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Dec 31, 2021
ESS Tech Q4 2021 Earnings Report
Announced financial results for the fourth quarter and full year ended December 31, 2021.
Key Takeaways
ESS Tech, Inc. reported fourth-quarter results, highlighting the shipment of first commercial units and full customer acceptance at one project. The company faced supply chain challenges, impacting revenue recognition in the quarter. Despite these headwinds, ESS secured new contracts and focused on maximizing production capabilities while managing costs.
Shipped first Gen2 Energy Warehouse to customer, which has been fully accepted and is operational.
Expanded Wilsonville facility by 54,000 square feet in the fourth quarter, doubling the total footprint to 200,000 square feet in 2021.
Finalized business combination with ACON S2 Acquisition Corp. on October 11, 2021, resulting in $251 million cash received.
San Diego Gas & Electric will utilize six ESS second-generation Energy Warehouse™ systems to provide up to 3 MWh of stored energy capacity.
ESS Tech
ESS Tech
Forward Guidance
ESS expects a shift of a little more than one quarter in its ramp plan for 2022 due to challenging shifting supply chain environment.
Positive Outlook
- The world’s need for long-duration energy storage is undeniable
- Value proposition of iron flow battery continues to differentiate ESS in the market
- ESS solution now stands as a proven alternative to lithium-ion for grid storage
- ESS continued to make progress securing new contracts
- ESS pipeline and backlog remain robust
Challenges Ahead
- ESS have been hampered by significant supply challenges
- Limited ability to recognize revenue in the quarter
- Challenging shifting supply chain environment
- Expect a shift of a little more than one quarter in ramp plan for 2022
- Continue to focus on maximizing production capabilities while effectively managing costs.