
Forward Guidance
For full year 2024, the Company expects to recognize $60 million to $90 million in revenue as state-of-the-art (SotA) line 1 is expected to begin initial commercial production in Q2 2024. The Company forecasts positive contribution margin in Q4 2024 as multiple cost reduction actions are implemented throughout the year.
Positive Outlook
- State-of-the-art (SotA) line 1 is expected to begin initial commercial production in Q2 2024.
- Manufacturing volume is planned to increase throughout 2024, aligning production with customer requirements and cost-out roadmap.
- Positive contribution margin is forecasted in Q4 2024 due to multiple cost reduction actions.
- Cost out program should deliver initial benefits in late Q1 2024.
- Majority of the cost out benefits being achieved in Q4 2024 as the Company ramps up production volume.