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Jun 30, 2024
Energy Recovery Q2 2024 Earnings Report
Reported revenue of $27.2 million, exceeding guidance, with a net loss of $0.6 million and adjusted EBITDA of $5.2 million.
Key Takeaways
Energy Recovery reported strong second-quarter results, with revenue exceeding the upper end of guidance at $27.2 million. The company experienced a slight decrease in gross margin due to higher manufacturing costs and an increase in operating expenses due to strategic investments. Despite a net loss of $0.6 million, the adjusted EBITDA was $5.2 million.
Revenue reached $27.2 million, surpassing the guidance range of $20 - $25 million.
Gross margin was 64.6%, a slight decrease of 80 bps compared to Q2 2023.
Operating expenses increased by 21.4% to $19.6 million due to strategic growth initiatives and executive transition costs.
Net loss was $0.6 million, while adjusted EBITDA reached $5.2 million.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Energy Recovery reaffirms its full-year revenue guidance of $140–$150 million, expecting revenue cadence to be heavily weighted to the third and fourth quarters. The company believes that the summer runtime data is crucial to the commercial adoption of the PX G1300.
Positive Outlook
- Reaffirms full-year revenue guidance of $140–$150 million.
- Expects revenue cadence to be heavily weighted to the third and fourth quarters.
- Commissioned nine second-generation PX G1300 deployments at both existing and new customer sites.
- A tenth site to be commissioned by the end of August.
- Summer runtime data is crucial to the commercial adoption of the PX G1300.
Challenges Ahead
- Risks relating to the future demand for the Company’s products
- Risks relating to performance by our customers and third-party partners
- Risks relating to the timing of revenue
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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