FTC Solar, Inc. Q3 FY2024 earnings call

• Yann noted that FTC is at an inflection point with over 70% of bookings being 1P Pioneer product. The company has a complete 1P product portfolio with features like high wind offerings up to 150 mph, compatibility with all module types, and features to reduce cut and fill. Customers value working with FTC for relationships, experience, and the company's product set. - Recent successes include a multi - year supply agreement with Strata Clean Energy for at least 500 MW of 2P trackers, a 1 GW supply agreement with Dunlieh Energy, sharing additional project details on the Sandhills Energy agreement, a $15 million note placement, and a $4.7 million cash earnout from Dimension Energy. - Cathy discussed Q3 financials: revenue, GAAP and non - GAAP gross losses, operating expenses, adjusted EBITDA loss, and liquidity details including cash on hand, earnout, and the note placement.

In the third quarter, revenue was $10.1 million, which was just above the midpoint of the target range. This represents a 11.3% decrease from the prior quarter and a 66.8% decrease from the year - earlier quarter due to lower product volumes. GAAP gross loss was $4.3 million, or 42.5% of revenue, while non - GAAP gross loss was $3.9 million, or 38.3% of revenue. Adjusted EBITDA loss was $12.2 million, better than the midpoint of the guidance range. Liquidity: ended the quarter with $8.3 million in cash, received $4.7 million cash earnout post - quarter, and entered into a binding term sheet for a $15 million promissory note.

• Q4 revenue is expected to be between $10 million and $14 million. Non - GAAP gross loss is expected to be between $4.2 million and $1.5 million (42.2% to 10.7% of revenue). Non - GAAP operating expenses are expected to be between $8.2 million and $9 million. Adjusted EBITDA loss is expected to be between $13.7 million and $9.9 million. - Expect continued improvement in revenue, margin, and adjusted EBITDA in Q1 2025 and adjusted EBITDA breakeven on a quarterly basis in 2025.

• Forward - looking statements include risks and uncertainties as actual results and events could differ materially from current expectations. Specific risk factors can be referred to in the company's press release and other SEC filings.

Q: What proportion of the backlog or current backlog is coming from 1P and about feedback on safety and ease of installation for 1P products?

A: About 70% of signed purchase orders today are in the 1P category. Feedback on 1P has been excellent with key features making the system easier, faster to install, and safer. The team built innovations on top of existing products working with customers, and the product portfolio spans wide including high wind solutions up to 150 mph.

Q: Qualitatively describe how projects and new projects are distributed geographically?

A: Geography is diverse with a strong focus on the U.S. but also in international markets. Strong focus in the U.S. includes Northeast, Southwest, Texas. Northeast has challenges with terrain and land value, and Southeast has growth due to high wind product.

Q: Regarding breakeven revenue range and shift to 1P?

A: The breakeven revenue range of $50 million to $60 million still holds. Margins on 1P and 2P are similar, and it has more to do with product mix and project timing throughout the quarter.

Q: General sense of 2025 revenue cadence?

A: Have strong purchase order backlog walking into 2025 and commercial traction. About 60% of signed backlog is expected to start recognizing revenue in 2025 with strong growth potential including existing and new customers.