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Energy Vault Holdings, Inc., a leader in sustainable, grid-scale energy storage solutions, announced financial results for the fourth quarter and full year ended December 31, 2023.
“The Energy Vault team successfully executed our most important priority that we set at the beginning of 2023 – deployments of our first energy storage projects across multiple customers delivered on time, on budget, and at quality, safety, and performance levels that meet or exceed our customer expectations,” said Robert Piconi, Chairman and CEO of Energy Vault.
“In addition to commissioning ~1 GWh of battery and hybrid short-duration energy storage systems in the second half of 2023 under our new OS-Vault Energy Management System, we also continued to solidify our global leadership position in long-duration energy storage with gravity energy territory expansions across the globe in the US with a large public utility and Southern Africa to complement explosive growth in China with total projects now surpassing 3.7 GWh of EVx gravity energy systems. With innovation in motion with the construction of the largest green hydrogen energy storage microgrid in the USA and PG&E in California serving a multi-day, ultra-long duration storage need, we are clearly demonstrating our unmatched capabilities as an energy storage solutions provider. We look forward to sharing more at our upcoming Investor and Analyst Day in May.”
Fourth Quarter and Full Year 2023 Financial Highlights
Fourth quarter revenue of $118.2 million and full year 2023 revenue of $341.5 million were largely driven by the successful deployment of our battery energy storage systems. Full-year revenue was within our 2023 guidance range and held consistent throughout the year.
Fourth quarter GAAP gross margin of 3.4% and gross profit of $4.0 million. Q4 quarterly gross margin was lower than expected due to the timing of the recognition of positive margin impacts in both battery and gravity-related gross profit that shifted from Q4 and is now expected in 2024. Gross margin and gross profit for the twelve months ended December 31, 2023, were thus 5.1% and $17.5 million, respectively.
Fourth quarter net loss improved 4.8% year over year to $(22.2) million, while the full-year net loss was 26% larger at $(98.4) million due to the impact of non-cash-related stock-based compensation and the shift of gross profit from Q4 2023 to 2024.
Fourth quarter adjusted EBITDA declined $3.6 million year over year to $(14.8) million, reflecting a shift in the timing of both battery and gravity revenue and gross profit from Q4 2023 to 2024. Full-year adjusted EBITDA declined from $50.7 million to $(62.1) million, within our guidance range.
Total cash and cash equivalents on the balance sheet of $145.6 million and no debt as of December 31, 2023. Cash and cash equivalents improved by $13.4 million compared to the balance as of September 30, 2023.
Secured non-cash project performance bonding capacity remains in excess of $1 billion available to facilitate upcoming project deployment and customer growth in the near to intermediate term.
The Rudong, China, 100 MWh gravity energy storage system is approaching full operation as it was fully interconnected to the local state utility grid in December 2023, which will enable full commissioning, inverse power transmission, and operational activity powered by the State Grid.
Three additional gravity-based EVx projects totaling 368 MWh have broken ground in China, including 68 MWh Zhangye, 200 MWh Jinta, and 100 MWh Huailai. Gravity-based EVx projects in China now total 3.7 GWh, all of which are expected to generate high-margin recurring revenue royalty streams for Energy Vault.
Signed a $20 million 10-year gravity technology license and royalty agreement with GESSOL covering the Southern Africa Development Community (SADC). GESSOL is a consortium including WBHO, one of the largest listed EPC companies in Southern Africa, iX Engineers, and Sizana Solutions. The total addressable market for the 16 member states of SADC is expected to be 125 GWh through 2035, providing us with another attractive growth geography for our gravity technology.
Signed a development agreement with a public utility in Washington State to develop and deploy Energy Vault gravity energy storage technology, with the total need being multiple GWhs of storage capacity.
Began commercial operations of the Stanton Battery Energy Storage System with Wellhead and W Power. Built using Energy Vault’s proprietary system design and Energy Management System, the Stanton Energy Storage System is one of the largest energy storage systems in Southern California. The 68.8 MW/275.2 MWh battery energy storage system is fully operational at its maximum capacity, providing clean power and improving grid resiliency in the Southern California Edison service territory.
Reached substantial completion on our 440 MWh battery energy storage system with NV Energy as of December 2023 and expect to achieve final completion in the first quarter of 2024.
100 MW/200 MWh project with Jupiter Power is expected to be commissioned in the first quarter of 2024.
Awarded 2.5 GWh-DC battery energy storage by a leading international IPP.Began construction of the largest green hydrogen long-duration energy storage system in the US with PG&E in Calistoga, California. The project is supported by a 10.5-year tolling agreement with commercial operations expected by the end of the second quarter of 2024. This solidifies Energy Vault’s global leadership role in green hydrogen technology for long-duration energy storage.
– Proactively shortened the expected time required to reach positive adjusted EBITDA:
Optimized cost structure resulting in 2024 expected cash operating expenses approximately 25–30% lower compared to 2023, with cost reductions beginning to be realized in the fourth quarter of 2023. |
